# EDGAR Filing Document

**Accession Number:** 0001952073
**File Stem:** 0001193125-23-040452
**Filing Date:** 2023-2
**Character Count:** 4000651
**Document Hash:** 232857b03a519929d78f7bc684d51104
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-040452.hdr.sgml**: 20230216

**ACCESSION NUMBER**: 0001193125-23-040452

**CONFORMED SUBMISSION TYPE**: 10-12B

**PUBLIC DOCUMENT COUNT**: 58

**FILED AS OF DATE**: 20230216

**DATE AS OF CHANGE**: 20230215

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** MSGE Spinco, Inc.
- **CENTRAL INDEX KEY:** 0001952073
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION [7990]
- **IRS NUMBER:** 920318813
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** 10-12B
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41627
- **FILM NUMBER:** 23636845

**BUSINESS ADDRESS:**
- **STREET 1:** TWO PENNSYLVANIA PLAZA
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10121
- **BUSINESS PHONE:** (212) 465-6000

**MAIL ADDRESS:**
- **STREET 1:** TWO PENNSYLVANIA PLAZA
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10121

**As filed with the Securities and Exchange Commission on February 15, 2023** 

**File No. [**●**]** 

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**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

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**FORM 10** 

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**General Form for Registration of Securities** 

**Pursuant to Section 12(b) or (g) of** 

**The Securities Exchange Act of 1934** 

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## MSGE Spinco, Inc.\*
**(Exact Name of Registrant as Specified in its Charter)** 

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---

| | |
|:---|:---|
| **Delaware** | **92-0318813** |
| **(State or Other Jurisdiction of**<br> **Incorporation or Organization)** | **(IRS Employer**<br> **Identification Number)** |
| **Two Pennsylvania Plaza**<br> **New York, NY** | **10121** |
| **(Address of Principal Executive Offices)** | **(Zip Code)** |

---

**(212) 465-6000** 

**(Registrant's telephone number, including area code)** 

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**Securities to be Registered Pursuant to Section 12(b) of the Act:** 

---

| | |
|:---|:---|
| **Title of Each Class**<br> **to be so Registered** | **Name of Each Exchange on Which**<br> **Each Class is to be Registered** |
| **Class A Common Stock, par value $0.01 per share** | **New York Stock Exchange** |

---

**Securities to be Registered Pursuant to Section 12(g) of the Act:** 

**None** 

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Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

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| | | | |
|:---|:---|:---|:---|
| Large Accelerated Filer | ☐ | Accelerated Filer | ☐ |
| Non-Accelerated Filer | ☒ | Smaller Reporting Company | ☐ |
|  |  | Emerging Growth Company | ☒ |

---

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial standards provided pursuant to Section 13(a) of the Exchange Act: ☒

\* MSGE Spinco, Inc. will be renamed "Madison Square Garden Entertainment Corp." on or prior to the Distribution (as defined herein).

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**INFORMATION REQUIRED IN REGISTRATION STATEMENT** 

**CROSS-REFERENCE SHEET BETWEEN ITEMS OF FORM 10** 

**AND THE ATTACHED INFORMATION STATEMENT.** 

The information required by the following Form 10 Registration Statement items is contained in the Information Statement sections identified below, each of which is incorporated in this report by reference:

**Item 1.** ***Business*** <br>

The information required by this item is contained under the sections "Summary," "Business," "Available Information" and "Combined Financial Statements" of this information statement. Those sections are incorporated herein by reference.

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| | |
|:---|:---|
| **Item 1A.** | ***Risk Factors***  |

---

The information required by this item is contained under the section "Risk Factors." That section is incorporated herein by reference.

**Item 2.** ***Financial Information*** <br>

The information required by this item is contained under the sections "Summary," and "Management's Discussion and Analysis of Financial Condition and Results of Operations" of this information statement. Those sections are incorporated herein by reference.

**Item 3.** ***Properties*** <br>

The information required by this item is contained under the section "Business — Properties" of this information statement. That section is incorporated herein by reference.

**Item 4.** ***Security Ownership of Certain Beneficial Owners and Management*** <br>

The information required by this item is contained under the sections "Summary" and "Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters" of this information statement. Those sections are incorporated herein by reference.

**Item 5.** ***Directors and Executive Officers*** <br>

The information required by this item is contained under the section "Corporate Governance and Management" of this information statement. That section is incorporated herein by reference.

**Item 6.** ***Executive Compensation*** <br>

The information required by this item is contained under the section "Executive Compensation" of this information statement. That section is incorporated herein by reference.

**Item 7.** ***Certain Relationships and Related Transactions*** <br>

The information required by this item is contained under the sections "Certain Relationships and Related Party Transactions" and "Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters" of this information statement. Those sections are incorporated herein by reference.

**Item 8.** ***Legal Proceedings*** <br>

The information required by this item is contained under the section "Business — Legal Proceedings" of this information statement. That section is incorporated herein by reference.

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**Item 9.** ***Market Price of and Dividends on the Registrant's Common Equity and Related Stockholder Matters*** <br>

The information required by this item is contained under the sections "Risk Factors," "The Distribution," "Dividend Policy," "Business," "Corporate Governance and Management," "Shares Eligible for Future Sale" and "Description of Capital Stock" of this information statement. Those sections are incorporated herein by reference.

**Item 10.** ***Recent Sales of Unregistered Securities*** <br>

On September 15, 2022, MSGE Spinco, Inc. was incorporated in the State of Delaware. On December 21, 2022, Madison Square Garden Entertainment Corp. acquired 100 uncertificated shares of common stock of MSGE Spinco, Inc. for $100.

**Item 11.** ***Description of Registrant's Securities to be Registered*** <br>

The information required by this item is contained under the sections "The Distribution" and "Description of Capital Stock" of this information statement. Those sections are incorporated herein by reference.

**Item 12.** ***Indemnification of Directors and Officers*** <br>

The information required by this item is contained under the section "Indemnification of Directors and Officers" of this information statement. That section is incorporated herein by reference.

**Item 13.** ***Financial Statements and Supplementary Data*** <br>

The information required by this item is contained under the sections "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Combined Financial Statements" of this information statement. Those sections are incorporated herein by reference.

**Item 14.** ***Changes in and Disagreements with Accountants on Accounting and Financial Disclosure*** <br>

None.

**Item 15.** ***Financial Statements and Exhibits*** <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Financial Statements

The information required by this item is contained under the section "Combined Financial Statements" beginning on page F-1 of this information statement. That section is incorporated herein by reference.

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**<u>Form 10 Exhibits List and Status</u>**

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| | |
|:---|:---|
| **Exhibit** | **Description** |
| &nbsp;&nbsp;&nbsp;&nbsp;2.1 | [Form of Distribution Agreement, between Madison Square Garden Entertainment Corp. and MSGE Spinco, Inc.](d357108dex21.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;2.2 | [Form of Contribution Agreement, between Madison Square Garden Entertainment Corp. and MSGE Spinco, Inc.](d357108dex22.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;3.1 | [Amended and Restated Certificate of Incorporation of MSGE Spinco, Inc.](d357108dex31.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;3.2 | Form of Second Amended and Restated Certificate of Incorporation (as in effect immediately prior to Distribution) of MSGE Spinco, Inc.\* |
| &nbsp;&nbsp;&nbsp;&nbsp;3.3 | [Bylaws of MSGE Spinco, Inc.](d357108dex33.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;3.4 | Form of Amended Bylaws (as in effect immediately prior to Distribution) of MSGE Spinco, Inc.\* |
| &nbsp;&nbsp;&nbsp;&nbsp;4.1 | Form of Registration Rights Agreement by and among MSGE Spinco, Inc. and The Charles F. Dolan Children Trusts.\* |
| &nbsp;&nbsp;&nbsp;&nbsp;4.2 | Form of Registration Rights Agreement by and among MSGE Spinco, Inc. and The Dolan Family Affiliates.\* |
| &nbsp;&nbsp;&nbsp;&nbsp;4.3 | Form of Stockholder and Registration Rights Agreement between Madison Square Garden Entertainment Corp. and MSGE Spinco, Inc.\* |
| &nbsp;&nbsp;&nbsp;&nbsp;8.1 | Form of Tax Opinion of Sullivan & Cromwell LLP.\* |
| 10.1 | [Form of Transition Services Agreement, between Madison Square Garden Entertainment Corp. and MSGE Spinco, Inc.](d357108dex101.htm) |
| 10.2 | [Form of Tax Disaffiliation Agreement, between Madison Square Garden Entertainment Corp. and MSGE Spinco, Inc.](d357108dex102.htm) |
| 10.3 | [Form of Employee Matters Agreement, between Madison Square Garden Entertainment Corp. and MSGE Spinco, Inc.](d357108dex103.htm) |
| 10.4 | [Form of MSGE Spinco, Inc. 2023 Employee Stock Plan.](d357108dex104.htm) |
| 10.5 | [Form of MSGE Spinco, Inc. 2023 Stock Plan for Non-Employee Directors.](d357108dex105.htm) |
| 10.6 | Form of Standstill Agreement between MSGE Spinco, Inc. and the Dolan Family Group.\* |
| 10.7 | [Form of Indemnification Agreement between MSGE Spinco, Inc. and its Directors and Officers.](d357108dex107.htm) |
| 10.8 | [Form of MSGE Spinco, Inc. Non-Employee Director Award Agreement.](d357108dex108.htm) |
| 10.9 | [Form of MSGE Spinco, Inc. Restricted Stock Units Agreement.](d357108dex109.htm) |
| 10.10 | [Form of MSGE Spinco, Inc. Performance Restricted Stock Units Agreement.](d357108dex1010.htm) |
| 10.11 | [Form of MSGE Spinco, Inc. Option Agreement.](d357108dex1011.htm) |
| 10.12 | [Form of MSGE Spinco, Inc. Performance Option Agreement.](d357108dex1012.htm) |
| 10.13 | [Form of MSGE Spinco, Inc. Restricted Stock Units Agreement in respect of Madison Square Garden Entertainment Corp. Restricted Stock Units.](d357108dex1013.htm) |
| 10.14 | [Form of MSGE Spinco, Inc. Option Agreement in respect of Madison Square Garden Entertainment Corp. Options.](d357108dex1014.htm) |
| 10.15 | [Form of MSGE Spinco, Inc. Performance Restricted Stock Units in respect of Madison Square Garden Entertainment Corp. Performance Restricted Stock Units.](d357108dex1015.htm) |

---

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| | |
|:---|:---|
| **Exhibit** | **Description** |
| 10.16 | [Form of MSGE Spinco, Inc. Executive Deferred Compensation Plan.](d357108dex1016.htm) |
| 10.17 | [Lease Agreement, between RCPI Trust and Radio City Productions LLC, relating to Radio City Music Hall, dated December 4, 1997.+](d357108dex1017.htm) |
| 10.18 | [First Amendment to Lease Agreement, dated December 4, 1997, between RCPI Trust and Radio City Productions LLC, dated February 19, 1999.](d357108dex1018.htm) |
| 10.19 | [Second Amendment to Lease Agreement, dated December 4, 1997, between RCPI Landmark Properties, L.L.C. and Radio City Productions LLC, dated November 6, 2002.+](d357108dex1019.htm) |
| 10.20 | [Third Amendment to Lease Agreement, dated December 4, 1997, between RCPI Landmark Properties, L.L.C. and Radio City Productions LLC, dated August 14, 2008.+](d357108dex1020.htm) |
| 10.21 | [Fourth Amendment to Lease Agreement, dated December 4, 1997, between RCPI Landmark Properties, L.L.C. and Radio City Productions LLC, dated January 24, 2011.+](d357108dex1021.htm) |
| 10.22 | [Fifth Amendment to Lease Agreement, dated December 4, 1997, between RCPI Landmark Properties, L.L.C. and Radio City Productions LLC, dated July 18, 2018.](d357108dex1022.htm) |
| 10.23 | [Sixth Amendment to Lease Agreement, dated December 4, 1997, between RCPI Landmark Properties, L.L.C. and Radio City Productions LLC, dated July 1, 2021.+](d357108dex1023.htm) |
| 10.24 | [First Renewal Option Extension Letter amending Lease Agreement, dated December 4, 1997, by and between RCPI Landmark Properties, L.L.C. and Radio City Productions LLC (as amended), dated February 24, 2021.](d357108dex1024.htm) |
| 10.25 | [Second Renewal Option Extension Letter amending Lease Agreement, dated December 4, 1997, by and between RCPI Landmark Properties, L.L.C. and Radio City Productions LLC (as amended), dated March 25, 2021.](d357108dex1025.htm) |
| 10.26 | [Third Renewal Option Extension Letter amending Lease Agreement, dated December 4, 1997, by and between RCPI Landmark Properties, L.L.C. and Radio City Productions LLC (as amended), dated April 29, 2021.](d357108dex1026.htm) |
| 10.27 | [Guaranty of Lease, dated September 28, 2015, between MSG Entertainment Group, LLC (formerly MSG Sports & Entertainment, LLC) and RCPI Landmark Properties, L.L.C.+](d357108dex1027.htm) |
| 10.28 | [Summary of Office Space Arrangement, between MSG Entertainment Group, LLC (formerly MSG Sports & Entertainment, LLC) and the Knickerbocker Group LLC.](d357108dex1028.htm) |
| 10.29 | [Aircraft Support Services Agreement, dated December 17, 2018, between MSG Entertainment Group, LLC (formerly MSG Sports & Entertainment, LLC) and the Dolan Family Members (for the DFO G550).](d357108dex1029.htm) |
| 10.30 | [Amendment No. 1 to Aircraft Support Services Agreement dated December 17, 2018, between MSG Entertainment Group, LLC (formerly MSG Sports & Entertainment, LLC) and the Dolan Family Members (for the DFO G550) effective as of May 10, 2022.](d357108dex1030.htm) |
| 10.31 | [Flight Crew Services Agreement, dated May 6, 2019, between DFO and MSG Entertainment Group, LLC (formerly MSG Sports & Entertainment, LLC) (for the Challenger).](d357108dex1031.htm) |
| 10.32 | [Dry Lease Agreement, dated December 17, 2018, between Sterling2K LLC and MSG Entertainment Group, LLC (formerly MSG Sports & Entertainment, LLC) (for the DFO G550).](d357108dex1032.htm) |
| 10.33 | [Amendment No. 1 to Dry Lease Agreement, dated as of December 20, 2021, between Sterling2K LLC and MSG Entertainment Group, LLC (for the DFO G550).](d357108dex1033.htm) |
| 10.34 | [Amendment No. 2 to Dry Lease Agreement dated December 17, 2018 between Sterling2K LLC and MSG Entertainment Group, LLC (formerly MSG Sports & Entertainment, LLC) (for the DFO G550), effective as of November 4, 2022](d357108dex1034.htm) |

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| | |
|:---|:---|
| **Exhibit** | **Description** |
| 10.35 | [Dry Lease Agreement, dated May 6, 2019, between Brighid Air, LLC and MSG Entertainment Group, LLC (formerly MSG Sports & Entertainment, LLC) (for the Challenger).](d357108dex1035.htm) |
| 10.36 | [Amendment No. 1 to Dry Lease Agreement dated as of May 6, 2019 between Brighid Air, LLC and MSG Entertainment Group, LLC (formerly MSG Sports & Entertainment, LLC) (for the Challenger), effective as of August 18, 2022.](d357108dex1036.htm) |
| 10.37 | [Time Sharing Agreement, dated as of December 20, 2021, between MSG Entertainment Group, LLC and Charles F. Dolan (for the New G550).](d357108dex1037.htm) |
| 10.38 | [Time Sharing Agreement, dated as of December 20, 2021, between Patrick F. Dolan and MSG Entertainment Group, LLC (for the Challenger).](d357108dex1038.htm) |
| 10.39 | [Form of Time Sharing Agreement between MSG Entertainment Holdings, LLC and MSG Entertainment Group, LLC (for the G550).](d357108dex1039.htm) |
| 10.40 | [Form of Time Sharing Agreement between MSG Entertainment Holdings, LLC and MSG Entertainment Group, LLC (for the Challenger).](d357108dex1040.htm) |
| 10.41 | [Credit Agreement, dated as of June 30, 2022, among MSG National Properties, LLC, MSG Entertainment Group, LLC and certain subsidiaries of MSG National Properties, LLC, as guarantors, the lenders and L/C issuers party thereto and JPMorgan Chase Bank, N.A., as administrative agent.](d357108dex1041.htm) |
| 10.42 | [Security Agreement, dated as of June 30, 2022, among MSG National Properties, LLC, and the other grantors referred to therein, as grantors, and JP Morgan Chase Bank, N.A., as administrative agent.](d357108dex1042.htm) |
| 10.43 | [Arena License Agreement, dated as of April 15, 2020, between MSG Arena, LLC and New York Knicks, LLC.+](d357108dex1043.htm) |
| 10.44 | [Arena License Agreement, dated as of April 15, 2020, between MSG Arena, LLC and New York Rangers, LLC.+](d357108dex1044.htm) |
| 10.45 | [Sponsorship Sales and Representation Agreement, dated as of April 15, 2020, between New York Rangers, LLC and MSG Entertainment Group, LLC.](d357108dex1045.htm) |
| 10.46 | [Sponsorship Sales and Representation Agreement, dated as of April 15, 2020, between Knicks Holdings, LLC and MSG Entertainment Group, LLC.](d357108dex1046.htm) |
| 10.47 | Form of NBA Transaction Agreement.\* |
| 21.1 | [Subsidiaries of the Registrant.](d357108dex211.htm) |
| 99.1 | [Preliminary Information Statement, dated February 15, 2023.](d357108dex991.htm) |

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\* To be filed by amendment.

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| | |
|:---|:---|
| + | Certain confidential information — identified by bracketed asterisks "[\*\*\*\*\*]" — has been omitted from this exhibit pursuant to Item 601(b)(10) of Regulation S-K because it is both (i) not material and (ii) is the type that the registrant treats as private or confidential.  |

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**SIGNATURES** 

Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the Registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized.

MSGE Spinco, Inc.

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| | |
|:---|:---|
| By: | /s/ David F. Byrnes |
| Name: | David F. Byrnes |
| Title: | Executive Vice President and Chief Financial Officer |

---

Dated: February 15, 2023

## Exhibit 2.1

***Exhibit 2.1*** 

DISTRIBUTION AGREEMENT

BY AND BETWEEN

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

(TO BE RENAMED MSG SPHERE CORP.)

AND

MSGE SPINCO, INC.

(TO BE RENAMED MADISON SQUARE GARDEN ENTERTAINMENT CORP.)

Dated as of **[**●**]**, 2023

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**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
|  |  | <u>Page</u> |
| ARTICLE I | ARTICLE I | ARTICLE I |
| DEFINITIONS | DEFINITIONS | DEFINITIONS |
|  Section 1.1 | General | 1 |
| Section 1.2 | Reference; Interpretation | 10 |
| ARTICLE II | ARTICLE II | ARTICLE II |
| DISTRIBUTION AND | DISTRIBUTION AND | DISTRIBUTION AND |
| CERTAIN COVENANTS | CERTAIN COVENANTS | CERTAIN COVENANTS |
|  Section 2.1 | Distribution | 10 |
|  Section 2.2 | MSG Entertainment Determination | 11 |
|  Section 2.3 | Charter; Bylaws | 11 |
|  Section 2.4 | Directors | 12 |
|  Section 2.5 | Election of Officers | 12 |
|  Section 2.6 | Certain Licenses and Permits | 12 |
|  Section 2.7 | State Securities Laws | 12 |
|  Section 2.8 | Listing Application; Notice to Stock Exchange | 12 |
|  Section 2.9 | Assignment of Agreements | 12 |
|  Section 2.10 | Removal of Certain Guarantees; Releases from Liabilities | 13 |
|  Section 2.11 | Corporate Names; Trademarks | 14 |
|  Section 2.12 | Ancillary Agreements | 15 |
|  Section 2.13 | Acknowledgment by Spinco | 15 |
|  Section 2.14 | Release | 15 |
|  Section 2.15 | Discharge of Liabilities | 17 |
|  Section 2.16 | Indebtedness | 18 |
| Section 2.17 | Further Assurances | 18 |
| ARTICLE III | ARTICLE III | ARTICLE III |
| INDEMNIFICATION | INDEMNIFICATION | INDEMNIFICATION |
|  Section 3.1 | Indemnification by MSG Entertainment | 18 |
|  Section 3.2 | Indemnification by Spinco | 19 |
|  Section 3.3 | Procedures for Indemnification | 19 |
| Section 3.4 | Indemnification Payments | 21 |
| ARTICLE IV | ARTICLE IV | ARTICLE IV |
| ACCESS TO INFORMATION | ACCESS TO INFORMATION | ACCESS TO INFORMATION |
|  Section 4.1 | Provision of Corporate Records | 22 |
|  Section 4.2 | Access to Information | 23 |

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- i -

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| | | |
|:---|:---|:---|
|  |  | Page |
|  Section 4.3 | Witnesses; Documents and Cooperation in Actions | 23 |
|  Section 4.4 | Confidentiality | 23 |
|  Section 4.5 | Privileged Matters | 24 |
|  Section 4.6 | Ownership of Information | 26 |
|  Section 4.7 | Cost of Providing Records and Information | 26 |
|  Section 4.8 | Retention of Records | 26 |
|  Section 4.9 | Other Agreements Providing for Exchange of Information | 27 |
|  Section 4.10 | Policies and Best Practices | 27 |
|  Section 4.11 | Compliance with Laws and Agreements | 27 |
| Section 4.12 | Allocation of Certain Expenses | 27 |
| ARTICLE V | ARTICLE V | ARTICLE V |
| MISCELLANEOUS | MISCELLANEOUS | MISCELLANEOUS |
|  Section 5.1 | Complete Agreement; Construction | 27 |
|  Section 5.2 | Ancillary Agreements | 27 |
|  Section 5.3 | Counterparts | 27 |
|  Section 5.4 | Survival of Agreements | 27 |
|  Section 5.5 | Distribution Expenses | 28 |
|  Section 5.6 | Notices | 28 |
|  Section 5.7 | Waivers | 28 |
|  Section 5.8 | Amendments | 28 |
|  Section 5.9 | Assignment | 28 |
|  Section 5.10 | Successors and Assigns | 29 |
|  Section 5.11 | Termination | 29 |
|  Section 5.12 | Subsidiaries | 29 |
|  Section 5.13 | Third-Party Beneficiaries | 29 |
|  Section 5.14 | Title and Headings | 29 |
|  Section 5.15 | Schedules | 29 |
|  Section 5.16 | Governing Law | 29 |
|  Section 5.17 | Waiver of Jury Trial | 29 |
|  Section 5.18 | Specific Performance | 30 |
|  Section 5.19 | Severability | 30 |
|  Schedule A-1 List of Spinco Subsidiaries | Schedule A-1 List of Spinco Subsidiaries | A-1 |
|  Schedule A-2 List of Spinco Minority-Ownership Subsidiaries | Schedule A-2 List of Spinco Minority-Ownership Subsidiaries | A-2 |
|  Schedule B-1 Retained Claims Liabilities | Schedule B-1 Retained Claims Liabilities | B-1 |
|  Schedule B-2 Spinco Retained Claims Liabilities | Schedule B-2 Spinco Retained Claims Liabilities | B-2 |
|  Schedule C-1 Spinco Group Guarantees | Schedule C-1 Spinco Group Guarantees | C-1 |
|  Schedule C-2 MSG Entertainment Group Guarantees | Schedule C-2 MSG Entertainment Group Guarantees | C-2 |
|  Schedule D Ancillary Agreements | Schedule D Ancillary Agreements | D-1 |
|  Schedule E Retained Assets | Schedule E Retained Assets | E-1 |
|  Schedule F Allocation of Certain Expenses | Schedule F Allocation of Certain Expenses | F-1 |

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- ii -

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DISTRIBUTION AGREEMENT

This Distribution Agreement (this "*Agreement*"), is dated as of **[**●**]**, 2023, by and between Madison Square Garden Entertainment Corp. (to be renamed MSG Sphere Corp. at the Effective Time (as defined herein)), a Delaware corporation ("*MSG Entertainment*"), and MSGE Spinco, Inc. (to be renamed Madison Square Garden Entertainment Corp. at the Effective Time), a Delaware corporation and a direct wholly-owned subsidiary of MSG Entertainment ("*Spinco*" and, together with MSG Entertainment, the "*Parties*").

WHEREAS, the Board of Directors of MSG Entertainment determined that it is in the best interests of MSG Entertainment and its stockholders to separate the business of Spinco, as more fully described in Spinco's registration statement on Form 10 (collectively, the "*Spinco Business*"), from MSG Entertainment's other businesses on the terms and conditions set forth herein;

WHEREAS, the Board of Directors of MSG Entertainment has authorized the distribution to the holders of the issued and outstanding shares of MSG Entertainment Common Stock (as of the record date for the distribution) of approximately 67% of the issued and outstanding shares of Spinco Common Stock, on the basis of one share of Spinco Class A Common Stock for every one share of MSG Entertainment Class A Common Stock and one share of Spinco Class B Common Stock for every one share of MSG Entertainment Class B Common Stock (the "*Distribution*");

WHEREAS, the Boards of Directors of MSG Entertainment and Spinco have each determined that the Distribution and the other transactions contemplated by this Agreement and the Ancillary Agreements are in furtherance of and consistent with the Corporate Business Purposes and, as such, are in the best interests of their respective companies and stockholders or sole member, as applicable, and have approved this Agreement and each of the Ancillary Agreements; and

WHEREAS, the Parties have determined to set forth the principal corporate and other transactions required to effect the Distribution and to set forth other agreements that will govern certain other matters prior to and following the Distribution.

NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, the parties hereby agree as follows:

**ARTICLE I** 

**DEFINITIONS** 

**Section 1.1 General.** Unless otherwise defined herein or unless the context otherwise requires, as used in this Agreement, the following terms shall have the following meanings:

"*Action*" shall mean any demand, action, suit, arbitration, inquiry, proceeding or investigation by or before any Governmental Authority or any arbitration or mediation tribunal.

------

"*Affiliate*" shall mean, when used with respect to any specified Person, a Person that directly or indirectly controls, is controlled by, or is under common control with such specified Person. As used herein, "*control*" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities or other interests, by contract or otherwise. Unless explicitly provided herein to the contrary, for purposes of this Agreement none of MSG Entertainment, Madison Square Garden Sports Corp. ("*MSG Sports*") or AMC Networks Inc., nor any of their respective Subsidiaries, shall be deemed to be an Affiliate of Spinco or any of its Subsidiaries, and none of Spinco, MSG Sports or AMC Networks Inc., nor any of their respective Subsidiaries, shall be deemed to be an Affiliate of MSG Entertainment or any of its Subsidiaries. For the avoidance of doubt, the term "Affiliate" as it applies to Spinco shall include all of the Spinco Subsidiaries.

"*Agent*" shall have the meaning set forth in Section 2.1(a) of this Agreement.

"*Agreement*" shall have the meaning set forth in the preamble to this Agreement.

"*Ancillary Agreements*" shall mean all of the written agreements, instruments, understandings, assignments or other arrangements (other than this Agreement) entered into by the Parties or any other member of their respective Groups in connection with the transactions contemplated hereby, including the agreements set forth on Schedule D.

"*Applicable Rate*" shall mean the rate of interest per annum announced from time to time by JPMorgan Chase Bank, National Association, as its prime lending rate.

"*Arena Indebtedness*" shall have the meaning set forth in the NBA Debt Policies.

"*Business Day*" shall mean any day other than a Saturday, Sunday or a day on which commercial banking institutions located in The City of New York are authorized or obligated by law or executive order to close.

"*Commission*" shall mean the Securities and Exchange Commission.

"*Contribution Agreement*" shall mean the Contribution Agreement among MSG Entertainment, MSG Entertainment Group, LLC (to be renamed MSG Sphere Group, LLC) and Spinco, which has been or shall be entered into prior to the Distribution Date.

*"Corporate Business Purposes"* shall have the meaning set forth in the Tax Disaffiliation Agreement.

"*Distribution*" shall have the meaning set forth in the recitals to this Agreement.

"*Distribution Date*" shall mean such date as may be determined by the Board of Directors of MSG Entertainment, or a committee of such Board of Directors, as the date as of which the Distribution shall be effected.

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"*Distribution Record Date*" shall mean such date as may be determined by the Board of Directors of MSG Entertainment, or a committee of such Board of Directors, as the record date for the Distribution.

"*Effective Time*" shall mean 11:59 p.m., New York City time, on the Distribution Date.

"*Enterprise Indebtedness*" shall have the meaning set forth in the NBA Debt Policies.

"*Environmental Laws*" shall mean any and all federal, state, local and foreign statutes, laws, regulations, ordinances, rules, principles of common law, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or other governmental restrictions or requirements (including without limitation the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. 9601, <u>et</u> <u>seq</u>.), whether now or hereafter in existence, relating to the environment, natural resources, human health or safety, endangered or threatened species of fish, wildlife and plants, or to emissions, discharges or releases of pollutants, contaminants, petroleum or petroleum products, chemicals or industrial, toxic or hazardous substances or wastes into the environment (including without limitation indoor or outdoor air, surface water, groundwater and surface or subsurface soils), or otherwise relating to the manufacture, processing, distribution, use, presence, treatment, storage, disposal, transport or handling of, or exposure to, pollutants, contaminants, petroleum or petroleum products, chemicals or industrial, toxic or hazardous substances or wastes or the investigation, cleanup or other remediation thereof.

"*Exchange Act*" shall mean the Securities Exchange Act of 1934, as amended.

"*Governmental Authority*" shall mean any federal, state, local, foreign or international court, government, department, commission, board, bureau, agency, official, NYSE or other regulatory, administrative or governmental authority.

"*Group*" shall mean the MSG Entertainment Group or the Spinco Group.

"*Indemnifiable Losses*" shall mean any and all Liabilities, costs or expenses (including reasonable out-of-pocket attorneys' fees and any and all out-of-pocket expenses) reasonably incurred in investigating, preparing for or defending against any Actions or potential Actions or in settling any Action or potential Action or in satisfying any judgment, fine or penalty rendered in or resulting from any Action.

"*Indemnifying Party*" shall have the meaning set forth in Section 3.3(a) of this Agreement.

"*Indemnitee*" shall mean a Spinco Indemnitee or a MSG Entertainment Indemnitee.

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"*Information Statement*" shall mean the Information Statement filed with the Commission as part of the Registration Statement and mailed to the holders of shares of MSG Entertainment Common Stock in connection with the Distribution, including any amendments or supplements thereto.

"*Law*" shall mean all laws, statutes and ordinances and all regulations, rules and other pronouncements of Governmental Authorities having the effect of law of the United States, any foreign country, or any domestic or foreign state, province, commonwealth, city, country, municipality, territory, protectorate, possession or similar instrumentality, or any Governmental Authority thereof.

"*Liabilities*" shall mean any and all debts, liabilities, obligations, responsibilities, Losses, damages (whether compensatory, punitive or treble), fines, penalties and sanctions, absolute or contingent, matured or unmatured, liquidated or unliquidated, foreseen or unforeseen, joint, several or individual, asserted or unasserted, accrued or unaccrued, known or unknown, whenever arising, including without limitation those arising under or in connection with any Law (including any Environmental Law), Action, threatened Action, order or consent decree of any Governmental Authority or any award of any arbitration tribunal, and those arising under any contract, guarantee, commitment or undertaking, whether sought to be imposed by a Governmental Authority, private party, or Party to this Agreement, whether based in contract, tort, implied or express warranty, strict liability, criminal or civil statute, or otherwise, and including any costs, expenses, interest, attorneys' fees, disbursement and expense of counsel, expert and consulting fees and costs related thereto or to the investigation, response, defense or settlement thereof.

"*Losses*" shall mean all losses, damages, claims, demands, judgments or settlements of any nature or kind, known or unknown, fixed, accrued, absolute or contingent, liquidated or unliquidated, including all reasonable costs and expenses (legal, accounting or otherwise as such costs are incurred) relating thereto, suffered by an Indemnitee.

"*MSG Entertainment*" shall have the meaning set forth in the preamble to this Agreement.

"*MSG Entertainment Assignee*" shall have the meaning set forth in Section 2.9(a) of this Agreement.

"*MSG Entertainment Assignor*" shall have the meaning set forth in Section 2.9(a) of this Agreement.

"*MSG Entertainment Assumed Contract Liabilities*" shall have the meaning set forth in Section 2.9(b) of this Agreement.

"*MSG Entertainment Business*" shall mean each and every business conducted at any time by MSG Entertainment or any Subsidiary controlled by MSG Entertainment, except the Spinco Business. For the avoidance of doubt and without limitation, the MSG Entertainment Business shall include the assets and claims set forth of Schedule E.

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"*MSG Entertainment Class A Common Stock*" shall mean the Class A common stock, par value $0.01 per share, of MSG Entertainment.

"*MSG Entertainment Class B Common Stock*" shall mean the Class B common stock, par value $0.01 per share, of MSG Entertainment.

"*MSG Entertainment Common Stock*" shall mean the MSG Entertainment Class A Common Stock, together with the MSG Entertainment Class B Common Stock.

"*MSG Entertainment Group*" shall mean MSG Entertainment and each Person (other than any member of the Spinco Group) that is a Subsidiary of MSG Entertainment immediately after the Distribution Date.

"*MSG Entertainment Indemnitee*" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) MSG Entertainment and each Affiliate thereof after giving effect to the Distribution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) each of the respective Representatives of any of the entities described in the immediately preceding clause (i) and each of the heirs, executors, successors and assigns of any of such Representatives, except in the case of clauses (i) and (ii), the Spinco Indemnitees; <u>provided</u>, however, that a Person who was a Representative of MSG Entertainment or an Affiliate thereof may be a MSG Entertainment Indemnitee in that capacity notwithstanding that such Person may also be a Spinco Indemnitee.

"*MSG Entertainment Liabilities*" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any and all Liabilities (other than Taxes that are specifically covered by the Tax Disaffiliation Agreement and other Liabilities that are specifically covered by the other Ancillary Agreements and not expressly made subject to this Agreement by the express terms of the Ancillary Agreement) that are expressly contemplated by this Agreement or any Ancillary Agreement (or the Schedules hereto or thereto) as Liabilities to be assumed by MSG Entertainment or any member of the MSG Entertainment Group, and all Liabilities of any member of the MSG Entertainment Group under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all Liabilities (other than Taxes that are specifically covered by the Tax Disaffiliation Agreement and other Liabilities that are specifically covered by the other Ancillary Agreements and not expressly made subject to this Agreement by the express terms of the Ancillary Agreement), if and to the extent relating to, arising out of or resulting from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the ownership or operation of the MSG Entertainment Business (including, for the avoidance of doubt, any discontinued business or any business which has been previously sold or transferred), as conducted at any time prior to, on or after the Distribution Date; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the ownership or operation of any business conducted by MSG Entertainment or any MSG Entertainment Subsidiary at any time after the Distribution Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any Retained Claims Liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all MSG Entertainment Retained Contract Liabilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all MSG Entertainment Assumed Contract Liabilities.

Notwithstanding the foregoing, the MSG Entertainment Liabilities shall not include: (x) any Liabilities that are expressly contemplated by this Agreement or any Ancillary Agreement (or the Schedules hereto or thereto) as Liabilities to be retained or assumed by Spinco or any member of the Spinco Group; or (y) any agreements and obligations of any member of the Spinco Group under this Agreement or any of the Ancillary Agreements.

"*MSG Entertainment Releasee*" shall have the meaning set forth in Section 2.15(b) of this Agreement.

"*MSG Entertainment Releasor*" shall have the meaning set forth in Section 2.15(b) of this Agreement.

"*MSG Entertainment Retained Contract Liability*" shall have the meaning set forth in Section 2.9(a) of this Agreement.

"*MSG Entertainment Subsidiaries*" shall mean all of the Subsidiaries of MSG Entertainment other than Spinco and the Spinco Subsidiaries.

"*NBA*" shall mean the National Basketball Association.

"*NBA Agreements*" shall mean (a) the Agreement and Undertaking, dated as of September 28, 2015, by and among the NBA, MSG Sports, certain subsidiaries of MSG Sports and certain other entities, (b) the Transfer Consent Agreement, dated as of September 28, 2015, by and among the NBA, MSG Sports, certain subsidiaries of MSG Sports and certain other entities, (c) the Transaction Agreement, dated as of April 15, 2020, by and among the NBA, MSG Sports, certain subsidiaries of MSG Sports and certain other entities, (d) the Letter Agreement, dated as of December 23, 2022, by and among the NBA, MSG Entertainment, certain subsidiaries of MSG Entertainment, Spinco and certain other entities and (e) the Transaction Agreement, dated as of the date hereof, by and among the NBA, MSG Entertainment, certain subsidiaries of MSG Entertainment, Spinco and certain other entities.

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"*NHL*" shall mean the National Hockey League.

"*NHL Agreements*" shall mean (a) the Transaction Approval Agreement, dated as of September 28, 2015, by and among the NHL, MSG Sports and certain subsidiaries of MSG Sports, (b) the Transfer Consent Agreement, dated as of September 28, 2015, by and among the NHL, MSG Sports and certain subsidiaries of MSG Sports, and (c) the Transaction Agreement, dated as of April 15, 2020, by and among the NHL, MSG Sports, certain subsidiaries of MSG Sports and certain other entities.

"*NYSE*" shall mean the New York Stock Exchange LLC.

"*Outside Notice Date*" shall have the meaning set forth in Section 3.3(a).

"*Parties*" shall have the meaning set forth in the preamble to this Agreement.

"*Person*" shall mean any natural person, corporation, business trust, limited liability company, joint venture, association, company, partnership or government, or any agency or political subdivision thereof.

"*Records*" shall have the meaning set forth in Section 4.1(a) of this Agreement.

"*Registration Statement*" shall mean the registration statement on Form 10 filed with the Commission to effect the registration of the Spinco Class A Common Shares pursuant to the Exchange Act.

"*Representative*" shall mean, with respect to any Person, any of such Person's directors, officers, employees, agents, consultants, advisors, accountants, attorneys and representatives.

*"Retained Claims Liabilities"* shall mean the Liabilities, if any, described in Schedule B-1.

"*Spinco*" shall have the meaning set forth in the preamble to this Agreement.

"*Spinco Assignee*" shall have the meaning set forth in Section 2.9(b) of this Agreement.

"*Spinco Assignor*" shall have the meaning set forth in Section 2.9(b) of this Agreement.

"*Spinco Assumed Contract Liabilities*" shall have the meaning set forth in Section 2.9(a) of this Agreement.

"*Spinco Business*" shall have the meaning set forth in the recitals to this Agreement. For the avoidance of doubt, Spinco Business shall include any discontinued business previously owned or operated by the Spinco Business or any business which has been sold

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or transferred by the Spinco Business, including any Liabilities relating to businesses or assets previously owned or operated by the Spinco Business, including MSG Winter Productions, LLC, MSG BCE, LLC, MSG Aviation, LLC, MSG Aircraft Leasing, L.L.C. and MSG Eden Realty, LLC.

"*Spinco Class A Common Shares*" shall mean the shares of Spinco Class A Common Stock to be distributed in the Distribution.

"*Spinco Class A Common Stock*" shall mean the Class A common stock, par value $0.01 per share, of Spinco.

"*Spinco Class B Common Shares*" shall mean the shares of Class B Common Stock to be distributed in the Distribution.

"*Spinco Class B Common Stock*" shall mean the Class B common stock, par value $0.01 per share, of Spinco.

"*Spinco Common Stock*" shall mean the Spinco Class A Common Stock, together with the Spinco Class B Common Stock.

"*Spinco Group*" shall mean Spinco and each Person that is a Spinco Subsidiary immediately after the Distribution Date.

"*Spinco Indemnitees*" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Spinco and each Affiliate thereof after giving effect to the Distribution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) each of the respective Representatives of any of the entities described in the immediately preceding clause (i) and each of the heirs, executors, successors and assigns of any of such Representatives.

"*Spinco Liabilities*" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any and all Liabilities (other than Taxes that are specifically covered by the Tax Disaffiliation Agreement and other Liabilities that are specifically covered by the other Ancillary Agreements and not expressly made subject to this Agreement by the express terms of any the Ancillary Agreement) that are expressly contemplated by this Agreement or any Ancillary Agreements (or the Schedules hereto or thereto) as Liabilities to be assumed by Spinco or any member of the Spinco Group, and all Liabilities of any member of the Spinco Group under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all Liabilities (other than Taxes that are specifically covered by the Tax Disaffiliation Agreement and other Liabilities that are specifically covered by the other

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Ancillary Agreements and not expressly made subject to this Agreement by the express terms of the Ancillary Agreement), if and to the extent relating to, arising out of or resulting from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the ownership or operation of the Spinco Business (including, for the avoidance of doubt, any discontinued business or any business which has been sold or transferred), as conducted at any time prior to, on or after the Distribution Date, including any Liability incurred by MSG Entertainment Group under the indemnification provisions of the 2015 Distribution Agreement which relate to the ownership or operation of the Spinco Business (a "*2015 Liability*") and under the indemnification provisions of the 2020 Distribution Agreement which relate to the ownership or operation of the Spinco Business (a "*2020 Liability*");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the ownership or operation of any business conducted by Spinco or any Spinco Subsidiary at any time after the Distribution Date, including any 2015 Liability and 2020 Liability; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the NBA Agreements and the NHL Agreements, in connection with the ownership or operation of the Spinco Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all 2015 Liabilities, all 2020 Liabilities, and any Spinco Retained Claims Liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all Spinco Assumed Contract Liabilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all Spinco Retained Contract Liabilities.

Notwithstanding the foregoing, the Spinco Liabilities shall not include: (x) any Liabilities that are expressly contemplated by this Agreement or any Ancillary Agreement (or the Schedules hereto or thereto) as Liabilities to be retained or assumed by MSG Entertainment or any member of the MSG Entertainment Group; (y) any agreements and obligations of any member of the MSG Entertainment Group under this Agreement or any of the Ancillary Agreements and (z) any Retained Claims Liabilities.

"*Spinco Releasee*" shall have the meaning set forth in Section 2.14(a) of this Agreement.

"*Spinco Releasor*" shall have the meaning set forth in Section 2.14(a) of this Agreement.

"*Spinco Retained Claims Liabilities*" shall mean the Liabilities described in Schedule B-2.

"*Spinco Retained Contract Liabilities*" shall have the meaning set forth in Section 2.9(b) of this Agreement.

"*Spinco Share*" shall mean each Spinco Class A Common Share and Spinco Class B Common Share, on an individual basis.

"*Spinco Subsidiaries*" shall mean all of the Subsidiaries listed on Schedule A-1.

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"*Subsidiary*" shall mean with respect to any specified Person, any corporation or other legal entity of which such Person or any of its Subsidiaries controls or owns, directly or indirectly, more than 50% of the stock or other equity interests entitled to vote on the election of members to the board of directors or similar governing body or, in the case of a Person with no governing body, more than 50% of the equity interests. As to Spinco, the term "Subsidiary" shall also include the 50% or less owned entities listed on Schedule A-2.

"*Tax*" shall have the meaning set forth in the Tax Disaffiliation Agreement.

"*Tax Disaffiliation Agreement*" shall mean the Tax Disaffiliation Agreement by and between MSG Entertainment and Spinco, which agreement shall be entered into prior to or on the Distribution Date.

"*Third Party*" shall mean any Person who is not a Party to this Agreement.

"*Third-Party Claim*" shall have the meaning set forth in Section 3.3(a) of this Agreement.

"*Transfers*" shall mean the direct and indirect transfers of assets and assignment of agreements from MSG Entertainment to Spinco which resulted in Spinco owning, directly or indirectly, the Spinco Business.

"*2015 Distribution Agreement*" shall mean the Distribution Agreement, dated as of September 15, 2015 between MSG Sports and MSG Networks Inc.

"*2020 Distribution Agreement*" shall mean the Distribution Agreement, dated as of March 31, 2020 between MSG Sports and MSG Entertainment.

**Section 1.2 Reference; Interpretation.** References in this Agreement to any gender include references to all genders, and references to the singular include references to the plural and vice versa. The words "*include*," "*includes*" and "*including*" when used in this Agreement shall be deemed to be followed by the phrase "*without limitation*." Unless the context otherwise requires, references in this Agreement to Articles, Sections and Schedules shall be deemed references to Articles and Sections of, and Schedules to, this Agreement. Unless the context otherwise requires, the words "*hereof*", "*hereby*" and "*herein*" and words of similar meaning when used in this Agreement refer to this Agreement in its entirety and not to any particular Article, Section or provision of this Agreement. Neither this Agreement nor any Ancillary Agreement shall be construed against either Party as the principal draftsperson hereof or thereof.

**ARTICLE II** 

**DISTRIBUTION AND** 

**CERTAIN COVENANTS** 

**Section 2.1 Distribution.** (a) On or prior to the Distribution Date, MSG Entertainment shall instruct MSG Entertainment's stock transfer agent (the "*Agent*") to effect the

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Distribution by distributing, on or as soon as practicable following the Distribution Date, the Spinco Class A Common Shares and the Spinco Class B Common Shares to the holders of record as of the Distribution Record Date of MSG Entertainment Class A Common Stock and MSG Entertainment Class B Common Stock, respectively, and to credit the appropriate class and number of such Spinco Shares to book entry accounts or issue properly endorsed stock certificates, as applicable, for each such holder of MSG Entertainment Common Stock, all as further contemplated by the Information Statement and hereby. Spinco shall provide any share certificates that the Agent shall require in order to effect the Distribution. The Distribution shall be effective at 11:59 P.M., New York City time, on the Distribution Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Spinco Shares distributed in the Distribution are generally intended to be distributed pursuant to a book entry system. MSG Entertainment shall instruct the Agent to deliver the Spinco Shares previously delivered to the Agent to a depositary and to mail to each holder of record of MSG Entertainment Common Stock on the Distribution Record Date, a statement of the Spinco Shares credited to such holder's account. If prior to or following the Distribution a holder of Spinco Shares requests physical certificates instead of participating in the book entry system, the Agent shall issue certificates for such shares. In lieu of fractional shares, cash shall be given to holders otherwise entitled to such fractional Spinco Shares on the Distribution Date. As soon as practicable following the Distribution Date, the Agent shall (i) aggregate all fractional Spinco Class A Common Shares into whole Spinco Class A Common Shares and (ii) aggregate all fractional Spinco Class B Common Shares into whole Spinco Class B Common Shares, and convert the whole Spinco Class B Common Shares into whole Spinco Class A Common Shares, and (iii) sell the whole Spinco Class A Common Shares in the open market at then prevailing prices and shall distribute to each such holder such holder's ratable share of the proceeds of such sale, net of brokerage fees incurred in such sales and after deducting any Taxes required to be withheld and applicable transfer Taxes.

**Section 2.2 MSG Entertainment Determination.** MSG Entertainment shall have the sole and absolute discretion to determine whether to proceed with all or part of the Distribution and all terms of the Distribution, including the form, structure and terms of any transaction(s) and/or offering(s) to effect the Distribution and the timing of and conditions to the consummation of the Distribution. Spinco shall cooperate with MSG Entertainment in all respects to accomplish the Distribution and shall, at MSG Entertainment's direction, promptly take any and all actions necessary or desirable to effect the Distribution. In its sole and absolute discretion, MSG Entertainment shall select any investment banker(s) and manager(s) in connection with the Distribution, as well as any financial printer, solicitation and/or exchange agent and outside counsel for MSG Entertainment, which shall include Sullivan & Cromwell LLP. Each of MSG Entertainment and Spinco acknowledges that it has been afforded the opportunity to seek the advice and assistance of its own separate counsel in connection with the negotiation and preparation of this Agreement and the Ancillary Agreements.

**Section 2.3 Charter; Bylaws.** On or prior to the Distribution Date, Spinco and MSG Entertainment shall have taken all necessary actions to provide for the adoption of the form of the Second Amended and Restated Certificate of Incorporation and form of Amended By-laws in substantially the form filed by Spinco with the Commission as exhibits to the Registration Statement.

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**Section 2.4 Directors.** On or prior to the Distribution Date, MSG Entertainment and Spinco shall have taken all necessary action to cause the Board of Directors of Spinco to consist of the individuals identified in the Information Statement as directors of Spinco as of the Effective Time.

**Section 2.5 Election of Officers.** On or prior to the Distribution Date, Spinco shall take all actions necessary and desirable so that as of the Distribution Date the officers of Spinco will be as set forth in the Information Statement.

**Section 2.6 Certain Licenses and Permits.** On or prior to the Distribution Date or as soon as reasonably practicable thereafter, MSG Entertainment shall use its commercially reasonable efforts to transfer or cause to be transferred any transferable licenses, permits and authorizations issued by any Governmental Authority which relate solely to the Spinco Business but which are held in the name of any member of the MSG Entertainment Group, or in the name of any employee, officer, director, stockholder or agent of any such member, or otherwise, on behalf of a member of the Spinco Group to the appropriate member of the Spinco Group.

**Section 2.7 State Securities Laws.** Prior to the Distribution Date, MSG Entertainment and Spinco shall take all such action as may be necessary or appropriate under the securities or blue sky laws of states or other political subdivisions of the United States in order to effect the Distribution.

**Section 2.8 Listing Application; Notice to Stock Exchange.** (a) Prior to the Distribution Date, MSG Entertainment and Spinco shall prepare and file with NYSE a listing application and related documents and shall take all such other actions with respect thereto as shall be necessary or desirable in order to cause NYSE to list on or prior to the Distribution Date, subject to official notice of issuance, the Spinco Class A Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Prior to the Distribution, MSG Entertainment shall give NYSE not less than ten days' advance notice of the Distribution Record Date in compliance with Rule 10b-17 under the Exchange Act and Section 204.12 of the NYSE Listed Company Manual.

**Section 2.9 Assignment of Agreements.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In connection with the Transfers, MSG Entertainment and/or its Affiliates shall enter into assignment agreements pursuant to which certain rights and obligations of MSG Entertainment and/or its Affiliates (in each case, an "*MSG Entertainment Assignor*") will be assigned to, and accepted and assumed by, Spinco and/or its Affiliates (in each case a "*Spinco Assignee*"), in each case effective at or prior to the Effective Time. Unless otherwise agreed in the relevant assignment agreement, the relevant MSG Entertainment Assignor shall be entitled to the benefits of and be responsible for all Liabilities under each such agreement that relate to all periods of time prior to the Effective Time (each such Liability, an "*MSG Entertainment Retained Contract Liability*") and the relevant Spinco Assignee shall be entitled to the benefits of and be responsible for all Liabilities relating to all periods of time after the Effective Time (each such Liability, a "*Spinco Assumed Contract Liability*").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with the Transfers, Spinco and/or its Affiliates shall enter into assignment agreements pursuant to which rights and obligations of Spinco and/or its Affiliates (in each case, an "*Spinco Assignor*") will be assigned to, and accepted and assumed by, MSG Entertainment and/or its Affiliates (in each case an "*MSG Entertainment Assignee*"), in each case effective as of the Effective Time. Unless otherwise agreed in the relevant assignment agreement, the relevant Spinco Assignor shall be entitled to the benefits of and be responsible for all Liabilities under each such agreement that relate to all periods of time prior to the Effective Time (each such Liability, a "*Spinco Retained Contract Liability*") and the relevant MSG Entertainment Assignee shall be entitled to the benefits and responsible for all Liabilities relating to all periods of time after the Effective Time (each such Liability, an "*MSG Entertainment Assumed Contract Liability*").

**Section 2.10 Removal of Certain Guarantees; Releases from Liabilities.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise specified in any Ancillary Agreement, (i) Spinco shall use its commercially reasonable efforts to have, on or prior to the Distribution Date, or as soon as practicable thereafter, all members of the MSG Entertainment Group removed as guarantors of or obligors for any Liability of Spinco, including in respect of those guarantees, if any, set forth on Schedule C-1 of this Agreement, and (ii) MSG Entertainment shall use its commercially reasonable efforts to have, on or prior to the Distribution Date, or as soon as practicable thereafter, all members of the Spinco Group removed as guarantors of or obligors for any Liability of MSG Entertainment, including in respect of those guarantees, if any, set forth on Schedule C-2 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If Spinco or MSG Entertainment, as the case may be, is unable to obtain, or to cause to be obtained, any such required removal as set forth in Section 2.10(a), the applicable guarantor or obligor shall continue to be bound as such and, unless not permitted by Law or the terms thereof, the relevant beneficiary shall or shall cause one of its Subsidiaries, as agent or subcontractor for such guarantor or obligor, to pay, perform and discharge fully all the obligations or other Liabilities of such guarantor or obligor thereunder from and after the Effective Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If (i) Spinco is unable to obtain, or to cause to be obtained, any such required removal as set forth in Section 2.10(a), or (ii) Spinco Liabilities arise from and after the Effective Time but before a member of the MSG Entertainment Group which is a guarantor or obligor with reference to any such Spinco Liability is removed pursuant to Section 2.10(a), then such guarantor or obligor shall be indemnified by Spinco for all Liabilities incurred by it in its capacity as guarantor or obligor. Without limiting the foregoing, Spinco shall, or shall cause a member of the Spinco Group to, reimburse any such member of the MSG Entertainment Group which is a guarantor or obligor as soon as practicable (but in no event later than 30 days) following delivery by MSG Entertainment to Spinco of notice of a payment made pursuant to this Section 2.10 in respect of Spinco Liabilities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If (i) MSG Entertainment is unable to obtain, or to cause to be obtained, any such required removal as set forth in Section 2.10(a), or (ii) MSG Entertainment Liabilities arise from and after the Effective Time but before a member of the Spinco Group which is a guarantor or obligor with reference to any such MSG Entertainment Liability is removed pursuant to Section 2.10(a), then such guarantor or obligor shall be indemnified by MSG Entertainment for all Liabilities incurred by it in its capacity as guarantor or obligor. Without limiting the foregoing, MSG Entertainment, shall, or shall cause a member of the MSG Entertainment Group to, reimburse any such member of the Spinco Group which is a guarantor or obligor as soon as practicable (but in no event later than 30 days) following delivery by Spinco to MSG Entertainment of notice of a payment made pursuant to this Section 2.10 in respect of MSG Entertainment Liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event that at any time before or after the Distribution Date MSG Entertainment identifies any letters of credit, interest rate or foreign exchange contracts, surety bonds or other contracts (excluding guarantees) that relate primarily to the Spinco Business but for which a member of the MSG Entertainment Group has contingent, secondary, joint, several or other Liability of any nature whatsoever, Spinco shall, at its expense, take such actions and enter into such agreements and arrangements as MSG Entertainment may reasonably request to effect the release or substitution of MSG Entertainment (or a member of the MSG Entertainment Group).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In the event that at any time before or after the Distribution Date Spinco identifies any letters of credit, interest rate or foreign exchange contracts, surety bonds or other contracts (excluding guarantees) that relate primarily to the MSG Entertainment Business but for which a member of the Spinco Group has contingent, secondary, joint, several or other Liability of any nature whatsoever, MSG Entertainment shall, at its expense, take such actions and enter into such agreements and arrangements as Spinco may reasonably request to effect the release or substitution of Spinco (or a member of the Spinco Group).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Parties shall use commercially reasonable efforts to obtain, or cause to be obtained, any consent, substitution or amendment required to novate or assign all MSG Entertainment Liabilities and Spinco Liabilities of any nature whatsoever transferred under this Agreement or an Ancillary Agreement, or to obtain in writing the unconditional release of the assignor so that in each such case, MSG Entertainment (or an appropriate member of the MSG Entertainment Group) shall be solely responsible for the MSG Entertainment Liabilities and Spinco (or an appropriate member of the Spinco Group) shall be solely responsible for the Spinco Liabilities; <u>provided</u>, however, that no Party shall be obligated to pay any consideration therefore (except for filing fees or other similar charges) to any Third Party from whom such consent, substitution, amendment or release is requested. Whether or not any such consent, substitution, amendment or release is obtained, nothing in this Section 2.10 shall in any way limit the obligations of the parties under Article III.

**Section 2.11 Corporate Names; Trademarks.** All agreements between the Parties and their respective Affiliates relating to intellectual property matters are set forth in a separate MSG Entertainment Trademark Agreement between the Parties, dated the date hereof, and this Agreement shall in no way modify or supersede the MSG Entertainment Trademark Agreement.

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**Section 2.12 Ancillary Agreements.** Prior to the Distribution Date, each of MSG Entertainment and Spinco shall enter into, and/or (where applicable) shall cause members of their respective Groups to enter into, the Ancillary Agreements and any other agreements in respect of the Distribution reasonably necessary or appropriate in connection with the transactions contemplated hereby and thereby.

**Section 2.13 Acknowledgment by Spinco.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Spinco, on behalf of itself and all members of the Spinco Group, acknowledges, understands and agrees that, except as may be expressly set forth herein or in any Ancillary Agreement, (a) no member of the MSG Entertainment Group or any other Person has, in this Agreement or in any other agreement or document, or otherwise made any representation or warranty of any kind whatsoever, express or implied, to Spinco or any member of the Spinco Group or to any director, officer, employee or agent thereof in any way with respect to any of the transactions contemplated hereby or the business, assets, agreements, condition or prospects (financial or otherwise) of, or any other matter involving, the assets, agreements, Liabilities or businesses of MSG Entertainment, any member of the MSG Entertainment Group, Spinco or any member of the Spinco Group, any assets that are transferred, any agreements that are assigned, any Spinco Liabilities or the Spinco Business, (b) Spinco and each member of the Spinco Group has taken all of the assets that are transferred, any agreements that are assigned, the Spinco Business and Spinco Liabilities on an "as is, where is" basis, and all implied warranties of merchantability, fitness for a specific purpose or otherwise have been and are hereby expressly disclaimed, and (c) none of MSG Entertainment or any members of the MSG Entertainment Group or any other person has made or makes any representation or warranty with respect to the Distribution or the entering into of this Agreement or the Ancillary Agreements or the transactions contemplated hereby and thereby, and, in each case, Spinco has not relied on any such representation or warranty. Except as expressly set forth herein or in any other Ancillary Agreement, Spinco and each member of the Spinco Group shall bear the economic and legal risk that the Spinco Assets shall prove to be insufficient or that the title of any member of the Spinco Group to any Spinco Assets shall be other than good and marketable and free from encumbrances. The provisions of the Contribution Agreement and any related assignment agreement or other related documents are expressly subject to this Section 2.13 and to Section 2.14 hereof.

**Section 2.14 Release.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Spinco agrees that for itself and for its predecessors, Subsidiaries, departments, divisions and sections and for their successors, Affiliates, heirs, assigns, executors, administrators, partners, members, officers, directors, shareholders, employees, attorneys and agents (individually, each a "*Spinco Releasor*" and collectively, the "*Spinco Releasors*"), in consideration of the making by MSG Entertainment of the Transfers, the Spinco Releasors shall release, waive and forever discharge MSG Entertainment and its predecessors, Subsidiaries, departments, divisions, sections, successors, Affiliates, heirs, assigns, partners, members, officers, directors, shareholders, employees, attorneys and agents (individually, each a "*Spinco Releasee*" and collectively, the "*Spinco Releasees*") from, and shall, in addition to other obligations under Article III, indemnify and hold harmless all such persons against and from, all Liabilities of every

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name and nature, in law or equity, known or unknown, which against any Spinco Releasee, a Spinco Releasor ever had, now has or hereafter can, shall or may have by reason of any matter, act, omission, conduct, transaction or occurrence from the beginning of the world up to and including the Distribution Date for, upon, by reason of, asserted in or arising out of, or related to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The management of the business and affairs of Spinco (and its predecessors, Subsidiaries and Affiliates) and the
Spinco Business on or prior to the Distribution Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The terms of this Agreement, the Ancillary Agreements, the Distribution, the Amended and Restated Certificate of
Incorporation or the Amended By-Laws of Spinco; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any other decision that may have been made, or any action taken, relating to Spinco (and its predecessors,
Subsidiaries and Affiliates), the Spinco Business or the Distribution.

The term "Spinco Releasee" is expressly intended to include any person who served as an incorporator, director, officer, employee, agent or attorney of Spinco on or prior to the Distribution Date at the request of MSG Entertainment. Each Spinco Releasor expressly covenants and agrees never to institute, or participate (including as a member of a class) in, any Action against any Spinco Releasee, in any court or forum, directly or indirectly, regarding or relating to the matters released through this Release, and further covenants and agrees that this Release is a bar to any such Action. For the avoidance of doubt, the purpose of this Section 2.14(a) is to make clear the intent of the Parties that, following the Distribution Date, the only Liability that any Spinco Releasee shall have to any Spinco Releasor shall be its obligation to perform its obligations under and pursuant to the terms of this Agreement, the Ancillary Agreements and any other agreements to which the Spinco Releasee and the Spinco Releasor are parties and there shall be no Liability in respect of any event, occurrence, action or inaction on or prior to the Distribution Date. This Release shall not extend to any Liabilities owed by a Spinco Releasee to a Spinco Releasor in the Spinco Releasor's capacity as a director, officer, employee or other Representative or shareholder of the Spinco Releasee nor shall it release any Liabilities or obligations under this Agreement or any Ancillary Agreements or any other agreements to which the Spinco Releasee and the Spinco Releasor are parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) MSG Entertainment agrees that for itself and for its predecessors, Subsidiaries, departments, divisions and sections and for their successors, Affiliates, heirs, assigns, executors, administrators, partners, members, officers, directors, shareholders, employees, attorneys and agents (individually, each an "*MSG Entertainment Releasor*" and collectively, the "*MSG Entertainment Releasors*"), in consideration of the entry by Spinco into this Agreement and the Ancillary Agreements, the MSG Entertainment Releasors shall release, waive and forever discharge Spinco and its predecessors, Subsidiaries, departments, divisions, sections, successors, Affiliates, heirs, assigns, partners, members, officers, directors, shareholders, employees, attorneys and agents (individually, each an "*MSG Entertainment Releasee*" and collectively, the "*MSG Entertainment Releasees*") from, and shall, in addition to other obligations under Article III,

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indemnify and hold harmless all such persons against and from, all Liabilities of every name and nature, in law or equity, known or unknown, which against any MSG Entertainment Releasee, an MSG Entertainment Releasor ever had, now has or hereafter can, shall or may have by reason of any matter, act, omission, conduct, transaction or occurrence from the beginning of the world up to and including the Distribution Date for, upon, by reason of, asserted in or arising out of, or related to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The management of the business and affairs of MSG Entertainment (and its predecessors, Subsidiaries and
Affiliates) and the MSG Entertainment Business on or prior to the Distribution Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The terms of this Agreement, the Ancillary Agreements, the Distribution, the Certificate of Incorporation or the By-Laws of MSG Entertainment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any other decision that may have been made, or any action taken, relating to MSG Entertainment (and its
predecessors, Subsidiaries and Affiliates), the MSG Entertainment Business or the Distribution.

The term "MSG Entertainment Releasee" is expressly intended to include any person who served as an incorporator, director, officer, employee, agent or attorney of MSG Entertainment on or prior to the Distribution Date. Each MSG Entertainment Releasor expressly covenants and agrees never to institute, or participate (including as a member of a class) in, any Action against any MSG Entertainment Releasee, in any court or forum, directly or indirectly, regarding or relating to the matters released through this Release, and further covenants and agrees that this Release is a bar to any such Action. For the avoidance of doubt, the purpose of this Section 2.14(b) is to make clear the intent of the Parties that, following the Distribution Date, the only Liability that any MSG Entertainment Releasee shall have to any MSG Entertainment Releasor shall be its obligation to perform its obligations under and pursuant to the terms of this Agreement, the Ancillary Agreements and any other agreements to which the MSG Entertainment Releasee and the MSG Entertainment Releasor are parties and there shall be no Liability in respect of any event, occurrence, action or inaction on or prior to the Distribution Date. This Release shall not extend to any Liabilities owed by an MSG Entertainment Releasee to an MSG Entertainment Releasor in the MSG Entertainment Releasor's capacity as a director, officer, employee or other Representative or shareholder of the MSG Entertainment Releasee nor shall it release any Liabilities or obligations under this Agreement or any Ancillary Agreements or any other agreements to which the MSG Entertainment Releasee and the MSG Entertainment Releasor are parties.

**Section 2.15 Discharge of Liabilities.** Except as otherwise expressly provided herein or in any of the Ancillary Agreements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) From and after the Effective Time, (i) MSG Entertainment shall, and shall cause each member of the MSG Entertainment Group to, assume, pay, perform and discharge all MSG Entertainment Liabilities in the ordinary course of business, consistent with past practice, and (ii) Spinco shall, and shall cause each member of the Spinco Group, to assume, pay, perform

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and discharge all Spinco Liabilities in the ordinary course of business, consistent with past practice. The agreements in this Section 2.15 are made by each Party for the sole and exclusive benefit of the other Party. To the extent reasonably requested to do so by the other Party, each Party agrees to execute and deliver such documents, in a form reasonably satisfactory to such Party, as may be reasonably necessary to evidence the assumption of any Liabilities hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All intercompany trade, accounts receivable and accounts payable between any member of one Group and any member of another Group in existence at the Effective Time shall be paid and performed in accordance with their terms.

**Section 2.16 Indebtedness.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of the Distribution Date, Spinco represents it will not have any Arena Indebtedness or Enterprise Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Spinco shall not incur any Arena Indebtedness or Enterprise Indebtedness without the prior written consent of MSG Sports.

**Section 2.17 Further Assurances.** If at any time after the Effective Time any further action is reasonably necessary or desirable to carry out the purposes of this Agreement and the Ancillary Agreements, the proper officers of each Party shall take all such necessary action. Without limiting the foregoing, each Party shall use its commercially reasonable efforts promptly to obtain all consents and approvals, to enter into all agreements and to make all filings and applications that may be required for the consummation of the transactions contemplated by this Agreement and the Ancillary Agreements, including all applicable filings with, and approvals from, any Governmental Authority.

**ARTICLE III** 

**INDEMNIFICATION** 

**Section 3.1 Indemnification by MSG Entertainment.** Except as otherwise specifically set forth in any provision of this Agreement from and after the Distribution Date, MSG Entertainment shall indemnify, defend and hold harmless the Spinco Indemnitees from and against any and all Indemnifiable Losses of the Spinco Indemnitees to the extent arising out of, by reason of or otherwise in connection with (i) the MSG Entertainment Liabilities or alleged MSG Entertainment Liabilities; (ii) any breach by any member of the MSG Entertainment Group of this Agreement (including any provision of this Section 3.1); (iii) any untrue statement or alleged untrue statement of a material fact in the Registration Statement or the Information Statement or omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, in each case to the extent relating to the MSG Entertainment Group; and (iv) any indemnification or other obligation that any member of the Spinco Group may have (x) to the NBA or its affiliated entities pursuant to the NBA Agreements or to the NHL or its affiliated entities pursuant to the NHL Agreements to the extent that such indemnification or other obligation arose in connection with the ownership or operation of the MSG Entertainment Business, (y) for any Losses to the NBA, the NHL or their respective affiliated entities, in each case as a result of any act or omission by any member of the MSG

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Entertainment Group, and (z) for any Losses to the NBA, the NHL or their respective affiliated entities, in each case as a result of any obligation of any member of the Spinco Group to cause or otherwise direct any act or omission of any member of the MSG Entertainment Group. This Agreement is not intended to address, and should not be interpreted to address, the matters specifically and expressly covered by the Ancillary Agreements unless such Ancillary Agreement expressly provides that this Agreement applies to any matter in such Ancillary Agreement.

**Section 3.2 Indemnification by Spinco.** Except as otherwise specifically set forth in any provision of this Agreement, from and after the Distribution Date, Spinco shall indemnify, defend and hold harmless the MSG Entertainment Indemnitees from and against any and all Indemnifiable Losses of the MSG Entertainment Indemnitees to the extent arising out of, by reason of or otherwise in connection with (i) the Spinco Liabilities or alleged Spinco Liabilities; (ii) any breach by any member of the Spinco Group of this Agreement (including any provision of this Section 3.2); (iii) any untrue statement or alleged untrue statement of a material fact in the Registration Statement or the Information Statement or in any registration statement, prospectus or listing application with a securities exchange filed by Spinco in connection with the Distribution, or omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading; <u>provided</u>, however, that this clause (iii) shall not apply to any Liability that is covered by Section 3.1(iii); and (iv) any indemnification or other obligation that any member of the MSG Entertainment Group may have (x) to the NBA or its affiliated entities pursuant to the NBA Agreements or to the NHL or its affiliated entities pursuant to the NHL Agreements to the extent that such indemnification or other obligation arose in connection with the ownership or operation of the Spinco Business, (y) for any Losses to the NBA, the NHL or their respective affiliated entities, in each case as a result of any act or omission by any member of the Spinco Group, and (z) for any Losses to the NBA, the NHL or their respective affiliated entities, in each case as a result of any obligation of any member of the MSG Entertainment Group to cause or otherwise direct any act or omission of any member of the Spinco Group. This Agreement is not intended to address, and should not be interpreted to address, the matters specifically and expressly covered by the Ancillary Agreements unless such Ancillary Agreement expressly provides that this Agreement applies to any matter in such Ancillary Agreement.

**Section 3.3 Procedures for Indemnification.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If a claim or demand is made by a Third Party against an Indemnitee (a "*Third-Party Claim*") as to which such Indemnitee is entitled to indemnification pursuant to this Agreement, such Indemnitee shall notify the Party which is or may be required pursuant to Section 3.1 or Section 3.2 hereof to make such indemnification (the "*Indemnifying Party*") in writing, and in reasonable detail, of the Third-Party Claim promptly (and in any event by the date (the "*Outside Notice Date*") that is the 15th Business Day) after receipt by such Indemnitee of written notice of the Third-Party Claim; <u>provided</u>, however, that failure to give such notification shall not affect the indemnification provided hereunder except to the extent the Indemnifying Party shall have been actually prejudiced as a result of such failure (except that the Indemnifying Party shall not be liable for any expenses incurred during the period beginning immediately after the

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Outside Notice Date and ending on the date the Indemnitee gives the required notice). Thereafter, the Indemnitee shall deliver to the Indemnifying Party, promptly (and in any event within 10 Business Days) after the Indemnitee's receipt thereof, copies of all notices and documents (including court papers) received by the Indemnitee relating to the Third-Party Claim. Notice under this Section 3.3 shall be provided in accordance with Section 5.6. For the avoidance of doubt, knowledge of a Third-Party Claim by a Person who is an officer or director of both MSG Entertainment and Spinco shall not constitute notice for purposes of this Section 3.3.

If a Third-Party Claim is made against an Indemnitee, the Indemnifying Party shall be entitled to participate in the defense thereof and, if it so chooses and acknowledges in writing its obligation to indemnify the Indemnitee therefor, to assume the defense thereof with counsel selected by the Indemnifying Party; <u>provided</u>, however, that such counsel is not reasonably objected to by the Indemnitee. Should the Indemnifying Party so elect to assume the defense of a Third-Party Claim, the Indemnifying Party shall, within 30 days (or sooner if the nature of the Third-Party Claim so requires), notify the Indemnitee of its intent to do so, and the Indemnifying Party shall thereafter not be liable to the Indemnitee for legal or other expenses subsequently incurred by the Indemnitee in connection with the defense thereof; <u>provided</u>, however, that such Indemnitee shall have the right to employ counsel to represent such Indemnitee if, in such Indemnitee's reasonable judgment, a conflict of interest between such Indemnitee and such Indemnifying Party exists in respect of such claim which would make representation of both such parties by one counsel inappropriate, and in such event the fees and expenses of such separate counsel shall be paid by such Indemnifying Party. If the Indemnifying Party assumes such defense, the Indemnitee shall have the right to participate in the defense thereof and to employ counsel, subject to the proviso of the preceding sentence, at its own expense, separate from the counsel employed by the Indemnifying Party, it being understood that the Indemnifying Party shall control such defense. The Indemnifying Party shall be liable for the fees and expenses of counsel employed by the Indemnitee for any period during which the Indemnifying Party has failed to assume the defense thereof (other than during the period prior to the time the Indemnitee shall have given notice of the Third-Party Claim as provided above). If the Indemnifying Party so elects to assume the defense of any Third-Party Claim, all of the Indemnitees shall cooperate with the Indemnifying Party in the defense or prosecution thereof, including by providing or causing to be provided Records and witnesses as soon as reasonably practicable after receiving any request therefor from or on behalf of the Indemnifying Party.

If the Indemnifying Party acknowledges in writing responsibility under this Section 3.3 for a Third-Party Claim, then in no event will the Indemnitee admit any liability with respect to, or settle, compromise or discharge, any Third-Party Claim without the Indemnifying Party's prior written consent; <u>provided</u>, however, that the Indemnitee shall have the right to settle, compromise or discharge such Third-Party Claim without the consent of the Indemnifying Party if the Indemnitee releases the Indemnifying Party from its indemnification obligation hereunder with respect to such Third-Party Claim and such settlement, compromise or discharge would not otherwise adversely affect the Indemnifying Party. If the Indemnifying Party acknowledges in writing liability for a Third-Party Claim, the Indemnitee will agree to any settlement, compromise or discharge of a Third-Party Claim that the Indemnifying Party may recommend and that by its terms obligates the Indemnifying Party to pay the full amount of the liability in connection with

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such Third-Party Claim and releases the Indemnitee completely in connection with such Third-Party Claim and that would not otherwise adversely affect the Indemnitee. If an Indemnifying Party elects not to assume the defense of a Third-Party Claim, or fails to notify an Indemnitee of its election to do so as provided herein, such Indemnitee may compromise, settle or defend such Third-Party Claim.

Notwithstanding the foregoing, the Indemnifying Party shall not be entitled to assume the defense of any Third-Party Claim (and shall be liable for the fees and expenses of counsel incurred by the Indemnitee in defending such Third-Party Claim) if the Third-Party Claim seeks an order, injunction or other equitable relief or relief for other than money damages against the Indemnitee which the Indemnitee reasonably determines, after conferring with its counsel, cannot be separated from any related claim for money damages. If such equitable relief or other relief portion of the Third-Party Claim can be so separated from that for money damages, the Indemnifying Party shall be entitled to assume the defense of the portion relating to money damages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Spinco shall, and shall cause the other Spinco Indemnitees to, and MSG Entertainment shall, and shall cause the other MSG Entertainment Indemnitees to, cooperate as may reasonably be required in connection with the investigation, defense and settlement of any Third-Party Claim. In furtherance of this obligation, the Parties agree that if an Indemnifying Party chooses to defend or to compromise or settle any Third-Party Claim, MSG Entertainment or Spinco, as the case may be, shall use its commercially reasonable efforts to make available to the other Party, upon written request, the former and then current directors, officers, employees and agents of the members of its respective Group as witnesses and any Records or other documents within its control or which it otherwise has the ability to make available, to the extent that any such Person, Records or other documents may reasonably be required in connection with such defense, settlement or compromise. At the request of an Indemnifying Party, an Indemnitee shall enter into a reasonably acceptable joint defense agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The remedies provided in this Article III shall be cumulative and shall not preclude assertion by any Indemnitee of any other rights or the seeking of any and all other remedies against any Indemnifying Party.

**Section 3.4 Indemnification Payments.** (a) Indemnification required by this Article III shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or an Indemnifiable Loss is incurred. If the Indemnifying Party fails to make an indemnification payment required by this Article III

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within 30 days after receipt of a bill therefor or notice that an Indemnifiable Loss has been incurred, the Indemnifying Party shall also be required to pay interest on the amount of such indemnification payment, from the date of receipt of the bill or notice of the Indemnified Loss to but not including the date of payment, at the Applicable Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The amount of any claim by an Indemnitee under this Agreement (i) shall be reduced to reflect any actual Tax savings or insurance proceeds received by any Indemnitee that result from the Indemnifiable Losses that gave rise to such indemnity and (ii) shall be increased by an amount equal to any Tax cost incurred by any Indemnitee that results from receipt of payments under this Article III.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For all Tax purposes and to the extent permitted by applicable Law, the Parties hereto shall treat (a) any payment (other than payments representing interest) made pursuant to this Article III as a capital contribution or a distribution, as the case may be, immediately prior to the Distribution and (b) any payment of interest as taxable or deductible, as the case may be, to the Party entitled under this Agreement to retain such payment or required under this Agreement to make such payment, in either case except as otherwise required by applicable Law.

**ARTICLE IV** 

**ACCESS TO INFORMATION** 

**Section 4.1 Provision of Corporate Records.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as specifically provided in Article III (in which event the provisions of such Article will govern), after the Distribution Date, upon the prior written request by Spinco for specific and identified agreements, documents, books, records or files including accounting and financial records (collectively, "*Records*") which relate to Spinco or the conduct of the Spinco Business up to the Effective Time, or which Spinco determines are necessary or advisable in order for Spinco to prepare its financial statements and any reports or filings to be made with any Governmental Authority, MSG Entertainment shall arrange, as soon as reasonably practicable following the receipt of such request, to provide appropriate copies of such Records (or the originals thereof if Spinco has a reasonable need for such originals) in the possession or control of MSG Entertainment or any of the MSG Entertainment Subsidiaries, but only to the extent such items are not already in the possession or control of the requesting Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as specifically provided in Article III (in which event the provisions of such Article will govern), after the Distribution Date, upon the prior written request by MSG Entertainment for specific and identified Records which relate to MSG Entertainment or the conduct of the MSG Entertainment Business up to the Effective Time, or which MSG Entertainment determines are necessary or advisable in order for MSG Entertainment to prepare its financial statements and any reports or filings to be made with any Governmental Authority, Spinco shall arrange, as soon as reasonably practicable following the receipt of such request, to provide appropriate copies of such Records (or the originals thereof if MSG Entertainment has a reasonable need for such originals) in the possession or control of Spinco or any of the Spinco Subsidiaries, but only to the extent such items are not already in the possession or control of the requesting Party.

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**Section 4.2 Access to Information.** Except as specifically provided in Article III (in which event the provisions of such Article will govern), from and after the Distribution Date, each of MSG Entertainment and Spinco shall afford to the other and its authorized Representatives reasonable access during normal business hours, subject to appropriate restrictions for classified, privileged or confidential information, to the personnel, properties, and Records of such Party and its Subsidiaries insofar as such access is reasonably required by the other Party and relates to such other Party or the conduct of its business prior to the Effective Time.

**Section 4.3 Witnesses; Documents and Cooperation in Actions.** (a) At all times from and after the Distribution Date, each of MSG Entertainment and Spinco shall use their commercially reasonable efforts to make available to the other, upon reasonable written request, its and its Subsidiaries' former and then current Representatives as witnesses and any Records within its control or which it otherwise has the ability to make available, to the extent that such Persons or Records may reasonably be required in connection with the prosecution or defense of any Action in which the requesting Party may from time to time be involved. The requesting Party shall promptly reimburse the other party (and any person it makes available hereunder) for all reasonable out-of-pocket costs and expenses incurred in connection therewith. This provision shall not apply to any Action brought by one Party against another Party (as to which production of documents and witnesses shall be governed by applicable discovery rules).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting any provision of this Section 4.3, the Parties shall cooperate and consult, and shall cause each member of their respective Groups to cooperate and consult, to the extent reasonably necessary with respect to any Actions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In connection with any matter contemplated by this Section 4.3, the Parties will enter into a mutually acceptable joint defense agreement so as to maintain to the extent practicable any applicable attorney-client privilege or work product immunity of any member of any Group.

**Section 4.4 Confidentiality.** (a) MSG Entertainment and the MSG Entertainment Subsidiaries and Spinco and the Spinco Subsidiaries shall not use or permit the use of and shall keep, and shall cause its consultants and advisors to keep, confidential all information concerning the other Party in its possession, its custody or under its control to the extent such information (w) relates to or was acquired during the period up to the Effective Time, (x) relates to any Ancillary Agreement, (y) is obtained in the course of performing services for the other Party pursuant to any Ancillary Agreement, or (z) is based upon or is derived from information described in the preceding clauses (w), (x) or (y), and each Party shall not (without the prior written consent of the other) otherwise release or disclose such information to any other Person, except such Party's auditors, attorneys, consultants and advisors, unless compelled to disclose such information by judicial or administrative process or unless such disclosure is required by Law and such Party has used commercially reasonable efforts to consult

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with the other affected Party or Parties prior to such disclosure. Each Party shall be deemed to have satisfied its obligation to hold confidential any information concerning or owned by the other Party or its Group if it exercises the same care as it takes to preserve confidentiality for its own similar information. The covenants in this Section 4.4 shall survive the transactions contemplated by this Agreement and shall continue indefinitely; <u>provided</u>, however, that the covenants in this Section 4.4 shall terminate with respect to any information not constituting a trade secret under applicable law on the third anniversary of the later of the Distribution Date or the date on which the Party subject to such covenants with respect to such information receives it (but any such termination shall not terminate or otherwise limit any other covenant or restriction regarding the disclosure or use of such information under any Ancillary Agreement or other agreement, instrument or legal obligation). This Section 4.4 shall not apply to information (A) that has been in the public domain through no fault of such Party or (B) that has been later lawfully acquired from other sources by such Party, (C) the use or disclosure of which is permitted by this Agreement or any other Ancillary Agreement or any other agreement entered into pursuant hereto, (D) that is immaterial and its disclosure is required as part of the conduct of that Party's business and would not reasonably be expected to be detrimental to the interests of the other Party or (E) that the other Party has agreed in writing may be so used or disclosed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any Party or any member of its Group either determines that it is required to disclose pursuant to applicable Law, or receives any demand under lawful process or from any Governmental Authority to disclose or provide, information of the other Party (or any member of the other Party's Group) that is subject to the confidentiality provisions of Section 4.4(a) such Party shall notify the other Party prior to disclosing or providing such information and shall cooperate at the expense of the requesting Party in seeking any reasonable protective arrangements requested by such other Party. Subject to the foregoing, the Person that received such request may thereafter disclose or provide such information if and to the extent required by such Law or by lawful process or such Governmental Authority; <u>provided</u>*,* however, that the Person shall only disclose such portion of the information as required to be disclosed or provided.

**Section 4.5 Privileged Matters.** Except as may be otherwise provided in an Ancillary Agreement, the Parties recognize that legal and other professional services that have been and will be provided prior to the Distribution Date have been and will be rendered for the benefit of each of the members of the MSG Entertainment Group, and each of the members of the Spinco Group, and that each of the members of the MSG Entertainment Group, and each of the members of the Spinco Group, should be deemed to be the client for the purposes of asserting all privileges which may be asserted under applicable Law. To allocate the interests of each Party in the information as to which any Party is entitled to assert a privilege, the Parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) MSG Entertainment shall be entitled, in perpetuity, to control the assertion or waiver of all privileges in connection with privileged information that relates solely to the MSG Entertainment Business (other than with respect to Liabilities as to which Spinco is required to provide indemnification under Article III), whether or not the privileged information is in the possession of or under the control of MSG Entertainment or Spinco. MSG Entertainment shall also be entitled, in perpetuity, to control the assertion or waiver of all privileges in connection with

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privileged information that relates solely to the subject matter of any claims constituting MSG Entertainment Liabilities (including Retained Claims Liabilities), or other Liabilities as to which it is required to provide indemnification under Article III, now pending or which may be asserted in the future, whether or not the privileged information is in the possession of or under the control of MSG Entertainment or Spinco.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Spinco shall be entitled, in perpetuity, to control the assertion or waiver of all privileges in connection with privileged information that relates solely to the Spinco Business (other than with respect to matters or claims that are Retained Claims Liabilities or other Liabilities as to which MSG Entertainment is required to provide indemnification under Article III), whether or not the privileged information is in the possession of or under the control of MSG Entertainment or Spinco. Spinco shall also be entitled, in perpetuity, to control the assertion or waiver of all privileges in connection with privileged information that relates solely to the subject matter of any claims constituting Spinco Liabilities, or other liabilities as to which it is required to provide indemnification under Article III, now pending or which may be asserted in the future, in any lawsuits or other proceedings initiated against or by Spinco, whether or not the privileged information is in the possession of Spinco or under the control of MSG Entertainment or Spinco.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Parties agree that they shall have a shared privilege, with equal right to assert or waive, subject to the restrictions in this Section 4.5, with respect to all privileges not allocated pursuant to the terms of Sections 4.5(a) and (b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Party may waive any privilege which could be asserted under any applicable Law, and in which the other Party has a shared privilege, without the written consent of the other Party, which consent shall not be unreasonably withheld, conditioned or delayed, except to the extent reasonably required in connection with any Third-Party Claims or as provided in subsection (e) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event of any litigation or dispute between or among the Parties, any Party and a Subsidiary of the other Party, or a Subsidiary of one Party and a Subsidiary of the other Party, either such Party may waive a privilege in which the other Party has a shared privilege, without obtaining the consent of the other Party; <u>provided</u>, however, that such waiver of a shared privilege shall be effective only as to the use of information with respect to the litigation or dispute between the Parties and/or their Subsidiaries, and that such a Party shall, to the best of that Party's ability, keep such information confidential and limited in distribution (including, for example, not filing any such information in a public court document); and that any such use shall not operate as a waiver of the shared privilege with respect to any Third-Party Claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If a dispute arises between or among the Parties or their respective Subsidiaries regarding whether a privilege should be waived to protect or advance the interest of any Party, each Party agrees that it shall negotiate in good faith, shall endeavor to minimize any prejudice to the rights of the other Party, and shall not unreasonably withhold consent to any request for a waiver by the other Party. Each Party hereto specifically agrees that it will not withhold consent to a waiver for any purpose except to protect its own legitimate interests.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Upon receipt by any Party or by any Subsidiary thereof of any subpoena, discovery or other request which arguably calls for the production or disclosure of information subject to a shared privilege or as to which another Party has the sole right hereunder to assert a privilege, or if any Party obtains knowledge that any of its or any of its Subsidiaries' current or former Representatives have received any subpoena, discovery or other request which arguably calls for the production or disclosure of such privileged information, such Party shall promptly notify the other Party of the existence of the request and shall provide the other Party a reasonable opportunity to review the information and to assert any rights it or they may have under this Section 4.5 or otherwise to prevent the production or disclosure of such privileged information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The transfer of all Records and other information pursuant to this Agreement is made in reliance on the agreement of MSG Entertainment and Spinco, as set forth in Sections 4.2, 4.3, 4.4 and this Section 4.5, to maintain the confidentiality of privileged information and to assert and maintain all applicable privileges. The access to information being granted pursuant to Sections 4.1, 4.2, and 4.3 hereof, the agreement to provide witnesses and individuals pursuant to Sections 4.2 and 4.3 hereof, the furnishing of notices and documents and other cooperative efforts contemplated by Section 4.3 hereof, and the transfer of privileged information between and among the Parties and their respective Subsidiaries, Affiliates and Representatives pursuant to this Agreement shall not be deemed a waiver of any privilege that has been or may be asserted under this Agreement or otherwise.

**Section 4.6 Ownership of Information.** Any information owned by one Party or any of its Subsidiaries that is provided to a requesting Party pursuant to Article III or this Article IV shall be deemed to remain the property of the providing Person. Unless specifically set forth herein, nothing contained in this Agreement shall be construed as granting or conferring rights of license or otherwise in any such information.

**Section 4.7 Cost of Providing Records and Information.** A Party requesting Records, information or access to personnel, witnesses or properties, under Article III or this Article IV, agrees to reimburse the other Party and its Subsidiaries for the reasonable out-of-pocket costs, if any, incurred in seeking to satisfy the request of the requesting Party.

**Section 4.8 Retention of Records.** Except (a) as provided in the Tax Disaffiliation Agreement or (b) when a longer retention period is otherwise required by Law or agreed to in writing, the MSG Entertainment Group and the Spinco Group shall retain all Records relating to the MSG Entertainment Business and the Spinco Business as of the Effective Time for the periods of time provided in each Party's record retention policy (with respect to the documents of such party and without regard to the Distribution or its effects) as in effect on the Distribution Date. Notwithstanding the foregoing, in lieu of retaining any specific Records, MSG Entertainment or Spinco may offer in writing to deliver such Records to the other and, if such offer is not accepted within 90 days, the offered Records may be destroyed or otherwise disposed of at any time. If a recipient of such offer shall request in writing prior to the scheduled date for such destruction or disposal that any of Records proposed to be destroyed or disposed of be delivered to such requesting Party, the Party proposing the destruction or disposal shall promptly arrange for delivery of such of the Records as was requested (at the cost of the requesting Party).

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**Section 4.9 Other Agreements Providing for Exchange of Information.** The rights and obligations granted under this Article IV are subject to any specific limitations, qualifications or additional provisions on the sharing, exchange or confidential treatment of information set forth in any Ancillary Agreement or in any other agreement to which a member of the MSG Entertainment Group and a member of the Spinco Group is a party.

**Section 4.10 Policies and Best Practices.** Without representation or warranty, Spinco and MSG Entertainment shall continue to be permitted to share, on a confidential basis, "best practices" information and materials (such as policies, workflow templates and standard form contracts).

**Section 4.11 Compliance with Laws and Agreements.** Nothing in this Article IV shall be deemed to require any Person to provide any information if doing so would, in the opinion of counsel to such Person, be inconsistent with any legal or constitutional obligation applicable to such Person.

**Section 4.12 Allocation of Certain Expenses.** Notwithstanding anything in this Agreement to the contrary, MSG Entertainment and Spinco shall share certain specified litigation costs, expenses, insurance proceeds and other recoveries as described in Schedule F.

**ARTICLE V** 

**MISCELLANEOUS** 

**Section 5.1 Complete Agreement; Construction.** This Agreement, including the Schedules, and the Ancillary Agreements shall constitute the entire agreement between the Parties with respect to the subject matter hereof and shall supersede all previous negotiations, commitments and writings with respect to such subject matter. In the event of any inconsistency between this Agreement and any Schedule, the Schedule shall prevail.

**Section 5.2 Ancillary Agreements.** Except as may be expressly stated herein, this Agreement is not intended to address, and should not be interpreted to address, the matters specifically and expressly covered by the Ancillary Agreements.

**Section 5.3 Counterparts.** This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more such counterparts have been signed by each of the Parties and delivered to the other Party.

**Section 5.4 Survival of Agreements.** Except as otherwise contemplated by this Agreement, all covenants and agreements of the Parties contained in this Agreement shall survive the Distribution Date.

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**Section 5.5 Distribution Expenses.** Except as otherwise set forth in this Agreement or any Ancillary Agreement, all costs and expenses incurred on or prior to the Distribution Date (whether or not paid on or prior to the Distribution Date) in connection with the preparation, execution, delivery, printing and implementation of this Agreement and any Ancillary Agreement, the Information Statement and the Registration Statement, and the Distribution and the consummation of the transactions contemplated thereby, shall be charged to and paid by MSG Entertainment. Such expenses shall be deemed to be MSG Entertainment Liabilities. Except as otherwise set forth in this Agreement or any Ancillary Agreement, each Party shall bear its own costs and expenses incurred after the Distribution Date. Any amount or expense to be paid or reimbursed by any Party to any other Party shall be so paid or reimbursed promptly after the existence and amount of such obligation is determined and written demand therefor is made.

**Section 5.6 Notices.** All notices and other communications hereunder shall be in writing, shall reference this Agreement and shall be hand delivered or mailed by registered or certified mail (return receipt requested) to the Parties at the following addresses (or at such other addresses for a Party as shall be specified by like notice) and will be deemed given on the date on which such notice is received:

To MSG Entertainment:

The Madison Square Garden Entertainment Corp. (or, after the

applicable name change, MSG Sphere Corp.)

Two Penn Plaza

New York, New York 10121

Attention: General Counsel

To Spinco:

MSGE Spinco, Inc. (or, after the applicable name change, Madison

Square Garden Entertainment Corp.)

Two Penn Plaza

New York, New York 10121

Attention: General Counsel

**Section 5.7 Waivers.** The failure of any Party to require strict performance by any other Party of any provision in this Agreement will not waive or diminish that Party's right to demand strict performance thereafter of that or any other provision hereof.

**Section 5.8 Amendments.** Subject to the terms of Sections 5.11 hereof, this Agreement may not be modified or amended except by an agreement in writing signed by each of the Parties.

**Section 5.9 Assignment.** This Agreement shall not be assignable, in whole or in part, directly or indirectly, by any Party without the prior written consent of the other Party, and any attempt to assign any rights or obligations arising under this Agreement without such consent

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shall be void; <u>provided</u> that either Party may assign this Agreement to a purchaser (by merger, sale of assets or otherwise) of all or substantially all of the properties and assets of such Party so long as such purchaser expressly assumes, in a written instrument in form reasonably satisfactory to the non-assigning Party, the due and punctual performance or observance of every agreement and covenant of this Agreement on the part of the assigning Party to be performed or observed. Any assignment in violation of the provisions of this Section 5.9 shall be void.

**Section 5.10 Successors and Assigns.** The provisions of this Agreement shall be binding upon, inure to the benefit of and be enforceable by the Parties and their respective successors and permitted assigns.

**Section 5.11 Termination.** This Agreement (including Article III hereof) may be terminated and the Distribution may be amended, modified or abandoned at any time prior to the Distribution by and in the sole discretion of MSG Entertainment without the approval of Spinco or the stockholders of MSG Entertainment. In the event of such termination, no Party shall have any liability of any kind to any other Party or any other Person. After the Distribution, this Agreement may not be terminated except by an agreement in writing signed by the Parties; <u>provided</u>, however, that Article III shall not be terminated or amended after the Distribution in respect of a Third Party beneficiary thereto without the consent of such Person.

**Section 5.12 Subsidiaries.** Each of the Parties shall cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth herein to be performed by any entity that is contemplated to be a Subsidiary of such Party after the Distribution Date.

**Section 5.13 Third-Party Beneficiaries.** Except as provided in Article III relating to Indemnitees, this Agreement is solely for the benefit of the Parties and their respective Subsidiaries and Affiliates and should not be deemed to confer upon any other Person any remedy, claim, liability, reimbursement, cause of action or other right in excess of those existing without reference to this Agreement.

**Section 5.14 Title and Headings.** Titles and headings to Sections herein are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.

**Section 5.15 Schedules.** The Schedules shall be construed with and as an integral part of this Agreement to the same extent (except as set forth in the last sentence of Section 5.1) as if the same had been set forth verbatim herein.

**Section 5.16 Governing Law.** THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK.

**Section 5.17 Waiver of Jury Trial.** The Parties hereby irrevocably waive any and all right to trial by jury in any legal proceeding arising out of or related to this Agreement.

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**Section 5.18 Specific Performance.** From and after the Distribution, in the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, the Parties agree that the Party to this Agreement who is or is to be thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief of its rights under this Agreement, in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative. The Parties agree that, from and after the Distribution, the remedies at law for any breach or threatened breach of this Agreement, including monetary damages, are inadequate compensation for any loss, that any defense in any action for specific performance that a remedy at law would be adequate is hereby waived, and that any requirements for the securing or posting of any bond with such remedy are hereby waived.

**Section 5.19 Severability.** In the event any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired thereby. The Parties shall endeavor in good faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions, the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

*[Signature page follows]* 

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IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the day and year first above written.

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| | |
|:---|:---|
| MADISON SQUARE GARDEN ENTERTAINMENT CORP.<br> (to be renamed MSG Sphere Corp.) | MADISON SQUARE GARDEN ENTERTAINMENT CORP.<br> (to be renamed MSG Sphere Corp.) |
| By: |  |
|  | Name: |
|  | Title: |

---

---

| | |
|:---|:---|
| MSGE SPINCO, INC.<br> (to be renamed Madison Square Garden Entertainment Corp.) | MSGE SPINCO, INC.<br> (to be renamed Madison Square Garden Entertainment Corp.) |
| By: |  |
|  | Name: |
|  | Title: |

---

## Exhibit 2.2

***Exhibit 2.2***

**CONTRIBUTION AGREEMENT** 

**BY AND AMONG** 

**MADISON SQUARE GARDEN ENTERTAINMENT CORP.** 

**(TO BE RENAMED MSG SPHERE CORP.),** 

**MSG ENTERTAINMENT GROUP, LLC (TO BE RENAMED MSG SPHERE GROUP, LLC)** 

**AND** 

**MSGE SPINCO, INC.** 

**(TO BE RENAMED MADISON SQUARE GARDEN ENTERTAINMENT CORP.)** 

**Dated as of [**●**], 2023** 

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CONTRIBUTION AGREEMENT (this "<u>Agreement</u>"), dated as of [●], 2023, by and among MADISON SQUARE GARDEN ENTERTAINMENT CORP. (to be renamed MSG Sphere Corp. at the Effective Time), a Delaware corporation ("<u>MSG Entertainment</u>"), MSG ENTERTAINMENT GROUP, LLC (to be renamed MSG SPHERE GROUP, LLC), a Delaware limited liability company and a direct wholly-owned subsidiary of MSG Entertainment ("<u>MSGEG</u>"), and MSGE SPINCO, INC. (to be renamed Madison Square Garden Entertainment Corp. at the Effective Time), a Delaware corporation ("<u>Spinco</u>").

<u>RECITALS</u> 

WHEREAS, MSG Entertainment and Spinco are parties to a Distribution Agreement, dated as of [●], 2023 (the "<u>Distribution Agreement</u>");

WHEREAS, pursuant to the Distribution Agreement, MSG Entertainment intends to distribute to its stockholders approximately 67% of Spinco's common stock (the "<u>Distribution</u>");

WHEREAS, pursuant to the Distribution Agreement, the parties wish to cause the transactions described on Annex I (the "<u>Reorganization Transactions</u>") to be completed including, without limitation, (a) the assignment by MSGEG or its subsidiaries to MSG Entertainment or its subsidiaries of all of the issued and outstanding common stock, partnership interests and membership interests of the entities and assets and liabilities as reflected in Section A of Annex I (such assignments are referred to herein as the "<u>Sphere Assignments</u>") and (b) the assignment by MSG Entertainment to Spinco or its subsidiaries of all of the issued and outstanding common stock, partnership interests and membership interests of the entities and assets and liabilities as reflected in Section B of Annex I (such assignments are referred to herein as the "<u>Entertainment Assignments</u>" and, together with the Sphere Assignments, the "<u>Assignments</u>");

WHEREAS, in consideration of the Entertainment Assignments, Spinco wishes to issue to MSG Entertainment, and MSG Entertainment wishes to receive, 900 shares of newly issued Common Stock, par value $0.01 per share, of Spinco (the "<u>Spinco Stock</u>");

WHEREAS, MSG Entertainment, in its capacity as the sole stockholder of Spinco, has approved such issuance of Spinco Stock for purposes of exempting such acquisition under Rule 16b-3(d) under the Securities Exchange Act of 1934, as amended;

WHEREAS, the parties hereto intend for Spinco to own, immediately following the Distribution, the business and assets described in Spinco's registration statement on Form 10 (the "<u>Form 10</u>") filed with the Securities and Exchange Commission as being owned, directly or indirectly, by Spinco (the "<u>Spinco Assets</u>");

WHEREAS, the parties hereto intend for Spinco to assume and be responsible for, directly or indirectly, the liabilities described in the Form 10 as being liabilities, directly or indirectly, of Spinco (the "<u>Spinco Liabilities</u>");

WHEREAS, in order to complete the Reorganization Transactions and the Distribution, the parties desire to enter into this Agreement;

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WHERAS, this Agreement, together with the other documents implementing the Distribution and Reorganization Transactions, is intended to be, and is hereby adopted as, a "plan of reorganization" within the meaning of Treas. Reg. section 1.368-2(g); and

WHEREAS, terms used but not defined herein have the meanings assigned thereto in the Distribution Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are acknowledged by this Agreement, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Assignments</u>. Subject to the terms of the Distribution Agreement, MSG Entertainment hereby agrees to transfer and assign to Spinco, or to cause its applicable subsidiaries or affiliates to transfer and assign to Spinco, or its applicable subsidiaries or affiliates, all of the Spinco Assets, and Spinco agrees to assume, or to cause its applicable subsidiaries or affiliates to assume, the Spinco Liabilities. These transfers, assignments and assumptions are effective at or prior to the Effective Time. In furtherance of the foregoing, MSG Entertainment, MSGEG and Spinco shall take all actions necessary to cause the completion of the Reorganization Transactions to which it or any of its subsidiaries is a party. In furtherance thereof, prior to the Effective Time, (a) MSGEG shall make the Sphere Assignments to MSG Entertainment or its subsidiaries, and MSG Entertainment or its subsidiaries shall accept such Sphere Assignments from MSGEG, and (b) MSG Entertainment shall make the Entertainment Assignments to Spinco or its subsidiaries, and Spinco or its subsidiaries shall accept such Entertainment Assignments from MSG Entertainment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Stock Issuance</u>. Spinco hereby agrees to issue to MSG Entertainment, prior to the Effective Time, the Spinco Stock, [in uncertificated form,] pursuant to the Assignment Agreement and Stock Power, dated the date of this Agreement, between MSG Entertainment and Spinco. MSG acknowledges and agrees that the [uncertificated] Spinco Stock shall be subject to the terms of the legends set forth on Annex II hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Disclosure</u>. Except as expressly provided in the Distribution Agreement or in any Ancillary Agreement, (i) none of the parties is making any representation to any other party in connection with the Reorganization Transactions, the Assignments or the Spinco Stock issuance, and (ii) Spinco is not directly assuming any liabilities under the Reorganization Transactions or the Entertainment Assignments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Further Assurances</u>. Each party hereto agrees to take such further actions as may be reasonably necessary to effect the transactions contemplated by this Agreement. Without limiting the foregoing sentence, the parties will take any such steps as are necessary to complete the transfer to Spinco, or its applicable subsidiaries or affiliates, of the Spinco Assets and the assumption by Spinco, or its applicable subsidiaries or affiliates, of the Spinco Liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Complete Agreement; Construction</u>. This Agreement, including the Annexes hereto, shall constitute the entire agreement between the parties with respect to the subject matter hereof and shall supersede all previous negotiations, commitments and writings with respect to such subject matter. In the event of any inconsistency between this Agreement and any Annex, the Annex shall prevail.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Ancillary Agreements</u>. This Agreement is not intended to address, and should not be interpreted to address, the matters specifically and expressly covered by the Distribution Agreement or the Ancillary Agreements. Without limiting the foregoing sentence, the provisions of Sections 2.13 and 2.14 of the Distribution Agreement shall apply to the Reorganization Transaction and the Assignments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Counterparts</u>. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more such counterparts have been signed by each of the parties and delivered to the other parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Survival of Agreements</u>. Except as otherwise contemplated by this Agreement, all covenants and agreements of the parties contained in this Agreement shall survive the Distribution Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Notices</u>. All notices and other communications hereunder shall be in writing, shall reference this Agreement and shall be hand delivered or mailed by registered or certified mail (return receipt requested) to the parties at the following addresses (or at such other addresses for a party as shall be specified by like notice) and will be deemed given on the date on which such notice is received:

To MSG Entertainment and MSGEG:

Madison Square Garden Entertainment Corp. (or, after the applicable name change, MSG Sphere Corp.)

Two Penn Plaza

New York, New York 10121

Attention: General Counsel

To Spinco:

MSGE Spinco, Inc. (or, after the applicable name change, Madison Square Garden Entertainment Corp.)

Two Penn Plaza

New York, New York 10121

Attention: General Counsel

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Waivers</u>. The failure of any party to require strict performance by any other party of any provision in this Agreement will not waive or diminish that party's right to demand strict performance thereafter of that or any other provision hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Amendments</u>. Subject to the terms of Section 14 hereof, this Agreement may not be modified or amended except by an agreement in writing signed by each of the parties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Assignment</u>. This Agreement shall not be assignable, in whole or in part, directly or indirectly, by any party without the prior written consent of the other parties, and any attempt to assign any rights or obligations arising under this Agreement without such consent shall be void; <u>provided</u> that any party may assign this Agreement to a purchaser of all or substantially all of the properties and assets of such party (whether by sale, merger or otherwise) so long as such purchaser expressly assumes, in a written instrument in form reasonably satisfactory to the non-assigning parties, the due and punctual performance or observance of every agreement and covenant of this Agreement on the part of the assigning party to be performed or observed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Successors and Assigns</u>. The provisions to this Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties and their respective successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Termination</u>. This Agreement may be terminated at any time prior to the Distribution by and in the sole discretion of MSG Entertainment without the approval of MSGEG, Spinco or the stockholders of MSG Entertainment. In the event of such termination, no party shall have any liability of any kind to any other party or any other Person. After the Distribution, this Agreement may not be terminated except by an agreement in writing signed by the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Third-Party Beneficiaries</u>. This Agreement is solely for the benefit of the parties and should not be deemed to confer upon any other Person any remedy, claim, liability, reimbursement, cause of action or other right in excess of those existing without reference to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Title and Headings</u>. Titles and headings to Sections herein are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Annexes</u>. The Annexes shall be construed with and as an integral part of this Agreement to the same extent as if the same had been set forth verbatim herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Governing Law</u>. This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed in the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Waiver of Jury Trial</u>. The parties hereby irrevocably waive any and all right to trial by jury in any legal proceeding arising out of or related to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Specific Performance</u>. From and after the Distribution, in the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, the parties agree that the party to this Agreement who is or is to be thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief of its rights under this Agreement, in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative. The parties agree that, from and after the Distribution, the remedies at law for any breach or threatened breach of this Agreement,

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including monetary damages, are inadequate compensation for any loss, that any defense in any action for specific performance that a remedy at law would be adequate is hereby waived, and that any requirements for the securing or posting of any bond with such remedy are hereby waived.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Severability</u>. In the event any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired thereby. The parties shall endeavor in good faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions, the economic effect of which comes as close as possible to that of illegal or unenforceable provisions.

[*Signature page follows*]

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

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| | |
|:---|:---|
| MADISON SQUARE GARDEN ENTERTAINMENT CORP.<br> (to be renamed MSG Sphere Corp.) | MADISON SQUARE GARDEN ENTERTAINMENT CORP.<br> (to be renamed MSG Sphere Corp.) |
| By: |  |
|  | Name: |
|  | Title: |

---

---

| | |
|:---|:---|
| [MSG ENTERTAINMENT GROUP, LLC<br> (to be renamed MSG Sphere Group, LLC)] | [MSG ENTERTAINMENT GROUP, LLC<br> (to be renamed MSG Sphere Group, LLC)] |
| By: |  |
|  | Name: |
|  | Title: |

---

---

| | |
|:---|:---|
| MSGE SPINCO, INC.<br> (to be renamed Madison Square Garden Entertainment Corp.) | MSGE SPINCO, INC.<br> (to be renamed Madison Square Garden Entertainment Corp.) |
| By: |  |
|  | Name: |
|  | Title: |

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## Exhibit 3.1

**Exhibit 3.1** 

**AMENDED AND RESTATED CERTIFICATE OF** 

**INCORPORATION** 

**OF** 

**MSGE SPINCO, INC.** 

**Pursuant to Sections 241 and 245 of** 

**The General Corporation Law of the State of Delaware** 

MSGE Spinco, Inc., a Delaware corporation, hereby certifies as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The name of the corporation is MSGE Spinco, Inc. The date of filing of its original certificate of incorporation with the Secretary of State of the State of Delaware was September 15, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. This amended and restated certificate of incorporation amends, restates and integrates the provisions of the certificate of incorporation of said corporation and has been duly adopted in accordance with the provisions of Section 241 of the General Corporation Law of the State of Delaware by adoption of the amendment by said corporation's sole director. MSGE Spinco, Inc. has not received any payment for any of its stock to date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The text of the certificate of incorporation is hereby amended and restated to read herein as set forth in full:

**"AMENDED AND RESTATED CERTIFICATE OF INCORPORATION** 

**OF** 

**MSGE SPINCO, INC.** 

FIRST. The name of the corporation (hereinafter called the "Corporation") is MSGE Spinco, Inc.

SECOND. The name and address, including street, number, city and county, of the registered office and registered agent for service of process of the Corporation in the State of Delaware is Corporation Service Company, 251 Little Falls Drive, City of Wilmington, County of New Castle, 19808.

THIRD. The nature of the business and of the purposes to be conducted and promoted by the Corporation are to conduct any lawful business, to promote any lawful purpose, and to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of the State of Delaware.

FOURTH. The aggregate number of shares of capital stock which the Corporation shall have authority to issue shall be 1,000 shares of Common Stock and the par value of each of such shares is $0.01.

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FIFTH. The management of the business and the conduct of the affairs of the Corporation, including the election of the Executive Chairman, the Chief Executive Officer, the President, the Treasurer, the Secretary, and other principal officers of the Corporation, shall be vested in its Board of Directors. The number of directors of the Corporation shall be fixed by the by-laws of the Corporation and may be altered from time to time as provided therein. A director shall be elected to hold office until the expiration of the term for which such person is elected, and until such person's successor shall be duly elected and qualified.

SIXTH. The name and mailing address of the incorporator are as follows:

Mark C. Cresitello

Two Pennsylvania Plaza

New York, NY 10121

SEVENTH. Whenever a compromise or arrangement is proposed between the Corporation and its creditors or any class of them and/or between the Corporation and its stockholders or any class of them, any court of equitable jurisdiction within the State of Delaware may, on the application in a summary way of the Corporation or any creditor or stockholder thereof or on the application of any receiver or receivers appointed for the Corporation under the provisions of Section 291 of the General Corporation Law of the State of Delaware or on the application of trustees in dissolution or of any receiver or receivers appointed for the Corporation under the provisions of Section 279 of the General Corporation Law of the State of Delaware order a meeting of the creditors or class of creditors, and/or the stockholders or class of stockholders of the Corporation, as the case may be, to be summoned in such manner as the said court directs. If a majority in number representing three-fourths in value of the creditors or class of creditors, and/or of the stockholders or class of stockholders of the Corporation, as the case may be, agree to any compromise or arrangement and to any reorganization of the Corporation as a consequence of such compromise or arrangement, the said compromise or arrangement and the said reorganization shall, if sanctioned by the court to which the said application has been made, be binding on all the creditors or class of creditors, and/or on all the stockholders or class of stockholders, of the Corporation, as the case may be, and also on the Corporation.

EIGHTH. The power to make, alter, or repeal the by-laws, and to adopt any new by-law, shall be vested in the Board of Directors and the stockholders entitled to vote in the election of directors.

NINTH. The Corporation shall, to the fullest extent permitted by Section 145 of the General Corporation Law of the State of Delaware, as the same may be amended and supplemented, or by any successor thereto, indemnify any and all persons whom it shall have power to indemnify under said section from and against any and all of the expenses, liabilities or other matters referred to in or covered by said section. Such right to indemnification shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person. The indemnification provided for herein shall not be deemed exclusive of any other rights to which those seeking indemnification may be entitled under any by-law, agreement, vote of stockholders or disinterested directors or otherwise. No amendment, modification or repeal of this Article NINTH shall adversely affect any right or protection of a person that exists at the time of such amendment, modification or repeal.

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TENTH. No director or officer of the Corporation shall be personally liable to the Corporation or its stockholders for monetary damages for breach of fiduciary duty as a director or officer, as applicable, except that this paragraph shall not eliminate or limit the liability of a director or officer (A) for any breach of the director's or officer's duty of loyalty to the Corporation or its stockholders, (B) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (C) under Section 174 of the General Corporation Law of the State of Delaware, (D) for any transaction from which the director or officer derived an improper personal benefit, or (E) with respect to an officer only, in any action by or in the right of the corporation. No amendment, modification or repeal of this Article TENTH shall adversely affect any right or protection of a director or officer that exists at the time of such amendment, modification or repeal.

ELEVENTH. No contract or transaction between the Corporation and one or more of its directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of its directors or officers are directors or officers, or have a financial interest, shall be void or voidable solely for this reason, or solely because the director or officer is present at or participates in the meeting of the Board of Directors or committee thereof which authorizes the contract or transaction, or solely because such director's or officer's votes are counted for such purpose, if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The material facts as to the director's or officer's relationship or interest and as to the contract or transaction are disclosed or are known to the Board of Directors or the committee, and the Board of Directors or committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though the disinterested directors be less than a quorum; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The material facts as to the director's or officer's relationship or interest and as to the contract or transaction are disclosed or are known to the stockholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the stockholders; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The contract or transaction is fair as to the Corporation as of the time it is authorized, approved or ratified by the Board of Directors, a committee thereof, or the stockholders.

Common or interested directors may be counted in the presence of a quorum at a meeting of the Board of Directors or of a committee which authorizes the contract or transaction."

[*Signature page follows*]

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IN WITNESS WHEREOF I have signed this amended and restated certificate of incorporations on this 20<sup>th</sup> day of December 2022

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| | |
|:---|:---|
| /s/ Mark C. Cresitello | /s/ Mark C. Cresitello |
| Name: | Mark C. Cresitello |
| Title: | Director |

---

## Exhibit 3.3

**Exhibit 3.3** 

**BY-LAWS** 

**OF** 

**MSGE SPINCO, INC.** 

(a Delaware corporation hereinafter called the "Corporation")

ARTICLE I

<u>Stockholders</u> 

Section 1.1 <u>Annual Meetings</u>. An annual meeting of stockholders shall be held for the election of directors at such date, time and place, either within or without the State of Delaware, as may be designated by the board of directors of the Corporation (the "Board of Directors" or "Board") from time to time. Any other proper business may be transacted at the annual meeting.

Section 1.2 <u>Special Meetings</u>. Special meetings of stockholders may be called at any time by the Chairman of the Board, if any, the Vice Chairman of the Board, if any, the President, if any, or the Board of Directors, to be held at such date, time and place either within or without the State of Delaware as may be stated in the notice of the meeting.

Section 1.3 <u>Notice of Meetings</u>. Whenever stockholders are required or permitted to take any action at a meeting, a written notice of the meeting shall be given which shall state the place, date and hour of the meeting, and, in the case of a special meeting, the purpose or purposes for which the meeting is called. Unless otherwise provided by law, the written notice of any meeting shall be given not less than ten nor more than sixty days before the date of the meeting to each stockholder entitled to vote at such meeting. If mailed, such notice shall be deemed to be given when deposited in the United States mail, postage paid, directed to the stockholder at such stockholder's address as it appears on the records of the Corporation.

Section 1.4 <u>Adjournments</u>. Any meeting of stockholders, annual or special, may adjourn from time to time to reconvene at the same or some other place, and notice need not be given of any such adjourned meeting if the time and place thereof are announced at the meeting, at which the adjournment is taken. At the adjournment meeting the Corporation may transact any business which might have been transacted at the original meeting. If the adjournment is for more than thirty days, or, if after the adjournment, a new record date is fixed for the adjourned meeting, a notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting.

Section 1.5 <u>Quorum</u>. At each meeting of stockholders, except where otherwise provided by law or the certificate of incorporation or these by-laws, the holders of a majority of the outstanding shares of each class of stock entitled to vote at the meeting, present in person or represented by proxy, shall constitute a quorum. For purposes of the foregoing, two or more classes or series of stock shall be considered a single class if the holders thereof are entitled to vote together as a single class at the meeting. In the absence of a quorum the stockholders so

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present may, by majority vote, adjourn the meeting from time to time in the manner provided by Section 1.4 of these by-laws until a quorum shall attend. Shares of its own capital stock belonging on the record date for the meeting to the Corporation or to another corporation, if a majority of the shares entitled to vote in the election of directors of such other corporation is held, directly or indirectly, by the Corporation, shall neither be entitled to vote nor be counted for quorum purposes; provided, however, that the foregoing shall not limit the right of the Corporation to vote stock, including but not limited to, its own stock, held by it in a fiduciary capacity.

Section 1.6 <u>Organization</u>. Meetings of stockholders shall be presided over by the Chairman of the Board, if any, or in the absence of the Chairman of the Board, by the Vice Chairman of the Board, if any, or in the absence of the Vice Chairman of the Board, by the President, or in the absence of the President by a Vice President, or in the absence of the foregoing persons by a chairman designated by the Board of Directors, or in the absence of such designation by a chairman chosen at the meeting. The Secretary shall act as secretary of the meeting, or in the absence of the Secretary, by an Assistant Secretary, or in their absence the chairman of the meeting may appoint any person to act as secretary of the meeting.

Section 1.7 <u>Voting; Proxies</u>. Unless otherwise provided in the certificate of incorporation, each stockholder entitled to vote at any meeting of stockholders shall be entitled to one vote for each share of stock held by such stockholder which has voting power upon the matter in question. Each stockholder entitled to vote at a meeting of stockholders or to express consent or dissent to corporate action in writing without a meeting may authorize another person or persons to act for such stockholder by proxy, but no such proxy shall be voted or acted upon after three years from its date, unless the proxy provides for a longer period. A duly executed proxy shall be irrevocable if it states that it is irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. A stockholder may revoke any proxy which is not irrevocable by attending the meeting and voting in person or by filing an instrument in writing revoking the proxy or another duly executed proxy bearing a later date with the Secretary of the Corporation. Voting at meetings of stockholders need not be by written ballot and need not be conducted by inspectors unless the holders of a majority of the outstanding shares of all classes of stock entitled to vote thereon present in person or by proxy at such meeting shall so determine. At all meetings of stockholders for the election of directors, a plurality of the votes cast shall be sufficient to elect the directors. With respect to other matters, unless otherwise provided by law or by the certificate of incorporation or these by-laws, the affirmative vote of the holders of a majority of the shares of all classes of stock present in person or represented by proxy at the meeting and entitled to vote on the subject matter shall be the act of the stockholders, provided that (except as otherwise required by law or by the certificate of incorporation) the Board of Directors may require a larger vote upon any such matter. Where a separate vote by class is required, the affirmative vote of the holders of a majority of the shares of each class present in person or represented by proxy at the meeting shall be the act of such class, except as otherwise provided by law or by the certificate of incorporation or these by-laws.

Section 1.8 <u>Fixing Date for Determination of Stockholders of Record</u>. In order that the Corporation may determine the stockholders entitled to notice of, or to vote at, any meeting of stockholders or any adjournment thereof, or to express consent to corporate action in writing without a meeting, or entitled to receive payment of any dividend or other distribution or

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allotment of any rights, or entitled to exercise any right in respect of any change, conversion or exchange of stock or for the purpose of any other lawful action, the Board of Directors may fix, in advance, a record date, which shall not be less than ten nor more than sixty days before the date of such meeting, nor more than sixty days prior to any other action. If no record date is fixed: (1) the record date for determining stockholders entitled to notice of or to vote at a meeting of stockholders shall be at the close of business on the day next preceding the day on which the meeting is held; (2) the record date for determining stockholders entitled to express consent to corporate action in writing without a meeting, when no prior action by the Board is necessary, shall be the day on which the first written consent is expressed; and (3) the record date for determining stockholders for any other purpose shall be at the close of business on the day on which the Board adopts the resolution relating thereto. A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; provided, however, that the Board may fix a new record date for the adjourned meeting.

Section 1.9 <u>List of Stockholders Entitled to Vote</u>. The Secretary shall prepare and make, at least ten days before every meeting of stockholders, a complete list of the stockholders entitled to vote at the meeting, arranged in alphabetical order, and showing the address of each stockholder and the number of shares registered in the name of each stockholder. Such list shall be open to the examination of any stockholder, for any purpose germane to the meeting, during ordinary business hours, for a period of at least ten days prior to the meeting, either at a place within the city where the meeting is to be held, which place shall be specified in the notice of the meeting, or, if not so specified, at the place where the meeting is to be held. The list shall also be produced and kept at the time and place of the meeting during the whole time thereof and may be inspected by any stockholder who is present.

Section 1.10 <u>Consent of Stockholders in Lieu of Meeting</u>. Unless otherwise provided in the certificate of incorporation, any action required by law to be taken at any annual or special meeting of stockholders of the Corporation, or any action which may be taken at any annual or special meeting of such stockholders, may be taken without a meeting, without prior notice and without a vote, if a consent in writing, setting forth the action so taken, shall be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those stockholders who have not consented in writing.

ARTICLE II

<u>Board of Directors</u> 

Section 2.1 <u>Powers; Numbers; Qualifications</u>. The business and affairs of the Corporation shall be managed by or under the direction of the Board of Directors, except as may be otherwise provided by law or in the certificate of incorporation. The Board shall consist of one or more members, the number thereof to be determined from time to time by the Board. Directors need not be stockholders.

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Section 2.2 <u>Election; Term of Office; Resignation; Removal; Vacancies</u>. Each director shall hold office until the annual meeting of stockholders next succeeding his or her election and until his or her successor is elected and qualified or until his or her earlier resignation or removal. Any director may resign at any time upon written notice to the Board of Directors or to the President or the Secretary of the Corporation. Such resignation shall take effect at the time specified therein, and unless otherwise specified therein no acceptance of such resignation shall be necessary to make it effective. Any director or the entire Board may be removed, with or without cause, by the holders of a majority of the shares then entitled to vote at an election of directors. Unless otherwise provided in the certificate of incorporation or these by-laws, vacancies and newly created directorships resulting from any increase in the authorized number of directors or from any other cause may be filled by a majority of the directors then in office, although less than a quorum, or by the sole remaining director.

Section 2.3 <u>Regular Meetings</u>. Regular meetings of the Board of Directors may be held at such places within or without the State of Delaware and at such times as the Board may from time to time determine, and if so determined notice thereof need not be given.

Section 2.4 <u>Special Meetings</u>. Special meetings of the Board of Directors may be held at any time or place within or without the State of Delaware whenever called by the Chairman of the Board, if any, by the Vice Chairman of the Board, if any, by the President or by any two directors. Reasonable notice thereof shall be given by the person or persons calling the meeting.

Section 2.5 <u>Participation in Meetings by Conference Telephone Permitted</u>. Unless otherwise restricted by the certificate of incorporation or these by-laws, members of the Board of Directors, or any committee designated by the Board, may participate in a meeting of the Board or of such committee, as the case may be, by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participating in a meeting pursuant to this Section 2.5 of the by-laws shall constitute presence in person at such meeting.

Section 2.6 <u>Quorum; Vote Required for Action</u>. At all meetings of the Board of Directors, one-third of the entire Board shall constitute a quorum for the transaction of business. The vote of a majority of the directors present at a meeting at which a quorum is present shall be the act of the Board unless the certificate of incorporation or these by-laws shall require a vote of a greater number. In case at any meeting of the Board a quorum shall not be present, the members of the Board present may adjourn the meeting from time to time until a quorum shall attend.

Section 2.7 <u>Organization</u>. Meetings of the Board of Directors shall be presided over by the Chairman of the Board, if any, or in the absence of the Chairman of the Board by the Vice Chairman of the Board, if any, or in the absence of the Vice Chairman of the Board by the President, or in their absence by a chairman chosen at the meeting. The Secretary, or in the absence of the Secretary an Assistant Secretary, shall act as secretary of the meeting, but in the absence of the Secretary and any Assistant Secretary, the chairman of the meeting may appoint any person to act as secretary of the meeting.

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Section 2.8 <u>Action by Directors Without a Meeting</u>. Unless otherwise restricted by the certificate of incorporation or these by-laws, any action required or permitted to be taken at any meeting of the Board of Directors, or of any committee thereof, may be taken without a meeting if all members of the Board or of such committee, as the case may be, consent thereto in writing, and the writing or writings are filed with the minutes of proceedings of the Board or committee.

Section 2.9 <u>Compensation of Directors</u>. The Board of Directors shall have the authority to fix the compensation of directors.

ARTICLE III

<u>Committees</u> 

Section 3.1 <u>Committees</u>. The Board of Directors may, by resolution passed by a majority of the whole Board, designate one or more committees, each committee to consist of one or more of the directors of the Corporation. The Board may designate one or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. In the absence or disqualification of a member of a committee, the member or members thereof present at any meeting and not disqualified from voting, whether or not such member or members constitute a quorum, may unanimously appoint another member of the Board to act at the meeting in place of any such absent or disqualified member. Any such committee, to the extent provided in the resolution of the Board, shall have and may exercise all the powers and authority of the Board in the management of the business and affairs of the Corporation, except as limited by the General Corporation Law of the State of Delaware (the "General Corporation Law").

Section 3.2 <u>Committee Rules</u>. Unless the Board of Directors otherwise provides, each committee designated by the Board may adopt, amend and repeal rules for the conduct of its business. In the absence of a provision by the Board or a provision in the rules of such committee to the contrary, a majority of the entire authorized number of members of such committee shall constitute a quorum for the transaction of business, the vote of a majority of the members present at a meeting at the time of such vote if a quorum is then present shall be the act of such committee, and in other respects each committee shall conduct its business in the same manner as the Board conducts its business pursuant to Article II of these by-laws.

ARTICLE IV

<u>Officers</u> 

Section 4.1 <u>Officers; Election</u>. As soon as practicable after the annual meeting of stockholders in each year, the Board of Directors shall elect an Executive Chairman, a Chief Executive Officer, a President and a Secretary, and it may, if it so determines, elect from among its members a Chairman of the Board and a Vice Chairman of the Board. The Board may also elect one or more Vice Presidents, one or more Assistant Vice Presidents, one or more Assistant Secretaries, a Treasurer and one or more Assistant Treasurers and such other officers as the Board may deem desirable or appropriate and may give any of them such further designations or alternate titles as it considered desirable. Any number of offices may be held by the same person. References herein to the "Chairman of the Board" shall be deemed to refer to the "Executive Chairman", if any, and the Chairman of the Board, if any.

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Section 4.2 <u>Term of Office; Resignation; Removal; Vacancies</u>. Except as otherwise provided in the resolution of the Board of Directors electing any officer, each officer shall hold office until the first meeting of the Board after the annual meeting of stockholders next succeeding his or her election, and until his or her earlier resignation or removal. Any officer may resign at any time upon written notice to the Board or to the President or the Secretary of the Corporation. Such resignation shall take effect at the time specified therein, and unless otherwise specified therein no acceptance of such resignation shall be necessary to make it effective. The Board may remove any officer within or without cause at any time. Any such removal shall be without prejudice to the contractual rights of such officer, if any, with the Corporation, but the election of an officer shall not of itself create contractual rights. Any vacancy occurring in any office of the Corporation by death, resignation, removal or otherwise, may be filled for the unexpired portion of the term of the Board at any regular or special meeting.

Section 4.3 <u>Authorities and Duties</u>. All officers, as between themselves and the Corporation, shall have such authority and duties as generally pertain to their respective offices, as well as such powers and duties as from time to time may be conferred by these by-laws, or, to the extent not so provided, by the Board of Directors. The Board may delegate to the Executive Chairman, if any, or to the Chief Executive Officer or President the power and authority to define the authority and duties of any or all of the other officers of the Corporation.

ARTICLE V

<u>Stock</u> 

Section 5.1 <u>Certificates; Uncertificated Shares</u>. The shares of stock in the Corporation shall be represented by certificates, provided that the Board may provide by resolution or resolutions that some or all of any or all classes or series of the Corporation's stock shall be uncertificated shares. Any such resolution shall not apply to shares represented by a certificate theretofore issued until such certificate is surrendered to the Corporation. Notwithstanding the adoption of such a resolution by the Board, to the extent, if any, required by applicable law, every holder of stock in the Corporation represented by a certificate shall be entitled to have a certificate signed by, or in the name of, the Corporation by the Chairman, Chief Executive Officer or Vice Chairman, if any, or by the President or a Vice President, and by the Treasurer or an Assistant Treasurer, or the Secretary or an Assistant Secretary, of the Corporation, certifying the number of shares owned by such holder in the Corporation. If such certificate is countersigned by a transfer agent other than the Corporation or its employee or by a registrar other than the Corporation or its employee, any other signature on the certificate may be a facsimile. In case any officer, transfer agent or registrar who has signed or whose facsimile signature has been placed upon a certificate shall have ceased to be such officer, transfer agent or registrar before such certificate is issued, it may be issued by the Corporation with the same effect as if such person were such officer, transfer agent or registrar at the date of issue.

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Whenever the Corporation shall be authorized to issue more than one class of stock or more than one series of any class of stock, and whenever the corporation shall issue any shares of its stock as partly paid stock, the certificates representing shares of any such class or series or of any such partly paid stock shall set forth thereon the statements prescribed by the General Corporation Law. Any restrictions on the transfer or registration of transfer of any shares of stock of any class or series shall be noted conspicuously on the certificate representing such shares. Within a reasonable time after the issuance or transfer of uncertificated stock, the Corporation shall send to the registered owner thereof a written notice containing the information required by law to be set forth or stated on certificates or a statement that the corporation will furnish without charge to each stockholder who so requests the powers, designations, preferences and relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations, or restrictions of such preferences and/or rights.

Section 5.2 <u>Lost, Stolen or Destroyed Stock Certificates; Issuance of New Certificates</u>. The Corporation may issue a new certificate of stock or uncertificated shares in place of any certificate theretofore issued by it, alleged to have been lost, stolen, or destroyed, and the Corporation may require the owner of any lost, stolen, or destroyed certificate, or such owner's legal representative, to give the Corporation a bond sufficient to indemnify the Corporation against any claim that may be made against it on account of the alleged loss, theft, or destruction of any such certificate or the issuance of any such new certificate.

ARTICLE VI

<u>Miscellaneous</u> 

Section 6.1 <u>Fiscal Year</u>. The fiscal year of the Corporation shall be the period of twelve calendar months ending on June 30 of each year unless otherwise determined by the Board of Directors.

Section 6.2 <u>Seal</u>. The Corporation may have a corporate seal which shall have the name of the Corporation inscribed thereon and shall be in such form as may be approved from time to time by the Board of Directors. The corporate seal may be used by causing it or a facsimile thereof to be impressed or affixed or in any other manner reproduced.

Section 6.3 <u>Waiver of Notice of Meetings of Stockholders, Directors and Committees</u>. Whenever notice is required to be given by law or under any provisions of the certificate of incorporation or these by-laws, a written waiver thereof, signed by the person entitled to notice, whether before or after the time stated therein, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at nor the purpose of any regular or special meeting of the stockholders, directors, or members of a committee of directors need be specified in any written waiver of notice unless so required by the certificate of incorporation or these by-laws.

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Section 6.4 <u>Indemnification of Directors, Officers and Employees</u>. (a) The corporation shall indemnify each person who was or is made a party or is threatened to be made a party to or is involved in any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (hereinafter a "proceeding"), by reason of the fact that he or she, or a person of whom he or she is the legal representative, is or was an incorporator, a director or officer of the corporation or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation or of a partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, whether the basis of such proceeding is alleged action in an official capacity as a director, officer, employee, incorporator or agent or alleged action in any other capacity while serving as a director, officer, employee, incorporator or agent, to the maximum extent authorized by the General Corporation Law, as the same exists or may hereafter be amended (but, in the case of any such amendment, only to the extent that such amendment permits the corporation to provide broader indemnification rights than said law permitted the corporation to provide prior to such amendment), against all expense, liability and loss (including attorney's fees, judgments, fines, ERISA excise taxes or penalties and amounts paid or to be paid in settlement) reasonably incurred by such person in connection with such proceeding. Such indemnification shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of his or her heirs, executors and administrators. The right to indemnification conferred in this Article shall be a contract right and shall include the right to be paid by the corporation the expenses incurred in defending any such proceeding in advance of its final disposition; provided that, if the General Corporation Law so requires, the payment of such expenses incurred by a director or officer in advance of the final disposition of a proceeding shall be made only upon receipt by the corporation of an undertaking by or on behalf of such person to repay all amounts so advanced if it shall ultimately be determined that such person is not entitled to be indemnified by the corporation as authorized in this Section 6.4 or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The right to indemnification and advancement of expenses conferred on any person by this Section 6.4 shall not limit the corporation from providing any other indemnification permitted by law nor shall it be deemed exclusive of any other right which such person may have or hereafter acquire under any statute, provision of the certificate of incorporation, by-law, agreement, vote of stockholders or disinterested directors or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The corporation may purchase and maintain insurance, at its expense, to protect itself and any director, officer, employee or agent of the corporation or another corporation, partnership, joint venture, or other enterprise against any expense, liability or loss, whether or not the corporation would have the power to indemnify such person against such expense, liability or loss under the General Corporation Law.

Section 6.5 <u>Interested Directors; Quorum</u>. No contract or transaction between the Corporation and one or more of its directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of its directors or officers are directors or officers, or have a financial interest, shall be void or voidable solely for this reason, or solely because the director or officer is present at or participates in the meeting of the Board of Directors or committee thereof which authorizes the contract or transaction, or solely because such director's or officer's votes are counted for such purpose, if: (1) the material facts as to the director's or officer's relationship or interest and as to the contract

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or transaction are disclosed or are known to the Board or the committee, and the Board or committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though the disinterested directors be less than a quorum; or (2) the material facts as to the director's or officer's relationship or interest and as to the contract or transaction are disclosed or are known to the stockholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the stockholders; or (3) the contract or transaction is fair as to the Corporation as of the time it is authorized, approved or ratified, by the Board, a committee thereof, or the stockholders. Common or interested directors may be counted in determining the presence of a quorum at a meeting of the Board or of a committee which authorizes the contract or transaction.

Section 6.6 <u>Form of Records</u>. Any records maintained by the Corporation in the regular course of its business, including its stock ledger, books of account and minute books, may be kept on, or be in the form of, any information storage device or method, provided that the records so kept can be converted into clearly legible form within a reasonable time. The Corporation shall so convert any records so kept upon the request of any person entitled to inspect such records in accordance with law.

Section 6.7 <u>Amendment of By-Laws</u>. These by-laws may be amended or repealed, and new by-laws adopted, by the Board of Directors, but the stockholders entitled to vote may adopt additional by-laws and may amend or repeal any by-law whether or not adopted by them.

## Exhibit 10.1

***Exhibit 10.1*** 

TRANSITION SERVICES AGREEMENT

BY AND BETWEEN

MSGE SPINCO, INC.

(TO BE RENAMED MADISON SQUARE GARDEN ENTERTAINMENT CORP.)

AND

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

(TO BE RENAMED MSG SPHERE CORP.)

dated as of [●], 2023

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**TABLE OF CONTENTS**

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| | |
|:---|:---|
|  | Page |
| ARTICLE I | ARTICLE I |
| DEFINITIONS | DEFINITIONS |
|  **Section 1.1. General** | 1 |
|  **Section 1.2. Reference; Interpretation** | 3 |
| ARTICLE II | ARTICLE II |
| SERVICES | SERVICES |
|  **Section 2.1. Services** | 3 |
|  **Section 2.2. Standard of Service** | 4 |
|  **Section 2.3. Additional Services** | 4 |
|  **Section 2.4. Representative** | 4 |
| ARTICLE III | ARTICLE III |
| LICENSES AND PERMITS | LICENSES AND PERMITS |
|  **Section 3.1. Licenses and Permits** | 5 |
| ARTICLE IV | ARTICLE IV |
| PAYMENT | PAYMENT |
|  **Section 4.1. General** | 5 |
|  **Section 4.2. Additional Expenses** | 5 |
|  **Section 4.3. Adjustments** | 6 |
|  **Section 4.4. Invoices** | 6 |
|  **Section 4.5. Failure to Pay** | 7 |
|  **Section 4.6. Termination of Services** | 7 |
| ARTICLE V | ARTICLE V |
| INSURANCE MATTERS | INSURANCE MATTERS |
|  **Section 5.1. Existing Insurance Polices** | 7 |
|  **Section 5.2. Disclaimer** | 7 |
|  **Section 5.3. Insurance Transition** | 7 |
|  **Section 5.4. Claims Made Policies** | 8 |
|  **Section 5.5. Post-Distribution Claims for Pre-Distribution Events** | 8 |
|  **Section 5.6. Audits and Adjustments** | 8 |
|  **Section 5.7. No Assignment or Waiver** | 9 |
|  **Section 5.8. No Limitation on Insurance** | 9 |
|  **Section 5.9. Scope** | 9 |

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| | |
|:---|:---|
| ARTICLE VI | ARTICLE VI |
| INDEMNIFICATION | INDEMNIFICATION |
|  **Section 6.1. Indemnification of Party Receiving Services** | 9 |
|  **Section 6.2. Indemnification of Party Providing Services** | 9 |
|  **Section 6.3. Third-Party Claims** | 10 |
|  **Section 6.4. Indemnification Payments** | 12 |
|  **Section 6.5. Survival** | 12 |
| ARTICLE VII | ARTICLE VII |
| COOPERATION; CONFIDENTIALITY; TITLE | COOPERATION; CONFIDENTIALITY; TITLE |
|  **Section 7.1. Good Faith Cooperation; Consents** | 12 |
|  **Section 7.2. Confidentiality** | 13 |
|  **Section 7.3. Internal Use; Title, Copies, Return** | 13 |
| ARTICLE VIII | ARTICLE VIII |
| TERM | TERM |
|  **Section 8.1. Duration** | 13 |
|  **Section 8.2. Early Termination by Entertainco** | 14 |
|  **Section 8.3. Early Termination by Sphereco** | 14 |
|  **Section 8.4. Termination of Sportco Services Agreement** | 15 |
|  **Section 8.5. Suspension Due to Force Majeure** | 15 |
|  **Section 8.6. Consequences of Termination** | 15 |
| ARTICLE IX | ARTICLE IX |
| RECORDS | RECORDS |
|  **Section 9.1. Maintenance of Records** | 16 |
| ARTICLE X | ARTICLE X |
| DISPUTE RESOLUTION | DISPUTE RESOLUTION |
|  **Section 10.1. Negotiation** | 16 |
|  **Section 10.2. Continuity of Service and Performance** | 16 |
|  **Section 10.3. Other Remedies** | 16 |
| ARTICLE XI | ARTICLE XI |
| NOTICES | NOTICES |
|  **Section 11.1. Notices** | 16 |

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–ii–

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| | |
|:---|:---|
| ARTICLE XII | ARTICLE XII |
| MISCELLANEOUS | MISCELLANEOUS |
|  **Section 12.1. Taxes** | 17 |
|  **Section 12.2. Relationship of Parties** | 17 |
|  **Section 12.3. Complete Agreement; Construction** | 18 |
|  **Section 12.4. Counterparts** | 18 |
|  **Section 12.5. Waivers** | 18 |
|  **Section 12.6. Amendments** | 18 |
|  **Section 12.7. Assignment** | 18 |
|  **Section 12.8. Successors and Assigns** | 18 |
|  **Section 12.9. Third-Party Beneficiaries** | 18 |
|  **Section 12.10. Governing Law** | 18 |
|  **Section 12.11. Waiver of Jury Trial** | 18 |
|  **Section 12.12. Specific Performance** | 18 |
|  **Section 12.13. Severability** | 19 |
|  **Section 12.14. Provisions Unaffected** | 19 |
|  **Section 12.15. No Presumption** | 19 |
|  **Schedule A Services Provided by Entertainco to Sphereco** | A-1 |
|  **Schedule A.1 IT Services Provided by Entertainco to Sphereco** | A.1-1 |
|  **Schedule B Services Provided by Sphereco to Entertainco** | B-1 |
|  **Schedule C Initial Representatives** | C-1 |
|  **Schedule D Existing Insurance Polices** | D-1 |

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Transition Services Agreement, dated as of [●], 2023 (this "<u>Agreement</u>"), between MSGE Spinco, Inc. (to be renamed Madison Square Garden Entertainment Corp., a Delaware corporation ("<u>Entertainco</u>"), and Madison Square Garden Entertainment Corp. (to be renamed MSG Sphere Corp.), a Delaware corporation ("<u>Sphereco</u>").

W I T N E S S E T H:

WHEREAS, Sphereco and Entertainco have entered into a Distribution Agreement, dated as of [●], 2023 (the "<u>Distribution Agreement</u>"), which sets forth the terms pursuant to which Sphereco will transfer certain assets to Entertainco and Sphereco will distribute the common stock of Entertainco to shareholders of Sphereco (the "<u>Distribution</u>"); and

WHEREAS, in connection with the Distribution, and in order to ensure an orderly transition under the Distribution Agreement, it will be necessary for each of the parties to provide to the other the Services described herein for a transitional period;

NOW, THEREFORE, the parties hereto, in consideration of the premises and the mutual covenants contained herein, agree as follows:

**ARTICLE I** 

**DEFINITIONS** 

**Section 1.1. General.** As used in this Agreement, the following terms have the respective meanings set forth below:

"<u>Action</u>" shall have the meaning assigned to that term in the Distribution Agreement.

"<u>Affiliate</u>" shall, subject to the next succeeding sentence, have the meaning assigned to that term in the Distribution Agreement. For clarity, unless the context otherwise requires, a reference to a Person's "Affiliates" shall be deemed to mean such Person's Affiliates following the Distribution; provided that for purposes of this Agreement, Entertainco and Sphereco shall not be considered Affiliates.

"<u>Ancillary Agreement</u>" shall have the meaning assigned to that term in the Distribution Agreement.

"<u>Applicable Rate</u>" shall mean the Prime Rate (as defined below) plus three percent (3%) per annum.

"<u>Bankruptcy Event</u>" with respect to a party shall mean the filing of an involuntary petition in bankruptcy or similar proceeding against such party seeking its reorganization, liquidation or the appointment of a receiver, trustee or liquidator for it or for all or substantially all of its assets, whereupon such petition shall not be dismissed within sixty (60) days after the filing thereof, or if such party shall (i) apply for or consent in writing to the appointment of a receiver, trustee or liquidator of all or substantially all of its assets, (ii) file a voluntary petition or admit in writing its inability to pay its debts as they become due, (iii) make a general assignment for the benefit of creditors, (iv) file a petition or an answer seeking reorganization or an

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arrangement with its creditors or take advantage of any insolvency law with respect to itself as debtor, or (v) file an answer admitting the material allegations of a petition filed against it in any bankruptcy, reorganization, insolvency proceedings or any similar proceedings.

"<u>Business Day</u>" shall mean any day other than a Saturday, a Sunday or a day on which banks in New York City, New York are authorized or obligated by law or executive order to close.

"<u>Change of Control</u>" of a company shall mean an event or series of events by which Dolan Family Interests or Persons controlled by Dolan Family Interests (any such Person, a "<u>Dolan Family Interest Controlled Person</u>") (so long as no such "person" or "group" (as such terms are used in Sections 13(d) and 14(d) of the Securities and Exchange Act of 1934, as amended (the "<u>Exchange Act</u>")) other than the Dolan Family Interests shall beneficially own (within the meaning of Rule 13d-3 (as in effect on the effective date of this Agreement) promulgated under the Exchange Act ("Rule 13d-3")), in the aggregate, more than fifty percent (50%) of the equity interests in such Dolan Family Interest Controlled Person(s)) shall cease at any time to have beneficial ownership (within the meaning of Rule 13d-3) of shares of the capital stock of such company, having sufficient votes to elect (or otherwise designate) at such time a majority of the members of the board of directors of such company.

"<u>Commencement Date</u>" shall have the meaning ascribed to that term in Section 8.1 of this Agreement.

"<u>Dolan Family Interests</u>" shall mean (i) any Dolan Family Member, (ii) any trusts for the benefit of any Dolan Family Members, (iii) any estate or testamentary trust of any Dolan Family Member for the benefit of any Dolan Family Members, (iv) any executor, administrator, trustee, conservator or legal or personal representative of any Person or Persons specified in clauses (i), (ii) and (iii) above to the extent acting in such capacity on behalf of any Dolan Family Member or Members and not individually and (v) any corporation, partnership, limited liability company or other similar entity, in each case 80% of which is owned and controlled by any of the foregoing or combination of the foregoing.

"<u>Dolan Family Members</u>" shall mean Charles F. Dolan, his spouse, his descendants by birth or adoption (including any stepchildren of his descendants) and any spouse of any of such descendants.

"<u>Entertainco Services</u>" shall mean those transitional services, including any Additional Services, to be provided by Entertainco to Sphereco set forth on Schedule A hereto to assist Sphereco in operating Sphereco's business following the Distribution. Services or actions of Overlap Individuals shall not be considered to be Entertainco Services under this Agreement unless expressly agreed in writing by both parties to this Agreement.

"<u>Loss</u> " shall mean any damage, claim, loss, charge, action, suit, proceeding, deficiency, tax, interest, penalty and reasonable costs and expenses related thereto (including reasonable attorneys' fees).

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"<u>Overlap Individuals</u>" shall mean Persons who are directors of both Sphereco and Entertainco or employees of both Sphereco and Entertainco if such employee is compensated by both companies.

"<u>Person</u>" shall mean any natural person, corporation, business trust, limited liability company, joint venture, association, company, partnership or government, or any agency or political subdivision thereof.

"<u>Prime Rate</u>" shall mean the rate of interest per annum announced from time to time by JPMorgan Chase Bank, National Association, as its prime lending rate.

"<u>Services</u>" shall mean, collectively, the Entertainco Services and the Sphereco Services.

"<u>Sphereco Services</u>" shall mean those transitional services, including any Additional Services, to be provided by Sphereco to Entertainco set forth on Schedule B hereto to assist Entertainco in operating Entertainco's business following the Distribution. Services or actions of Overlap Individuals shall not be considered to be Sphereco Services under this Agreement unless expressly agreed in writing by both parties to this Agreement.

"<u>Third Party</u>" shall mean any Person who is not a party to this Agreement.

**Section 1.2. Reference; Interpretation.** References in this Agreement to any gender include references to all genders, and references to the singular include references to the plural and vice versa. The words "*include*", "*includes*" and "*including*" when used in this Agreement shall be deemed to be followed by the phrase "*without limitation*." Unless the context otherwise requires, references in this Agreement to Articles, Sections and Schedules shall be deemed references to Articles and Sections of, and Schedules to, this Agreement. Unless the context otherwise requires, the words "*hereof*", "*hereby*" and "*herein*" and words of similar meaning when used in this Agreement refer to this Agreement in its entirety and not to any particular Article, Section or provision of this Agreement.

**ARTICLE II** 

**SERVICES** 

**Section 2.1. Services**. (a) Entertainco shall provide to Sphereco each Entertainco Service for the term set forth opposite the description of such Entertainco Service in Schedule A. Upon conclusion of the term set forth opposite the description of such Entertainco Service, this Agreement shall be deemed terminated with respect to such Entertainco Service. Additional Services may be provided by Entertainco to Sphereco as provided in Section 2.3. At its option, (i) Entertainco may cause any Entertainco Service it is required to provide hereunder to be provided by a Third Party that is providing, or may from time to time provide, the same or similar services for Entertainco and/or (ii) to the extent any Entertainco Service is already provided by a Third Party, Entertainco shall have the right to change the Third Party that is providing such Entertainco Service to any Third Party that is providing, or may from time to time provide, the same or similar services for Entertainco, at any time upon reasonable notice to

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Sphereco. In the event of such a change as permitted in clauses (i) or (ii) above results in a change in cost of Entertainco for the provision of such Entertainco Service, the applicable schedules to this agreement shall be updated to reflect the revised fees as allocated to Sphereco, provided that if such a change results in an increase over 10% of the costs currently contemplated by Schedule A such an amendment will require the consent (which consent shall not be unreasonably withheld, conditioned or delayed) of Sphereco.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Sphereco shall provide to Entertainco each Sphereco Service for the term set forth opposite the description of such Sphereco Service in Schedule B. Upon conclusion of the term set forth opposite the description of such Sphereco Service, this Agreement shall be deemed terminated with respect to such Sphereco Service. Additional Services may be provided to Entertainco by Sphereco as provided in Section 2.3. At its option, (i) Sphereco may cause any Sphereco Service it is required to provide hereunder to be provided by a Third Party that is providing, or may from time to time provide, the same or similar services for Sphereco and/or (ii) to the extent any Sphereco Service is already provided by a Third Party, Sphereco shall have the right to change the Third Party that is providing such Sphereco Service to any Third Party that is providing, or may from time to time provide, the same or similar services for Sphereco, at any time upon reasonable notice to Entertainco. In the event of such a change as permitted in clauses (i) or (ii) above results in a change in cost of Sphereco for the provision of such Sphereco Service, the applicable schedules to this agreement shall be updated to reflect the revised fees as allocated to Entertainco, provided that if such a change results in an increase over 10% of the costs currently contemplated by Schedule B such an amendment will require the consent (which consent shall not be unreasonably withheld, conditioned or delayed) of Entertainco.

**Section 2.2. Standard of Service.** Entertainco and Sphereco shall maintain sufficient resources to perform their respective obligations hereunder. In performing the Services, Entertainco and Sphereco shall provide substantially the same level of service and use substantially the same degree of care as their respective personnel provided and used in providing such Services prior to completion of the Distribution for itself (but in no event less than a reasonable degree of care), subject in each case to any provisions set forth on Schedule A or Schedule B with respect to each such Service. Each party shall provide reasonable assistance to the other party in migrating the applicable Services to the recipient of such Services.

**Section 2.3. Additional Services.** From time to time after the date hereof, the parties may identify additional services that one party will provide to the other party in accordance with the terms of this Agreement (the "<u>Additional Services</u>"). The parties shall cooperate and act in good faith to agree on the terms pursuant to which any such Additional Service shall be provided and to amend Schedule A or Schedule B, as applicable, in accordance with such terms. Notwithstanding the foregoing, neither party shall have any obligation to agree to provide Additional Services.

**Section 2.4. Representative.** The parties shall each appoint a representative (each, a "<u>Representative</u>") to facilitate communications and performance under this Agreement. Each party may treat an act of a Representative of another party as being authorized by such other party without inquiring behind such act or ascertaining whether such Representative had authority to so act. Each party shall have the right at any time and from time to time to replace its Representative by giving notice in writing to the other party. The initial representative of each party is as set forth on Schedule C.

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**ARTICLE III** 

**LICENSES AND PERMITS** 

**Section 3.1. Licenses and Permits.** Each party warrants and covenants that all duties and obligations (including with respect to Entertainco, all Entertainco Services and with respect to Sphereco, all Sphereco Services) to be performed hereunder shall be performed in compliance with all material applicable federal, state and local laws, rules and regulations. Each party shall obtain and maintain all material permits, approvals and licenses necessary or appropriate to perform its duties and obligations (including with respect to Entertainco, the Entertainco Services and with respect to Sphereco, the Sphereco Services) hereunder and shall at all times comply with the terms and conditions of such permits, approvals and licenses.

**ARTICLE IV** 

**PAYMENT** 

**Section 4.1. General.** (a) In consideration for the provision of each of the Entertainco Services, Sphereco shall pay to Entertainco the applicable fee set forth for such Entertainco Service on Schedule A; it being understood that the amount set forth on Schedule A is the 12-month fee, and 1/12<sup>th</sup> of such fee shall be payable on a monthly basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In consideration for the provision of each of the Sphereco Services, Entertainco shall pay to Sphereco the applicable fee as set forth for such Sphereco Service on Schedule B; it being understood that the amount set forth on Schedule B is the 12-month fee, and 1/12<sup>th</sup> of such fee shall be payable on a monthly basis.

**Section 4.2. Additional Expenses.** (a) In addition to the fees payable in accordance with Section 4.1(a), Sphereco shall reimburse Entertainco for all reasonable and necessary out-of-pocket costs and expenses incurred by Entertainco with respect to Third Parties in connection with the provision of Entertainco Services to Sphereco pursuant to the terms of this Agreement or paid by Entertainco on behalf of Sphereco that are not already contemplated by Schedule A; <u>provided</u> that if Entertainco expects to incur in respect of a Third Party in any month costs and expenses in excess of $25,000 and not already contemplated by Schedule A, Entertainco shall use commercially reasonable efforts to provide to Sphereco prior to the first day of such month a written notice setting forth Entertainco's reasonable estimate of the expenses it expects to incur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition to the fees payable for expenses in accordance with Section 4.1(b), Entertainco shall reimburse Sphereco for all reasonable and necessary out-of-pocket costs and expenses incurred by Sphereco with respect to Third Parties in connection with the provision of Sphereco Services to Entertainco pursuant to the terms of this Agreement or paid by Sphereco on behalf of Entertainco that are not already contemplated by Schedule B; <u>provided</u> that if Sphereco expects to incur in respect of a Third Party in any month costs and expenses in excess of $25,000 and not already contemplated by Schedule B, Sphereco shall use commercially reasonable efforts to provide to Entertainco prior to the first day of such a month written notice setting forth Sphereco's reasonable estimate of the expenses it expects to incur.

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**Section 4.3. Adjustments.** Entertainco and Sphereco shall review and evaluate the fees payable in accordance with Section 4.1 (the "<u>Fees</u>") for existing services contemplated on Schedule A or Schedule B (the "<u>Existing Services</u>") for reasonableness annually and work in good faith to equitably adjust such Fees for Existing Services as appropriate to reflect among other things changes in compensation due to promotions or replacement of personnel at a lower or higher compensation level, increases or decreases in the percentage of labor-based allocation based on increased or decreased efforts of a particular individual, or adjustments to percentage of non-labor allocations tied to headcounts or other reasonable metrics. Entertainco and Sphereco shall work together in good faith to determine an appropriate date for such adjustments to take effect (which may be retroactive to the date of such changes). The addition of any Services not contemplated by Schedule A and B shall be subject to each company's related party transaction approval policy.

**Section 4.4. Invoices.** (a) Entertainco will invoice Sphereco in U.S. dollars: (i) as of the last day of each calendar month for any fees payable by Sphereco in accordance with Section 4.1(a) for Entertainco Services listed on Schedule A that shall have been provided pursuant to the terms of this Agreement during such month; (ii) as of the last day of each calendar month for any amounts payable by Sphereco in accordance with Section 4.2(a) (and enclosing invoices from the relevant Third Parties); and (iii) as of the last day of each calendar month for any taxes (excluding income taxes) accrued with respect to the provision of Entertainco Services to Sphereco during such month. Entertainco shall deliver or cause to be delivered to Sphereco each such invoice within thirty (30) days following the last day of the calendar month to which such invoice relates. Sphereco shall pay each such invoice received by electronic funds transfer as follows: in the case of clauses (i) and (ii), within forty-five (45) Business Days of the date on which such invoice was received, and in the case of clause (iii), not later than one (1) Business Day prior to the due date for such tax payments; <u>provided</u> that Entertainco delivers such invoice not less than three (3) Business Days prior to the due date for such tax payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Sphereco will invoice Entertainco in U.S. dollars: (i) as of the last day of each calendar month for any fees payable by Entertainco in accordance with Section 4.1(b) for Sphereco Services listed on Schedule B that shall have been provided pursuant to the terms of this Agreement during such month; (ii) as of the last day of each calendar month for any amounts payable by Entertainco in accordance with Section 4.2(b) (and enclosing invoices from the relevant Third Parties); and (iii) as of the last day of each calendar month for any taxes (excluding income taxes) accrued with respect to the provision of Sphereco Services to Entertainco during such month. Sphereco shall deliver or cause to be delivered to Entertainco each such invoice within thirty (30) days following the last day of the calendar month to which such invoice relates. Entertainco shall pay each such invoice received by electronic funds transfer: in the case of clauses (i) and (ii), within forty-five (45) Business Days of the date on which such invoice was received, and in the case of clause (iii), not later than one (1) Business Day prior to the due date for such tax payments' <u>provided</u> that Sphereco delivers such invoice not less than three (3) Business Days prior to the due date for such tax payments.

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**Section 4.5. Failure to Pay.** Any undisputed amount not paid when due shall be subject to a late payment fee computed daily at a rate equal to the Applicable Rate from the due date of such amount to the date such amount is paid. Each party agrees to pay the other party's reasonable attorneys' fees and other costs incurred in collection of any amounts owed to such other party hereunder and not paid when due. Notwithstanding anything to the contrary contained herein, in the event either party fails to make a payment of any undisputed amount when due hereunder, and such failure continues for a period of thirty (30) days following delivery of notice to such non-paying party of such failure, the other party shall have the right to cease provision of such Services to such non-paying party until such overdue payment (and any applicable late payment fee accrued with respect thereto) is paid in full. Such right of the party providing services shall not in any manner limit or prejudice any of such party's other rights or remedies in the event of the non-paying party's failure to make payments when due hereunder, including without limitation any rights or remedies pursuant to Sections 6, 8 and 10.

**Section 4.6. Termination of Services.** In the event of a termination of Services pursuant to Section 8, with respect to the calendar month in which such Services cease to be provided, the recipient of such Services shall be obligated to pay a fee for such Services calculated as set forth on Schedule A or B, as applicable for the portion of the month prior to the termination. Where possible, the parties agree to work together cooperatively to seek to have terminations occur as of month ends, but this Agreement shall not limit a party's right to effect a termination in accordance with this Agreement other than as of a month end.

**ARTICLE V** 

**INSURANCE MATTERS** 

**Section 5.1. Existing Insurance Polices.** Each of the insurance policies of Entertainco and Sphereco in effect prior to the Distribution are listed on Schedule D hereto (the "<u>Existing Policies</u>"). Certain of the Existing Policies shall be transferred from the original named insured under that policy (the "<u>Transferor</u>") to another party (the "<u>Transferee</u>") as indicated in Schedule D (the "<u>Transferred Policies</u>").

**Section 5.2. Disclaimer.** With respect to the Transferred Policies, each Transferor does hereby, for itself and each of its subsidiaries, agree that the applicable Transferee and its subsidiaries and their respective directors, officers and employees shall not have any liability whatsoever as a result of the insurance policies and practices of the Transferor and its affiliates as in effect at any time prior to the Distribution, including as a result of the level or scope of any such insurance, the creditworthiness of any insurance carrier, the selection, identity or performance of any Third-Party administrator, the terms and conditions of any policy, the adequacy or timeliness of any notice to any insurance carrier with respect to any claim or potential claim or otherwise.

**Section 5.3. Insurance Transition.** With respect to the Transferred Policies, each Transferor agrees to use its commercially reasonable efforts to cause the interest and rights of the applicable Transferee and each of its subsidiaries as of the date of the Distribution as insureds, additional named insureds or beneficiaries or in any other capacity under occurrence-based insurance policies and programs (and under claims-made policies and programs to the

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extent a claim has been submitted prior to the Distribution or later if so permitted by the terms of the applicable insurance policy and assuming that such policy is then in effect) of the applicable Transferee in respect of periods prior to the date of the Distribution to survive the Distribution for the period for which such interests and rights would have survived without regard to the transactions contemplated hereby to the extent permitted by such policies. In accordance with this Agreement the applicable Transferor shall transition the administration of the Transferred Policies and related programs noted on Schedule D to the Transferee indicated on Schedule D (or such other entity designated by the applicable Transferee) and the Transferee shall pay the costs and fees of the Transferor during such transition as provided in Article IV and Schedule A.

**Section 5.4. Claims Made Policies.** With respect to the Transferred Policies, each Transferee agrees that if it obtains or maintains any insurance coverage after the date of the Distribution for matters occurring prior to that time (e.g., a claims made directors and officers insurance policy) it will also obtain or maintain such coverage for the applicable Transferor, and its subsidiaries, subject to the Transferor's payment of the fees and costs in connection therewith as provided in this Agreement.

**Section 5.5. Post-Distribution Claims for Pre-Distribution Events.** In the event that a claim is made after the Distribution for an event that occurred prior to the Distribution, and such claim arises out of: (a) the Spinco Business (as defined in the Distribution Agreement), the parties will work together in good faith to ensure that such claim is made or caused to be made under the appropriate Existing Policy (whether transferred or not), that the expenses (if any) related to such a claim (e.g., payment of deductibles or expenses/recoveries not covered by the applicable Existing Policy) are borne by Entertainco, and the proceeds (if any) shall be for the benefit of Entertainco (or as otherwise mutually agreed by the parties, with the intent being achieving a fair and equitable result); (b) the MSG Entertainment Business (as defined in the Distribution Agreement), the parties will work together in good faith to ensure that such claim is made or caused to be made under the appropriate Existing Policy (whether transferred or not), that the expenses (if any) related to such a claim (e.g., payment of deductibles or expenses/recoveries not covered by the applicable Existing Policy) are borne by Sphereco, and the proceeds (if any) shall be for the benefit of Sphereco (or as otherwise mutually agreed by the parties, with the intent being achieving a fair and equitable result); or (c) corporate matters of the pre-Distribution consolidated business that generally impact the MSG Entertainment Business and Spinco Business equally (e.g., D&O), or is the result of an action of a third-party and such action impacts the pre-Distribution consolidated business equally or indiscriminately (e.g., Cyber & Media), the parties will work together in good faith to ensure that such claim is made or caused to be made under the appropriate Existing Policy (whether transferred or not), that the expenses (if any) related to such a claim (e.g., payment of deductibles or expenses/recoveries not covered by the applicable Existing Policy) are borne by Sphereco, and the proceeds (if any) shall be for the benefit of Sphereco (or as otherwise mutually agreed by the parties, with the intent being achieving a fair and equitable result).

**Section 5.6. Audits and Adjustments.** With respect to the Transferred Policies, each Transferee agrees that it will reimburse the applicable Transferor under this Agreement for any additional premiums or other amounts owing to any Third Party as a result of any audit or similar procedure by a Third Party, to the extent that such additional premiums or amounts owing relate to Transferee or any of its subsidiaries during the period Transferee or such subsidiaries were covered by the relevant insurance policy.

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**Section 5.7. No Assignment or Waiver.** This Agreement is not intended as an attempted assignment of any policy of insurance or as a contract of insurance and shall not be construed to waive any right or remedy of any Transferee in respect of any insurance policy or any other contract or policy of insurance.

**Section 5.8. No Limitation on Insurance.** Nothing in this Agreement shall be deemed to restrict a Transferor from acquiring at its own expense any other insurance policy in respect of any liabilities or covering any period.

**Section 5.9. Scope.** The provisions of this Article V shall not apply to insurance practices or policies relating to health and welfare plans or any other employee benefit arrangement. For the avoidance of doubt, the provisions of Article V apply to insurance practices and policies relating to workers' compensation and the foregoing sentence does not limit the application of Article V to such practices and policies.

**ARTICLE VI** 

**INDEMNIFICATION** 

**Section 6.1. Indemnification of Party Receiving Services.** (a) Entertainco agrees to indemnify, defend and hold Sphereco harmless from and against any Loss to which Sphereco may become subject arising out of, by reason of or otherwise in connection with the provision hereunder by Entertainco of Entertainco Services, other than Losses resulting from Sphereco's gross negligence, willful misconduct or breach of its obligations pursuant to this Agreement. Notwithstanding any provision in this Agreement to the contrary, Entertainco shall not be liable under this <u>Section</u> <u>6.1</u> for any consequential, special or punitive damages (including but not limited to lost profits), except to the extent that such consequential, special or punitive damages relate to a Loss resulting from a Third-Party Claim (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Sphereco agrees to indemnify, defend and hold Entertainco harmless from and against any Loss to which Entertainco may become subject arising out of, by reason of or otherwise in connection with the provision hereunder by Sphereco of Sphereco Services, other than Losses resulting from Entertainco's gross negligence, willful misconduct or breach of its obligations pursuant to this Agreement. Notwithstanding any provision in this Agreement to the contrary, Sphereco shall not be liable under this <u>Section</u> <u>6.1</u> for any consequential, special or punitive damages (including but not limited to lost profits), except to the extent that such consequential, special or punitive damages relate to a Loss resulting from a Third-Party Claim (as defined below).

**Section 6.2. Indemnification of Party Providing Services.** (a) Sphereco agrees to indemnify, defend and hold Entertainco harmless from and against any Loss to which Entertainco may become subject arising out of, by reason of or otherwise in connection with, the provision hereunder by Entertainco of Entertainco Services to Sphereco where such Losses resulted from Sphereco's gross negligence, willful misconduct or breach of its obligations pursuant to this Agreement. Notwithstanding any provision in this Agreement to the contrary,

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Sphereco shall not be liable under this <u>Section</u> <u>6.2</u> for any consequential, special or punitive damages (including but not limited to lost profits), except to the extent that such consequential, special or punitive damages relate to a Loss resulting from a Third-Party Claim (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Entertainco agrees to indemnify, defend and hold Sphereco harmless from and against any Loss to which Sphereco may become subject arising out of, by reason of or otherwise in connection with the provision hereunder by Sphereco of Sphereco Services to Entertainco where such Losses resulted from Entertainco's gross negligence, willful misconduct or breach of its obligations pursuant to this Agreement. Notwithstanding any provision in this Agreement to the contrary, Entertainco shall not be liable under this <u>Section</u> <u>6.2</u> for any consequential, special or punitive damages (including but not limited to lost profits), except to the extent that such consequential, special or punitive damages relate to a Loss resulting from a Third-Party Claim (as defined below).

**Section 6.3. Third-Party Claims.** (a) If a claim or demand is made against Sphereco or Entertainco (each, an "<u>Indemnitee</u>") by any Third Party (a "<u>Third-Party Claim</u>") as to which such Indemnitee is entitled to indemnification pursuant to this Agreement, such Indemnitee shall notify the party which is or may be required pursuant to <u>Section</u> <u>6.1</u> or <u>Section</u> <u>6.2</u> hereof to make such indemnification (the "<u>Indemnifying Party</u>") in writing, and in reasonable detail, of the Third-Party Claim promptly and in any event by the date (the "<u>Outside Notice Date</u>") that is the 15th Business Day after receipt by such Indemnitee of written notice of the Third-Party Claim; <u>provided</u>, however, that failure to give such notification shall not affect the indemnification provided hereunder except to the extent the Indemnifying Party shall have been actually prejudiced as a result of such failure (except that the Indemnifying Party shall not be liable for any expenses incurred during the period beginning immediately after the Outside Notice Date and ending on the date that the Indemnitee gives the required notice). Thereafter, the Indemnitee shall deliver to the Indemnifying Party, promptly (and in any event within ten (10) Business Days) after the Indemnitee's receipt thereof, copies of all notices and documents (including court papers) received by the Indemnitee relating to the Third-Party Claim. Notwithstanding anything to the contrary contained herein, Sphereco shall not be required to provide notice to Entertainco for Third-Party Claims for which Entertainco is providing legal support as part of the Entertainco Services to the extent that Entertainco has received notice in such capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a Third-Party Claim is made against an Indemnitee, the Indemnifying Party shall be entitled to participate in the defense thereof and, if it so chooses and acknowledges in writing its obligation to indemnify the Indemnitee therefor, to assume the defense thereof with counsel selected by the Indemnifying Party, <u>provided</u>, however, that such counsel is not reasonably objected to by the Indemnitee. Should the Indemnifying Party so elect to assume the defense of a Third-Party Claim, the Indemnifying Party shall, within 30 days (or sooner if the nature of the Third-Party Claim so requires), notify the Indemnitee of its intent to do so, and the Indemnifying Party shall thereafter not be liable to the Indemnitee for legal or other expenses subsequently incurred by the Indemnitee in connection with the defense thereof; <u>provided</u>, <u>however</u>, that such Indemnitee shall have the right to employ counsel to represent such Indemnitee if, in such Indemnitee's reasonable judgment, a conflict of interest between such

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Indemnitee and such Indemnifying Party exists in respect of such claim which would make representation of both such parties by one counsel inappropriate, and in such event the fees and expenses of such separate counsel shall be paid by such Indemnifying Party. If the Indemnifying Party assumes such defense, the Indemnitee shall have the right to participate in the defense thereof and to employ counsel, subject to the proviso of the preceding sentence, at its own expense, separate from the counsel employed by the Indemnifying Party, it being understood that the Indemnifying Party shall control such defense. The Indemnifying Party shall be liable for the fees and expenses of counsel employed by the Indemnitee for any period during which the Indemnifying Party has failed to assume the defense thereof (other than during the period prior to the time the Indemnitee shall have given notice of the Third-Party Claim as provided above). If the Indemnifying Party so elects to assume the defense of any Third-Party Claim, all of the Indemnitees shall cooperate with the Indemnifying Party in the defense or prosecution thereof, including by providing or causing to be provided agreements, documents, books, records, files and witnesses as soon as reasonably practicable after receiving any request therefor from or on behalf of the Indemnifying Party, except to the extent that providing or causing the foregoing to be provided would constitute a waiver of any Indemnitee's attorney-client privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Indemnifying Party acknowledges in writing responsibility under this Article VI for a Third-Party Claim, then in no event will the Indemnitee admit any liability with respect to, or settle, compromise or discharge, any Third-Party Claim without the Indemnifying Party's prior written consent; <u>provided</u>, <u>however</u>, that the Indemnitee shall have the right to settle, compromise or discharge such Third-Party Claim without the consent of the Indemnifying Party if the Indemnitee releases the Indemnifying Party from its indemnification obligation hereunder with respect to such Third-Party Claim and such settlement, compromise or discharge would not otherwise adversely affect the Indemnifying Party. If the Indemnifying Party acknowledges in writing liability for a Third-Party Claim, the Indemnitee will agree to any settlement, compromise or discharge of a Third-Party Claim that the Indemnifying Party may recommend and that by its terms obligates the Indemnifying Party to pay the full amount of the liability in connection with such Third-Party Claim and releases the Indemnitee completely in connection with such Third-Party Claim and that would not otherwise adversely affect the Indemnitee. If an Indemnifying Party elects not to assume the defense of a Third-Party Claim, or fails to notify an Indemnitee of its election to do so as provided herein, such Indemnitee may compromise, settle or defend such Third-Party Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding the foregoing, the Indemnifying Party shall not be entitled to assume the defense of any Third-Party Claim (and shall be liable for the fees and expenses of counsel incurred by the Indemnitee in defending such Third-Party Claim) if the Third-Party Claim seeks an order, injunction or other equitable relief or relief for other than money damages against the Indemnitee which the Indemnitee reasonably determines, after conferring with its counsel, cannot be separated from any related claim for money damages. If such equitable relief or other relief portion of the Third-Party Claim can be so separated from that for money damages, the Indemnifying Party shall be entitled to assume the defense of the portion relating to money damages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event and to the extent of payment by an Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be

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subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right or claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Entertainco and Sphereco shall cooperate as may reasonably be required in connection with the investigation, defense and settlement of any Third-Party Claim. In furtherance of this obligation, the parties agree that if an Indemnifying Party chooses to defend or to compromise or settle any Third-Party Claim, Sphereco or Entertainco, as the case may be, shall use its commercially reasonable efforts to make available to the other party, upon written request, their former and then current directors, officers, employees and agents and those of their subsidiaries as witnesses and any records or other documents within its control or which it otherwise has the ability to make available, to the extent that (i) any such Person, records or other documents may reasonably be required in connection with such defense, settlement or compromise and (ii) making such Person, records or other documents so available would not constitute a waiver of the attorney-client privilege of Sphereco or Entertainco, as the case may be. At the request of an Indemnifying Party, an Indemnitee shall enter into a reasonably acceptable joint defense agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The remedies provided in this Article VI shall be cumulative and shall not preclude assertion by any Indemnitee of any other rights or the seeking of any and all other remedies against any Indemnifying Party.

**Section 6.4. Indemnification Payments.** (a) Indemnification required by this Article VI shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or any Loss is incurred. If the Indemnifying Party fails to make an indemnification payment required by this Article VI within 30 days after receipt of a bill therefor or notice that a Loss has been incurred, the Indemnifying Party shall also be required to pay interest on the amount of such indemnification payment, from the date of receipt of the bill or notice of the Loss to, but not including the date of payment, at the Prime Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The amount of any claim by an Indemnitee under this Agreement shall be (i) reduced to reflect any actual tax savings or insurance proceeds received by any Indemnitee that result from the Losses that gave rise to such indemnity, and (ii) increased by an amount equal to any tax cost incurred by any Indemnitee that results from receipt of payments under this Article VI.

**Section 6.5. Survival.** The parties' obligations under this Article VI shall survive the termination of this Agreement.

**ARTICLE VII** 

**COOPERATION; CONFIDENTIALITY; TITLE** 

**Section 7.1. Good Faith Cooperation; Consents.** Each party shall use commercially reasonable efforts to cooperate with the other party in all matters relating to the

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provision and receipt of the Services. Such cooperation shall include, but not be limited to, exchanging information, providing electronic access to systems used in connection with the Services, performing true-ups and adjustments and obtaining all consents, licenses, sublicenses or approvals necessary to permit each party to perform its obligations hereunder. Sphereco and Entertainco shall maintain reasonable documentation related to the Services and cooperate with each other in making such information available as needed.

**Section 7.2. Confidentiality.** Each party shall keep confidential from Third Parties the Schedules to this Agreement and all non-public information received from the other party regarding the Services, including, without limitation, any information received with respect to products and services of Sphereco or Entertainco, and to use such information only for the purposes set forth in this Agreement unless (i) otherwise agreed to in writing by the party from which such information was received or (ii) required by applicable law, regulation or any securities exchange (in which case the parties shall cooperate in seeking to obtain a protective order or other arrangement pursuant to which the confidentiality of such information is preserved); provided that to the extent disclosure is required and permitted under the terms of clause (ii) of this Section 7.2, the disclosing party shall provide reasonable advance notice to the non-disclosing party of such required disclosure. The covenants in this Article VII shall survive any termination of this Agreement for a period of three (3) years from the date such termination becomes effective.

**Section 7.3. Internal Use; Title, Copies, Return.** Except to the extent inconsistent with the express terms of the Distribution Agreement and any Ancillary Agreement other than this Agreement, each party agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) title to all systems used in performing any Service provided hereunder shall remain in the party providing such Service or its Third-Party vendors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the extent the provision of any Service involves intellectual property, including without limitation software programs or patented or copyrighted material, or material constituting trade secrets, the recipient of such Service shall not copy, modify, reverse engineer, decompile or in any way alter any of such material, or otherwise use such material in a manner inconsistent with the terms and provisions of this Agreement, without the express written consent of the party providing such Service; and upon the termination of any Service, the recipient of such Service shall return to the party providing such Service, as soon as practicable, any equipment or other property of the party providing such Service relating to such Service which is owned or leased by the party providing such Service and is or was in its possession or control.

**ARTICLE VIII** 

**TERM** 

**Section 8.1. Duration.** (a) Except as provided in Sections 4.6, 6.5, 7.2, 8.2, 8.3, 8.4 and 8.5, the term of this Agreement shall commence on the date hereof (the "Commencement Date") and shall continue in full force and effect until the earlier of (i) the date that is the day prior to the second anniversary of the Commencement Date, unless otherwise mutually agreed by the parties and (ii) the earlier termination of all Services in accordance with Section 4.5 or 8.1(b).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each party acknowledges that the purpose of this Agreement is for Entertainco to provide the Entertainco Services to Sphereco on an interim basis until Sphereco can perform the Entertainco Services for itself, and for Sphereco to provide the Sphereco Services to Entertainco on an interim basis until Entertainco can perform the Sphereco Services for itself. As Sphereco becomes self-sufficient or engages other sources to provide any Entertainco Service, Sphereco shall be entitled to release Entertainco from providing any or all of the Entertainco Services hereunder by delivering a written notice thereof to Entertainco at least twenty (20) Business Days prior to the effective date of release of such Entertainco Service(s). At the end of such twenty (20) Business Day period (or such shorter period as may be agreed by the parties), Entertainco shall discontinue the provision of the Entertainco Services specified in such notice and any such Entertainco Services shall be excluded from this Agreement, Schedule A shall be deemed to be amended accordingly, and this Agreement shall be deemed to be terminated with respect to such Entertainco Service. Entertainco shall also be entitled to release Sphereco from providing any or all of the Sphereco Services hereunder by delivering a written notice thereof to Sphereco at least twenty (20) Business Days prior to the effective date of release of such Sphereco Service(s). At the end of such twenty (20) Business Day period (or such shorter period as may be agreed by the parties), Sphereco shall discontinue the provision of the Sphereco Services specified in such notice and any such Sphereco Services shall be excluded from this Agreement, Schedule B shall be deemed to be amended accordingly, and this Agreement shall be deemed to be terminated with respect to such Sphereco Service.

**Section 8.2. Early Termination by Entertainco.** Entertainco may terminate this Agreement by giving written notice to Sphereco under the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if Sphereco shall default in the performance of any of its material obligations under this Agreement, and such default or breach shall continue and not be remedied for a period of thirty (30) days after Entertainco has given written notice to Sphereco specifying such default and requiring it to be remedied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if a Bankruptcy Event has occurred with respect to Sphereco; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if a Change of Control of Sphereco has occurred.

**Section 8.3. Early Termination by Sphereco.** Sphereco may terminate this Agreement by giving written notice to Entertainco under the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if Entertainco shall default in the performance of any of its material obligations under this Agreement and such default shall continue and not be remedied for a period of thirty (30) days after Sphereco has given written notice to Entertainco specifying such default and requiring it to be remedied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if a Bankruptcy Event has occurred with respect to Entertainco; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if a Change of Control of Entertainco has occurred.

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**Section 8.4. Termination of Sportco Services Agreement.** As of the date hereof, Entertainco is party to a Transition Services Agreement (as such agreement may be amended, modified, extended, replaced or supplemented, the "Sportco Services Agreement") with MSG Sports, LLC ("Sportco"). Sphereco and Entertainco acknowledge and agree that the fees set forth on Schedule A hereto contemplate the payment for certain services by Sportco pursuant to Sportco Services Agreement (*i.e.*, certain fees contemplate expenses being shared by three (3) parties, rather than two (2)), and in the event that the Sportco Services Agreement expires, is terminated, or otherwise ceases to exist (a "Sportco Termination Event"), the parties agree that certain fees on Schedule A may require adjustment to reflect payment by two (2) parties instead of three (3) for services that are also provided for under the Sportco Services Agreement (the "Similar Services"). In the event of a Sportco Termination Event, (a) Entertainco shall promptly notify Sphereco of such Sportco Termination Event, and (b) within fifteen (15) days of such Sportco Termination Event, Entertainco shall deliver to Sphereco a revised Schedule A, identifying the Similar Services, and an approximate *pro rata* distribution of fees (based on Sphereco's fees reflected on Schedule A as of the date of the Sportco Termination Event compared to Entertainco's fees/expenses for the same service as of the same date) previously paid for by Sportco for such Similar Service under the Sportco Services Agreement. Entertainco shall use reasonable efforts to adjust anticipated expenses to reflect any reduction in headcount or other needs as a result of the Sportco Termination Event, in a way that is reasonable and generally consistent with Sphereco's past practices. The revised Schedule A reflecting the *pro rata* allocation to Sphereco shall automatically become effective on the date that is the later of (x) forty-five (45) days from the Sphereco Termination Event or (y) thirty (30) days from the delivery of such revised Schedule A to Sphereco, *unless*, prior to that date, Sphereco notifies Entertainco that it desires to terminate any Similar Service identified, and, in either case, Schedule A shall be amended accordingly, with such revised pricing and/or termination being retroactive to the date of the Sphereco Termination Event.

**Section 8.5. Suspension Due to Force Majeure.** In the event the performance by either Sphereco or Entertainco of its duties or obligations hereunder is interrupted or interfered with by reason of any cause beyond its reasonable control including, but not limited to, fire, storm, flood, earthquake, explosion, war, strike or labor disruption, rebellion, insurrection, quarantine, act of God, pandemic, boycott, embargo, shortage or unavailability of supplies, riot, or governmental law, regulation or edict (collectively, "<u>Force Majeure Events</u>"), the party affected by such Force Majeure Event shall not be deemed to be in default of this Agreement by reason of its non-performance due to such Force Majeure Event, but shall give notice to the other party of the Force Majeure Event and the fee provided for in Section 4.1 shall be equitably adjusted to reflect the reduced performance. In such event, the party affected by such Force Majeure Event shall resume the performance of its duties and obligations hereunder as soon as reasonably practicable after the end of the Force Majeure Event.

**Section 8.6. Consequences of Termination.** In the event this Agreement expires or is terminated in accordance with this Article VIII, then (a) all Services to be provided will promptly cease, (b) each of Entertainco and Sphereco shall, upon request of the other party, promptly return or destroy all non-public confidential information received from the other party in connection with this Agreement (including the return of all information received with respect to the Services or products of Sphereco or Entertainco, as the case may be), without retaining a

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copy thereof (other than one copy for file purposes), and (c) each of Entertainco and Sphereco shall honor all credits and make any accrued and unpaid payment to the other party as required pursuant to the terms of this Agreement, and no rights already accrued hereunder shall be affected.

**ARTICLE IX** 

**RECORDS** 

**Section 9.1. Maintenance of Records.** Each of the parties shall create and maintain full and accurate books in connection with the provision of the Services, and all other records relevant to this Agreement, and upon reasonable notice from the other party shall make available for inspection and copy by such other party's agents such records during reasonable business hours.

**ARTICLE X** 

**DISPUTE RESOLUTION** 

**Section 10.1. Negotiation.** In the event of a controversy, dispute or claim arising out of, in connection with, or in relation to the interpretation, performance, nonperformance, validity or breach of this Agreement or otherwise arising out of, or in any way related to this Agreement or the transactions contemplated hereby, including, without limitation, any claim based on contract, tort, statute or constitution (but excluding any controversy, dispute or claim arising out of any agreement relating to the use or lease of real property if any Third Party is a party to such controversy, dispute or claim) (collectively, "<u>Agreement Disputes</u>"), the management of the parties shall negotiate in good faith for a reasonable period of time to settle such Agreement Dispute, <u>provided</u>, <u>however</u>, that such reasonable period shall not, unless otherwise agreed by the parties in writing, exceed 30 days from the time the parties began such negotiations.

**Section 10.2. Continuity of Service and Performance.** Unless otherwise agreed in writing, the parties will continue to provide service and honor all other commitments under this Agreement during the course of any form of dispute resolution with respect to all matters not subject to such dispute, controversy or claim.

**Section 10.3. Other Remedies.** Nothing in this Article X shall limit the right that any party may otherwise have to seek to obtain (a) preliminary injunctive relief in order to preserve the status quo pending the resolution of a dispute or (b) temporary or permanent injunctive relief from any breach of any provisions of this Agreement.

**ARTICLE XI** 

**NOTICES** 

**Section 11.1. Notices.** All notices and other communications hereunder shall be in writing, shall reference this Agreement and shall be emailed, hand delivered or mailed by registered or certified mail (return receipt requested) to the parties at the following addresses (or

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at such other address for a party as shall be specified by like notice) and will be deemed given on the date on which such notice is received:

To Entertainco:

MSGE Spinco, Inc. (or, after the applicable name change, Madison Square Garden Entertainment Corp.)

Two Penn Plaza

New York, New York 10121

Attention: Chief Financial Officer

with a copy to:

MSGE Spinco, Inc. (or, after the applicable name change, Madison Square Garden Entertainment Corp.)

Two Penn Plaza

New York, New York 10121

Attention: General Counsel

To Sphereco:

Madison Square Garden Entertainment Corp. (or, after the applicable name change, MSG Sphere Corp.)

Two Penn Plaza

New York, New York 10121

Attention: Chief Financial Officer

with a copy to:

Madison Square Garden Entertainment Corp. (or, after the applicable name change, MSG Sphere Corp.)

Two Penn Plaza

New York, New York 10121

Attention: General Counsel

**ARTICLE XII** 

**MISCELLANEOUS** 

**Section 12.1. Taxes.** Except as may otherwise be specifically provided herein, each party shall bear all taxes, duties and other similar charges (and any related interest and penalties) imposed as a result of its receipt of Services under this Agreement.

**Section 12.2. Relationship of Parties.** Nothing in this Agreement shall be deemed or construed by the parties or any Third Party as creating the relationship of principal and agent, partnership or joint venture between the parties, it being understood and agreed that no provision contained herein, and no act of the parties, shall be deemed to create any relationship between the parties other than the relationship of independent contractor nor be deemed to vest any rights, interest or claims in any third parties.

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**Section 12.3. Complete Agreement; Construction.** This Agreement, including the Schedules hereto, shall constitute the entire agreement between the parties with respect to the subject matter hereof and shall supersede all previous negotiations, commitments and writings with respect to such subject matter. In the event of any inconsistency between this Agreement and any Schedule, the Schedule shall prevail. The rights and remedies of the parties herein provided shall be cumulative and in addition to any other or further remedies provided by law or equity.

**Section 12.4. Counterparts.** This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more such counterparts have been signed by each party and delivered to the other party.

**Section 12.5. Waivers.** The failure of any party to require strict performance by the other party of any provision in this Agreement will not waive or diminish that party's right to demand strict performance thereafter of that or any other provision hereof.

**Section 12.6. Amendments.** This Agreement may not be modified or amended except by an agreement in writing by each of the parties.

**Section 12.7. Assignment.** This Agreement shall not be assignable, in whole or in part, by any party without the prior written consent of the other party, and any attempt to assign any rights or obligations arising under this Agreement without such consent shall be void.

**Section 12.8. Successors and Assigns.** The provisions to this Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties and their respective successors and permitted assigns.

**Section 12.9. Third-Party Beneficiaries.** This Agreement is solely for the benefit of the parties and shall not be deemed to confer upon any other Person any remedy, claim, liability, reimbursement, claim of action or other right in excess of those existing without reference to this Agreement.

**Section 12.10. Governing Law**. This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed in the State of New York.

**Section 12.11. Waiver of Jury Trial.** The parties hereby irrevocably waive any and all right to trial by jury in any legal proceeding arising out of or related to this Agreement or the transactions contemplated hereby.

**Section 12.12. Specific Performance.** Subject to Article X, in the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, the parties agree that the party who is or is to be thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief of its rights under this Agreement, in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative. The parties agree that the remedies at law for any

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breach or threatened breach of this Agreement, including monetary damages, are inadequate compensation for any loss, that any defense in any action for specific performance that a remedy at law would be adequate is hereby waived, and that any requirements for the securing or posting of any bond with such remedy are hereby waived.

**Section 12.13. Severability.** In the event any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired thereby. The parties shall endeavor in good faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions, the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

**Section 12.14. Provisions Unaffected.** Nothing contained in this Agreement shall affect the rights and obligations of Entertainco and Sphereco pursuant to the Distribution Agreement.

**Section 12.15. No Presumption.** Neither Entertainco nor Sphereco shall be deemed to be the drafter of this Agreement and no term or provision of this Agreement may be construed against any party on that basis.

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IN WITNESS WHEREOF, this Agreement has been duly executed and delivered on behalf of the parties as of the date first herein above written.

---

| | |
|:---|:---|
| MSGE SPINCO, INC.<br> (To be renamed MADISON SQUARE GARDEN ENTERTAINMENT CORP.) | MSGE SPINCO, INC.<br> (To be renamed MADISON SQUARE GARDEN ENTERTAINMENT CORP.) |
| By: |  |
|  | Name: |
|  | Title: |
| MADISON SQUARE GARDEN ENTERTAINMENT CORP.<br> (To be renamed MSG SPHERE CORP.) | MADISON SQUARE GARDEN ENTERTAINMENT CORP.<br> (To be renamed MSG SPHERE CORP.) |
| By: |  |
|  | Name: |
|  | Title: |

---

[Signature Page to Transition Services Agreement]

## Exhibit 10.2

**Exhibit 10.2** 

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**TAX DISAFFILIATION AGREEMENT** 

**BETWEEN** 

**MADISON SQUARE GARDEN ENTERTAINMENT CORP.** 

**(TO BE RENAMED MSG SPHERE CORP.)** 

**AND** 

**MSGE SPINCO, INC.** 

**(TO BE RENAMED MADISON SQUARE GARDEN ENTERTAINMENT CORP.)** 

**dated as of** [•]**, 2023**

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**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
|  SECTION 1. | Definition of Terms | 2 |
|  SECTION 2. | Allocation of Taxes and Tax-Related Losses | 10 |
|  | 2.1 *Allocation of Taxes* | 10 |
|  | 2.2 *Special Allocation of Certain Taxes* | 11 |
|  | 2.3 *Tax Payments* | 12 |
|  SECTION 3. | Preparation and Filing of Tax Returns | 12 |
|  | 3.1 *Combined Returns* | 12 |
|  | 3.2 *Separate Returns* | 12 |
|  | 3.3 *Agent* | 13 |
|  | 3.4 *Provision of Information* | 13 |
|  | 3.5 *Special Rules Relating to the Preparation of Tax Returns* | 13 |
|  | 3.6 *Refunds, Credits, Offsets, Tax Benefits* | 14 |
|  | 3.7 *Carrybacks* | 14 |
|  | 3.8 *Amended Returns* | 14 |
|  | 3.9 *Compensatory Equity Interests* | 15 |
|  SECTION 4. | Tax Payments | 15 |
|  | 4.1 *Payment of Taxes to Tax Authority* | 15 |
|  | 4.2 *Indemnification Payments* | 15 |
|  | 4.3 *Interest on Late Payments* | 16 |
|  | 4.4 *Tax Consequences of Payments* | 16 |
|  | 4.5 *Adjustments to Payments* | 16 |
|  | 4.6 *Section 336(e) Election* | 17 |
|  | 4.7 *Certain Final Determinations* | 17 |
|  SECTION 5. | Cooperation and Tax Contests | 17 |
|  | 5.1 *Cooperation* | 17 |
|  | 5.2 *Notices of Tax Contests* | 18 |
|  | 5.3 *Control of Tax Contests* | 18 |
|  | 5.4 *Cooperation Regarding Tax Contests* | 18 |
|  SECTION 6. | Tax Records | 19 |
|  | 6.1 *Retention of Tax Records* | 19 |
|  | 6.2 *Access to Tax Records* | 19 |
|  | 6.3 *Confidentiality* | 19 |
|  SECTION 7. | Representations and Covenants | 20 |

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i

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| | | |
|:---|:---|:---|
|  | 7.1 *Covenants of MSG Entertainment and Spinco* | 20 |
|  | 7.2 *Covenants of Spinco* | 20 |
|  | 7.3 *Covenants of MSG Entertainment* | 21 |
|  | 7.4 *Exceptions* | 21 |
|  | 7.5 *Injunctive Relief* | 22 |
|  | 7.6 *Further Assurances* | 22 |
|  SECTION 8. | General Provisions | 22 |
|  | 8.1 *Construction* | 22 |
|  | 8.2 *Ancillary Agreements* | 23 |
|  | 8.3 *Counterparts* | 23 |
|  | 8.4 *Notices* | 23 |
|  | 8.5 *Amendments* | 23 |
|  | 8.6 *Assignment* | 24 |
|  | 8.7 *Successors and Assigns* | 24 |
|  | 8.8 *Change in Law* | 24 |
|  | 8.9 *Authorization, Etc* | 24 |
|  | 8.10 *Termination* | 24 |
|  | 8.11 *Subsidiaries* | 24 |
|  | 8.12 *Third-Party Beneficiaries* | 24 |
|  | 8.13 *Double Recovery* | 25 |
|  | 8.14 *Titles and Headings* | 25 |
|  | 8.15 *Governing Law* | 25 |
|  | 8.16 *Waiver of Jury Trial* | 25 |
|  | 8.17 *Severability* | 25 |
|  | 8.18 *No Strict Construction; Interpretation* | 25 |
|  SCHEDULE A |  |  |

---

ii

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**TAX DISAFFILIATION AGREEMENT** 

THIS TAX DISAFFILIATION AGREEMENT (the "*Agreement*") is dated as of [•]**, 2023**, by and between Madison Square Garden Entertainment Corp. (to be renamed MSG Sphere Corp. at the Effective Time (as defined below)), a Delaware corporation ("*MSG Entertainment*"), and MSGE Spinco, Inc. (to be renamed Madison Square Garden Entertainment Corp. at the Effective Time), a Delaware corporation and a direct wholly-owned subsidiary of MSG Entertainment ("*Spinco*" and, together with MSG Entertainment, the "*Parties*", and each, a "*Party*"). Unless otherwise indicated, all "Section" references in this Agreement are to sections of the Agreement.

**RECITALS** 

WHEREAS, the Board of Directors of MSG Entertainment determined that, based on the Corporate Business Purposes (as defined below), it is in the best interests of MSG Entertainment and its stockholders to separate the businesses of Spinco, all as more fully described in Spinco's registration statement on Form 10, from MSG Entertainment's other businesses on the terms and conditions set forth in the Distribution Agreement between MSG Entertainment and Spinco dated on or about the date hereof (the "*Distribution Agreement*");

WHEREAS, pursuant to the Contribution Agreement (as defined below), (a) MSG Entertainment intends to complete the Entertainment Assignments (as defined below), and (b) MSG Entertainment Group, LLC (to be renamed MSG Sphere Group, LLC) at the Effective Time (as defined below)), a Delaware limited liability company and a direct wholly-owned subsidiary of MSG Entertainment ("*MSGE Group*") intends to complete the Sphere Assignments (as defined below);

WHEREAS, the Board of Directors of MSG Entertainment has authorized the distribution to the holders of the issued and outstanding shares of Class A Common Stock, par value $0.01 per share, and Class B Common Stock, par value $0.01 per share, of MSG Entertainment (collectively, the "*MSG Entertainment Shares*") as of the record date for the distribution of approximately 62% of the issued and outstanding shares of Class A Common Stock, par value $0.01 per share, and all of the issued and outstanding shares of Class B Common Stock, par value $0.01 per share, of Spinco (each, a "*Spinco Share*" and collectively, the "*Spinco Shares*"), respectively, on the basis of one share of Spinco Class A Common Stock for every one share of MSG Entertainment Class A Common Stock and one share of Spinco Class B Common Stock for every one share of MSG Entertainment Class B Common Stock (the "*Distribution*");

WHEREAS, MSG Entertainment and Spinco intend the Contribution (as defined below) and Distribution to qualify for the Tax-Free Status (as defined below);

WHEREAS, the Boards of Directors of MSG Entertainment and Spinco have each determined that the Distribution and the other transactions contemplated by the Distribution Agreement, and the Ancillary Agreements (as defined below) are in furtherance of and consistent with the Corporate Business Purposes and, as such, are in the best interests of their respective companies and stockholders or sole stockholder, as applicable, and have approved the Distribution Agreement, and each of the Ancillary Agreements;

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WHEREAS, the Parties set forth in the Distribution Agreement the principal arrangements between them regarding the separation of the Spinco Group (as defined below) from the MSG Entertainment Group (as defined below); and

WHEREAS, the Parties desire to provide for and agree upon the allocation between the Parties of liabilities for Taxes (as defined below) arising prior to, as a result of, and subsequent to the Distribution, and to provide for and agree upon other matters relating to Taxes;

NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, the Parties hereby agree as follows:

**SECTION 1. Definition of Terms**. For purposes of this Agreement (including the recitals hereof), the following terms have the following meanings:

"Affiliate" has the meaning set forth in the Distribution Agreement. For the avoidance of doubt, the term "Affiliate" as it applies to Spinco shall include the Spinco Company Entities.

"Agreed Treatment" means the treatment of (i) the Sphere Assignments as a transaction that is disregarded for U.S. federal income Tax purposes, and (ii) the Contribution and the Distribution in accordance with the Tax-Free Status and as a transaction which does not incur Tax liability under section 4501 of the Code.

"Agreement" has the meaning set forth in the preamble hereof.

"Ancillary Agreements" means the agreements encompassed by such term in the Distribution Agreement.

"Business Day" has the meaning set forth in the Distribution Agreement.

"Code" means the Internal Revenue Code of 1986, as amended.

"Combined Return" means a consolidated, combined or unitary Tax Return that includes, by election or otherwise, one or more members of the MSG Entertainment Group and one or more members of the Spinco Group.

"Companies" means MSG Entertainment and Spinco.

"Company" means MSG Entertainment or Spinco, as the context requires.

"Compensatory Equity Interests" means options, stock appreciation rights, restricted stock, restricted stock units or other rights with respect to MSG Entertainment Common Shares or Spinco Shares that are granted by MSG Entertainment, Spinco or any of their respective Subsidiaries in connection with employee or director compensation or other employee benefits.

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"Compensatory Equity Net Share Settlements" means "net share settlement" transactions with respect to Compensatory Equity Interests between either Party (or any of their respective Subsidiaries) on the one hand and the employee (or director, as the case may be) of such Party or the other Party (or any of their respective Subsidiaries) on the other hand, in each case pursuant to the terms of the relevant agreement with respect to such Compensatory Equity Interests.

"Contribution Agreement" means the Contribution Agreement between MSG Entertainment, Spinco, [and MSGE Group] dated on or about the date hereof.

"Contribution" means the Entertainment Assignments.

"Controlling Party" means, with respect to a Tax Contest, the Person that has responsibility, control and discretion in handling, defending, settling or contesting such Tax Contest.

"Corporate Business Purposes" means the Corporate Business Purposes as set forth in the Tax Opinion Representations (including any appendices thereto) and the "Reasons for the Distribution" in Spinco's registration statement on Form 10, as amended.

"Deconsolidation Taxes" means any Taxes imposed on any member of the MSG Entertainment Group or the Spinco Group as a result of or in connection with the Sphere Assignments, the Contribution and the Distribution (or any portion thereof), but excluding any Transfer Taxes and Distribution Taxes.

"Disclosing Party" has the meaning set forth in Section 6.3.

"Distribution" has the meaning set forth in the recitals hereof.

"Distribution Agreement" has the meaning set forth in the recitals hereof.

"Distribution Date" has the meaning set forth in the Distribution Agreement.

"Distribution Taxes" means any Taxes arising from a Final Determination that the Contribution and the Distribution failed to be tax-free to MSG Entertainment in accordance with the requirements of section 355 or section 368(a)(1)(D) of the Code (including any Taxes resulting from the application of section 355(d) or (e) to the Distribution), or that any stock of Spinco failed to qualify as "qualified property" within the meaning of section 355(c)(2) or 361(c)(2) of the Code (including as a result of the application of section 355(d) or 355(e) of the Code to the Distribution) or where applicable, failed to be stock permitted to be received without recognition of gain or loss under section 361(a) of the Code, and shall include any Taxes resulting from an election under section 336(e) of the Code in the circumstances set forth in Section 4.6 hereof.

"Due Date" has the meaning set forth in Section 4.3.

"Entertainment Assignments" has the meaning set forth in the Contribution Agreement.

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"Effective Time" means 11:59 p.m., New York City time, on the Distribution Date.

"Employee Matters Agreement" means the Employee Matters Agreement by and between MSG Entertainment and Spinco entered into on or about the date hereof.

"Escheat Liability" means any unclaimed property or escheat liability, including any interest, penalty, administrative charge, or addition thereto and further including all costs of responding to or defending against an audit, examination, or controversy with respect to such liability, imposed by or on behalf of a governmental entity with respect to any property or obligation (including, without limitation, uncashed checks to vendors, customers, or employees and non-refunded overpayments).

"Excess Taxes" means the excess of (x) the Taxes for which MSG Entertainment Group is liable if an election is made pursuant to section 336(e) of the Code under Section 4.6 of this Agreement, <u>over</u> (y) the Taxes for which MSG Entertainment Group is liable if such an election is not made, in each case taking into account the allocation of Taxes that is otherwise applicable in this Agreement but without regard to Section 4.6 hereof.

"Expert Law Firm" means a law firm nationally recognized for its expertise in the matter for which its opinion is sought.

"Fifty-Percent Equity Interest" means, in respect of any corporation (within the meaning of the Code), stock or other equity interests of such corporation possessing (i) at least fifty percent (50%) of the total combined voting power of all classes of stock or equity interests entitled to vote, or (ii) at least fifty percent (50%) of the total value of shares of all classes of stock or of the total value of all equity interests.

"Filer" means the Company that is responsible for filing the applicable Tax Return pursuant to Sections 3.1 or 3.2.

"Final Determination" means a determination within the meaning of section 1313 of the Code or any similar provision of state or local Tax Law.

"Group" means the MSG Entertainment Group or the Spinco Group, as the context requires.

"Income Tax" or "Income Taxes" means any Tax that is imposed on or measured by or referred to as income, gross income, gross receipts, profits, capital stock, franchise or other similar Tax.

"Indemnified Party" has the meaning set forth in Section 4.5.

"Indemnifying Party" has the meaning set forth in Section 4.5.

"Interest Rate" means (x) the "Applicable Rate" as set forth in the Distribution Agreement, <u>or</u> (y) if higher <u>and</u> if with respect to a payment to indemnify for a Tax to which the "large corporate underpayment" provision within the meaning of section 6621(c) of the Code applies, such interest rate that would be applicable at such time to such "large corporate underpayment."

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"IRS" means the Internal Revenue Service.

"MSG Entertainment" has the meaning set forth in the preamble hereof.

"MSG Entertainment Business" has the meaning ascribed to the term "MSG Entertainment Business" in the Tax Opinion Representations that constitutes an active trade or business (within the meaning of section 355(b) of the Code) of the separate affiliated group (as defined in section 355(b)(3)(B) of the Code) of MSG Entertainment.

"MSG Entertainment Group" has the meaning ascribed to the term "MSG Entertainment Group" in the Distribution Agreement.

"MSG Indemnified Party" includes each member of the MSG Entertainment Group, each of their representatives and Affiliates, each of their respective directors, officers, managers and employees, and each of their heirs, executors, trustees, administrators, successors and assigns.

"MSG Restricted Action" means any action by MSG Entertainment or any of its Subsidiaries inconsistent with the covenants set forth in Section 7.4(a); and, for the avoidance of doubt, an action shall be and remain a MSG Restricted Action even if MSG Entertainment or any of its Subsidiaries is permitted to take such an action pursuant to Section 7.5(b).

"MSG Entertainment Shares" has the meaning set forth in the recitals to this Agreement.

"MSG Tainting Act" means any breach of a representation or covenant made by MSG Entertainment in Section 7.1 of this Agreement or the taking of a MSG Restricted Action, if as a result of such breach or taking of a MSG Restricted Action a Final Determination is made that the Contribution and the Distribution failed to be tax-free by reason of (i) failing to qualify as a transaction described in section 355 and section 368(a)(1)(D) of the Code, or (ii) any stock of Spinco failing to qualify as "qualified property" within the meaning of section 355(c)(2) or 361(c)(2) of the Code (including as a result of the application of section 355(d) or 355(e) of the Code to the Distribution) or where applicable, failing to be stock permitted to be received without recognition of gain or loss under section 361(a) of the Code.

"Non-Controlling Party" has the meaning set forth in Section 5.3(a).

"Non-Filer" means any Company that is not responsible for filing the applicable Tax Return pursuant to Sections 3.1 or 3.2.

"Non-Income Tax" or "Non-Income Taxes" means any Tax that is not an Income Tax.

"Other Party" has the meaning set forth in Section 4.6(b).

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"Party" has the meaning set forth in the preamble hereof.

"Parties" has the meaning set forth in the preamble hereof.

"Payment Date" means (x) with respect to any U.S. federal income tax return, the date on which any required installment of estimated taxes determined under section 6655 of the Code is due, the date on which (determined without regard to extensions) filing the return determined under section 6072 of the Code is required, and the date the return is filed, and (y) with respect to any other Tax Return, the corresponding dates determined under the applicable Tax Law.

"Periodic Taxes" means Taxes imposed on a periodic basis that are not based upon or related to income or receipts. Periodic Taxes include property Taxes and similar Taxes.

"Permitted Acquisition" means any acquisition (as a result of the Distribution) of Spinco Shares solely by reason of holding MSG Entertainment Shares, but does not include such an acquisition if such MSG Entertainment Shares, before such acquisition, were themselves acquired in a manner to which the flush language of section 355(e)(3)(A) of the Code applies (thus causing, for the avoidance of doubt, section 355(e)(3)(A)(i), (ii), (iii) or (iv) of the Code not to apply).

"Person" means any individual, corporation, company, limited liability company, partnership, trust, incorporated or unincorporated association, joint venture or other entity of any kind.

"Post-Distribution Period" means any Tax Year or other taxable period beginning after the Distribution Date and, in the case of any Straddle Period, that part of the Tax Year or other taxable period that begins at the beginning of the day after the Distribution Date.

"Pre-Distribution Period" means any Tax Year or other taxable period that ends on or before the Distribution Date and, in the case of any Straddle Period, that part of the Tax Year or other taxable period through the end of the day on the Distribution Date.

"Preparer" means the Company that is responsible for the preparation and filing of the applicable Tax Return pursuant to Sections 3.1 or 3.2.

"Receiving Party" has the meaning set forth in Section 6.3.

"Responsible Party" has the meaning set forth in Section 4.6(b).

"Restriction Period" means the period beginning on the Distribution Date and ending twenty-four (24) months after the Distribution Date.

"Satisfactory Guidance" means either a ruling from the IRS or an Unqualified Opinion, in either case reasonably satisfactory to MSG Entertainment or Spinco (as the context dictates) in both form and substance.

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"Separate Return" means (a) in the case of any Tax Return required under relevant Tax Law to be filed by any member of the MSG Entertainment Group (including any consolidated, combined or unitary Tax Return), any such Tax Return that does not include any member of the Spinco Group, and (b) in the case of any Tax Return required under relevant Tax Law to be filed by any member of the Spinco Group (including any consolidated, combined or unitary Tax Return), any such Tax Return that does not include any member of the MSG Entertainment Group.

"Spinco" has the meaning set forth in the preamble hereof.

"Spinco Business" has the meaning ascribed to the term "Spinco Business" in the Tax Opinion Representations that constitutes an active trade or business (within the meaning of section 355(b) of the Code) of the separate affiliated group (as defined in section 355(b)(3)(B) of the Code) of Spinco.

"Spinco Share" or "Spinco Shares" has the meaning set forth in the recitals to this Agreement.

"Spinco Company Entities" means, collectively, the entities listed on Schedule A of the Distribution Agreement.

"Spinco Group" has the meaning ascribed to the term "Spinco Group" in the Distribution Agreement.

"Spinco Indemnified Party" includes each member of the Spinco Group, each of their representatives and Affiliates, each of their respective directors, officers, managers and employees, and each of their heirs, executors, trustees, administrators, successors and assigns.

"Spinco Restricted Action" means any action by Spinco or any of its Subsidiaries inconsistent with the covenants set forth in Section 7.3; and, for the avoidance of doubt, an action shall be and remain a Spinco Restricted Action even if Spinco or any of its Subsidiaries is permitted to take such an action pursuant to Section 7.5(a).

"Spinco Shares" has the meaning set forth in the recitals to this Agreement.

"Spinco Tainting Act" means any breach of a representation or covenant made by Spinco in Section 7.1 of this Agreement or the taking of a Spinco Restricted Action, if as a result of such breach or taking of a Spinco Restricted Action a Final Determination is made that the Contribution and the Distribution failed to be tax-free by reason of (i) failing to qualify as a transaction described in section 355 and section 368(a)(1)(D) of the Code, or (ii) any stock of Spinco failing to qualify as "qualified property" within the meaning of section 355(c)(2) or 361(c)(2) of the Code (including as a result of the application of section 355(d) or 355(e) of the Code to the Distribution) or where applicable, failing to be stock permitted to be received without recognition of gain or loss under section 361(a) of the Code.

"Sphere Assignments" has the meaning set forth in the Contribution Agreement.

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"Straddle Period" means any taxable period beginning on or prior to, and ending after, the Distribution Date.

"Subsidiary" when used with respect to any Person, means (i)(A) a corporation a majority in voting power of whose share capital or capital stock with voting power, under ordinary circumstances, to elect directors is at the time, directly or indirectly, owned by such Person, by one or more Subsidiaries of such Person, or by such Person and one or more Subsidiaries of such Person, whether or not such power is subject to a voting agreement or similar encumbrance, (B) a partnership or limited liability company in which such Person or a Subsidiary of such Person is, at the date of determination, (1) in the case of a partnership, a general partner of such partnership with the power affirmatively to direct the policies and management of such partnership or (2) in the case of a limited liability company, the managing member or, in the absence of a managing member, a member with the power affirmatively to direct the policies and management of such limited liability company, or (C) any other Person (other than a corporation) in which such Person, one or more Subsidiaries of such Person or such Person and one or more Subsidiaries of such Person, directly or indirectly, at the date of determination thereof, has or have (1) the power to elect or direct the election of a majority of the members of the governing body of such Person, whether or not such power is subject to a voting agreement or similar encumbrance, or (2) in the absence of such a governing body, at least a majority ownership interest or (ii) any other Person of which an aggregate of 50% or more of the equity interests are, at the time, directly or indirectly, owned by such Person and/or one or more Subsidiaries of such Person. For the avoidance of doubt, the term "Subsidiary" as it applies to Spinco shall include the Spinco Company Entities.

"Tax" or "Taxes" means any income, gross income, gross receipts, profits, capital stock, franchise, withholding, payroll, social security, workers' compensation, employment, unemployment, disability, property, ad valorem, stamp, excise (including, for the avoidance of doubt, any taxes imposed under section 4501 of the Code), severance, occupation, service, sales, use, license, lease, transfer, import, export, value added, alternative minimum, estimated or other similar tax (including any fee, assessment, or other charge in the nature of or in lieu of any tax) imposed by any Tax Authority, any Escheat Liability, abandoned, or unclaimed property law, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing, together with any reasonable expenses, including attorneys' fees, incurred in defending against any such tax.

"Tax Adjustment" has the meaning set forth in Section 4.7.

"Tax Authority" means, with respect to any Tax, the governmental entity or political subdivision, agency, commission or authority thereof that imposes such Tax, and the agency, commission or authority (if any) charged with the assessment, determination or collection of such Tax for such entity or subdivision.

"Tax Benefit" means a reduction in the Tax liability of a taxpayer (or of the Group of which it is a member) for any taxable period. Except as otherwise provided in this Agreement, a Tax Benefit shall be deemed to have been realized or received from a Tax Item in a taxable period only if and to the extent that the Tax liability of the taxpayer (or of the Group of which it is a member) for such period, after taking into account the effect of the Tax Item on the Tax liability of such taxpayer in the current period and all prior periods, is less than it would have been if such Tax liability were determined without regard to such Tax Item.

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"Tax Contest" means an audit, review, examination, or any other administrative or judicial proceeding with the purpose, potential or effect of redetermining Taxes of any member of either Group (including any administrative or judicial review of any claim for refund).

"Tax Counsel" means the advisors listed in Schedule A.

"Tax-Free Status" means the qualification of the Contribution and the Distribution (a) as a transaction described in section 355 and section 368(a)(1)(D) of the Code, (b) as a transaction in which the stock of Spinco distributed by MSG Entertainment is "qualified property" for purposes of sections 355(c)(2), 355(d), 355(e) and 361(c) of the Code, and (c) as a transaction in which shareholders of MSG Entertainment do not recognize income, gain or loss upon the Distribution under section 355(a) of the Code (except with respect to cash received in lieu of fractional shares).

"Tax Item" means, with respect to any Tax, any item of income, gain, loss, deduction, credit, adjustment in basis, or other attribute that may have the effect of increasing or decreasing any Tax.

"Tax Law" means the law of any governmental entity or political subdivision thereof, and any controlling judicial or administrative interpretations of such law, relating to any Tax.

"Tax Opinion" means the opinion (or opinions) to be delivered by Tax Counsel to MSG Entertainment in connection with the Distribution to the effect that (i) MSG Entertainment should not recognize gain or loss upon the Distribution under section 355(c) or section 361(c) of the Code, and (ii) shareholders of MSG Entertainment should not recognize gain or loss upon the Distribution under section 355(a) of the Code, and no amount should be included in such shareholders' income, except in respect of cash received in lieu of fractional Spinco Shares.

"Tax Opinion Representations" means the written and signed representations delivered to Tax Counsel in connection with the Tax Opinion.

"Tax Records" means Tax Returns, Tax Return work papers, documentation relating to any Tax Contests, and any other books of account or records required to be maintained under applicable Tax Laws (including but not limited to section 6001 of the Code) or under any record retention agreement with any Tax Authority.

"Tax Return" means any report of Taxes due, any claims for refund of Taxes paid, any information return with respect to Taxes, or any other similar report, statement, declaration, or document filed or required to be filed (by paper, electronically or otherwise) under any applicable Tax Law, including any attachments, exhibits, or other materials submitted with any of the foregoing, and including any amendments or supplements to any of the foregoing.

"Tax Year" means, with respect to any Tax, the year, or shorter period, if applicable, for which the Tax is reported as provided under applicable Tax Law.

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"Transactions" means the transactions contemplated by the Contribution Agreement and the Distribution Agreement and includes, for the avoidance of doubt, (i) the Sphere Assignments, (ii) the Contribution, and (iii) the Distribution.

"Transfer Taxes" means all U.S. federal, state, local or foreign sales, use, privilege, transfer, documentary, gains, stamp, duties, recording, and similar Taxes and fees (including any penalties, interest or additions thereto) imposed upon any Party hereto or any of its Affiliates in connection with the Distribution.

"Transition Services Agreement" means the transition services agreement between MSG Entertainment and Spinco dated on or about the date hereof.

"Treasury Regulations" means the regulations promulgated from time to time under the Code as in effect for the relevant Tax Year.

"Unqualified Opinion" means an unqualified "will" opinion of an Expert Law Firm that permits reliance by MSG Entertainment or Spinco (as the context dictates). For the avoidance of doubt, an Unqualified Opinion must be based on factual representations and assumptions that are reasonably satisfactory to MSG Entertainment or Spinco (as the context dictates).

**SECTION 2. Allocation of Taxes and Tax-Related Losses**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 *Allocation of Taxes*. Except as provided in Section 2.2, Taxes shall be allocated as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) MSG Entertainment shall be liable for and shall be allocated (i) any Taxes attributable to members of the MSG Entertainment Group for all periods, and (ii) any Income Taxes attributable to members of the Spinco Group for any Pre-Distribution Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Spinco shall be liable for and shall be allocated (i) any Taxes attributable to members of the Spinco Group for any Post-Distribution Period, and (ii) any Non-Income Taxes attributable to members of the Spinco-Group for any Pre-Distribution Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In applying the provisions of Sections 2.1(a) and 2.1(b) (but subject to the provisions of Section 2.2):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Taxes, other than Periodic Taxes, in respect of a Straddle Period shall be allocated between the Pre-Distribution Period and the Post-Distribution Period on a "closing of the books" basis by assuming that the books of the members of the MSG Entertainment Group and the members of the Spinco Group were closed on the Distribution Date. For purposes of the foregoing, depreciation and amortization deductions with respect to property placed in service after the Distribution Date shall be allocated to the Post-Distribution Period, and all other depreciation and amortization deductions shall be allocated on a per diem basis.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any Periodic Taxes in respect of a Straddle Period shall be allocated to the Pre-Distribution Period in an amount equal to such Periodic Taxes for the entire Straddle Period multiplied by a fraction the numerator of which is the number of calendar days in the period ending on the Distribution Date and the denominator of which is the number of calendar days in the entire period. The portion of any Periodic Taxes in respect of a Straddle Period not allocated to the Pre-Distribution Period shall be allocated to the Post-Distribution Period. For the avoidance of doubt, if a Party has prepaid Periodic Taxes that are allocated to the other Party under any provisions of this Agreement, the second Party shall reimburse the first Party to the extent so allocated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Taxes attributable to any transaction or action taken by or with respect to any member of the Spinco Group before the Effective Time on the Distribution Date shall be allocated to the Pre-Distribution Period, and Taxes attributable to any transaction or action taken by or with respect to any member of the Spinco Group after the Effective Time on the Distribution Date shall be allocated to the Post-Distribution Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) In determining the allocation of any Escheat Liability, the liability shall be allocated to the Party whose Group members actually hold (or are required to hold) the property subject to the Escheat Liability at the time a payment or remittance in respect of such liability is required to be made to the applicable governmental entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 *Special Allocation of Certain Taxes*. Notwithstanding any other provision of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any and all Deconsolidation Taxes shall be borne by MSG Entertainment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Spinco shall indemnify and hold harmless each MSG Indemnified Party from and against any liability of MSG Entertainment for Distribution Taxes to the extent such Distribution Taxes are attributable to a Spinco Tainting Act, <u>provided</u>, <u>however</u>, that Spinco shall have no obligation to indemnify any MSG Indemnified Party hereunder if there has occurred, prior to such Spinco Tainting Act, a MSG Tainting Act and such Distribution Taxes are attributable to such MSG Tainting Act. It is understood and agreed that, in determining the amounts payable under this Section 2.2(b), there shall be included all costs, expenses and damages associated with shareholders litigation or controversies and any amount paid by MSG Entertainment in respect of the liability of its shareholders, whether paid to its shareholders or to any Tax Authority, in connection with liability that may arise to shareholders as a result of receiving or accruing an amount payable under this Section 2.2(b), and all reasonable costs and expenses associated with such payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) MSG Entertainment shall indemnify and hold harmless each Spinco Indemnified Party from and against any liability of Spinco for Distribution Taxes to the extent that Spinco is not liable for such Taxes pursuant to Section 2.2(b).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Companies shall cooperate with each other and use their commercially reasonable efforts to reduce and/or eliminate any Transfer Taxes. If any Transfer Tax remains payable after application of the first sentence of this Section 2.2(d) and notwithstanding any other provision in this Section 2, all Transfer Taxes shall be allocated to MSG Entertainment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 *Tax Payments*. Each Company shall be liable for and shall pay the Taxes allocated to it by this Section 2 either to the applicable Tax Authority or to the other Company in accordance with Section 4 and the other applicable provisions of this Agreement.

**SECTION 3. Preparation and Filing of Tax Returns**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 *Combined Returns*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) MSG Entertainment shall be responsible for preparing and filing (or causing to be prepared or filed) all Combined Returns for any Tax Year. For any such return, Spinco shall furnish any relevant information, including pro forma returns, disclosures, apportionment data and supporting schedules, relating to any member of the Spinco Group necessary for completing any such return in a format suitable for inclusion in such return, <u>provided</u> that Spinco shall have the right to review and approve items on such returns if and to the extent such items directly relate to Taxes for which Spinco would be liable under Section 2, such approval not to be unreasonably delayed, conditioned or withheld by Spinco.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For the period in which the Transition Services Agreement is in effect, Spinco shall assist in the preparation of any Tax Returns which may be requested by MSG Entertainment in accordance with the terms of the Transition Services Agreement (even if, for the avoidance of doubt, the responsibility for preparation such Tax Return may be allocated to MSG Entertainment under other provisions of this Agreement). Nothing in this Section 3.1(b) shall be construed to affect MSG Entertainment's right or responsibility to file the Tax Returns whose filing is allocated to MSG Entertainment under other provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 *Separate Returns*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Tax Returns to be Prepared by MSG* Entertainment*.* MSG Entertainment shall be responsible for preparing and filing (or causing to be prepared and filed) all Separate Returns which relate to one or more members of the MSG Entertainment Group and for which Spinco is not responsible under Section 3.2(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Tax Returns to be Prepared by Spinco.* Spinco shall be responsible for preparing and filing (or causing to be prepared and filed) all Separate Returns which relate to one or more members of the Spinco Group for any Tax Year, <u>provided</u>, <u>however</u>, that in the case of such returns in respect of any Pre-Distribution Period or Straddle Period, MSG Entertainment shall have the right to review and approve such returns, such approval not to be unreasonably delayed, conditioned or withheld by MSG Entertainment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 *Agent*. Subject to the other applicable provisions of this Agreement (including, without limitation, Section 5), MSG Entertainment and Spinco (and their respective Affiliates) shall designate the other Party as its agent and attorney-in-fact to take such action (including execution of documents) as such other Party may deem reasonably appropriate in matters relating to the preparation or filing of any Tax Return described in Sections 3.1 and 3.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 *Provision of Information*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) MSG Entertainment shall provide to Spinco, and Spinco shall provide to MSG Entertainment, any information about members of the MSG Entertainment Group or the Spinco Group, respectively, that the Preparer reasonably requires to determine the amount of Taxes due on any Payment Date with respect to a Tax Return for which the Preparer is responsible pursuant to Section 3.1 or 3.2 and to properly and timely file all such Tax Returns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a member of the Spinco Group supplies information to a member of the MSG Entertainment Group, or a member of the MSG Entertainment Group supplies information to a member of the Spinco Group, and an officer of the requesting member intends to sign a statement or other document under penalties of perjury in reliance upon the accuracy of such information, then a duly authorized officer of the member supplying such information shall certify, to the best of such officer's knowledge, the accuracy of the information so supplied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 *Special Rules Relating to the Preparation of Tax Returns*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *In General.* All Tax Returns that include any members of the MSG Entertainment Group or Spinco Group, or any of their respective Affiliates, shall be prepared in a manner that is consistent with the Tax Opinion (including, for the avoidance doubt, the Tax Opinion Representations). Except as otherwise set forth in this Agreement, all Tax Returns for which MSG Entertainment has the right to prepare, review, approve or file under Sections 3.1 and 3.2 shall be prepared (x) in accordance with elections, Tax accounting methods and other practices used with respect to such Tax Returns filed prior to the Distribution Date (unless such past practices are not permissible under applicable law), or (y) to the extent any items are not covered by past practices (or in the event such past practices are not permissible under applicable Tax Law), in any reasonable manner, in accordance with the preparation, review, approval and filing responsibilities of Sections 3.1 and 3.2; <u>provided</u>, <u>however</u>, that in each case of (x) and (y) to the extent that a change in such elections, methods or practices could not reasonably be expected to result in any adverse impact on MSG Entertainment and would not be inconsistent with applicable law, such Tax Returns shall be prepared in accordance with reasonable practices selected by Spinco.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Election to File Consolidated, Combined or Unitary Tax Returns*. Subject to Spinco's reasonable approval, MSG Entertainment shall elect to file any Tax Return on a consolidated, combined or unitary basis, if such Tax Return would include at least one member of each Group and the filing of such Tax Return is elective under the relevant Tax Law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 *Refunds, Credits, Offsets, Tax Benefits* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any refunds, credits, or offsets with respect to Taxes allocated to MSG Entertainment pursuant to this Agreement shall be for the account of MSG Entertainment. Any refunds, credits or offsets with respect to Taxes allocated to Spinco pursuant to this Agreement shall be for the account of Spinco.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) MSG Entertainment shall forward to Spinco, or reimburse Spinco for, any such refunds, credits or offsets, plus any interest received thereon, net of any Taxes incurred with respect to the receipt or accrual thereof and any expenses incurred in connection therewith, that are for the account of Spinco within fifteen (15) Business Days from receipt thereof by MSG Entertainment or any of its Affiliates. Spinco shall forward to MSG Entertainment, or reimburse MSG Entertainment for, any refunds, credits or offsets, plus any interest received thereon, net of any Taxes incurred with respect to the receipt or accrual thereof and any expenses incurred in connection therewith, that are for the account of MSG Entertainment within fifteen (15) Business Days from receipt thereof by Spinco or any of its Affiliates. Any refunds, credits or offsets, plus any interest received thereon, or reimbursements not forwarded or made within the fifteen (15) Business Day period specified above shall bear interest from the date received by the refunding or reimbursing party (or its Affiliates) through and including the date of payment at the Interest Rate (treating the date received as the Due Date for purposes of determining such interest). If, subsequent to a Tax Authority's allowance of a refund, credit or offset, such Tax Authority reduces or eliminates such allowance, any refund, credit or offset, plus any interest received thereon, forwarded or reimbursed under this Section 3.6 shall be returned to the party who had forwarded or reimbursed such refund, credit or offset and interest upon the request of such forwarding party in an amount equal to the applicable reduction, including any interest received thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For the avoidance of doubt, no Party shall be required to reimburse the other Party under this Section 3.6 for the use of a refund, credit or offset or other Tax Benefit, calculated by reference to the Tax allocated to the other Party, including but not limited to a "dividends received deduction" set forth under section 243 of the Code and an unincorporated business tax credit as currently provided by Section 11-604 of the New York City Administrative Code or any successor thereto, if such deduction, credit or offset is not available to reduce the Tax liability of such other Party for any Tax Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 *Carrybacks.* To the extent permitted under applicable Tax Laws, the Spinco Group shall make the appropriate elections in respect of any Tax Returns to waive any option to carry back any net operating loss, any credits or any similar item from a Post-Distribution Period to any Pre-Distribution Period or to any Straddle Period. Any refund of or credit for Taxes resulting from any such carryback by a member of the Spinco Group that cannot be waived shall be payable to Spinco net of any Taxes incurred with respect to the receipt or accrual thereof and any expenses incurred in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 *Amended Returns.* Any amended Tax Return or claim for Tax refund, credit or offset with respect to any member of the MSG Entertainment Group or Spinco Group may be made only by the Company (or its Affiliates) responsible for filing the original Tax Return with respect to such member pursuant to Sections 3.1 or 3.2 (and, for the avoidance of doubt, subject to the same preparation, review, approval and filing rights set forth in Sections 3.1 or 3.2, to the extent applicable). Such Company (or its Affiliates) shall not, without the prior written consent

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of the other Company (which consent shall not be unreasonably withheld or delayed), file, or cause to be filed, any such amended Tax Return or claim for Tax refund, credit or offset to the extent that such filing, if accepted, is likely to increase the Taxes allocated to, or the Tax indemnity obligations under this Agreement of, such other Company for any Tax Year (or portion thereof); <u>provided</u>, <u>however</u>, that such consent need not be obtained if the Company filing the amended Tax Return by written notice to the other Company agrees to indemnify the other Company for the incremental Taxes allocated to, or the incremental Tax indemnity obligation resulting under this Agreement to, such other Company as a result of the filing of such amended Tax Return.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 *Compensatory Equity Interests.* Matters relating to Taxes and/or Tax Items with respect to Compensatory Equity Interests shall be governed by the Employee Matters Agreement.

**SECTION 4. Tax Payments**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 *Payment of Taxes to Tax Authority.* MSG Entertainment shall be responsible for remitting to the proper Tax Authority the Tax shown on any Tax Return for which it is responsible for filing pursuant to Section 3.1 or Section 3.2, and Spinco shall be responsible for remitting to the proper Tax Authority the Tax shown on any Tax Return for which it is responsible for filing pursuant to Section 3.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 *Indemnification Payments*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Tax Payments Made by the MSG* Entertainment *Group.* If any member of the MSG Entertainment Group is required to make a payment to a Tax Authority for Taxes allocated to Spinco under this Agreement, Spinco will pay the amount of Taxes allocated to it to MSG Entertainment not later than the later of (i) five (5) Business Days after receiving notification requesting such amount, and (ii) five (5) Business Days prior to the date such payment is required to be made to such Tax Authority. Notwithstanding the preceding sentence, if any member of the MSG Entertainment Group has made a prepayment of Periodic Taxes that are allocated to Spinco under this Agreement, Spinco will pay the amount of such Taxes allocated to it to MSG Entertainment not later than thirty (30) Business Days after the Distribution Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Tax Payments Made by the Spinco Group.* If any member of the Spinco Group is required to make a payment to a Tax Authority for Taxes allocated to MSG Entertainment under this Agreement, MSG Entertainment will pay the amount of Taxes allocated to it to Spinco not later than the later of (i) five (5) Business Days after receiving notification requesting such amount, and (ii) five (5) Business Days prior to the date such payment is required to be made to such Tax Authority. Notwithstanding the preceding sentence, if any member of the Spinco Group has made a prepayment of Periodic Taxes that are allocated to MSG Entertainment under this Agreement, MSG Entertainment will pay the amount of such Taxes allocated to it to Spinco not later than thirty (30) Business Days after the Distribution Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 *Interest on Late Payments.* Payments pursuant to this Agreement that are not made by the date prescribed in this Agreement or, if no such date is prescribed, not later than five (5) Business Days after demand for payment is made (the "*Due Date*") shall bear interest for the period from and including the date immediately following the Due Date through and including the date of payment at the Interest Rate. Such interest will be payable at the same time as the payment to which it relates. Interest will be calculated on the basis of a year of 365 days and the actual number of days for which due. Any payments of interest made under this Section 4.3 shall be treated as taxable or deductible, as the case may be, to the Party entitled under this Agreement to retain such payment or required under this Agreement to make such payment, in either case except as otherwise required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 *Tax Consequences of Payments.* For all Tax purposes and to the extent permitted by applicable Tax Law, the parties hereto shall treat any payment (except as provided in Section 4.3) made pursuant to this Agreement as a capital contribution or a distribution, as the case may be, immediately prior to the Distribution or as payments of an assumed or retained liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 *Adjustments to Payments.* The amount of any payment made pursuant to this Agreement shall be adjusted as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the receipt or accrual of any indemnity amounts for which any Party hereto (the "*Indemnifying Party*") is required to pay another Party (the "*Indemnified Party*") under this Agreement causes, directly or indirectly, an increase in the taxable income of the Indemnified Party under one or more applicable Tax Laws, such payment shall be increased so that, after the payment of any Taxes with respect to the payment, the Indemnified Party shall have realized the same net amount it would have realized had the payment not resulted in taxable income. For the avoidance of doubt, any liability for Taxes due to an increase in taxable income described in the immediately preceding sentence shall be governed by this Section 4.5(a) and not by Section 2.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent that Taxes for which the Indemnifying Party is required to pay to the Indemnified Party pursuant to this Agreement gives rise to a deduction, credit or other Tax Benefit (including as a result of any election set forth in Section 4.6) to the Indemnified Party or any of its Affiliates, the amount of any payment made to the Indemnified Party by the Indemnifying Party shall be decreased by taking into account any resulting reduction in Taxes actually realized by the Indemnified Party or any of its Affiliates resulting from such Tax Benefit (including as a result of any election set forth in Section 4.6). If such a reduction in Taxes of the Indemnified Party occurs following the payment made to the Indemnified Party with respect to the relevant indemnified Taxes, the Indemnified Party shall promptly repay the Indemnifying Party the amount of such reduction when actually realized. If the Tax Benefit arising from the foregoing reduction of Taxes described in this Section 4.5(b) is subsequently decreased or eliminated, then the Indemnifying Party shall promptly pay the Indemnified Party the amount of the decrease in such Tax Benefit. This Section 4.5(b) shall not apply to the extent that Section 3.6(d) would also apply to cause recovery of the same amounts to the Indemnifying Party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 *Section 336(e) Election.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon request by MSG Entertainment, Spinco shall join with MSG Entertainment in making a protective election under section 336(e) of the Code (and any similar election under state or local law) with respect to the Distribution in accordance with Treasury Regulations section 1.336-2(h) and (j) (and any applicable provisions under state and local law), <u>provided</u> that Spinco shall indemnify MSG Entertainment for any cost to the MSG Entertainment Group of making such an election (but it being understood that any such cost arising from Taxes shall be limited to Excess Taxes). MSG Entertainment and Spinco shall cooperate in the timely completion and/or filings of such elections and any related filings or procedures (including filing or amending any Tax Returns to implement an election that becomes effective). This Section 4.6 is intended to constitute a binding, written agreement to make an election under section 336(e) of the Code with respect to the Distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If Taxes are allocated to a Party (the "*Responsible Party*") as a result of any election set forth in Section 4.6, then to the extent that such Taxes give rise to a Tax Benefit, other than a refund, credit or offset as described in Section 3.6(b), to the other Party (the "*Other Party*") or any of its Affiliates, and such Tax Benefit results in an actual reduction in Taxes (determined on a with and without basis) of the Other Party or any of its Affiliates in any Tax Year, the Other Party shall pay to the Responsible Party in the relevant Tax Year an amount equal to such reduction in Taxes (determined on a with and without basis); <u>provided</u>, <u>however</u>, that this provision shall not apply to the extent that the actual reduction in Taxes for the relevant Tax Year and any unpaid reduction in Taxes for all prior Tax Years is less than $50,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 *Certain Final Determinations.* If an adjustment (a "*Tax Adjustment*") pursuant to a Final Determination in a Tax Contest initiated by a Tax Authority results in a Tax greater than the Tax shown on the relevant Tax Return for any Pre-Distribution Period, the Indemnified Party shall pay to the Indemnifying Party an amount equal to any Tax Benefit as and when actually realized by such Indemnified Party as a result of such Tax Adjustment. The Parties agree that if an Indemnified Party is required to make a payment to an Indemnifying Party pursuant to this Section 4.7, the Parties shall negotiate in good faith to set off the amount of such payment against any indemnity payments owed by the Indemnifying Party to the Indemnified Party, taking into account time value and similar concepts as appropriate.

**SECTION 5. Cooperation and Tax Contests**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 *Cooperation.* In addition to the obligations enumerated in Sections 3.4 and 5.4, MSG Entertainment and Spinco will cooperate (and cause their respective Subsidiaries and Affiliates to cooperate) with each other and with each other's agents, including accounting firms and legal counsel, in connection with Tax matters, including provision of relevant documents and information in their possession and making available to each other, as reasonably requested and available, personnel (including officers, directors, employees and agents of the Parties or their respective Subsidiaries or Affiliates) responsible for preparing, maintaining, and interpreting information and documents relevant to Taxes, and personnel reasonably required as witnesses or for purposes of providing information or documents in connection with any administrative or judicial proceedings relating to Taxes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 *Notices of Tax Contests.* Each Company shall provide prompt notice to the other Company of any pending or threatened Tax audit, assessment or proceeding or other Tax Contest of which it becomes aware relating to (i) Taxes for which it is or may be indemnified by such other Company hereunder or (ii) Tax Items that may affect the amount or treatment of Tax Items of such other Company. Such notice shall contain factual information (to the extent known) describing any asserted Tax liability in reasonable detail and shall be accompanied by copies of any notice and other documents received from any Tax Authority in respect of any such matters; <u>provided</u>, <u>however</u>, that failure to give such notification shall not affect the indemnification provided hereunder except, and only to the extent that, the indemnifying Company shall have been actually prejudiced as a result of such failure. Thereafter, the indemnified Company shall deliver to the indemnifying Company such additional information with respect to such Tax Contest in its possession that the indemnifying Company may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 *Control of Tax Contests*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Controlling Party.* Subject to the limitations set forth in Section 5.3(b), each Filer (or the appropriate member of its Group) shall, at its own cost and expense, be the Controlling Party with respect to any Tax Contest involving a Tax reported (or that, it is asserted, should have been reported) on a Tax Return for which such Company is responsible for filing (or causing to be filed) pursuant to Section 3 of this Agreement (it being understood, for the avoidance of doubt but subject to the other provisions of this Section 5.3(a), that MSG Entertainment shall be the Controlling Party with respect to any Tax Contest involving Distribution Taxes), in which case any Non-Filer that could have liability under this Agreement for a Tax to which such Tax Contest relates shall be treated as the "*Non-Controlling Party*." Notwithstanding the immediately preceding sentence, if a Non-Filer (x) acknowledges to the Filer in writing its full liability under this Agreement to indemnify for any Tax, and (y) provides to the Filer evidence (that is satisfactory to the Filer as determined in the Filer's reasonable discretion) of the Non-Filer's financial readiness and capacity to make such indemnity payment, then thereafter with respect to the Tax Contest relating solely to such Tax the Non-Filer shall be the Controlling Party (subject to Section 5.3(b)) and the Filer shall be treated as the Non-Controlling Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Non-Controlling Party Participation Rights.* With respect to a Tax Contest of any Tax Return that could result in a Tax liability that is allocated under this Agreement, (i) the Non-Controlling Party shall, at its own cost and expense, be entitled to participate in such Tax Contest and to provide comments and suggestions to the Controlling Party, such comments and suggestions not to be unreasonably rejected, (ii) the Controlling Party shall keep the Non-Controlling Party updated and informed, and shall consult with the Non-Controlling Party, (iii) the Controlling Party shall act in good faith with a view to the merits in connection with the Tax Contest, and (iv) the Controlling Party shall not settle or compromise such Tax Contest without the prior written consent of the Non-Controlling Party (which consent shall not be unreasonably withheld).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 *Cooperation Regarding Tax Contests.* The Parties shall provide each other with all information relating to a Tax Contest which is needed by the other Party or Parties to handle, participate in, defend, settle or contest the Tax Contest. At the request of any party, the other Parties shall take any action (*e.g.*, executing a power of attorney) that is reasonably necessary in order for the requesting Party to exercise its rights under this Agreement in respect of a Tax Contest. Spinco shall assist MSG Entertainment, and MSG Entertainment shall assist Spinco, in taking any remedial actions that are necessary or desirable to minimize the effects of any adjustment made by a Tax Authority. The Indemnifying Party or Parties shall reimburse the Indemnified Party or Parties for any reasonable out-of-pocket costs and expenses incurred in complying with this Section 5.4.

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**SECTION 6. Tax Records**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 *Retention of Tax Records.* Each of MSG Entertainment and Spinco shall preserve, and shall cause their respective Subsidiaries to preserve, all Tax Records that are in their possession, and that could affect the liability of any member of the other Group for Taxes, for as long as the contents thereof may become material in the administration of any matter under applicable Tax Law, but in any event until the later of (x) the expiration of any applicable statute of limitations, as extended, and (y) seven years after the Distribution Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 *Access to Tax Records.* Spinco shall make available, and cause its Subsidiaries to make available, to members of the MSG Entertainment Group for inspection and copying the portion of any Tax Record in their possession that relates to a Pre-Distribution Period or Post-Distribution Period and which is reasonably necessary for the preparation, review, approval or filing of a Tax Return by a member of the MSG Entertainment Group or any of their Affiliates or with respect to any Tax Contest with respect to such return. MSG Entertainment shall make available, and cause its Subsidiaries to make available, to members of the Spinco Group for inspection and copying the portion of any Tax Record in their possession that relates to a Pre-Distribution Period and which is reasonably necessary for the preparation, review, approval or filing of a Tax Return by a member of the Spinco Group or any of their Affiliates or with respect to any Tax Contest with respect to such return.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 *Confidentiality.* Each party hereby agrees that it will hold, and shall use its reasonable best efforts to cause its officers, directors, employees, accountants, counsel, consultants, advisors and agents to hold, in confidence all records and information prepared and shared by and among the Parties in carrying out the intent of this Agreement, except as may otherwise be necessary in connection with the filing of Tax Returns or any administrative or judicial proceedings relating to Taxes or unless disclosure is compelled by a governmental authority. Information and documents of one Party (the "*Disclosing Party*") shall not be deemed to be confidential for purposes of this Section 6.3 to the extent that such information or document (i) is previously known to or in the possession of the other Party or Parties (the "*Receiving Party*") and is not otherwise subject to a requirement to be kept confidential, (ii) becomes publicly available by means other than unauthorized disclosure under this Agreement by the Receiving Party or (iii) is received from a third party without, to the knowledge of the Receiving Party after reasonable diligence, a duty of confidentiality owed to the Disclosing Party.

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**SECTION 7. Representations and Covenants**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 *Covenants of MSG Entertainment and Spinco*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) MSG Entertainment hereby covenants that, to the fullest extent permissible under U.S. federal income and state Tax Laws, it will, and will cause the members of the MSG Entertainment Group to, treat the applicable Transactions in accordance with the Agreed Treatment. Spinco hereby covenants that, to the fullest extent permissible under U.S. federal income and state Tax Laws, it will, and will cause each Subsidiary of Spinco to, treat the applicable Transactions in accordance with the Agreed Treatment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) MSG Entertainment further covenants that, as of and following the date hereof, MSG Entertainment shall not and shall cause the members of the MSG Entertainment Group not to take any action that (or fail to take any action the omission of which) would be inconsistent with the applicable Transactions qualifying for the Agreed Treatment or that would preclude the applicable Transactions from qualifying for the Agreed Treatment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Spinco further covenants that, as of and following the date hereof, Spinco shall not and shall cause its Subsidiaries not to take any action that (or fail to take any action the omission of which) would be inconsistent with the applicable Transactions qualifying for the Agreed Treatment or that would preclude the applicable Transactions from qualifying for the Agreed Treatment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 *Covenants of Spinco*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Without limiting the generality of the provisions of Section 7.1, Spinco, on behalf of itself and its Subsidiaries, agrees and covenants that Spinco and each of its Subsidiaries will not, directly or indirectly, during the Restriction Period, (i) take any action that would result in Spinco's ceasing to be engaged in the active conduct of the Spinco Business with the result that Spinco is not engaged in the active conduct of a trade or business within the meaning of section 355(b)(2) of the Code, (ii) redeem or otherwise repurchase (directly or through an Affiliate of Spinco) any of Spinco's outstanding stock, other than through stock purchases meeting the requirements of section 4.05(1)(b) of Revenue Procedure 96-30, 1996-1 C.B. 696 (but it being understood, for the avoidance of doubt, that no agreement or covenant under this Section 7.3(a)(ii) is being entered with respect to Compensatory Equity Net Share Settlements), (iii) amend the certificate of incorporation (or other organizational documents) of Spinco that would affect the relative voting rights of separate classes of Spinco's stock or would convert one class of Spinco's stock into another class of its stock, (iv) liquidate (within the meaning of section 331 of the Code and the Treasury Regulations promulgated thereunder) or partially liquidate Spinco, (v) merge Spinco with any other corporation (other than in a transaction that does not affect the relative shareholding of Spinco shareholders), sell or otherwise dispose of (other than in the ordinary course of business) the assets of Spinco and its Subsidiaries, or take any other action or actions if such merger, sale, other disposition or other action or actions in the aggregate would have the effect that one or more Persons acquire (or have the right to acquire), directly or indirectly, as part of a plan or series of related transactions, assets representing one-half or more of the asset value of the Spinco Group, or (vi) take any other action or actions that in the aggregate would have the effect that one or more Persons acquire (or have the right to acquire), directly or indirectly, as part of a plan or series of related transactions, stock of Spinco representing a Fifty-Percent Equity Interest in Spinco (as determined for purposes of section 355(e) of the Code), other than a Permitted Acquisition.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 *Covenants of MSG Entertainment*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Without limiting the generality of the provisions of Section 7.1, MSG Entertainment, on behalf of itself and each member of the MSG Entertainment Group, agrees and covenants that MSG Entertainment and each member of the MSG Entertainment Group will not, directly or indirectly, during the Restriction Period, (i) take any action that would result in MSG Entertainment's ceasing to be engaged in the active conduct of the MSG Entertainment Business with the result that MSG Entertainment is not engaged in the active conduct of a trade or business within the meaning of section 355(b)(2) of the Code, (ii) redeem or otherwise repurchase (directly or through an Affiliate of MSG Entertainment) any of MSG Entertainment's outstanding stock, other than through stock purchases meeting the requirements of section 4.05(1)(b) of Revenue Procedure 96-30, 1996-1 C.B. 696 (but it being understood, for the avoidance of doubt, that no agreement or covenant under this Section 7.4(a)(ii) is being entered with respect to Compensatory Equity Net Share Settlements), (iii) amend the certificate of incorporation (or other organizational documents) of MSG Entertainment that would affect the relative voting rights of separate classes of MSG Entertainment's stock or would convert one class of MSG Entertainment's stock into another class of its stock, (iv) liquidate (within the meaning of section 331 of the Code and the Treasury Regulations promulgated thereunder) or partially liquidate MSG Entertainment, (v) merge MSG Entertainment with any other corporation (other than in a transaction that does not affect the relative shareholding of MSG Entertainment shareholders), sell or otherwise dispose of (other than in the ordinary course of business) the assets of MSG Entertainment and its Subsidiaries, or take any other action or actions if such merger, sale, other disposition or other action or actions in the aggregate would have the effect that one or more Persons acquire (or have the right to acquire), directly or indirectly, as part of a plan or series of related transactions, assets representing one-half or more of the asset value of the MSG Entertainment Group, or (vi) take any other action or actions that in the aggregate would have the effect that one or more Persons acquire (or have the right to acquire), directly or indirectly, as part of a plan or series of related transactions, stock of MSG Entertainment representing a Fifty-Percent Equity Interest in MSG Entertainment (as determined for purposes of section 355(e) of the Code).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Nothing in this Section 7 shall be construed to give Spinco or any Affiliates of Spinco any right to remedies other than indemnification for any increase in the actual Tax liability (and/or decrease in Tax Benefit) of Spinco or any Affiliate of Spinco that results from MSG Entertainment Group's failure to comply with the covenants and representations in this Section 7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 *Exceptions*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Exceptions with Respect to Spinco.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding Section 7.3 above, Spinco or any of its Subsidiaries may take a Spinco Restricted Action if MSG Entertainment consents in writing to such Spinco Restricted Action, or if Spinco provides MSG Entertainment with Satisfactory Guidance concluding that such Spinco Restricted Action will not alter the Tax-Free Status of the Distribution in respect of MSG Entertainment and MSG Entertainment's shareholders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Spinco and each of its Subsidiaries agree that MSG Entertainment and each MSG Entertainment Affiliate are to have no liability for any Tax resulting from any Spinco Restricted Actions permitted pursuant to this Section 7.5(a) and, subject to Section 2.2, agree to indemnify and hold harmless each MSG Indemnified Party against any such Tax. Spinco shall bear all costs incurred by it, and all reasonable costs incurred by MSG Entertainment, in connection with requesting and/or obtaining any Satisfactory Guidance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Exceptions with Respect to MSG Entertainment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding Section 7.4(a) above, MSG Entertainment or any of its Subsidiaries may take a MSG Restricted Action if Spinco consents in writing to such MSG Restricted Action, or if MSG Entertainment provides Spinco with Satisfactory Guidance concluding that such MSG Restricted Action will not alter the Tax-Free Status of the Distribution in respect of Spinco and Spinco's shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) MSG Entertainment and each of its Subsidiaries agree that Spinco and each Spinco Affiliate are to have no liability for any Tax resulting from any MSG Restricted Actions permitted pursuant to this Section 7.5(b) and, subject to Section 2.2, agree to indemnify and hold harmless each Spinco Indemnified Party against any such Tax. MSG Entertainment shall bear all costs incurred by it, and all reasonable costs incurred by Spinco, in connection with requesting and/or obtaining any Satisfactory Guidance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 *Injunctive Relief.* For the avoidance of doubt, MSG Entertainment shall have the right to seek injunctive relief to prevent Spinco or any of its Subsidiaries from taking any action that is not consistent with the covenants of the Spinco or any of its Subsidiaries under Section 7.1 or 7.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 *Further Assurances*. For the avoidance of doubt, (i) neither MSG Entertainment nor a member of the MSG Entertainment Group shall take any action on the Distribution Date that would result in an increase of the actual Tax liability (and/or decrease of any Tax Benefit) of Spinco or any of its Subsidiaries, other than in the ordinary course of business, except for actions undertaken in connection with the Distribution, which actions are described in the Tax Opinion or the Tax Opinion Representations, and (ii) neither Spinco nor any of its Subsidiaries shall take any action on the Distribution Date that would result in an increase of the actual Tax liability (and/or decrease of any Tax Benefit) of MSG Entertainment or a member of the MSG Entertainment Group, other than in the ordinary course of business, except for actions undertaken in connection with the Distribution, which actions are described in the Tax Opinion or the Tax Opinion Representations.

**SECTION 8. General Provisions**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 *Construction*. This Agreement shall constitute the entire agreement (except insofar and to the extent that it specifically and expressly references the Distribution Agreement and any other Ancillary Agreement) between the Parties with respect to the subject matter hereof and shall supersede all previous negotiations, commitments and writings with respect to such subject matter.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 *Ancillary Agreements.* This Agreement is not intended to address, and should not be interpreted to address, the matters specifically and expressly covered by the Distribution Agreement or any other Ancillary Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 *Counterparts.* This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more such counterparts have been signed by each of the Parties and delivered to the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 *Notices.* All notices and other communications hereunder shall be in writing, shall reference this Agreement and shall be hand delivered, mailed by registered or certified mail (return receipt requested), or sent by electronic mail, with receipt requested and confirmed, to the Parties at the following addresses (or at such other addresses for a Party as shall be specified by like notice) and will be deemed given on the date on which such notice is received:

To MSG Entertainment:

Madison Square Garden Entertainment Corp. (or, after the applicable name change, MSG Sphere Corp.)

Two Penn Plaza

New York, New York 10121

Attention: General Counsel

Email: [•]

*with copy to:* 

MSGE Spinco, Inc. (or, after the applicable name change, Madison Square Garden Entertainment Corp.)

Two Penn Plaza

New York, New York 10121

Attention: General Counsel

Email: [•]

To Spinco:

MSGE Spinco, Inc. (or, after the applicable name change, Madison Square Garden Entertainment Corp.)

Two Penn Plaza

New York, New York 10121

Attention: General Counsel

Email: [•]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 *Amendments.* This Agreement may not be modified or amended except by an agreement in writing signed by each of the Parties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 *Assignment.* This Agreement shall not be assignable, in whole or in part, directly or indirectly, by any Party without the prior written consent of the other Party, and any attempt to assign any rights or obligations arising under this Agreement without such consent shall be void; <u>provided</u> that, subject to compliance with Section 7, if applicable, either Party may assign this Agreement to a purchaser of all or substantially all of the properties and assets of such Party so long as such purchaser expressly assumes, in a written instrument in form reasonably satisfactory to the non-assigning Party, the due and punctual performance or observance of every agreement and covenant of this Agreement on the part of the assigning Party to be performed or observed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 *Successors and Assigns.* The provisions to this Agreement shall be binding upon, inure to the benefit of and be enforceable by the Parties and their respective successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8 *Change in Law.* Any reference to a provision of the Code or any other Tax Law shall include a reference to any applicable successor provision or law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9 *Authorization, Etc.* Each of the Parties hereto hereby represents and warrants that it has the power and authority to execute, deliver and perform this Agreement, that this Agreement has been duly authorized by all necessary corporate action on the part of such Party, that this Agreement constitutes a legal, valid and binding obligation of such Party and that the execution, delivery and performance of this Agreement by such Party does not contravene or conflict with any provision of law or the Party's charter or bylaws or any agreement, instrument or order binding such Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10 *Termination.* This Agreement may be terminated at any time prior to the Distribution by and in the sole discretion of MSG Entertainment without the approval of Spinco or the stockholders of MSG Entertainment. In the event of such termination, no Party shall have any liability of any kind to any other Party or any other Person. After the Distribution, this Agreement may not be terminated except by an agreement in writing signed by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.11 *Subsidiaries.* Each of the Parties shall cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth herein to be performed by any entity that is contemplated to be a Subsidiary of such Party after the Distribution Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.12 *Third-Party Beneficiaries.* Except with respect to MSG Indemnified Parties and Spinco Indemnified Parties, and in each case, only where and as indicated herein, this Agreement is solely for the benefit of the Parties and their respective Subsidiaries and Affiliates and should not be deemed to confer upon any other Person any remedy, claim, liability, reimbursement, cause of action or other right in excess of those existing without reference to this Agreement. Notwithstanding anything in this Agreement to the contrary, this Agreement is not intended to confer upon any Spinco Indemnified Parties any rights or remedies against Spinco hereunder, and this Agreement is not intended to confer upon any MSG Indemnified Parties any rights or remedies against MSG Entertainment hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.13 *Double Recovery.* Nothing in this Agreement is intended to confer to or impose upon any Party a duplicative right, entitlement, obligation or recovery with respect to any matter arising out of the same facts and circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.14 *Titles and Headings.* Titles and headings to Sections herein are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.15 *Governing Law.* This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed in the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.16 *Waiver of Jury Trial.* The Parties hereby irrevocably waive any and all right to trial by jury in any legal proceeding arising out of or related to this Agreement or the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.17 *Severability.* In the event any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired thereby. The Parties shall endeavor in good faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions, the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.18 *No Strict Construction; Interpretation*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of MSG Entertainment and Spinco acknowledges that this Agreement has been prepared jointly by the Parties hereto and shall not be strictly construed against any Party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The table of contents and headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words "include", "includes" or "including" are used in this Agreement, they shall be deemed to be followed by the words "without limitation". The words "hereof", "herein" and "hereunder" and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein. The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such term. Any agreement, instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement, instrument or statute as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and references to all attachments thereto and instruments incorporated therein. References to a Person are also to its permitted successors and assigns.

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IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by the respective officers as of the date set forth above.

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| | |
|:---|:---|
| MADISON SQUARE ENTERTAINMENT CORP.<br> (To be renamed MSG Sphere Corp.) | MADISON SQUARE ENTERTAINMENT CORP.<br> (To be renamed MSG Sphere Corp.) |
| By: |  |
|  | Name: |
|  | Title: |

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| | |
|:---|:---|
| MSGE SPINCO, INC.<br> (To be renamed Madison Square Garden Entertainment Corp.) | MSGE SPINCO, INC.<br> (To be renamed Madison Square Garden Entertainment Corp.) |
| By: |  |
|  | Name: |
|  | Title: |

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[Signature Page to Tax Disaffiliation Agreement]

## Exhibit 10.3

***Exhibit 10.3***

EMPLOYEE MATTERS AGREEMENT

BY AND BETWEEN

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

(TO BE RENAMED MSG SPHERE CORP.)

AND

MSGE SPINCO, INC.

(TO BE RENAMED MADISON SQUARE GARDEN ENTERTAINMENT CORP.)

Dated as of [●], 2023

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**TABLE OF CONTENTS** 

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| | | |
|:---|:---|:---|
|  |  | **Page** |
| ARTICLE I | ARTICLE I | ARTICLE I |
| DEFINITIONS | DEFINITIONS | DEFINITIONS |
|  Section 1.1 | Definitions | 1 |
|  Section 1.2 | General Interpretive Principles | 8 |
| ARTICLE II | ARTICLE II | ARTICLE II |
| GENERAL PRINCIPLES | GENERAL PRINCIPLES | GENERAL PRINCIPLES |
|  Section 2.1 | Assumption and Retention of Liabilities; Related Assets | 9 |
|  Section 2.2 | MSG Entertainment Participation in Spinco Plans | 10 |
|  Section 2.3 | Service Recognition | 10 |
| ARTICLE III | ARTICLE III | ARTICLE III |
| U.S. QUALIFIED DEFINED BENEFIT PLAN | U.S. QUALIFIED DEFINED BENEFIT PLAN | U.S. QUALIFIED DEFINED BENEFIT PLAN |
|  Section 3.1 | Cash Balance Pension Plan | 12 |
| ARTICLE IV | ARTICLE IV | ARTICLE IV |
| U.S. QUALIFIED DEFINED CONTRIBUTION PLANS | U.S. QUALIFIED DEFINED CONTRIBUTION PLANS | U.S. QUALIFIED DEFINED CONTRIBUTION PLANS |
|  Section 4.1 | 401(k) Plan | 12 |
|  Section 4.2 | Investment and Benefits Committee | 12 |
| ARTICLE V | ARTICLE V | ARTICLE V |
| NONQUALIFIED PLANS | NONQUALIFIED PLANS | NONQUALIFIED PLANS |
|  Section 5.1 | Excess Cash Balance Pension Plan | 13 |
|  Section 5.2 | Excess Retirement Plan | 13 |
|  Section 5.3 | Excess Savings Plan | 13 |
|  Section 5.4 | Executive Deferred Compensation Plan | 14 |
|  Section 5.5 | Transferred Employees | 14 |
|  Section 5.6 | No Separation from Service | 15 |
| ARTICLE VI | ARTICLE VI | ARTICLE VI |
| U.S. HEALTH AND WELFARE PLANS | U.S. HEALTH AND WELFARE PLANS | U.S. HEALTH AND WELFARE PLANS |
|  Section 6.1 | Health and Welfare Plans Maintained by Spinco Prior to the Distribution Date | 15 |
|  Section 6.2 | Flexible Spending Accounts Plan | 16 |
|  Section 6.3 | Legal Plan | 16 |
|  Section 6.4 | COBRA and HIPAA | 16 |
|  Section 6.5 | Liabilities | 16 |
|  Section 6.6 | Time-Off Benefits | 18 |
|  Section 6.7 | Severance Pay Plans | 19 |

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–i–

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| | | |
|:---|:---|:---|
| ARTICLE VII | ARTICLE VII | ARTICLE VII |
| EQUITY COMPENSATION | EQUITY COMPENSATION | EQUITY COMPENSATION |
|  Section 7.1 | Equity Compensation | 19 |
|  Section 7.2 | Taxes and Withholding | 19 |
|  Section 7.3 | Cooperation | 21 |
|  Section 7.4 | SEC Registration | 21 |
|  Section 7.5 | Savings Clause | 21 |
| ARTICLE VIII | ARTICLE VIII | ARTICLE VIII |
| ADDITIONAL COMPENSATION AND BENEFITS MATTERS | ADDITIONAL COMPENSATION AND BENEFITS MATTERS | ADDITIONAL COMPENSATION AND BENEFITS MATTERS |
|  Section 8.1 | Cash Incentive Awards | 22 |
|  Section 8.2 | Individual Arrangements | 22 |
|  Section 8.3 | Non-Competition | 23 |
|  Section 8.4 | Collective Bargaining | 23 |
|  Section 8.5 | Union Dues; Severance and Fringe Benefits | 23 |
|  Section 8.6 | Director Programs | 23 |
|  Section 8.7 | Section 409A | 24 |
| ARTICLE IX | ARTICLE IX | ARTICLE IX |
| INDEMNIFICATION | INDEMNIFICATION | INDEMNIFICATION |
|  Section 9.1 | Indemnification | 24 |
| ARTICLE X | ARTICLE X | ARTICLE X |
| GENERAL AND ADMINISTRATIVE | GENERAL AND ADMINISTRATIVE | GENERAL AND ADMINISTRATIVE |
|  Section 10.1 | Sharing of Information | 24 |
|  Section 10.2 | Reasonable Efforts/Cooperation | 25 |
|  Section 10.3 | Non-Termination of Employment; No Third-Party Beneficiaries | 25 |
|  Section 10.4 | Consent of Third Parties | 25 |
|  Section 10.5 | Access to Employees | 25 |
|  Section 10.6 | Beneficiary Designation/Release of Information/Right to Reimbursement | 26 |
|  Section 10.7 | Not a Change in Control | 26 |
| ARTICLE XI | ARTICLE XI | ARTICLE XI |
| MISCELLANEOUS | MISCELLANEOUS | MISCELLANEOUS |
|  Section 11.1 | Effect If Distribution Does Not Occur | 26 |
|  Section 11.2 | Complete Agreement; Construction | 26 |
|  Section 11.3 | Counterparts | 26 |
|  Section 11.4 | Survival of Agreements | 26 |
|  Section 11.5 | Notices | 26 |
|  Section 11.6 | Waivers | 27 |
|  Section 11.7 | Amendments | 27 |
|  Section 11.8 | Assignment | 27 |
|  Section 11.9 | Successors and Assigns | 27 |

---

–ii–

------

---

| | | |
|:---|:---|:---|
|  Section 11.10 | Subsidiaries | 27.0 |
|  Section 11.11 | Title and Headings | 27.0 |
|  Section 11.12 | Governing Law | 28.0 |
|  Section 11.13 | Waiver of Jury Trial | 28.0 |
|  Section 11.14 | Specific Performance | 28.0 |
|  Section 11.15 | Severability | 28.0 |

---

–iii–

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**<u>Exhibits</u>**

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| | |
|:---|:---|
|  Exhibit A | MSG Entertainment Retained Retirement Plans |
|  Exhibit B | Spinco Retained Retirement Plans |
|  Exhibit C | MSG Entertainment Retained Multi-Employer Benefit Plans |
|  Exhibit D | Spinco Retained Multi-Employer Benefit Plans |
|  Exhibit E | Spinco Health & Welfare Plans |
|  Exhibit F | MSG Entertainment Union Relationships |
|  Exhibit G | Spinco Union Relationships |
|  Exhibit H | FY 2024 Annual Cash Incentive Awards |

---

–iv–

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**EMPLOYEE MATTERS AGREEMENT** 

**THIS EMPLOYEE MATTERS AGREEMENT** (this "<u>Agreement</u>"), dated as of [●], 2023, is by and between Madison Square Garden Entertainment Corp. (to be renamed MSG Sphere Corp. at the Distribution), a Delaware corporation ("<u>MSG Entertainment</u>"), and MSGE Spinco, Inc. (to be renamed Madison Square Garden Entertainment Corp. at the Distribution), a Delaware corporation and an indirect wholly-owned subsidiary of MSG Entertainment ("<u>Spinco</u>" and, together with MSG Entertainment, each, a "<u>Party</u>" and collectively, the "<u>Parties</u>").

**RECITALS** 

**WHEREAS**, the Board of Directors of MSG Entertainment determined that it is in the best interests of MSG Entertainment and its stockholders to separate the business of Spinco, as more fully described in Spinco's registration statement on Form 10 (collectively, the "<u>Spinco Business</u>"), from MSG Entertainment's other businesses, on the terms and subject to the conditions set forth in the Distribution Agreement (as defined below);

**WHEREAS**, in order to effectuate the foregoing, MSG Entertainment and Spinco have entered into a Distribution Agreement, dated as of [●], 2023 (the "<u>Distribution Agreement</u>"), pursuant to which and subject to the terms and conditions set forth therein, the Spinco Business shall be separated from the MSG Entertainment Business, and approximately 67% of the issued and outstanding shares of Spinco Common Stock beneficially owned by MSG Entertainment shall be distributed (the "<u>Distribution</u>") to the holders of the issued and outstanding MSG Entertainment Common Stock, on the basis of one share of Spinco Class A Common Stock for every one share of MSG Entertainment Class A Common Stock and one share of Spinco Class B Common Stock for every one share of MSG Entertainment Class B Common Stock; and

**WHEREAS**, MSG Entertainment and Spinco have agreed to enter into this Agreement for the purpose of allocating Assets, Liabilities and responsibilities with respect to certain employee compensation and benefit plans, programs and arrangements, and certain employment matters between and among them.

**NOW**, **THEREFORE**, in consideration of the premises and of the respective agreements and covenants contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally bound, agree as follows:

**ARTICLE I** 

**DEFINITIONS** 

**Section 1.1 <u>Definitions</u>**. As used in this Agreement, the following terms shall have the meanings set forth below:

"<u>401(k) Plan</u>" shall have the meaning ascribed thereto in <u>Section</u> <u>4.1</u> of this Agreement.

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"<u>Action</u>" means any claim, demand, complaint, charge, action, cause of action, suit, countersuit, arbitration, litigation, inquiry, proceeding or investigation by or before any Governmental Authority or any arbitration or mediation tribunal.

"<u>Actual Benefit Cost</u>" shall have the meaning set forth in <u>Section</u> <u>6.5(b)</u>.

"<u>Agreement</u>" shall have the meaning ascribed thereto in the preamble to this Agreement, including all the exhibits hereto, and all amendments made hereto from time to time.

"<u>Asset</u>" means any right, property or asset, whether real, personal or mixed, tangible or intangible, of any kind, nature and description, whether accrued, contingent or otherwise, and wherever situated and whether or not carried or reflected, or required to be carried or reflected, on the books of any Person.

"<u>Cash Balance Pension Plan</u>" means the MSG Entertainment Group, LLC Cash Balance Pension Plan or any successor thereto.

"<u>COBRA</u>" means the continuation coverage requirements for "group health plans" under Title X of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and as codified in Section 4980B of the Code and Sections 601 through 608 of ERISA.

"<u>Code</u>" means the U.S. Internal Revenue Code of 1986, as amended.

"<u>Control</u>" means, as to any Person, the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities or other interests, by contract or otherwise.

"<u>Distribution</u>" shall have the meaning ascribed thereto in the recitals to this Agreement, as the same is further described in the Distribution Agreement.

"<u>Distribution Agreement</u>" shall have the meaning ascribed thereto in the recitals to this Agreement.

"<u>Distribution Date</u>" shall have the meaning ascribed thereto in the Distribution Agreement.

"<u>DOL</u>" means the U.S. Department of Labor.

"<u>Effective Date</u>" shall have the meaning ascribed thereto in <u>Section</u> <u>6.1(a)</u> of this Agreement.

"<u>Equity Compensation</u>" means, collectively, the MSG Entertainment Options, MSG Entertainment RSUs, Spinco Options, and Spinco RSUs.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended.

"<u>Estimated Benefit Cost</u>" shall have the meaning set forth in <u>Section</u> <u>6.5(b)</u>.

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"<u>Former MSG Entertainment Employee</u>" means with respect to an individual whose MSG Entertainment Group employment terminated on or after the Distribution Date, any former employee of any member of the MSG Entertainment Group.

Any individual who is an employee of any member of the Spinco Group on the Distribution Date or a Former Spinco Employee shall not be a Former MSG Entertainment Employee.

"<u>Former Spinco Employee</u>" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. any individual whose MSG Entertainment Group employment terminated prior to the Distribution Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. with respect to an individual whose Spinco Group employment terminated on or after the Distribution Date, any
former employee of any member of the Spinco Group.

Any individual who is an employee of any member of the MSG Entertainment Group on the Distribution Date or a Former MSG Entertainment Employee shall not be a Former Spinco Employee.

"<u>Governmental Authority</u>" means any federal, state, local, foreign or international court, government, department, commission, board, bureau, agency, official, the NYSE, NASDAQ or other regulatory, administrative or governmental authority.

"<u>Group</u>" means the MSG Entertainment Group and/or the Spinco Group, as the context requires.

"<u>HIPAA</u>" means the Health Insurance Portability and Accountability Act of 1996, as amended.

"<u>Information</u>" shall mean all information, whether in written, oral, electronic or other tangible or intangible form, stored in any medium, including non-public financial information, studies, reports, records, books, accountants' work papers, contracts, instruments, flow charts, data, communications by or to attorneys, memos and other materials prepared by attorneys and accountants or under their direction (including attorney work product) and other financial, legal, employee or business information or data.

"<u>IRS</u>" means the U.S. Internal Revenue Service.

"<u>Law</u>" means all laws, statutes and ordinances and all regulations, rules and other pronouncements of Governmental Authorities having the effect of law of the United States, any foreign country, or any domestic or foreign state, province, commonwealth, city, country, municipality, territory, protectorate, possession or similar instrumentality, or any Governmental Authority thereof.

"<u>Liabilities</u>" means all debts, liabilities, obligations, responsibilities, Losses, damages (whether compensatory, punitive, or treble), fines, penalties and sanctions, absolute or

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contingent, matured or unmatured, liquidated or unliquidated, foreseen or unforeseen, joint, several or individual, asserted or unasserted, accrued or unaccrued, known or unknown, whenever arising, including without limitation those arising under or in connection with any Law, Action, threatened Action, order or consent decree of any Governmental Authority or any award of any arbitration tribunal, and those arising under any contract, guarantee, commitment or undertaking, whether sought to be imposed by a Governmental Authority, private party, or a Party, whether based in contract, tort, implied or express warranty, strict liability, criminal or civil statute, or otherwise, and including any costs, expenses, interest, attorneys' fees, disbursements and expense of counsel, expert and consulting fees, fees of third-party administrators and costs related thereto or to the investigation or defense thereof.

"<u>Loss</u>" means any claim, demand, complaint, damages (whether compensatory, punitive, consequential, treble or other), fines, penalties, loss, liability, payment, cost or expense arising out of, relating to or in connection with any Action.

"<u>MSG Entertainment</u>" shall have the meaning ascribed thereto in the preamble to this Agreement.

"<u>MSG Entertainment Business</u>" means all businesses and operations conducted by the MSG Entertainment Group from time to time, whether prior to, at or after the Distribution Date, other than the Spinco Business.

"<u>MSG Entertainment Common Stock</u>" means the issued and outstanding Class A Common Stock, par value $0.01 per share, of MSG Entertainment and Class B Common Stock, par value $0.01 per share, of MSG Entertainment.

"<u>MSG Entertainment Compensation Committee</u>" means the Compensation Committee of the Board of Directors of MSG Entertainment.

"<u>MSG Entertainment Deferred Compensation Plan</u>" shall have the meaning ascribed thereto in <u>Section</u> <u>5.4(a)</u> of this Agreement.

"<u>MSG Entertainment Director</u>" means any individual who is a current or former non-employee director of MSG Entertainment as of the Distribution Date.

"<u>MSG Entertainment Employee</u>" means any individual who, immediately following the Distribution Date, will be employed by MSG Entertainment or any member of the MSG Entertainment Group in a capacity considered by MSG Entertainment to be common law employment, including active employees and employees on vacation and approved leaves of absence (including maternity, paternity, family, sick, short-term or long-term disability leave, qualified military service under the Uniformed Services Employment and Reemployment Rights Act of 1994, and leave under the Family Medical Leave Act and other approved leaves).

"<u>MSG Entertainment Excess Cash Balance Plan</u>" shall have the meaning ascribed thereto in <u>Section</u> <u>5.1(a)</u> of this Agreement.

"<u>MSG Entertainment Excess Savings Plan</u>" shall have the meaning ascribed thereto in <u>Section</u> <u>5.3(a)</u>.

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"<u>MSG Entertainment Excess Retirement Plan</u>" shall have the meaning ascribed thereto in <u>Section</u> <u>5.2(a)</u> of this Agreement.

"<u>MSG Entertainment Flexible Spending Accounts Plan</u>" shall have the meaning ascribed thereto in <u>Section</u> <u>6.2</u> of this Agreement.

"<u>MSG Entertainment Group</u>" means, as of the Distribution Date, MSG Entertainment and each of its former and current Subsidiaries (or any predecessor organization thereof), and any corporation or entity that may become part of such Group from time to time thereafter. The MSG Entertainment Group shall not include any member of the Spinco Group.

"<u>MSG Entertainment Health</u> <u>& Welfare Plans</u>" shall have the meaning ascribed thereto in <u>Section</u> <u>6.1(a)</u> of this Agreement.

"<u>MSG Entertainment Liabilities</u>" means all Liabilities assumed or retained by any member of the MSG Entertainment Group pursuant to this Agreement.

"<u>MSG Entertainment Option</u>" means an option to buy MSG Entertainment Class A Common Stock granted pursuant to an MSG Entertainment Share Plan (including the options adjusted for the Distribution) and outstanding as of the Distribution Date (or shortly thereafter to the extent necessary to determine any adjustments in connection with the Distribution).

"<u>MSG Entertainment Participant</u>" means any individual who, immediately following the Distribution Date, is an MSG Entertainment Employee, a Former MSG Entertainment Employee or a beneficiary, dependent or alternate payee of any of the foregoing.

"<u>MSG Entertainment Plan</u>" means any Plan sponsored, maintained or contributed to by MSG Entertainment or any of its Subsidiaries, including the MSG Entertainment Retained Retirement Plans, MSG Entertainment Share Plans, MSG Entertainment Flexible Spending Accounts Plan, MSG Entertainment Health & Welfare Plans and MSG Entertainment Retained Multi-Employer Benefit Plans.

"<u>MSG Entertainment Retained Multi-Employer Benefit Plans</u>" means the multi-employer plans that are listed on <u>Exhibit C</u>.

"<u>MSG Entertainment Retained Retirement Plans</u>" means the retirement plans that are listed on <u>Exhibit A</u>.

"<u>MSG Entertainment RSU</u>" means a restricted stock unit (including, for the avoidance of doubt, any restricted stock unit that is subject to performance vesting conditions) representing an unfunded and unsecured promise to deliver a share of MSG Entertainment Class A Common Stock, or cash or other property equal in value to the share of MSG Entertainment Class A Common Stock, that is granted pursuant to an MSG Entertainment Share Plan and outstanding as of the Distribution Date (or shortly thereafter to the extent necessary to determine any adjustments in connection with the Distribution).

"<u>MSG Entertainment Share Plans</u>" means, collectively, any stock option or stock incentive compensation plan or arrangement, including equity award agreements, maintained before the Distribution Date for employees, officers or non-employee directors of MSG Entertainment or its Subsidiaries or affiliates, as amended.

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"<u>NASDAQ</u>" means The NASDAQ Stock Market LLC.

"<u>NYSE</u>" means the New York Stock Exchange.

"<u>Participating Company</u>" means MSG Entertainment and any Person (other than a natural person) participating in an MSG Entertainment Plan.

"<u>Party</u>" and "<u>Parties</u>" shall have the meanings ascribed thereto in the preamble to this Agreement.

"<u>Person</u>" means any natural person, corporation, business trust, limited liability company, joint venture, association, company, partnership or governmental, or any agency or political subdivision thereof.

"<u>Plan</u>" means, with respect to an entity, each plan, program, arrangement, agreement or commitment that is an employment, consulting, non-competition or deferred compensation agreement, or an executive compensation, incentive bonus or other bonus, employee pension, profit-sharing, savings, retirement, supplemental retirement, stock option, stock purchase, stock appreciation rights, restricted stock, other equity-based compensation, severance pay, salary continuation, life, health, hospitalization, sick leave, vacation pay, disability or accident insurance plan, corporate-owned or key-man life insurance or other employee benefit plan, program, arrangement, agreement or commitment, including any "employee benefit plan" (as defined in Section 3(3) of ERISA), entered into, sponsored or maintained by such entity (or to which such entity contributes or is required to contribute).

"<u>Shared Executives</u>" means those individuals who, as of the Distribution Date, are employed or engaged in a senior executive capacity by both MSG Entertainment and Spinco.

"<u>Spinco</u>" shall have the meaning ascribed thereto in the preamble to this Agreement.

"<u>Spinco Business</u>" shall have the meaning ascribed thereto in the Distribution Agreement.

"<u>Spinco Common Stock</u>" means the outstanding Class A Common Stock, par value $0.01 per share, of Spinco and Class B Common Stock, par value $0.01 per share, of Spinco.

"<u>Spinco Deferred Compensation Plan</u>" shall have the meaning ascribed thereto in <u>Section</u> <u>5.4(a)</u> of this Agreement.

"<u>Spinco Director</u>" means any individual who is a current non-employee director of Spinco as of the Distribution Date.

"<u>Spinco Employee</u>" means any individual who, immediately following the Distribution Date, will be employed by Spinco or any member of the Spinco Group in a capacity considered by Spinco to be common law employment, including active employees and employees on

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vacation and approved leaves of absence (including maternity, paternity, family, sick, short-term or long-term disability leave, qualified military service under the Uniformed Services Employment and Reemployment Rights Act of 1994, and leave under the Family Medical Leave Act and other approved leaves).

"<u>Spinco Excess Cash Balance Plan</u>" shall have the meaning ascribed thereto in <u>Section</u> <u>5.1(a)</u>.

"<u>Spinco Excess Savings Plan</u>" shall have the meaning ascribed thereto in <u>Section</u> <u>5.3(a)</u>.

"<u>Spinco Excess Retirement Plan</u>" shall have the meaning ascribed thereto in <u>Section</u> <u>5.2</u>.

"<u>Spinco Flexible Spending Accounts Plan</u>" shall have the meaning ascribed thereto in <u>Section</u> <u>6.2</u> of this Agreement.

"<u>Spinco Group</u>" means, as of the Distribution Date, Spinco and each of its former and current Subsidiaries (or any predecessor organization thereof), and any corporation or entity that may become part of such Group from time to time thereafter. The Spinco Group shall not include any member of the MSG Entertainment Group.

"<u>Spinco Health</u> <u>& Welfare Plans</u>" shall have the meaning ascribed thereto in <u>Section</u> <u>6.1(a)</u> of this Agreement.

"<u>Spinco Information Statement</u>" means the definitive information statement distributed to holders of MSG Entertainment Common Stock in connection with the Distribution and filed with the Securities and Exchange Commission (the "<u>SEC</u>") as Exhibit 99.1 to the registration statement on Form 10 filed with the Commission to effect the registration of the Spinco Class A Common Shares pursuant to the Securities Exchange Act of 1934, as amended, or as an exhibit to a Form 8-K of Spinco.

"<u>Spinco Liabilities</u>" means all Liabilities assumed or retained by any member of the Spinco Group pursuant to this Agreement.

"<u>Spinco Option</u>" means an option to buy Spinco Class A Common Stock granted pursuant to a Spinco Share Plan and granted in connection with the Distribution (or shortly thereafter to the extent necessary to determine any adjustments in connection with the Distribution).

"<u>Spinco Participant</u>" means any individual who, immediately following the Distribution Date, is a Spinco Employee, a Former Spinco Employee or a beneficiary, dependent or alternate payee of any of the foregoing.

"<u>Spinco Plan</u>" means any Plan sponsored, maintained or contributed to by any member of the Spinco Group, including the Spinco Retained Retirement Plans, Spinco Share Plans, Spinco Flexible Spending Accounts Plan, the Spinco Retiree Medical Program, Spinco Health & Welfare Plans and Spinco Retained Multi-Employer Benefit Plans.

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"<u>Spinco Retained Multi-Employer Benefit Plans</u>" means the multi-employer plans that are listed on <u>Exhibit D</u>.

"<u>Spinco Retained Retirement Plans</u>" means the retirement plans that are listed on <u>Exhibit B</u>.

"<u>Spinco RSU</u>" means a restricted stock unit (including, for the avoidance of doubt, any restricted stock unit that is subject to performance vesting conditions) representing an unfunded and unsecured promise to deliver a share of Spinco Class A Common Stock, or cash or other property equal in value to the share of Spinco Class A Common Stock, that is granted pursuant to a Spinco Share Plan and granted in connection with the Distribution (or shortly thereafter to the extent necessary to determine any adjustments in connection with the Distribution).

"<u>Spinco Share Plans</u>" means the Spinco 2023 Employee Stock Plan, Spinco 2023 Stock Plan For Non-Employee Directors and any other stock plan or stock incentive arrangement, including equity award agreements, entered into by Spinco in connection with the Distribution.

"<u>Subsidiary</u>" has the same meaning as provided in the Distribution Agreement.

"<u>Transition Period</u>" means, with respect to each Spinco Plan in which any MSG Entertainment Group member is a Participating Company, the period of time beginning on the Distribution Date and ending on the date MSG Entertainment establishes a corresponding Plan and allows participation in such Plan, which shall be no later than the Effective Date. The Transition Period may be extended beyond the Effective Date if both Parties agree to the extension, and such agreement shall not be unreasonably withheld.

"<u>Transition Period End Date</u>" means the last day of each applicable Transition Period.

"<u>Union Plan</u>" shall have the meaning ascribed thereto in <u>Section</u> <u>4.1</u> of this Agreement.

"<u>U.S.</u>" means the United States of America.

**Section 1.2 <u>General Interpretive Principles</u>**. Words in the singular shall include the plural and vice versa, and words of one gender shall include the other gender, in each case, as the context requires. The words "hereof," "herein," "hereunder," and "herewith" and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement and not to any particular provision of this Agreement, and references to Article, Section, paragraph and Exhibit are references to the Articles, Sections, paragraphs and Exhibits to this Agreement unless otherwise specified. The word "including" and words of similar import when used in this Agreement shall mean "including, without limitation," unless otherwise specified. Any reference to any federal, state, local or non-U.S. statute or Law shall be deemed to also refer to all rules and regulations promulgated thereunder, unless the context otherwise requires.

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**ARTICLE II** 

**GENERAL PRINCIPLES** 

**Section 2.1 <u>Assumption and Retention of Liabilities; Related Assets</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of the Distribution Date, except as otherwise expressly provided for in this Agreement, MSG Entertainment shall, or shall cause one or more members of the MSG Entertainment Group to, assume or retain and MSG Entertainment hereby agrees to pay, perform, fulfill and discharge, in due course in full (i) all Liabilities under all MSG Entertainment Plans (<u>provided</u> that, as between MSG Entertainment and Spinco, Spinco shall be responsible for certain of those Liabilities pursuant to <u>Section</u> <u>2.1(b)</u> of this Agreement), (ii) all Liabilities with respect to the employment, retirement, service, termination of employment or termination of service of all MSG Entertainment Employees, Former MSG Entertainment Employees, MSG Entertainment Directors, their dependents and beneficiaries and other service providers (including any individual who is, or was, an independent contractor, temporary employee, temporary service worker, consultant, freelancer, agency employee, leased employee, on-call worker, incidental worker, or non-payroll worker of any member of the MSG Entertainment Group or in any other employment, non-employment, or retainer arrangement or relationship with any member of the MSG Entertainment Group), in each case to the extent arising in connection with or as a result of employment with or the performance of services for any member of the MSG Entertainment Group, and (iii) any other Liabilities expressly assumed by or retained by MSG Entertainment or any of its Subsidiaries under this Agreement, including liabilities retained pursuant to <u>Article V</u> of this Agreement. For purposes of clarification and the avoidance of doubt, (x) the Liabilities assumed or retained by the MSG Entertainment Group as provided for in this <u>Section</u> <u>2.1(a)</u> are intended to be MSG Entertainment Liabilities as such term is defined in the Distribution Agreement, and (y) the Parties intend that such Liabilities assumed or retained by the MSG Entertainment Group include the retirement benefits and health and welfare plan benefits under the MSG Entertainment Plans for all MSG Entertainment Employees, Former MSG Entertainment Employees, their dependents, beneficiaries, alternate payees and surviving spouses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As of the Distribution Date, except as otherwise expressly provided for in this Agreement, Spinco shall, or shall cause one or more members of the Spinco Group to, assume or retain and Spinco hereby agrees to pay, perform, fulfill and discharge, in due course in full (i) all Liabilities under all Spinco Plans, (ii) all Liabilities with respect to the employment, service, retirement, termination of employment or termination of service of all Spinco Employees, Former Spinco Employees, their dependents and beneficiaries and other service providers (including any individual who is, or was, an independent contractor, temporary employee, temporary service worker, consultant, freelancer, agency employee, leased employee, on-call worker, incidental worker, or non-payroll worker of any member of the Spinco Group or in any other employment, non-employment, or retainer arrangement or relationship with any member of the Spinco Group), and (iii) any other Liabilities expressly assumed or retained by Spinco or any of its Subsidiaries under this Agreement. For purposes of clarification and the avoidance of doubt, the Liabilities assumed or retained by the Spinco Group as provided for in this <u>Section</u> <u>2.1(b)</u> are intended to be Spinco Liabilities as such term is defined in the Distribution Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) From time to time after the Distribution, Spinco shall promptly reimburse MSG Entertainment, upon MSG Entertainment's presentation of such substantiating documentation as Spinco shall reasonably request, for the cost of any Liabilities satisfied by MSG Entertainment or its Subsidiaries that are, or that have been made pursuant to this Agreement, the responsibility of Spinco or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) From time to time after the Distribution, MSG Entertainment shall promptly reimburse Spinco, upon Spinco's presentation of such substantiating documentation as MSG Entertainment shall reasonably request, for the cost of any Liabilities satisfied by Spinco or its Subsidiaries that are, or that have been made pursuant to this Agreement, the responsibility of MSG Entertainment or any of its Subsidiaries.

**Section 2.2 <u>MSG Entertainment Participation in Spinco Plans</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>During the Transition Period</u>. Except for the Spinco Plans described in <u>Articles</u> <u>III</u>, <u>V</u>, <u>VII</u> and <u>VIII</u> herein, until the Transition Period End Date, MSG Entertainment and each member of the MSG Entertainment Group that presently participates in a particular Spinco Plan may continue to be a Participating Company in such Spinco Plan, and MSG Entertainment and Spinco shall take all necessary action to effectuate each such continuation. MSG Entertainment and each member of the MSG Entertainment Group shall pay Spinco for any MSG Entertainment Employee or Former MSG Entertainment Employee's participation in the Spinco Plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>After the Transition Period</u>. Except as otherwise expressly provided for in this Agreement, effective as of the Transition Period End Date, MSG Entertainment and each member of the MSG Entertainment Group shall cease to be a Participating Company in the corresponding Spinco Plan, and MSG Entertainment and Spinco shall take all necessary action to effectuate each such cessation.

**Section 2.3 <u>Service Recognition</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Pre-Distribution Service Credit</u>. MSG Entertainment shall give each MSG Entertainment Participant full credit for purposes of eligibility, vesting, determination of level of benefits, and, to the extent applicable, benefit accruals under any MSG Entertainment Plan for such MSG Entertainment Participant's service with any member of the Spinco Group prior to the Distribution Date to the same extent such service was recognized by the corresponding Spinco Plans immediately prior to the Distribution Date; <u>provided</u>, <u>however</u>, that such service shall not be recognized to the extent that such recognition would result in the duplication of benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Post-Distribution Service Crediting for the MSG Entertainment Retained Retirement Plans and Spinco Retained Retirement Plans</u>. Each of MSG Entertainment and Spinco (acting directly or through their respective Subsidiaries) shall cause each of the MSG Entertainment Retained Retirement Plans and the Spinco Retained Retirement Plans,

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respectively, to provide the following service crediting rules effective as of the Distribution Date for so long as MSG Entertainment and Spinco remain under common Control:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If an MSG Entertainment Employee who participates in, or is eligible to participate in, the MSG Entertainment Excess Savings Plan becomes employed by a member of the Spinco Group on or after the Distribution Date, and such MSG Entertainment Employee has been continuously employed by the MSG Entertainment Group from the Distribution Date through the date such MSG Entertainment Employee commences active employment with a member of the Spinco Group, then such MSG Entertainment Employee's service with the MSG Entertainment Group shall be recognized for purposes of eligibility, vesting and level of benefits under the Spinco Excess Savings Plan, to the same extent as such MSG Entertainment Employee's service with the MSG Entertainment Group was recognized under the MSG Entertainment Excess Savings Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If a Spinco Employee becomes employed by a member of the MSG Entertainment Group and such Spinco Employee is continuously employed by the Spinco Group from the Distribution Date through the date such Spinco Employee commences active employment with a member of the MSG Entertainment Group, then such Spinco Employee's service with the Spinco Group shall be recognized for purposes of eligibility, vesting and level of benefits under the MSG Entertainment Excess Savings Plan to the same extent as such Spinco Employee's service with the Spinco Group was recognized under the corresponding Spinco Retained Retirement Plans, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding anything in this Agreement to the contrary, following the Distribution Date, the MSG Entertainment Retained Retirement Plans and the Spinco Retained Retirement Plans (other than the Cash Balance Pension Plan) shall provide that no break in service occurs with respect to any MSG Entertainment Employee or Spinco Employee who is hired or rehired by any member of the Spinco Group or the MSG Entertainment Group after the termination of such MSG Entertainment Employee's or Spinco Employee's employment with either the MSG Entertainment Group or the Spinco Group after such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Notwithstanding anything in this Agreement to the contrary, the employment service with the MSG Entertainment Group or the Spinco Group shall not be double counted or result in duplicative benefits or service crediting under any MSG Entertainment Retained Retirement Plan or Spinco Retained Retirement Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Post-Distribution Service Crediting for the MSG Entertainment and Spinco Health</u> <u>& Welfare Plans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If an MSG Entertainment Employee who participates in any of the MSG Entertainment Health & Welfare Plans becomes employed by a member of the Spinco Group on or after the Distribution Date, and such MSG Entertainment Employee has been continuously employed by the MSG Entertainment Group from the Distribution Date through the date such MSG Entertainment Employee commences active employment with a member of the Spinco Group, then such MSG Entertainment Employee's service with the MSG Entertainment Group following the Distribution Date shall be recognized for purposes of eligibility under the corresponding Spinco Health & Welfare Plans, in each case to the same extent as such MSG Entertainment Employee's service with the MSG Entertainment Group was recognized under the corresponding MSG Entertainment Health & Welfare Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If a Spinco Employee who participates in any of the Spinco Health & Welfare Plans becomes employed by a member of the MSG Entertainment Group on or after the Distribution Date, and such Spinco Employee has been continuously employed by the Spinco Group from the Distribution Date through the date such Spinco Employee commences active employment with a member of the MSG Entertainment Group, then such Spinco Employee's service with the Spinco Group following the Distribution Date shall be recognized for purposes of eligibility under the corresponding MSG Entertainment Health & Welfare Plans, in each case to the same extent as such Spinco Employee's service with the Spinco Group was recognized under the corresponding Spinco Health & Welfare Plans.

**ARTICLE III** 

**U.S. QUALIFIED DEFINED BENEFIT PLAN** 

**Section 3.1 <u>Cash Balance Pension Plan</u>**. As of the Distribution Date, a member of the Spinco Group shall retain all of the assets in the trust underlying the Cash Balance Pension Plan, and remain responsible for all Liabilities under the Cash Balance Pension Plan.

**ARTICLE IV** 

**U.S. QUALIFIED DEFINED CONTRIBUTION PLANS** 

**Section 4.1 <u>401(k) Plan</u><u>s</u>**. On or prior to the Distribution Date, MSG Entertainment and Spinco shall take all necessary actions to add MSG Entertainment as a participating employer to the Madison Square Garden 401(k) Savings Plan (the "<u>401(k) Plan</u>") and the Madison Square Garden 401(k) Union Plan (the "<u>Union Plan</u>"). On and after the Distribution Date, MSG Entertainment Participants who, immediately prior to the Distribution Date were participants in, or entitled to, future benefits under the 401(k) Plan shall continue to participate in the 401(k) Plan on the same terms and conditions as applied prior to the Distribution Date, as may be modified from time to time. On and after the Distribution Date, all contributions payable to the 401(k) Plan with respect to MSG Entertainment Participants, determined in accordance with the terms of the 401(k) Plan, ERISA and the Code, shall be paid by MSG Entertainment to the 401(k) Plan.Section 4.2

**Section 4.2 <u>Investment and Benefits Committee</u>**. Effective as of the Distribution Date, (a) the current Investment and Benefits Committee shall continue to administer the 401(k) Plan in accordance with its existing authority, and shall continue to oversee Spinco's participation in the 401(k) Plan, and (b) MSG Entertainment shall establish an Investments and Benefits Committee, which, among other things, shall oversee its participation in the 401(k) Plan and the Union Plan.

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**ARTICLE V** 

**NONQUALIFIED PLANS** 

**Section 5.1 <u>Excess Cash Balance Pension Plan</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No later than the Distribution Date, MSG Entertainment shall establish and make payments pursuant to a non-qualified defined benefit pension plan (the "<u>MSG Entertainment</u> <u>Excess Cash Balance Plan</u>") to provide non-qualified retirement benefits to MSG Entertainment Employees who, immediately prior to the effective date of the MSG Entertainment Excess Cash Balance Plan, were entitled to future benefits under the MSG Entertainment Group, LLC Excess Cash Balance Plan (the "<u>Spinco Excess Cash Balance Plan</u>") and shall assume the Liabilities as of the Distribution Date of the Spinco Excess Cash Balance Plan relating to MSG Entertainment Employees and Former MSG Entertainment Employees (but excluding, for the avoidance of doubt, Shared Executives).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As of the effective date of the MSG Entertainment Excess Cash Balance Plan, MSG Entertainment (acting directly or through its Subsidiaries) shall cause the MSG Entertainment Excess Cash Balance Plan to recognize and maintain all existing beneficiary designations with respect to MSG Entertainment Employees and Former MSG Entertainment Employees under the Spinco Excess Cash Balance Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Parties agree that the Liabilities of the Spinco Excess Cash Balance Plan relating to MSG Entertainment Employees and Former MSG Entertainment Employees shall be transferred to the MSG Entertainment Excess Cash Balance Plan effective as of the Distribution Date.

**Section 5.2 <u>Excess Retirement Plan</u>**. As of the Distribution Date, a member of the Spinco Group shall remain responsible for all Liabilities under the MSG Entertainment Group, LLC Excess Retirement Plan (the "<u>Spinco Excess Retirement Plan</u>").

**Section 5.3 <u>Excess Savings Plan</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Establishment of the MSG Entertainment Excess Savings Plan</u>. No later than the Distribution Date, MSG Entertainment shall establish a defined contribution plan for the benefit of MSG Entertainment Employees (including Shared Executives to the extent such Shared Executives are eligible to participate pursuant to their employment contracts) (the "<u>MSG Entertainment Excess Savings Plan</u>") who, immediately prior to the effective date of the MSG Entertainment Excess Savings Plan, were participants in, or entitled to future benefits under, the MSG Entertainment Group, LLC Excess Savings Plan (the "<u>Spinco Excess Savings Plan</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Transfer of Spinco Excess Savings Plan Accounts</u>. No later than the Distribution Date, Spinco shall cause the accounts in the Spinco Excess Savings Plan attributable to MSG Entertainment Employees and Former MSG Entertainment Employees (but excluding, for the avoidance of doubt, Shared Executives) to be transferred to the MSG Entertainment Excess Savings Plan and MSG Entertainment shall cause the MSG Entertainment Excess Savings Plan to accept such transfer of accounts in accordance with current practice and to assume and to fully perform, pay and discharge all Liabilities of the Spinco Excess Savings Plan relating to the accounts of MSG Entertainment Employees and Former MSG Entertainment Employees as of the effective date of the MSG Entertainment Excess Savings Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Continuation of Elections</u>. As of the effective date of the MSG Entertainment Excess Savings Plan, MSG Entertainment (acting directly or through its Subsidiaries) shall cause

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the MSG Entertainment Excess Savings Plan to recognize and maintain all elections, including deferral elections and beneficiary designations, as applicable, with respect to MSG Entertainment Employees and Former MSG Entertainment Employees under the Spinco Excess Savings Plan for the remainder of the period or periods for which such elections or designations are by their original terms applicable, to the extent such election or designation is available under the MSG Entertainment Excess Savings Plan.

**Section 5.4 <u>Executive Deferred Compensation Plan</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Establishment of the MSG Entertainment Deferred Compensation Plan</u>. No later than the Distribution Date, MSG Entertainment shall establish a nonqualified deferred compensation plan for the benefit of MSG Entertainment Employees (the "<u>MSG Entertainment Deferred Compensation Plan</u>") who, immediately prior to the effective date of the MSG Entertainment Deferred Compensation Plan, were participants in, or entitled to future benefits under, the Madison Square Garden Entertainment Corp. Executive Deferred Compensation Plan (the "<u>Spinco Deferred Compensation Plan</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Transfer of Spinco Deferred Compensation Plan Accounts</u>. No later than the Distribution Date, Spinco shall cause the accounts in the Spinco Deferred Compensation Plan attributable to MSG Entertainment Employees and Former MSG Entertainment Employees to be transferred to the MSG Entertainment Deferred Compensation Plan and MSG Entertainment shall cause the MSG Entertainment Deferred Compensation Plan to accept such transfer of accounts in accordance with current practice and to assume and to fully perform, pay and discharge all Liabilities of the Spinco Deferred Compensation Plan relating to the accounts of MSG Entertainment Employees and Former MSG Entertainment Employees as of the effective date of the MSG Entertainment Deferred Compensation Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Continuation of Elections</u>. As of the effective date of the MSG Entertainment Deferred Compensation Plan, MSG Entertainment (acting directly or through its Subsidiaries) shall cause the MSG Entertainment Deferred Compensation Plan to recognize and maintain all elections, including deferral elections and beneficiary designations, as applicable, with respect to MSG Entertainment Employees and Former Spinco Employees under the Spinco Deferred Compensation Plan for the remainder of the period or periods for which such elections or designations are by their original terms applicable, to the extent such election or designation is available under the MSG Entertainment Deferred Compensation Plan.

**Section 5.5 <u>Transferred Employees</u>**. Employees who transfer from Spinco to MSG Entertainment after the Distribution Date will not be eligible for an immediate distribution of their account balance from the Spinco Excess Cash Balance Plan, Spinco Excess Retirement Plan, Spinco Excess Savings Plan or Spinco Deferred Compensation Plan; instead, subject to compliance with any applicable requirements of Section 409A of the Code, any such account balance shall be transferred to the MSG Entertainment Excess Cash Balance Plan, MSG Entertainment Excess Retirement Plan, MSG Entertainment Excess Savings Plan or MSG Entertainment Deferred Compensation Plan on the date of transfer, and Spinco shall pay MSG Entertainment an amount equal to the vested account balance as of the transfer date within 30 days of such transfer date. Employees who transfer from MSG Entertainment to Spinco after the Distribution Date will not be eligible for an immediate distribution of their account balance from

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the MSG Entertainment Excess Cash Balance Plan, MSG Entertainment Excess Retirement Plan, MSG Entertainment Excess Savings Plan or MSG Entertainment Deferred Compensation Plan; instead, subject to compliance with any applicable requirements of Section 409A of the Code, any such account balance shall be transferred to the MSG Entertainment Excess Cash Balance Plan, Spinco Excess Retirement Plan, Spinco Excess Savings Plan or Spinco Deferred Compensation Plan on the date of transfer, and MSG Entertainment shall pay Spinco an amount equal to the vested account balance as of the transfer date within 30 days of such transfer date.

**Section 5.6 <u>No Separation from Service</u>**. The transactions provided for under this Agreement shall not constitute a separation from service or a termination of employment under the MSG Entertainment Excess Cash Balance Plan, Spinco Excess Cash Balance Plan, MSG Entertainment Excess Retirement Plan, Spinco Excess Retirement Plan, MSG Entertainment Excess Savings Plan, Spinco Excess Savings Plan, MSG Entertainment Deferred Compensation Plan or Spinco Deferred Compensation Plan, each of which shall provide that no distribution of benefits shall be made to any MSG Entertainment Employee or Spinco Employee on account of these transactions.

**ARTICLE VI** 

**U.S. HEALTH AND WELFARE PLANS** 

**Section 6.1 <u>Health and Welfare Plans Maintained by Spinco Prior to the Distribution Date</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Establishment of the MSG Entertainment Health</u> <u>& Welfare Plans</u>. Spinco or one or more of its Subsidiaries maintain each of the health and welfare plans set forth on <u>Exhibit E</u> attached hereto (the "<u>Spinco Health</u> <u>& Welfare Plans</u>") for the benefit of eligible MSG Entertainment Participants and Spinco Participants. Effective as of January 1, 2024 (the "<u>Effective Date</u>"), MSG Entertainment shall, or shall cause one of its Subsidiaries to, adopt health and welfare plans (other than a retiree medical program) for the benefit of eligible MSG Entertainment Participants (collectively, the "<u>MSG Entertainment Health</u> <u>& Welfare Plans</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Terms of Participation in MSG Entertainment Health</u> <u>& Welfare Plans</u>. MSG Entertainment (acting directly or through its Subsidiaries) shall cause all MSG Entertainment Health & Welfare Plans, if applicable, to (i) waive all limitations as to preexisting conditions, exclusions, and service conditions with respect to participation and coverage requirements applicable to MSG Entertainment Participants, other than limitations that were in effect with respect to MSG Entertainment Participants immediately prior to the Effective Date, (ii) waive any waiting period limitation or evidence of insurability requirement that would otherwise be applicable to an MSG Entertainment Participant immediately prior to the Effective Date to the extent such MSG Entertainment Participant had satisfied any similar limitation under the analogous Spinco Health & Welfare Plan, and (iii) in the case of self-insured MSG Entertainment Health & Welfare Plans, provide credit for all benefits paid to MSG Entertainment Participants under the Spinco Health & Welfare Plans for purposes of determining when such persons have reached their lifetime maximums (if any) under the MSG Entertainment Health & Welfare Plan. Notwithstanding the foregoing, in the event that any MSG Entertainment Participant, Former MSG Entertainment Employee, or dependent thereof is confined to a facility for treatment as of the Effective Date, such persons nevertheless shall become covered under MSG Entertainment Health & Welfare Plans as of such date, and shall cease being covered under Spinco Health & Welfare Plans as of such date.

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**Section 6.2 <u>Flexible Spending Accounts Plan</u>**. As of the Effective Date, MSG Entertainment (acting directly or through its Subsidiaries) shall establish a flexible spending accounts plan (the "<u>MSG Entertainment Flexible Spending Accounts Plan</u>") with features that are comparable to those contained in the flexible spending accounts plan maintained by Spinco for the benefit of MSG Entertainment Participants immediately prior to the Effective Date (the "<u>Spinco Flexible Spending Accounts Plan</u>"). Following the Effective Date, MSG Entertainment Participants that presently participate in the Spinco Flexible Spending Accounts Plan may submit, for reimbursement in accordance with the Spinco Flexible Spending Accounts Plan, claims for health costs incurred during the 2023 plan year and any applicable grace period thereafter, and Spinco shall be responsible for the payment of such claims. MSG Entertainment shall be entitled to retain the net positive balance, if any, of the MSG Entertainment Participants' flexible spending accounts from the 2023 plan year. MSG Entertainment shall pay to Spinco the net negative balance, if any, of the MSG Entertainment Participants' flexible spending accounts from the 2023 plan year. As of the Effective Date, MSG Entertainment shall be responsible for administering all reimbursement claims of MSG Entertainment Participants under the MSG Entertainment Flexible Spending Accounts Plan with respect to calendar year 2023 under the MSG Entertainment Flexible Spending Accounts Plan.

**Section 6.3 <u>Legal Plan</u>**. Any case initiated by an MSG Entertainment Participant under the Spinco Group Legal Plan prior to the Effective Date will continue under such plan until its completion regardless of whether the MSG Entertainment Participant enrolls in the MSG Entertainment Group Legal Plan after the Effective Date.

**Section 6.4 <u>COBRA and HIPAA</u>**. As of the Effective Date, MSG Entertainment (acting directly or through its Subsidiaries) shall assume, or shall have caused the MSG Entertainment Health & Welfare Plans to assume, responsibility for compliance with the health care continuation coverage requirements of COBRA with respect to MSG Entertainment Participants who, as of the day prior to the Effective Date, were covered under a Spinco Health & Welfare Plan pursuant to COBRA or were eligible for COBRA under a Spinco Health & Welfare Plan and incur any COBRA claims after the Effective Date. Spinco shall be responsible for the claims incurred by MSG Entertainment Participants prior to the Effective Date, regardless of whether payments for such claims are made or due after the Effective Date. Spinco (acting directly or through its Subsidiaries) shall be responsible for administering compliance with the certificate of creditable coverage requirements of HIPAA applicable to the Spinco Health & Welfare Plans with respect to MSG Entertainment Participants for the period ending on the Effective Date. The Parties hereto agree that neither the Distribution nor any transfers of employment directly from the MSG Entertainment Group to the Spinco Group or directly from the Spinco Group to the MSG Entertainment Group that occur before the Effective Date shall constitute a COBRA "qualifying event" for purposes of COBRA.

**Section 6.5 <u>Liabilities</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Insured Benefits</u>. With respect to employee welfare and fringe benefits that are provided through the purchase of insurance, Spinco shall cause the Spinco Health & Welfare

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Plans to fully perform, pay and discharge all claims of MSG Entertainment Participants that are incurred prior to the Effective Date (whether reported or unreported by the Effective Date) for the Spinco Health & Welfare Plans, and MSG Entertainment shall pay Spinco for premiums incurred by Spinco in respect of MSG Entertainment Participants from the Distribution Date through the Effective Date. MSG Entertainment shall cause the MSG Entertainment Health & Welfare Plans to fully perform, pay and discharge all claims of MSG Entertainment Participants that are incurred on or after the Effective Date. With respect to claims of MSG Entertainment Participants that are incurred under such Spinco Health & Welfare Plans prior to the Effective Date (whether reported or unreported by the Effective Date), but after the Distribution Date, and paid by the Spinco Health & Welfare Plans, MSG Entertainment, as a Participating Company, shall promptly reimburse Spinco for any administrative or other expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Long-Term Disability</u>. Any MSG Entertainment Participant who is on long-term disability leave and receiving long-term disability benefits under the MSG Entertainment Group, LLC Benefits Program as of the Effective Date shall continue to receive benefits under the MSG Entertainment Group, LLC Benefits Program in accordance with the provisions of such Plan following the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Self-Insured Benefits</u>. With respect to employee welfare and fringe benefits that are provided on a self-insured basis, except as otherwise provided herein, MSG Entertainment (i) shall pay Spinco the Estimated Benefit Cost (defined below) for each month from the Distribution Date through the Effective Date for each MSG Entertainment Participant participating in such benefits (prorated for any partial month based on the number of days in such month) and (ii) acting directly or through its Subsidiaries, shall cause the MSG Entertainment Health & Welfare Plans to fully perform, pay and discharge all claims of MSG Entertainment Participants that are incurred on or after the Effective Date. The "<u>Estimated Benefit Cost</u>" shall equal the aggregate monthly cost of such self-insured benefits on a per-employee basis, as set forth in Spinco's applicable annual budget (as may be adjusted quarterly), taking into account relevant claims experience. As soon as administratively practicable after the Effective Date, Spinco and MSG Entertainment shall determine the actual cost of providing such self-insured benefits to the MSG Entertainment Participants for the period from the Distribution Date through the Effective Date (the "<u>Actual Benefit Cost</u>"), which shall be determined based on the number, and claims experience, of MSG Entertainment Participants and Spinco Participants during that period. If the Actual Benefit Cost is greater than the aggregate Estimated Benefit Cost paid by MSG Entertainment, then MSG Entertainment shall promptly pay Spinco such shortfall, or if the aggregate Estimated Benefit Cost paid by MSG Entertainment is greater than the Actual Benefit Cost, then Spinco shall promptly reimburse such excess amount to MSG Entertainment. Except as provided otherwise herein, MSG Entertainment shall promptly reimburse Spinco for the administrative and other expenses related to self-insured benefit claims of MSG Entertainment Participants paid by the Spinco Health & Welfare Plans or Spinco that were incurred prior to the Effective Date (whether reported or unreported by the Effective Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Short-Term Disability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Any MSG Entertainment Participant who is on short-term disability leave and receiving short-term disability benefits under the MSG Entertainment Group, LLC Benefits Program as of the Effective Date shall

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continue to receive short-term disability benefits under the MSG Entertainment Group, LLC Benefits Program. MSG Entertainment, as a Participating Company, shall reimburse Spinco for all administrative and other expenses paid by the MSG Entertainment Group, LLC Benefits Program or Spinco after the Effective Date. MSG Entertainment shall continue to pay any short-term disability benefits owed to an MSG Entertainment Participant under the MSG Entertainment Group, LLC Benefits Program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Any MSG Entertainment Participant who is on a short-term disability leave as of the Effective Date, and who but for the transactions contemplated under the Distribution Agreement would have become eligible for long-term disability benefits in accordance with the provisions of the MSG Entertainment Group, LLC Benefits Program, will continue to be eligible for long-term disability benefits under the MSG Entertainment Group, LLC Benefits Program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Incurred Claim Definition</u>. For purposes of this <u>Section</u> <u>6.5</u>, a claim or Liability is deemed to be incurred (i) with respect to medical, dental, vision and/or prescription drug benefits, upon the rendering of health services or provision of supplies giving rise to such claim or Liability; (ii) with respect to life insurance, accidental death and dismemberment and business travel accident insurance, upon the occurrence of the event giving rise to such claim or Liability; (iii) with respect to disability benefits, upon the date of an individual's disability, as determined by the disability benefit insurance carrier or claim administrator, giving rise to such claim or Liability; and (iv) with respect to a period of continuous hospitalization (or any medical or other service or supply performed or provided during the period of continuous hospitalization), upon the date of admission to the hospital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Retiree Medical Program</u>. Notwithstanding the foregoing, Spinco shall retain all Liabilities under the Spinco Retiree Medical Program, whether incurred before, on or after the Distribution Date, with respect to qualifying MSG Entertainment Participants and Spinco Participants.

**Section 6.6 <u>Time-Off Benefits</u>**. MSG Entertainment shall credit each MSG Entertainment Participant with the amount of accrued but unused vacation time, sick time and other time-off benefits as such MSG Entertainment Participant had with the Spinco Group as of the Distribution Date or as of an employee's transfer date for a Spinco Employee who becomes an MSG Entertainment Employee prior to the first anniversary of the Distribution Date. Spinco shall credit each Spinco Participant with the amount of accrued but unused vacation time, sick time and other time-off benefits as of an employee's transfer date for an MSG Entertainment Employee who becomes a Spinco Employee prior to the first anniversary of the Distribution Date. Notwithstanding the above, MSG Entertainment shall not be required to credit any MSG Entertainment Participant and Spinco shall not be required to credit any Spinco Participant with any accrual to the extent that a benefit attributable to such vacation time, sick time and other time-off benefits is paid by the Spinco Group or MSG Entertainment Group, respectively.

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 **Section 6.7 <u>Severance Pay Plans</u>**. The Parties acknowledge and agree that the transactions contemplated by the Distribution Agreement will not constitute a termination of employment of any Spinco Participant or MSG Entertainment Participant for purposes of any policy, plan, program or agreement of MSG Entertainment or Spinco or any member of the MSG Entertainment Group or Spinco Group that provides for the payment of severance, separation pay, salary continuation or similar benefits in the event of a termination of employment.

**ARTICLE VII** 

**EQUITY COMPENSATION** 

**Section 7.1 <u>Equity Compensation</u>**. The Parties, including through instructions with their respective administrators and recordkeepers, shall use commercially reasonable efforts and shall cooperate in good faith to take all actions reasonably necessary or appropriate for the adjustment of the Equity Compensation under the MSG Entertainment Share Plans, for the issuance of the Equity Compensation under the Spinco Share Plans, and to coordinate the tax treatment of such Equity Compensation as set forth in this <u>Article</u> <u>VII</u>, all in a manner consistent with the resolutions adopted by the MSG Entertainment Compensation Committee in connection with the Distribution and the provisions of this <u>Article VII</u>.

**Section 7.2 <u>Taxes and Withholding</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Options</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Exercise Price</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Upon the exercise of an MSG Entertainment Option, whether by an MSG Entertainment Employee, Former MSG Entertainment Employee, MSG Entertainment Director, Spinco Employee, Former Spinco Employee or Spinco Director, the Parties shall take steps to ensure that the exercise price is delivered to MSG Entertainment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Upon the exercise of a Spinco Option, whether by an MSG Entertainment Employee, Former MSG Entertainment Employee, MSG Entertainment Director, Spinco Employee, Former Spinco Employee or Spinco Director, the Parties shall take steps to ensure that the exercise price is delivered to Spinco.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Upon exercise of an MSG Entertainment Option or Spinco Option, the employer or, in the case of a Former MSG Entertainment Employee or Former Spinco Employee, the former employer of such holder shall fund any employer taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Upon exercise of an MSG Entertainment Option or Spinco Option, the Parties shall take steps to ensure that the applicable withholding amount is remitted in cash to the employer or, in the case of a Former MSG Entertainment Employee or Former Spinco Employee, the former employer of such holder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [<u>Intentionally Omitted</u>.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Restricted Stock Units</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Settlement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) After the Distribution Date, MSG Entertainment shall be responsible for all Liabilities under MSG Entertainment RSUs, whether such MSG Entertainment RSUs are held by MSG Entertainment Employees, Former MSG Entertainment Employees, Spinco Employees, Former Spinco Employees and individuals who received such MSG Entertainment RSUs in their capacity as MSG Entertainment Directors. MSG Entertainment shall settle, and satisfy any dividend obligations with respect to, such MSG Entertainment RSUs in accordance with the terms of its 2020 Employee Stock Plan and its 2020 Stock Plan for Non-Employee Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) After the Distribution Date, Spinco shall be responsible for all Liabilities under Spinco RSUs, whether such Spinco RSUs are held by MSG Entertainment Employees, Former MSG Entertainment Employees, Spinco Employees or Former Spinco Employees. Spinco shall settle, and satisfy any dividend obligations with respect to, such Spinco RSUs in accordance with the terms of its 2023 Employee Stock Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Upon settlement of any MSG Entertainment RSU or Spinco RSU, other than an MSG Entertainment RSU that is held by an individual who received such MSG Entertainment RSU in his capacity as an MSG Entertainment Director, the employer, or, in the case of a Former MSG Entertainment Employee or Former Spinco Employee, the former employer, of such holder shall fund any employer taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Upon settlement of any MSG Entertainment RSU or Spinco RSU, other than an MSG Entertainment RSU that is held by an individual who received such MSG Entertainment RSU in his capacity as an MSG Entertainment Director, the Parties shall take steps to ensure that the applicable withholding amount is remitted in cash to the employer, or, in the case of a Former MSG Entertainment Employee or Former Spinco Employee, the former employer of such holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) MSG Entertainment will be responsible for any tax reporting obligations associated with any MSG Entertainment RSUs that are held by an individual who received such MSG Entertainment RSU in his capacity as an MSG Entertainment Director.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Tax Deductions</u>. With respect to the Equity Compensation held by individuals who are MSG Entertainment Employees or MSG Entertainment Directors at the time the Equity Compensation becomes taxable and individuals who are Former MSG Entertainment Employees at such time, MSG Entertainment shall claim any federal, state and/or local tax deductions after the Distribution Date, and Spinco shall not claim such deductions. With respect to the Equity Compensation held by individuals who are employees of the Spinco Group at the time the Equity Compensation becomes taxable and individuals who are Former Spinco Employees at such time, Spinco shall claim any federal, state and/or local tax deductions after the Distribution Date, and MSG Entertainment shall not claim such deductions. If either MSG Entertainment or Spinco determines in its reasonable judgment that there is a substantial likelihood that a tax deduction that was assigned to MSG Entertainment or Spinco pursuant to this <u>Section</u> <u>7.2</u> will instead be available only to the other party (whether as a result of a determination by the IRS, a change in the Code or the regulations or guidance thereunder, or otherwise), it will notify the other party and both Parties will negotiate in good faith to resolve the issue in accordance with the following principle: the party entitled to the deduction shall pay to the other party an amount that places the other party in a financial position equivalent to the financial position the party would have been in had the party received the deduction as intended under this <u>Section</u> <u>7.2</u>. Such amount shall be paid within 90 days of filing the last tax return necessary to make the determination described in the preceding sentence.

**Section 7.3 <u>Cooperation</u>**. In addition to any cooperation principles governed by <u>Article X</u>, if, after the Distribution Date, MSG Entertainment or Spinco identify an administrative error in the individuals identified as holding Equity Compensation, the amount of Equity Compensation so held, the vesting level of such Equity Compensation, or any other similar error, MSG Entertainment and Spinco shall mutually cooperate in taking such actions as are necessary or appropriate to place, as nearly as reasonably practicable, the individual and MSG Entertainment and Spinco in the position in which they would have been had the error not occurred. Each of the Parties shall establish an appropriate administration system in order to handle in an orderly manner exercises of MSG Entertainment Options and Spinco Options and the settlement of MSG Entertainment RSUs and Spinco RSUs. Each of the Parties will work together to unify and consolidate all indicative data and payroll and employment information on regular timetables and make certain that each applicable entity's data and records with respect to Equity Compensation are correct and updated on a timely basis. The foregoing shall include employment status and information required for tax withholding/remittance, compliance with trading windows and compliance with the requirements of the Securities Exchange Act of 1934 and other applicable Laws.

**Section 7.4 <u>SEC Registration</u>**. The Parties mutually agree to use commercially reasonable efforts to maintain effective registration statements with the SEC with respect to the long-term incentive awards to the extent any such registration statement is required by applicable Law.

**Section 7.5 <u>Savings Clause</u>**. The Parties hereby acknowledge that the provisions of this <u>Article</u> <u>VII</u> are intended to achieve certain tax, legal and accounting objectives and, in the event such objectives are not achieved, the Parties agree to negotiate in good faith regarding such other actions that may be necessary or appropriate to achieve such objectives.

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 **ARTICLE VIII** 

**ADDITIONAL COMPENSATION AND BENEFITS MATTERS** 

**Section 8.1 <u>Cash Incentive Awards</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Cooperation</u>. The Parties shall use commercially reasonable efforts and shall cooperate in good faith to take all actions reasonably necessary or appropriate to achieve the treatment of annual cash incentive awards established under MSG Entertainment's annual incentive plan(s) as approved by the MSG Entertainment Compensation Committee prior to the Distribution in accordance with the terms of such plan(s), including as set forth in this <u>Section</u> <u>8.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Liability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Effective as of the Distribution Date, Spinco shall assume or retain, as applicable, responsibilities for all Liabilities, and fully perform, pay and discharge all Liabilities when such Liabilities become due, relating to any annual cash incentive awards or portion of any such incentive awards that any Spinco Participant is eligible to receive with respect to any performance period that ends after the Distribution Date and, effective as of the Distribution Date, MSG Entertainment shall have no obligations with respect to any such incentive awards. As soon as reasonably practicable, but in any event within 30 days, following the date that MSG Entertainment or Spinco pays an annual cash incentive award established with respect to the fiscal year ending June 30, 2024 to a MSG Entertainment Participant or Spinco Participant who, immediately prior to the Distribution, was a "corporate" employee of MSG Entertainment (including Shared Executives), the Parties shall cooperate to ensure that each Party is responsible for (and reimburses as applicable) the portion of the Liability with respect to such award accrued as of the Distribution Date reflected on <u>Exhibit H</u>, except as otherwise agreed between the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) MSG Entertainment acknowledges and agrees that, except as otherwise provided herein, it shall have full responsibility with respect to any Liabilities and the payment or performance of any obligations arising out of or relating to any incentive, commission or other similar compensatory arrangement previously provided by any member of the MSG Entertainment Group or Spinco Group to any MSG Entertainment Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Spinco acknowledges and agrees that, except as otherwise provided herein, it shall have full responsibility with respect to any Liabilities and the payment or performance of any obligations arising out of or relating to any incentive, commission or other similar compensatory arrangement previously provided by any member of the MSG Entertainment Group or Spinco Group to any Spinco Participant.

**Section 8.2 <u>Individual Arrangements</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>MSG Entertainment Individual Arrangements</u>. MSG Entertainment acknowledges and agrees that, except as otherwise provided herein, it shall have full

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responsibility with respect to any Liabilities and the payment or performance of any obligations arising out of or relating to any employment, separation, severance, consulting, non-competition, retention or other compensatory arrangement previously provided by any member of the MSG Entertainment Group or Spinco Group to any MSG Entertainment Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Spinco Individual Arrangements</u>. Spinco acknowledges and agrees that, except as otherwise provided herein, it shall have full responsibility with respect to any Liabilities and the payment or performance of any obligations arising out of or relating to any employment, separation, severance, consulting, non-competition, retention or other compensatory arrangement previously provided by any member of the MSG Entertainment Group or Spinco Group to any Spinco Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [<u>Intentionally Omitted</u>].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Effect of the Distribution on Severance</u>. The Parties acknowledge and agree that the transactions contemplated by the Distribution Agreement will not constitute a termination of employment of any Spinco Participant for purposes of any policy, plan, program or agreement of MSG Entertainment or Spinco or any member of the MSG Entertainment Group or Spinco Group that provides for the payment of severance, separation pay, salary continuation or similar benefits in the event of a termination of employment. 

**Section 8.3 <u>Non-Competition</u>**. For the purpose of any non-compete provision in any MSG Entertainment Plan or any award thereunder, each of Spinco and Madison Square Garden Sports Corp. shall not be regarded as a "competitive entity." For the purpose of any non-compete provision in any Spinco Plan or any award thereunder, each of MSG Entertainment and Madison Square Garden Sports Corp. shall not be regarded as a "competitive entity." This <u>Section</u> <u>8.3</u> shall apply only so long as MSG Entertainment, Spinco and Madison Square Garden Sports Corp. remain under common Control.

**Section 8.4 <u>Collective Bargaining</u>**. To the extent any provision of this Agreement is contrary to the provisions of any collective bargaining agreement to which MSG Entertainment or Spinco or any of their respective Subsidiaries is a party, the terms of such collective bargaining agreement shall prevail. Should any provisions of this Agreement be deemed to relate to a topic determined by an appropriate authority to be a mandatory subject of collective bargaining, MSG Entertainment or Spinco may be obligated to bargain with the union representing affected employees concerning those subjects.

**Section 8.5 <u>Union Dues</u><u>; Severance and Fringe Benefits</u>**. MSG Entertainment and its Subsidiaries shall retain responsibility for the payment of dues and severance and fringe benefit payments on behalf of MSG Entertainment Employees with respect to the unions set forth on <u>Exhibit F</u>. Spinco and its Subsidiaries shall retain responsibility for the payment of dues and severance and fringe benefit payments on behalf of Spinco Employees with respect to the unions set forth on <u>Exhibit G</u>.

**Section 8.6 <u>Director Programs</u>**. MSG Entertainment shall retain responsibility for the payment of any fees and MSG Entertainment RSUs payable in respect of service on the MSG Entertainment Board of Directors that are payable but not yet paid as of the Distribution Date, and Spinco shall have no responsibility for any such payments (to an individual who is a member of the Spinco Board of Directors as of the Distribution Date or otherwise).

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**Section 8.7 <u>Section</u> <u>409A</u>**. Notwithstanding anything in this Agreement to the contrary (including the treatment of supplemental and deferred compensation plans, outstanding long-term incentive awards and annual incentive awards as described herein), the Parties agree to negotiate in good faith regarding the need for any treatment different from that otherwise provided herein to ensure that the treatment of such supplemental or deferred compensation or long-term incentive award, annual incentive award or other compensation does not cause the imposition of a tax under Section 409A of the Code.

**ARTICLE IX** 

**INDEMNIFICATION** 

**Section 9.1 <u>Indemnification</u>**. All Liabilities retained or assumed by or allocated to MSG Entertainment or the MSG Entertainment Group pursuant to this Agreement shall be deemed to be "<u>MSG Entertainment</u> <u>Liabilities</u>" (as defined in the Distribution Agreement) for purposes of Article III of the Distribution Agreement, and all Liabilities retained or assumed by or allocated to Spinco or the Spinco Group pursuant to this Agreement shall be deemed to be "Spinco Liabilities" (as defined in the Distribution Agreement) for purposes of Article III of the Distribution Agreement.

**ARTICLE X** 

**GENERAL AND ADMINISTRATIVE** 

**Section 10.1 <u>Sharing of Information</u>**. MSG Entertainment and Spinco (acting directly or through their respective Subsidiaries) shall provide to the other and their respective agents and vendors all Information as the other may reasonably request to enable the requesting Party to administer efficiently and accurately each of its Plans, to assist Spinco in obtaining its own insurance policies to provide benefits under Spinco Plans, and to determine the scope of, as well as fulfill, its obligations under this Agreement; <u>provided</u>, <u>however</u>, that, in the event that any Party reasonably determines that any such provision of Information could be commercially detrimental to such Party or any member of its Group, violate any Law or agreement to which such Party or member of its Group is a party, or waive any attorney-client privilege applicable to such Party or member of its Group, the Parties shall provide any such Information and the Parties shall take all reasonable measures to comply with the obligations pursuant to this <u>Section</u> <u>10.1</u> in a manner that mitigates any such harm or consequence to the extent practicable, and the Parties agree to cooperate with each other and take such commercially reasonable steps as may be practicable to preserve the attorney-client privilege with respect to the disclosure of any such Information. Such Information shall, to the extent reasonably practicable, be provided in the format and at the times and places requested, but in no event shall the Party providing such Information be obligated to incur any out-of-pocket expenses not reimbursed by the Party making such request or make such Information available outside of its normal business hours and premises. Any Information shared or exchanged pursuant to this Agreement shall be subject to the same confidentiality requirements set forth in Section 4.4 of the Distribution Agreement.

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**Section 10.2 <u>Reasonable Efforts/Cooperation</u>**. Each of the Parties hereto will use its commercially reasonable efforts to promptly take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable under applicable Laws and regulations to consummate the transactions contemplated by this Agreement, including adopting plans or plan amendments. Each of the Parties hereto shall cooperate fully on any issue relating to the transactions contemplated by this Agreement for which the other Party seeks a determination letter or private letter ruling from the IRS, an advisory opinion from the DOL or any other filing, consent or approval with respect to or by a Governmental Authority.

**Section 10.3 <u>Non-Termination of Employment; No Third-Party Beneficiaries</u>**. No provision of this Agreement or the Distribution Agreement shall be construed to create any right, or accelerate entitlement, to any compensation or benefit whatsoever on the part of any MSG Entertainment Employee or Spinco Employee or other future, present, or former employee of any member of the MSG Entertainment Group or Spinco Group under any MSG Entertainment Plan or Spinco Plan or otherwise. This Agreement is solely for the benefit of the Parties hereto and their respective successors and permitted assigns. Nothing in this Agreement, express or implied, is intended to or shall confer upon any other person or persons (including any employee or former employee of MSG Entertainment or Spinco or either of their respective Subsidiaries or any beneficiary or dependent thereof) any rights, benefits or remedies of any nature whatsoever under or by reason of this Agreement. No provision in this Agreement shall modify or amend any other agreement, plan, program, or document unless this Agreement explicitly states that the provision "amends" that other agreement, plan, program, or document. This shall not prevent the Parties entitled to enforce this Agreement from enforcing any provision in this Agreement, but no other person shall be entitled to enforce any provision in this Agreement on the grounds that it is an amendment to another agreement, plan, program, or document unless the provision is explicitly designated as such in this Agreement, and the person is otherwise entitled to enforce the other agreement, plan, program, or document. If a person not entitled to enforce this Agreement brings a lawsuit or other action to enforce any provision in this Agreement as an amendment to another agreement, plan, program, or document, and that provision is construed to be such an amendment despite not being explicitly designated as one in this Agreement, that provision in this Agreement shall be void *ab initio*, thereby precluding it from having any amendatory effect. Furthermore, nothing in this Agreement is intended to confer upon any employee or former employee of MSG Entertainment, Spinco or either of their respective Subsidiaries any right to continued employment, or any recall or similar rights to an individual on layoff or any type of approved leave.

**Section 10.4 <u>Consent of Third Parties</u>**. If any provision of this Agreement is dependent on the consent of any third party and such consent is withheld, the Parties hereto shall use their reasonable best efforts to implement the applicable provisions of this Agreement to the fullest extent practicable. If any provision of this Agreement cannot be implemented due to the failure of such third party to consent, the Parties hereto shall negotiate in good faith to implement the provision in a mutually satisfactory manner.

**Section 10.5 <u>Access to Employees</u>**. Following the Distribution Date, MSG Entertainment and Spinco shall, or shall cause each of their respective Subsidiaries to, make available to each other those of their employees who may reasonably be needed in order to defend or prosecute any legal or administrative action (other than a legal action between any

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member of the MSG Entertainment Group and any member of the Spinco Group) to which any employee, director or Plan of the MSG Entertainment Group or Spinco Group is a party and which relates to their respective Plans prior to the Distribution Date.

**Section 10.6 <u>Beneficiary Designation/Release of Information/Right to Reimbursement</u>**. To the extent permitted by applicable Law and except as otherwise provided for in this Agreement, all beneficiary designations, authorizations for the release of information and rights to reimbursement made by or relating to Spinco Participants under MSG Entertainment Plans shall be transferred to and be in full force and effect under the corresponding Spinco Plans until such beneficiary designations, authorizations or rights are replaced or revoked by, or no longer apply to, the relevant Spinco Participant.

**Section 10.7 <u>Not a Change in Control</u>**. The Parties hereto acknowledge and agree that the transactions contemplated by the Distribution Agreement and this Agreement do not constitute a "change in control" for purposes of any MSG Entertainment Plan or Spinco Plan.

**ARTICLE XI** 

**MISCELLANEOUS** 

**Section 11.1 <u>Effect If Distribution Does Not Occur</u>**. Notwithstanding anything in this Agreement to the contrary, if the Distribution Agreement is terminated prior to the Distribution Date, then all actions and events that are, under this Agreement, to be taken or occur effective immediately prior to or as of the Distribution Date, or otherwise in connection with the Distribution, shall not be taken or occur except to the extent specifically agreed to in writing by MSG Entertainment and Spinco and neither Party shall have any Liability to the other Party under this Agreement.

**Section 11.2 <u>Complete Agreement; Construction</u>**. This Agreement, including the Exhibits, shall constitute the entire agreement between the Parties with respect to the subject matter hereof and shall supersede all previous negotiations, commitments and writings with respect to such subject matter.

**Section 11.3 <u>Counterparts</u>**. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more such counterparts have been signed by each of the Parties and delivered to the other Party.

**Section 11.4 <u>Survival of Agreements</u>**. Except as otherwise contemplated by this Agreement, all covenants and agreements of the Parties contained in this Agreement shall survive the Distribution Date.

**Section 11.5 <u>Notices</u>**. All notices and other communications hereunder shall be in writing, shall reference this Agreement and shall be hand delivered or mailed by registered or certified mail (return receipt requested) to the Parties at the following addresses (or at such other

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addresses for a Party as shall be specified by like notice) and will be deemed given on the date on which such notice is received:

To MSG Entertainment:

Madison Square Garden Entertainment Corp. (or, after the applicable name change, MSG Sphere Corp.)

Two Penn Plaza

New York, New York 10121

Attention: General Counsel

To Spinco:

MSGE Spinco, Inc. (or, after the applicable name change, Madison Square Garden Entertainment Corp.)

Two Penn Plaza

New York, New York 10121

Attention: General Counsel

**Section 11.6 <u>Waivers</u>**. The failure of any Party to require strict performance by any other Party of any provision in this Agreement will not waive or diminish that Party's right to demand strict performance thereafter of that or any other provision hereof.

**Section 11.7 <u>Amendments</u>**. Subject to the terms of <u>Sections</u> <u>11.8</u> and <u>11.10</u> hereof, this Agreement may not be modified or amended except by an agreement in writing signed by each of the Parties.

**Section 11.8 <u>Assignment</u>**. This Agreement shall not be assignable, in whole or in part, directly or indirectly, by any Party without the prior written consent of the other Party, and any attempt to assign any rights or obligations arising under this Agreement without such consent shall be void; provided that either Party may assign this Agreement to a purchaser (by merger, sale of assets or otherwise) of all or substantially all of the properties and assets of such Party so long as such purchaser expressly assumes, in a written instrument in form reasonably satisfactory to the non-assigning Party, the due and punctual performance or observance of every agreement and covenant of this Agreement on the part of the assigning Party to be performed or observed. Any arrangement in violation of the provisions of this <u>Section</u> <u>11.8</u> shall be void.

**Section 11.9 <u>Successors and Assigns</u>**. The provisions to this Agreement shall be binding upon, inure to the benefit of and be enforceable by the Parties and their respective successors and permitted assigns.

**Section 11.10 <u>Subsidiaries</u>**. Each of the Parties shall cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth herein to be performed by any entity that is contemplated to be a Subsidiary of such Party after the Distribution Date.

**Section 11.11 <u>Title and Headings</u>**. Titles and headings to Sections herein are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.

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**Section 11.12 <u>Governing Law</u>**. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK.

**Section 11.13 <u>Waiver of Jury Trial</u>**. The Parties hereby irrevocably waive any and all right to trial by jury in any legal proceeding arising out of or related to this Agreement.

**Section 11.14 <u>Specific Performance</u>**. From and after the Distribution, in the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, the Parties agree that the Party to this Agreement who is or is to be thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief of its rights under this Agreement, in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative. The Parties agree that, from and after the Distribution, the remedies at law for any breach or threatened breach of this Agreement, including monetary damages, are inadequate compensation for any Loss, that any defense in any action for specific performance that a remedy at law would be adequate is hereby waived, and that any requirements for the securing or posting of any bond with such remedy are hereby waived.

**Section 11.15 <u>Severability</u>**. In the event any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired thereby. The Parties shall endeavor in good faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions, the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

[signature page follows]

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**IN WITNESS WHEREOF**, the Parties have caused this Agreement to be duly executed as of the date first above written.

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| | |
|:---|:---|
| MADISON SQUARE GARDEN ENTERTAINMENT CORP.<br> (to be renamed MSG Sphere Corp.) | MADISON SQUARE GARDEN ENTERTAINMENT CORP.<br> (to be renamed MSG Sphere Corp.) |
| By: |  |
|  | Name: |
|  | Title: |
| MSGE SPINCO, INC.<br> (to be renamed Madison Square Garden Entertainment Corp.) | MSGE SPINCO, INC.<br> (to be renamed Madison Square Garden Entertainment Corp.) |
| By: |  |
|  | Name: |
|  | Title: |

---

[Signature Page to Employee Matters Agreement]

## Exhibit 10.4

***Exhibit 10.4***

***Form of 2023 Employee Stock Plan***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. ***Purpose***. The purpose of the 2023 Employee Stock Plan is to compensate eligible service providers of the Company and its Affiliates who are and have been largely responsible for the management and growth of the business of the Company and its Affiliates and to advance the interest of the Company by encouraging and enabling the acquisition of a personal proprietary interest in the Company by such service providers upon whose judgment and keen interest the Company and its Affiliates are largely dependent for the successful conduct of their operations. It is anticipated that such compensation and the acquisition of such proprietary interest in the Company will stimulate the efforts of such service providers on behalf of the Company and its Affiliates, and strengthen their desire to remain with the Company and its Affiliates. It is also expected that such compensation and the opportunity to acquire such a proprietary interest will enable the Company and its Affiliates to attract and retain desirable personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. ***Definitions***. When used in this Plan, unless the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "Affiliate" shall mean (i) any Entity controlling, controlled by, or under common control with the Company or any other Affiliate and (ii) any Entity in which the Company owns at least five percent of the outstanding equity interest of such Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "Award" shall mean an Option, Right, Restricted Share or Restricted Stock Unit or other equity based award which is granted or made under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "Award Agreement" shall mean an agreement which may be entered into by a Participant under the Plan and the Company, setting forth the terms and provisions applicable to Awards granted to such Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "Board of Directors" shall mean the Board of Directors of the Company, as constituted at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "Committee" shall mean the Compensation Committee of the Board of Directors, as described in Section 3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "Company" shall mean Madison Square Garden Entertainment Corp. (formerly known as MSGE Spinco, Inc.), a Delaware corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "Consent" shall mean (i) any listing, registration or qualification requirement in respect of an Award or Share with respect to any securities exchange or under any federal, state or local law, rule or regulation, (ii) any and all written agreements and representations by the Participant with respect to the disposition of Shares, or with respect to any other matter, which the Committee may deem necessary or desirable to comply with the terms of any such listing, registration or qualification requirement or to obtain an exemption therefrom, (iii) any and all other consents, clearances and approvals in respect of an action under the Plan by any governmental or other regulatory body or any stock exchange or self-regulatory agency, (iv) any and all consents by the Participant to (A) the Company's supplying to any third party recordkeeper of the Plan such personal information as the Committee deems advisable to administer the Plan and (B) the Company's imposing sales and transfer procedures and restrictions on Shares delivered under the Plan and (v) any and all other consents or authorizations required to comply with, or required to be obtained under law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "Entity" shall mean any business, corporation, partnership, limited liability company or other entity.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "Fair Market Value" on a specified date shall mean the closing price for a Share on the stock exchange, if any, on which such Shares are primarily traded, but if no Shares were traded on such date, the average of the bid and asked closing prices at which one Share is traded on the over-the-counter market, as reported on the New York Stock Exchange or any other stock exchange on which the Shares may be traded, or, if none of the above is applicable, the value of a Share as established by the Committee for such date using any reasonable method of valuation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "GAAP" shall mean accounting principles generally accepted in the United States of America.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "Internal Revenue Code" shall mean the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "Options" shall mean the stock options granted pursuant to Section 6 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "Participant" shall mean any current or former service provider to the Company or any Affiliate who holds an outstanding Award granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "Performance Criteria" shall mean a goal or goals established by the Committee and measured over a period or periods selected by the Committee, such goal(s) to constitute a requirement that must be met in connection with the vesting, exercise and/or payment of an Award under the Plan as specified by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "Plan" shall mean this 2023 Employee Stock Plan, as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "Restricted Period" shall mean the period of time during which Restrictions shall apply to a Restricted Share, as determined by the Committee pursuant to Section 9 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "Restricted Shares" shall mean the Shares awarded pursuant to Section 9 hereof that are subject to restrictions upon their sale, assignment, transfer, pledge or other disposal or encumbrance as determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "Restricted Stock Units" shall mean awards made pursuant to Section 10 hereof, each such unit representing an unfunded and unsecured promise to deliver a Share (or cash or other property equal in value to the Share).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "Restrictions" shall mean the restrictions upon sale, assignment, transfer, pledge or other disposal or encumbrance on a Restricted Share as determined by the Committee in respect of an Award of a Restricted Share pursuant to Section 9 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "Rights" shall mean stock appreciation rights granted pursuant to Section 7 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "Share" shall mean a share of Class A Common Stock, par value $0.01 per share of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "Subsidiary" shall mean any "subsidiary corporation," as defined in Section 424(f) of the Internal Revenue Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. ***Administration***. (a) The Plan shall be administered by the Committee, which shall consist of at least two members of the Board of Directors who shall be appointed by, and shall serve at the pleasure of, the Board of Directors. Except as otherwise determined by the Board of Directors, the members of the Committee shall be "non-employee directors", as defined in Rule 16b-3 of the

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Securities Exchange Act of 1934 (the "Exchange Act"); provided, however, that the failure of the Committee to be so comprised shall not cause any Award to be invalid. The Committee may delegate any of its powers under the Plan to a subcommittee of the Committee (which hereinafter shall also be referred to as the Committee). The Committee may also delegate to any person who is not a member of the Committee or to any administrative group within the Company, any of its powers, responsibilities or duties. In delegating its authority, the Committee shall consider the extent to which any delegation may fail to meet the requirements of Rule 16(b)-3(d)(1) or Rule 16(b)-3(e) under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Committee shall have full authority, subject to the terms of the Plan (including Section 19), to (a) exercise all of the powers granted to it under the Plan, (b) construe, interpret and implement the Plan and all Awards and Award Agreements, (c) prescribe, amend and rescind rules and regulations relating to the Plan, including rules governing its own operations, (d) make all determinations necessary or advisable in administering the Plan, (e) correct any defect, supply any omission and reconcile any inconsistency in the Plan, (f) amend the Plan, (g) grant Awards and determine who shall receive Awards and the terms and conditions of such Awards, including, but not limited to, conditioning the exercise, vesting, payout or other term or condition of an Award on the achievement of Performance Criteria, (h) amend any outstanding Award in any respect, including, without limitation, to (1) accelerate the time or times at which the Award becomes vested or unrestricted or may be exercised or at which Shares are delivered under the Award (and, without limitation on the Committee's rights, in connection with such acceleration, the Committee may provide that any Shares delivered pursuant to such Award shall be Restricted Shares, which are subject to vesting, transfer, forfeiture or repayment provisions similar to those in the Participant's underlying Award) or (2) waive or amend any goals, restrictions, conditions or Performance Criteria applicable to such Award, or impose new goals or restrictions and (i) determine at any time whether, to what extent and under what circumstances and method or methods (1) Awards may be (A) settled in cash, Shares, other securities, other Awards or other property, (B) exercised or (C) canceled, forfeited or suspended or (2) Shares, other securities, cash, other Awards or other property and other amounts payable with respect to an Award may be deferred either automatically or at the election of the participant or of the Committee. The enumeration of the foregoing powers is not intended and should not be construed to limit in any way the authority of the Committee under the Plan which is intended, to the fullest extent permitted by law, to be plenary. The Plan, and all such rules, regulations, determinations and interpretations, shall be binding and conclusive upon the Company, its stockholders and all Participants, and upon their respective legal representatives, heirs, beneficiaries, successors and assigns and upon all other persons claiming under or through any of them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No member of the Board of Directors or the Committee or any employee of the Company or any of its Affiliates (each such person a "Covered Person") shall have any liability to any person (including, without limitation, any Participant) for any action taken or omitted to be taken or any determination made in good faith with respect to the Plan or any Award. Each Covered Person shall be indemnified and held harmless by the Company against and from any loss, cost, liability or expense (including attorneys' fees) that may be imposed upon or incurred by such Covered Person in connection with or resulting from any action, suit or proceeding to which such Covered Person may be a party or in which such Covered Person may be involved by reason of any action taken or omitted to be taken under the Plan and against and from any and all amounts paid by such Covered Person, with the Company's approval, in settlement thereof, or paid by such Covered Person in satisfaction of any judgment in any such action, suit or proceeding against such Covered Person; provided that, the Company shall have the right, at its own expense, to assume and defend any such action, suit or proceeding and, once the Company gives notice of its intent to assume the defense, the Company shall have sole control over such defense with counsel of the Company's choice. The foregoing right of indemnification shall not be available to a Covered Person to the extent that a court of competent jurisdiction in a final judgment or other final adjudication, in either case, not subject to further appeal,

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determines that the acts or omissions of such Covered Person giving rise to the indemnification claim resulted from such Covered Person's bad faith, fraud or willful criminal act or omission. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which Covered Persons may be entitled under the Company's Certificate of Incorporation or by-laws, as a matter of law, by agreement or otherwise, or any other power that the Company may have to indemnify such persons or hold them harmless.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. ***Participants***. Except as hereinafter provided, all employees and other service providers of the Company and its Affiliates who are eligible under General Instruction A.1(a) to Form S-8, excluding any member of the Board of Directors who is not a current employee of the Company or its subsidiaries, shall be eligible to receive Awards under the Plan, except that Options that are intended to qualify as incentive stock options within the meaning of Section 422 of the Internal Revenue Code shall be granted only to employees of the Company or a Subsidiary. Nothing herein contained shall be construed to prevent the making of one or more Awards at the same or different times to the same individual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.  ***Share Limitations*** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Committee may make Awards under this Plan for up to an aggregate number of [•] Shares, which may be either treasury Shares or authorized but unissued Shares. To the extent that (i) an Award shall be paid, settled or exchanged or shall expire, lapse, terminate or be cancelled for any reason, in whole or in part, without the issuance of Shares, (ii) any Shares under an Award are not issued because of payment or withholding obligations or (iii) Restricted Shares shall revert back to the Company prior to the lapse of the Restrictions or be applied by the Company for purposes of tax withholding obligations, then the Committee may also grant Awards with respect to such Shares or Restricted Shares. Awards payable only in cash or property other than Shares shall not reduce the aggregate remaining number of Shares with respect to which Awards may be made under the Plan and Shares relating to any other Awards that are settled in cash or property other than Shares, when settled, shall be added back to the aggregate remaining number of Shares with respect to which Awards may be made under the Plan. The maximum number of Shares that may be issued under the Plan shall be adjusted by the Committee as appropriate to account for the events provided for in Section 12 hereof. Any Shares with respect to which the Company becomes obligated to make Awards through the assumption of, or in substitution for, outstanding awards previously granted by an acquired entity, shall not count against the Shares available to be delivered pursuant to Awards under this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In no event shall any Participant be granted Awards during any one (1) calendar year for, or that relate to, an aggregate number of Shares exceeding [•]. The maximum number of Shares underlying Awards that may be granted to an individual in any one (1) calendar year under the Plan shall be adjusted by the Committee as appropriate to account for the events provided for in Section 12 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. ***Options***. Options granted under the Plan shall be either incentive stock options, within the meaning of Section 422 of the Internal Revenue Code, or non-qualified options, as determined by the Committee in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ***Terms and Conditions.*** The form, terms and conditions of each Option shall be determined by the Committee and shall be set forth in an Award Agreement. Such terms and conditions may include, without limitation, provisions relating to the vesting and exercisability of such Options as well as the conditions or circumstances upon which such Options may be accelerated, extended, forfeited or otherwise modified. The Committee may, in its sole discretion, establish one or more

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conditions to the vesting or exercise of an Option including, without limitation, conditions the satisfaction of which are measured by Performance Criteria; provided that, if such Option is designated as an incentive stock option, then such condition or conditions shall not be inconsistent with Section 422 of the Internal Revenue Code. Unless the Award Agreement specifies that the Option is an incentive stock option, it shall be a non-qualified stock option. All or any part of any Options granted to any Participant may be made exercisable upon the occurrence of such special circumstances or events as determined in the sole discretion of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ***Exercise Price for Options***. The exercise price per Share of the Shares to be purchased pursuant to any Option shall be fixed by the Committee at the time an Option is granted, but in no event shall it be less than the Fair Market Value of a Share on the day on which the Option is granted, except for Options granted pursuant to the Distribution in connection with outstanding MSG Sphere stock options granted prior to the Distribution. Such exercise price shall thereafter be subject to adjustment as required by the Award Agreement relating to each Option or Section 12 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) ***Duration of Options***. The duration of any Option granted under this Plan shall be for a period fixed by the Committee but shall, except as described in the next sentence, in no event be more than ten (10) years. Notwithstanding the foregoing, an Award Agreement may provide that, in the event the Participant dies while the Option is outstanding, the Option will remain outstanding until the first anniversary of the Participant's date of death, and whether or not such first anniversary occurs prior to or following the expiration of ten (10) years from the date the Option was granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) ***Incentive Stock Options Granted to Ten Percent Stockholders***. To the extent required by Section 422 of the Internal Revenue Code, no Option which is intended to qualify as an incentive stock option shall be granted under this Plan to any employee who, at the time the Option is granted, owns, or is considered owning, within the meaning of Section 422 of the Internal Revenue Code, shares possessing more than ten percent (10%) of the total combined voting power or value of all classes of stock of the Company or any Subsidiary, unless the exercise price under such Option is at least one hundred and ten percent (110%) of the Fair Market Value of a Share on the date such Option is granted and the duration of such option is no more than five (5) years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) ***Initial Exercisability Limitation***. The aggregate Fair Market Value (determined at the time that an Option is granted) of the Shares with respect to incentive stock options granted in any calendar year under all stock option plans of the Company or any corporation which (at the time of the granting of such incentive stock option) was a parent or Subsidiary of the Company, or of any predecessor corporation of any such corporation, which are exercisable for the first time by a Participant during any calendar year shall not exceed $100,000, or, if different, the maximum allowed under Section 422 of the Internal Revenue Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) ***Settlement of an Option***. When an Option is exercised pursuant to Section 8 hereof, the Committee, in its sole discretion, may elect, in lieu of issuing Shares pursuant to the terms of the Option, to settle the Option by paying the Participant an amount equal to the product obtained by multiplying (i) the excess of the Fair Market Value of one Share on the date the Option is exercised over the exercise price of the Option (the "Option Spread") by (ii) the number of Shares with respect to which the Option is exercised. The amount payable to the Participant in these circumstances shall be paid by the Company either in cash or in Shares having a Fair Market Value equal to the Option Spread, or a combination thereof, as the Committee shall determine at the time the Option is exercised or at the time the Option is granted.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. ***Rights***. The Committee may grant to eligible service providers the right to receive such number of Rights, as determined by the Committee in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ***Terms and Conditions***. The form, terms and conditions of each Right shall be determined by the Committee and shall be set forth in an Award Agreement. Such terms and conditions may include, without limitation, provisions relating to the vesting and exercisability of such Rights as well as the conditions or circumstances upon which such Rights may be accelerated, extended, forfeited or otherwise modified. The Committee may, in its sole discretion, establish one or more conditions to the vesting or exercise of a Right including, without limitation, conditions the satisfaction of which are measured by Performance Criteria. All or any part of any outstanding Rights granted to any Participant may be made exercisable upon the occurrence of such special circumstances or events as determined in the sole discretion of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ***Exercise Price for Rights***. The exercise price of each Right shall be fixed by the Committee at the time a Right is granted, but in no event shall it be less than the Fair Market Value of a Share on the day on which the Right is granted. Such exercise price shall thereafter be subject to adjustment as required by the Award Agreement relating to each Right or Section 12 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) ***Duration of Rights***. The duration of any Right granted under this Plan shall be for a period fixed by the Committee but shall, except as described in the next sentence, in no event be more than ten (10) years. Notwithstanding the foregoing, an Award Agreement may provide that, in the event the Participant dies while the Right is outstanding, the Right will remain outstanding until the first anniversary of the Participant's date of death, and whether or not such first anniversary occurs prior to or following the expiration of ten (10) years from the date the Right was granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) ***Settlement of Rights***. Upon the exercise of any Rights, the Participant shall be entitled to receive from the Company an amount equal to the product obtained by multiplying (i) the excess of the Fair Market Value of one Share on the date the Rights are exercised over the exercise price of the related Right by (ii) the number of Shares to which such Rights are related. Such amount shall be paid in cash, in Shares having a Fair Market Value equal to such amount, or a combination of cash and Shares, as the Committee shall determine at the time the Right is exercised or at the time the Right is granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.  ***Exercise of Options and Rights*** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) An Option or Right shall be exercised by the delivery to any person who has been designated by the Company for the purpose of receiving the same, of a written notice duly signed by the Participant (or the representative of the estate or the heirs of a deceased Participant) to such effect (or electronic notice in a manner, if any, previously approved by the Company). Unless the Company chooses to settle an Option in cash, Shares or a combination thereof pursuant to Section 6(f) hereof, the Participant shall be required to deliver to the Company, within five (5) days of the delivery of the notice described above, either cash, a check payable to the order of the Company, Shares duly endorsed over to the Company (which Shares shall be valued at their Fair Market Value as of the date preceding the day of such exercise) or any combination of such methods of payment, which together amount to the full exercise price of the Shares purchased pursuant to the exercise of the Option. Notwithstanding the preceding sentence, the Company may establish an electronic exercise program with a broker and the Company and the Participant may agree upon any other reasonable manner of providing for payment of the exercise price of the Option.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except to the extent the Committee chooses to settle any Option or Right in cash pursuant to Section 6(f) or 7(d) hereof, within a reasonable time after exercise of an Option or Right the Company shall either issue to the Participant a certificate representing the Shares purchased pursuant to the exercise of the Option or Right or credit the number of such Shares to a book-entry account. To the extent the Committee chooses to settle any Option or Right in cash pursuant to Section 6(f) or 7(d), within a reasonable time after exercise of an Option or Right the Company shall cause to be delivered to the person entitled thereto a payment for the amount payable pursuant to the exercise of the Option or Right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. ***Restricted Shares***. The Committee may grant to eligible service providers the right to receive such number of Restricted Shares, as determined by the Committee in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ***Issuance; Terms and Conditions***. The form, terms and conditions of each Restricted Share shall be determined by the Committee and shall be set forth in an Award Agreement. Such terms and conditions may include, without limitation, the Restrictions upon such Restricted Shares, the dates as of which Restrictions upon such Restricted Shares will cease, and the conditions or circumstances upon which such Restricted Shares will be forfeited or otherwise modified. The Committee may, in its sole discretion, establish one or more Restrictions to the vesting of a Restricted Share that relate to the satisfaction of Performance Criteria.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ***Payment of Par Value***. To the extent a Participant is required by law to pay to the Company the par value of a Restricted Share, such Participant shall have forty-five (45) business days from the date of such grant to pay to the Company, in cash or by check, an amount equal to the par value of a Share multiplied by the number of Shares or Restricted Shares which have been granted to such Participant by the Committee. In such instances, if the Participant fails to make payment to the Company for such Shares or Restricted Shares within forty-five (45) business days of the grant thereof, the Company shall withhold, or shall cause to be withheld, the amount of such payment from compensation otherwise due the Participant from the Company or any Affiliate. Unless the Committee determines otherwise, a Participant's prior service with the Company or any of its Affiliates shall be deemed sufficient consideration for such Restricted Shares and no payment therefore (including, without limitation, for the par value of the Restricted Shares) shall be due from the Participant. Subject to the provisions of Section 15 hereof, the Committee, in its sole discretion, shall either issue to the Participant a certificate representing such Restricted Shares or credit the number of such Restricted Shares to a book-entry account upon the payment due, if any, pursuant to this paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) ***Restriction on Shares***. In no event shall a Restricted Share be sold, assigned, transferred, pledged or otherwise disposed of or encumbered until the expiration of the Restricted Period which relates to such Restricted Share. All or any part of any outstanding Restricted Shares granted to any Participant may be vested in full and the Restrictions thereon shall lapse upon the occurrence of such special circumstances or events as determined in the sole discretion of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) ***Forfeiture of Restricted Shares***. If Restricted Shares are forfeited pursuant to the terms of the Plan or an Award Agreement, such Restricted Shares shall revert back and belong to the Company. In the event that any Restricted Shares should be forfeited by the Participant, revert back and belong to the Company, any stock certificate or certificates representing such Restricted Shares shall be cancelled and the Restricted Shares shall be returned to the treasury of the Company. Upon the reversion of such Restricted Shares, the Company shall repay to the Participant or (in the case of death) to the representative of the Participant's estate, the full cash amount paid, if any, to the Company by the Participant for such Restricted Shares pursuant to Section 9(b) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) ***Right to Vote and Receive Dividends on Restricted Shares***. Each Participant shall, during the Restricted Period, be the beneficial and record owner of such Restricted Shares and shall have full voting rights with respect thereto. Unless the Committee determines otherwise, during the Restricted Period, all ordinary cash dividends (as determined by the Committee in its sole discretion)

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paid upon any Restricted Share shall be retained by the Company for the account of the relevant Participant. Such dividends shall revert back to the Company if for any reason the Restricted Share upon which such dividends were paid reverts back to the Company. Upon the expiration of the Restricted Period, all such dividends made on such Restricted Share and retained by the Company will be paid to the relevant Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. ***Restricted Stock Units***. The Committee may grant to eligible service providers such number of Restricted Stock Units as it may determine in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ***Terms and Conditions***. The form, terms and conditions of each Restricted Stock Unit shall be determined by the Committee and shall be set forth in an Award Agreement. Such terms and conditions may include, without limitation, the conditions or circumstances upon which such Restricted Stock Unit will be paid, forfeited or otherwise modified, and the date or dates upon which any Shares, cash or other property shall be delivered to the Participant in respect of the Restricted Stock Units. The Committee may, in its sole discretion, establish one or more conditions to the vesting of a Restricted Stock Unit including, without limitation, conditions the satisfaction of which are measured by Performance Criteria. All or any part of any outstanding Restricted Stock Unit granted to any Participant may be vested in full or paid upon the occurrence of such special circumstances or events as determined in the sole discretion of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ***Settlement of Restricted Stock Units***. The Committee, in its sole discretion, may instruct the Company to pay on the date when Shares would otherwise be issued pursuant to a Restricted Stock Unit, in lieu of such Shares, a cash amount equal to the number of such Shares multiplied by the Fair Market Value of a Share on the date when Shares would otherwise have been issued. If a Participant is entitled to receive other stock, securities or other property as a result of an adjustment, pursuant to Section 12 hereof, the Committee, in its sole discretion, may instruct the Company to pay, in lieu of such other stock, securities or other property, cash equal to the fair market value thereof as determined in good faith by the Committee. Until the delivery of such Shares, cash, securities or other property, the rights of a Participant with respect to a Restricted Stock Unit shall be only those of a general unsecured creditor of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) ***Right to Receive Dividends on Restricted Stock Units***. Unless the Committee determines otherwise, during the period prior to payment of the Restricted Stock Unit, all ordinary cash dividends (as determined by the Committee in its sole discretion) that would have been paid upon any Share underlying a Restricted Stock Unit had such Shares been issued shall be paid only at the time and to the extent such Restricted Stock Unit is vested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. ***Grant of Other Stock-Based Awards***. The Committee may grant other types of equity-based or equity-related Awards (including unrestricted Shares) in such amounts and subject to such terms and conditions as the Committee shall determine. Such Awards may entail the transfer of actual Shares, or payment in cash or otherwise of amounts based on the value of Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. ***Certain Adjustments***. (a) In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, forward or reverse stock split, reorganization, merger, consolidation, spin-off, combination, repurchase, share exchange, liquidation, dissolution or other similar corporate transaction or event affects Shares such that the failure to make an adjustment to an Award would not fairly protect the rights represented by the Award in accordance with the essential intent and principles thereof (each such event, an "Adjustment Event"), then the Committee shall, in such manner as it may determine to be equitable in its sole discretion, adjust any or all of the terms of an outstanding Award (including, without limitation, the number of Shares covered by such outstanding Award, the type of property to which the Award is

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subject and the exercise price of such Award). In determining adjustments to be made under this Section 12(a), the Committee may take into account such factors as it determines to be appropriate, including without limitation (i) the provisions of applicable law and (ii) the potential tax or accounting consequences of an adjustment (or not making an adjustment) and, in light of such factors or others, may make adjustments that are not uniform or proportionate among outstanding Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ***Fractional Shares or Securities***. Any fractional shares or securities payable upon the exercise of an Award as a result of an adjustment pursuant to this Section 12 shall, at the election of the Committee, be payable in cash, Shares, or a combination thereof, on such bases as the Committee may determine in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. ***No Rights of a Stockholder***. A Participant shall not be deemed to be the holder of, or have any of the rights of a stockholder with respect to, any Shares subject to Options, Rights or Restricted Stock Units unless and until the Company shall have issued and delivered Shares to the Participant and said Participant's name shall have been entered as a stockholder of record on the books of the Company. Thereupon, such Participant shall have full voting, dividend and other ownership rights with respect to such Shares. The Company will not be obligated to issue or deliver any Shares unless and until all legal matters in connection with the issuance and delivery of Shares have been approved by the Company's counsel and the Company's counsel determines that all applicable federal, state and other laws and regulations have been complied with and all listing requirements for relevant stock exchanges have been met.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. ***No Right to Continued Service***. Nothing in the Plan or in any Award Agreement shall confer upon any Participant the right to continued service by the Company or any Affiliate or affect any right which the Company or any Affiliate may have to terminate such service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. ***Issuance of Shares and Consents***. If the Committee shall at any time determine that any Consent is necessary or desirable as a condition of, or in connection with, the granting of any Award, the delivery of Shares or the delivery of any cash, securities or other property under the Plan, or the taking of any other action, then such action shall not be taken, in whole or in part, unless and until such Consent shall have been effected or obtained to the full satisfaction of the Committee. Any stock certificate representing Restricted Shares shall contain an appropriate legend referring to the Plan and the Restrictions upon such Restricted Shares. Simultaneously with delivery of any stock certificate for Restricted Shares, the Company may cause a stop transfer order with respect to such certificate to be placed with the transfer agent of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. ***Withholding***. If the Company or an Affiliate shall be required to withhold any amounts by reason of a federal, state or local tax laws, rules or regulations in respect of any Award, the Company or an Affiliate shall be entitled to deduct or withhold such amounts from any payments (including, without limitation Shares which would otherwise be issued to the Participant pursuant to the Award; provided that, to the extent desired for GAAP purposes, such withholding shall not exceed the statutory minimum amount required to be withheld) to be made to the Participant. In any event, the Participant shall make available to the Company or Affiliate, promptly when requested by the Company or such Affiliate, sufficient funds or Shares to meet the requirements of such withholding and the Company or Affiliate shall be entitled to take and authorize such steps as it may deem advisable in order to have such funds made available to the Company or Affiliate out of any funds or property due to the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. ***Right of Offset***. The Company shall have the right to offset against its obligation to deliver Shares, cash or other property under any Award that does not constitute "non-qualified deferred compensation" pursuant to Section 409A of the Internal Revenue Code any outstanding amounts of whatever nature that the Participant then owes to the Company or any of its Affiliates.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. ***Non-Transferability of Awards***. Unless the Committee shall permit (on such terms and conditions as it shall establish) an Award to be transferred to a member of the Participant's immediate family or to a trust or similar vehicle for the benefit of members of the Participant's immediate family (collectively, the "Permitted Transferees"), no Award shall be assignable or transferable except by will or by the laws of descent and distribution, and except to the extent required by law, no right or interest of any Participant shall be subject to any lien, obligation or liability of the Participant. All rights with respect to Awards granted to a Participant under the Plan shall be exercisable during the Participant's lifetime only by such Participant or, if applicable, the Permitted Transferees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. ***Administration and Amendment of the Plan***. The Board of Directors or the Committee may discontinue the Plan at any time and from time to time may amend or revise the terms of the Plan or any Award Agreement, as permitted by applicable law, except that it may not (a) make any amendment or revision in a manner unfavorable to a Participant (other than if immaterial), without the consent of the Participant or (b) make any amendment or revision without the approval of the stockholders of the Company if such approval is required by the rules of an exchange on which Shares are traded. Consent of the Participant shall not be required solely pursuant to the previous sentence in respect of any adjustment made pursuant to Section 12(a) except to the extent the terms of an Award Agreement expressly refer to an Adjustment Event, in which case such terms shall not be amended in a manner unfavorable to a Participant (other than if immaterial) without such Participant's consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. ***Clawback***. Notwithstanding any other provisions in this Plan, any Award which is subject to recovery under any law, government regulation or stock exchange listing requirement, will be subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement, or any clawback policy adopted by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. ***No Repricing & Reloads***. Unless otherwise approved by the stockholders of the Company, Options and Rights will not be repriced (other than in accordance with the adjustment provisions of Section 12), repurchased for cash on a date when the exercise price of such Option or Right is equal to or exceeds the Fair Market Value a Share or be subject to automatic reload provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. ***Effective Date***. The Plan shall become effective upon the Distribution, subject to its approval by the stockholders of the Company prior to the Distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. ***Severability***. If any of the provisions of this Plan or any Award Agreement is finally held to be invalid, illegal or unenforceable (whether in whole or in part), such provision shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability and the remaining provisions shall not be affected thereby; provided that, if any of such provisions is finally held to be invalid, illegal, or unenforceable because it exceeds the maximum scope determined to be acceptable to permit such provision to be enforceable, such provision shall be deemed to be modified to the minimum extent necessary to modify such scope in order to make such provision enforceable hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. ***Plan Headings***. The headings in this Plan are for the purpose of convenience only and are not intended to define or limit the construction of the provisions hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. ***Non-Uniform Treatment***. The Committee's determinations under the Plan need not be uniform and may be made by it selectively among persons who receive, or are eligible to receive, Awards (whether or not such persons are similarly situated). Without limiting the generality of the foregoing, the Committee shall be entitled, among other things, to make non-uniform and selective determinations, amendments and adjustments, and to enter into non-uniform and selective Award Agreements, as to the persons to receive Awards under the Plan, and the terms and provisions of Awards under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. ***Governing Law***. The Plan and any Award Agreements shall be governed by and construed in accordance with the laws of the State of Delaware, without reference to principles of conflict of laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. ***Successors and Assigns***. The terms of this Plan shall be binding upon and inure to the benefit of the Company and its successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28. ***Duration***. This Plan shall remain in effect until ten years from the Distribution unless sooner terminated by the Committee or the Board of Directors. Awards theretofore granted may extend beyond that date in accordance with the provisions of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29. ***Distribution Issuance***. (a) Notwithstanding Section 3 of the Plan, the Compensation Committee (the "MSG Sphere Committee") of the Board of Directors of MSG Sphere Corp. (formerly known as Madison Square Garden Entertainment Corp.) ("MSG Sphere") may grant Awards with respect to outstanding equity awards of MSG Sphere in connection with the distribution by MSG Sphere to holders of its common stock of approximately 67% of the outstanding Shares (such distribution, the "Distribution"). In this capacity, the MSG Sphere Committee shall have full authority to grant Awards prior to, and in connection with, the Distribution and determine the recipients, terms and conditions of such Awards, and each member of the MSG Sphere Committee shall be considered a "Covered Person" for purposes of Section 3(c) of the Plan. Following the Distribution, such Awards that were granted by the MSG Sphere Committee prior to, and in connection with, the Distribution shall be administered solely by the Committee in accordance with Section 3 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding Section 6(b) of the Plan, the exercise price of each Option granted by the MSG Sphere Committee in connection with the Distribution may be less than the Fair Market Value of a Share on the day on which the Option is granted, in order to preserve the intrinsic value of the outstanding MSG Sphere equity awards prior to the Distribution in accordance with the requirements of Section 409A of the Internal Revenue Code.

## Exhibit 10.5

***Exhibit 10.5*** 

***Form of 2023 Stock Plan For Non-Employee Directors***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Purpose**. The purposes of the 2023 Stock Plan for Non-Employee Directors are to attract and retain individuals who are not employees of the Company as members of the Board of Directors, by encouraging them to acquire a proprietary interest in the Company which is parallel to that of the stockholders of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Definitions**. The following terms shall have the respective meanings assigned to them as used herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "Award" shall mean an Option, Restricted Stock Unit and other stock-based award granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "Award Agreement" shall mean an agreement which may be entered into by a Participant and the Company, setting forth the terms and provisions applicable to Awards granted to such Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "Board of Directors" shall mean the Board of Directors of the Company, as constituted at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "Committee" shall mean the Compensation Committee of the Board of Directors, as described in Section 3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "Company" shall mean Madison Square Garden Entertainment Corp. (formerly known as MSGE Spinco, Inc.), a Delaware corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "Consent" shall mean (i) any listing, registration or qualification requirement in respect of an Award or Share with respect to any securities exchange or under any federal, state or local law, rule or regulation, (ii) any and all written agreements and representations by the Participant with respect to the disposition of Shares, or with respect to any other matter, which the Committee may deem necessary or desirable to comply with the terms of any such listing, registration or qualification requirement or to obtain an exemption therefrom, (iii) any and all other consents, clearances and approvals in respect of an action under the Plan by any governmental or other regulatory body or any stock exchange or self-regulatory agency, (iv) any and all consents by the Participant to (A) the Company's supplying to any third party recordkeeper of the Plan such personal information as the Committee deems advisable to administer the Plan and (B) the Company's imposing sales and transfer procedures and restrictions on Shares delivered under the Plan and (v) any and all other consents or authorizations required to comply with, or required to be obtained under law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "Fair Market Value" on a specified date shall mean the closing price for a Share on the stock exchange, if any, on which such Shares are primarily traded, but if no Shares were traded on such date, the average of the bid and asked closing prices at which one Share is traded on the over-the-counter market, as reported on the New York Stock Exchange or any other stock exchange on which the Shares may be traded, or, if none of the above is applicable, the value of a Share as established by the Committee for such date using any reasonable method of valuation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "GAAP" shall mean accounting principles generally accepted in the United States of America.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "Non-Employee Director" shall mean a member of the Board of Directors who is not a current employee of the Company or its subsidiaries.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "Option" shall mean an option granted pursuant to Section 6.1 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "Participant" shall mean a Non-Employee Director who has been granted an Award under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "Plan" shall mean the 2023 Stock Plan for Non-Employee Directors, as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "Restricted Stock Unit" shall mean a restricted stock unit granted pursuant to Section 6.2 of the Plan, each such unit representing an unfunded and unsecured promise to deliver a Share (or cash or other property equal in value to the Share).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "Share" shall mean a share of Class A Common Stock, par value $0.01 per share of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Plan Administration.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 ***Committee*.** The Plan shall be administered by the Committee, which shall consist of at least two members of the Board of Directors who shall be appointed by, and shall serve at the pleasure of, the Board of Directors. Except as otherwise determined by the Board of Directors, the members of the Committee shall be "non-employee directors" under Rule 16b-3 of the Securities Exchange Act of 1934 (the "Exchange Act"); provided, however, that the failure of the Committee to be so comprised shall not cause any Award to be invalid. The Committee may delegate any of its powers under the Plan to a subcommittee of the Committee (which hereinafter shall also be referred to as the Committee). It is expected and permitted that members of the Committee shall be Participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 ***Authority*.** The Committee shall have full authority, subject to the terms of the Plan (including Section 12), to (a) exercise all of the powers granted to it under the Plan, (b) construe, interpret and implement the Plan and all Awards and Award Agreements, (c) prescribe, amend and rescind rules and regulations relating to the Plan, including rules governing its own operations, (d) make all determinations necessary or advisable in administering the Plan, (e) correct any defect, supply any omission and reconcile any inconsistency in the Plan, (f) amend the Plan, (g) grant Awards and determine who shall receive Awards and the terms and conditions of such Awards, (h) amend any outstanding Award in any respect, including, without limitation, to (1) accelerate the time or times at which the Award becomes vested or unrestricted or may be exercised or at which Shares are delivered under the Award (and, without limitation on the Committee's rights, in connection with such acceleration, the Committee may provide that any Shares delivered pursuant to such Award shall be subject to vesting, transfer, forfeiture or repayment provisions similar to those in the Participant's underlying Award) or (2) waive or amend any restrictions or conditions applicable to such Award, or impose new restrictions or conditions and (i) determine at any time whether, to what extent and under what circumstances and method or methods (1) Awards may be (A) settled in cash, Shares, other securities, other Awards or other property, (B) exercised or (C) canceled, forfeited or suspended or (2) Shares, other securities, cash, other Awards or other property and other amounts payable with respect to an Award may be deferred either automatically or at the election of the Participant or of the Committee. The enumeration of the foregoing powers is not intended and should not be construed to limit in any way the authority of the Committee under the Plan which is intended, to the fullest extent permitted by law, to be plenary. The Plan, and all such rules, regulations, determinations and interpretations, shall be binding and conclusive upon the Company, its stockholders and all Participants, and upon their respective legal representatives, heirs, beneficiaries, successors and assigns and upon all other persons claiming under or through any of them.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 ***Liability*.** No member of the Board of Directors or the Committee or any employee of the Company or any of its affiliates (each such person a "Covered Person") shall have any liability to any person (including, without limitation, any Participant) for any action taken or omitted to be taken or any determination made in good faith with respect to the Plan or any Award. Each Covered Person shall be indemnified and held harmless by the Company against and from any loss, cost, liability or expense (including attorneys' fees) that may be imposed upon or incurred by such Covered Person in connection with or resulting from any action, suit or proceeding to which such Covered Person may be a party or in which such Covered Person may be involved by reason of any action taken or omitted to be taken under the Plan and against and from any and all amounts paid by such Covered Person, with the Company's approval, in settlement thereof, or paid by such Covered Person in satisfaction of any judgment in any such action, suit or proceeding against such Covered Person, provided that the Company shall have the right, at its own expense, to assume and defend any such action, suit or proceeding and, once the Company gives notice of its intent to assume the defense, the Company shall have sole control over such defense with counsel of the Company's choice. The foregoing right of indemnification shall not be available to a Covered Person to the extent that a court of competent jurisdiction in a final judgment or other final adjudication, in either case, not subject to further appeal, determines that the acts or omissions of such Covered Person giving rise to the indemnification claim resulted from such Covered Person's bad faith, fraud or willful criminal act or omission. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which Covered Persons may be entitled under the Company's Certificate of Incorporation or by-laws, as a matter of law, by agreement or otherwise, or any other power that the Company may have to indemnify such persons or hold them harmless.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. ***Eligibility*.** All Non-Employee Directors are eligible for the grant of Awards. Non-Employee Directors of MSG Sphere Corp. (formerly known as Madison Square Garden Entertainment Corp.) ("MSG Sphere") are also eligible for the grant of Shares in connection with the spin-off of the Company from MSG Sphere in respect of their outstanding awards issued by MSG Sphere.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***5.***  ***Shares Subject to the Plan.*** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 ***Number*.** The aggregate number of Shares that may be subject to Awards granted under this Plan shall not exceed [•], which may be either treasury Shares or authorized but unissued Shares. To the extent that (i) an Award shall be paid, settled or exchanged or shall expire, lapse, terminate or be cancelled for any reason without the issuance of Shares or (ii) any Shares under an Award are not issued because of payment or withholding obligations, then the Committee may also grant Awards with respect to such Shares. Awards payable only in cash or property other than Shares shall not reduce the aggregate remaining number of Shares with respect to which Awards may be made under the Plan and Shares relating to any other Awards that are settled in cash or property other than Shares, when settled, shall be added back to the aggregate remaining number of Shares with respect to which Awards may be made under the Plan. The maximum number of Shares that may be issued under the Plan shall be adjusted by the Committee as appropriate to account for the adjustments provided for in Section 5.2 hereof. Any Shares with respect to which the Company becomes obligated to make Awards through the assumption of, or in substitution for, outstanding awards previously granted by an acquired entity, shall not count against the Shares available to be delivered pursuant to Awards under this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 ***Adjustment in Capitalization*.** In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, forward or reverse stock split, reorganization, merger, consolidation, spin-off, combination, repurchase, share exchange, liquidation, dissolution or other similar corporate transaction or event affects Shares such that the failure to make an adjustment to an Award would not fairly protect the rights represented by the Award in accordance with the essential intent and principles thereof (each such event, an "Adjustment

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Event"), then the Committee shall, in such manner as it may determine to be equitable in its sole discretion, adjust any or all of the terms of an outstanding Award (including, without limitation, the number of Shares covered by such outstanding Award, the type of property to which the Award is subject and the exercise price of such Award). In determining adjustments to be made under this Section 5.2, the Committee may take into account such factors as it determines to be appropriate, including without limitation (i) the provisions of applicable law and (ii) the potential tax or accounting consequences of an adjustment (or not making an adjustment) and, in light of such factors or others, may make adjustments that are not uniform or proportionate among outstanding Awards. Any fractional shares or securities payable upon the exercise of an Award as a result of an adjustment pursuant to this Section 5.2 shall, at the election of the Committee, be payable in cash, Shares, or a combination thereof, on such bases as the Committee may determine in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.***  ***Terms and Conditions of Awards.*** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.1***  ***Options.*** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.1 ***Terms and Conditions*.** The form, terms and conditions of each Option shall be determined by the Committee and shall be set forth in an Award Agreement. Such terms and conditions may include, without limitation, provisions relating to the vesting and exercisability of such Options as well as the conditions or circumstances upon which such Options may be accelerated, extended, forfeited or otherwise modified; provided, however, that unless the Award Agreement states otherwise, all Options granted under the Plan shall be fully vested and exercisable on the date of grant. All or any part of any unexercised Options granted to any Participant, to the extent not otherwise exercisable, may be made exercisable upon the occurrence of such special circumstances or events as determined in the sole discretion of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.2 ***Exercise Price*.** The exercise price per Share of the Shares to be purchased pursuant to each Option shall be fixed by the Committee at the time an Option is granted, but in no event shall it be less than the Fair Market Value of a Share on the date on which the Option is granted. Such exercise price shall thereafter be subject to adjustment as required by the Award Agreement relating to each Option or Section 5.2 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.3 ***Duration of Options*.** The duration of any Option granted under this Plan shall be for a period fixed by the Committee but shall, except as described in the next sentence, in no event be more than ten (10) years. Notwithstanding the foregoing, an Award Agreement may provide that, in the event the Participant dies while the Option is outstanding, the Option will remain outstanding until the first anniversary of the Participant's date of death, and whether or not such first anniversary occurs prior to or following the expiration of ten (10) years from the date the Option was granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.4 ***Written Notice for Exercise*.** An Option shall be exercised by the delivery to any person who has been designated by the Company for the purpose of receiving the same, of a written notice duly signed by the Participant (or the representative of the estate or the heirs of a deceased Participant) to such effect (or electronic notice in a manner, if any, previously approved by the Company).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.5 ***Payment.*** Unless the Company chooses to settle an Option in cash, Shares or a combination thereof pursuant to Section 6.1.6 hereof, the Participant shall be required to deliver to the Company, within five (5) days of the delivery of the notice described above, either cash, a check payable to the order of the Company, Shares duly endorsed over to the Company (which Shares shall be valued at their Fair Market Value as of the date preceding the day of such exercise) or any combination of such methods, which together amount to the full exercise price of the Shares purchased

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pursuant to the exercise of the Option. Notwithstanding the preceding sentence, the Company may establish an electronic exercise program with a broker and the Company and the Participant may agree upon any other reasonable manner of providing for payment of the exercise price of the Option. Except to the extent the Committee chooses to settle any Option in cash pursuant to Section 6.1.6 hereof, within a reasonable time after exercise of an Option the Company shall either issue to the Participant a certificate representing the Shares purchased pursuant to the exercise of the Option or credit the number of such Shares to a book-entry account. To the extent the Committee chooses to settle any Option in cash pursuant to Section 6.1.6, within a reasonable time after exercise of an Option, the Company shall cause to be delivered to the person entitled thereto a payment for the amount payable pursuant to the exercise of the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.6 ***Settlement of an Option*.** When an Option is exercised pursuant to Section 6.1.4 hereof, the Committee, in its sole discretion, may elect, in lieu of issuing Shares pursuant to the terms of the Option, to settle the Option by paying the Participant an amount equal to the product obtained by multiplying (i) the excess of the Fair Market Value of one Share on the date the Option is exercised over the exercise price of the Option (the "Option Spread") by (ii) the number of Shares with respect to which the Option is exercised. The amount payable to the Participant in these circumstances shall be paid by the Company either in cash or in Shares having a Fair Market Value equal to the Option Spread, or a combination thereof, as the Committee shall determine at the time the Option is exercised or at the time the Option is granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.2***  ***Restricted Stock Units.*** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.1 ***Terms and Conditions*.** The form, terms and conditions of each Restricted Stock Unit shall be determined by the Committee and shall be set forth in an Award Agreement. Such terms and conditions may include, without limitation, the conditions or circumstances upon which such Restricted Stock Unit will be paid, forfeited or otherwise modified, and the date or dates upon which any Shares, cash or other property shall be delivered to the Participant in respect of the Restricted Stock Units; provided, however, that unless the Award Agreement states otherwise, all Restricted Stock Units granted under the Plan shall be fully vested on the date of grant and shall be payable on such date as determined by the Committee. All or any part of any Restricted Stock Units granted to any Participant, to the extent not otherwise paid, may be paid to the Participant upon the occurrence of such special circumstances or events as determined in the sole discretion of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.2 S***ettlement of Restricted Stock Units*.** The Committee, in its sole discretion, may instruct the Company to pay on the date when Shares would otherwise be issued pursuant to a Restricted Stock Unit, in lieu of such Shares, a cash amount equal to the number of such Shares multiplied by the Fair Market Value of a Share on the date when Shares would otherwise have been issued. If a Participant is entitled to receive other stock, securities or other property as a result of adjustment, pursuant to Section 5.2 hereof, the Committee, in its sole discretion, may instruct the Company to pay, in lieu of such other stock, securities or other property, cash equal to the fair market value thereof as determined in good faith by the Committee. Until the delivery of such Shares, cash, securities or other property, the rights of a Participant with respect to a Restricted Stock Unit shall be only those of a general unsecured creditor of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.3 ***Right to Receive Dividends on Restricted Stock Units*.** Unless the Committee determines otherwise, during the period prior to payment of the Restricted Stock Unit, all ordinary cash dividends (as determined by the Committee in its sole discretion) that would have been paid upon any Share underlying a Restricted Stock Unit had such Shares been issued shall be paid only at the time and to the extent such Restricted Stock Unit is vested.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 ***Grant of Other Stock-Based Awards*.** The Committee may grant other types of equity-based or equity-related Awards (including, without limitation, restricted Shares, unrestricted Shares and stock appreciation rights) in such amounts and subject to such terms and conditions as the Committee shall determine. Such Awards may entail the transfer of actual Shares, or payment in cash or otherwise of amounts based on the value of Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. ***No Rights of a Stockholder*.** A Participant shall not have any of the rights or privileges of a stockholder of the Company with respect to the Shares subject to an Award unless and until such Shares have been issued and have been duly registered in the Participant's name. Thereupon, such Participant shall have full voting, dividend and other ownership rights with respect to such Shares. The Company will not be obligated to issue or deliver any Shares unless and until all legal matters in connection with the issuance and delivery of Shares have been approved by the Company's counsel and the Company's counsel determines that all applicable federal, state and other laws and regulations have been complied with and all listing requirements for relevant stock exchanges have been met.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. ***Compliance with Rule 16b-3*.** It is the Company's intent that the Plan comply in all respects with Rule 16b-3 under the Securities Exchange Act of 1934, as amended (the "Act"). If any provision of the Plan is later found not to be in compliance with such Rule, the provision shall be deemed null and void. All actions with respect to Awards under the Plan shall be executed in accordance with the requirements of Section 16 of the Act, as amended, and any regulations promulgated thereunder. To the extent that any of the provisions contained herein do not conform with Rule 16b-3 of the Act or any amendments thereto or any successor regulation, then the Committee may make such modifications so as to conform the Plan and any Awards granted thereunder to the Rule's requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. ***Consents*.** If the Committee shall at any time determine that any Consent is necessary or desirable as a condition of, or in connection with, the granting of any Award, the delivery of Shares or the delivery of any cash, securities or other property under the Plan, or the taking of any other action, then such action shall not be taken, in whole or in part, unless and until such Consent shall have been effected or obtained to the full satisfaction of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. ***Withholding*.** If the Company shall be required to withhold any amounts by reason of a federal, state or local tax laws, rules or regulations in respect of any Award, the Company shall be entitled to deduct or withhold such amounts from any payments (including, without limitation Shares which would otherwise be issued to the Participant pursuant to the Award; provided that, to the extent desired for GAAP purposes, such withholding shall not exceed the statutory minimum amount required to be withheld) to be made to the Participant. In any event, the Participant shall make available to the Company, promptly when requested by the Company, sufficient funds or Shares to meet the requirements of such withholding and the Company shall be entitled to take and authorize such steps as it may deem advisable in order to have such funds made available to the Company out of any funds or property due to the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. ***Non-Transferability of Awards*.** Unless the Committee shall permit (on such terms and conditions as it shall establish) an Award to be transferred to a member of the Participant's immediate family or to a trust or similar vehicle for the benefit of members of the Participant's immediate family (collectively, the "Permitted Transferees"), no Award shall be assignable or transferable except by will or by the laws of descent and distribution, and except to the extent required by law, no right or interest of any Participant shall be subject to any lien, obligation or liability of the Participant. All rights with respect to Awards granted to a Participant under the Plan shall be exercisable during the Participant's lifetime only by such Participant or, if applicable, the Permitted Transferees.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. ***Administration and Amendment of Plan*.** The Board of Directors or the Committee may discontinue the Plan at any time and from time to time may amend or revise the terms of the Plan or any Award Agreement, as permitted by applicable law, except that it may not (a) make any amendment or revision in a manner unfavorable to a Participant (other than if immaterial), without the consent of the Participant or (b) make any amendment or revision without the approval of the stockholders of the Company if such approval is required by the rules of an exchange on which Shares are traded. Consent of the Participant shall not be required solely pursuant to the previous sentence in respect of any adjustment made pursuant to Section 5.2 except to the extent the terms of an Award Agreement expressly refer to an Adjustment Event, in which case such terms shall not be amended in a manner unfavorable to a Participant (other than if immaterial) without such Participant's consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. ***No Repricing & Reloads***. Unless otherwise approved by the stockholders of the Company, Options and stock appreciation rights will not be repriced (other than in accordance with the adjustment provisions of Section 5.2), repurchased for cash on a date when the exercise price of such Option or stock appreciation right is equal to or exceeds the Fair Market Value of a Share or be subject to automatic reload provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. ***Effective Date*.** The Plan shall become effective upon the Distribution, subject to its approval by the stockholders of the Company prior to the Distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. S***everability*.** If any of the provisions of this Plan or any Award Agreement is finally held to be invalid, illegal or unenforceable (whether in whole or in part), such provision shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability and the remaining provisions shall not be affected thereby; provided that, if any of such provisions is finally held to be invalid, illegal, or unenforceable because it exceeds the maximum scope determined to be acceptable to permit such provision to be enforceable, such provision shall be deemed to be modified to the minimum extent necessary to modify such scope in order to make such provision enforceable hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. ***Plan Headings*.** The headings in this Plan are for the purpose of convenience only and are not intended to define or limit the construction of the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. ***Non-Uniform Treatment*.** The Committee's determinations under the Plan need not be uniform and may be made by it selectively among Participants (whether or not such Participants are similarly situated). Without limiting the generality of the foregoing, the Committee shall be entitled, among other things, to make non-uniform and selective determinations, amendments and adjustments, and to enter into non-uniform and selective Award Agreements, as to the terms and provisions of Awards under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. ***Governing Law*.** The Plan and any Award Agreements shall be governed by, and construed in accordance with, the laws of the state of Delaware, without reference to principles of conflicts of laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. ***Successors and Assigns*.** The terms of the Plan shall be binding upon and inure to the benefit of the Company and its successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. ***Duration*.** This Plan shall remain in effect until ten years from the Distribution unless sooner terminated by the Committee or the Board of Directors. Awards theretofore granted may extend beyond that date in accordance with the provisions of the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. ***Distribution Issuance.*** Notwithstanding Section 3 of the Plan, the Compensation Committee (the "MSG Sphere Committee") of the Board of Directors of MSG Sphere may grant Awards with respect to outstanding equity awards of MSG Sphere in connection with the distribution by MSG Sphere to holders of its common stock of approximately 67% of the outstanding Shares (such distribution, the "Distribution"). In this capacity, the MSG Sphere Committee shall have full authority to grant Awards prior to, and in connection with, the Distribution and determine the recipients, terms and conditions of such Awards, and each member of the MSG Sphere Committee shall be considered a "Covered Person" for purposes of Section 3.3 of the Plan. Following the Distribution, such Awards that were granted by the MSG Sphere Committee prior to, and in connection with, the Distribution shall be administered solely by the Committee in accordance with Section 3.

## Exhibit 10.7

***Exhibit 10.7***

**<u>INDEMNIFICATION AGREEMENT</u>**

This INDEMNIFICATION AGREEMENT is effective as of this day of (the "Agreement") by and between MSGE Spinco, Inc., a Delaware corporation (to be renamed Madison Square Garden Entertainment Corp., and referred to herein as the "Company"), and ("Indemnitee").

WHEREAS, Indemnitee is [a][an] [director][officer] of the Company and may also be serving or may serve in the future in another Position (as hereinafter defined) at an Affiliated Entity (as hereinafter defined);

WHEREAS, in consideration of the Indemnitee acting in the Position or Positions and assuming the responsibilities attendant to the Position or Positions, the Company desires to provide Indemnitee the rights to indemnification and payment or reimbursement of expenses described below;

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Indemnitee do hereby covenant and agree as follows:

Section 1. <u>Definitions</u>. For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "Change of Control" means, and shall be deemed to have occurred if, on or after the date of this Agreement, (i) any "person" (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")), other than (A) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its subsidiaries acting in such capacity, or (B) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company, is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than 20% of the total voting power represented by the Company's then outstanding Voting Securities at a time when Dolan Family Control does not exist, (ii) during any period of two consecutive years, individuals who at the beginning of such period constitute the board of directors of the Company and any new director whose election by the board of directors of the Company or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds (<sup>2</sup>⁄<sub>3</sub>) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof at a time when Dolan Family Control does not exist, (iii) the stockholders of the Company approve a merger or consolidation of the Company with any other corporation other than a merger or consolidation that would result in the Voting Securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into Voting Securities of the surviving entity) at least 80% of the total voting power represented by the Voting Securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, (iv) the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement

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for the sale or disposition by the Company of (in one transaction or a series of related transactions) all or substantially all of its assets, or (v) the Company shall file or have filed against it, and such filing shall not be dismissed, any bankruptcy, insolvency or dissolution proceedings, or a trustee, administrator or creditors committee shall be appointed to manage or supervise the affairs of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "Dolan Family Control" shall be deemed to exist if at the time, members of the immediate family, including descendants, of Charles F. Dolan or trusts or other family entities holding securities on their behalf, "beneficially own" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, securities of the Company representing more than 51% of the total voting power represented by the Company's then outstanding Voting Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "Expenses" shall include all out of pocket fees, costs and expenses, including, without limitation, attorneys' fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, postage, delivery service fees, and all other disbursements or expenses of the types customarily incurred if Indemnitee is involved in any manner (including, without limitation, as a party or a witness) in any Proceeding (as hereinafter defined) and the fees and costs incurred in seeking to enforce, interpret or construe an indemnification, reimbursement or payment right under this Agreement, the Company's or any subsidiary's certificate of incorporation or by-laws, any other agreement to which Indemnitee and the Company or any of its subsidiaries are party, any vote of stockholders or directors of the Company or any of its subsidiaries, the Delaware General Corporation Law (the "DGCL"), any other applicable law or any liability insurance policy or in connection with a determination contemplated by Section 5 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "Position" is (a) service as a director, officer, partner, trustee, fiduciary, manager or employee of the Company or of any other corporation, limited liability company, public limited company, partnership, joint venture, trust, employee benefit plan, fund or other enterprise as to which the Company beneficially owns, directly or indirectly, at least a majority of the voting power of equity or membership interests, or in the case of employee benefit plans, is sponsored or maintained by the Company or one of the foregoing (any of the foregoing, an "Affiliated Entity") or (b) service at the request of the Company as a director, officer, partner, trustee, fiduciary, manager or employee of a corporation, limited liability company, public limited company, partnership, joint venture, trust, employee benefit plan, fund or other enterprise which is not an Affiliated Entity (an "Unaffiliated Entity"), provided, however, that such request for service has been approved in writing by the Board of Directors of the Company or a committee thereof or by the Executive Chairman or Chief Executive Officer of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "Proceeding" shall mean any civil, criminal, administrative or investigative action, suit, proceeding or procedure in which the Indemnitee is involved in any manner by reason of the fact of the Indemnitee's Position or Positions, including, without limitation, as a party or a witness.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "Undertaking" shall mean an undertaking by Indemnitee to repay Expenses if it shall ultimately be determined by a court of competent jurisdiction from which no appeal can be taken that Indemnitee is not entitled to be indemnified by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "Voting Securities" means any securities of the Company that vote generally in the election of directors.

Section 2. <u>Indemnification — General</u>. The Company shall indemnify, subject to the terms of this Agreement, Indemnitee against all judgments, awards, fines, ERISA excise taxes, penalties, amounts paid in settlement, liabilities and losses and shall pay or reimburse all Expenses incurred by Indemnitee, subject to the terms of this Agreement, to the fullest extent permitted by Delaware law in effect on the date hereof or as amended to increase the scope of permitted indemnification, if Indemnitee is involved in any manner (including, without limitation, as a party or a witness) in any Proceeding by reason of the fact of Indemnitee's Position or Positions, including, without limitation, any Proceeding by or in the right of the Company to procure a judgment in its favor, but excluding any Proceeding initiated by Indemnitee other than (i) Proceedings initiated by Indemnitee which are consented to in advance in writing by the Company and (ii) counterclaims made by Indemnitee in a Proceeding which directly respond to and negate the affirmative claim made against Indemnitee in such Proceeding. In the event Indemnitee incurs Expenses or settles a Proceeding under circumstances in which the Company would have an obligation to indemnify Indemnitee for the Expenses or settlement amount, the Company may discharge its indemnification obligation by making payments on behalf of Indemnitee directly to the parties to whom such Expenses or settlement amounts are owed by Indemnitee. Notwithstanding the foregoing, the Company will also, to the fullest extent permitted by Delaware law in effect on the date hereof or as amended to increase the scope of permitted indemnification, indemnify, reimburse and pay Indemnitee for Expenses incurred in seeking to enforce, interpret or construe an indemnification, reimbursement or payment right under this Agreement, the Company's or any subsidiary's certificate of incorporation or by-laws, any other agreement to which Indemnitee and the Company or any of its subsidiaries are party, any vote of stockholders or directors of the Company or any of its subsidiaries, the DGCL, any other applicable law or any liability insurance policy.

Section 3. <u>Expenses</u>. Upon receipt by the Company of an Undertaking by Indemnitee, the Company shall pay or reimburse Expenses incurred by Indemnitee in connection with a Proceeding, any action or proceeding contemplated by the last sentence of Section 2 of this Agreement and any determination contemplated by Section 5 of this Agreement, in each case in advance of its final disposition. The Company shall not impose other conditions to advancement and shall not seek or agree to any order that would prohibit Indemnitee from enforcing such right to advancement. Such payment shall be made within thirty (30) days after the receipt by the Company of a written request from Indemnitee requesting reimbursement or payment of such Expenses. Such request shall reasonably evidence the Expenses incurred by Indemnitee. The burden of proving that the Company is not liable for reimbursement or payment of Expenses shall be on the Company.

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Section 4. <u>Limitations</u>. The Company shall not indemnify Indemnitee (1) if such indemnification or payment would be prohibited under any applicable laws, rules or regulations, (2) for an accounting of profits arising from the purchase and sale by the Indemnitee of securities under Section 16(b) of the Exchange Act, or (3) for violations of Federal or state insider trading laws, unless, in each such case, Indemnitee has been successful on the merits, received the Company's written consent prior to incurring an Expense or, after receiving the Company's written consent to incurring the cost of settlement, settled the Proceeding. This Section 4 shall not limit the Company's obligation to advance Expenses to Indemnitee pursuant to Section 3 of this Agreement.

Section 5. <u>Standard of Conduct</u>. No claim for indemnification shall be paid by the Company unless it has been determined that Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful, which is the standard of conduct set forth in Section 145 of the DGCL (as such, the "Standard of Conduct", with such Standard of Conduct to be automatically revised to conform to any successor provision of the DGCL that is more favorable to Indemnitee) except that no indemnification shall be made with respect to any Proceeding by or in right of the Company as to which the Indemnitee shall have been adjudged to be liable to the Company, except as determined by the court or other tribunal adjudicating the Proceeding. Unless (1) a Change of Control (as defined in Section 1 of this Agreement) shall have occurred, or (2) ordered by a court or other tribunal, such determinations of whether the Standard of Conduct has been satisfied shall be made by (A) a majority vote of the directors of the Company who are not parties to the Proceeding, even though less than a quorum, or (B) by a committee of such directors designated by a majority vote of such directors, even though less than a quorum, or (C) if there are no such directors, or if such directors so direct, by independent legal counsel in a written opinion, or (D) by stockholders of the Company. If a Change of Control has occurred, such determination of whether the Standard of Conduct has been satisfied shall be made by independent legal counsel in a written opinion to the Company and Indemnitee. Such independent legal counsel shall be selected by Indemnitee and approved by the Company (which approval shall not be unreasonably withheld or delayed). The Company shall pay the fees and expenses of the independent legal counsel and indemnify the independent legal counsel against any and all expenses (including attorneys' fees), claims, liabilities and damages arising out of or relating to its engagement and shall indemnify, reimburse and pay Indemnitee for Expenses incurred in connection with such determination. Indemnitee shall be deemed to have met the Standard of Conduct if the determination is not made by the Company within sixty days of receipt by the General Counsel of a written request by Indemnitee for indemnity. If the Indemnitee has been determined not to have met the Standard of Conduct, Indemnitee may commence litigation in any court in the State of Delaware having subject matter jurisdiction thereof and in which venue is proper seeking an initial de novo determination by the court or challenging any such determination or any aspect thereof, including the legal or factual bases therefor, and the Company hereby consents to service of process and agrees to appear in any such proceeding. Any determination under this Section 5 otherwise shall be conclusive and binding on the Company and Indemnitee. In no event shall a determination be a prerequisite to or affect the Company's obligation to advance Expenses to Indemnitee pursuant to Section 3 of this Agreement.

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Section 6. <u>Contribution</u>. If the full indemnification and payment or reimbursement of Expenses provided by this Agreement may not be paid to Indemnitee because it has been finally adjudicated that such indemnification or payment or reimbursement of Expenses incurred by Indemnitee is prohibited by Delaware or other law, or if it has been determined as provided above that the Standard of Conduct has not been met, and if and to the extent that Indemnitee is not entitled to coverage under the Company's directors and officers liability insurance policy, then in respect of any such actual or threatened Proceeding in which the Company or an Affiliated Entity is jointly liable with Indemnitee (or would be if joined in such Proceeding), as determined:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if no Change of Control has occurred, by (1) majority vote of the directors of the Company who are not parties to the Proceeding, even though less than a quorum, or (2) by a committee of such directors designated by a majority vote of such directors, even though less than a quorum, or (3) if there are no such directors, or if such directors so direct, by independent legal counsel in a written opinion, or (4) by stockholders of the Company, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if a Change of Control has occurred, by independent legal counsel in a written opinion to the Company and Indemnitee (such independent legal counsel to be selected by Indemnitee and approved by the Company (which approval shall not be unreasonably withheld or delayed)),

the Company shall contribute to the amount of loss, liability or Expenses incurred by Indemnitee in such proportion as appropriate to reflect (i) the relative benefits received by the Company and any Affiliated Entity on the one hand and Indemnitee on the other hand from the transaction from which such Proceeding arose and (ii) the relative fault of the Company, any Affiliated Entity or Unaffiliated Entity, including other persons indemnified by the Company on the one hand, and Indemnitee on the other hand in connection with the events which resulted in such Proceeding, as well as any other relevant equitable considerations. The relative fault of the Company, any Affiliated Entity or Unaffiliated Entity, including other persons indemnified by the Company, on the one hand, and of Indemnitee on the other hand shall be determined by reference to, among other things, the parties' relative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such Proceeding. The Company acknowledges that it would not be just and equitable if contribution pursuant to this Section 6 were determined by pro rata allocation or any other method of allocation which does not take into account the foregoing equitable considerations.

Section 7. <u>Defense of Claim</u>. If any Proceeding asserted or commenced against Indemnitee is also asserted or commenced against the Company or an Affiliated Entity, the Company or the Affiliated Entity shall be entitled, except as otherwise provided herein below, to assume the defense thereof. After notice from the Company or any Affiliated Entity to Indemnitee of its election to assume the defense of any such Proceeding, Indemnitee shall have the right to employ Indemnitee's own counsel in such Proceeding, but the Expenses of such counsel incurred after notice from the Company or any Affiliated Entity to Indemnitee of its assumption of the defense thereof shall be at the expense of Indemnitee and the Company shall not be obligated to Indemnitee under this Agreement for any Expenses subsequently incurred by

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Indemnitee in connection therewith other than reasonable costs of investigation and reasonable travel and lodging expenses arising out of Indemnitee's participation in the defense of such Proceeding, unless (i) otherwise notified by the Company, (ii) Indemnitee's counsel shall have reasonably concluded and so notified the Company that there is a conflict of interest between the Company or any Affiliated Entity and Indemnitee in the conduct of defense of such Proceeding, or (iii) the Company or any Affiliated Entity shall not in fact have employed counsel to assume the defense of such Proceeding, in any of which cases the Expenses of Indemnitee in such Proceeding shall be reimbursed or paid by the Company. The Company or any Affiliated Entity shall not be entitled to assume the defense of any Proceeding brought by or on behalf of the Company by its stockholders or as to which Indemnitee's counsel shall have made the conclusion set forth in clause (ii) of the preceding sentence of this Section 7.

Section 8. <u>Settlement</u>. The Company will not, without the prior written consent of the Indemnitee, which may be provided or withheld in Indemnitee's sole discretion, effect any settlement of any Proceeding against Indemnitee unless such settlement solely involves the payment of money by persons other than Indemnitee and includes an unconditional release of Indemnitee from all liability arising from or relating to any matters that are the subject of such Proceeding. The Company shall not be obligated to indemnify Indemnitee against amounts paid in settlement of a Proceeding against Indemnitee if such settlement is effected by Indemnitee without the Company's prior written consent, which shall not be unreasonably withheld.

Section 9. <u>Duration of Agreement</u>. This Agreement will be considered to be in effect on the first day of the Indemnitee's Position or Positions, even if such date occurs prior to the date of this Agreement, and will continue for so long as Indemnitee may be subject to any possible Proceeding by reason of the fact of Indemnitee's Position or Positions, whether or not Indemnitee ceases to hold such Position or Positions.

Section 10. <u>Confidentiality</u>. Except as required by law or as otherwise becomes public (other than in violation of this Agreement) or as communicated to Indemnitee's counsel or to Indemnitee's or the Company's insurer, in seeking indemnification or reimbursement or payment of Expenses hereunder, Indemnitee agrees to keep confidential any information that arises in connection with this Agreement, including but not limited to, claims for indemnification or payment or reimbursement of Expenses, amounts paid or payable under this Agreement and any communications between the Indemnitee and the Company.

Section 11. <u>Applicability to Other Indemnification Provisions</u>. This Agreement is entered into pursuant to Section 145(f) of the DGCL and to the fullest extent permitted by law shall be in addition to indemnification and reimbursement or payment of Expenses provided by the DGCL. To the fullest extent permitted by law, the Company shall apply this Agreement in considering requests for indemnification or reimbursement or payment of Expenses under its certificate of incorporation, by-laws, or any other agreement or undertaking of the Company or similar constituent documents of an Affiliated Entity that provides rights to indemnification or reimbursement or payment of Expenses.

Section 12. <u>No Duplication of Payments</u>. The Company shall indemnify and pay or reimburse Expenses of the Indemnitee in accordance with the provisions of this Agreement,

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Section 13. <u>Insurance</u>. To the extent the Company maintains an insurance policy or policies providing directors and officers liability insurance, Indemnitee shall be covered by such policy or policies, in accordance with and subject to its or their terms, to the maximum extent of the coverage available for any member of the Board.

Section 14. <u>Subrogation</u>. In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee under any insurance policy held by the Company or an Affiliated Entity or otherwise. Indemnitee shall execute all documents reasonably required and shall do everything reasonably necessary to secure such rights, including the execution of such documents necessary to enable the Company to effectively bring suit to enforce such rights.

Section 15. <u>Notice by Indemnitee</u>. Indemnitee shall promptly notify the Company in writing in accordance with Section 21 of this Agreement upon the earlier of (a) becoming aware of a Proceeding where indemnity or reimbursement or payment of Expenses may be sought or (b) receiving or being served with any summons, citation, subpoena, complaint, indictment, information, inquiry or other document relating to any Proceeding which may be subject to indemnification or reimbursement or payment of Expenses covered hereunder. As a condition to indemnification or reimbursement or payment of Expenses, any demand for payment by Indemnitee hereunder shall be in writing.

Section 16. <u>Severability</u>. If any provision of this Agreement shall be held to be invalid, inoperative or unenforceable as applied to any particular Proceeding or in any particular jurisdiction, for any reason, such circumstances shall not have the effect of rendering the provision in question invalid, inoperative or unenforceable in any other distinguishable Proceeding or jurisdiction, or of rendering any other provision or provisions herein contained invalid, inoperative or unenforceable to any extent whatsoever. The invalidity, inoperability or unenforceability of any one or more phrases, sentences, clauses or sections contained in this Agreement shall not affect any other remaining part of this Agreement.

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Section 17. <u>Binding Effect</u>. This Agreement shall be binding upon, and inure to the benefit of, Indemnitee and Indemnitee's heirs, personal representatives, executors and administrators and upon the Company and its successors and assigns.

Section 18. <u>Counterparts</u>. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement.

Section 19. <u>Headings</u>. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

Section 20. <u>Modification and Waiver</u>. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

Section 21. <u>Notices</u>. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by hand, on the date delivered, (ii) mailed by certified or registered mail, with postage prepaid, on the third business day after the date on which it is mailed or (iii) sent by guaranteed overnight courier service, with postage prepaid, on the business day after the date on which it is sent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If to Indemnitee, to the address set forth on the signature page of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If to the Company, to:

MSGE Spinco, Inc. (to be renamed Madison Square Garden Entertainment Corp.)

Two Penn Plaza

New York, NY 10121

Attention: General Counsel

or to such other address as may have been furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case may be.

Section 22. <u>Governing Law</u>. The parties agree that this Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware.

Section 23. <u>Venue</u>. Any Proceeding relating to or arising from this Agreement, including without limitation, any Proceeding regarding indemnification or reimbursement or payment of Expenses arising out of this Agreement, shall only be brought and heard in the Chancery Court in and for the State of Delaware, and may not be brought in any other judicial forum.

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

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| |
|:---|
| MSGE SPINCO, INC. |
| (to be renamed Madison Square Garden<br> Entertainment Corp.) |
| By: |
| Name: |
| Title: |

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| | |
|:---|:---|
| AGREED TO AND ACCEPTED BY: | AGREED TO AND ACCEPTED BY: |
| Name: | [Insert Name of Indemnitee] |
| Address: | [Insert Address of Indemnitee] |

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## Exhibit 10.8

***Exhibit 10.8***

**FORM OF NON-EMPLOYEE DIRECTOR AWARD AGREEMENT** 

[Full Name]

[Date]

Dear [First Name]:

Pursuant to the 2023 Stock Plan for Non-Employee Directors (the "<u>Plan</u>") of Madison Square Garden Entertainment Corp. (formerly known as MSGE Spinco, Inc.) (the "<u>Company</u>"), you have been granted, effective as of [Date], [#RSUs] restricted stock units ("<u>Units</u>") (such grant, the "<u>Award</u>"). The Units are granted subject to the terms and conditions set forth in this agreement (this "<u>Agreement</u>") and in the Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. RESTRICTED STOCK UNITS:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Each Unit shall represent a fully vested unfunded, unsecured promise by the Company to deliver to you (or, if applicable, to an Approved Transferee in accordance with Section 2 below) one share of the Company's Class A Common Stock, par value $.01 per share ("<u>Share</u>") or, in the sole discretion of the Committee pursuant to Section 6.2.2 of the Plan, cash equal to the Fair Market Value of a Share, on the first business day after the expiration of 90 days following the date on which you terminate your service as a member of the Board of Directors (the "<u>Delivery Date</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 Notwithstanding any other provision to the contrary, if you die prior to the Delivery Date, the Shares (or cash in lieu of all or any portion thereof) corresponding to your outstanding Units shall be delivered as soon as practicable thereafter to your estate (or, if applicable, to an Approved Transferee in accordance with Section 2 below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 Prior to the Delivery Date, at or promptly after the time of distribution of any ordinary cash dividend paid by the Company in respect of the Shares, the record date for which occurs on or after the date hereof, you (or, if applicable, an Approved Transferee in accordance with Section 2 below) shall be entitled to receive an amount in cash equal to such ordinary cash dividend payment that would have been made in respect of the Shares underlying the Units, as if the Shares had been actually delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 Any recapitalization, change in control or going-private transaction of the Company shall be treated as a "similar corporate transaction" for purposes of Section 5.2 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Units (or any rights and obligations thereunder) granted to you may not be sold, exchanged, transferred, assigned, pledged, hypothecated or otherwise disposed of, whether voluntarily or involuntarily, other than by will or by the laws of descent and distribution, and all such Units (and any rights thereunder) shall be exercisable during your lifetime only by you or your legal representative. Notwithstanding the immediately preceding sentence, (a) the Units may be transferred to a trust or similar vehicle for the benefit of a member of your immediate family, so long as (1) you remain a trustee or co-trustee of the trust, and (2) you provide the Company with at least three (3) business days advanced written notice of any such transfer (an

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"<u>Approved Transferee</u>"), and (b) the Committee may permit, under such terms and conditions that it deems appropriate in its sole discretion, you to transfer any Unit to any other person or entity that the Committee so determines. Any assignment in violation of the provisions of this Section or Section 11 of the Plan shall be void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. It is the Company's intent that the Award granted comply in all respects with Rule 16b-3 of the Securities Exchange Act of 1934, as amended (the "<u>Act</u>"). All actions with respect to Units under the Plan shall be executed in accordance with the requirements of Section 16 of the Act, as amended, and any regulations promulgated thereunder. To the extent that any of the provisions contained herein do not conform with Rule 16b-3 of the Act or any amendments thereto or any successor regulation, then the Committee may make such modifications so as to conform the Units granted thereunder to the Rule's requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. If the Company shall be required to withhold any amounts by reason of any federal, state or local tax laws, rules or regulations in respect of the Units, you shall make available to the Company, promptly when requested by the Company, sufficient funds to meet the requirements of such withholding and the Company shall be entitled to take and authorize such steps as it may deem advisable in order to have such funds available to the Company out of any funds or property to become due to you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. It is the Company's intent that the Award comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended ("<u>Section</u> <u>409A</u>") and that the Award be administered and interpreted accordingly. If and to the extent that any payment or benefit under the Award is determined by the Company to constitute "non-qualified deferred compensation" subject to Section 409A and is payable to you by reason of your termination of employment, then (a) such payment or benefit shall be made or provided to you only upon a "separation from service" as defined for purposes of Section 409A under applicable regulations and (b) if you are a "specified employee" (within the meaning of Section 409A and as determined by the Company), such payment or benefit shall not be made or provided before the date that is six months after the date of your separation from service (or earlier death). Notwithstanding any provision of Sections 3.2, 7 or 9 of the Plan to the contrary, any amendment to the terms of any outstanding Award or any delay in the issuance or delivery of Shares shall comply with Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Units granted by this Award are being issued pursuant and subject to the Plan. Capitalized terms used herein without definition shall have the meanings given to such terms that are defined in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Execution of this Agreement by the Company and/or by you may be in the form of an electronic, manual or similar signature, and such signature shall be treated as an original signature for all purposes.

[Remainder of the page intentionally left blank]

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| | |
|:---|:---|
| MADISON SQUARE GARDEN ENTERTAINMENT CORP. | MADISON SQUARE GARDEN ENTERTAINMENT CORP. |
| By: |  |
|  | Name |
|  | Title: |

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By your electronic acknowledgement of acceptance, you (i) acknowledge that a complete copy of the Plan and an executed original of this Agreement have been made available to you and (ii) agree to all of the terms and conditions set forth in the Plan and this Agreement.a

## Exhibit 10.9

***Exhibit 10.9***

**FORM OF RESTRICTED STOCK UNITS AGREEMENT** 

Dear [Participant Name]:

Pursuant to the 2023 Employee Stock Plan (the "<u>Plan</u>"), you have been selected by the Compensation Committee of the Board of Directors (as more fully described in Section 11, the "<u>Committee</u>") of Madison Square Garden Entertainment Corp. (formerly known as MSGE Spinco, Inc.) (the "<u>Company</u>"), effective as of [Date] (the "<u>Grant Date</u>") to receive [#RSUs] restricted stock units ("<u>Units</u>"). The Units are granted subject to the terms and conditions set forth below and in the Plan.

Capitalized terms used but not defined in this agreement (this "<u>Agreement</u>") have the meanings given to them in the Plan. The Units are subject to the terms and conditions set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. ***Awards****.* Each Unit shall represent an unfunded, unsecured promise by the Company to deliver to you one share of the Company's Class A Common Stock, par value $.01 per share ("<u>Share</u>") on the Delivery Date. In accordance with Section 10(b) of the Plan, in the discretion of the Committee, in lieu of all or any portion of the Shares otherwise deliverable in respect of your Units, the Company may deliver a cash amount equal to the number of such Shares multiplied by the Fair Market Value of a Share on the date when Shares would otherwise have been issued, as determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. ***Vesting****.* One-third of your Units will vest on each of September 15, [year], [year] and [year] (each, a "<u>Vesting Date</u>"); <u>provided</u> that you have remained in the continuous employ of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group (each as defined below) through the applicable Vesting Date; <u>provided further</u> that fractional Units eligible to vest on each of the first two Vesting Dates will be rounded down to the nearest whole Unit. Subject to Sections 3 and 4, you will forfeit any unvested Units if you do not remain continuously employed with the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group (each as defined below) from the Grant Date through any Vesting Date.

For purposes of this Agreement, the "<u>MSG Entertainment Group</u>" means the Company and any of its Subsidiaries. The "<u>MSG Sphere Group</u>" means MSG Sphere Corp. (formerly known as Madison Square Garden Entertainment Corp.) ("<u>MSG Sphere</u>") and any of its Subsidiaries. The "<u>MSG Sports Group</u>" means Madison Square Garden Sports Corp. ("<u>MSG Sports</u>") and any of its Subsidiaries.

For purposes of this Agreement, if you are employed by the MSG Entertainment Group, your "<u>Employer</u>" means the Company; if you are employed by the MSG Sphere Group, your "<u>Employer</u>" means MSG Sphere; if you are employed by the MSG Sports Group, your "<u>Employer</u>" means MSG Sports; if you are employed by both the MSG Entertainment Group and the MSG Sphere Group, your "<u>Employer</u>" means MSG Entertainment; if you are employed by both the MSG Entertainment Group and the MSG Sports Group, your "<u>Employer</u>" means MSG Entertainment; and if you are employed by each of the MSG Entertainment Group, the MSG Sphere Group and the MSG Sports Group, your "<u>Employer</u>" means MSG Entertainment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. ***Vesting in the Event of Death, Disability[, Retirement]*** <sup>1</sup> ***and Other Circumstances****.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) If your employment is terminated as a result of your death, all of the unvested Units will vest as of the termination date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) If your employment is terminated while you are Disabled, and Cause does not then exist, your unvested Units will immediately vest, and will become payable at such times as they would have otherwise vested pursuant to Section 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) [If your employment is terminated on or after the date that you achieve Retirement Eligibility, and Cause does not then exist, then so long as you enter into your Employer's then-current form of separation agreement (which shall include, without limitation, a covenant not to compete), you will vest in your Units and such Units will become payable at such times as they would have otherwise vested pursuant to Section 2 regardless of whether or not you remain employed by your Employer on such dates; <u>provided</u>, however, that upon a termination for Cause, you will forfeit all Units that had not yet been paid.]<sup>2</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) If your employment is terminated for other reasons, the Committee may, in its sole discretion determine to vest all or a portion of the unvested Units (but shall be under no obligation to consider doing so).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) " <u>Disabled</u> " means that you received short term disability income replacement payments for six
(6) months, and thereafter (A) have been determined to be disabled in accordance with your Employer's long term disability plan in which employees of your Employer are generally able to participate, if one is in effect at such time or
(B) to the extent no such long term disability plan exists, have been determined to have a medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not
less than twelve (12) months as determined by the department or vendor directed by your Employer to determine eligibility for unpaid medical leave.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) " <u>Cause</u> " means, as determined by the compensation committee of your Employer, in its sole
discretion, your (A) commission of an act of fraud, embezzlement, misappropriation, willful misconduct, gross negligence or breach of fiduciary duty against your Employer or (B) commission of any act or omission that results in a
conviction, plea of no contest, plea of *nolo contendere* or imposition of unadjudicated probation for any crime involving moral turpitude or any felony.

------

<sup>1</sup> To be included on a case-by-case basis as determined by the Compensation Committee in its sole discretion.

<sup>2</sup> See footnote 1.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) [" <u>Retirement Eligibility</u> " means that you are either (A) at least fifty-five
(55) years old with at least ten (10) years of continuous service with the MSG Entertainment Group, the MSG Sphere Group and/or the MSG Sports Group or (B) at least sixty (60) years old with at least five (5) years of
continuous service with the MSG Entertainment Group, the MSG Sphere Group and/or the MSG Sports Group.]<sup>3</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. ***Change of Control/Going-Private Transaction****.* As set forth in <u>Appendix</u> <u>1</u> attached hereto, your entitlement to the Units may be affected in the event of a MSG Entertainment Change of Control, a MSG Sphere Change of Control, a MSG Sports Change of Control or a going-private transaction with respect to the Company, MSG Sphere or MSG Sports (each as defined in <u>Appendix</u> <u>1</u> attached hereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. ***Transfer Restrictions****.* You may not transfer, assign, pledge or otherwise encumber the Units, other than to the extent provided in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. ***Right to Vote and Receive Dividends****.* You shall not be deemed to be the holder of, or have any of the rights of a stockholder with respect to, any Units unless and until the Company shall have issued and delivered Shares to you and your name shall have been entered as a stockholder of record on the books of the Company. Pursuant to Section 10(c) of the Plan, all ordinary (as determined by the Committee in its sole discretion) cash dividends that would have been paid upon any Shares underlying your Units had such Shares been issued will be retained by the Company for your account until your Units vest and such dividends will be paid to you (without interest) on the applicable Delivery Date to the extent that your Units vest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. ***Tax Representations and Tax Withholding***. You hereby acknowledge that you have reviewed with your own tax advisors the federal, state and local tax consequences of receiving the Units. You hereby represent to the MSG Entertainment Group, the MSG Sphere Group and the MSG Sports Group that you are relying solely on such advisors and not on any statements or representations of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, any of their respective Affiliates or any of their respective agents. If, in connection with the Units, your Employer is required to withhold any amounts by reason of any federal, state or local tax, such withholding shall be effected in accordance with Section 16 of the Plan. If your Units vest prior to payment in accordance with Section 3(B)[ or][,] (C)[ or (D)]<sup>4</sup>, then you agree to cooperate with your Employer to satisfy any tax withholding obligations, in such manner as determined by the Committee in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. ***Section 409A****.* It is the intent that payments under this Agreement shall comply with Section 409A of the Internal Revenue Code ("<u>Section</u> <u>409A</u>") to the extent applicable, and that the Agreement be administered accordingly. Notwithstanding anything to the contrary contained in this Agreement or any employment agreement you have entered into with

------

<sup>3</sup> See footnote 1.

<sup>4</sup> See footnote 1.

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your Employer, to the extent that any payment or benefit under this Agreement is determined by your Employer to constitute "non-qualified deferred compensation" subject to Section 409A and is payable to you by reason of termination of your employment, then (a) such payment or benefit shall be made or provided to you only upon a "separation from service" as defined for purposes of Section 409A under applicable regulations and (b) if you are a "specified employee" (within the meaning of Section 409A and as determined by your Employer), such payment or benefit shall not be made or provided before the date that is six (6) months after the date of your separation from service (or your earlier death). Each payment under this Agreement shall be treated as a separate payment under Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. ***Delivery****.* Subject to Sections 7, 10 and 13 and except as otherwise provided in this Agreement, the Shares will be delivered in respect of vested Units (if any) on the first to occur of the following events: (i) to you on or promptly after the applicable Vesting Date (but in no case more than fifteen (15) days after such date), (ii) in the event of your death to your estate after your death and during the calendar year in which your death occurs (or such later date as may be permitted under Section 409A) and (iii) in the event of any other termination of your employment (including pursuant to the provisions of <u>Appendix</u> <u>1</u>) to you on the ninetieth (90th) day following termination of your employment (the "<u>Delivery Date</u>"). Unless otherwise determined by the Committee, delivery of the Shares at the Delivery Date will be by book-entry credit to an account in your name that the Company has established at a custody agent (the "<u>custodian</u>"). The Company's transfer agent, EQ Shareowner Services, shall act as the custodian of the Shares; <u>however</u>, the Company may in its sole discretion appoint another custodian to replace EQ Shareowner Services. On the Delivery Date, if you have complied with your obligations under this Agreement and <u>provided</u> that your tax obligations with respect to the vested Units are appropriately satisfied, we will instruct the custodian to electronically transfer your Shares to a brokerage or other account on your behalf (or make such other arrangements for the delivery of the Shares to you as we reasonably determine).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. ***Right of Offset***. You hereby agree that the Company shall have the right to offset against its obligation to deliver shares of Class A Common Stock, cash or other property under this Agreement to the extent that it does not constitute "non-qualified deferred compensation" pursuant to Section 409A, any outstanding amounts of whatever nature that you then owe to the Company or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. ***The Committee***. For purposes of this Agreement, the term "<u>Committee</u>" means the Compensation Committee of the Board of Directors of the Company or any replacement committee established under, and as more fully defined in, the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. ***Committee Discretion***. The Committee has full discretion with respect to any actions to be taken or determinations to be made in connection with this Agreement, and its determinations shall be final, binding and conclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. ***Amendment****.* The Committee reserves the right at any time to amend the terms and conditions set forth in this Agreement, except that the Committee shall not make any amendment or revision in a manner unfavorable to you (other than if immaterial), without your consent. No consent shall be required for amendments made pursuant to Section 12 of the Plan, except that, for purposes of Section 19 of the Plan, Section 4 and <u>Appendix</u> <u>1</u> of this Agreement

------

are deemed to be "terms of an Award Agreement expressly refer[ring] to an Adjustment Event." Any amendment of this Agreement shall be in writing and signed by an authorized member of the Committee or a person or persons designated by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. ***Units Subject to the Plan****.* The Units covered by this Agreement are subject to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. ***Subsidiaries****.* For purposes of this Agreement, "<u>Subsidiaries</u>" means any entities that are controlled, directly or indirectly, by the Company, MSG Sphere or MSG Sports, as applicable, or in which the Company, MSG Sphere or MSG Sports, as applicable, owns, directly or indirectly, more than 50% of the equity interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. ***Entire Agreement****.* Except for any employment agreement between you and the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group in effect as of the date of the grant hereof (as such employment agreement may be modified, renewed or replaced), this Agreement and the Plan constitute the entire understanding and agreement of you and the Company with respect to the Units covered hereby and supersede all prior understandings and agreements. Except as provided in Sections 8 and 15, in the event of a conflict among the documents with respect to the terms and conditions of the Units covered hereby, the documents will be accorded the following order of authority: the terms and conditions of the Plan will have highest authority followed by the terms and conditions of your employment agreement, if any, followed by the terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. ***Successors and Assigns****.* The terms and conditions of this Agreement shall be binding upon, and shall inure to the benefit of, the Company and its successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. ***Governing Law****.* This Agreement shall be deemed to be made under, and in all respects be interpreted, construed and governed by and in accordance with, the laws of the State of New York without regard to conflict of law principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. ***Jurisdiction and Venue****.* You irrevocably submit to the jurisdiction of the courts of the State of New York and the Federal courts of the United States located in the Southern District of the State of New York in respect of the interpretation and enforcement of the provisions of this Agreement, and hereby waive, and agree not to assert, as a defense that you are not subject thereto or that the venue thereof may not be appropriate. You agree that the mailing of process or other papers in connection with any action or proceeding in any manner permitted by law shall be valid and sufficient service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. ***Waiver***. No waiver by the Company at any time of any breach by you of, or compliance with, any term or condition of this Agreement or the Plan to be performed by you shall be deemed a waiver of the same term or condition, or of any similar or any dissimilar term or condition, whether at the same time or at any prior or subsequent time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. ***Severability***. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any term or condition hereof shall not affect the validity or enforceability of the other terms and conditions set forth herein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. ***Exclusion from Compensation Calculation***. By acceptance of this Agreement, you shall be deemed to be in agreement that the Units covered hereby shall be considered special incentive compensation and will be exempt from inclusion as "wages" or "salary" in pension, retirement, life insurance and other employee benefits arrangements of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, except as determined otherwise by the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group. In addition, each of your beneficiaries shall be deemed to be in agreement that all such shares be exempt from inclusion in "wages" or "salary" for purposes of calculating benefits of any life insurance coverage sponsored by the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. ***No Right to Continued Employment***. Nothing contained in this Agreement or the Plan shall be construed to confer on you any right to continue in the employ of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, or derogate from the right of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, as applicable, to retire, request the resignation of, or discharge you, at any time, with or without cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. ***Headings****.* The headings in this Agreement are for purposes of convenience only and are not intended to define or limit the construction of the terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. ***Effective Date****.* Upon execution by you, this Agreement shall be effective from and as of the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. ***Signatures****.* Execution of this Agreement by the Company may be in the form of an electronic, manual or similar signature (including, without limitation, an electronic acknowledgement of acceptance), and such signature shall be treated as an original signature for all purposes.

[Remainder of the page intentionally left blank]

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| | |
|:---|:---|
| MADISON SQUARE GARDEN <br> ENTERTAINMENT CORP. | MADISON SQUARE GARDEN <br> ENTERTAINMENT CORP. |
| By: |  |
|  | Name: |
|  | Title: |

---

By your electronic acknowledgement of acceptance, you (i) acknowledge that a complete copy of the Plan and an executed original of this Agreement have been made available to you and (ii) agree to all of the terms and conditions set forth in the Plan and this Agreement**.**

## Exhibit 10.10

***Exhibit 10.10***

**FORM OF PERFORMANCE RESTRICTED STOCK UNITS AGREEMENT** 

Dear [Participant Name]:

Pursuant to the 2023 Employee Stock Plan (the "<u>Plan</u>"), you have been selected by the Compensation Committee of the Board of Directors (as more fully described in Section 12, the "<u>Committee</u>") of Madison Square Garden Entertainment Corp. (formerly known as MSGE Spinco, Inc.) (the "<u>Company</u>"), effective as of [Date] (the "<u>Grant Date</u>") to receive a performance restricted stock unit award (the "<u>Award</u>"). The Award is granted subject to the terms and conditions set forth below and in the Plan.

Capitalized terms used but not defined in this agreement (this "<u>Agreement</u>") have the meanings given to them in the Plan. The Award is subject to the terms and conditions set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. ***Awards***. In accordance with the terms of this Agreement, the target amount of your contingent Award is [#RSUs] restricted stock units (the "<u>Target Award</u>"), which number of units may be increased or decreased to the extent the performance criteria (the "<u>Objectives</u>") set forth in <u>Appendix 2</u> attached hereto have been attained in respect of the period from July 1, [year] through June 30, [year] (the "<u>Performance Period</u>"). Each unit shall represent an unfunded, unsecured promise by the Company to deliver to you one share of the Company's Class A Common Stock, par value $.01 per share ("<u>Share</u>") on the Delivery Date. The Award, calculated in accordance with <u>Appendix 2</u> attached hereto, will vest upon the later of (i) September 15, [year] and (ii) the date on which the Committee (as defined in Section 12 below) determines the Company's performance against the Objectives (the "<u>Vesting Date</u>"); <u>provided</u> that you have remained in the continuous employ of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group (each as defined below) from the Effective Date through the Vesting Date. In accordance with Section 10(b) of the Plan, in the discretion of the Committee, in lieu of all or any portion of the Shares otherwise deliverable in respect of your Award, the Company may deliver a cash amount equal to the number of such Shares multiplied by the Fair Market Value of a Share on the date when Shares would otherwise have been issued, as determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. ***Vesting****.* Subject to Sections 3 and 4, you will automatically forfeit all of your rights and interest in the Award if you do not remain continuously employed with the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group (each as defined below) from the Grant Date through the Vesting Date, regardless of whether the Objectives are attained.

For purposes of this Agreement, the "<u>MSG Entertainment Group</u>" means the Company and any of its Subsidiaries. The "<u>MSG Sphere Group</u>" means MSG Sphere Corp. (formerly known as Madison Square Garden Entertainment Corp.) ("<u>MSG Sphere</u>") and any of its Subsidiaries. The "<u>MSG Sports Group</u>" means Madison Square Garden Sports Corp. ("<u>MSG Sports</u>") and any of its Subsidiaries.

For purposes of this Agreement, if you are employed by the MSG Entertainment Group, your "<u>Employer</u>" means the Company; if you are employed by the MSG Sphere Group, your "<u>Employer</u>" means MSG Sphere; if you are employed by the MSG Sports Group, your

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"<u>Employer</u>" means MSG Sports; if you are employed by both the MSG Entertainment Group and the MSG Sphere Group, your "<u>Employer</u>" means MSG Entertainment; if you are employed by both the MSG Entertainment Group and the MSG Sports Group, your "<u>Employer</u>" means MSG Entertainment; and if you are employed by each of the MSG Entertainment Group, the MSG Sphere Group and the MSG Sports Group, your "<u>Employer</u>" means MSG Entertainment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. ***Vesting in the Event of Death [or][,] Disability[, or Retirement]***.<sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) If your employment is terminated as a result of your death on or prior to the Vesting Date, then the Target Award will vest as of the termination date. If, after June 30, [year] *but* prior to the Vesting Date, your employment is terminated as a result of your death, then your estate will receive the Award, if any, to which you would have been entitled on the Vesting Date had your employment not been so terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) If your employment is terminated while you are Disabled, and Cause does not then exist, the Award will remain subject to vesting on the Vesting Date in accordance with Section 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) [If your employment is terminated on or after the date that you achieve Retirement Eligibility, and Cause does not then exist, and you enter into your Employer's then-current form of separation agreement (which shall include, without limitation, a covenant not to compete), the Award will remain subject to vesting on the Vesting Date in accordance with Section 1.]<sup>2</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) " <u>Disabled</u> " means that you received short term disability income replacement payments for six
(6) months, and thereafter (A) have been determined to be disabled in accordance with your Employer's long term disability plan in which employees of your Employer are generally able to participate, if one is in effect at such time or
(B) to the extent no such long term disability plan exists, have been determined to have a medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not
less than twelve (12) months as determined by the department or vendor directed by your Employer to determine eligibility for unpaid medical leave.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) " <u>Cause</u> " means, as determined by the compensation committee of your Employer, in its sole
discretion, your (A) commission of an act of fraud, embezzlement, misappropriation, willful misconduct, gross negligence or breach of fiduciary duty against your

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<sup>1</sup> To be included on a case-by-case basis as determined by the Compensation Committee in its sole discretion.

<sup>2</sup> See footnote 1.

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Employer or (B) commission of any act or omission that results in a conviction, plea of no contest, plea of *nolo contendere* or imposition of unadjudicated probation for any crime involving moral turpitude or any felony.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) [" <u>Retirement Eligibility</u> " means that you are either (A) at least fifty-five
(55) years old with at least ten (10) years of continuous service with the MSG Entertainment Group, the MSG Sphere Group and/or the MSG Sports Group or (B) at least sixty (60) years old with at least five (5) years of
continuous service with the MSG Entertainment Group, the MSG Sphere Group and/or the MSG Sports Group.]<sup>3</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. ***Change of Control/Going-Private Transaction****.* As set forth in <u>Appendix</u> <u>1</u> attached hereto, your entitlement to the Award may be affected in the event of a MSG Entertainment Change of Control, a MSG Sphere Change of Control, a MSG Sports Change of Control or a going-private transaction with respect to the Company, MSG Sphere or MSG Sports (each as defined in <u>Appendix 1</u> attached hereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. ***Transfer Restrictions****.* You may not transfer, assign, pledge or otherwise encumber the units, other than to the extent provided in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. ***Unfunded Obligation***. The Plan will at all times be unfunded and, except as set forth in <u>Appendix 1</u> attached hereto, no provision will at any time be required to be made with respect to segregating any assets of the Company or any of its Subsidiaries for payment of any benefits under the Plan, including, without limitation, those covered by this Agreement. Your right or that of your estate to receive delivery or payment under this Agreement shall be an unsecured claim against the general assets of the Company, including any rabbi trust established pursuant to <u>Appendix 1</u>. Neither you nor your estate shall have any rights in or against any specific assets of the Company other than the assets held by the rabbi trust established pursuant to <u>Appendix</u> <u>1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. ***Right to Vote and Receive Dividends****.* You shall not be deemed to be the holder of, or have any of the rights of a stockholder with respect to, any units unless and until the Company shall have issued and delivered Shares to you and your name shall have been entered as a stockholder of record on the books of the Company. Pursuant to Section 10(c) of the Plan, all ordinary (as determined by the Committee in its sole discretion) cash dividends that would have been paid upon any Shares underlying your units had such Shares been issued will be retained by the Company for your account until your units vest and such dividends will be paid to you (without interest) on the Delivery Date to the extent that your units vest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. ***Tax Representations and Tax Withholding***. You hereby acknowledge that you have reviewed with your own tax advisors the federal, state and local tax consequences of receiving the units. You hereby represent to the MSG Entertainment Group, the MSG Sphere Group and the MSG Sports Group that you are relying solely on such advisors and not on any

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<sup>3</sup> See footnote 1.

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statements or representations of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, any of their respective Affiliates or any of their respective agents. If, in connection with the units, your Employer is required to withhold any amounts by reason of any federal, state or local tax, such withholding shall be effected in accordance with Section 16 of the Plan. If your Units vest prior to payment in accordance with Section 3(B)[ or (C)]<sup>4</sup>, then you agree to cooperate with your Employer to satisfy any tax withholding obligations, in such manner as determined by the Committee in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. ***Section 409A****.* It is the intent that payments under this Agreement shall comply with Section 409A of the Internal Revenue Code ("<u>Section</u> <u>409A</u>") to the extent applicable, and that the Agreement be administered accordingly. Notwithstanding anything to the contrary contained in this Agreement or any employment agreement you have entered into with your Employer, to the extent that any payment or benefit under this Agreement is determined by your Employer to constitute "non-qualified deferred compensation" subject to Section 409A and is payable to you by reason of termination of your employment, then (a) such payment or benefit shall be made or provided to you only upon a "separation from service" as defined for purposes of Section 409A under applicable regulations and (b) if you are a "specified employee" (within the meaning of Section 409A and as determined by your Employer), such payment or benefit shall not be made or provided before the date that is six (6) months after the date of your separation from service (or your earlier death). Each payment under this Agreement shall be treated as a separate payment under Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. ***Delivery****.* Subject to Sections 8, 11 and 14 and <u>Appendix 1</u> and except as otherwise provided in this Agreement, the Shares will be delivered in respect of vested units (if any) on the first to occur of the following events: (i) to you on or promptly after the Vesting Date (but in no case more than fifteen (15) days after such date) and (ii) in the event of your death to your estate after your death and during the calendar year in which your death occurs (or such later date as may be permitted under Section 409A) (the "<u>Delivery Date</u>"). Unless otherwise determined by the Committee, delivery of the Shares at the Delivery Date will be by book-entry credit to an account in your name that the Company has established at a custody agent (the "<u>custodian</u>"). The Company's transfer agent, EQ Shareowner Services, shall act as the custodian of the Shares; <u>however</u>, the Company may in its sole discretion appoint another custodian to replace EQ Shareowner Services. On the Delivery Date, if you have complied with your obligations under this Agreement and <u>provided</u> that your tax obligations with respect to the vested units are appropriately satisfied, we will instruct the custodian to electronically transfer your Shares to a brokerage or other account on your behalf (or make such other arrangements for the delivery of the Shares to you as we reasonably determine).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. ***Right of Offset***. You hereby agree that the Company shall have the right to offset against its obligation to deliver shares of Class A Common Stock, cash or other property under this Agreement to the extent that it does not constitute "non-qualified deferred compensation" pursuant to Section 409A, any outstanding amounts of whatever nature that you then owe to the Company or any of its Subsidiaries.

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<sup>4</sup> See footnote 1.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. ***The Committee***. For purposes of this Agreement, the term "<u>Committee</u>" means the Compensation Committee of the Board of Directors of the Company or any replacement committee established under, and as more fully defined in, the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. ***Committee Discretion***. The Committee has full discretion with respect to any actions to be taken or determinations to be made in connection with this Agreement, and its determinations shall be final, binding and conclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. ***Amendment****.* The Committee reserves the right at any time to amend the terms and conditions set forth in this Agreement, except that the Committee shall not make any amendment or revision in a manner unfavorable to you (other than if immaterial), without your consent. No consent shall be required for amendments made pursuant to Section 12 of the Plan, except that, for purposes of Section 19 of the Plan, Section 4 and <u>Appendix 1</u> of this Agreement are deemed to be "terms of an Award Agreement expressly refer[ring] to an Adjustment Event." Any amendment of this Agreement shall be in writing and signed by an authorized member of the Committee or a person or persons designated by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. ***Units Subject to the Plan****.* The units covered by this Agreement are subject to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. ***Subsidiaries****.* For purposes of this Agreement, *"*<u>Subsidiaries</u>*"* means any entities that are controlled, directly or indirectly, by the Company, MSG Sphere or MSG Sports, as applicable, or in which the Company, MSG Sphere or MSG Sports, as applicable, owns, directly or indirectly, more than 50% of the equity interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. ***Entire Agreement****.* Except for any employment agreement between you and the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group in effect as of the date of the grant hereof (as such employment agreement may be modified, renewed or replaced), this Agreement and the Plan constitute the entire understanding and agreement of you and the Company with respect to the units covered hereby and supersede all prior understandings and agreements. Except as provided in Sections 9 and 16, in the event of a conflict among the documents with respect to the terms and conditions of the units covered hereby, the documents will be accorded the following order of authority: the terms and conditions of the Plan will have highest authority followed by the terms and conditions of your employment agreement, if any, followed by the terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. ***Successors and Assigns****.* The terms and conditions of this Agreement shall be binding upon, and shall inure to the benefit of, the Company and its successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. ***Governing Law****.* This Agreement shall be deemed to be made under, and in all respects be interpreted, construed and governed by and in accordance with, the laws of the State of New York without regard to conflict of law principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. ***Jurisdiction and Venue****.* You irrevocably submit to the jurisdiction of the courts of the State of New York and the Federal courts of the United States located in the Southern District of the State of New York in respect of the interpretation and enforcement of the provisions of this Agreement, and hereby waive, and agree not to assert, as a defense that you are

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not subject thereto or that the venue thereof may not be appropriate. You agree that the mailing of process or other papers in connection with any action or proceeding in any manner permitted by law shall be valid and sufficient service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. ***Waiver***. No waiver by the Company at any time of any breach by you of, or compliance with, any term or condition of this Agreement or the Plan to be performed by you shall be deemed a waiver of the same term or condition, or of any similar or any dissimilar term or condition, whether at the same time or at any prior or subsequent time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. ***Severability***. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any term or condition hereof shall not affect the validity or enforceability of the other terms and conditions set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. ***Exclusion from Compensation Calculation***. By acceptance of this Agreement, you shall be deemed to be in agreement that the units covered hereby shall be considered special incentive compensation and will be exempt from inclusion as "wages" or "salary" in pension, retirement, life insurance and other employee benefits arrangements of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, except as determined otherwise by the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group. In addition, each of your beneficiaries shall be deemed to be in agreement that all such shares be exempt from inclusion in "wages" or "salary" for purposes of calculating benefits of any life insurance coverage sponsored by the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. ***No Right to Continued Employment***. Nothing contained in this Agreement or the Plan shall be construed to confer on you any right to continue in the employ of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, or derogate from the right of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, as applicable, to retire, request the resignation of, or discharge you, at any time, with or without cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. ***Headings****.* The headings in this Agreement are for purposes of convenience only and are not intended to define or limit the construction of the terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. ***Effective Date****.* Upon execution by you, this Agreement shall be effective from and as of the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. ***Signatures****.* Execution of this Agreement by the Company may be in the form of an electronic, manual or similar signature (including, without limitation, an electronic acknowledgement of acceptance), and such signature shall be treated as an original signature for all purposes.

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| | |
|:---|:---|
| MADISON SQUARE GARDEN ENTERTAINMENT CORP. | MADISON SQUARE GARDEN ENTERTAINMENT CORP. |
| By: |  |
|  | Name: |
|  | Title: |

---

By your electronic acknowledgement of acceptance, you (i) acknowledge that a complete copy of the Plan and an executed original of this Agreement have been made available to you and (ii) agree to all of the terms and conditions set forth in the Plan and this Agreement.

## Exhibit 10.11

***Exhibit 10.11***

**FORM OF OPTION AGREEMENT** 

Dear [Participant Name]:

Pursuant to the 2023 Employee Stock Plan (the "<u>Plan</u>") of Madison Square Garden Entertainment Corp. (formerly known as MSGE Spinco, Inc.) (the "<u>Company</u>"), on [Date] (the "<u>Effective Date</u>") you have been awarded nonqualified options (the "<u>Options</u>") to purchase [#shares] shares of the Company's Class A Common Stock, par value $.01 per share ("<u>Class</u> <u>A Common Stock</u>") at a price of $[Dollars] per share. The Award is granted subject to the terms and conditions set forth below and in the Plan.

Capitalized terms used but not defined in this agreement (this "<u>Agreement</u>") have the meanings given to them in the Plan. The Options are granted subject to the terms and conditions set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. ***Vesting***. Your Options will vest and become exercisable in accordance with <u>Appendix 1</u>; <u>provided</u> that you have remained in the continuous employ of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group (each as defined below) from the Effective Date through the applicable vesting date(s).

For purposes of this Agreement, the "<u>MSG Entertainment Group</u>" means the Company and any of its Subsidiaries. The "<u>MSG Sphere Group</u>" means MSG Sphere Corp. (formerly known as Madison Square Garden Entertainment Corp.) ("<u>MSG Sphere</u>") and any of its Subsidiaries. The "<u>MSG Sports Group</u>" means Madison Square Garden Sports Corp. ("<u>MSG Sports</u>") and any of its Subsidiaries.

For purposes of this Agreement, if you are employed by the MSG Entertainment Group, your "<u>Employer</u>" means the Company; if you are employed by the MSG Sphere Group, your "<u>Employer</u>" means MSG Sphere; if you are employed by the MSG Sports Group, your "<u>Employer</u>" means MSG Sports; if you are employed by both the MSG Entertainment Group and the MSG Sphere Group, your "<u>Employer</u>" means MSG Entertainment; if you are employed by both the MSG Entertainment Group and the MSG Sports Group, your "<u>Employer</u>" means MSG Entertainment; and if you are employed by each of the MSG Entertainment Group, the MSG Sphere Group and the MSG Sports Group, your "<u>Employer</u>" means MSG Entertainment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. ***Exercise***. You may exercise the Options that become vested and exercisable by following such procedures as established by the Company, specifying the number of shares of Class A Common Stock as to which the Options are being exercised (the "<u>Exercise Notice</u>"). Unless the Compensation Committee of the Board of Directors of the Company (as more fully described in Section 15, the "<u>Committee</u>") chooses to settle such exercise in cash, shares of Class A Common Stock, or a combination thereof pursuant to Section 3, you will be required to deliver to the Company, or such person as the Company may designate, within such time period as the Company may require, payment in full of the exercise price and any taxes due on account of such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. ***Option Spread***. Upon receipt of the Exercise Notice, the Committee may elect, in lieu of issuing shares of Class A Common Stock, to settle the exercise covered by such notice by paying you an amount equal to the product obtained by multiplying (i) the excess of

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the Fair Market Value of one (1) share of Class A Common Stock on the date of exercise over the per share exercise price of the Options (the "<u>Option Spread</u>") by (ii) the number of shares of Class A Common Stock specified in the Exercise Notice. The amount payable to you in these circumstances may be paid by the Company either in cash or in shares of Class A Common Stock having a Fair Market Value equal to the Option Spread, or a combination thereof, as the Company shall determine. Class A Common Stock used to pay the Option Spread pursuant to this Section 3 will be valued at the Fair Market Value as of the day the Exercise Notice is received by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. ***Expiration***. The Options will terminate automatically and without further notice on [Date], or at any of the following dates, if earlier:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) with respect to those Options which are then unexercisable, the date upon which you are no longer employed by the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, unless as a result of your death, in which case, subject to execution and non-revocation of a release of claims if required pursuant to the terms of an applicable employment agreement between you and your Employer, all of your Options granted under this Agreement shall become immediately exercisable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) with respect to those Options which are then exercisable, (1) in the event of a termination of your employment by your Employer without Cause (other than while you are Disabled) or your resignation of employment from your Employer[ (other than due to Retirement, in which case the Options will remain exercisable until [Date])]<sup>1</sup>, ninety (90) days following the date upon which you are no longer employed or (2) in the event of your death or a termination of your employment with your Employer while you are Disabled, the first anniversary of your death or the date upon which you are no longer employed by your Employer, as applicable; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) with respect to all your then outstanding Options, whether exercisable or unexercisable, the date upon which your employment with your Employer is terminated for Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. ***Definitions***. For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) "<u>Disabled</u>" means that you received short term disability income replacement payments for six (6) months, and thereafter (A) have been determined to be disabled in accordance with your Employer's long term disability plan in which employees of your Employer are generally able to participate, if one is in effect at such time or (B) to the extent no such long term disability plan exists, have been determined to have a medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months as determined by the department or vendor directed by your Employer to determine eligibility for unpaid medical leave.

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<sup>1</sup> To be included on a case-by-case basis as determined by the Compensation Committee in its sole discretion.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) "<u>Cause</u>" means, as determined by the compensation committee of your Employer, in its sole discretion, your (i) commission of an act of fraud, embezzlement, misappropriation, willful misconduct, gross negligence or breach of fiduciary duty against your Employer or (ii) commission of any act or omission that results in a conviction, plea of no contest, plea of *nolo contendere* or imposition of unadjudicated probation for any crime involving moral turpitude or any felony.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) ["<u>Retirement</u>" means the voluntary termination by you of your employment with your Employer at such time as (i) you have attained at least the age of fifty-five (55) and (ii) you have been employed by the MSG Entertainment Group, the MSG Sphere Group and/or the MSG Sports Group for at least five (5) years in the aggregate; <u>provided</u> that your Employer may nevertheless decide, in its sole discretion, not to treat your termination of employment as a "Retirement" hereunder. Treatment of your termination of employment as a "Retirement" hereunder shall be further subject to your execution (and the effectiveness) of a "retirement agreement" to your Employer's satisfaction, including, without limitation (to the extent desired by your Employer), non-compete, non-disparagement, non-solicitation, confidentiality and further cooperation obligations/restrictions on you as well as a general release by you of the MSG Entertainment Group, the MSG Sphere Group and the MSG Sports Group. The above definition of "Retirement" is solely for purposes of this Agreement and shall not, in any way, create or imply any obligations of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group (under any other agreement or otherwise) with respect to any such termination of your employment.]<sup>2</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. ***Change of Control/Going-Private Transaction***. As set forth in <u>Appendix</u> <u>2</u> attached hereto, the Options may be affected in the event of a MSG Entertainment Change of Control, a MSG Sphere Change of Control, a MSG Sports Change of Control or a going-private transaction with respect to the Company, MSG Sphere or MSG Sports (each as defined in <u>Appendix</u> <u>2</u> attached hereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. ***Tax Representations and Tax Withholding***. You hereby acknowledge that you have reviewed with your own tax advisors the federal, state and local tax consequences of exercising the Options and receiving shares of Class A Common Stock and cash. You hereby represent to the MSG Entertainment Group, the MSG Sphere Group and the MSG Sports Group that you are relying solely on such advisors and not on any statements or representations of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, any of their respective Affiliates or any of their respective agents. If, in connection with the exercise of the Options, your Employer is required to withhold any amounts by reason of any federal, state or local tax, such withholding shall be effected in accordance with Section 16 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. ***Section 409A****.* It is the intent that payments under this Agreement are exempt from Section 409A of the Internal Revenue Code of 1986, as amended (the "<u>Code</u>"), and that the Agreement be administered accordingly. Notwithstanding anything to the contrary contained in this Agreement, if and to the extent that any payment or benefit under this

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<sup>2</sup> See footnote 1.

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Agreement is determined by your Employer to constitute "non-qualified deferred compensation" subject to Section 409A of the Code ("<u>Section</u> <u>409A</u>") and is payable to you by reason of termination of your employment, then (a) such payment or benefit shall be made or provided to you only upon a "separation from service" as defined for purposes of Section 409A under applicable regulations and (b) if you are a "specified employee" (within the meaning of Section 409A and as determined by your Employer), such payment or benefit shall not be made or provided before the date that is six (6) months after the date of your separation from service (or your earlier death).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. ***Transfer Restrictions***. You may not transfer, assign, pledge or otherwise encumber the Options, other than to the extent provided in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. ***Non-Qualification as ISO***. The Options are not intended to qualify as "incentive stock options" within the meaning of Section 422A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. ***Securities Law Acknowledgments***. You hereby acknowledge and confirm to the MSG Entertainment Group, the MSG Sphere Group and the MSG Sports Group that (i) you are aware that the shares of Class A Common Stock are publicly-traded securities and (ii) the shares of Class A Common Stock issuable upon exercise of the Options may not be sold or otherwise transferred unless such sale or transfer is registered under the Securities Act of 1933, as amended, and the securities laws of any applicable state or other jurisdiction, or is exempt from such registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. ***Governing Law***. This Agreement shall be deemed to be made under, and in all respects shall be interpreted, construed and governed by and in accordance with, the laws of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. ***Jurisdiction and Venue***. You hereby irrevocably submit to the jurisdiction of the courts of the State of New York and the Federal courts of the United States of America located in the Southern District and Eastern District of the State of New York in respect of the interpretation and enforcement of the provisions of this Agreement, and hereby waive, and agree not to assert, as a defense that you are not subject thereto or that the venue thereof may not be appropriate. You hereby agree that mailing of process or other papers in connection with any such action or proceeding in any manner as may be permitted by law shall be valid and sufficient service thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. ***Right of Offset***. You hereby agree that the Company shall have the right to offset against its obligation to deliver shares of Class A Common Stock, cash or other property under this Agreement to the extent that it does not constitute "non-qualified deferred compensation" pursuant to Section 409A, any outstanding amounts of whatever nature that you then owe to the Company or any of its Subsidaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. ***The Committee***. For purposes of this Agreement, the term "<u>Committee</u>" means the Compensation Committee of the Board of Directors of the Company or any replacement committee established under, and as more fully defined in, the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. ***Committee Discretion***. The Committee has full discretion with respect to any actions to be taken or determinations to be made in connection with this Agreement, and its determinations shall be final, binding and conclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. ***Amendment***. The Committee reserves the right at any time to amend the terms and conditions set forth in this Agreement, except that the Committee shall not make any amendment or revision in a manner unfavorable to you (other than if immaterial), without your consent. No consent shall be required for amendments made pursuant to Section 12 of the Plan, except that, for purposes of Section 19 of the Plan, Section 6 and <u>Appendix 2</u> of this Agreement are deemed to be "terms of an Award Agreement expressly refer[ring] to an Adjustment Event." Any amendment of this Agreement shall be in writing and signed by an authorized member of the Committee or a person or persons designated by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. ***Options Subject to the Plan***. The Options granted by this Agreement are subject to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. ***Entire Agreement***. Except for any employment agreement between you and the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group in effect as of the date of the grant hereof (as such employment agreement may be modified, renewed or replaced; <u>provided</u> that such modification, renewal or replacement shall not extend the time any Options may be exercised beyond the time provided herein or in such original employment agreement), this Agreement and the Plan constitute the entire understanding and agreement of you and the Company with respect to the Options covered hereby and supersede all prior understandings and agreements. Except as provided in Sections 8 and 25, in the event of a conflict among the documents with respect to the terms and conditions of the Options covered hereby, the documents will be accorded the following order of authority: the terms and conditions of the Plan will have highest authority followed by the terms and conditions of your employment agreement, if any, followed by the terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. ***Successors and Assigns***. The terms and conditions of this Agreement shall be binding upon, and shall inure to the benefit of, the Company and its successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. ***Waiver***. No waiver by the Company at any time of any breach by you of, or compliance with, any term or condition of this Agreement or the Plan to be performed by you shall be deemed a waiver of the same term or condition, or of any similar or any dissimilar term or condition, whether at the same time or at any prior or subsequent time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. ***Severability***. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any term or condition hereof shall not affect the validity or enforceability of the other terms and conditions set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. ***Exclusion from Compensation Calculation***. By acceptance of this Agreement, you shall be deemed to be in agreement that all shares of Class A Common Stock and cash received upon each exercise of the Options shall be considered special incentive compensation and will be exempt from inclusion as "wages" or "salary" in pension, retirement, life insurance and other employee benefits arrangements of the MSG Entertainment Group, the

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MSG Sphere Group or the MSG Sports Group, except as determined otherwise by the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group. In addition, each of your beneficiaries shall be deemed to be in agreement that all such shares of Class A Common Stock and cash will be exempt from inclusion in "wages" or "salary" for purposes of calculating benefits of any life insurance coverage sponsored by the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. ***No Right to Continued Employment***. Nothing contained in this Agreement or the Plan shall be construed to confer on you any right to continue in the employ of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, or derogate from the right of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, as applicable, to retire, request the resignation of, or discharge you, at any time, with or without cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. ***Subsidiaries****.* For purposes of this Agreement, *"*<u>Subsidiaries</u>*"* means any entities that are controlled, directly or indirectly, by the Company, MSG Sphere or MSG Sports, as applicable, or in which the Company, MSG Sphere or MSG Sports, as applicable, owns, directly or indirectly, more than 50% of the equity interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. ***Headings***. The headings in this Agreement are for purposes of convenience only and are not intended to define or limit the construction of the terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. ***Effective Date***. Upon execution by you, this Agreement shall be effective from and as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28. ***Signatures***. Execution of this Agreement by the Company may be in the form of an electronic, manual or similar signature (including, without limitation, an electronic acknowledgement of acceptance), and such signature shall be treated as an original signature for all purposes.

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---

| | |
|:---|:---|
| MADISON SQUARE GARDEN ENTERTAINMENT CORP. | MADISON SQUARE GARDEN ENTERTAINMENT CORP. |
| By |  |
|  | Name: |
|  | Title: |

---

By your electronic acknowledgement of acceptance, you (i) acknowledge that a complete copy of the Plan and an executed original of this Agreement have been made available to you and (ii) agree to all of the terms and conditions set forth in the Plan and this Agreement.

## Exhibit 10.12

***Exhibit 10.12***

**FORM OF PERFORMANCE OPTION AGREEMENT** 

Dear [Participant Name]:

Pursuant to the 2023 Employee Stock Plan (the "<u>Plan</u>") of Madison Square Garden Entertainment Corp. (formerly known as MSGE Spinco, Inc.) (the "<u>Company</u>"), on [Date] (the "<u>Effective Date</u>") you have been awarded nonqualified options (the "<u>Options</u>") to purchase [#shares] shares of the Company's Class A Common Stock, par value $.01 per share ("<u>Class</u> <u>A Common Stock</u>") at a price of $[Dollars] per share. The Award is granted subject to the terms and conditions set forth below and in the Plan.

Capitalized terms used but not defined in this agreement (this "<u>Agreement</u>") have the meanings given to them in the Plan. The Options are granted subject to the terms and conditions set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. ***Vesting***. In accordance with the terms of this Agreement, a target of [#Options] Options (the "<u>Target Award</u>"), and a maximum of [#Options] Options, will vest and become exercisable, which number of Options will be determined based on the extent to which the performance criteria (the "<u>Objectives</u>") set forth in <u>Appendix 1</u> to this Agreement have been attained in respect of the period from July 1, [year] to June 30, [year] (the "<u>Performance Period</u>"). The Options, calculated in accordance with <u>Appendix 1</u>, will vest [on [Date], subject to the determination by the Compensation Committee of the Board of Directors of the Company (as more fully described in Section 15, the "<u>Committee</u>") of the Company's performance against the Objectives][upon the date on which the Compensation Committee of the Board of Directors of the Company (as more fully described in Section 15, the "<u>Committee</u>") determines the Company's performance against the Objectives] (the "<u>Vesting Date</u>"), and any Options that do not so vest shall be immediately and automatically forfeited as of the Vesting Date; <u>provided</u> that you have remained in the continuous employ of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group (each as defined below) from the Effective Date through the Vesting Date.

For purposes of this Agreement, the "<u>MSG Entertainment Group</u>" means the Company and any of its Subsidiaries. The "<u>MSG Sphere Group</u>" means MSG Sphere Corp. (formerly known as Madison Square Garden Entertainment Corp.) ("<u>MSG Sphere</u>") and any of its Subsidiaries. The "<u>MSG Sports Group</u>" means Madison Square Garden Sports Corp. ("<u>MSG Sports</u>") and any of its Subsidiaries.

For purposes of this Agreement, if you are employed by the MSG Entertainment Group, your "<u>Employer</u>" means the Company; if you are employed by the MSG Sphere Group, your "<u>Employer</u>" means MSG Sphere; if you are employed by the MSG Sports Group, your "<u>Employer</u>" means MSG Sports; if you are employed by both the MSG Entertainment Group and the MSG Sphere Group, your "<u>Employer</u>" means MSG Entertainment; if you are employed by both the MSG Entertainment Group and the MSG Sports Group, your "<u>Employer</u>" means MSG Entertainment; and if you are employed by each of the MSG Entertainment Group, the MSG Sphere Group and the MSG Sports Group, your "<u>Employer</u>" means MSG Entertainment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. ***Exercise***. You may exercise the Options that become vested and exercisable by following such procedures as established by the Company, specifying the number of shares of Class A Common Stock as to which the Options are being exercised (the "<u>Exercise Notice</u>"). Unless the Committee chooses to settle such exercise in cash, shares of Class A Common Stock, or a combination thereof pursuant to Section 3, you will be required to deliver to the Company, or such person as the Company may designate, within such time period as the Company may require, payment in full of the exercise price and any taxes due on account of such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. ***Option Spread***. Upon receipt of the Exercise Notice, the Committee may elect, in lieu of issuing shares of Class A Common Stock, to settle the exercise covered by such notice by paying you an amount equal to the product obtained by multiplying (i) the excess of the Fair Market Value of one (1) share of Class A Common Stock on the date of exercise over the per share exercise price of the Options (the "<u>Option Spread</u>") by (ii) the number of shares of Class A Common Stock specified in the Exercise Notice. The amount payable to you in these circumstances may be paid by the Company either in cash or in shares of Class A Common Stock having a Fair Market Value equal to the Option Spread, or a combination thereof, as the Company shall determine. Class A Common Stock used to pay the Option Spread pursuant to this Section 3 will be valued at the Fair Market Value as of the day the Exercise Notice is received by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. ***Expiration***. The Options will terminate automatically and without further notice on [Date], or at any of the following dates, if earlier:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) with respect to those Options which are then unexercisable, the date upon which you are no longer employed by the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, unless as a result of your death, in which case a number of your Options granted under this Agreement shall become immediately exercisable as follows:[ (i)] if your employment terminates due to your death prior to [Date], then a portion of the Target Award, determined based on the number of months of your employment completed prior to such termination during the period commencing on [Date] and ending on [Date], will vest as of the termination date[ or (ii) if your employment terminates due to your death after [Date] but prior to the Vesting Date, then the number of Options that would have vested on the Vesting Date had your employment not been so terminated shall vest as of the termination date];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) with respect to those Options which are then exercisable, (1) in the event of a termination of your employment by your Employer without Cause (other than while you are Disabled) or your resignation of employment from your Employer[ (other than due to Retirement, in which case the Options will remain exercisable until [Date])]<sup>1</sup>, ninety (90) days following the date upon which you are no longer employed or (2) in the event of your death or a termination of your employment with your Employer while you are Disabled, the first anniversary of your death or the date upon which you are no longer employed by your Employer, as applicable; or

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<sup>1</sup> To be included on a case-by-case basis as determined by the Compensation Committee in its sole discretion.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) with respect to all your then outstanding Options, whether exercisable or unexercisable, the date upon which your employment with your Employer is terminated for Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. ***Definitions***. For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) "<u>Disabled</u>" means that you received short term disability income replacement payments for six (6) months, and thereafter (A) have been determined to be disabled in accordance with your Employer's long term disability plan in which employees of your Employer are generally able to participate, if one is in effect at such time or (B) to the extent no such long term disability plan exists, have been determined to have a medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months as determined by the department or vendor directed by your Employer to determine eligibility for unpaid medical leave.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) "<u>Cause</u>" means, as determined by the compensation committee of your Employer, in its sole discretion, your (i) commission of an act of fraud, embezzlement, misappropriation, willful misconduct, gross negligence or breach of fiduciary duty against your Employer or (ii) commission of any act or omission that results in a conviction, plea of no contest, plea of *nolo contendere* or imposition of unadjudicated probation for any crime involving moral turpitude or any felony.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) ["<u>Retirement</u>" means the voluntary termination by you of your employment with your Employer at such time as (i) you have attained at least the age of fifty-five (55) and (ii) you have been employed by the MSG Entertainment Group, the MSG Sphere Group and/or the MSG Sports Group for at least five (5) years in the aggregate; <u>provided</u> that your Employer may nevertheless decide, in its sole discretion, not to treat your termination of employment as a "Retirement" hereunder. Treatment of your termination of employment as a "Retirement" hereunder shall be further subject to your execution (and the effectiveness) of a "retirement agreement" to your Employer's satisfaction, including, without limitation (to the extent desired by your Employer), non-compete, non-disparagement, non-solicitation, confidentiality and further cooperation obligations/restrictions on you as well as a general release by you of the MSG Entertainment Group, the MSG Sphere Group and the MSG Sports Group. The above definition of "Retirement" is solely for purposes of this Agreement and shall not, in any way, create or imply any obligations of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group (under any other agreement or otherwise) with respect to any such termination of your employment.]<sup>2</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. ***Change of Control/Going-Private Transaction***. As set forth in <u>Appendix</u> <u>2</u> attached hereto, the Options may be affected in the event of a MSG Entertainment

------

<sup>2</sup> See footnote 1.

------

Change of Control, a MSG Sphere Change of Control, a MSG Sports Change of Control or a going-private transaction with respect to the Company, MSG Sphere or MSG Sports (each as defined in <u>Appendix</u> <u>2</u> attached hereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. ***Tax Representations and Tax Withholding***. You hereby acknowledge that you have reviewed with your own tax advisors the federal, state and local tax consequences of exercising the Options and receiving shares of Class A Common Stock and cash. You hereby represent to the MSG Entertainment Group, the MSG Sphere Group and the MSG Sports Group that you are relying solely on such advisors and not on any statements or representations of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, any of their respective Affiliates or any of their respective agents. If, in connection with the exercise of the Options, your Employer is required to withhold any amounts by reason of any federal, state or local tax, such withholding shall be effected in accordance with Section 16 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. ***Section 409A****.* It is the intent that payments under this Agreement are exempt from Section 409A of the Internal Revenue Code of 1986, as amended (the "<u>Code</u>"), and that the Agreement be administered accordingly. Notwithstanding anything to the contrary contained in this Agreement, if and to the extent that any payment or benefit under this Agreement is determined by your Employer to constitute "non-qualified deferred compensation" subject to Section 409A of the Code ("<u>Section</u> <u>409A</u>") and is payable to you by reason of termination of your employment, then (a) such payment or benefit shall be made or provided to you only upon a "separation from service" as defined for purposes of Section 409A under applicable regulations and (b) if you are a "specified employee" (within the meaning of Section 409A and as determined by your Employer), such payment or benefit shall not be made or provided before the date that is six (6) months after the date of your separation from service (or your earlier death).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. ***Transfer Restrictions***. You may not transfer, assign, pledge or otherwise encumber the Options, other than to the extent provided in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. ***Non-Qualification as ISO***. The Options are not intended to qualify as "incentive stock options" within the meaning of Section 422A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. ***Securities Law Acknowledgments***. You hereby acknowledge and confirm to the MSG Entertainment Group, the MSG Sphere Group and the MSG Sports Group that (i) you are aware that the shares of Class A Common Stock are publicly-traded securities and (ii) the shares of Class A Common Stock issuable upon exercise of the Options may not be sold or otherwise transferred unless such sale or transfer is registered under the Securities Act of 1933, as amended, and the securities laws of any applicable state or other jurisdiction, or is exempt from such registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. ***Governing Law***. This Agreement shall be deemed to be made under, and in all respects shall be interpreted, construed and governed by and in accordance with, the laws of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. ***Jurisdiction and Venue***. You hereby irrevocably submit to the jurisdiction of the courts of the State of New York and the Federal courts of the United States of

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America located in the Southern District and Eastern District of the State of New York in respect of the interpretation and enforcement of the provisions of this Agreement, and hereby waive, and agree not to assert, as a defense that you are not subject thereto or that the venue thereof may not be appropriate. You hereby agree that mailing of process or other papers in connection with any such action or proceeding in any manner as may be permitted by law shall be valid and sufficient service thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. ***Right of Offset***. You hereby agree that the Company shall have the right to offset against its obligation to deliver shares of Class A Common Stock, cash or other property under this Agreement to the extent that it does not constitute "non-qualified deferred compensation" pursuant to Section 409A, any outstanding amounts of whatever nature that you then owe to the Company or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. ***The Committee***. For purposes of this Agreement, the term "<u>Committee</u>" means the Compensation Committee of the Board of Directors of the Company or any replacement committee established under, and as more fully defined in, the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. ***Committee Discretion***. The Committee has full discretion with respect to any actions to be taken or determinations to be made in connection with this Agreement, and its determinations shall be final, binding and conclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. ***Amendment***. The Committee reserves the right at any time to amend the terms and conditions set forth in this Agreement, except that the Committee shall not make any amendment or revision in a manner unfavorable to you (other than if immaterial), without your consent. No consent shall be required for amendments made pursuant to Section 12 of the Plan, except that, for purposes of Section 19 of the Plan, <u>Section</u> <u>6</u> and <u>Appendix 2</u> of this Agreement are deemed to be "terms of an Award Agreement expressly refer[ring] to an Adjustment Event." Any amendment of this Agreement shall be in writing and signed by an authorized member of the Committee or a person or persons designated by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. ***Options Subject to the Plan***. The Options granted by this Agreement are subject to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. ***Entire Agreement***. Except for any employment agreement between you and the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group in effect as of the date of the grant hereof (as such employment agreement may be modified, renewed or replaced; <u>provided</u> that such modification, renewal or replacement shall not extend the time any Options may be exercised beyond the time provided herein or in such original employment agreement), this Agreement and the Plan constitute the entire understanding and agreement of you and the Company with respect to the Options covered hereby and supersede all prior understandings and agreements. Except as provided in Sections 8 and 25, in the event of a conflict among the documents with respect to the terms and conditions of the Options covered hereby, the documents will be accorded the following order of authority: the terms and conditions of the Plan will have highest authority followed by the terms and conditions of your employment agreement, if any, followed by the terms and conditions of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. ***Successors and Assigns***. The terms and conditions of this Agreement shall be binding upon, and shall inure to the benefit of, the Company and its successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. ***Waiver***. No waiver by the Company at any time of any breach by you of, or compliance with, any term or condition of this Agreement or the Plan to be performed by you shall be deemed a waiver of the same term or condition, or of any similar or any dissimilar term or condition, whether at the same time or at any prior or subsequent time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. ***Severability***. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any term or condition hereof shall not affect the validity or enforceability of the other terms and conditions set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. ***Exclusion from Compensation Calculation***. By acceptance of this Agreement, you shall be deemed to be in agreement that all shares of Class A Common Stock and cash received upon each exercise of the Options shall be considered special incentive compensation and will be exempt from inclusion as "wages" or "salary" in pension, retirement, life insurance and other employee benefits arrangements of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, except as determined otherwise by the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group. In addition, each of your beneficiaries shall be deemed to be in agreement that all such shares of Class A Common Stock and cash will be exempt from inclusion in "wages" or "salary" for purposes of calculating benefits of any life insurance coverage sponsored by the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. ***No Right to Continued Employment***. Nothing contained in this Agreement or the Plan shall be construed to confer on you any right to continue in the employ of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, or derogate from the right of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, as applicable, to retire, request the resignation of, or discharge you, at any time, with or without cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. ***Subsidiaries****.* For purposes of this Agreement, *"*<u>Subsidiaries</u>*"* means any entities that are controlled, directly or indirectly, by the Company, MSG Sphere or MSG Sports, as applicable, or in which the Company, MSG Sphere or MSG Sports, as applicable, owns, directly or indirectly, more than 50% of the equity interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. ***Headings***. The headings in this Agreement are for purposes of convenience only and are not intended to define or limit the construction of the terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. ***Effective Date***. Upon execution by you, this Agreement shall be effective from and as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28. ***Signatures***. Execution of this Agreement by the Company may be in the form of an electronic, manual or similar signature (including, without limitation, an electronic acknowledgement of acceptance), and such signature shall be treated as an original signature for all purposes.

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| | |
|:---|:---|
| MADISON SQUARE GARDEN ENTERTAINMENT CORP. | MADISON SQUARE GARDEN ENTERTAINMENT CORP. |
| By |  |
|  | Name: |
|  | Title: |

---

By your electronic acknowledgement of acceptance, you (i) acknowledge that a complete copy of the Plan and an executed original of this Agreement have been made available to you and (ii) agree to all of the terms and conditions set forth in the Plan and this Agreement.

## Exhibit 10.13

***Exhibit 10.13***

**FORM OF RESTRICTED STOCK UNITS AGREEMENT** 

Dear [Participant Name]:

Pursuant to MSG Sphere Corp.'s 2020 Employee Stock Plan or MSG Networks Inc.'s 2010 Employee Stock Plan, as amended, as applicable, on [Date] (the "<u>Grant Date</u>"), you were granted restricted stock units, each of which represents an unfunded, unsecured promise by MSG Sphere Corp. (formerly known as Madison Square Garden Entertainment Corp.) ("<u>MSG Sphere</u>") to deliver to you one share of MSG Sphere Class A Common Stock. In conjunction with the spin-off of Madison Square Garden Entertainment Corp. (formerly known as MSGE Spinco, Inc.) (the "<u>Company</u>") from MSG Sphere on [Date] (the "<u>Distribution Date</u>"), and pursuant to the Company's 2023 Employee Stock Plan (the "<u>Plan</u>"), you are receiving the award described in this Restricted Stock Units Agreement (the "<u>Agreement</u>") of [#RSUs] restricted stock units (the "<u>Units</u>"), each of which represents an unfunded, unsecured promise by the Company to deliver to you one share of the Company's Class A Common Stock, par value $.01 per share ("<u>Share</u>").

Capitalized terms used but not defined in this Agreement have the meanings given to them in the Plan. The Units are subject to the terms and conditions set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. ***Awards***. Each Unit shall represent an unfunded, unsecured promise by the Company to deliver to you one Share on the Delivery Date. In accordance with Section 10(b) of the Plan, in the discretion of the Committee, in lieu of all or any portion of the Shares otherwise deliverable in respect of your Units, the Company may deliver a cash amount equal to the number of such Shares multiplied by the Fair Market Value of a Share on the date when Shares would otherwise have been issued, as determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. ***Vesting****.* Your Units will vest in accordance with <u>Appendix 1</u>; <u>provided</u> that you have remained in the continuous employ of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group (each as defined below) through each vesting date set forth on <u>Appendix 1</u> (each, a "<u>Vesting Date</u>"). Subject to Sections 3 and 4, you will forfeit any unvested Units if you do not remain continuously employed with the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group (each as defined below) from the Grant Date through any Vesting Date.

For purposes of this Agreement, the "<u>MSG Entertainment Group</u>" means the Company and any of its Subsidiaries. The "<u>MSG Sphere Group</u>" means MSG Sphere and any of its Subsidiaries. The "<u>MSG Sports Group</u>" means Madison Square Garden Sports Corp. ("<u>MSG Sports</u>") and any of its Subsidiaries.

For purposes of this Agreement, if you are employed by the MSG Entertainment Group, your "<u>Employer</u>" means the Company; if you are employed by the MSG Sphere Group, your "<u>Employer</u>" means MSG Sphere; if you are employed by the MSG Sports Group, your "<u>Employer</u>" means MSG Sports; if you are employed by both the MSG Entertainment Group and the MSG Sphere Group, your "<u>Employer</u>" means MSG Entertainment; if you are employed by both the MSG Entertainment Group and the MSG Sports Group, your "<u>Employer</u>" means MSG Entertainment; and if you are employed by each of the MSG Entertainment Group, the MSG Sphere Group and the MSG Sports Group, your "<u>Employer</u>" means MSG Entertainment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. ***Vesting in the Event of Death, Disability[, Retirement]***<sup>1</sup> ***and Other Circumstances***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) If your employment is terminated as a result of your death, all of the unvested Units will vest as of the termination date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) If your employment is terminated while you are Disabled, and Cause does not then exist, your unvested Units will immediately vest, and will become payable at such times as they would have otherwise vested pursuant to Section 2.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) [If your employment is terminated on or after the date that you achieve Retirement Eligibility, and Cause does not then exist, then so long as you enter into your Employer's then-current form of separation agreement (which shall include, without limitation, a covenant not to compete), you will vest in your Units and such Units will become payable at such times as they would have otherwise vested pursuant to Section 2 regardless of whether or not you remain employed by your Employer on such dates; <u>provided</u>, however, that upon a termination for Cause, you will forfeit all Units that had not yet been paid.]<sup>2</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) If your employment is terminated for other reasons, the Committee may, in its sole discretion determine to vest all or a portion of the unvested Units (but shall be under no obligation to consider doing so).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) " <u>Disabled</u> " means that you received short term disability income replacement payments for six
(6) months, and thereafter (A) have been determined to be disabled in accordance with your Employer's long term disability plan in which employees of your Employer are generally able to participate, if one is in effect at such time or
(B) to the extent no such long term disability plan exists, have been determined to have a medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not
less than twelve (12) months as determined by the department or vendor directed by your Employer to determine eligibility for unpaid medical leave.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) " <u>Cause</u> " means, as determined by the compensation committee of your Employer, in its sole
discretion, your (A) commission of an

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<sup>1</sup> To be included to the extent included in MSG Sphere restricted stock units.

<sup>2</sup> See footnote 1.

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act of fraud, embezzlement, misappropriation, willful misconduct, gross negligence or breach of fiduciary duty against your Employer or (B) commission of any act or omission that results in a conviction, plea of no contest, plea of *nolo contendere* or imposition of unadjudicated probation for any crime involving moral turpitude or any felony.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) [" <u>Retirement Eligibility</u> " means that you are either (A) at least fifty-five
(55) years old with at least ten (10) years of continuous service with the MSG Entertainment Group, the MSG Sphere Group and/or the MSG Sports Group or (B) at least sixty (60) years old with at least five (5) years of
continuous service with the MSG Entertainment Group, the MSG Sphere Group and/or the MSG Sports Group.]<sup>3</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. ***Change of Control/Going-Private Transaction****.* As set forth in <u>Appendix 2</u> attached hereto, your entitlement to the Units may be affected in the event of a MSG Entertainment Change of Control, a MSG Sphere Change of Control, a MSG Sports Change of Control or a going-private transaction with respect to the Company, MSG Sphere or MSG Sports (each as defined in <u>Appendix 2</u> attached hereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. ***Transfer Restrictions****.* You may not transfer, assign, pledge or otherwise encumber the Units, other than to the extent provided in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. ***Right to Vote and Receive Dividends****.* You shall not be deemed to be the holder of, or have any of the rights of a stockholder with respect to, any Units unless and until the Company shall have issued and delivered Shares to you and your name shall have been entered as a stockholder of record on the books of the Company. Pursuant to Section 10(c) of the Plan, all ordinary (as determined by the Committee in its sole discretion) cash dividends that would have been paid upon any Shares underlying your Units had such Shares been issued will be retained by the Company for your account until your Units vest and such dividends will be paid to you (without interest) on the applicable Delivery Date to the extent that your Units vest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. ***Tax Representations and Tax Withholding***. You hereby acknowledge that you have reviewed with your own tax advisors the federal, state and local tax consequences of receiving the Units. You hereby represent to the MSG Entertainment Group, the MSG Sphere Group and the MSG Sports Group that you are relying solely on such advisors and not on any statements or representations of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, any of their respective Affiliates or any of their respective agents. If, in connection with the Units, your Employer is required to withhold any amounts by reason of any federal, state or local tax, such withholding shall be effected in accordance with Section 16 of the Plan. If your Units vest prior to payment in accordance with Section 3(B)[ or][,] (C)[ or (D)]<sup>4</sup>, then you agree to cooperate with your Employer to satisfy any tax withholding obligations, in such manner as determined by the Committee in its sole discretion.

------

<sup>3</sup> See footnote 1.

<sup>4</sup> See footnote 1.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. ***Section 409A****.* It is the intent that payments under this Agreement shall comply with Section 409A of the Internal Revenue Code ("<u>Section</u> <u>409A</u>") to the extent applicable, and that the Agreement be administered accordingly. Notwithstanding anything to the contrary contained in this Agreement or any employment agreement you have entered into with your Employer, to the extent that any payment or benefit under this Agreement is determined by your Employer to constitute "non-qualified deferred compensation" subject to Section 409A and is payable to you by reason of termination of your employment, then (a) such payment or benefit shall be made or provided to you only upon a "separation from service" as defined for purposes of Section 409A under applicable regulations and (b) if you are a "specified employee" (within the meaning of Section 409A and as determined by your Employer), such payment or benefit shall not be made or provided before the date that is six (6) months after the date of your separation from service <u>(or your earlier death</u>). Each payment under this Agreement shall be treated as a separate payment under Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. ***Delivery****.* Subject to Sections 7, 10 and 13 and except as otherwise provided in this Agreement, the Shares will be delivered in respect of vested Units (if any) on the first to occur of the following events: (i) to you on or promptly after the applicable Vesting Date (but in no case more than fifteen (15) days after such date), (ii) in the event of your death to your estate after your death and during the calendar year in which your death occurs (or such later date as may be permitted under Section 409A) and (iii) in the event of any other termination of your employment (including pursuant to the provisions of <u>Appendix 1</u>) to you on the ninetieth (90th) day following termination of your employment (the "<u>Delivery Date</u>"). Unless otherwise determined by the Committee, delivery of the Shares at the Delivery Date will be by book-entry credit to an account in your name that the Company has established at a custody agent (the "<u>custodian</u>"). The Company's transfer agent, EQ Shareowner Services, shall act as the custodian of the Shares; <u>however</u>, the Company may in its sole discretion appoint another custodian to replace EQ Shareowner Services. On the Delivery Date, if you have complied with your obligations under this Agreement and <u>provided</u> that your tax obligations with respect to the vested Units are appropriately satisfied, we will instruct the custodian to electronically transfer your Shares to a brokerage or other account on your behalf (or make such other arrangements for the delivery of the Shares to you as we reasonably determine).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. ***Right of Offset***. You hereby agree that the Company shall have the right to offset against its obligation to deliver shares of Class A Common Stock, cash or other property under this Agreement to the extent that it does not constitute "non-qualified deferred compensation" pursuant to Section 409A, any outstanding amounts of whatever nature that you then owe to the Company or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. ***The Committee***. For purposes of this Agreement, the term "<u>Committee</u>" means the Compensation Committee of the Board of Directors of the Company or any replacement committee established under, and as more fully defined in, the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. ***Committee Discretion***. The Committee has full discretion with respect to any actions to be taken or determinations to be made in connection with this Agreement, and its determinations shall be final, binding and conclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. ***Amendment****.* The Committee reserves the right at any time to amend the terms and conditions set forth in this Agreement, except that the Committee shall not make any amendment or revision in a manner unfavorable to you (other than if immaterial), without your consent. No consent shall be required for amendments made pursuant to Section 12 of the Plan, except that, for purposes of Section 19 of the Plan, Section 4 and <u>Appendix 1</u> of this Agreement are deemed to be "terms of an Award Agreement expressly refer[ring] to an Adjustment Event." Any amendment of this Agreement shall be in writing and signed by an authorized member of the Committee or a person or persons designated by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. ***Units Subject to the Plan****.* The Units covered by this Agreement are subject to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. ***Subsidiaries****.* For purposes of this Agreement, *"*<u>Subsidiaries</u>*"* means any entities that are controlled, directly or indirectly, by the Company, MSG Sphere or MSG Sports, as applicable, or in which the Company, MSG Sphere or MSG Sports, as applicable, owns, directly or indirectly, more than 50% of the equity interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. ***Entire Agreement****.* Except for any employment agreement between you and the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group in effect as of the date of the grant hereof (as such employment agreement may be modified, renewed or replaced), this Agreement and the Plan constitute the entire understanding and agreement of you and the Company with respect to the Units covered hereby and supersede all prior understandings and agreements. Except as provided in Sections 8 and 15, in the event of a conflict among the documents with respect to the terms and conditions of the Units covered hereby, the documents will be accorded the following order of authority: the terms and conditions of the Plan will have highest authority followed by the terms and conditions of your employment agreement, if any, followed by the terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. ***Successors and Assigns****.* The terms and conditions of this Agreement shall be binding upon, and shall inure to the benefit of, the Company and its successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. ***Governing Law****.* This Agreement shall be deemed to be made under, and in all respects be interpreted, construed and governed by and in accordance with, the laws of the State of New York without regard to conflict of law principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. ***Jurisdiction and Venue****.* You irrevocably submit to the jurisdiction of the courts of the State of New York and the Federal courts of the United States located in the Southern District of the State of New York in respect of the interpretation and enforcement of the provisions of this Agreement, and hereby waive, and agree not to assert, as a defense that you are not subject thereto or that the venue thereof may not be appropriate. You agree that the mailing of process or other papers in connection with any action or proceeding in any manner permitted by law shall be valid and sufficient service.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. ***Waiver***. No waiver by the Company at any time of any breach by you of, or compliance with, any term or condition of this Agreement or the Plan to be performed by you shall be deemed a waiver of the same term or condition, or of any similar or any dissimilar term or condition, whether at the same time or at any prior or subsequent time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. ***Severability***. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any term or condition hereof shall not affect the validity or enforceability of the other terms and conditions set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. ***Exclusion from Compensation Calculation***. By acceptance of this Agreement, you shall be deemed to be in agreement that the Units covered hereby shall be considered special incentive compensation and will be exempt from inclusion as "wages" or "salary" in pension, retirement, life insurance and other employee benefits arrangements of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, except as determined otherwise by the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group. In addition, each of your beneficiaries shall be deemed to be in agreement that all such shares be exempt from inclusion in "wages" or "salary" for purposes of calculating benefits of any life insurance coverage sponsored by the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. ***No Right to Continued Employment***. Nothing contained in this Agreement or the Plan shall be construed to confer on you any right to continue in the employ of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, or derogate from the right of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, as applicable, to retire, request the resignation of, or discharge you, at any time, with or without cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. ***Headings****.* The headings in this Agreement are for purposes of convenience only and are not intended to define or limit the construction of the terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. ***Effective Date****.* Upon execution by you, this Agreement shall be effective from and as of the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. ***Signatures****.* Execution of this Agreement by the Company may be in the form of an electronic, manual or similar signature (including, without limitation, an electronic acknowledgement of acceptance), and such signature shall be treated as an original signature for all purposes.

[Remainder of the page intentionally left blank]

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---

| | |
|:---|:---|
| MADISON SQUARE GARDEN ENTERTAINMENT CORP. | MADISON SQUARE GARDEN ENTERTAINMENT CORP. |
| By: |  |
|  | Name: |
|  | Title: |

---

By your electronic acknowledgement of acceptance, you (i) acknowledge that a complete copy of the Plan and an executed original of this Agreement have been made available to you and (ii) agree to all of the terms and conditions set forth in the Plan and this Agreement.

## Exhibit 10.14

***Exhibit 10.14*** 

**FORM OF OPTION AGREEMENT** 

Dear [Participant Name]:

Pursuant to MSG Sphere Corp.'s 2020 Employee Stock Plan or MSG Network Inc.'s 2010 Employee Stock Plan, as amended, as applicable, on [Date] (the "<u>Grant Date</u>"), you were granted options to purchase shares of MSG Sphere Corp. (formerly known as Madison Square Garden Entertainment Corp.) ("<u>MSG Sphere</u>") Class A Common Stock. In conjunction with the spin-off of Madison Square Garden Entertainment Corp. (formerly known as MSGE Spinco, Inc.) (the "<u>Company</u>") from MSG Sphere on [Date] (the "<u>Distribution Date</u>"), and pursuant to the Company's 2023 Employee Stock Plan (the "<u>Plan</u>"), you are receiving the award described in this Option Agreement (the "<u>Agreement</u>") of nonqualified stock options (the "<u>Options</u>") to purchase [#shares] shares of the Company's Class A common stock (the "<u>Class</u> <u>A Common Stock</u>") at a price of $[Dollars] per share.

Capitalized terms used but not defined in this Agreement have the meanings given to them in the Plan. The Options are granted subject to the terms and conditions set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. ***Vesting***. Your Options will vest and become exercisable in accordance with <u>Appendix 1</u>; <u>provided</u>, that you have remained in the continuous employ of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group (each as defined below) from the Grant Date through the applicable vesting date(s).

For purposes of this Agreement, the "<u>MSG Entertainment Group</u>" means the Company and any of its Subsidiaries. The "<u>MSG Sphere Group</u>" means MSG Sphere and any of its Subsidiaries. The "<u>MSG Sports Group</u>" means Madison Square Garden Sports Corp. ("<u>MSG Sports</u>") and any of its Subsidiaries.

For purposes of this Agreement, if you are employed by the MSG Entertainment Group, your "<u>Employer</u>" means the Company; if you are employed by the MSG Sphere Group, your "<u>Employer</u>" means MSG Sphere; if you are employed by the MSG Sports Group, your "<u>Employer</u>" means MSG Sports; if you are employed by both the MSG Entertainment Group and the MSG Sphere Group, your "<u>Employer</u>" means MSG Entertainment; if you are employed by both the MSG Entertainment Group and the MSG Sports Group, your "<u>Employer</u>" means MSG Entertainment; and if you are employed by each of the MSG Entertainment Group, the MSG Sphere Group and the MSG Sports Group, your "<u>Employer</u>" means MSG Entertainment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. ***Exercise***. You may exercise the Options that become vested and exercisable by following such procedures as established by the Company, specifying the number of shares of Class A Common Stock as to which the Options are being exercised (the "<u>Exercise Notice</u>"). Unless the Compensation Committee of the Board of Directors of the Company (as more fully described in Section 15, the "<u>Committee</u>") chooses to settle such exercise in cash, shares of Class A Common Stock, or a combination thereof pursuant to Section 3, you will be required to deliver to the Company, or such person as the Company may designate, within such time period as the Company may require, payment in full of the exercise price and any taxes due on account of such exercise.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. ***Option Spread***. Upon receipt of the Exercise Notice, the Committee may elect, in lieu of issuing shares of Class A Common Stock, to settle the exercise covered by such notice by paying you an amount equal to the product obtained by multiplying (i) the excess of the Fair Market Value of one (1) share of Class A Common Stock on the date of exercise over the per share exercise price of the Options (the "<u>Option Spread</u>") by (ii) the number of shares of Class A Common Stock specified in the Exercise Notice. The amount payable to you in these circumstances may be paid by the Company either in cash or in shares of Class A Common Stock having a Fair Market Value equal to the Option Spread, or a combination thereof, as the Company shall determine. Class A Common Stock used to pay the Option Spread pursuant to this Section 3 will be valued at the Fair Market Value as of the day the Exercise Notice is received by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. ***Expiration***. The Options will terminate automatically and without further notice on [Date], or at any of the following dates, if earlier:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) with respect to those Options which are then unexercisable, the date upon which you are no longer employed by the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, unless as a result of your death, in which case, subject to execution and non-revocation of a release of claims if required pursuant to the terms of an applicable employment agreement between you and your Employer, all of your Options granted under this Agreement shall become immediately exercisable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) with respect to those Options which are then exercisable, (1) in the event of a termination of your employment by your Employer without Cause (other than while you are Disabled) or your resignation of employment from your Employer[ (other than due to Retirement, in which case the Options will remain exercisable until [Date])]<sup>1</sup>, ninety (90) days following the date upon which you are no longer employed or (2) in the event of your death or a termination of your employment with your Employer while you are Disabled, the first anniversary of your death or the date upon which you are no longer employed by your Employer, as applicable; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) with respect to all your then outstanding Options, whether exercisable or unexercisable, the date upon which your employment with your Employer is terminated for Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. ***Definitions***. For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) "<u>Disabled</u>" means that you received short term disability income replacement payments for six (6) months, and thereafter (A) have been determined to be disabled in accordance with your Employer's long term disability plan in which employees of your Employer are generally able to participate, if one is in effect at such time or (B) to the extent no such long term disability plan exists, have been determined to have a medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months as determined by the department or vendor directed by your Employer to determine eligibility for unpaid medical leave.

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<sup>1</sup> To be included to the extent included in MSG Sphere options.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) "<u>Cause</u>" means, as determined by the compensation committee of your Employer, in its sole discretion, your (i) commission of an act of fraud, embezzlement, misappropriation, willful misconduct, gross negligence or breach of fiduciary duty against your Employer or (ii) commission of any act or omission that results in a conviction, plea of no contest, plea of *nolo contendere* or imposition of unadjudicated probation for any crime involving moral turpitude or any felony.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) ["<u>Retirement</u>" means the voluntary termination by you of your employment with your Employer at such time as (i) you have attained at least the age of fifty-five (55) and (ii) you have been employed by the MSG Entertainment Group, the MSG Sphere Group and/or the MSG Sports Group for at least five (5) years in the aggregate; <u>provided</u> that your Employer may nevertheless decide, in its sole discretion, not to treat your termination of employment as a "Retirement" hereunder. Treatment of your termination of employment as a "Retirement" hereunder shall be further subject to your execution (and the effectiveness) of a "retirement agreement" to your Employer's satisfaction, including, without limitation (to the extent desired by your Employer), non-compete, non-disparagement, non-solicitation, confidentiality and further cooperation obligations/restrictions on you as well as a general release by you of the MSG Entertainment Group, the MSG Sphere Group and the MSG Sports Group. The above definition of "Retirement" is solely for purposes of this Agreement and shall not, in any way, create or imply any obligations of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group (under any other agreement or otherwise) with respect to any such termination of your employment.]<sup>2</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. ***Change of Control/Going-Private Transaction***. As set forth in <u>Appendix 2</u> attached hereto, the Options may be affected in the event of a MSG Entertainment Change of Control, a MSG Sphere Change of Control, a MSG Sports Change of Control or a going-private transaction with respect to the Company, MSG Sphere or MSG Sports (each as defined in <u>Appendix</u> <u>2</u> attached hereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. ***Tax Representations and Tax Withholding***. You hereby acknowledge that you have reviewed with your own tax advisors the federal, state and local tax consequences of exercising the Options and receiving shares of Class A Common Stock and cash. You hereby represent to the MSG Entertainment Group, the MSG Sphere Group and the MSG Sports Group that you are relying solely on such advisors and not on any statements or representations of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, any of their respective Affiliates or any of their respective agents. If, in connection with the exercise of the Options, your Employer is required to withhold any amounts by reason of any federal, state or local tax, such withholding shall be effected in accordance with Section 16 of the Plan.

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<sup>2</sup> See footnote 1.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. ***Section 409A****.* It is the intent that payments under this Agreement are exempt from Section 409A of the Internal Revenue Code of 1986, as amended (the "<u>Code</u>"), and that the Agreement be administered accordingly. Notwithstanding anything to the contrary contained in this Agreement, if and to the extent that any payment or benefit under this Agreement is determined by your Employer to constitute "non-qualified deferred compensation" subject to Section 409A of the Code ("<u>Section</u> <u>409A</u>") and is payable to you by reason of termination of your employment, then (a) such payment or benefit shall be made or provided to you only upon a "separation from service" as defined for purposes of Section 409A under applicable regulations and (b) if you are a "specified employee" (within the meaning of Section 409A and as determined by your Employer), such payment or benefit shall not be made or provided before the date that is six (6) months after the date of your separation from service (or your earlier death).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. ***Transfer Restrictions***. You may not transfer, assign, pledge or otherwise encumber the Options, other than to the extent provided in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. ***Non-Qualification as ISO***. The Options are not intended to qualify as "incentive stock options" within the meaning of Section 422A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. ***Securities Law Acknowledgments***. You hereby acknowledge and confirm to the MSG Entertainment Group, the MSG Sphere Group and the MSG Sports Group that (i) you are aware that the shares of Class A Common Stock are publicly-traded securities and (ii) the shares of Class A Common Stock issuable upon exercise of the Options may not be sold or otherwise transferred unless such sale or transfer is registered under the Securities Act of 1933, as amended, and the securities laws of any applicable state or other jurisdiction, or is exempt from such registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. ***Governing Law***. This Agreement shall be deemed to be made under, and in all respects shall be interpreted, construed and governed by and in accordance with, the laws of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. ***Jurisdiction and Venue***. You hereby irrevocably submit to the jurisdiction of the courts of the State of New York and the Federal courts of the United States of America located in the Southern District and Eastern District of the State of New York in respect of the interpretation and enforcement of the provisions of this Agreement, and hereby waive, and agree not to assert, as a defense that you are not subject thereto or that the venue thereof may not be appropriate. You hereby agree that mailing of process or other papers in connection with any such action or proceeding in any manner as may be permitted by law shall be valid and sufficient service thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. ***Right of Offset***. You hereby agree that the Company shall have the right to offset against its obligation to deliver shares of Class A Common Stock, cash or other property under this Agreement to the extent that it does not constitute "non-qualified deferred compensation" pursuant to Section 409A, any outstanding amounts of whatever nature that you then owe to the Company or any of its Subsidiaries.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. ***The Committee***. For purposes of this Agreement, the term "Committee" means the Compensation Committee of the Board of Directors of the Company or any replacement committee established under, and as more fully defined in, the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. ***Committee Discretion***. The Committee has full discretion with respect to any actions to be taken or determinations to be made in connection with this Agreement, and its determinations shall be final, binding and conclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. ***Amendment***. The Committee reserves the right at any time to amend the terms and conditions set forth in this Agreement, except that the Committee shall not make any amendment or revision in a manner unfavorable to you (other than if immaterial), without your consent. No consent shall be required for amendments made pursuant to Section 12 of the Plan, except that, for purposes of Section 19 of the Plan, Section 6 and <u>Appendix 2</u> of this Agreement are deemed to be "terms of an Award Agreement expressly refer[ring] to an Adjustment Event." Any amendment of this Agreement shall be in writing and signed by an authorized member of the Committee or a person or persons designated by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. ***Options Subject to the Plan***. The Options granted by this Agreement are subject to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. ***Entire Agreement***. Except for any employment agreement between you and the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group in effect as of the date of the grant hereof (as such employment agreement may be modified, renewed or replaced; <u>provided</u> that such modification, renewal or replacement shall not extend the time any Options may be exercised beyond the time provided herein or in such original employment agreement), this Agreement and the Plan constitute the entire understanding and agreement of you and the Company with respect to the Options covered hereby and supersede all prior understandings and agreements. Except as provided in Sections 8 and 25, in the event of a conflict among the documents with respect to the terms and conditions of the Options covered hereby, the documents will be accorded the following order of authority: the terms and conditions of the Plan will have highest authority followed by the terms and conditions of your employment agreement, if any, followed by the terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. ***Successors and Assigns***. The terms and conditions of this Agreement shall be binding upon, and shall inure to the benefit of, the Company and its successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. ***Waiver***. No waiver by the Company at any time of any breach by you of, or compliance with, any term or condition of this Agreement or the Plan to be performed by you shall be deemed a waiver of the same term or condition, or of any similar or any dissimilar term or condition, whether at the same time or at any prior or subsequent time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. ***Severability***. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any term or condition hereof shall not affect the validity or enforceability of the other terms and conditions set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. ***Exclusion from Compensation Calculation***. By acceptance of this Agreement, you shall be deemed to be in agreement that all shares of Class A Common Stock

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and cash received upon each exercise of the Options shall be considered special incentive compensation and will be exempt from inclusion as "wages" or "salary" in pension, retirement, life insurance and other employee benefits arrangements of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, except as determined otherwise by the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group. In addition, each of your beneficiaries shall be deemed to be in agreement that all such shares of Class A Common Stock and cash will be exempt from inclusion in "wages" or "salary" for purposes of calculating benefits of any life insurance coverage sponsored by the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. ***No Right to Continued Employment***. Nothing contained in this Agreement or the Plan shall be construed to confer on you any right to continue in the employ of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, or derogate from the right of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, as applicable, to retire, request the resignation of, or discharge you, at any time, with or without cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. ***Subsidiaries****.* For purposes of this Agreement, *"*<u>Subsidiaries</u>*"* means any entities that are controlled, directly or indirectly, by the Company, MSG Sphere or MSG Sports, as applicable, or in which the Company, MSG Sphere or MSG Sports, as applicable, owns, directly or indirectly, more than 50% of the equity interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. ***Headings***. The headings in this Agreement are for purposes of convenience only and are not intended to define or limit the construction of the terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. ***Effective Date***. Upon execution by you, this Agreement shall be effective from and as of the Distribution Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28. ***Signatures***. Execution of this Agreement by the Company may be in the form of an electronic, manual or similar signature (including, without limitation, an electronic acknowledgement of acceptance), and such signature shall be treated as an original signature for all purposes.

[Remainder of the page intentionally left blank]

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| | |
|:---|:---|
| MADISON SQUARE GARDEN ENTERTAINMENT CORP. | MADISON SQUARE GARDEN ENTERTAINMENT CORP. |
| By: |  |
|  | Name: |
|  | Title: |

---

By your electronic acknowledgement of acceptance, you (i) acknowledge that a complete copy of the Plan and an executed original of this Agreement have been made available to you and (ii) agree to all of the terms and conditions set forth in the Plan and this Agreement.

## Exhibit 10.15

***Exhibit 10.15***

**FORM OF PERFORMANCE RESTRICTED STOCK UNITS AGREEMENT** 

Dear [Participant Name]:

Pursuant to MSG Sphere Corp.'s 2020 Employee Stock Plan or MSG Networks Inc.'s 2010 Employee Stock Plan, as amended, as applicable, on [Date] (the "<u>Grant Date</u>"), you were granted performance restricted stock units, each of which represents an unfunded, unsecured promise by MSG Sphere Corp. (formerly known as Madison Square Garden Entertainment Corp.) ("<u>MSG Sphere</u>") to deliver to you one share of MSG Sphere Class A Common Stock. In conjunction with the spin-off of Madison Square Garden Entertainment Corp. (formerly known as MSGE Spinco, Inc.) (the "<u>Company</u>") from MSG Sphere on [Date] (the "<u>Distribution Date</u>"), and pursuant to the Company's 2023 Employee Stock Plan (the "<u>Plan</u>"), you are receiving the award described in this Performance Restricted Stock Units Agreement (the "<u>Agreement</u>") of performance restricted stock units (the "<u>Units</u>"), each of which represents an unfunded, unsecured promise by the Company to deliver to you one share of the Company's Class A Common Stock, par value $.01 per share ("<u>Share</u>").

Capitalized terms used but not defined in this Agreement have the meanings given to them in the Plan. The Units are subject to the terms and conditions set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. ***Awards***. In accordance with the terms of this Agreement, the target amount of your contingent Award is [#RSUs] restricted stock units (the "<u>Target Award</u>"), which number of units may be increased or decreased to the extent the performance criteria (the "<u>Objectives</u>") set forth in <u>Appendix 2</u> attached hereto have been attained in respect of the performance period set forth in <u>Appendix 2</u> (the "<u>Performance Period</u>"). Each Unit shall represent an unfunded, unsecured promise by the Company to deliver to you one Share on the Delivery Date. The Award, calculated in accordance with <u>Appendix 2</u> attached hereto, will vest upon the later of (i) September 15, [year] and (ii) the date on which the Compensation Committee of the Board of Directors (as more fully described in Section 12, the "<u>Committee</u>") determines performance against the Objectives (the "<u>Vesting Date</u>"); <u>provided</u>, that you have remained in the continuous employ of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group (each as defined below) from the Grant Date through the Vesting Date. In accordance with Section 10(b) of the Plan, in the discretion of the Committee, in lieu of all or any portion of the Shares otherwise deliverable in respect of your Award, the Company may deliver a cash amount equal to the number of such Shares multiplied by the Fair Market Value of a Share on the date when Shares would otherwise have been issued, as determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. ***Vesting****.* Subject to Sections 3 and 4, you will automatically forfeit all of your rights and interest in any unvested Units if you do not remain continuously employed with the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group (each as defined below) from the Grant Date through the Vesting Date.

For purposes of this Agreement, the "<u>MSG Entertainment Group</u>" means the Company and any of its Subsidiaries. The "<u>MSG Sphere Group</u>" means MSG Sphere and any of its Subsidiaries. The "<u>MSG Sports Group</u>" means Madison Square Garden Sports Corp. ("<u>MSG Sports</u>") and any of its Subsidiaries.

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For purposes of this Agreement, if you are employed by the MSG Entertainment Group, your "<u>Employer</u>" means the Company; if you are employed by the MSG Sphere Group, your "<u>Employer</u>" means MSG Sphere; if you are employed by the MSG Sports Group, your "<u>Employer</u>" means MSG Sports; if you are employed by both the MSG Entertainment Group and the MSG Sphere Group, your "<u>Employer</u>" means MSG Entertainment; if you are employed by both the MSG Entertainment Group and the MSG Sports Group, your "<u>Employer</u>" means MSG Entertainment; and if you are employed by each of the MSG Entertainment Group, the MSG Sphere Group and the MSG Sports Group, your "<u>Employer</u>" means MSG Entertainment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. ***Vesting in the Event of Death[or][,] Disability[, or Retirement]***.<sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) If your employment is terminated as a result of your death on or prior to the Vesting Date, then the Target Award will vest as of the termination date. If, after June 30, [year] *but* prior to the Vesting Date, your employment is terminated as a result of your death, then your estate will receive the Award, if any, to which you would have been entitled on the Vesting Date had your employment not been so terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) If your employment is terminated while you are Disabled, and Cause does not then exist, the Award will remain subject to vesting on the Vesting Date in accordance with Section 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) [If your employment is terminated on or after the date that you achieve Retirement Eligibility, and Cause does not then exist, and you enter into your Employer's then-current form of separation agreement (which shall include, without limitation, a covenant not to compete), the Award will remain subject to vesting on the Vesting Date in accordance with Section 1.]<sup>2</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) " <u>Disabled</u> " means that you received short term disability income replacement payments for six
(6) months, and thereafter (A) have been determined to be disabled in accordance with your Employer's long term disability plan in which employees of your Employer are generally able to participate, if one is in effect at such time,
or (B) to the extent no such long term disability plan exists, have been determined to have a medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not
less than twelve (12) months as determined by the department or vendor directed by your Employer to determine eligibility for unpaid medical leave.

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<sup>1</sup> To be included to the extent included in MSG Sphere performance restricted stock units.

<sup>2</sup> See footnote 1.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) " <u>Cause</u> " means, as determined by the compensation committee of your Employer, in its sole
discretion, your (A) commission of an act of fraud, embezzlement, misappropriation, willful misconduct, gross negligence or breach of fiduciary duty against your Employer or (B) commission of any act or omission that results in a
conviction, plea of no contest, plea of *nolo contendere* or imposition of unadjudicated probation for any crime involving moral turpitude or any felony.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) [" <u>Retirement Eligibility</u> " means that you are either (A) at least fifty-five
(55) years old with at least ten (10) years of continuous service with the MSG Entertainment Group, the MSG Sphere Group and/or the MSG Sports Group or (B) at least sixty (60) years old with at least five (5) years of
continuous service with the MSG Entertainment Group, the MSG Sphere Group and/or the MSG Sports Group.]<sup>3</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. ***Change of Control/Going-Private Transaction****.* As set forth in <u>Appendix 1</u> attached hereto, your entitlement to the Award may be affected in the event of a MSG Entertainment Change of Control, a MSG Sphere Change of Control, a MSG Sports Change of Control or a going-private transaction with respect to the Company, MSG Sphere or MSG Sports (each as defined in <u>Appendix 1</u> attached hereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. ***Transfer Restrictions****.* You may not transfer, assign, pledge or otherwise encumber the Units, other than to the extent provided in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. ***Unfunded Obligation***. The Plan will at all times be unfunded and, except as set forth in <u>Appendix 1</u> attached hereto, no provision will at any time be required to be made with respect to segregating any assets of the Company or any of its Subsidiaries for payment of any benefits under the Plan, including, without limitation, those covered by this Agreement. Your right or that of your estate to receive delivery or payment under this Agreement shall be an unsecured claim against the general assets of the Company, including any rabbi trust established pursuant to <u>Appendix 1</u>. Neither you nor your estate shall have any rights in or against any specific assets of the Company other than the assets held by the rabbi trust established pursuant to <u>Appendix 1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. ***Right to Vote and Receive Dividends****.* You shall not be deemed to be the holder of, or have any of the rights of a stockholder with respect to, any Units unless and until the Company shall have issued and delivered Shares to you and your name shall have been entered as a stockholder of record on the books of the Company. Pursuant to Section 10(c) of the Plan, all ordinary (as determined by the Committee in its sole discretion) cash dividends that would have been paid upon any Shares underlying your Units had such Shares been issued will be retained by the Company for your account until your Units vest and such dividends will be paid to you (without interest) on the Delivery Date to the extent that your Units vest.

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<sup>3</sup> See footnote 1.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. ***Tax Representations and Tax Withholding***. You hereby acknowledge that you have reviewed with your own tax advisors the federal, state and local tax consequences of receiving the Units. You hereby represent to the MSG Entertainment Group, the MSG Sphere Group and the MSG Sports Group that you are relying solely on such advisors and not on any statements or representations of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, any of their respective Affiliates or any of their respective agents. If, in connection with the Units, your Employer is required to withhold any amounts by reason of any federal, state or local tax, such withholding shall be effected in accordance with Section 16 of the Plan. If your Units vest prior to payment in accordance with Section 3(B)[ or (C)]<sup>4</sup>, then you agree to cooperate with your Employer to satisfy any tax withholding obligations, in such manner as determined by the Committee in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. ***Section 409A****.* It is the intent that payments under this Agreement shall comply with Section 409A of the Internal Revenue Code ("<u>Section</u> <u>409A</u>") to the extent applicable, and that the Agreement be administered accordingly. Notwithstanding anything to the contrary contained in this Agreement or any employment agreement you have entered into with your Employer, to the extent that any payment or benefit under this Agreement is determined by your Employer to constitute "non-qualified deferred compensation" subject to Section 409A and is payable to you by reason of termination of your employment, then (a) such payment or benefit shall be made or provided to you only upon a "separation from service" as defined for purposes of Section 409A under applicable regulations and (b) if you are a "specified employee" (within the meaning of Section 409A and as determined by your Employer), such payment or benefit shall not be made or provided before the date that is six (6) months after the date of your separation from service (or your earlier death). Each payment under this Agreement shall be treated as a separate payment under Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. ***Delivery****.* Subject to Sections 8, 11 and 14 and Appendix 1 and except as otherwise provided in this Agreement, the Shares will be delivered in respect of vested Units (if any) on the first to occur of the following events: (i) to you on or promptly after the Vesting Date (but in no case more than fifteen (15) days after such date) and (ii) in the event of your death to your estate after your death and during the calendar year in which your death occurs (or such later date as may be permitted under Section 409A) (the "<u>Delivery Date</u>"). Unless otherwise determined by the Committee, delivery of the Shares at the Delivery Date will be by book-entry credit to an account in your name that the Company has established at a custody agent (the "<u>custodian</u>"). The Company's transfer agent, EQ Shareowner Services, shall act as the custodian of the Shares; <u>however</u>, the Company may in its sole discretion appoint another custodian to replace EQ Shareowner Services. On the Delivery Date, if you have complied with your obligations under this Agreement and <u>provided</u> that your tax obligations with respect to the vested Units are appropriately satisfied, we will instruct the custodian to electronically transfer your Shares to a brokerage or other account on your behalf (or make such other arrangements for the delivery of the Shares to you as we reasonably determine).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. ***Right of Offset***. You hereby agree that the Company shall have the right to offset against its obligation to deliver shares of Class A Common Stock, cash or other property

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<sup>4</sup> See footnote 1.

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under this Agreement to the extent that it does not constitute "non-qualified deferred compensation" pursuant to Section 409A, any outstanding amounts of whatever nature that you then owe to the Company or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. ***The Committee***. For purposes of this Agreement, the term "<u>Committee</u>" means the Compensation Committee of the Board of Directors of the Company or any replacement committee established under, and as more fully defined in, the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. ***Committee Discretion***. The Committee has full discretion with respect to any actions to be taken or determinations to be made in connection with this Agreement, and its determinations shall be final, binding and conclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. ***Amendment****.* The Committee reserves the right at any time to amend the terms and conditions set forth in this Agreement, except that the Committee shall not make any amendment or revision in a manner unfavorable to you (other than if immaterial), without your consent. No consent shall be required for amendments made pursuant to Section 12 of the Plan, except that, for purposes of Section 19 of the Plan, Section 4 and <u>Appendix 1</u> of this Agreement are deemed to be "terms of an Award Agreement expressly refer[ring] to an Adjustment Event." Any amendment of this Agreement shall be in writing and signed by an authorized member of the Committee or a person or persons designated by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. ***Units Subject to the Plan****.* The Units covered by this Agreement are subject to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. ***Subsidiaries****.* For purposes of this Agreement, *"*<u>Subsidiaries</u>*"* means any entities that are controlled, directly or indirectly, by the Company, MSG Sphere or MSG Sports, as applicable, or in which the Company, MSG Sphere or MSG Sports, as applicable, owns, directly or indirectly, more than 50% of the equity interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. ***Entire Agreement****.* Except for any employment agreement between you and the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group in effect as of the date of the grant hereof (as such employment agreement may be modified, renewed or replaced), this Agreement and the Plan constitute the entire understanding and agreement of you and the Company with respect to the Units covered hereby and supersede all prior understandings and agreements. Except as provided in Sections 9 and 16, in the event of a conflict among the documents with respect to the terms and conditions of the Units covered hereby, the documents will be accorded the following order of authority: the terms and conditions of the Plan will have highest authority followed by the terms and conditions of your employment agreement, if any, followed by the terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. ***Successors and Assigns****.* The terms and conditions of this Agreement shall be binding upon, and shall inure to the benefit of, the Company and its successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. ***Governing Law****.* This Agreement shall be deemed to be made under, and in all respects be interpreted, construed and governed by and in accordance with, the laws of the State of New York without regard to conflict of law principles.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. ***Jurisdiction and Venue****.* You irrevocably submit to the jurisdiction of the courts of the State of New York and the Federal courts of the United States located in the Southern District of the State of New York in respect of the interpretation and enforcement of the provisions of this Agreement, and hereby waive, and agree not to assert, as a defense that you are not subject thereto or that the venue thereof may not be appropriate. You agree that the mailing of process or other papers in connection with any action or proceeding in any manner permitted by law shall be valid and sufficient service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. ***Waiver***. No waiver by the Company at any time of any breach by you of, or compliance with, any term or condition of this Agreement or the Plan to be performed by you shall be deemed a waiver of the same term or condition, or of any similar or any dissimilar term or condition, whether at the same time or at any prior or subsequent time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. ***Severability***. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any term or condition hereof shall not affect the validity or enforceability of the other terms and conditions set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. ***Exclusion from Compensation Calculation***. By acceptance of this Agreement, you shall be deemed to be in agreement that the Units covered hereby shall be considered special incentive compensation and will be exempt from inclusion as "wages" or "salary" in pension, retirement, life insurance and other employee benefits arrangements of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, except as determined otherwise by the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group. In addition, each of your beneficiaries shall be deemed to be in agreement that all such shares be exempt from inclusion in "wages" or "salary" for purposes of calculating benefits of any life insurance coverage sponsored by the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. ***No Right to Continued Employment***. Nothing contained in this Agreement or the Plan shall be construed to confer on you any right to continue in the employ of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, or derogate from the right of the MSG Entertainment Group, the MSG Sphere Group or the MSG Sports Group, as applicable, to retire, request the resignation of, or discharge you, at any time, with or without cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. ***Headings****.* The headings in this Agreement are for purposes of convenience only and are not intended to define or limit the construction of the terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. ***Effective Date****.* Upon execution by you, this Agreement shall be effective from and as of the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. ***Signatures****.* Execution of this Agreement by the Company may be in the form of an electronic, manual or similar signature (including, without limitation, an electronic acknowledgement of acceptance), and such signature shall be treated as an original signature for all purposes.

[Remainder of the page intentionally left blank]

------

---

| | |
|:---|:---|
| MADISON SQUARE GARDEN ENTERTAINMENT CORP. | MADISON SQUARE GARDEN ENTERTAINMENT CORP. |
| By: |  |
|  | Name: |
|  | Title: |

---

By your electronic acknowledgement of acceptance, you (i) acknowledge that a complete copy of the Plan and an executed original of this Agreement have been made available to you and (ii) agree to all of the terms and conditions set forth in the Plan and this Agreement.

## Exhibit 10.16

***Exhibit 10.16***

**MADISON SQUARE GARDEN ENTERTAINMENT CORP.** 

**(formerly known as MSGE Spinco, Inc.)** 

**Executive Deferred Compensation Plan** 

MSG Sphere Corp. (formerly known as Madison Square Garden Entertainment Corp.) previously established the Madison Square Garden Entertainment Corp. Executive Deferred Compensation Plan for the purpose of permitting a select group of highly-compensated employees to defer the employee's annual base salary and bonus into the Plan with returns on such deferrals tracking the performance of certain investments. The Company hereby assumes and amends and restates the Plan as of the Effective Date.

**<u>Article 1. Definitions</u>**

Whenever the following words and phrases are used in the Plan, with the first letter capitalized, they shall have the meanings specified below.

1.1 <u>Administrator</u> means the Madison Square Garden Entertainment Corp. Investment and Benefits Committee or
any other committee of at least three members appointed by the Compensation Committee of the Board. The administration of the Plan, the exclusive power to interpret it and the responsibility for carrying out its provisions are vested in the
Administrator.

1.2 <u>Affiliate</u> means any entity that is, or would be, aggregated and treated as a single employer with the
Company under Sections 414(b) or (c) of the Code; provided, however, that an ownership threshold of at least 50% shall be used hereunder instead of the 80% minimum ownership threshold that would otherwise apply under such sections of the Code.

1.3 <u>Annual Enrollment Letter</u> means the letter provided prior to the Deferral Deadline by the Administrator
to an Eligible Employee for each Plan Year in which an employee is an Eligible Employee setting forth the Eligible Employee's eligibility to defer compensation under the Plan, the maximum amount that the Eligible Employee is eligible to defer
under the Plan and such other terms as the Administrator may determine.

1.4 <u>Board</u> means the Board of Directors of the Company.

1.5 <u>Change in Control</u> means a change in ownership or effective control of the Company or in the ownership of
a substantial portion of its assets, in each case within the meaning of Section 409A(a)(2)(A)(v) of the Code, other than the acquisition, in a transaction or a series of related transactions by Charles F. Dolan or members of the immediate
family of Charles F. Dolan or trusts for the benefit of Charles F. Dolan or his immediate family (or an entity or entities controlled by any of them) or any employee benefit plan sponsored or maintained by the Company, of the power to direct the
management of the Company or substantially all of its assets (as constituted immediately prior to such transaction or transactions).

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1.6 <u>Code</u> means the Internal Revenue Code of 1986, as amended from time to time, or any successor statute.
Any reference to any section of the Code shall also be a reference to any successor provision and any Treasury Regulation promulgated thereunder.

1.7 <u>Company</u> means Madison Square Garden Entertainment Corp. (formerly known as MSGE Spinco, Inc.) and any
successor company thereto.

1.8 <u>Deferral Deadline</u> means the date by which the Participation Agreement must be completed.

1.9 <u>Deferred Compensation Account</u> means the account, which may be by book-keeping entry, maintained by the
Employer for each Participant that reflects the sum of the amounts in the Participant's Deferred Compensation Principal Account and the Deferred Compensation Earnings Account (including any negative amount as a result of any net losses). The
Deferred Compensation Account may be divided into subaccounts (based on the source of the Deferred Compensation Amount, on a Plan Year basis, or such other basis determined by the Administrator).

1.10 <u>Deferred Compensation Amount</u> means the amount voluntarily deferred under Article 2.

1.11 <u>Deferred Compensation Earnings Account</u> means the account, which may be by book-keeping entry, maintained
by the Employer for each Participant that reflects the earnings, if any, with respect to such Participant's Deferred Compensation Amount debited by amounts equal to all distributions to the Participant. The Deferred Compensation Earnings
Account may be divided into subaccounts (based on a Plan Year basis or such other basis determined by the Administrator).

1.12 <u>Deferred Compensation Principal Account</u> means the account, which may be by book-keeping entry,
maintained by the Employer for each Participant that reflects such Participant's Deferred Compensation Amount adjusted by amounts equal to all distributions to the Participant. The Deferred Compensation Principal Account may be divided into
subaccounts (based on a Plan Year basis or such other basis determined by the Administrator).

1.13 <u>Disability</u> means that the Participant received short term disability income replacement payments for six
months, and thereafter (A) has been determined to be disabled in accordance with the Company's long term disability plan in which employees of the Company are generally able to participate, if one is in effect at such time, or (B) to
the extent no such long term disability plan exists, has been determined to have a medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12
months as determined by the department or vendor directed by the Company to determine eligibility for unpaid medical leave.

1.14 <u>Eligible Employee</u> means a full-time employee of the Employer at a manager level of Senior Vice President
or above, who otherwise has been designated as eligible to participate in the Plan in accordance with the parameters established by the Administrator.

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1.15 <u>Employer</u> means the Company and any Participating Affiliate. All acts required of the Employers under the
Plan may be performed by the Company for itself and its Participating Affiliates.

1.16 <u>ERISA</u> means the Employee Retirement Income Security Act of 1974, as amended from time to time, or any
successor statute. Any reference to any section of ERISA shall also be a reference to any successor provision and any Department of Labor regulation promulgated thereunder.

1.17 <u>Investments</u> means one or more investment alternatives as may be determined from time to time by the
Administrator.

1.18 <u>Participant</u> means an Eligible Employee who has become a Participant in accordance with the provisions of
Article 2 and who has not received a complete distribution of all amounts credited to his or her Deferred Compensation Account.

1.19 <u>Participating Affiliate</u> means an Affiliate that the Administrator has designated as a Participating
Affiliate. At such times and under such conditions as the Administrator may direct, one or more other Affiliates may become Participating Affiliates or a Participating Affiliate may be withdrawn from the Plan. An initial list of the Participating
Affiliates is set forth in Appendix A to the Plan.

1.20 <u>Participation Agreement</u> means the agreement, in a form prescribed by the Administrator, filed by a
Participant on a Plan Year basis on or prior to December 31 of the calendar year prior to the calendar year during which services for which the Eligible Compensation is paid are performed.

1.21 <u>Plan</u> means the Madison Square Garden Entertainment Corp. Executive Deferred Compensation Plan, as it may
be amended from time to time.

1.22 <u>Plan Year</u> means the calendar year or any other 12-consecutive-month period that may be designated by the Company as the plan year of the Plan.

1.23 <u>Scheduled Withdrawal Date</u> means the date elected by the Participant for an in-service withdrawal, if any, as set forth on the applicable Participation Agreement executed by the Participant.

1.24 <u>Termination</u> or <u>Termination of Employment</u> means that a Participant shall have incurred a
"separation from service" within the meaning of Section 409A of the Code and the Treasury Regulations and other applicable guidance issued thereunder. Whether a Termination has occurred, including as a result of military leave, sick
leave or other *bona fide* leave of absence, shall be determined in accordance with Section 409A of the Code. In the event of any dispute as to whether a Participant has separated from service, the Administrator shall make the final
determination in accordance with the Treasury Regulations and other guidance issued under Section 409A of the Code.

1.25 <u>Treasury Regulations</u> means the regulations promulgated under the Code by the United States Internal
Revenue Service, as they may be from time to time amended.

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**<u>Article 2. Deferred Amounts</u>**

2.1 <u>General</u>. For each Plan Year, on or prior to the Deferral Deadline, an Eligible Employee may elect to
participate in the Plan by filing a Participation Agreement with the Company. An employee who is newly eligible to participate in the Plan after a Deferral Deadline may elect to participate in the Plan by filing a Participation Agreement with the
Company within 30 days after becoming an Eligible Employee. A Participation Agreement must be filed in the manner specified by the Administrator. A new Participation Agreement shall be filed by the Eligible Employee for each Plan Year in which he or
she is permitted to elect to make a deferral election. After the Deferral Deadline (or, for a newly eligible Participant, the applicable 30-day period, subject to Section 6.2 and Section 6.3), an
Eligible Employee's election to defer Eligible Compensation shall be irrevocable. An Eligible Employee's eligibility to participate in the Plan in any Plan Year shall not be a guarantee of the Eligible Employee's eligibility to
participate in the Plan for future Plan Years.

2.2 <u>Eligible Deferrals</u>. Each Eligible Employee may elect to defer receipt of one or more of the following to
his or her Deferred Compensation Account (the " <u>Eligible Compensation</u> "):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• up to a maximum of 75% of his or her annual base salary, in increments of 5%; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all or any portion of his or her earned award, if any, under the Management Performance Incentive Plan (the
" <u>MPIP</u> "), in increments of 25%.

For a newly eligible Participant, Eligible Compensation only includes such portions of salary and MPIP awards earned with respect to service after the date on which the Participation Agreement becomes irrevocable as determined by the Administrator in accordance with Section 409A of the Code.

2.3 <u>Allocation of Deferred Compensation Amounts</u>. A Participant's Deferred Compensation Amount shall be
credited to his or her Deferred Compensation Principal Account as soon as administratively practicable following the time the Participant is paid the Eligible Compensation for that Plan Year (or, if all of the Eligible Compensation is deferred, at
the time such Eligible Compensation would otherwise have been paid). The amount initially credited to the Participant's Deferred Compensation Principal Account shall equal the amount deferred.

**<u>Article 3. Vesting</u>**

3.1 <u>Deferred Compensation Principal Account</u>. A Participant shall at all times be fully vested in his or her
Deferred Compensation Principal Account.

3.2 <u>Deferred Compensation Earnings Account</u>. A Participant shall at all times be fully vested in his or her
Deferred Compensation Earnings Account.

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**<u>Article 4. [Reserved]</u>**

**<u>Article 5. Investments</u>**

5.1 The Administrator shall have the sole discretion to determine the Investments in which the Deferred
Compensation Amounts will be invested and may change, limit or eliminate an Investment from time to time.

5.2 In the manner specified by the Administrator, Participants may elect one or more Investments in which the funds
in their Deferred Compensation Earnings Account are invested and may elect to change the Investment allocations of the Deferred Compensation Account by filing an election on a form or in the manner provided by the Administrator. Except as provided
below, Participants may prospectively change their Investment elections once each calendar month, and the new investment allocations will be effective on the first day of the next month.

**<u>Article 6. Timing and Form of Benefit Distributions</u>**

6.1 <u>Form and Timing</u>. Subject to the provisions of this Article 6, the Deferred Compensation Account for a
Participant for each Plan Year shall be distributed to the Participant in a lump sum, cash payment, or up to five annual cash installments, in each case on or beginning 90 days following the first to occur of: (i) the Scheduled Withdrawal Date,
(ii) a Termination of Employment, (iii) the Participant's Disability and (iv) a Change in Control. Participants must file such payment timing elections on or prior to the Deferral Deadline for the applicable Plan Year. For those
Participants who fail to file a timely election, payment will be made in the form of a lump sum payment. Subject to the provisions of this Article 6, the Deferred Compensation Account for a Participant for each Plan Year shall be distributed to the
Participant's estate in a lump sum, cash payment, on the 90th day following the Participant's death.

6.2 <u>Domestic Relations Orders</u>. To the extent permitted by Section 409A of the Code, and notwithstanding
any provision of the Plan to the contrary, the Administrator, in its sole discretion, may elect to accelerate the time or form of payment of a benefit owed to a Participant hereunder in accordance with the terms and subject to the conditions of
Treasury Regulation 1.409A-3(j)(4)(ii).

6.3 <u>Unforeseeable Emergency</u>. In the event the Administrator, upon written request of a Participant,
determines in its sole discretion that the Participant has suffered an unforeseeable emergency, consistent with the guidance contained in Section 1.409A-3(i)(3) of the Treasury Regulations, the
Administrator may (i) revoke the Participant's deferral election with respect to future Eligible Compensation in accordance with Section 1.409A-3(j)(4)(viii) of the Treasury Regulations and/or
(ii) pay to a Participant as soon as practicable following such determination, an amount from a Participant's Deferred Compensation Account that shall not exceed the minimum amount necessary to satisfy the emergency, including payment of
applicable taxes, consistent with the guidance in Section 1.409A-3(i)(3)(ii) of the Treasury Regulations. A Participant who receives a hardship distribution pursuant to this Section 6.3 shall be
ineligible to make any additional deferrals under the Plan for the balance of the Plan Year in which the hardship distribution occurs and for the immediately following Plan Year.

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6.4 <u>Subsequent Elections</u>. With respect to any Deferred Compensation Account for a Plan Year that a
Participant elected to receive in a lump sum, in the event of a distribution pursuant to Section 6.1(i), the Participant may delay the distribution of such Deferred Compensation Amount subject to the following requirements: (A) the new
election may not take effect until at least 12 months after the date on which the new election is made; (B) the new election must provide for the deferral of the distribution for a period of at least five years from the date such distribution
otherwise would have been made and (C) the new election must be made at least 12 months prior to the date such distribution otherwise would have been made.

**<u>Article 7. Administration</u>**

7.1 <u>Administration by the Committee</u>. The Administrator shall be responsible for the general operation and
administration of the Plan and for carrying out the provisions thereof.

7.2 <u>General Powers of Administration</u>. The Administrator shall have all the authority that may be necessary
or helpful to enable it to discharge its responsibilities with respect to the Plan. The Administrator may, subject to the provisions of the Plan, establish such rules and regulations as it deems necessary or advisable for the proper administration
of the Plan, and may make determinations and may take such other action in connection with or in relation to the Plan as it deems necessary or advisable. Each determination or other action made or taken pursuant to the Plan, including interpretation
of the Plan, shall be final and conclusive for all purposes and persons. The Administrator shall be entitled to rely conclusively upon all certificates, opinions, and information furnished by any counsel, or other person employed or engaged by the
Administrator with respect to the Plan.

7.3 <u>Indemnification</u>. In addition to such other rights of indemnification as they may have as members of the
Madison Square Garden Entertainment Corp. Investment and Benefits Committee, or as its delegatees, the members of the Madison Square Garden Entertainment Corp. Investment and Benefits Committee and its delegatees shall be indemnified by the Company
against (a) the reasonable expenses (as such expenses are incurred), including attorneys' fees actually and necessarily incurred in connection with the defense of any action, suit or proceeding (or in connection with any appeal therein),
to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan; and (b) against all amounts paid by them in settlement thereof (provided such settlement is approved by
independent legal counsel selected by the Company) or paid by them in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such
member or delegatee is liable for gross negligence or misconduct in the performance of his duties; provided that within 60 days after institution of any such action, suit or proceeding a member or delegatee shall in writing the Company offer the
opportunity, at its own expense, to handle and defend the same.

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7.4 <u>Section</u> <u>409A of the Code</u>. It is intended that the payments and benefits under the
Plan comply with the provisions of Section 409A of the Code. The Plan will be administered and interpreted in a manner consistent with this intent, and any provision that would cause the Plan to fail to satisfy Section 409A of the Code
will have no force and effect until amended to comply therewith (which amendment may be retroactive to the extent permitted by Section 409A of the Code). In addition, for purposes of the Plan, each amount to be paid or benefit to be provided to
the Participant pursuant to the Plan, which constitutes deferred compensation subject to Section 409A of the Code, shall be construed as a separate identified payment for purposes of Section 409A of the Code. The Company shall have no
liability to any Participant, beneficiary or otherwise if the Plan or any amounts paid or payable hereunder are subject to the additional taxes and penalties under Section 409A.

To the extent that any amount payable to the Participant pursuant to the Plan is determined by the Company to constitute "non-qualified deferred compensation" subject to Section 409A of the Code and is payable to the Participant by reason of the Participant's termination of employment (other than death), then if the Participant is a "specified employee" (within the meaning of Section 409A as determined by the Company), such payment shall not be made before the date that is six months after the date of the Participant's termination of employment (or, if earlier than the expiration of such six month period, the date of death). Any amount not paid at the end of such six-month period shall be paid to the Participant in a lump sum on the expiration of such six-month period.

**<u>Article 8. Claims Appeal Procedure</u>**

8.1 <u>Initial Claims</u>. After first discussing any claims a Participant (or anyone claiming through a
Participant) may have under the Plan with the Company's Vice President, Benefits, the Participant may then make a claim under the Plan in writing to the Administrator. The Administrator shall make all determinations concerning such claim. Any
decision by the Administrator denying such claim shall be in writing and shall be delivered to the Participant, or if applicable, anyone who makes claim in respect of the Participant. Such decision shall set forth the reasons for denial in plain
language. Pertinent provisions of the Plan shall be cited and, where appropriate, an explanation as to how the claimant can perfect the claim will be provided. This notice of denial of benefits will be provided within 90 days of the
Administrator's receipt of the claimant's claim for benefits (or within 180 days if special circumstances require an extension of time for processing the claim and if written notice of such extension and special circumstances is given to
the claimant within the initial 90-day period). If the Administrator fails to notify the claimant of its decision regarding the claim within such period, the claim shall be considered denied as of the last day
of such period, and the claimant shall then be permitted to proceed with the appeal as provided in Section 8.2.

8.2 <u>Appeals</u>. A claimant who has been completely or partially denied a benefit shall be entitled to appeal
this denial of his/her claim by filing a written statement of his/her position with the Administrator no later than 60 days after receipt of the written notification of such claim denial. If the claimant does not request a review within such 60-day or 180-day period, he or she shall be barred and estopped from challenging the Administrator's determination.

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The Administrator shall schedule an opportunity for a full and fair review of the issue within 30 days of receipt of the appeal. The decision on review shall set forth specific reasons for the decision, and shall cite specific references to the pertinent Plan provisions on which the decision is based. Following the review of any additional information submitted by the claimant, either through the hearing process or otherwise, the Administrator shall render a decision on the review of the denied claim. The Administrator shall make its decision regarding the merits of the denied claim within 60 days following receipt of the request for review (or within 120 days after such receipt, in a case where there are special circumstances requiring extension of time for reviewing the appealed claim). The Administrator shall deliver the decision to the claimant in writing. If an extension of time for reviewing the appealed claim is required because of special circumstances, written notice of the extension shall be furnished to the claimant prior to the commencement of the extension. If the decision on review is not furnished within the prescribed time, the claim shall be deemed denied on review.

8.3 <u>General</u>. The Administrator may at any time alter the claims procedure set forth above. The claims
procedure set forth in this Article 8 is intended to comply with United States Department of Labor Regulation §2560.503-1 and should be construed in accordance with such regulation. In no event shall the
claims procedure be interpreted as expanding the rights of claimants beyond what is required by United States Department of Labor Regulation §2560.503-1. A claimant must exhaust all administrative
remedies under the Plan prior to bringing an action. No such action may be brought later than three years from the date the claim arose. The Administrator's interpretations, determinations and decisions with respect to any claim shall be made
in its sole discretion based on the Plan and other relevant documents and shall be final and binding on all persons.

**<u>Article 9. Amendment and Termination of Plan</u>**

9.1 <u>Amendment or Termination</u>. The Company intends the Plan to be permanent but reserves the right to amend
or terminate the Plan when, in the sole opinion of the Company, such amendment or termination is advisable. Any such amendment or termination shall be made pursuant to a resolution of the Board or the Compensation Committee of the Board. To the
extent the Company has delegated the authority to amend the Plan to the Committee, any such amendment by the Administrator shall be made by resolution of the Administrator.

9.2 <u>Effect of Amendment or Termination</u>. No amendment or termination of the Plan shall directly or indirectly
reduce the balance of any account held hereunder as of the effective date of such amendment or termination. No amendment, modification, suspension or termination will accelerate distributions unless such acceleration is approved by the Company and
permitted under Section 409A of the Code and the Treasury Regulations and other applicable guidance issued thereunder. A Participant's Deferred Compensation Account shall continue to be credited with gains and losses pursuant to Article 3
of the Plan until the balance of such Deferred Compensation Account has been fully distributed to the Participant or such Participant's beneficiary.

9.3 <u>Employer's Right to Terminate Plan</u>. Any Employer may, at any time, by resolution of the Board or
the Compensation Committee of the Board, terminate participation in the Plan

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with respect to its employees, in accordance with Section 9.2. If the Plan is terminated by fewer than all Employers, the Plan shall continue in effect for employees of the remaining Employers. In the event that an Employer shall, for any reason, cease to exist, the Plan shall terminate with respect to the employees of such Employer, unless a successor organization adopts the Plan and thereby continues their participation.

**<u>Article 10. Miscellaneous</u>**

10.1 <u>Participant's Rights Unsecured</u>. Except as set forth in Section 10.2, the Plan at all times
shall be entirely unfunded and no provision shall at any time be made with respect to segregating any assets of the Company for payment of any distributions hereunder. The right of a Participant or his or her beneficiary to receive a distribution
hereunder shall be an unsecured claim against the general assets of the Company and the Employer, and neither a Participant nor a beneficiary shall have any rights in or against any specific assets of the Company. All amounts credited to Deferred
Compensation Accounts of Participants shall constitute general assets of the Company and may be disposed of by the Company at such time and for such purposes as it may deem appropriate.

10.2 <u>Trust Agreement</u>. Notwithstanding the provisions of Section 10.1, an Employer may, at its
discretion, enter into a trust agreement (" <u>Trust Agreement</u> ") with a bank or trust company located in the continental United States as trustee, whereby the Employer may at its discretion contribute deferrals under the Plan to a trust
(" <u>Trust</u> "). Such Trust Agreement shall be substantially in the form of the model trust agreement set forth in Internal Revenue Service Revenue Procedure 92-64, or any subsequent Internal
Revenue Service Revenue Procedure, and shall include provisions required in such model trust agreement that all assets of the Trust shall be subject to creditors of the Employer in the event of insolvency. To the extent any benefits provided under
the Plan are paid from the Trust, the Employer shall have no further obligation to pay them. If not paid from the Trust, such benefits shall remain the obligation of the Employer or the Company. Notwithstanding the foregoing, no Employer
contributions shall be made to the Trust if doing so would violate the provisions of Section 409A.

10.3 <u>No Guarantee of Benefits</u>. Nothing contained in the Plan shall constitute a guaranty by the Company or
any other person or entity that the assets of the Company shall be sufficient to pay any benefit hereunder.

10.4 <u>No Enlargement of Employee Rights</u>. No Participant or Beneficiary shall have any right to receive a
distribution of contributions made under the Plan except in accordance with the terms of the Plan. Establishment of the Plan shall not be construed to give any Participant the right to be retained in the service of the Company or any Employer.

10.5 <u>Spendthrift Provision</u>. No interest of any person or entity in, or right to receive a distribution under,
the Plan shall be subject in any manner to sale, transfer, assignment, pledge, attachment, garnishment, or other alienation or encumbrance of any kind, nor may such interest or right to receive a distribution be taken, either voluntarily or
involuntarily for the satisfaction of the debts of, or other obligations or claims against, such person or entity, except with respect to claims for alimony, support or separate maintenance.

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10.6 <u>Applicable Law</u>. The Plan shall be construed and administered under the laws of the State of New York,
except to the extent preempted by applicable federal law.

10.7 <u>Incapacity of Recipient</u>. If any person entitled to a distribution under the Plan is deemed by the
Administrator to be incapable of personally receiving and giving a valid receipt for such payment, then, unless and until claim therefor shall have been made by a duly appointed guardian or other legal representative of such person, the
Administrator may provide for such payment or any part thereof to be made to any other person or institution then contributing toward, or providing for the care and maintenance of, such person. Any such payment shall be a payment for the account of
such person and a complete discharge of any liability of the Administrator, the Company, Participating Affiliates and the Plan therefor.

10.8 <u>Corporate Successors</u>. The Plan shall not be automatically terminated by a transfer or sale of assets of
the Company or by the merger or consolidation of the Company into or with any other corporation or other entity, but the Plan shall be continued after such sale, merger or consolidation only if and to the extent that the transferee, purchaser or
successor entity agrees to continue the Plan. In the event that the Plan is not continued by the transferee, purchaser or successor entity, then the Plan shall terminate subject to the provisions of Section 10.2.

10.9 <u>Unclaimed Benefit</u>. Each Participant shall keep the Administrator informed of his or her current address
and the current address of his or her beneficiary. The Administrator shall not be obligated to search for the whereabouts of any person. If the location of a Participant is not made known to the Administrator within three years after the date on
which payment of the Administrator's Deferred Compensation Account may first be made, payment may be made as though the Participant had died at the end of the three-year period. If, within one additional year after such three-year period has
elapsed, or, within three years after the actual death of a Participant, the Administrator is unable to locate any beneficiary of the Participant, then the Administrator shall have no further obligation to pay any benefit hereunder to such
Participant or beneficiary and such benefit shall be irrevocably forfeited.

10.10 <u>Limitations on Liability</u>. Notwithstanding any of the preceding provisions of the Plan, neither the
Company and Participating Affiliates, nor any individual acting as employee or agent of the Company or Participating Affiliates shall be liable to any Participant, former Participant, beneficiary, or any other person for any claim, loss, liability,
or expense incurred in connection with the Plan.

10.11 <u>Withholding Taxes</u>. An Employer shall have the right to deduct from each payment to be made under the
Plan any required withholding taxes.

10.12 <u>Top-Hat Plan</u>. It is the intention of the Company that, to the
extent the Plan is determined to be an employee pension benefit plan subject to ERISA, it shall be considered and interpreted in all respects as an unfunded "top-hat" plan maintained primarily to
provide deferred compensation benefits for "a select group of management or highly compensated employees" within the meaning of Sections 201(2), 301(a)(3), 401(a)(1) and 4021(b)(6) of ERISA.

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10.13 <u>Electronic Election</u>. Any reference herein to an election, designation or other action by a Participant
in writing shall be deemed to include an electronic election, designation or act made on the Internet to the maximum extent permitted by applicable law.

**IN WITNESS WHEREOF**, Madison Square Garden Entertainment Corp. (formerly known as MSGE Spinco, Inc.) has caused this amendment and restatement of the Plan to be executed in its name, by its duly authorized officer, on this [●][th/st] day of [●], 2023 (the "<u>Effective Date</u>").

---

| | |
|:---|:---|
| **MADISON SQUARE GARDEN ENTERTAINMENT CORP.**<br> **(formerly known as MSGE Spinco, Inc.)** | **MADISON SQUARE GARDEN ENTERTAINMENT CORP.**<br> **(formerly known as MSGE Spinco, Inc.)** |
| By: | /s/  |
|  | Name: |
|  | Title: |

---

## Exhibit 10.17

**Exhibit 10.17** 

**CERTAIN CONFIDENTIAL INFORMATION, IDENTIFIED BY BRACKETED ASTERISKS "[\*\*\*\*\*]", HAS BEEN OMITTED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

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**RCPI TRUST,** 

Landlord

**and** 

**RADIO CITY PRODUCTION LLC,** 

Tenant

------

**LEASE** 

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**Premises:** Radio City Music Hall and

Portions of 1270 Avenue of the Americas and

50 Rockefeller Plaza

------

New York, New York

Dated: December 4, 1997

------

**<u>**TABLE OF CONTENTS**</u>**

---

| | |
|:---|:---|
|  ARTICLE 1 BASIC LEASE PROVISIONS | 1 |
|  ARTICLE 2 PREMISES; TERM; RENT | 3 |
|  ARTICLE 3 USE AND OCCUPANCY | 3 |
|  ARTICLE 4 CONDITION OF THE PREMISES | 5 |
|  ARTICLE 5 ALTERATIONS | 5 |
|  ARTICLE 6 FLOOR LOAD | 8 |
|  ARTICLE 7 REPAIRS | 8 |
|  ARTICLE 8 INCREASES IN REAL ESTATE TAXES | 10 |
|  ARTICLE 9 REQUIREMENTS OF LAW | 12 |
|  ARTICLE 10 QUIET ENJOYMENT | 14 |
|  ARTICLE 11 SUBORDINATION | 14 |
|  ARTICLE 12 SERVICES | 16 |
|  ARTICLE 13 INSURANCE; PROPERTY LOSS OR DAMAGE; REIMBURSEMENT | 18 |
|  ARTICLE 14 DESTRUCTION-FIRE OR OTHER CAUSE | 20 |
|  ARTICLE 15 EMINENT DOMAIN | 22 |
|  ARTICLE 16 ASSIGNMENT AND SUBLETTING | 23 |
|  ARTICLE 17 ELECTRICITY | 26 |
|  ARTICLE 18 ACCESS TO PREMISES | 27 |
|  ARTICLE 19 DEFAULT | 28 |
|  ARTICLE 20 REMEDIES AND DAMAGES | 29 |
|  ARTICLE 21 LANDLORD'S RIGHT TO CURE; REIMBURSEMENT | 30 |
|  ARTICLE 22 NO REPRESENTATIONS BY LANDLORD; LANDLORD'S APPROVAL | 31 |
|  ARTICLE 23 END OF TERM | 31 |
|  ARTICLE 24 NO SURRENDER; NO WAIVER | 32 |
|  ARTICLE 25 WAIVER OF TRIAL BY JURY | 32 |
|  ARTICLE 26 INABILITY TO PERFORM | 32 |
|  ARTICLE 27 NOTICES | 33 |
|  ARTICLE 28 RULES AND REGULATIONS | 33 |
|  ARTICLE 29 PARTNERSHIP TENANT | 33 |
|  ARTICLE 30 VAULT SPACE | 34 |
|  ARTICLE 31 LANDLORD'S AGENT | 34 |
|  ARTICLE 32 INDEMNITY | 35 |
|  ARTICLE 33 ADJACENT EXCAVATION; SHORING | 36 |
|  ARTICLE 34 TAX STATUS OF BENEFICIAL OWNERS | 36 |
|  ARTICLE 35 GUARANTY | 36 |
|  ARTICLE 36 RENEWAL OPTION | 36 |
|  ARTICLE 37 RETAIL SPACE RIGHT OF FIRST OFFER | 37 |
|  ARTICLE 38 DISPUTE RESOLUTION PROCEDURE | 39 |
|  ARTICLE 39 MUSIC HALL COVENANTS | 40 |
|  ARTICLE 40 VIP CLUB | 42 |
|  ARTICLE 41 STUDIO APARTMENT | 43 |
|  ARTICLE 42 MISCELLANEOUS | 43 |

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i

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<u>EXHIBITS:</u> 

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| |
|:---|
| A-1 – MUSIC HALL FLOOR PLAN |
| A-2 – 1270 SPACE FLOOR PLAN |
| A-3 – 50 ROCK SPACE FLOOR PLAN |
| A-4 – RETAIL SPACE #1 |
| A-5 – OFFER SPACE #1 |
| A-6 – OFFER SPACE #2 |
| A-7 – INTENTIONALLY OMITTED |
| A-8 – DISPLAY WINDOW SPACE |
| B – DEFINITIONS |
| C – NBC RESTRICTIONS |
| D-1 – CHILLED WATER SPECIFICATION FOR 1270 AVENUE OF THE AMERICAS |
| D-2 – 1270 SPACE CHILLED WATER SPECIFICATION |
| E – INTENTIONALLY OMITTED |
| F – RETAIL OFFER SPACE COVENANTS |
| G – STUDIO APARTMENT FLOOR PLAN |
| H – RULES AND REGULATIONS |

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<u>SCHEDULES:</u>

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| | |
|:---|:---|
| 1 | FIXED RENT (EXCEPT FOR RETAIL SPACE) FROM 10/98-2/01 |
| 2 | PERCENTAGE RENT |
| 3 | RETAIL OPERATING EXPENSE PAYMENT |
| 4 | LANDLORD'S MUSIC HALL PROPERTY |
| 5 | LANDLORD'S STUDIO APARTMENT PROPERTY |
| 6 | GUARANTY |

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ii

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INDEX OF DEFINED TERMS

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| | |
|:---|:---|
| TERM | SECTION |
| 50 Rock Space | 1 |
| 1270 Space | 1 |
| Abatement Notice | 12.5 |
| Acceptance Notice | 37.1 |
| Acceptance Period | 37.1 |
| Actual Performances | 39.10(a) |
| Additional Rent | 1 |
| Adverse Event | 34 |
| Ancillary Buildings | 1 |
| Ancillary Space Alterations | 5.1(b) |
| Annual Statement | Schedule 2(b)(ii) |
| Appraiser | 37.6 |
| Base Operating Year | Schedule 3(a)(ii) |
| Base Tax Factor | 8.1(a) |
| Base Tax Year | 1 |
| Basic 1270 Space | 3.2(b) |
| Buildings | 1 |
| Cash Flow | 16.5(a) |
| Center Tax Area | 8.1(b) |
| Central Plant | Exhibit D-1 |
| Club | 40.1 |
| Cost of Operation and Maintenance | Schedule 3(a)(ii) |
| Commencement Date | 1 |
| Commission | 5.1(f) |
| Condominium Declaration | 11.3 |
| Cost Per Kilowatt Hour | 17.1(a) |
| Declaration | 3.4 |
| Decorative Alterations | 5.1(b) |
| Dispute Resolution Procedure | 38.1 |
| DOJ Letter | 9.1(d) |
| Entertainment Space | Schedule 1(d)(i) |
| Essential Service | 12.5 |
| Event of Default | 19.1 |
| Execution Date | 3.2(b) |
| Expanded Restricted Area | 39.10(b)(ii) |
| Expiration Date | 1 |
| [\*\*\*\*\*] | [\*\*\*\*\*] |
| Fixed Rent | 1 |
| Garden | 1 |
| Grand Tour | 3.2(a) |

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iii

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**INDEX OF DEFINED TERMS** 

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| | |
|:---|:---|
| **TERM** | **SECTION** |
| Gross Revenues | Schedule 1(d)(i) |
| HVAC | 3.2(c) |
| Initial Expiration Date | 1 |
| Insured Parties | 13.1(c) |
| IP Agreement | 3.3(c) |
| IP Rights | 3.3(c) |
| Landlord | preamble |
| Landlord's Agent | 1 |
| Landlord's Determination | 37.1 |
| Landlord's Music Hall Property | 5.3(c) |
| Landlord's Statement | 8.1(c) |
| Lease Modification | 3.2(a) |
| Losses | 32.1(b) |
| Mechanical Space | 3.2(b) |
| Mechanical Space Availability Date | 3.2(c) |
| Mechanical Space Outside Delivery Date | 3.2(c) |
| Members | 40.1 |
| MSG | 5.1(d) |
| Music Hall | 1 |
| Music Hall Alterations | 5.1(a) |
| Net Worth | 16.5(a) |
| New Tenant | 23.2(b) |
| Non-Disturbance Agreement | 11.5 |
| O.E. Share | Schedule 3(a)(i) |
| Off Period | Exhibit D-1(a) |
| Offer Notice | 37.1 |
| Offer Option | 37.1 |
| Offer Space | 37.1 |
| Offer Space Commencement Date | 37.4 |
| Overtime Periods | 12.1(a) |
| Partners | 29.1 |
| Partnership Tenant | 29.1 |
| Percentage Rent | Schedule 2(a) |
| Percentage Rent Rate | Schedule 2(a) |
| Performance Failure | 39.10(a) |
| Permitted Capacity | 17.1(a) |
| Permitted Uses | 1 |
| Policy | 13.1(c) |
| Premises | 1 |
| Quarterly Statement | Schedule 2(b)(i) |
| RCMHPI | 3.2(a) |

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iv

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INDEX OF DEFINED TERMS

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| | |
|:---|:---|
| TERM | SECTION |
| RCP | 3.2(a) |
| RCPI | 3.2(a) |
| Refrigeration Plant | 7.2(b) |
| Related Entity | 16.5(a) |
| Renewal Notice | 36.1 |
| Renewal Term | 36.1 |
| Renewal Term Commencement Date | 36.1 |
| Rent | 1 |
| Rent Commencement Date | 1 |
| Restoration Opinion | 14.2 |
| Restricted Area | 39.10(b)(i) |
| Restrictions | 3.4 |
| Retail HVAC Work | 3.2(c) |
| Retail Operating Expense Payment | 2.5 |
| Retail Space | 1 |
| Retail Space #1 | 1 |
| RGI | 3.3(c) |
| Specialty Alterations | 5.3(a) |
| Studio Apartment | 41.1 |
| Studio Apartment Non-Removable Property | 41.2 |
| Studio Apartment Removable Property | 41.2 |
| Tax Factor | 8.1(e) |
| Tax Year | 8.1(f) |
| Taxes | 8.1(d) |
| Tenant | preamble |
| Tenant's 50 Rock Area | 1 |
| Tenant's 1270 Area | 1 |
| Tenant's Area | 1 |
| Tenant's Determination | 37.6 |
| Tenant's Music Hall Area | 1 |
| Tenant's Retail Space Area | 1 |
| Tenant's Tax Payment | 8.2(a) |
| Term | 1 |
| Theater Use Day | 39.10(a) |
| Transfer | 42.2 |
| Transfer of Control | 16.5(a) |

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v

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***<u>LEASE</u>***

**THIS LEASE** is made as of the 4th day of December, 1997, between **RCPI TRUST**, a Delaware business trust having an office c/o Tishman Speyer Properties, L.P., 45 Rockefeller Plaza, New York, New York 10111 ("<u>Landlord</u>"), and **RADIO CITY PRODUCTIONS LLC**, a Delaware limited liability company having an office at 1260 Avenue of the Americas, New York, New York 10020 ("<u>Tenant</u>").

Landlord and Tenant hereby covenant and agree as follows:

**ARTICLE 1** 

**<u>BASIC LEASE PROVISIONS</u>**

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| | |
|:---|:---|
| **MUSIC HALL** | The building, fixtures, equipment and other improvements and appurtenances now located or hereafter erected, located or placed upon the land on which Radio City Music Hall is situated, substantially as shown on <u>Exhibit A-1</u>, but excluding the building, fixtures, equipment and other improvements and appurtenances known as 1270 Avenue of the Americas. |
| **1270 SPACE** | The mezzanine level of 1270 Avenue of the Americas, substantially as shown on <u>Exhibit A-2</u>. |
| **50 ROCK SPACE** | A portion of the concourse level and a portion of the subconcourse level of 50 Rockefeller Plaza, substantially as shown on <u>Exhibit A-3</u>. |
| **RETAIL SPACE #1** | A portion of the ground floor of 1270 Avenue of the Americas as well as storage space located on the 5th floor of 1270 Avenue of the Americas, substantially as shown on <u>Exhibit A-4</u>. |
| **RETAIL SPACE** | Retail Space #1 and any additional retail space leased by Tenant pursuant to Article 37 if, as and when such retail space is so leased. |
| **ANCILLARY SPACE** | The 1270 Space, the 50 Rock Space and the Retail Space, collectively. |
| **PREMISES** | The Music Hall and the Ancillary Space, collectively. |
| **BUILDINGS** | The Music Hall, 1270 Avenue of the Americas and 50 Rockefeller Plaza, individually and collectively. |
| **ANCILLARY BUILDINGS** | 1270 Avenue of the Americas and 50 Rockefeller Plaza, collectively. |
| **EXECUTION DATE** | December 4, 1997. |
| **COMMENCEMENT DATE** | March 1, 1998. |
| **RENT COMMENCEMENT DATE** | As to the Music Hall, the 1270 Space and the 50 Rock Space, October 1, 1998 and as to Retail Space #1, the Commencement Date. |
| **INITIAL EXPIRATION DATE** | February 28, 2023. |
| **EXPIRATION DATE** | February 28, 2023, or if the Term shall be extended in accordance with <u>Article 36</u>, February 28, 2033. |
| **TERM** | The period commencing on the Commencement Date and ending on the Expiration Date or sooner termination of this Lease as provided herein. |

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| | |
|:---|:---|
| **PERMITTED USES** | (a) In the case of the Music Hall, activities consistent with the character and reputation of the Music Hall and the Center (as hereinafter defined) as a first-class, mixed use, urban office, retail and entertainment center consistent with the nature of activities conducted at the Music Hall during the 5-year period immediately preceding the Execution Date, including production, management, presentation and exhibition of motion pictures, live stage plays (musical and otherwise), concerts, recitals, readings, parties, broadcasts, live or taped television shows and other live or taped presentations, theatrical or otherwise, industrial shows, conventions, the retail sale of food, beverages, including alcoholic beverages (to the extent permitted by applicable Requirements) and merchandise associated with all of the foregoing uses, tours of the Premises, and ancillary office uses; (b) in the case of the 1270 Space, a first-class club with a capacity to serve first-class, high quality food and beverages, including alcoholic beverages (to the extent permitted by applicable Requirements) to its patrons (which may include a full kitchen) and which shall be designed to cater primarily to patrons of the Music Hall and to operate in conjunction with the activities permitted to take place therein as provided in subparagraph (a) above and ancillary office uses; (c) in the case of the 50 Rock Space, uses ancillary to the Music Hall, including (i) a back stage facility in connection with Music Hall activities and (ii) storage space and (d) in the case of Retail Space #1, (i) the sale of retail merchandise related to (A) the Music Hall and events staged at the Music Hall and (B) Madison Square Garden (the "<u>Garden</u>") and events staged at the Garden (which may include merchandise bearing the name and likeness of professional athletic teams whose so-called "home games" are played at the Garden), (ii) the sale of tickets for tours of the Music Hall, (iii) the sale at retail of candy, newspaper and magazines, (iv) the sale of merchandise which prominently features New York City; provided that the merchandise described in this clause (iv) may not account for more than 10% of the exhibition area in the retail portion of Retail Space #1 and (v) with respect to the storage portion of Retail Space #1, solely storage use. |
| **BASE TAX YEAR** | The Tax Year commencing on July 1, 1998 and ending on June 30, 1999. |
| **TENANT'S AREA** | 569,063 rentable square feet. |
| **TENANT'S MUSIC HALL AREA** | 548,250 rentable square feet. |
| **TENANT'S 1270 AREA** | 10,000 rentable square feet. |
| **TENANT'S 50 ROCK AREA** | ± 10,000 rentable square feet. |
| **TENANT'S RETAIL SPACE AREA** | 813 rentable square feet, which may be increased pursuant to <u>Article 37</u>. |
| **FIXED RENT** | (a) For the Music Hall, the 1270 Space and the 50 Rock Space, [\*\*\*\*\*] per annum ([\*\*\*\*\*] per month) for the period commencing on the Rent Commencement Date and ending on the Initial Expiration Date and (b) for Retail Space #1, (i) [\*\*\*\*\*] per annum ([\*\*\*\*\*] per month) for the period commencing on the Commencement Date and ending on the day immediately preceding the 5<sup>th</sup> anniversary of the Commencement Date, both dates inclusive; (ii) [\*\*\*\*\*] per annum ([\*\*\*\*\*] per month) for the period commencing on the 5<sup>th</sup> anniversary of the Commencement Date and ending on the day immediately preceding the 10<sup>th</sup> anniversary of the Commencement Date, both dates inclusive; (iii) [\*\*\*\*\*] per annum ([\*\*\*\*\*] per month) for the period commencing on the 10<sup>th</sup> anniversary of the Commencement Date and ending on the day immediately preceding the 15<sup>th</sup> anniversary of the Commencement Date, both dates inclusive; (iv) [\*\*\*\*\*] per annum ([\*\*\*\*\*] per month) for the period commencing on the 15<sup>th</sup> anniversary of the Commencement Date and ending on the day immediately preceding the 20<sup>th</sup> anniversary of the Commencement Date, both dates inclusive; and (v) [\*\*\*\*\*] per annum ([\*\*\*\*\*] per month) for the period commencing on the 20<sup>th</sup> anniversary of the Commencement Date and ending on the Initial Expiration Date. |

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| | |
|:---|:---|
| **ADDITIONAL RENT** | All sums other than Fixed Rent payable by Tenant to Landlord under this Lease, including Tenant's Tax Payment, the Retail Operating Expense Payment, Percentage Rent, payments for failing to comply with, and as set forth in, <u>Section 39.10</u>, late charges, overtime or excess service charges and other charges, and interest and other costs related to Tenant's failure to perform any of its obligations under this Lease. |
| **RENT** | Fixed Rent and Additional Rent, collectively. |
| **LANDLORD'S AGENT** | Tishman Speyer Properties, L.P., or any other Person designated by Landlord from time to time as Landlord's Agent. |
| **GUARANTOR** | Madison Square Garden, L.P. ("<u>MSG</u>") or any transferee pursuant to a Transfer of Control (as defined in <u>Section 16.5</u>) which shall satisfy the requirements set forth in <u>Article 35</u>. |

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All capitalized terms used in the text of this Lease without definition are defined in this <u>Article 1</u> or in <u>Exhibit B</u>. In the event of any inconsistency between a capitalized term defined in the text of this Lease and the definition contained in this Article 1, the text of this Lease shall control.

**ARTICLE 2** 

**<u>PREMISES; TERM; RENT</u>**

Section 2.1 **<u>Lease of Premises</u>**. Subject to the terms of this Lease, Landlord leases to Tenant and Tenant leases from Landlord the Premises for the Term.

Section 2.2 **<u>Payment of Rent</u>**. Tenant shall pay to Landlord, without notice or demand, and without any set-off, counterclaim, abatement or deduction whatsoever, except as may be expressly set forth in this Lease, in lawful money of the United States by wire transfer of funds to Landlord's account, as designated by Landlord, or, at Landlord's option, by check drawn upon a bank reasonably approved by Landlord: (i) Fixed Rent in equal monthly installments, in advance, on the first day of each calendar month during the Term, commencing on the Rent Commencement Date and (ii) Additional Rent, at the times and in the manner set forth in this Lease. Notwithstanding the foregoing, provided no Event of Default shall have occurred and be continuing, during the period beginning on October 1, 1998 and ending on February 28, 2001, Tenant shall pay Fixed Rent with respect to the Music Hall, the 1270 Space and the 50 Rock Space in accordance with <u>Schedule 1</u> annexed hereto.

Section 2.3 **<u>Interest</u>**. If Tenant shall fail to pay any installment or other payment of Rent within three (3) days after the same shall be due, interest shall accrue on such installment or payment as a late charge, from the date such installment or payment became due until the date paid, at the Interest Rate.

Section 2.4 **<u>Percentage Rent</u>**. In addition to Fixed Rent, Tenant agrees to pay to Landlord as Additional Rent a percentage of Tenant's "Gross Revenues" in accordance with the terms and conditions set forth on <u>Schedule 2</u> annexed hereto.

Section 2.5 **<u>Retail Space #1 Operating Expenses</u>**. Tenant shall pay to Landlord as Additional Rent an amount (the "<u>Retail Operating Expense Payment</u>") payable in accordance with the terms and conditions set forth on <u>Schedule 3</u> annexed hereto.

**ARTICLE 3** 

**<u>USE AND OCCUPANCY</u>**

Section 3.1 (a) **<u>Permitted Uses</u>**. Tenant shall use and occupy the Premises for the Permitted Uses and for no other purpose. Tenant shall not use or occupy or permit the use or occupancy of any part of the Premises in a manner constituting a Prohibited Use. If Tenant uses the Premises for a purpose which constitutes a Prohibited Use or violates any Requirement, or which causes the Buildings to be in violation of any Requirement, Tenant shall promptly discontinue such use upon notice of such violation. If, upon notice to Tenant, Landlord asserts that Tenant or any Tenant Party is using the Premises for a Prohibited Use and Tenant in good faith contests such assertion, then Tenant and/or such Tenant Party shall have the right to continue to use the Premises for such contested use while the matter shall be resolved by the Dispute Resolution Procedure provided for in <u>Article 38</u>, provided that if Landlord, in its good faith judgment, deems that such Prohibited Use shall violate any Requirement or materially and adversely affect any of the Buildings or the

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occupancy of any tenants in the Buildings, Tenant shall discontinue such Prohibited Use immediately upon receipt from Landlord of notice to such effect unless and until such arbitration shall be determined in Tenant's favor.

(b) **<u>Licenses and Permits</u>**. Tenant, at its expense, shall obtain and at all times maintain and comply with the terms and conditions of all licenses and permits required for the lawful conduct of the Permitted Uses in the Premises and for the operation of the Refrigeration Plant in the Music Hall. Landlord shall reasonably cooperate with Tenant in connection with Tenant's obtaining such licenses and permits and Tenant shall pay to Landlord all of Landlord's actual, reasonable, third party, out of pocket costs and expenses with respect thereto.

Section 3.2 **<u>Delivery of Premises</u>**.

(a) **<u>Music Hall and Retail Space #1</u>**. Tenant hereby acknowledges and agrees that an Affiliate of Tenant, Radio City Productions, Inc. ("<u>RCPI</u>"), currently occupies (i) the Music Hall pursuant to a lease dated July 1, 1982 between Radio City Music Hall Productions, Inc. ("<u>RCMHPI</u>") and Rockefeller Center Properties ("<u>RCP</u>") as amended by the Lease Modification Agreement, dated as of July 17, 1996 by and between RCP, RCMHPI and The Grand Tour, LLC ("<u>Grand Tour</u>") (the "<u>Lease Modification</u>") and (ii) Retail Space #1 pursuant to a lease dated September 26, 1994 between RCMHPI and RCP, as amended by (A) Supplemental Indenture, dated as of October 1, 1994 by and between RCP and RCMHPI, (B) Assignment with Consent and Release, dated as of December 8, 1994 between RCMHPI, Grand Tour and RCP, (C) Supplemental Indenture, dated January 20, 1995 by and between RCMHPI and RCP, (D) Supplemental Indenture, dated January 22, 1996 by and between RCP and Grand Tour and (E) the Lease Modification. Accordingly, Landlord shall be deemed to have delivered possession and Tenant shall be deemed to have accepted possession of the Music Hall and Retail Space #1 for all purposes on the Commencement Date.

(b) **<u>1270 Space</u>**. The 1270 Space, including the mechanical room located in the 1270 Space as shown on <u>Exhibit A-2</u> (the "<u>Mechanical Space</u>") shall be delivered to Tenant on the date which is the later of (i) the Commencement Date and (ii) the date which is 120 days following the Execution Date (the "<u>1270 Delivery Date</u>"). If, for any reason whatsoever, there shall be a delay in the delivery of possession of the 1270 Space to Tenant, neither Landlord nor Landlord's Agent shall have any liability for such delay and the Rent Commencement Date shall not be affected thereby, except that (A) for each day that Landlord fails to deliver the 1270 Space following the 1270 Delivery Date, the Rent Commencement Date (with respect to the 1270 Space only) shall be postponed by one (1) day; provided that such 1-day postponement shall not apply to the extent that any such delay in delivery was due to a Tenant Delay and (B) for each day that Landlord fails to deliver the 1270 Space following the 60th day after the 1270 Delivery Date, then the Rent Commencement Date (with respect to the 1270 Space only) shall be postponed, in addition to the postponement under clause (A) above, by one (1) additional day; provided that such additional 1-day postponement shall not apply to the extent that any such delay in delivery was due to a Tenant Delay or an Unavoidable Delay. For purposes hereof, the Fixed Rent attributable to the 1270 Space shall be computed at the rate of [\*\*\*\*\*] per square foot per annum. Any installations and equipment remaining in the Mechanical Space after the 1270 Delivery Date shall be deemed abandoned by Landlord and Tenant may, at its option, either retain or dispose of such equipment. If the date on which Landlord anticipates delivering the 1270 Space to Tenant is later than the 1270 Delivery Date, Landlord shall provide Tenant with not less than five (5) Business Days' notice of the date (the "<u>1270 Space Availability Date</u>") on which Landlord anticipates delivering possession of the 1270 Space to Tenant. If such 1270 Space Availability Date is postponed, Landlord shall notify Tenant and shall specify in such notice the new anticipated 1270 Space Availability Date.

(d) **<u>Section 223-a</u>**. The provisions of this Article are intended to constitute "an express provision to the contrary" within the meaning of <u>Section 223-a</u> of the New York Real Property Law or any successor Requirement.

Section 3.3 **<u>Use of Building Name</u>**. (a) Neither Tenant nor any occupant of the Premises shall use the phrase "Rockefeller Center", or any logo or the image of any recognizable portion of Rockefeller Center, for any purpose whatsoever, including as or for any corporate, firm or trade name, trademark, service mark, internet domain name or other designation of source or origin of any goods or services, or designation or description for goods or services except as provided in <u>Section 3.3(c)</u> below. The use of the name "The Associated Press Building", as a designation of the building located at 50 Rockefeller Plaza, has been reserved exclusively for the use of The Associated Press. Tenant agrees that it will not use the name "The Associated Press Building", or any simulation or abbreviation thereof, as an address either on stationery, by listings in the telephone book, or in other printed form or publication or in advertising matter of any sort.

(b) Tenant covenants and agrees that Tenant shall never change the name of the Music Hall from "Radio City Music Hall" without Landlord's prior written consent, which may be withheld in its sole and absolute discretion.

(c) Tenant warrants and represents that it, directly or indirectly, owns (subject to completion of registration thereof which Tenant shall diligently pursue) all of the rights held by "Licensor" under that certain intellectual property agreement (the "<u>IP Agreement</u>") between Rockefeller Group, Inc. ("<u>RGI</u>") and Landlord dated July 17, 1996 relating to the "Radio City Marks" and "Radio City Music Hall Marks" (as said terms are therein defined) originally held by RGI and all of RGI's interest in the "Radio City Marks" and "Radio City

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Music Hall Marks." Tenant agrees to retain, or caused to be retained, all of its rights in the Radio City Music Hall Marks and all of its rights under the IP Agreement relating to such Radio City Music Hall Marks (collectively, the "<u>IP Rights</u>") for the Term; provided, however, that upon the assignment of this Lease to any party subject to and in accordance with the terms of <u>Article 16</u> hereof, Tenant shall license, or shall cause to be licensed, the IP Rights to any party to whom it assigns this Lease for the Term. Landlord as licensee under the IP Agreement, hereby acknowledges and agrees that (i) Tenant has, directly or indirectly, acquired all of RGl's rights as licensor under the IP Agreement, and (ii) all references in the IP Agreement to "Radio City Music Hall Productions, Inc." or "RCMHPI" as the tenant of the Music Hall shall be deemed to refer to Tenant. In any of Tenant's print advertising with respect to the Music Hall and events scheduled to take place in the Music Hall which shall exceed one half of one page, Tenant shall prominently utilize the Radio City Music Hall Marks and identify the location "at Rockefeller Center," and/or "at Radio City Music Hall" subject to and in accordance with the terms of the IP Agreement.

Section 3.4 **<u>Broadcasting Restrictions</u>**. Landlord has entered into a Declaration of Covenants and Restrictions with National Broadcasting Company, Inc., dated as of July 17, 1996, a memorandum of which has been recorded in the Office of the Register of the City of New York, New York County (the "<u>Declaration</u>"), pursuant to which Landlord agreed to include, in all leases, licenses and occupancy agreements for space in the Center entered into from and after the date of the Declaration, certain restrictions on the ability of tenants, licensees and other occupants under such agreements to conduct, allow or permit certain broadcast and related activities in the Center (the "<u>Restrictions</u>"). A copy of the Restrictions is attached to this Lease as <u>Exhibit C</u>. Tenant agrees that it shall not take or fail to take, or permit, cause or allow to be taken, any action, and shall not enter into any arrangement, which would violate or cause a violation of the Restrictions.

**ARTICLE 4** 

**<u>CONDITION OF THE PREMISES</u>**

Section 4.1 **<u>Condition</u>**. Tenant has inspected the Premises and agrees (i) to accept possession of the Premises in the "as is" condition existing on the Commencement Date, (except with respect to the 1270 Space, which shall be in the "as is" condition existing on the date possession of such space is delivered to Tenant in accordance with the terms of this Lease), (ii) that neither Landlord nor Landlord's agents have made any representations or warranties with respect to the Premises or the Buildings except as expressly set forth herein, and (iii) Landlord has no obligation to perform any work, supply any materials, incur any expense or make any alterations or improvements to the Premises to prepare the Premises for Tenant's occupancy, except that Landlord shall, at Tenant's expense, and subject to the other terms of this Lease, cooperate with Tenant in connection with Tenant's bringing any required utilities to the Ancillary Space that are not currently available to such Ancillary Space. Tenant's continued occupancy of the Music Hall and Retail Space #1, and Tenant's taking possession of any part of the 1270 Space or the 50 Rock Space shall be conclusive evidence, as against Tenant, that (A) Tenant has accepted possession of the Premises in their then current condition and (B) the Premises are in a good and satisfactory condition as required by this Lease. With respect to Retail Space #1, Tenant acknowledges that it will be required to replace the HVAC system serving such space from and after the Execution Date because the equipment currently serving such space and located in the 1270 Space shall be disconnected and no longer in service. Nothing contained herein shall be deemed to relieve Landlord of its obligations during the Term under <u>Article 7</u> hereof.

**ARTICLE 5** 

**<u>ALTERATIONS</u>**

Section 5.1 (a) **<u>Tenant's Music Hall Alterations</u>**. Except as hereinafter provided, Tenant shall not make any alterations, additions or other physical changes in or about the Music Hall, including any alteration performed pursuant to <u>Section 9.1(d)</u> (collectively, "<u>Music Hall Alterations</u>"), without Landlord's prior consent, provided that Landlord shall not unreasonably withhold or condition such consent except in the case of Music Hall Alterations affecting the exterior of the Music Hall. Notwithstanding the foregoing, Landlord's consent shall not be required for Music Hall Alterations which (i) are non-structural and do not affect the Refrigeration Plant (as defined in <u>Section 7.2(b)</u>) or, in any material respect, an Independent System, (ii) are performed only by contractors approved by Landlord, which approval shall not be unreasonably withheld or delayed, to perform such Music Hall Alterations, (iii) affect only the Music Hall and are not visible from outside the Music Hall, (iv) do not affect the certificate of occupancy issued for the Music Hall or the 1270 Space, (v) are consistent with the then design, construction and equipment of the Music Hall and the Center, (vi) do not affect the Music Hall's life safety system, (vii) do not adversely affect any service furnished by Landlord in connection with the operation of the Music Hall or the Center, (viii) do not affect the exterior or windows of the Music Hall and (ix) are in compliance with all Requirements.

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(b) **<u>Tenant's Ancillary Space Alterations</u>**. Tenant shall not make any alterations in or about the Ancillary Space ("<u>Ancillary Space Alterations</u>") (other than Ancillary Space Alterations which are decorative in nature such as painting, wall coverings and floor coverings, collectively, "<u>Decorative Alterations</u>"), without Landlord's prior consent, provided Landlord will not unreasonably withhold or condition its consent to Ancillary Space Alterations affecting the Ancillary Space so long as such Ancillary Space Alterations (i) do not adversely affect any part of the Ancillary Buildings (including the Building Systems) other than the Ancillary Space, (ii) are performed only by contractors approved by Landlord, which approval shall not be unreasonably withheld or delayed, to perform such Ancillary Space Alterations in accordance with this Article, except that, as to the life safety system, Tenant shall use only Landlord's designated contractor, (iii) do not affect the certificate of occupancy issued for either of the Ancillary Buildings or the Ancillary Space except to the extent necessary to permit the Permitted Uses, (iv) are consistent with the then design, construction and equipment of the Ancillary Buildings and the Center, (v) do not adversely affect any service furnished by Landlord in connection with the operation of the Buildings or the Center, (vi) do not affect the exterior or windows of the Ancillary Buildings or the window treatments on such windows, and (vii) are in compliance with all Requirements. Tenant's requests for Landlord's approval of contractors under this <u>Section 5.1(b)</u> or engineers under <u>Section 5.1(d)</u> or architects under <u>Section 5.2</u> which Tenant seeks to employ shall be deemed granted if such request is not denied within 15 days after request therefor is made in writing to Landlord, together with such information about such contractor or engineer or architect as Landlord may reasonably request; provided that such request shall make specific reference to this <u>Section 5.1(b)</u> and <u>Sections 5.1(d)</u> or <u>Section 5.2</u>, if applicable, and state in bold face type as follows: **FAILURE TO GRANT OR DENY THIS REQUEST WITHIN 15 DAYS HEREOF SHALL RESULT IN A DEEMED APPROVAL.**

(c) Tenant's requests for Landlord's approval of Alterations shall be deemed granted if (i) such requests are not denied within 20 days after request therefor is made in writing to Landlord and all information and materials required under <u>Section 5.1(d)</u> below have been provided to Landlord and (ii) a second written request for approval is submitted at the close of such 20-day period, and such request is not denied within five (5) Business Days after Landlord's receipt thereof; provided that such request shall make specific reference to this <u>Section 5.1(c)</u> and state in bold face type as follows: **FAILURE TO GRANT OR DENY THIS REQUEST FOR APPROVAL WITHIN FIVE BUSINESS DAYS HEREOF SHALL RESULT IN A DEEMED APPROVAL.**

(d) **<u>Plans and Specifications</u>**. Prior to making any Alterations, Tenant, at its expense, shall (i) submit to Landlord for its information (and approval to the extent herein provided), detailed plans and specifications, if customarily prepared for similar Alterations or required in order to file for any required governmental permits (including layout, architectural, mechanical, electrical, plumbing, sprinkler and structural drawings), of each proposed Alteration (other than Decorative Alterations with respect to the Ancillary Space), (ii) with respect to an Alteration affecting any Independent System, submit proof that such Alteration has been designed by an engineer approved by Landlord, which approval shall not be unreasonably withheld or delayed, for the affected Independent System, (iii) with respect to an Alteration affecting a Building System, submit the plans and specifications for review by Landlord's designated building engineer at Tenant's cost, (iv) obtain all permits, approvals and certificates required by any Governmental Authorities, and (v) furnish to Landlord duplicate original policies or certificates of worker's compensation (covering all persons to be employed by Tenant, and Tenant's contractors and subcontractors in connection with such Alteration) and comprehensive public liability (including property damage coverage) insurance and Builder's Risk coverage (issued on a completed value basis) all in such form, with such companies, for such periods and in such amounts as Landlord may reasonably require, naming Landlord, the Indemnitees and any other parties designated by Landlord as additional insureds. Upon Tenant's request, Landlord shall reasonably cooperate with Tenant in obtaining any permits, approvals or certificates required to be obtained by Tenant in connection with any permitted Alteration (if the provisions of the applicable Requirement require that Landlord join in such application), provided that Tenant shall reimburse Landlord for any actual, third party, out of pocket cost, expense or liability in connection therewith. Tenant's requests for Landlord's approval of an engineer shall be deemed granted if not denied within 15 days after written request therefor to the extent provided in <u>Section 5.1(b)</u>.

(e) **<u>Governmental Approvals; Plans</u>**. Upon completion of any Alterations, Tenant, at its expense, shall promptly obtain certificates of final approval of such Alterations required by any Governmental Authority, and shall furnish Landlord with copies thereof, together with "as-built" plans and specifications for such Alterations (other than Decorative Alterations) prepared on a Computer Assisted Drafting and Design System (or such other system or medium as Landlord may accept, such acceptance not to be unreasonably withheld or delayed) using naming conventions issued by the American Institute of Architects in June 1990 (or such other naming convention as Landlord may accept, such acceptance not to be unreasonably withheld or delayed) and magnetic computer media of such record drawings and specifications. translated into DXF format or another format acceptable to Landlord.

(f) **<u>Landmarks Preservation</u>**. **Tenant is hereby notified that the Premises are subject to the jurisdiction of the Landmarks Preservation Commission (the "<u>Commission</u>"). In accordance with Sections 25-305, 25-306, 25-309 and 25-310 of the Administrative Code of the City of New York and the rules set forth in Title 63 of the Rules of the City of New York, any demolition, construction, reconstruction, alterations or minor work as described in such sections and such rules may not be commenced within or at the Premises without prior written approval of the Commission. Tenant is notified that such demolition, construction, reconstruction, alterations or minor work includes, but is not limited to, (a) work to the exterior of**

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 **the Premises involving windows, signs, awnings, flagpoles, banners and storefront alterations and (b) interior work to the Premises that (i) requires a permit from the Department of Buildings or (ii) changes, destroys or affects an interior architectural feature of an interior landmark or an exterior architectural feature of an improvement that is a landmark or located on a landmark site or in a historic district.**

Section 5.2 **<u>Manner and Quality of Alterations</u>**. All Alterations shall be performed (i) in a good and workerlike manner and Tenant shall use commercially reasonable efforts to have the same performed free from defects, (ii) in accordance with the plans and specifications as required under <u>Section 5.1</u>, and by contractors approved by Landlord, such approval not to be unreasonably withheld or delayed, (iii) other than Decorative Alterations, under the supervision of a licensed architect approved by Landlord, such approval not to be unreasonably withheld or delayed, and (iv) in compliance with all Requirements, the terms of this Lease, all reasonable procedures and regulations then prescribed by Landlord for work performed in the Buildings, and the Rules and Regulations. All materials and equipment to be used in the Premises shall be of first quality and, with respect to the Ancillary Space, at least equal to the applicable standards for the Ancillary Buildings then established by Landlord and, with respect to the Music Hall, consistent with the quality and character of the Music Hall, and no such materials or equipment shall be subject to any lien or other encumbrance except for materials or equipment typically financed in such manner consistent with good industry practice. In no event shall Landlord's Music Hall Property be subjected to any lien or encumbrance by Tenant. Tenant's request for Landlord's approval of an architect shall be deemed granted if not denied within 15 days after written request therefor to the extent Tenant follows the procedures set forth in <u>Section 5.1(b)</u>.

Section 5.3 (a) **<u>Removal of Alterations and Tenant's Property</u>**. All Alterations in the Premises shall, except as expressly provided below, remain upon and be surrendered with the Premises, on the Expiration Date or sooner termination of the Term. Landlord shall specify, at the time Tenant submits plans and specifications to Landlord, those Alterations which are specialty alterations ("<u>Specialty Alterations</u>") which shall mean kitchens, stages (other than the stages existing in the Premises on the Execution Date) and any other Alterations which in Landlord's good faith judgment would not be usable by a subsequent tenant of the Music Hall using the Music Hall as an entertainment facility, which Landlord may, at its election (made at the time of Landlord's approval of such Specialty Alterations), require Tenant to remove on or before the Expiration Date or earlier termination of this Lease. Upon the Expiration Date or earlier termination of this Lease, Tenant, at Landlord's request, shall remove any of such Specialty Alterations (which Landlord shall have elected to have Tenant so remove in accordance with this <u>Section 5.3(a)</u>) and all of Tenant's Property and shall repair and restore, in a good and workerlike manner, any damage to the Premises or the Buildings caused by Tenant's removal of such Specialty Alterations or Tenant's Property, and if Tenant fails to do so, Tenant shall reimburse Landlord, on demand, for Landlord's cost of repairing and restoring such damage. Any Alterations or Tenant's Property not so removed at Landlord's request shall be deemed abandoned and Landlord may retain same as Landlord's property, or dispose of same, and repair and restore any damage caused thereby, at Tenant's cost and without accountability to Tenant.

(b) **<u>Landlord's Music Hall Property</u>**. The items set forth on <u>Schedule 4</u> annexed hereto ("<u>Landlord's Music Hall Property</u>") are owned by Landlord and may be used by Tenant during the Term. If, at any time after the date hereof, Tenant does not elect to use an item of Landlord's Music Hall Property, Tenant shall notify Landlord and Landlord shall, at its option, either (i) remove the same at Landlord's expense or (ii) abandon such item and Tenant may then dispose of such item, at its expense, without liability to Landlord. If Tenant shall elect to replace any item of Landlord's Music Hall Property with an item performing a similar function, Tenant shall notify Landlord in writing describing such replacement item and such replacement item shall be purchased at Tenant's expense with title thereto in the name of Landlord and thereafter such replacement item shall be deemed an item constituting Landlord's Music Hall Property for all purposes and the parties agree, at the request of either party, to execute an amendment to <u>Schedule 4</u> reflecting such additional item of Landlord's Music Hall Property. Tenant shall maintain Landlord's Music Hall Property (except for such items that Landlord shall abandon) throughout the Term in good order and repair and, upon the Expiration Date or earlier termination of this Lease, Landlord's Music Hall Property to the extent not abandoned by Landlord pursuant hereto shall be returned to Landlord in the same condition received by Tenant, reasonable wear and tear and damage by casualty, excepted.

Section 5.4 **<u>Mechanic's Liens</u>**. Tenant, at its expense, shall discharge any lien or charge filed against the Premises or the Real Property in connection with any work done by or on behalf of, or materials furnished to, Tenant, within 30 days after Tenant's receipt of notice thereof by payment, filing the bond required by law or otherwise in accordance with law.

Section 5.5 **<u>Labor Relations</u>**. (a) Tenant shall not employ, or permit the employment of, any contractor or laborer, or permit any materials to be delivered to or used in the Buildings, if, in Landlord's reasonable judgment, such employment, delivery or use will interfere or cause any conflict or disharmony with other contractors or laborers engaged in the construction, maintenance or operation of the Buildings or the Center by Landlord, Tenant or others, or the use and enjoyment of the Buildings or the Center by other tenants or occupants. In the event of such interference, conflict or disharmony, upon Landlord's request, Tenant shall cause all contractors and laborers causing such interference or conflict to leave the applicable Building (or Buildings) immediately until such interference, conflict or disharmony ceases.

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(b) Landlord shall not employ, or permit the employment of, any contractor or laborer, or permit any materials to be delivered to or used in the Premises, if, in Tenant's reasonable judgment, such employment, delivery or use will interfere or cause any conflict or disharmony with other contractors or laborers engaged in the construction, maintenance or operation of the Premises by Landlord, Tenant or others. In the event of such interference, conflict or disharmony, upon Tenant's request, Landlord shall cause all contractors and laborers causing such interference or conflict to leave the Premises immediately until such interference, conflict or disharmony ceases.

(c) Landlord and Tenant shall cooperate with one another to minimize any labor conflict or disharmony.

Section 5.6 **<u>Tenant's Costs</u>**. Tenant shall pay to Landlord or its designee, within 10 days after demand, all reasonable, third-party, out-of-pocket costs actually incurred by Landlord in connection with Tenant's Alterations, including such costs incurred in connection with (i) Landlord's review of the Alterations (including review of requests for approval thereof), and (ii) the provision of Buildings' personnel during the performance of any Alterations required by trade union policy to operate elevators or otherwise to facilitate Tenant's Alterations (which personnel would not otherwise be employed in such capacity but for the performance of such Alterations); provided that Landlord shall furnish to Tenant reasonable back-up documentation for any such costs which Tenant is obligated to reimburse to Landlord.

Section 5.7 **<u>Tenant's Equipment</u>**. With respect to the Ancillary Space, Tenant shall not move any heavy machinery, heavy equipment, freight, bulky matter or fixtures into or out of the Buildings without Landlord's prior consent and payment to Landlord of Landlord's reasonable charges in connection therewith. If any machinery, equipment or other items in the Premises require special handling, Tenant agrees (i) to employ only persons holding a Master Rigger's License to perform such work, and (ii) such work shall be done only during hours designated by Landlord.

Section 5.8 **<u>Legal Compliance</u>**. The approval of plans or specifications, or the consent by Landlord to the making of any Alterations, does not constitute Landlord's agreement or representation that such plans, specifications or Alterations comply with any Requirements or the certificate of occupancy issued for the Buildings. Any review by Landlord of any plans and/or specifications or any preparation or design of any plans or specifications by Landlord's architect or engineer (or any architect or engineer designated by Landlord) with respect to any Alteration is solely for Landlord's benefit, and without any representation or warranty whatsoever to Tenant or to any other Person with respect to the compliance thereof with any Requirements, the adequacy, correctness or efficiency thereof or otherwise. If, as the result of any Alterations made by or on behalf of Tenant, Landlord is required to make any alterations or improvements to any part of the Buildings in order to comply with any Requirements, whether or not in the Premises, Tenant shall pay all costs and expenses incurred by Landlord in connection with such alterations or improvements as provided in <u>Article 21</u>. Landlord, upon reviewing Tenant's plans, shall endeavor to identify any such alterations or improvements which Landlord may be obligated to make as a result of Tenant's Alterations, but such failure to do so on Landlord's part shall not relieve Tenant of its obligations under the preceding sentence.

**ARTICLE 6** 

**<u>FLOOR LOAD</u>**

Section 6.1 **<u>Floor Load</u>**. Tenant shall not place a load upon any floor in the Premises that exceeds the then existing capacities of the Premises. Landlord reserves the right to reasonably designate the position of all heavy machinery, equipment and fixtures which Tenant wishes to place within the Ancillary Space, and to place limitations on the weight thereof, in accordance with the Rules and Regulations.

**ARTICLE 7** 

**<u>REPAIRS</u>**

Section 7.1 **<u>Landlord's Repair and Maintenance</u>**.

(a) **<u>Ancillary Space</u>**. Landlord shall maintain and, except as provided in <u>Section 7.2</u> hereof, make all necessary repairs (both structural and nonstructural) to (i) the Building Systems serving the Ancillary Space, (ii) the portion of the common areas of the Buildings which Tenant is granted the right to use pursuant to this Lease and (iii) the structural elements of the Ancillary Buildings, both exterior and interior, including the roof, foundation and curtain wall, in conformance with standards applicable to first-class office buildings of comparable age and quality in midtown Manhattan.

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(b) **<u>Music Hall</u>**. Except as provided in <u>Section 7.2</u>, Landlord shall maintain and keep in good repair the Music Hall's roof and exterior walls and windows (exclusive of the exterior window glass portion thereof which shall be maintained and replaced by Tenant as provided in <u>Section 39.3</u>). It is acknowledged that the Music Hall's roof contains skylights which have been covered with roofing materials and Landlord shall maintain such portions of the roof. If, at any time, Tenant shall seek to restore all or any of such skylights to function as clear skylights. such restoration shall constitute a Music Hall Alteration and Tenant shall conduct such Music Hall Alteration (and all subsequent maintenance and repair of such skylights) at its expense. Landlord shall also, when necessary, maintain, keep in good repair and clean, consistent with the standards used with respect to the remainder of the Center, the sidewalks surrounding the Music Hall (including the brass maintenance (but not repair) of any decorative sidewalks) and remove snow or ice covering such sidewalks; provided, any repair, maintenance or cleaning which is Landlord's responsibility under this <u>Section 7.1(b)</u> but is required by reason of any act, omission, neglect or improper conduct of any Tenant Party (other than any Tenant's invitee) shall, subject to provisions of <u>Section 13.3</u>, be performed at Tenant's expense. Except as provided in the immediately preceding sentence, Landlord shall have no obligation to maintain or make any repairs to the Music Hall, including (i) the marquees and the exterior metal surfaces of the Music Hall or (ii) the fixtures, equipment and appurtenances in the Music Hall and (iii) the signage for the Music Hall.

Section 7.2 **<u>Tenant's Repair and Maintenance</u>**.

(a) **<u>Ancillary Space</u>**. Tenant shall, promptly following the date any of the repairs hereafter described is required, at its expense and in compliance with <u>Article 5</u> of this Lease, (i) make all nonstructural repairs to the Ancillary Space and the fixtures, equipment and appurtenances (which are not Building Systems) therein as and when needed to preserve the Ancillary Space in good working order and condition, except for reasonable wear and tear, damage for which Tenant is not responsible pursuant to this Lease and damage arising from the negligence or willful misconduct of Landlord or Landlord's agents, which, subject to the provisions of <u>Section 13.3</u>, Landlord shall repair at its expense and (ii) replace or repair scratched or damaged doors, signs and glass (other than exterior window glass) in and about the Ancillary Space. Without limiting the foregoing, all damage to the Ancillary Space or to any other part of the Ancillary Buildings, or to any fixtures, equipment, sprinkler system and/or appurtenances thereof, whether requiring structural or nonstructural repairs, caused by or resulting from any act, omission, neglect or improper conduct of, or Ancillary Space Alterations made by, or the moving of Tenant's fixtures, furniture or equipment, including machinery and heavy equipment, into, within or out of the Ancillary Space by any Tenant Party (other than any Tenant's invitee), shall be repaired at Tenant's expense. All repairs required to be made by Tenant pursuant to this <u>Section 7.2(a)</u> shall be made by (A) Tenant, at Tenant's expense if the required repairs are nonstructural in nature and do not affect any Building System or any portion of the Ancillary Buildings outside of the Ancillary Space, or (B) Landlord, at Tenant's expense (equal to the reasonable, third party, out-of-pocket expenses actually incurred by Landlord with respect to which Landlord shall provide reasonable supporting documentation), if the required repairs are structural in nature, involve replacement of exterior window glass (if damaged by any Tenant Party other than any Tenant invitee), or affect any Building System or any portion of the Ancillary Buildings outside of the Ancillary Space and provided Landlord shall furnish Tenant with reasonable supporting documentation thereof. Tenant shall give Landlord prompt notice of any defective condition of which Tenant is aware in any structural element or any Building System located in, servicing or passing through the Ancillary Space. All Tenant repairs shall be of a quality at least equal to the original work or construction using new construction materials, and shall be made in accordance with this Lease. If Tenant fails to proceed with due diligence to make any repairs required to be made by Tenant within a reasonable time not to exceed thirty (30) days after Landlord has so notified Tenant, Landlord may make such repairs, and all costs and expenses incurred by Landlord in so doing shall be paid by Tenant as provided in <u>Article 21</u>.

(b) **<u>Music Hall</u>**. Except as provided in <u>Section 7.1(b)</u>, Tenant shall operate, maintain and make all necessary repairs, promptly, at its expense and in compliance with <u>Article 5</u> of this Lease, to the Music Hall, including (i) the marquees and exterior metal surfaces, (ii) the fixtures, equipment and appurtenances including the refrigeration plant which provides chilled water to the Music Hall (the "<u>Refrigeration Plant</u>") and the Independent Systems servicing the Music Hall, as and when needed to preserve the Music Hall in good working order and condition, (iii) the signage for the Music Hall and (iv) repair or replace scratched or damaged doors, signs and glass (including exterior window glass in accordance with <u>Section 39.3</u>) in and about the Music Hall. Such repairs shall be made by (x) Tenant, at Tenant's expense if the required repairs do not affect the exterior of the Music Hall (other than the marquees, the exterior metal surfaces and the signage for the Music Hall, which shall be repaired by Tenant at its expense) or (y) at Landlord's election, Landlord, if the required repairs affect the exterior of the Music Hall (other than the marquees, the exterior metal surfaces and the signage for the Music Hall which shall be performed by Tenant at its expense) and Tenant shall pay all reasonable, third party, out of pocket costs actually incurred by Landlord in connection with such repairs. Tenant shall use reasonable efforts to give Landlord prompt notice of any defective condition of which Tenant is aware in the Refrigeration Plant or any Independent System located in, servicing or passing through the Music Hall. All Tenant repairs shall be of a quality at least equal to the original work or construction using new construction materials, and shall be made in accordance with this Lease. With respect to the maintenance of the Refrigeration Plant, Tenant, at its expense, shall enter into annual maintenance contracts with contractors approved by Landlord, which approval shall not be unreasonably withheld or delayed, and Tenant shall, upon the execution of any such maintenance contract, provide Landlord with a copy of such contract. If Tenant fails to enter into any such contract within 10 days after receipt of a

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notice from Landlord regarding same, Landlord may do so at Tenant's expense and Tenant shall pay to Landlord, within 30 days after Tenant's receipt of a written demand therefor, any amount due and owing under such contract. Landlord may, from time to time, after notice to Tenant, inspect the Refrigeration Plant and the Independent Systems servicing the Music Hall to assure that Tenant shall be maintaining the Refrigeration Plant and such Independent Systems in a first-class manner consistent with similar first-class buildings in New York. If Tenant fails to proceed with due diligence to make any repairs required to be made by Tenant pursuant to this subsection, Landlord may, subject to any requirement of notice contained in <u>Article 21</u>, make such repairs, and all reasonable, third-party, out-of-pocket costs and expenses actually incurred by Landlord in so doing shall be paid by Tenant as provided in <u>Article 21</u>.

(c) **<u>Tenant's Acts and Omissions</u>**. Subject to <u>Section 13.3</u>, Tenant, at its expense, shall make any and all repairs to the Premises required by reason of Tenant's negligent acts or omissions or willful malfeasance. Subject to <u>Section 13.3</u>, Landlord, at Tenant's expense (equal to the reasonable, third party, out-of-pocket expenses actually incurred by landlord with respect to which Landlord shall provide reasonable documentation), shall make any and all repairs to the other portions of the Center required by reason of Tenant's negligent acts or omissions or willful malfeasance.

Section 7.3 **<u>Interruptions Due to Repairs</u>**. Landlord reserves the right to make all changes, alterations, additions, improvements, repairs or replacements to the Ancillary Buildings and the Center, including the Building Systems which provide services to Tenant, as Landlord deems necessary or desirable; provided that, as to the Music Hall, Landlord shall only make such changes, alterations, additions, improvements, repairs and replacements (a) as are its responsibility or which Tenant fails to make and Landlord furnishes a notice requesting such repair or replacement as provided in <u>Section 7.2(a)</u> and (<u>b</u>) or, (b) which Landlord has the right to make following an Event of Default by Tenant or (c) which Landlord, in its good faith judgment, deems necessary in the event of an emergency, and, provided further, in no event shall the level of any Building service decrease in any material respect from the level required of Landlord in this lease as a result thereof (other than temporary changes in the level of such services during the performance of any such work by Landlord), nor shall there be a denial of Tenant's access to the Premises except in the event of any emergency to the extent that no practicable alternative exists. Landlord shall use reasonable efforts to minimize interference with Tenant's use and occupancy of the Premises during the making of such changes, alterations, additions, improvements, repairs or replacements, provided that Landlord shall have no obligation to employ contractors or labor at overtime or other premium pay rates or to incur any other overtime costs or additional expenses whatsoever; provided further, with respect to the Music Hall only, Landlord shall, except in the case of an emergency, schedule any work or other such matters so as not to interfere with performances being staged at the Music Hall and, if circumstances demand overtime or other premium pay rates in order to accommodate such scheduling, the same shall be so performed to the extent practicable on an overtime basis and Tenant shall pay all of Landlord's actual out-of-pocket costs incurred in connection with performing such work on an overtime basis. Without limiting the foregoing, Landlord shall schedule its routine maintenance during periods of the year other than when the Radio City Christmas Spectacular is being performed. Notwithstanding the foregoing, in circumstances where Landlord is not required to employ contractors or labor on an overtime basis, to the extent practicable, and provided Tenant shall agree to pay all actual, third party, out-of-pocket costs incurred by Landlord in excess of the costs Landlord would have otherwise incurred on a straight time basis. Except to the extent, if any, expressly provided for in this Lease, there shall be no Rent abatement or allowance to Tenant for a diminution of rental value, no actual or constructive eviction of Tenant, in whole or in part, no relief from any of Tenant's other obligations under this Lease, and no liability on the part of Landlord, by reason of inconvenience, annoyance or injury to business arising from Landlord, Tenant or others making, or failing to make, any repairs, alterations, additions or improvements in or to any portion of the Center, the Buildings or the Premises, or in or to fixtures, appurtenances or equipment therein.

**ARTICLE 8** 

**<u>INCREASES IN REAL ESTATE TAXES</u>**

Section 8.1 **<u>Definitions</u>**. As used in this Article:

(a) "**<u>Base Tax Factor</u>**" means the quotient, expressed in dollars and cents, of (i) the Taxes payable for the Base Tax Year, ***divided by*** (ii) the Center Tax Area for the Base Tax Year.

(b) "**<u>Center Tax Area</u>**" means the number of square feet in the rentable area of the Center for which Taxes are payable by Landlord or any Affiliate of Landlord, excluding the rentable area of any space in the Center not owned by Landlord or any Affiliate of Landlord or for which Taxes are not payable. Notwithstanding the foregoing, Landlord shall from time to time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) subtract from the Center Tax Area the rentable area of space in the Center for which Taxes are not payable by Landlord or an Affiliate of Landlord; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) add to the Center Tax Area to include additional rentable area of the Center for which Taxes are payable by Landlord or an Affiliate of Landlord.

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(c) "**<u>Landlord's Statement</u>**" means an instrument or instruments containing a comparison of the Base Tax Factor and the Tax Factor for any Tax Year.

(d) "**<u>Taxes</u>**" means the taxes and assessments paid or payable with respect to the Center, including assessments made as a result of the Center or any part thereof being within a business improvement district, other than any interest or penalties imposed in connection therewith, and all expenses, including fees and disbursements of counsel and experts, reasonably incurred by Landlord in connection with any application for a reduction in the assessed valuation for the Center or for a judicial review thereof (but in no event shall such expenses be included in Taxes payable for the Base Tax Year); provided that, except to the extent provided in the next sentence, Taxes shall not include franchise, income, profit or estate taxes. If due to a future change in the method of taxation any franchise, income, profit or other tax shall be levied in substitution in whole or in part for or in lieu of any tax which would otherwise constitute a Tax, such franchise, income, profit or other tax shall be deemed to be a Tax for the purposes of this Lease. With respect to assessments which may be paid in installments, Landlord shall elect to pay them in the maximum number of installments and each of such installments together with all interest imposed thereon by the applicable governmental authority shall be deemed to be included in Taxes for the period to which such installment relates. To the extent that expenses incurred by Landlord in connection with any application for a reduction in assessed valuation of the Center are reimbursed to Landlord by including same in the definition of Taxes for a particular Tax Year, the same shall not also be deducted from the amount of any refund that Landlord may obtain for such Tax Year so as to avoid any so-called "double-counting" of the same expense. If there is an abatement applicable to the Center solely by reason of the Music Hall constituting a portion thereof, such abatement shall be considered in computing Taxes, but no other exemptions or abatements shall be so considered.

(e) "**<u>Tax Factor</u>**" means the quotient, expressed in dollars and cents, of (i) the Taxes payable for any Tax Year subsequent to the Base Tax Year, ***divided by*** (ii) the Center Tax Area for such Tax Year.

(f) "**<u>Tax Year</u>**" means the 12 month period commencing July 1 of each year, or such other 12 month period as may be duly adopted as the fiscal year for real estate tax purposes by the City of New York.

Section 8.2 **<u>Tax Payments</u>**. (a) If the Tax Factor for any Tax Year exceeds the Base Tax Factor, Tenant shall pay to Landlord, as Additional Rent during each Tax Year, an amount ("<u>Tenant's Tax Payment</u>") equal to (i) Tenant's Area, ***multiplied by*** (ii) the amount by which the Tax Factor for such Tax Year exceeds the Base Tax Factor. Landlord shall furnish to Tenant a Landlord's Statement setting forth Landlord's computation of Tenant's Tax Payment for such Tax Year. Tenant shall pay to Landlord on June 1 and December 1 of each calendar year (or on such other dates as shall be thirty (30) days prior to each date that an installment of Taxes becomes due) an amount equal to 1/2 (or such portion of Taxes which may be due on such date) of Tenant's Tax Payment for such Tax Year. Landlord may, at any time, furnish to Tenant a revised Landlord's Statement of Landlord's computation of Tenant's Tax Payment for a particular Tax Year, and in such case, (A) if such Landlord's Statement shall show that the sums theretofore paid by Tenant were less than the sums which should have been paid on account of Tenant's Tax Payment for such Tax Year, Tenant shall pay to Landlord the amount of such deficiency in Tenant's Tax Payment within ten (10) Business Days after such Landlord's Statement is furnished to Tenant, or (B) if such Landlord's Statement shall show that the sums so paid by Tenant were more than the sums that should have been paid on account of Tenant's Tax Payment for such Tax Year, Landlord shall credit such overpayment in Tenant's Tax Payment against subsequent installments of Rent payable by Tenant or, if at the end of the Term, promptly refund such amount to Tenant. If there shall be any increase in the Taxes for any Tax Year, whether during or after such Tax Year, or if there shall be any decrease in the Taxes for any Tax Year, Landlord shall notify Tenant thereof and Tenant's Tax Payment for such Tax Year shall be appropriately adjusted and any deficiencies paid or overpayments credited, as the case may be, substantially in the same manner as provided in the preceding sentence.

(b) Tenant shall be obligated to pay Tenant's Tax Payment regardless of whether Tenant may be exempt from the payment of taxes as the result of any reduction, abatement, or exemption from Taxes granted or agreed to by any Governmental Authority, or by reason of Tenant's diplomatic status or other tax exempt status. The benefit of any discount for any early payment of Taxes shall accrue solely to the benefit of Landlord.

(c) Tenant shall not (and hereby waives any and all rights it may now or hereafter have to) institute or maintain any action, proceeding or application in any court or other body having the power to fix or review assessed valuations, for the purpose of reducing Taxes, and the filing of any such proceeding by Tenant without Landlord's consent shall be a default hereunder.

(d) Upon Tenant's request and provided that Landlord shall theretofore have received a copy of the tax bill(s) relating to the Center for a particular Tax Year, Landlord shall promptly furnish a copy of such tax bill to Tenant.

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(e) Upon Tenant's request, in the event Landlord shall have adjusted the Center Tax Area pursuant to <u>Section 8.1(b)</u> above, Landlord shall advise Tenant as to the basis for such adjustment and the basis for such adjustment shall be consistent with the basis for adjustments being made generally with respect to tenants in the Center with respect to whom an adjustment in the Center Tax Area is then being made.

Section 8.3 **<u>Certain Adjustments</u>**. (a) Taxes shall not include any taxes and assessments imposed upon any portion of the Center excluded from the calculation of the Center Tax Area pursuant to <u>Section 8.1(b)</u> above.

(b) If the Rent Commencement Date shall be a day other than July 1 or the Expiration Date shall be a day other than June 30, or if there is any abatement of Fixed Rent payable under this Lease (other than any abatement under <u>Article 1</u> hereof) or any termination of this Lease (other than a termination pursuant to <u>Article 19</u>), or if there is any increase or decrease in Tenant's Area or a change in the basis of computing Tenant's Tax Payment for any Tax Year, then in each such event in applying the provisions of this Article with respect to the Tax Year in which the event occurred, appropriate adjustments shall be made to reflect the result of such event on a basis consistent with the principles underlying the provisions of this Article, taking into consideration (i) the portion of such Tax Year, as the case may be, which shall have elapsed prior to or after such event, (ii) the rentable area of the Premises affected thereby, and (iii) the duration of such event.

Section 8.4 **<u>Non-Waiver</u>**. Landlord's failure to render a Landlord's Statement on a timely basis with respect to any Tax Year shall not prejudice Landlord's right to thereafter render a Landlord's Statement with respect to such Tax Year or any subsequent Tax Year, nor shall the rendering of a Landlord's Statement prejudice Landlord's right to thereafter render a corrected Landlord's Statement for any Tax Year. Notwithstanding the foregoing, if Landlord fails to deliver a Landlord's Statement for a particular Tax Year and such failure continues for two (2) years after the close of such Tax Year, then Landlord shall have waived its right thereafter to deliver a Landlord's Statement with respect to such Tax Year (but not as to subsequent Tax Years).

Section 8.5 **<u>Tenant Disputes</u>**. Each Landlord's Statement sent to Tenant shall be conclusively binding upon Tenant unless Tenant shall (i) within 30 days after such statement is sent, pay to Landlord the amount set forth in such statement, without prejudice to Tenant's right to dispute such statement, and (ii) within 180 days after such statement is sent, send a notice to Landlord objecting to such statement and specifying the reasons for Tenant's claim that such statement is incorrect. If the parties are unable to resolve any such dispute within 30 days following the giving of Tenant's notice of objection, either party may refer the issues raised to an independent firm of certified public accountants selected by Landlord (but not Landlord's regular accountant) and reasonably acceptable to Tenant, and the decision of such accountants shall be conclusively binding upon Landlord and Tenant. In connection therewith, Tenant and such accountants shall execute and deliver to Landlord a confidentiality agreement, in form and substance reasonably satisfactory to Landlord, whereby such parties agree not to disclose to any third party any of the information that is not otherwise public obtained in connection with such review, or the substance of any admissions or stipulations by any party in connection therewith, or of any resulting reconciliation, compromise or settlement.

**ARTICLE 9** 

**<u>REQUIREMENTS OF LAW</u>**

Section 9.1 (a) **<u>Tenant's Compliance/Landlord's Compliance</u>**. Tenant, at its expense, shall comply (or cause to be complied) with all Requirements applicable to those portions of the Premises for which Tenant shall be responsible, regardless of whether imposed by their terms upon Landlord or Tenant. If Tenant obtains knowledge of any failure to comply with any Requirements applicable to those portions of the Premises for which Tenant shall be responsible for the repair and maintenance as provided in this Lease, Tenant shall use reasonable efforts to give Landlord prompt notice thereof. All repairs and alterations, ordinary or extraordinary, required to be made to cause the Premises to comply with any Requirements shall be made by Tenant, at Tenant's expense and in compliance with <u>Article 5</u> if such repairs or alterations do not affect any Building System, and do not involve the performance of work outside of the Premises, or, at Landlord's election, by Landlord, at Tenant's expense in an amount equal to the reasonable, third party, out-of-pocket expenses actually incurred by Landlord (based upon reasonable supporting documentation), if such repairs or alterations affect any Building System, or involve the performance of work outside the Premises. Any cost incurred by Landlord to repair or alter, whether structural or nonstructural, ordinary or extraordinary, (i) the Premises to comply with Requirements or (ii) any other portion or portions of the Buildings or the Center, which repair or alteration results from Tenant's use of the Premises, shall be reimbursed by Tenant as Additional Rent within 30 days after Landlord's demand therefor. Landlord, at its expense, shall comply (or cause to be complied) with all Requirements applicable to the Premises or Buildings other than those with which Tenant or other tenants of the Buildings shall be required to comply, if Landlord's failure to do so would have a material and adverse effect on Tenant's occupancy.

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(b) **<u>Hazardous Materials</u>**. Tenant shall not (i) cause or permit any Hazardous Materials to be brought into or onto the Center, (ii) cause or permit the storage or use of Hazardous Materials in any manner not permitted by any Requirements, or (iii) cause or permit the escape, disposal or release of any Hazardous Materials within or in the vicinity of the Center. Nothing herein shall be deemed to prevent Tenant's use of any Hazardous Materials customarily used in the ordinary course of using the Premises for the Permitted Uses, provided such use is in accordance with all Requirements. Tenant shall be responsible, at its expense, for the cost of compliance with all Requirements and for all fines, violations and any other such charges, which arise or result from, the actual or alleged presence of Hazardous Materials (A) in the Premises and (B) in the Buildings or the Center, provided, as to this clause (B), Tenant shall only be responsible to the extent the actual or alleged presence of Hazardous Substance is caused or permitted by Tenant or any Tenant Party. Tenant shall provide to Landlord copies of all communications received by Tenant with respect to any Requirements relating to Hazardous Materials, and any claims made in connection therewith. Landlord or its agents may perform environmental inspections of the Premises at any time.

(c) **<u>Landlord's Insurance</u>**. Tenant shall not cause or permit or suffer any action or condition that would (i) invalidate or conflict with Landlord's insurance policies which contemplate a live entertainment use for the Music Hall, (ii) violate applicable rules, regulations and guidelines of the Fire Department, Fire Insurance Rating Organization or any other authority having jurisdiction over the Center, (iii) cause an increase in the premiums for fire insurance then covering the Buildings over that payable with respect to comparable first-class office buildings or theaters, or (iv) result in insurance companies of good standing refusing to insure the Buildings or any property therein in amounts and against risks as reasonably determined by Landlord. If the fire insurance premiums increase as a result of Tenant's failure to comply with the provisions of this Article, Tenant shall promptly cure such failure and shall reimburse Landlord for the increased fire insurance premiums paid by Landlord as a result of such failure by Tenant, provided that Landlord shall furnish reasonable supporting documentation therefor. If it is not practicable for Tenant to cure such failure and continue to operate the Premises for the Permitted Uses and the only result of such failure is an increase in Landlord's insurance premium, then provided Tenant pays such increased premium, Tenant shall not be required to cease such action so long as the increased premium is the only effect of such failure and, provided further, in the event that (A) Landlord's insurance carrier refuses to provide certain insurance as a result of Tenant's failure to comply with the provisions of this Article and (B) a separate insurance carrier of comparable rating or which is otherwise satisfactory to Landlord is willing to provide such insurance, Tenant shall pay any increased cost payable by Landlord by reason of its purchase of such insurance from such separate insurance carrier. In any action or proceeding to which Landlord and Tenant are parties, a schedule or "make up" of rates for the Buildings or the Premises issued by the appropriate Fire Insurance Rating Organization, or other body fixing such fire insurance rates, shall be conclusive evidence of the fire insurance rates then applicable to the Buildings.

(d) **<u>ADA Compliance</u>**. Tenant hereby acknowledges and agrees that it is aware of the complaint letter, dated February 9, 1995 from the United States Department of Justice to Proskauer, Rose Goetz & Mendelsohn (the "<u>DOJ Letter</u>") relating to certain violations of ADA by RCPI. Without limiting Tenant's obligations under <u>Section 9.1</u>, Tenant expressly agrees that it shall, from and after the Execution Date and during the Term, at its own expense, comply with the requirements of any settlement of, or any final judgment, order or decree relating to, the DOJ Letter or any subsequent correspondence or complaint with respect to ADA compliance in the Music Hall, including any ADA requirements relating to conditions existing prior to the Execution Date. In consideration of the foregoing, Landlord agrees to waive its right to require Tenant to pay Compliance Costs (as defined in the Lease Modification) up to an aggregate amount of $300,000. Landlord shall cooperate with Tenant in connection with, and shall approve, any settlement Tenant shall enter into pursuant to this <u>Section 9.1(d)</u>; provided, that (i) such settlement shall not impose any liability, obligation or expense upon Landlord and (ii) any improvements or alterations required to be performed by Tenant pursuant to such settlement shall not affect any area outside of the Premises. Any alterations or improvements required to be performed pursuant to such settlement shall constitute a Music Hall Alteration and be subject to the applicable terms and conditions of this Lease.

Section 9.2 **<u>Fire Alarm System; Sprinklers</u>**. Tenant shall install, and thereafter maintain in good order and repair, a sprinkler system and fire-alarm and life-safety system in each of the Music Hall, the 1270 Space and the 50 Rock Space (except, as to the Music Hall sprinkler system, only to the extent required by Requirements), in accordance with this Lease, the Rules and Regulations and all Requirements if and to the extent such systems have not been installed in the Premises prior to the date hereof. If the Fire Insurance Rating Organization or any Governmental Authority or any of Landlord's insurers requires or recommends any modifications or Alterations be made or any additional equipment be supplied in connection with the sprinkler system or fire-alarm and life-safety system serving the Buildings or the Premises by reason of Tenant's business, or the location of the partitions, trade fixtures, or other contents of the Premises, Landlord (to the extent outside of the Premises), or Tenant (to the extent within the Premises) shall make such modifications or Alterations, and supply such additional equipment, in either case at Tenant's expense; provided, however, that if any such recommendation does not have the force of law and failure to comply with such recommendation shall have no material adverse effect on Landlord other than an increase in Landlord's insurance premiums (which increase Tenant agrees to pay), Tenant shall not be required to comply with such recommendation.

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Section 9.3 **<u>Limitations on Rent</u>**. If, at any time during the Term, the Rent is not fully collectible by reason of any Requirement in the nature of rent control which limits Landlord's right to collect the Rent provided herein, Tenant shall take such other steps as Landlord may request, and as may be legally permissible, to permit Landlord to collect the maximum rents which may during the continuance of such restriction be legally permissible (but not in excess of the Rent reserved under this Lease). Upon the termination of such restriction during the Term, Tenant shall pay to Landlord, in addition to the Rent for the period following such termination, if legally permissible, the portion of Rent which would have been paid pursuant to this Lease but for such legal restriction, less the Rent paid by Tenant to Landlord while such restriction was in effect, together with interest thereon at the Base Rate.

**ARTICLE 10** 

**<u>QUIET ENJOYMENT</u>**

Provided this Lease is in full force and effect, Tenant may peaceably and quietly enjoy the Premises without hindrance by Landlord or any Person lawfully claiming through or under Landlord, subject to the terms and conditions of this Lease.

**ARTICLE 11** 

**<u>SUBORDINATION</u>**

Section 11.1 **<u>Subordination and Attornment</u>**. (a) Subject to Section 11.5 hereof, this Lease and Tenant's rights hereunder are subject and subordinate to all Mortgages and Superior Leases. At the request of any Mortgagee or Lessor, Tenant shall attorn to such Mortgagee or Lessor, its successors in interest or any purchaser in a foreclosure sale at such time as any such party succeeds to Landlord's interest hereunder as Landlord. Landlord represents and warrants to Tenant that, as of the Execution Date, there are no Superior Leases, Mortgages or Condominium Declarations (as hereinafter defined) affecting the Premises.

(b) If a Lessor or Mortgagee or any other Person shall succeed to the rights of Landlord under this Lease, whether through possession or foreclosure action, or the delivery of a new lease or deed, then at the request of the successor landlord and upon such successor landlord's written agreement to accept Tenant's attornment and to recognize Tenant's interest under this Lease, Tenant shall be deemed to have attorned to and recognized such successor landlord as Landlord under this Lease. The provisions of this <u>Article 11</u> are self-operative and require no further instruments to give effect hereto; provided, however, that Tenant shall promptly execute and deliver any instrument that such successor landlord may reasonably request (1) evidencing such attornment, (2) setting forth the terms and conditions of Tenant's tenancy, and (3) containing such other terms and conditions as may be required by such Mortgagee or Lessor, provided such terms and conditions do not increase the Rent, increase (by more than a de minimis extent) Tenant's non-Rent obligations or adversely affect Tenant's rights under this Lease (by more than a de minimis extent). Upon such attornment, this Lease shall continue in full force and effect as a direct lease between such successor landlord and Tenant upon all of the terms, conditions and covenants set forth in this Lease except that such successor landlord shall not be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) liable for any act or omission of Landlord (except to the extent such act or omission continues beyond the date when such successor landlord succeeds to Landlord's interest and Tenant gives notice of such act or omission);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject to any defense, claim, counterclaim, set-off or offset which Tenant may have against Landlord; provided that nothing contained herein shall be deemed to impair any right of Tenant to a continuing abatement pursuant to Article 14 in connection with a prior casualty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) bound by any prepayment of more than one month's Rent to any prior landlord except for Additional Rent on account of Taxes or, if applicable, Tenant's Retail Operating Expense Payment, which are paid in accordance with this Lease for a period covering more than one month;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) bound by any obligation to make any payment to Tenant which was required to be made prior to the time such successor landlord succeeded to Landlord's interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) bound by any obligation to perform any work or to make improvements to the Premises except for (A) repairs and maintenance required to be made by the Landlord under this Lease, and (B) repairs to the Premises as a result of damage by fire or other casualty, or partial condemnation, pursuant to the provisions of this Lease, but only to the extent that such repairs can reasonably be made from the net proceeds of any insurance or condemnation awards actually made available to such successor landlord; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) bound by any modification, amendment or renewal of this Lease made without the consent of any Lessor or Mortgagee of which Tenant has been provided notice.

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(c) Any Mortgagee may elect that this Lease shall have priority over the Mortgage that it holds and, upon notification to Tenant by such Mortgagee, this Lease shall be deemed to have priority over such Mortgage, regardless of the date of this Lease. In connection with any financing of the Real Property or the Center, or of the interest of the lessee under any Superior Lease, Tenant shall consent to any reasonable modifications of this Lease requested by any lending institution, provided such modifications do not increase the Rent, increase Tenant's non-Rent obligations other than to a de minimis extent or reduce or affect Tenant's rights under this Lease other than to a de minimis extent.

Section 11.2 **<u>Termination by Tenant</u>**. As long as any Superior Lease or Mortgage shall exist, Tenant shall not seek to terminate this Lease by reason of any act or omission of Landlord (i) until Tenant shall have given notice of such act or omission to all Lessors and/or Mortgagees (of which Tenant has received notice) and shall state in such notice in **BOLDFACE TYPE** that within 45 days of receipt thereof, such Lessor or Mortgagee must provide Tenant a notice of its intention to seek to cure such default to preserve such Lessor's or such Mortgagee's rights under this <u>Section 11.2</u>, and (ii) provided such Lessor and/or Mortgagee shall, within 45 days of receipt of Tenant's notice, notify Tenant of its intention to seek to cure such default, until a reasonable period of time shall have elapsed following the giving of notice of such default and the expiration of any applicable notice or grace periods (unless such act or omission is not capable of being remedied within a reasonable period of time) during which period such Lessors and/or Mortgagees shall have the right, but not the obligation, to remedy such act or omission. If any Lessor or Mortgagee elects to remedy such act or omission of Landlord, Tenant shall not seek to terminate this Lease so long as such Lessor or Mortgagee is proceeding with reasonable diligence to effect such remedy.

Section 11.3 **<u>Future Condominium Declaration</u>**. This Lease and Tenant's rights hereunder will be subject and subordinate to any condominium declaration, by-laws and other instruments (collectively, the "<u>Condominium Declaration</u>") which may hereafter be recorded in order to subject the Buildings to a condominium form of ownership pursuant to Article 9-B of the New York Real Property Law or any successor statute, provided that the Condominium Declaration does not by its terms increase the Rent, increase Tenant's non-Rent obligations other than to a de minimis extent or reduce Tenant's rights or Landlord's obligations under this Lease other than to a de minimis extent. At Landlord's request, and subject to the foregoing proviso, Tenant will execute and deliver to Landlord an amendment of this Lease confirming such subordination and modifying this Lease to conform to such condominium regime, but no such amendment shall be necessary in order to make such subordination effective.

Section 11.4 **<u>Applicability</u>**. The provisions of this Article shall (i) inure to the benefit of Landlord, any future owner of the Real Property, any Lessor or Mortgagee and any sublessor thereof, and (ii) apply notwithstanding that, as a matter of law, this Lease may terminate upon the termination of any Superior Lease or the foreclosure of any Mortgage.

Section 11.5 **<u>Non-Disturbance Agreements</u>**. As a condition to Tenant's agreement hereunder to subordinate Tenant's interest in this Lease to any Mortgage and any Superior Lease, Landlord shall obtain from each Mortgagee or Lessor an agreement, in recordable form in the standard form customarily employed by such Mortgagee or Lessor (modified as reasonably required to provide Tenant with the protections provided for in this Section 11.5 and provided that nothing contained therein shall be inconsistent in any material respect with the terms of this Lease), pursuant to which such Mortgagee or Lessor shall agree that if and so long as no Event of Default hereunder shall have occurred and be continuing, the leasehold estate granted to Tenant and all of the rights of Tenant pursuant to this Lease shall not be terminated, modified, affected or disturbed by any action which such Mortgagee may take to foreclose any Mortgage, or which such Lessor shall take to terminate such Superior Lease, as applicable, and that any successor landlord shall recognize this Lease as being in full force and effect as if it were a direct lease between such successor landlord and Tenant upon all of the terms, covenants, conditions and options granted to Tenant under this Lease, except as otherwise provided in <u>Section 11.1(b)</u> hereof (any such agreement, a "<u>Non-Disturbance Agreement</u>"). If (i) Landlord shall tender a Non-Disturbance Agreement to Tenant for execution accompanied by a notice referring to this <u>Section 11.5</u> and stating that Tenant is required to execute and deliver same within ten (10) Business Days after such tender, and Tenant shall fail or refuse to execute and deliver same within said ten (10) Business Days, after such tender, (ii) following the expiration of such ten (10) Business Day period, Landlord delivers to Tenant a notice setting forth such failure or refusal, and (iii) Tenant's failure or refusal shall continue for a period of five (5) Business Days after Tenant's receipt of the notice described in clause (ii) above, then Landlord shall have no further obligation pursuant to this <u>Section 11.5</u> with respect to the Mortgagee or Superior Lessor which is the other party thereto, all of Landlord's obligations being deemed satisfied and this Lease and all rights of Tenant hereunder shall remain subject and subordinate to the applicable Superior Lease or Mortgage without the need to deliver to Tenant a Non-Disturbance Agreement, and no further instrument of subordination shall be required.

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**ARTICLE 12** 

**<u>SERVICES</u>**

Section 12.1 **<u>Ancillary Space Services</u>**. Landlord shall provide no services to the Ancillary Space except as expressly stated in this <u>Section 12.1</u>.

(a) **<u>Elevators</u>**. Landlord shall make available to Tenant at least one freight elevator serving the 1270 Space, the 50 Rock Space and the storage portion of Retail Space #1 upon Tenant's prior request, on a non-exclusive "first come, first serve" basis with other tenants of 1270 Avenue of the Americas and/or 50 Rockefeller Plaza, on all Business Days from 8:00 a.m. to 12:00 noon, and from 1:00 p.m. to 5:00 p.m. If Tenant shall require freight elevator service at any other times ("<u>Overtime Periods</u>"), Tenant must deliver notice (which may be delivered via facsimile if Landlord generally permits tenants in the Center to notify Landlord of the need for overtime services using this notice method) to Landlord's property management office serving 1270 Avenue of the Americas and/or 50 Rockefeller Plaza, requesting such freight elevator service at least 24 hours prior to the time at which such service is to be provided, but Landlord shall use reasonable efforts (without obligation to incur any additional cost) to arrange for freight elevator service during Overtime Periods on such shorter notice as Tenant shall provide. Tenant shall pay to Landlord Landlord's then established rates for supplying freight elevator service during Overtime Periods which shall be the rate charged generally to tenants at 1270 Avenue of the Americas and/or 50 Rockefeller Plaza. In the event that Tenant desires to provide an entrance to the Club (as defined in <u>Article 40</u>) through the lobby at 1270 Avenue of the Americas, Landlord and Tenant shall cooperate with one another to reach agreement on satisfactory arrangements which address to Landlord's reasonable satisfaction Landlord's security and operational concerns regarding such usage by Tenant; provided that Landlord prohibiting any such usage during Business Hours shall conclusively be deemed to be reasonable and provided further that all expenses in connection with such usage of the lobby at 1270 Avenue of the Americas shall be borne by Tenant. Landlord shall be under no obligation to provide passenger elevator service to any Ancillary Space except to the extent Landlord may agree to do so with respect to the 1270 Space in connection with the usage of the lobby at 1270 Avenue of the Americas as an entrance to the Club as above provided.

(b) **<u>Ancillary Space Chilled Water</u>**. Landlord and Tenant shall furnish chilled water for the operation of 1270 Avenue of the Americas, to a location designated by Landlord and otherwise in accordance with the specifications set forth in <u>Exhibit D-1</u> annexed hereto. Landlord shall furnish chilled water to the 1270 Space, Retail Space #1 and the 50 Rock Space in accordance with <u>Exhibit D-2</u> annexed hereto.

(c) **<u>Cleaning</u>**. Tenant shall, at its expense, cause the Ancillary Space to be cleaned and exterminated substantially in accordance with the specifications set forth in <u>Exhibit E</u>. The cleaning of the Ancillary Space may be done by Tenant's employees. If Tenant shall seek to clean all or any portion of the Ancillary Space other than by its own employees and Tenant shall receive a bona fide, firm bid for performing such cleaning services from a reputable cleaning contractor and if Landlord's designated contractor shall be comparable in competence, Landlord's designated contractor shall within thirty (30) days thereafter have the right to match the bid of Tenant's proposed contractor. If Landlord's designated contractor shall match such bid, then Tenant shall award the contract for such cleaning services to Landlord's designated contractor. If Landlord's designated contractor shall not match such bid, Landlord shall not unreasonably withhold or delay its consent to Tenant's use of its proposed contractor to provide such cleaning services. Any contract entered into by Tenant shall be for a period of no more than one year at which time Landlord's designated cleaning contractor shall again be afforded an opportunity to bid on such work and shall be awarded such work if it is prepared to match the bid of the cleaning contractor then being utilized by Tenant and can demonstrate its competence to perform such cleaning services to Tenant's reasonable satisfaction.

(d) **<u>Water and Steam</u>**. Landlord shall provide to the Ancillary Space hot and cold water for drinking, cleaning and lavatory purposes and, as to the kitchen area of the 1270 Space, only cold water. Landlord shall install a meter to measure the water and steam furnished to the 1270 Space and the Retail Space. Tenant shall pay the reasonable third party, out of pocket cost of such installation actually incurred by Landlord, and for all maintenance, repairs and replacements thereto. Tenant shall also pay 103% of Landlord's actual costs for providing such water or steam as measured by such meters and for any required pumping or heating thereof plus reasonable out-of-pocket, third party costs actually incurred by Landlord, and any sewer rent, taxes (including utility and sales taxes) and/or charge now or hereafter assessed or imposed upon the 1270 Space, the Retail Space or 1270 Avenue of the Americas (and equitably allocated to the 1270 Space or the Retail Space) pursuant to any Requirement. Such charges shall be payable within thirty (30) days after being billed therefor. Tenant shall not be charged for water for the purposes herein specified which is furnished to the 50 Rock Space.

(e) **<u>Gas</u>**. Landlord shall make available to Tenant a portion of the pipe gallery shaft designated by Landlord for Tenant to install the meter furnished by the utility supplying gas to the Ancillary Space. Tenant shall be directly metered for all gas required by the 1270 Space and the 50 Rock Space and Tenant shall pay for all maintenance, repairs and replacements of such meters. Tenant shall also pay any rent, tax and/or charge now or hereafter assessed or imposed upon Landlord or Tenant with respect to such gas usage.

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(f) **<u>Refuse and Rubbish Removal</u>**. Tenant shall provide all refuse and rubbish removal services with respect to the Ancillary Space pursuant to regulations reasonably established by Landlord. With respect to the 1270 Space and Retail Space #1, Tenant shall remove the refuse and rubbish via the freight elevators servicing 1270 Avenue of the Americas to an area of Landlord's main loading dock designated for Tenant after 6:00 p.m. and before 6:00 a.m. and Tenant shall pay Landlord's customary charges for overtime freight elevator service then being charged generally to tenants of 1270 Avenue of the Americas. Tenant shall cause all Tenant Parties to observe such additional rules and regulations regarding rubbish removal and/or recycling as Landlord may, from time to time, reasonably impose.

(g) **<u>Life Safety</u>**. Tenant, at its expense, shall connect the life safety systems serving the Ancillary Space to the life safety Building System in the applicable Ancillary Building.

(h) **<u>Additional Ancillary Building Services</u>**. The Rent does not reflect or include any charge to Tenant for the furnishing of any building services to the Ancillary Space other than to the limited extent described in <u>Section 12.1(b)</u> above. If Landlord furnishes any other building service to the Ancillary Space, Tenant shall pay to Landlord Landlord's then established rates for supplying such building services.

(i) **<u>Connections to Utilities</u>**. Landlord shall, at Tenant's expense, cooperate with Tenant in facilitating the connections between the utilities providing water, steam and gas and the risers serving the Ancillary Space.

Section 12.2 **<u>Music Hall Services</u>**. (a) **<u>Water</u>**. Tenant shall be directly metered by the City of New York for all water required by the Music Hall. Tenant shall pay for all maintenance, repairs and replacement of such meters. Tenant shall also pay any sewer rent, tax and/or charge now or hereafter assessed or imposed upon Landlord or Tenant with respect to such water usage.

(b) **<u>Refuse and Rubbish Removal</u>**. Tenant shall be responsible for removal of all refuse and rubbish from the Music Hall and the 50 Rock Space. The refuse and rubbish shall be removed by Tenant daily to a portion of Landlord's main loading dock serving 50 Rockefeller Plaza via the freight elevators serving 50 Rockefeller Plaza. Tenant shall pay Landlord's customary charges for overtime freight elevator service then being charged generally to tenants of 50 Rockefeller Plaza. Tenant's refuse and rubbish shall be promptly picked up by Landlord's contractor nightly after 2:00 a.m. and prior to 6:00 a.m. and Tenant shall pay to Landlord (i) Landlord's commercially reasonable charges for the use of Landlord's compactors, (ii) Landlord's actual, third party, out-of-pocket cost to remove such refuse and rubbish and (iii) any additional costs actually incurred by Landlord for any cleaning, maintenance or repairs made to the common areas of 50 Rockefeller Plaza resulting from Tenant Parties' removal of such refuse and rubbish from the Music Hall to Landlord's main loading dock serving 50 Rockefeller Plaza. Tenant shall cause all Tenant Parties to observe such additional rules and regulations regarding rubbish removal and/or recycling as Landlord may, from time to time, reasonably impose. If Landlord fails to cause its contractor to remove refuse and rubbish from the loading dock in a reasonably timely manner such that Tenant has no place to unload additional refuse and rubbish and Landlord fails to cure such failure promptly upon being notified of same, Tenant may, at its expense, cause its own contractor to remove such refuse and rubbish, subject to the provisions of this Lease relating to labor harmony.

(c) **<u>Cleaning</u>**. Tenant shall, at its expense, cause the Music Hall to be cleaned at a standard befitting a first class entertainment center located within the Center. The Music Hall may be cleaned by Tenant's employees. If Tenant shall seek to clean all or any portion of the Music Hall other than by its own employees, Tenant shall obtain a bona fide, firm bid for performing such cleaning services from a reputable cleaning contractor and if Landlord's designated contractor shall be comparable in competence, Landlord's designated contractor shall within thirty (30) days thereafter have the right to match the bid of Tenant's proposed contractor, provided that within such thirty (30) day period Landlord's designated contractor can demonstrate its competence to perform such cleaning to Tenant's reasonable satisfaction. If Landlord's designated contractor shall match such bid and shall have demonstrated its competence to Tenant's reasonable satisfaction, then Tenant shall award the contract for such cleaning services to Landlord's designated contractor. If Landlord's designated contractor shall not match such bid, Landlord shall not unreasonably withhold or delay its consent to Tenant's use of its proposed contractor to provide such cleaning services. Any contract entered into by Tenant shall be for a period of no more than one year at which time Landlord's designated cleaning contractor shall again be afforded an opportunity to bid on such work and shall be awarded such work if it is prepared to match the bid of the cleaning contractor then being utilized by Tenant and can demonstrate its competence to perform such cleaning to Tenant's reasonable satisfaction.

(d) **<u>Chilled Water</u>**. Chilled Water shall be provided to the Music Hall at such times and subject to the terms and conditions set forth in <u>Exhibit D-1</u> annexed hereto.

Section 12.4 **<u>Service Interruptions</u>**. Landlord reserves the right to suspend any building service when necessary, by reason of Unavoidable Delays, accidents or emergencies, or for repairs, alterations or improvements which, in Landlord's reasonable judgment, are necessary or appropriate, until such Unavoidable Delay, accident or emergency shall cease or such repairs, alterations or improvements are completed, and Landlord shall not be liable to Tenant for any interruption, curtailment or failure to supply services.

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Landlord shall use reasonable efforts to restore such service, remedy such situation and minimize interference with Tenant's business, provided that Landlord shall have no obligation to employ contractors or labor at overtime or other premium pay rates, or to incur any other overtime costs or additional expenses whatsoever. The exercise of any such right or the occurrence of any such failure by Landlord shall not (i) constitute an actual or constructive eviction, in whole or in part, (ii) entitle Tenant to any compensation, abatement or diminution of Rent, (iii) relieve Tenant from any of its obligations under this Lease, or (iv) impose any liability upon Landlord by reason of inconvenience to Tenant, or interruption of Tenant's business, or otherwise.

Section 12.5 **<u>Rent Abatement</u>**. Notwithstanding anything to the contrary contained in <u>Section 12.4</u> above or elsewhere in this Lease, provided no Event of Default shall have occurred and be continuing, in the event that Tenant is unable to use all of the 1270 Space, all of the 50 Rock Space or all of the Retail Space (each, an "<u>Affected Space</u>"), for the conduct of Tenant's business due solely to the failure of an Essential Service (as defined below) and (a) after Tenant furnishes a notice to Landlord (the "<u>Abatement Notice</u>") stating that Tenant's inability to use the Premises is solely due to such condition and such condition continues for a period in excess of (x) 10 consecutive days if the failure to provide such Essential Service results from a circumstance within Landlord's control or (y) 20 consecutive days if the failure to provide such Essential Service results from an Unavoidable Delay, (b) Tenant does not actually use or occupy the entire Affected Space during such period and (c) such condition has not resulted from the negligence or willful misconduct of Tenant or any Tenant Party, then Fixed Rent, the Retail Operating Expense Payment and Tenant's Tax Payment shall be abated on a per diem basis with respect to the Affected Space (but not as to the balance of the Premises) for the period commencing on the 11th day (or the 21<sup>st</sup> day, as applicable) after Tenant furnishes the Abatement Notice, and ending on the earlier of (i) the date Tenant occupies any material portion of the Affected Space which is the subject of such abatement for the ordinary conduct of its business or (ii) the date on which such condition is substantially remedied. An "<u>Essential Service</u>" shall mean only, with respect to each Affected Space, (i) the provision of electricity pursuant to <u>Section 17.1</u>, (ii) the provision of water and steam (when seasonably required) in accordance with the terms set forth in <u>Section 12.1(d)</u>, and (iii) Landlord's failure to provide chilled water during the time periods provided in, and in accordance with the provisions of, <u>Exhibit D-1</u> and Exhibit <u>D-2</u> annexed hereto. Notwithstanding the foregoing, if Landlord shall fail to provide chilled water to the Affected Space or the Music Hall and such chilled water can be provided by Tenant by operation of Tenant's Refrigeration Plant, then in lieu of any abatement pursuant to this Section 12.5, from and after the 10<sup>th</sup> day of such failure (or the 20<sup>th</sup> day of such failure, if such failure was due to an Unavoidable Delay), Landlord shall pay to Tenant an amount equal to the actual cost incurred by Tenant to operate its Refrigeration Plant which Tenant would not have otherwise incurred but for Landlord's failure to provide said chilled water as an Essential Service. Tenant shall provide Landlord with reasonable supporting documentation of such costs incurred and Landlord shall pay Tenant the amounts due to Tenant hereunder within thirty (30) days of receiving such documentation.

**ARTICLE 13** 

**<u>INSURANCE; PROPERTY LOSS OR DAMAGE; REIMBURSEMENT</u>**

Section 13.1 **<u>Tenant's Insurance</u>**. (a) Tenant, at its expense, shall obtain and keep in full force and effect during the Term:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a policy of commercial general liability insurance on an occurrence basis against claims for personal injury, death and/or property damage occurring in or about the Premises, under which Tenant is named as the insured and Landlord, Landlord's managing agent, any Lessors, any Mortgagees and any other parties whose names shall have been furnished by Landlord to Tenant from time to time are named as additional insureds, which insurance shall provide primary coverage without contribution from any other insurance carried by or for the benefit of Landlord, Landlord's managing agent or any Lessors or Mortgagees named as additional insureds, and Tenant agrees to obtain blanket broad-form contractual liability coverage to insure its indemnity obligations set forth in <u>Article 32</u> hereof. The minimum limits of liability shall be a combined single limit with respect to each occurrence in an amount of not less than [\*\*\*\*\*]; provided, however, that Landlord may require Tenant to increase such coverage, from time to time, to that amount of insurance which in Landlord's reasonable judgment is then being customarily required by landlords in first-class buildings in the City of New York with respect to the Ancillary Space and for comparable entertainment centers in the City of New York with respect to the Music Hall. If the aggregate limit applying to the Premises is reduced by the payment of a claim or establishment of a reserve equal to or greater than 50% of the annual aggregate, Tenant shall immediately arrange to have the aggregate limit restored by endorsement to the existing policy or the purchase of an additional insurance policy unless, in Landlord's reasonable judgment, Tenant maintains sufficient excess liability insurance to satisfy the liability requirements of this Lease without the reinstatement of the aggregate limit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) insurance against loss or damage by fire, and such other risks and hazards as are insurable under then available standard forms of "all risk" property insurance policies with extended coverage, having a deductible amount, if any, as reasonably approved by Landlord, insuring (A) with respect to the Ancillary Space, all Ancillary Space Alterations and improvements to the Ancillary Space, for the full insurable value thereof or replacement cost value thereof, (B) all of Tenant's Property and (C) Landlord's Studio Apartment Property; all such insurance shall name Tenant as the insured and, except with respect to Tenant's insurance covering Tenant's Property and Landlord's Studio Apartment Property, Landlord and any Lessors and any

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Mortgagees whose names shall have been furnished by Landlord to Tenant from time to time shall be named as additional insureds and loss payees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) during the performance of any Alteration, until completion thereof, Builder's risk insurance on an "all risk" basis and on a completed value form including a Permission to Complete and Occupy endorsement, for full replacement value covering the interest of Landlord and Tenant (and their respective contractors and subcontractors), any Mortgagee and any Lessor in all work incorporated in the Buildings and all materials and equipment in or about the Premises;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Workers' Compensation Insurance, as required by law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Liquor Liability (dram shop) Insurance with a minimum limit of liability in an amount of not less than $1,000,000 on an occurrence basis, covering bodily injury and death to one or more persons and $100,000 in connection with property damage; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) such other insurance in such amounts as Landlord, any Mortgagee and/or any Lessor may reasonably require from time to time for premises comparable to the Premises.

(b) All insurance required to be carried by Tenant pursuant to the terms of this Lease (i) shall contain a provision that (A) no act or omission of Tenant shall affect or limit the obligation of the insurance company to pay the amount of any loss sustained, (B) the policy shall be noncancellable and/or no material change in coverage shall be made thereto unless Landlord, Lessors and Mortgagees shall have received 30 days' prior notice of the same by certified mail, return receipt requested, and (C) Tenant shall be solely responsible for the payment of all premiums under such policies and Landlord, Lessors and Mortgagees shall have no obligation for the payment thereof, and (ii) shall be effected under valid and enforceable policies issued by reputable and independent insurers permitted to do business in the State of New York, and rated in Best's Insurance Guide, or any successor thereto (or if there be none, an organization having a national reputation) as having a Best's Rating of "A-" and a "Financial Size Category" of at least "IX" or if such ratings are not then in effect, the equivalent thereof or such other financial rating as Landlord may at any time consider appropriate.

(c) On or prior to the Commencement Date, Tenant shall deliver to Landlord appropriate policies of insurance (each, a "<u>Policy</u>"), including evidence of waivers of subrogation, required to be carried by each party pursuant to this Article (the "<u>Policy</u>"). Evidence of each renewal or replacement of a Policy shall be delivered by Tenant to Landlord at least 10 days prior to the expiration of such Policy. The renewal or replacement of such Policy shall (i) convey to Landlord and any other named insured and/or additional insureds thereunder (the "<u>Insured Parties</u>") all the rights and privileges afforded under the Policy as primary insurance, and (ii) contains an unconditional obligation of the insurance company to advise all Insured Parties in writing by certified mail, return receipt requested, at least 30 days in advance of any termination of or change to the Policy that would affect the interest of any of the Insured Parties.

(d) All insurance required to be maintained by Tenant hereunder may be effected pursuant to blanket policies covering other locations. provided that such blanket policies provide that the amount of insurance allocable to the Premises shall at all times not be less than the amounts set forth above and that such amounts will not be reduced by any loss at any other location, and shall comply with the provisions of this <u>Section 13.1</u>.

Section 13.2 **<u>Landlord's Insurance Obligation</u>**. Landlord shall obtain and keep in full force and effect insurance against loss or damage by fire and other casualty to the Buildings and the improvements and betterments in the Buildings, including all Music Hall Alterations and Landlord's Music Hall Property as may be insurable under then available standard forms of "all-risk" insurance policies, in an amount equal to one hundred percent (100%) of the replacement value thereof (with customary deductibles) or in such lesser amount as will avoid co-insurance. Notwithstanding the foregoing, Landlord shall not be liable to Tenant for any failure to insure, replace or restore any Music Hall Alterations which Landlord would otherwise be obligated to restore hereunder unless, if Landlord has notified Tenant that Landlord's insurer requires Tenant to do any of the following, Tenant shall have delivered to Landlord plans and specifications of such Alterations to the extent required pursuant to Article 5 hereof or otherwise notified Landlord in reasonable detail of such Alterations, and shall maintain adequate records with respect to such Alterations to facilitate the adjustment of any insurance claims with respect thereto. Tenant shall reasonably cooperate with Landlord and Landlord's insurance companies in the adjustment of any claims for any damage to any of the Buildings or such Alterations. All insurance required to be maintained by Landlord hereunder may be effected pursuant to blanket policies covering other locations, provided that such blanket policies (i) provide the amounts set forth above and that such amounts will not be reduced by any loss at any other location, and (ii) shall comply with the provisions of this <u>Section 13.2</u>. Notwithstanding anything herein contained to the contrary, in no event shall Landlord carry separate or additional insurance, concurrent in form or contributing in the event of any loss or damage, with any insurance required to be maintained by Tenant with respect to Tenant's Property.

Section 13.3 **<u>Waiver of Subrogation</u>**. Landlord and Tenant shall each procure an appropriate clause in or endorsement to any property insurance covering the Premises, the Buildings and personal property, fixtures and equipment located therein, wherein the

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insurance companies shall waive subrogation or consent to a waiver of right of recovery, and Landlord and Tenant agree not to make any claim against, or seek to recover from, the other for any loss or damage to its property or the property of others resulting from fire and other hazards to the extent covered by such property insurance; provided, however, that the release, discharge, exoneration and covenant not to sue contained herein shall be limited by and coextensive with the terms and provisions of the waiver of subrogation or waiver of right of recovery. If the payment of an additional premium is required for the inclusion of, or consent to, a waiver of subrogation, each party shall advise the other, in writing, of the amount of any such additional premiums and the other party may pay such additional premium. If such other party shall not elect to pay such additional premium, then the first party shall not be required to obtain such waiver of subrogation or consent to waiver. If a waiver of subrogation is unobtainable, Landlord and Tenant shall each seek to have its respective insurance carrier name the other party as an additional insured on its property insurance policies, but not a loss payee. If the carrier in question shall agree to do so but only upon the payment of any additional premium, each party shall advise the other in writing of the amount of such additional premium and the other party may pay such additional premium. If the other party shall not elect to pay such additional premium, then the first party shall not be required to name the other party as an additional insured on its property policy. Tenant acknowledges that Landlord shall not carry insurance on, and shall not be responsible for, any loss suffered by Tenant due to interruption of Tenant's business.

**ARTICLE 14** 

**<u>DESTRUCTION–FIRE OR OTHER CAUSE</u>**

Section 14.1 **<u>Restoration</u>**. (a) If the Ancillary Space is damaged by fire or other casualty, or if either of the Ancillary Buildings is damaged such that Tenant is deprived of reasonable access to or the ability to use the Ancillary Space, Tenant shall give prompt notice to Landlord, and the core and shell of the Ancillary Building(s) or such access shall be repaired by Landlord, at its expense, to substantially the condition of the core and shell of the Ancillary Building(s) or such access prior to such damage, subject to the provisions of any Mortgage or Superior Lease, but Landlord shall have no obligation to repair or restore Tenant's Property or any Ancillary Space Alterations or other improvements to the Ancillary Space, all of which shall be restored by Tenant at its expense. So long as no Event of Default shall have occurred and be continuing, then until such time as Landlord shall substantially complete the core and shell work on the Ancillary Building or Buildings which are the subject of such fire or other casualty plus such additional time as may be reasonably required by Tenant to restore the Ancillary Space Alterations that were damaged by such fire or other casualty Fixed Rent, Tenant's Tax Payment and, if the Retail Space is affected, Tenant's Retail Operating Expense Payment, shall be abated with respect to such portion of the Ancillary Space as was damaged by such fire or other casualty; provided, however, that in all events such abatement shall terminate when Tenant reoccupies the portion of the Ancillary Space damaged by such fire or casualty for the conduct of its business. To the extent of any Tenant Delay in restoring Ancillary Space Alterations, Tenant's rent abatement with respect to such portion of the Ancillary Space shall be reduced by one day for each such day of Tenant Delay.

(b) If the Music Hall is damaged by fire or other casualty, Tenant shall give prompt notice to Landlord, and Landlord, at its expense, shall, subject to <u>Section 14.2</u>, rebuild the same to substantially its condition prior to the damage to the extent commercially practicable given the unique and landmark nature of the Music Hall, subject to the provisions of any Mortgage or Superior Lease, but Landlord shall have no obligation to repair or restore Tenant's Property and, at Landlord's request, Tenant shall, at its expense, promptly remove Tenant's Property from the Music Hall in order to facilitate the completion of Landlord's restoration work. To the extent that restoration of the Music Hall to substantially its condition prior to the damage is impracticable, Landlord shall consult with Tenant regarding the Music Hall restoration plans for the purpose of assuring that such restoration is in keeping with the quality and character of the Music Hall as it exists on the Execution Date, subject to commercial practicability. So long as no Event of Default shall have occurred and is continuing, then until such time as the restoration of the Music Hall has been substantially completed, Tenant's Fixed Rent and Tenant's Tax Payment shall be abated; provided, however, that to the extent restoration of the Music Hall is delayed by reason of a Tenant Delay, Tenant's rent abatement hereunder shall be reduced by one day for each such day of Tenant Delay.

Section 14.2 **<u>Mutual Termination Right</u>**. Notwithstanding anything to the contrary contained in <u>Section 14.1</u>, if the Music Hall, the 1270 Space, the 50 Rock Space or the Retail Space is substantially damaged or is rendered wholly or substantially untenantable and an independent architect or engineer selected by Landlord shall determine, as evidenced by a written opinion which Landlord agrees shall be delivered to Tenant within 90 days after such damage (the "<u>Restoration Opinion</u>"), that the restoration of any of the same to substantially its condition prior to such damage shall require more than (a) with respect to the Music Hall, 36 months and (b) with respect to the Ancillary Space, 18 months, to complete (including the time necessary to obtain all necessary approvals from the Commission, Landlord hereby agreeing to diligently pursue the receipt of any such approvals and Tenant agreeing to cooperate in all reasonable respects in connection with such pursuit), Landlord or Tenant may, not later than 30 days following the date of receipt of the Restoration Opinion, (i) with respect to the 1270 Space, the 50 Rock Space or the Retail Space, give the other party a notice terminating the Lease with respect to the 1270 Space, the 50 Rock Space or the Retail Space, whichever of such space is substantially damaged or (ii) with respect to the Music Hall, give the other party a notice terminating the Lease. If this Lease (or any portion thereof) is terminated pursuant to this <u>Section 14.2</u> or <u>Section 14.3</u>, (i) the Term (insofar as it relates to the portion of the Premises as

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to which the Lease is being terminated) shall expire upon the date set forth in the applicable notice of termination, which shall not be less than 30 days after such notice is given, and Tenant shall vacate the Premises (or the applicable portion thereof) and surrender the same to Landlord no later than the date set forth in the notice, (ii) Tenant's liability for Rent with respect to the applicable portion of the Premises shall cease as of the date of the damage, (iii) any prepaid Rent with respect to the applicable portion of the Premises for any period after the date of the damage shall be refunded by Landlord to Tenant and (iv) an appropriate final reconciliation shall be made of Percentage Rent for the Computation Year in which such termination occurred within 30 days following such termination. Notwithstanding the foregoing, Landlord shall not exercise the termination right set forth in this <u>Section 14.2</u> if, as part of Landlord's restoration of the Music Hall, Landlord shall intend to build a structure which is designed to house a concert hall.

Section 14.3 <u>Intentionally Omitted</u>.

Section 14.4 **<u>Final 24 Months</u>**. Notwithstanding anything set forth to the contrary in this Article, in the event that any substantial damage rendering a portion of the Premises located in any Building wholly untenantable occurs during the final 24 months of the Term, either Landlord or Tenant may terminate this Lease as to such portion, or if such damage occurs to the Music Hall, then as to the whole of the Premises by notice to the other party within 30 days after the occurrence of such damage and this Lease shall expire on the 30th day after the date of such notice. For purposes of this <u>Section 14.4</u>, the Premises located in any Building shall be deemed wholly untenantable if due to such damage, Tenant shall be precluded from using more than 50% of the Premises located in such Building for the conduct of its business and Tenant's inability to so use the Premises is reasonably expected to continue until at least the earlier of (i) the Expiration Date, or (ii) the 90th day after the date when such damage occurs.

Section 14.5 **<u>Waiver of Real Property Law § 227</u>**. This Article constitutes an express agreement governing any case of damage or destruction of the Premises or the Buildings by fire or other casualty, and Section 227 of the Real Property Law of the State of New York, which provides for such contingency in the absence of an express agreement, and any other law of like nature and purpose now or hereafter in force, shall have no application in any such case.

Section 14.6 **<u>Inability to Collect</u>**. Subject to <u>Section 13.3</u>, if Landlord or any Lessor or Mortgagee shall be unable to collect all of the insurance proceeds (including rent insurance proceeds) applicable to damage or destruction of the Premises or the Buildings by reason of any action or inaction on the part of Tenant or any Tenant Party (other than Tenant invitees), then, without prejudice to any other remedies which may be available against Tenant, (i) there shall be no abatement of Rent, (ii) Landlord shall have no obligation to restore the Premises (or any portion thereof) to any extent greater than that permitted by expending the portion of insurance proceeds which Landlord is able to collect and (iii) Tenant shall have none of the termination rights set forth in this Article.

Section 14.7 **<u>Landlord's Liability</u>**. Any Buildings' employee to whom any property shall be entrusted by or on behalf of Tenant shall be deemed to be acting as Tenant's agent with respect to such property and neither Landlord nor any of the Indemnitees shall be liable for any damage to such property, or for the loss of or damage to any property of Tenant by theft or otherwise. None of the Indemnitees shall be liable for any injury or damage to persons or property or interruption of Tenant's business resulting from fire or other casualty, any damage caused by other tenants or persons in the Buildings or by construction of any private, public or quasi-public work, or any latent defect in the Premises or in the Buildings (except that Landlord shall be required to repair the same to the extent provided in <u>Article 7</u>). No penalty shall accrue for delays which may arise by reason of adjustment of fire insurance on the part of Landlord or Tenant, or Unavoidable Delays, in connection with any repair or restoration of any portion of the Premises or of the Buildings. Landlord shall use reasonable efforts to minimize interference with Tenant's use and occupancy of the Premises during the performance of any such repair or restoration; provided, however, Landlord shall have no obligation to employ contractors or labor at overtime or other premium pay rates or to incur any other overtime costs or additional expenses whatsoever. Nothing in this <u>Section 14.7</u> shall affect any right of Landlord to be indemnified by Tenant under <u>Article 32</u> for payments made to compensate for losses of third parties.

Section 14.8 **<u>Windows</u>**. If at any time any windows of the Premises are temporarily closed, darkened or covered over by reason of repairs, maintenance, alterations or improvements to the Buildings, or any of such windows are permanently closed, darkened or covered over due to any Requirement, Landlord shall not be liable for any damage Tenant may sustain and Tenant shall not be entitled to any compensation or abatement of any Rent, nor shall the same release Tenant from its obligations hereunder or constitute an actual or constructive eviction.

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**ARTICLE 15** 

**<u>EMINENT DOMAIN</u>**

Section 15.1 (a) **<u>Total Taking</u>**. If all or substantially all of the Premises, the Buildings or the Real Property shall be acquired or condemned for any public or quasi-public purpose, this Lease shall terminate and the Term shall end as of the date of the vesting of title, with the same effect as if such date were the Expiration Date.

(b) **<u>Partial Taking</u>**. If only a part of the Premises, the Buildings or the Real Property shall be acquired or condemned, then except as provided in this <u>Article 15</u>, this Lease and the Term shall continue in full force and effect, provided that from and after the date of the vesting of title, Fixed Rent and Tenant's Tax Payment shall be modified to reflect the reduction of the Premises and/or the Buildings as a result of such acquisition or condemnation.

(c) **<u>Landlord's Termination Right</u>**. Whether or not the Premises are affected, Landlord may give to Tenant, within 60 days following the date upon which Landlord receives notice that all or a material portion of the Buildings or the Real Property has been acquired or condemned, a notice of termination of this Lease insofar as it relates to the Building being affected, or if the Building being affected is all or substantially all of the Music Hall, then as to all of the Premises, provided that, with respect to the Ancillary Buildings, Landlord elects to terminate leases (including this Lease) affecting at least 50% of the rentable area of the Ancillary Buildings (excluding any rentable area leased by Landlord or its Affiliates) which are the subject of the Landlord's termination right. For purposes hereof, "<u>material</u>" shall mean 20% or more of the rentable area of such Building or all reasonable means of access to such Building.

(d) **<u>Tenant's Termination Right</u>**. If the part of the Buildings or the Real Property so acquired or condemned contains a substantial part of the total area of the portion of the Premises located in such Building immediately prior to such acquisition or condemnation, or if, by reason of such acquisition or condemnation, Tenant no longer has reasonable means of access to the Premises, Tenant may terminate this Lease as to such portion of the Premises by notice to Landlord given within 60 days following the date upon which Tenant received notice of such acquisition or condemnation; provided, however, that if the portion of the Premises so affected shall be the Music Hall, then Tenant's right of termination shall apply to the whole of the Premises. Furthermore, if by virtue of the nature of the space in the Music Hall which is acquired or condemned, the space remaining in the Music Hall after giving effect to such acquisition or condemnation cannot economically be used for its intended purpose, following the date upon which Tenant received notice of such acquisition or condemnation, Tenant may terminate this Lease by notice to Landlord. If Tenant so notifies Landlord, this Lease shall terminate and the Term shall end and expire upon the date set forth in the notice as to the portion of the Premises covered thereby, which date shall not be more than 30 days following the giving of such notice. If a part of the Premises shall be so acquired or condemned and this Lease and the Term shall not be terminated in accordance with this Section, Landlord, at Landlord's expense but without requiring Landlord to spend more than it collects as an award, shall, subject to the provisions of any Mortgage or Superior Lease, restore such portion of the Premises not so acquired or condemned to a self-contained unit substantially equivalent (with respect to character, quality, appearance and services) to that which existed immediately prior to such acquisition or condemnation, to the extent commercially practicable to do so, in which case Tenant shall be obligated to restore Tenant's Property relating to such portion of the Premises to the condition which existed immediately prior to such acquisition or condemnation.

(e) **<u>Apportionment of Rent</u>**. Upon any termination of this Lease pursuant to the provisions of this Article as to all or a portion of the Premises, Fixed Rent and Tenant's payments for Taxes shall be apportioned as of, and shall be paid or refunded up to and including, the date of such termination.

Section 15.2 **<u>Awards</u>**. Upon any acquisition or condemnation of all or any part of the Buildings or the Real Property, Landlord shall receive the entire award for any such acquisition or condemnation, and Tenant shall have no claim against Landlord or the condemning authority for the value of any unexpired portion of the Term, Tenant's Alterations or improvements; and Tenant hereby assigns to Landlord all of its right in and to such award. Nothing contained in this Article shall be deemed to prevent Tenant from making a separate claim in any condemnation proceedings for the then value of any Tenant's Property included in such taking and for any moving expenses, provided any such award is in addition to, and does not result in a reduction of, the award made to Landlord.

Section 15.3 **<u>Temporary Taking</u>**. If all or any part of the Premises is acquired or condemned for a period of 36 months or less during the Term for any public or quasi-public use or purpose, Tenant shall give prompt notice to Landlord, and the Term shall not be reduced or affected in any way, and Tenant shall continue to pay all Rent payable by Tenant without reduction or abatement and to perform all its other obligations under this Lease, except to the extent prevented from doing so by the condemning authority. Tenant shall be entitled to receive any award or payment from the condemning authority for such use, which award shall be received, held and applied by Tenant as a trust fund for payment of Rent falling due, provided that if the acquisition or condemnation extends beyond the Term, Landlord shall receive the entire portion of such award attributable to the period after the Term.

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**ARTICLE 16** 

**<u>ASSIGNMENT AND SUBLETTING</u>**

Section 16.1 (a) **<u>No Assignment or Subletting</u>**. Tenant shall not assign, mortgage, pledge, encumber, or otherwise transfer this Lease, whether by operation of law or otherwise, and shall not sublet (or underlet), or permit, or suffer the Premises or any part thereof to be used or occupied by others (whether for desk space, mailing privileges or otherwise), without Landlord's prior consent in each instance (which consent shall be granted or denied in Landlord's sole and absolute discretion); provided, however, that the use of the Music Hall for its Permitted Use (i.e. allowing various performances to take place in the Music Hall under the auspices of Tenant) and the granting of subleases, licenses and concessions to persons occupying not more than 10% of the Music Hall consistent with customary practice in the entertainment business shall not be deemed a violation of this <u>Section 16.1</u>. Any assignment, sublease, mortgage, pledge, encumbrance or transfer in contravention of the provisions of this Article shall be void.

(b) **<u>Collection of Rent</u>**. If, without Landlord's consent, this Lease is assigned, or any part of the Premises is sublet or occupied by anyone other than Tenant, or this Lease or the Premises or any of Tenant's Property is encumbered (by operation of law or otherwise), Landlord may collect rent from the assignee, subtenant or occupant and apply the net amount collected to the Rent herein reserved. No such collection of rent shall be deemed to be (i) a waiver of the provisions of this Article, (ii) an acceptance of the assignee, subtenant or occupant as tenant, or (iii) a release of Tenant from the performance of any of the terms, covenants and conditions to be performed by Tenant under this Lease, including the payment of Rent.

(c) **<u>No Waiver</u>**. Landlord's consent to any assignment or subletting shall not relieve Tenant from the obligation to obtain Landlord's express consent to any further assignment or subletting. In no event shall any permitted subtenant assign or encumber its sublease or further sublet any portion of its sublet space, or otherwise suffer or permit any portion of the sublet space to be used or occupied by others. The listing of any name other than that of Tenant in the directory, or on the doors of the Premises or elsewhere, shall not vest in any such named party any right or interest in this Lease or in the Premises, nor be deemed to constitute Landlord's consent to any assignment or transfer of this Lease, or to any sublease of the Premises, or to the use or occupancy thereof by others.

Section 16.2 **<u>Conditions to Assignment or Subletting</u>**. (a) Landlord shall either grant or decline its consent to the proposed assignment or subletting within 30 days after Landlord's receipt of (1) a true and complete statement detailing the identity of the proposed assignee or subtenant, the nature of its business and its proposed use of the Premises, (2) current financial information with respect to the proposed assignee or subtenant including its most recent financial statements and (3) any other information Landlord may reasonably request.

(b) With respect to each and every assignment and/or subletting authorized by Landlord under the provisions of this Lease, it is further agreed that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the form of the proposed assignment or sublease shall be reasonably satisfactory to Landlord and shall comply with the provisions of this Article;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no sublease shall be for a term ending later than one day prior to the Expiration Date of this Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no sublease shall be delivered to any subtenant, and no subtenant shall take possession of the Premises, until an executed counterpart of such sublease has been delivered to Landlord and approved in writing by Landlord as provided in <u>Section 16.2(a)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if a monetary Event of Default shall occur at any time prior to the effective date of such assignment or subletting or a material, nonmonetary Event of Default shall have occurred and, in either ease, Landlord shall have commenced a summary proceeding or other legal proceeding against Tenant by reason thereof prior to the effective date of such assignment, then Landlord's consent thereto, if previously granted, shall be immediately deemed revoked without further notice to Tenant, and if such assignment or subletting would have been permitted without Landlord's consent pursuant to <u>Section 16.5</u>, such permission shall be void and without force and effect, and in either such case, any such assignment or subletting shall constitute a further Event of Default hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) each sublease shall be subject and subordinate to this lease and to the matters to which this Lease is or shall be subordinate, it being the intention of Landlord and Tenant that Tenant shall assume and be liable to Landlord for any and all acts and omissions of all subtenants and anyone claiming under or through any subtenants which, if performed or omitted by Tenant, would be a default under this Lease; and Tenant and each subtenant shall be deemed to have agreed that upon termination of the Lease, Tenant has hereby assigned to Landlord, and Landlord may, at its option, accept such assignment of, all right, title and interest of Tenant as sublandlord under such sublease, together with all modifications, extensions and renewals thereof then in effect, and such subtenant shall, at Landlord's option, attorn to Landlord pursuant to the then executory provisions of such sublease, except that Landlord shall not be (A) liable for any previous act or omission of Tenant under such sublease, (B) subject to any counterclaim, offset or defense not expressly provided in such sublease, which theretofore accrued to such subtenant against

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Tenant, (C) bound by any previous modification of such sublease not consented to by Landlord, or by any prepayment of more than one month's rent and additional rent under such sublease, (D) bound to return such subtenant's security deposit, if any, except to the extent that Landlord shall receive actual possession of such deposit and such subtenant shall be entitled to the return of all or any portion of such deposit under the terms of its sublease, or (E) obligated to make any payment to or on behalf of such subtenant, or to perform any work in the subleased space or the Buildings, or in any way to prepare the subleased space for occupancy, beyond Landlord's obligations under this Lease. The provisions of this <u>Section 16.2 (b)(v)</u> shall be self-operative, and no further instrument shall be required to give effect hereto, provided that the subtenant shall execute and deliver to Landlord any instruments Landlord may reasonably request to evidence and confirm such subordination and attornment.

Section 16.3 **<u>No Release of Tenant; Indemnification of Landlord</u>**. Notwithstanding any assignment or subletting or any acceptance of Rent by Landlord from any assignee or subtenant, Tenant shall remain fully liable for the payment of all Rent due and for the performance of all other terms, covenants and conditions contained in this Lease on Tenant's part to be observed and performed, and any default under any term, covenant or condition of this Lease by any subtenant shall be deemed a default under this Lease by Tenant.

Tenant shall indemnify, defend, protect and hold harmless Landlord from and against any and all Losses (as defined in <u>Section 32.1(b)</u>) resulting from any claims that may be made against Landlord by the proposed assignee or subtenant or by any brokers or other Persons claiming a commission or similar compensation in connection with the proposed assignment or sublease, irrespective of whether Landlord shall give or decline to give its consent to any proposed assignment or sublease, or if Landlord shall exercise any of its options under this <u>Article 16</u>; provided, that such indemnity shall not extend to post-assignment claims by any proposed assignee or subtenant.

Section 16.4 **<u>Tenant's Failure to Complete</u>**. If Landlord consents to a proposed assignment or sublease and Tenant fails to execute and deliver to Landlord such assignment or sublease within 270 days after the giving of such consent, then Tenant shall again comply with all of the provisions and conditions of <u>Section 16.2</u> hereof before assigning this Lease or subletting all or part of the Premises.

Section 16.5 (a) **<u>Transfers</u>**. If Tenant is a corporation, the transfer by one or more transfers, directly or indirectly, by operation of law or otherwise, of a majority of the stock of Tenant shall be deemed a voluntary assignment of this Lease; provided, however, that the provisions of this Article shall not apply to the transfer of shares of stock of Tenant if and so long as Tenant is publicly traded on a nationally recognized stock exchange. For purposes of this Section the term "transfers" shall be deemed to include the issuance of new stock or of treasury stock which results in a majority of the stock of Tenant being held by a Person or Persons that do not hold a majority of the stock of Tenant on the date hereof. If Tenant is a partnership, the transfer by one or more transfers, directly or indirectly, by operation of law or otherwise, of a majority interest in the partnership or otherwise in violation of <u>Section 29.2</u> of this Lease, shall be deemed a voluntary assignment of this Lease. If Tenant is a limited liability company, trust, or any other legal entity (including a corporation or partnership), the transfer by one or more transfers, directly or indirectly, of Control of such entity, however characterized, shall be deemed a voluntary assignment of this Lease. Notwithstanding the foregoing, the transfer of interests in MSG (or any entity which is a successor to MSG in accordance with the provisions of this Lease) by the owners of such interests shall not be deemed an assignment hereunder as long as the ownership interests held by MSG (or any such successor entity) in Tenant do not constitute more than 50% of the assets of MSG or any such successor entity. Following the 5<sup>th</sup> anniversary of the Rent Commencement Date, the provisions of <u>Section 16.1</u> shall not apply to (A) transactions with an entity into or with which Tenant is merged or consolidated or to which substantially all of Tenant's assets are transferred or (B) a transfer of the majority interest in Tenant (regardless of whether Tenant is a corporation, limited liability company or partnership or other entity) (a "<u>Transfer of Control</u>") so long as (i) such transfer was made for a legitimate independent business purpose and not for the purpose of transferring this Lease as opposed to the transfer of Tenant's business, (ii) the successor to Tenant or the transferee following such Transfer of Control, as applicable (either such successor or transferee being hereinafter referred to as the "<u>Successor Tenant</u>") has a net worth computed in accordance with generally accepted accounting principles consistently applied ("<u>Net Worth</u>") of not less than [\*\*\*\*\*] and a cash flow on an annualized basis computed in accordance with generally accepted accounting principles consistently applied ("<u>Cash Flow</u>") of not less than [\*\*\*\*\*]. (iii) proof satisfactory to Landlord of such Net Worth and Cash Flow is delivered to Landlord at least 10 days prior to the effective date of any such transaction and (iv) the Successor Tenant shall have (1) a high quality reputation in the general business community and upstanding character and (2) (A) a high quality reputation within the entertainment industry for sound management and business practices and integrity and (B) at least 10 years of experience in the operation of a live entertainment venue comparable to the Music Hall. If the Successor Tenant shall fail to satisfy the requirements set forth in clause (iv) (2) above. then either an Affiliate of Successor Tenant which satisfies such requirements shall be the manager of Tenant or, if no such Affiliate shall exist, the Successor Tenant shall covenant and agree to retain the then existing management of Tenant or replace the then existing management with a manager which satisfies the requirements set forth in clause (iv) (2) above. Tenant may also, upon prior notice to and with the consent of Landlord, which shall not be unreasonably withheld, permit any Person which Controls. is Controlled by, or is under common Control with Tenant (a "<u>Related Entity</u>") to sublet all (but not part) of the Premises for any Permitted Use, provided the Related Entity is in Landlord's reasonable judgment of a character and engaged in a business which is in keeping with the standards for the Buildings and the Center and the occupancy thereof. Such sublease shall not be deemed to vest in

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any such Related Entity any right or interest in this Lease or the Premises nor shall it relieve, release, impair or discharge any of Tenant's obligations hereunder. Notwithstanding the foregoing, Tenant shall have no right to assign this Lease or sublease all or any portion of the Premises without Landlord's consent pursuant to this <u>Section 16.5</u> if Tenant is not the original Tenant named in this Lease or a Person who acquired Tenant's interest in this Lease in a transaction approved by Landlord or permitted under this <u>Section 16.5</u>.

(b) **<u>Applicability</u>**. The limitations set forth in this <u>Section 16.5</u> shall apply to subtenant(s) and assignee(s) of this Lease, if any, and any transfer by any such entity in violation of this <u>Section 16.5</u> shall be a transfer in violation of <u>Section 16.1</u>.

(c) **<u>Modifications; Takeover Agreements</u>**. Any modification, amendment or extension of a sublease and/or any other agreement by which a landlord of a building other than the Buildings agrees to assume or perform the obligations of Tenant under this Lease shall be deemed a sublease for the purposes of <u>Section 16.1</u> hereof.

Section 16.6 **<u>Assumption of Obligations</u>**. Any assignment or transfer, whether made with Landlord's consent or without Landlord's consent, if and to the extent permitted hereunder, shall not be effective unless and until the assignee executes, acknowledges and delivers to Landlord (i) an agreement in form and substance reasonably satisfactory to Landlord whereby the assignee (A) assumes Tenant's obligations under this Lease from after the date of such assignment, other than (x) in the case of a sale of the assets of Tenant, in which event such assumption shall be absolute or (y) in the case of a merger of Tenant, in which event the Successor Tenant shall execute a confirmatory instrument in form reasonably satisfactory to Landlord confirming its continuing liability as Tenant under this Lease or (z) in the case of a Transfer of Control of Tenant, in which event the transferee, having the required Net Worth and Cash Flow, shall execute a guaranty in substantially the same form as the Guaranty and which from and after the date of such Transfer of Control shall be deemed the Guaranty for purposes of this Lease with respect to obligations thereafter accruing and (B) agrees that, notwithstanding such assignment or transfer, the provisions of <u>Section 16.1</u> hereof shall be binding upon it in respect of all future assignments and transfers, and (ii) certificates or policies of insurance as required under <u>Article 13</u>.

Section 16.7 **<u>Tenant's Liability</u>**. The joint and several liability of Tenant and any successors-in-interest of Tenant and the due performance of Tenant's obligations under this Lease shall not be discharged, released or impaired by any agreement or stipulation made by Landlord, or any grantee or assignee of Landlord, extending the time, or modifying any of the terms and provisions of this Lease, or by any waiver or failure of Landlord, or any grantee or assignee of Landlord, to enforce any of the terms and provisions of this Lease; provided, however, that the liability of Tenant or any such successors-in-interest to Tenant shall be limited to the obligations set forth in this Lease as the same existed while such party was Tenant without regard to any subsequent modifications which increase the liability of Tenant under this Lease.

Section 16.8 **<u>Lease Not Affirmed or Rejected</u>**. If at any time after an assignment by Tenant named herein, this Lease is not affirmed on or before confirmation of a plan of reorganization or rejected in any proceeding of the types described in <u>Section 19.1(h)</u> or (i) or any similar proceeding, or upon a termination of this Lease due to any such proceeding, Tenant named herein, upon request of Landlord given within 30 days after such disaffirmance, rejection or termination (and actual notice thereof to Landlord in the event of a disaffirmance or rejection or in the event of termination other than by act of Landlord), shall (i) pay to Landlord all Rent and other charges due and owing by the assignee to Landlord under this Lease to and including the date of such disaffirmance, rejection or termination, and (ii) as "tenant," enter into a new lease of the Premises with Landlord for a term commencing on the effective date of such disaffirmance, rejection or termination and ending on the Expiration Date, unless sooner terminated in accordance therewith, at the same Rent and upon the then executory terms, covenants and conditions contained in this Lease, except that (A) the rights of Tenant named herein under the new lease shall be subject to the possessory rights of the assignee under this Lease and the possessory rights of any Persons claiming through or under such assignee or by virtue of any statute or of any order of any court, (B) such new lease shall require all defaults which are susceptible of being cured by the Tenant named herein existing under this Lease to be cured by Tenant named herein with due diligence, and (C) such new lease shall require Tenant named herein to pay Rent on the same terms and conditions set forth herein which, had this Lease not been so disaffirmed, rejected or terminated, would have become due under the provisions of this Lease after the date of such disaffirmance, rejection or termination with respect to any period prior thereto. If Tenant named herein defaults in its obligations to enter into such new lease for a period of 10 days after Landlord's request, then, in addition to all other rights and remedies by reason of default, either at law or in equity, Landlord shall have the same rights and remedies against Tenant named herein as if it had entered into such new lease and such new lease had thereafter been terminated as of the commencement date thereof by reason of Tenant's default thereunder.

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**ARTICLE 17** 

**<u>ELECTRICITY</u>**

Section 17.1 (a) **<u>Electricity for Ancillary Space</u>**. Landlord shall redistribute or furnish electricity to or for the use of Tenant in the Ancillary Space for the operation of Tenant's electrical systems and equipment in the Ancillary Space, at a level sufficient to accommodate a demand load of six (6) watts per usable square foot (the "<u>Permitted Capacity</u>"). Tenant shall pay to Landlord, on demand from time to time but no more frequently than monthly, for its consumption of electricity at the Ancillary Space, a sum equal to [\*\*\*\*\*] of the product obtained by multiplying (i) the Cost Per Kilowatt Hour, by (ii) the actual number of kilowatt hours of electric current consumed by Tenant in such billing period. "<u>Cost Per Kilowatt Hour</u>" means the total cost payable by Landlord to the utility providing electricity to the Center during a particular billing period, including energy charges, demand charges, surcharges, time-of-day charges, fuel adjustment charges, rate adjustment charges, taxes, including sales taxes, (regardless of whether included in the utility company's charges or paid separately by Landlord), rebates and any other factors used by the utility company in computing its charges to Landlord, divided by the total kilowatt hours purchased by Landlord to provide electricity to the Center during such period. If any tax is imposed upon Landlord's receipts from the sale or resale of electricity to Tenant, Tenant shall reimburse Landlord for such tax, if and to the extent permitted by law and to the extent attributable to Tenant's usage. Landlord shall install a meter, at Tenant's expense, to measure Tenant's consumption of electricity in the Ancillary Space, which meter shall be maintained by Landlord at Tenant's expense. Bills for such amounts shall be rendered to Tenant at such times as Landlord may elect, but not more frequently than monthly. For any period during which such meter or meters are not installed or are not operational in the Ancillary Space, the monthly Fixed Rent with respect to the Ancillary Space shall be increased by an amount equal to the product of [\*\*\*\*\*], subject to adjustment for any increases in electric rates or taxes, and (B) the number of rentable square feet in the applicable portion of the Ancillary Space. Tenant shall have the right at reasonable times and upon reasonable notice to audit such of Landlord's records as may be directly applicable to the computation of Tenant's electricity charges at Landlord's offices by a reputable, independent accounting firm, provided Tenant and such firm agree to keep such firm's findings confidential in accordance with a confidentiality agreement reasonably satisfactory to Landlord.

(b) **<u>Electricity for Music Hall</u>**. Tenant shall (i) contract directly with the public utility company furnishing electric service to the Music Hall for electric service to the Music Hall, (ii) maintain separate meters in the Music Hall to measure Tenant's consumption of electricity in the Music Hall and (iii) install and maintain at its sole cost and expense any equipment necessary to distribute electricity in the Music Hall.

Section 17.2 **<u>Use of Electricity</u>**. Tenant shall at all times comply with the rules and regulations of the utility company supplying electricity to the Buildings. With respect to the Ancillary Space, Tenant shall not use any electrical equipment which would exceed the Permitted Capacity. With respect to the Ancillary Space, Tenant shall not make or perform, or permit the making or performance of, any Ancillary Space Alterations to wiring installations or other electrical facilities in or serving the Ancillary Space, or make any additions to the office equipment or other appliances in the Ancillary Space which utilize electrical energy (other than equipment customarily used in a small office or, with respect to the 1270 Space after the Initial Alterations a club) without the prior consent of Landlord, in each instance, and in compliance with this Lease. If Tenant shall desire any additional risers or other proper and necessary equipment required to furnish electricity to the Ancillary Space, the same shall be installed by Landlord at Tenant's expense (equal to Landlord's actual out-of-pocket reasonable, third-party costs supported by reasonable back-up documentation), provided that such installation shall be in compliance with this Lease, all Requirements and the other leases in the Ancillary Buildings.

Section 17.3 **<u>Service Disruption</u>**. Except as otherwise provided in <u>Section 12.5</u>, Landlord shall not be liable in any way to Tenant for any failure, defect or interruption of, or change in the supply, character and/or quantity of, electric service furnished to the Premises for any reason except if attributable to the negligence or willful misconduct of Landlord, nor shall there be any allowance to Tenant for a diminution of rental value, nor shall the same constitute an actual or constructive eviction of Tenant, in whole or in part, or relieve Tenant from any of its Lease obligations, and no liability shall arise on the part of Landlord by reason of inconvenience, annoyance or injury to business, whether electricity is provided by public or private utility or by any electricity generation system owned and operated by Landlord. Landlord shall use reasonable efforts to minimize interference with Tenant's use and occupancy of the Premises as a result of any such failure, defect or interruption of, or change in the supply, character and/or quantity of, electric service, provided that Landlord shall have no obligation to employ contractors or labor at overtime or other premium pay rates or to incur any other overtime costs or additional expenses whatsoever.

Section 17.4 **<u>Discontinuance of Service</u>**. Landlord reserves the right to discontinue furnishing electricity to Tenant in the Ancillary Space on not less than 30 days notice to Tenant, if Landlord is required to do so under applicable Requirements. If Landlord is compelled to discontinue furnishing electricity to Tenant, this Lease shall continue in full force and effect and shall be unaffected thereby except that from and after the effective date of such discontinuance, Landlord shall not be obligated to furnish electricity to Tenant hereunder. If Landlord so discontinues furnishing electricity, Tenant shall arrange to obtain electricity directly from any utility company or other electricity provider serving the Ancillary Space to the extent available, suitable and safe for such purposes. All

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equipment which may be required to obtain electricity of substantially the same quantity, quality and character shall be installed by Landlord at the sale cost and expense of Tenant (to the extent of Landlord's actual, third party, out of pocket costs and provided Landlord furnishes reasonable supporting documentation with respect thereto) if (A) Landlord is compelled to discontinue such service by the utility company or pursuant to applicable Requirements, or (B) such discontinuance arises solely out of the acts or omissions of Tenant. Landlord will not voluntarily discontinue furnishing electricity to Tenant until Tenant is able to receive electricity directly from the utility company or other company servicing 1270 Avenue of the Americas, unless the utility company or other company is not prepared to furnish electricity to the 1270 Space on the date required as a result of Tenant's delay or negligence in arranging for service, Tenant's refusal to provide the utility company or other company with a deposit or other security requested by the utility company, or Tenant's refusal to take any other action requested by the utility company or other company.

**ARTICLE 18** 

**<u>ACCESS TO PREMISES</u>**

Section 18.1 **<u>Landlord's Access</u>**. (a) Tenant shall permit Landlord, Landlord's agents, utility companies and other service providers servicing the Buildings to erect, use and maintain concealed ducts, pipes and conduits in and through the Ancillary Space, provided such use does not cause the usable area of the Ancillary Space to be reduced beyond a *de minimis* amount. Landlord shall promptly repair any damage to the Ancillary Space or Tenant's Property caused by any work performed pursuant to this Article; in making such repairs, Landlord shall use high quality materials and perform such repairs in a first class manner and shall, to the extent practicable, match the then existing finishes in such portions of the Ancillary Space or Tenant's Property, as applicable.

(b) Landlord, any Lessor or Mortgagee and any other party designated by Landlord and their respective agents shall have the right to enter the Premises at all reasonable times, upon reasonable notice (which notice may be oral) except in the case of emergency, (i) to examine the Premises, (ii) to show the Premises to prospective purchasers, Mortgagees or Lessors of the Buildings and their respective agents and representatives or others, and, during the last 12 months of the Term, to prospective lessees of the Premises, and (iii) to make such repairs, alterations or additions to the Premises or the Buildings (A) as Landlord may reasonably deem necessary or desirable (except that, as to the Premises, only as are reasonably necessary), (B) which Landlord may reasonably elect to perform following Tenant's failure to perform, or (C) to comply with any Requirements which are Landlord's responsibility, and Landlord shall be allowed to take all material into the Premises that may be required for the performance of such work without the same constituting an actual or constructive eviction of Tenant in whole or in part and without any abatement of Rent; provided that Landlord shall use reasonable efforts to remove those materials which are not required to remain in the Premises between such work sessions. Any party who accompanies Landlord to the Premises shall be accompanied by a representative of Tenant (provided Tenant makes such representative available) but Landlord shall have no obligation to disclose such party's name, home or business affiliation or explain the reason for such party's visit to the Premises. Except in the case of an emergency, Landlord shall not enter the Premises during times that would (aa) interfere with any of Tenant's productions being staged at the Music Hall or (bb) threaten the health or safety of occupants or invitees of the Premises. If by reason of Landlord's failure to perform an obligation which is imposed on Landlord under this Lease, Tenant is either denied access to the Premises or the health and safety of occupants or invitees of the Premises are threatened, Landlord shall, to the extent practicable, perform such obligation on an overtime basis until access is restored or such threat is removed.

(c) All parts (except surfaces facing the interior of the Premises) of all walls, windows and doors bounding the Premises, including exterior Building walls, exterior core corridor walls, and doors and entrances (other than doors and entrances solely connecting areas within the Premises), all balconies, terraces and roofs adjacent to the Premises, (other than all space within the Music Hall used for shafts, stacks, risers, fan rooms, electrical and communications closets, stairways, mail chutes, conduits and other mechanical facilities, Independent Systems and Music Hall facilities) are not part of the Premises, and Landlord shall have the use thereof and access thereto through the Premises for the purposes of Building operation, maintenance, alteration and repair.

Section 18.2 **<u>Alterations to Buildings</u>**. Landlord has the right at any time to (a) change the name, number or designation by which the Ancillary Buildings or the Center are commonly known or (b) alter the Ancillary Buildings or the Center to change the arrangement or location of entrances or passageways, doors and doorways, and corridors, elevators, stairs, toilets, or other public parts of the Ancillary Buildings without any such acts constituting an actual or constructive eviction and without incurring any liability to Tenant, so long as such changes do not (i) deprive Tenant of access to the Ancillary Space or (ii) affect in any material respect the internal connections between the Ancillary Space and the Music Hall. Landlord shall use reasonable efforts to minimize interference with Tenant's use and occupancy of the Premises during the making of such changes or alterations, provided that Landlord shall have no obligation to employ contractors or labor at overtime or other premium pay rates or to incur any other overtime costs or additional expenses whatsoever.

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**ARTICLE 19** 

**<u>DEFAULT</u>**

Section 19.1 **<u>Tenant's Defaults</u>**. Each of the following events shall be an "<u>Event of Default</u>" hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Tenant fails to pay when due any installment of Fixed Rent or Additional Rent and such default continues for ten days after Landlord's notice of such default is given to Tenant; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Tenant defaults in observing or performing the provisions of <u>Section 3.1(a)</u> (subject to Tenant's right to challenge the default as set forth in <u>Section 3.1(a)</u>), and such default continues for 3 Business Days after notice; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except where a shorter period may be provided in this Lease, Tenant fails to observe or perform any other term, covenant or condition of this Lease to be observed or performed by Tenant and such failure continues for more than 30 days after notice by Landlord to Tenant of such default, or such default is of such a nature that it cannot be completely remedied within 30 days and Tenant fails to commence to remedy such failure within 30 days, and thereafter fails to diligently prosecute to completion all steps necessary to remedy such default; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Intentionally Omitted; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Tenant's interest in this Lease shall devolve upon or pass to any Person, whether by operation of law or otherwise, except as expressly permitted under <u>Article 16</u> hereof and Tenant shall not have cured such default within 30 days after receipt of notice from Landlord regarding the same; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Tenant admits in writing its inability to, pay its debts as they become due; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Tenant files a voluntary petition in bankruptcy or insolvency, or is adjudicated a bankrupt or insolvent, or files any petition or answer seeking any reorganization, liquidation, dissolution or similar relief under any present or future federal bankruptcy act or any other present or future applicable federal, state or other statute or law, or makes an assignment for the benefit of creditors or seeks or consents to or acquiesces in the appointment of any trustee, receiver, liquidator or other similar official for Tenant or for all or any part of Tenant's property; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) if, within 120 days after the commencement of any proceeding against Tenant, whether by the filing of a petition or otherwise, seeking bankruptcy, insolvency, reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under the present or any future federal bankruptcy act or any other present or future applicable federal, state or other statute or law, such proceeding shall not have been dismissed, or if, within 120 days after the appointment of any trustee, receiver, liquidator or other similar official for Tenant, or for all or any part of Tenant's property, without the consent or acquiescence of Tenant, such appointment shall not have been vacated or otherwise discharged, or if any lien, execution or attachment or other similar filing shall be made or issued against Tenant or any of Tenant's property pursuant to which the Premises shall be taken or occupied or attempted to be taken or occupied by someone other than Tenant; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Tenant shall fail to comply with the retail covenants set out in <u>Exhibit F</u> to this Lease and such failure shall continue for five (5) Business Days after notice from Landlord to Tenant; <u>provided</u>, that Tenant shall not be in default under this clause (i) if, within such five (5) Business Day period, Tenant commences to remedy such default and thereafter diligently prosecutes to completion all steps necessary to remedy such default, but in no event shall such default continue for more than 15 days after Landlord's initial notice regarding such default; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) if the Guaranty shall cease to be in full force and effect for any reason other than the termination of the Guaranty in accordance with the provisions of Section 2(b) of the Guaranty; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) if the Guarantor (as defined <u>Article 35</u>) shall default under the Guaranty beyond any applicable notice and grace period; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) if the Guarantor (i) fails to (A) maintain a Net Worth of [\*\*\*\*\*] or (B) a Cash Flow of [\*\*\*\*\*] and (ii) fails to deliver to Landlord a Letter of Credit (as defined in the Guaranty) within the time period set forth in the Guaranty.

Upon the occurrence of any one or more of such Events of Default, Landlord may, at its sole option, give to Tenant three days' notice of cancellation of this Lease, in which event this Lease and the Term shall come to an end and expire (whether or not the Term shall have commenced) upon the expiration of such three day period with the same force and effect as if the date set forth in the notice was the Expiration Date stated herein; and Tenant shall then quit and surrender the Premises to Landlord, but Tenant shall remain liable for damages as provided in <u>Article 20</u> hereof.

Section 19.2 **<u>Tenant's Liability</u>**. If, at any time. (i) Tenant shall be comprised of two or more Persons, (ii) Tenant's obligations under this Lease shall have been guaranteed by any Person other than Tenant, or (iii) Tenant's interest in this Lease shall have been assigned, the word "Tenant," as used in <u>Sections 19.1(g)</u>, <u>(h)</u> and <u>(i)</u>, shall be deemed to mean any one or more of the Persons primarily or secondarily liable for Tenant's obligations under this Lease. Any monies received by Landlord from or on behalf of

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Tenant during the pendency of any proceeding of the types referred to in this Article shall be deemed paid as compensation for the use and occupancy of the Premises and the acceptance of any such compensation by Landlord shall not be deemed an acceptance of Rent or a waiver on the part of Landlord of any rights under this Lease.

**ARTICLE 20** 

**<u>REMEDIES AND DAMAGES</u>**

Section 20.1 (a) **<u>Landlord's Remedies</u>**. If any Event of Default occurs, and this Lease terminates as provided in <u>Article 19</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **<u>Surrender of Possession</u>**. Tenant shall quit and surrender the Premises to Landlord, and Landlord and its agents may, at any time after such termination, re-enter the Premises or any part thereof, without notice, either by summary proceedings, or by any other applicable action or proceeding, or otherwise in accordance with applicable legal proceedings, and may repossess the Premises and dispossess Tenant and any other Persons from the Premises and remove any and all of their property and effects from the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **<u>Landlord's Reletting</u>**. Landlord, at Landlord's option, may relet all or any part of the Premises from time to time, either in the name of Landlord or otherwise, to such tenant or tenants, for any term ending before, on or after the Expiration Date, at such rental and upon such other conditions (which may include concessions and free rent periods) as Landlord, in its sole discretion, may determine. Landlord shall have no obligation to and shall not be liable for refusal or failure to relet or, in the event of any such reletting, for refusal or failure to collect any rent due upon any such reletting; and no such refusal or failure shall relieve Tenant of. or otherwise affect, any liability under this Lease. Landlord, at Landlord's option, may make such alterations, decorations and other physical changes in and to the Premises as Landlord, in its sole discretion, considers advisable or necessary in connection with such reletting or proposed reletting. without relieving Tenant of any liability under this Lease or otherwise affecting any such liability.

(b) **<u>Other Remedies</u>**. Upon the breach or threatened breach by Tenant. or any Persons claiming through or under Tenant, of any term, covenant or condition of this Lease, Landlord shall have the right to enjoin such breach and to invoke any other remedy allowed by law or in equity as if re-entry, summary proceedings and other special remedies were not provided in this Lease for such breach. The rights to invoke the remedies set forth above are cumulative and shall not preclude Landlord from invoking any other remedy allowed at law or in equity.

(c) **<u>Tenant's Waiver</u>**. Tenant, on its own behalf and on behalf of all Persons claiming through or under Tenant, including all creditors, hereby waives all rights which Tenant and all such Persons might otherwise have under any Requirement (i) to the service of any notice of intention to re-enter or to institute legal proceedings, (ii) to redeem, or to re-enter or repossess the Premises, or (iii) to restore the operation of this Lease, after (A) Tenant shall have been dispossessed or ejected by judgment or by warrant of any court or judge, (B) any re-entry by Landlord, or (C) any expiration or early termination of the Term, whether such dispossession, re-entry, expiration or termination shall be by operation of law or pursuant to the provisions of this Lease. The words "re-enter," "re-entry" and "re-entered" as used in this Lease shall not be deemed to be restricted to their technical legal meanings. Tenant also waives any right it may have to trial by jury in any summary dispossess or other proceeding hereafter instituted by Landlord against Tenant with respect to the Premises or in any action that may be brought to recover Rent, damages or other sums payable under this Lease. If Landlord commences any such summary dispossess proceeding, Tenant will not interpose any counterclaim in the proceeding, other than a compulsory counterclaim.

Section 20.2(a) **<u>Landlord's Damages</u>**. If this Lease and the Term expires and comes to an end as provided in <u>Article 19</u>, or by or under any summary proceeding or any other action or proceeding, or if Landlord shall re-enter the Premises as provided in <u>Section 20.1</u>, then, in any of such events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Tenant shall pay to Landlord all Rent payable under this Lease by Tenant to Landlord up to the Expiration Date or to the date of re-entry upon the Premises by Landlord, as the case may be;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Landlord shall be entitled to retain all monies, if any, paid by Tenant to Landlord, whether as prepaid Rent or otherwise, which monies, to the extent not otherwise applied to amounts due and owing to Landlord, shall be credited by Landlord against any damages payable by Tenant to Landlord;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Tenant shall pay to Landlord, in monthly installments, on the days specified in this Lease for payment of installments of Fixed Rent, any Deficiency; it being understood that Landlord shall be entitled to recover the Deficiency from Tenant each month as the same shall arise, and no suit to collect the amount of the Deficiency for any month shall prejudice Landlord's right to collect the Deficiency for any subsequent month by a similar proceeding; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) whether or not Landlord shall have collected any monthly Deficiency, Tenant shall pay to Landlord, on demand, in lieu of any further Deficiency and as liquidated and agreed final damages, a sum equal to the amount by which the Rent for the period which otherwise would have constituted the unexpired portion of the Term (assuming Additional Rent during such period to be the same as had been payable for the year immediately preceding such termination or re-entry, increased in each succeeding year by 4% (on a compounded basis)) exceeds the then fair and reasonable rental value of the Premises, for the same period (with both amounts being discounted to present value at a rate of interest equal to 2% below the then Base Rate) less the aggregate amount of Deficiencies theretofore collected by Landlord pursuant to the provisions of <u>Section 20.2(a)(iii)</u> for the same period. If, before presentation of proof of such liquidated damages to any court, commission or tribunal, Landlord shall have relet the Premises or any part thereof for the period which otherwise would have constituted the unexpired portion of the Term or any part thereof, the amount of rent reserved upon such reletting shall be deemed, *prima facie,* to be the fair and reasonable rental value for the part or the whole of the Premises so relet during the term of the reletting.

(b) **<u>Reletting</u>**. If the Premises, or any part thereof, shall be relet together with other space in the Buildings, the rents collected or reserved under any such reletting and the expenses of any such reletting shall be equitably apportioned for the purposes of this Section. Tenant shall not be entitled to any rents collected or payable under any reletting, whether or not such rents exceed Fixed Rent reserved in this Lease. Nothing contained in <u>Article 19</u> or <u>20</u> shall be deemed to limit or preclude the recovery by Landlord from Tenant of the maximum amount allowed to be obtained as damages under applicable Requirements, or of any sums or damages to which Landlord may be entitled in addition to the damages set forth in this Section.

Section 20.3 **<u>Default Interest; Other Rights of Landlord</u>**. Any Rent or damages payable under this Lease and not paid when due (except to the extent provided in <u>Section 2.3</u>) shall bear interest at the Interest Rate from the due date until paid, and the interest shall be deemed Additional Rent. If Tenant fails to pay any Additional Rent when due, Landlord, in addition to any other right or remedy, shall have the same rights and remedies as in the case of a default by Tenant in the payment of Fixed Rent. If Tenant is in arrears in the payment of Rent, Tenant waives Tenant's right, if any, to designate the items against which any payments made by Tenant are to be credited, and Landlord may apply any payments made by Tenant to any items Landlord sees fit, regardless of any request by Tenant.

**ARTICLE 21** 

**<u>LANDLORD'S RIGHT TO CURE; REIMBURSEMENT</u>**

Section 21.1 **<u>Landlord's Right to Cure</u>**. If an Event of Default has occurred and is continuing, Landlord, without thereby waiving such Event of Default, may perform such obligation for the account and at the expense of Tenant: (i) immediately or at any time thereafter, and without notice. in the case of emergency or in case the matter giving rise to such Event of Default (A) materially interferes with the use by any other tenant of any space in the Buildings, (B) materially interferes with the efficient operation of the Buildings, (C) will result in a violation of any Requirement, (D) will result in a default under any Mortgage or Superior Lease, or (E) will result in a cancellation of any insurance policy maintained by Landlord, and (ii) in any other case if such Event of Default continues after 10 days from the date Landlord gives notice of Landlord's intention so to perform the defaulted obligation. All costs and expenses incurred by Landlord in connection with any such performance by it for the account of Tenant and all costs and expenses, including reasonable counsel fees and disbursements, incurred by Landlord in any action or proceeding (including any summary dispossess proceeding) brought by Landlord to enforce any obligation of Tenant under this Lease and/or right of Landlord in or to the Premises, shall be paid by Tenant to Landlord on demand, with interest thereon at the Interest Rate from the date incurred by Landlord. Except as expressly provided to the contrary in this Lease, all costs and expenses which, pursuant to this Lease (including the Rules and Regulations) are incurred by Landlord and payable to Landlord by Tenant, and all charges, amounts and sums payable to Landlord by Tenant for any property, material, labor, utility or other services which, pursuant to this Lease or at the request and for the account of Tenant, are provided, furnished or rendered by Landlord, shall become due and payable by Tenant to Landlord in accordance with the terms of the bills rendered by Landlord to Tenant.

Section 21.2 **<u>Reimbursement For Tenant's Default</u>**. Tenant shall reimburse Landlord, within 30 days after demand, for all expenditures made by, or costs or fines sustained or incurred by, Landlord due to any Event of Default by Tenant under this Lease, with interest thereon at the Interest Rate, from the date such expenditures were rightfully made, or costs or fines incurred, until the date reimbursed by Tenant.

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**ARTICLE 22** 

**<u>NO REPRESENTATIONS BY LANDLORD; LANDLORD'S APPROVAL</u>**

Section 22.1 **<u>No Representations</u>**. Except as expressly set forth herein, Landlord and Landlord's agents have made no warranties, representations, statements or promises with respect to (i) the rentable and usable areas of the Premises, the Buildings or the Center, (ii) the amount of any current or future Taxes, (iii) the compliance with applicable Requirements of the Premises, the Buildings or the Center, or (iv) the suitability of the Premises for any particular use or purpose. No rights, easements or licenses are acquired by Tenant under this Lease, by implication or otherwise. This Lease contains the entire agreement between the parties and all understandings and agreements previously made between Landlord and Tenant are merged in this Lease, which alone fully and completely expresses their agreement. Tenant is entering into this Lease after full investigation, and is not relying upon any statement or representation made by the Landlord not embodied in this Lease.

Section 22.2 **<u>Written Approval</u>**. All references in this Lease to the consent or approval of Landlord mean the written consent or approval of Landlord, duly executed by Landlord. All consents or approvals of Landlord may be granted or withheld in Landlord's sole discretion unless specifically provided to the contrary in this Lease.

Section 22.3 **<u>No Money Damages</u>**. Wherever in this Lease Landlord's consent or approval is required, if Landlord refuses to grant such consent or approval, whether or not Landlord expressly agreed that such consent or approval would not be unreasonably withheld, Tenant shall not make, and Tenant hereby waives, any claim for money damages (including any claim by way of set-off, counterclaim or defense) based upon Tenant's claim or assertion that Landlord unreasonably withheld or delayed its consent or approval, except that Tenant shall be entitled to its actual damages if Landlord is determined to have acted maliciously and in bad faith pursuant to a final, unappealable judgment from a court of competent jurisdiction. Tenant's sole remedy shall be an action or proceeding to enforce such provision, by specific performance, injunction or declaratory judgment. In no event shall Landlord be liable for, and Tenant, on behalf of itself and all other Tenant Parties, hereby waives any claim for, any indirect, consequential or punitive damages, including loss of profits or business opportunity, arising under or in connection with this Lease.

**ARTICLE 23** 

**<u>END OF TERM</u>**

Section 23.1 **<u>Expiration</u>**. Upon the expiration or other termination of this Lease, Tenant shall quit and surrender the Premises to Landlord, vacant, broom clean and in good order and condition, ordinary wear and tear and damage for which Tenant is not responsible under the terms of this Lease excepted, and Tenant shall remove all of Tenant's Property as may be required pursuant to <u>Article 5</u> of this Lease.

Section 23.2 **<u>Holdover Rent</u>**. Landlord and Tenant recognize that the damage to Landlord resulting from any failure by Tenant to timely surrender possession of the Premises may be substantial, may exceed the amount of the Rent theretofore payable hereunder, and will be impossible to accurately measure. Tenant therefore agrees that if possession of the Premises is not surrendered to Landlord on or before the Expiration Date or sooner termination of the Term, in addition to any other rights or remedies Landlord may have hereunder or at law, Tenant shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) pay to Landlord (i) for the first 90 days during which Tenant holds over in the Premises after the Expiration Date or sooner termination of the Term, a sum equal to (x) one and one-half times the Rent (other than Percentage Rent) payable under this Lease for the last full calendar month of the Term plus (y) the Percentage Rent payable under this Lease for such period, and (ii) for each month (or portion thereof) thereafter, a sum equal to (x) two times the Rent (other than Percentage Rent) payable under this Lease for the last full calendar month of the Term plus (y) the Percentage Rent payable under this Lease, which amounts shall be payable in lieu of any "use and occupancy" payment permitted or required by law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be liable to Landlord for any payment or rent concession which Landlord may be required to make to any tenant obtained by Landlord for all or any part of the Premises (a "<u>New Tenant</u>") in order to induce such New Tenant not to terminate its lease by reason of the holding-over by Tenant, provided that such new lease is fully executed prior to the date upon which Tenant vacates the Premises and Landlord notifies Tenant that Landlord will incur such payment or rent concession.

No holding-over by Tenant, nor the payment to Landlord of the amounts specified above, shall operate to extend the Term hereof. Nothing herein contained shall be deemed to permit Tenant to retain possession of the Premises after the Expiration Date or sooner termination of this Lease, and no acceptance by Landlord of payments from Tenant after the Expiration Date or sooner termination of the Term shall be deemed to be other than on account of the amount to be paid by Tenant in accordance with the provisions of this Article.

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Section 23.3 **<u>Waiver of Stay</u>**. Tenant expressly waives, for itself and for any Person claiming through or under Tenant, any rights which Tenant or any such Person may have under the provisions of <u>Section 2201</u> of the New York Civil Practice Law and Rules and of any successor law of like import then in force, in connection with any holdover summary proceedings which Landlord may institute to enforce the foregoing provisions of this Article.

**ARTICLE 24** 

**<u>NO SURRENDER; NO WAIVER</u>**

Section 24.1 **<u>No Surrender or Release</u>**. No act or thing done by Landlord or Landlord's agents or employees during the Term shall be deemed an acceptance of a surrender of the Premises.

Section 24.2 **<u>No Waiver</u>**. No provision of this Lease shall be deemed to have been waived by any party unless such waiver is in writing and is signed by the party against whom such waiver is asserted, and any such waiver shall be effective only for the specific purpose and in the specific instance in which given. The failure of either party to seek redress for violation of, or to insist upon the strict performance of, any covenant or condition of this Lease, or any of the Rules and Regulations, shall not be construed as a waiver or relinquishment for the future performance of such obligations of this Lease or the Rules and Regulations, or of the right to exercise such election but the same shall continue and remain in full force and effect with respect to any subsequent breach, act or omission. The receipt by Landlord of any Rent payable pursuant to this Lease or any other sums with knowledge of the breach of any covenant of this Lease shall not be deemed a waiver of such breach. No payment by Tenant or receipt by Landlord of a lesser amount than the monthly Fixed Rent or Additional Rent herein stipulated shall be deemed to be other than a payment on account of the earliest stipulated Fixed Rent or Additional Rent, or as Landlord may elect to apply such payment, nor shall any endorsement or acceptance of any check or other payment in the face of a statement on such check or any letter accompanying such check or payment be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord's right to recover the balance of such Fixed Rent or Additional Rent or pursue any other remedy provided in this Lease. The existence of a right of renewal or extension of this Lease, or the exercise of such right, shall not limit Landlord's right to terminate this Lease in accordance with the terms hereof.

**ARTICLE 25** 

**<u>WAIVER OF TRIAL BY JURY</u>**

Landlord and Tenant hereby waive trial by jury in any action, proceeding or counterclaim brought by either party against the other on any matters in any way arising out of or connected with this Lease, the relationship of Landlord and Tenant, Tenant's use or occupancy of the Premises, or the enforcement of any remedy under any Requirement. If Landlord commences any summary proceeding against Tenant, Tenant will not interpose any counterclaim of any nature or description in any such proceeding (unless failure to impose such counterclaim would preclude Tenant from asserting in a separate action the claim which is the subject of such counterclaim), and will not seek to consolidate such proceeding with any other action which may have been or will be brought in any other court by Tenant.

**ARTICLE 26** 

**<u>INABILITY TO PERFORM</u>**

This Lease and the obligation of Tenant to pay Rent and to perform all of the other covenants and agreements of Tenant hereunder shall not be affected, impaired or excused by any Unavoidable Delays. Landlord shall use reasonable efforts to promptly notify Tenant of any Unavoidable Delay which prevents Landlord from fulfilling any of its obligations under this Lease, provided, that Landlord's insolvency or inability to pay its debts as they become due shall not constitute an Unavoidable Delay with respect to this <u>Article 26</u>.

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**ARTICLE 27** 

**<u>NOTICES</u>**

Except as otherwise expressly provided in this Lease, any consents, notices, demands, requests, approvals or other communications given under this Lease shall be in writing and shall be deemed sufficiently given or rendered if delivered by hand (provided a signed receipt is obtained) or if sent by registered or certified mail (return receipt requested) or by a nationally recognized overnight delivery service making receipted deliveries, addressed as follows:

if to Tenant, (i) c/o Madison Square Garden, L.P., 2 Penn Plaza, New York, New York, Attention: General Counsel and (ii) Rockefeller Group, Inc., 1221 Avenue of the Americas, 29th Floor, New York, New York 10020, Attention: General Counsel, and with copies of any notices of default to Proskauer Rose LLP, 1585 Broadway, New York, New York 10036-8299, Attention Lawrence J. Lipson, Esq., and

if to Landlord, at Landlord's address set forth on the first page of this Lease, Attention: Property Manager – 1270 Avenue of the Americas, and with copies to (A) Office of the Center, 45 Rockefeller Plaza, New York, New York 10111, Attention: General Counsel, (B) Office of the Center, 45 Rockefeller Plaza, New York, New York 10111, Attention: Controller, (C) Tishman Speyer Properties, L.P., 520 Madison Avenue, New York, New York 10022 Attention: General Counsel, and (D) any Mortgagee or Lessor which shall have requested copies of notices, by notice given to Tenant in accordance with the provisions of this Article at the address designated by such Mortgagee or Lessor; or

to such other address(es) as either Landlord or Tenant or any Mortgagee or Lessor may designate as its new address(es) for such purpose by notice given to the other in accordance with the provisions of this Article. Any such consent, notice, demand, request or other communication shall be deemed to have been given on the date of receipted delivery or refusal to accept delivery as provided in this <u>Article 27</u>, or the date delivery is first attempted but cannot be made due to a change of address of which no notice was given.

**ARTICLE 28** 

**<u>RULES AND REGULATIONS</u>**

Tenant and all Tenant Parties shall observe and comply with the Rules and Regulations (which do not relate to the Music Hall and solely relate to the Ancillary Space and which are consistent with the Permitted Uses with respect to the Ancillary Space) as reasonably supplemented or amended from time to time, provided, that in case of any conflict or inconsistency between the provisions of this Lease and any of the Rules and Regulations as originally promulgated or as supplemented or amended from time to time, the provisions of this Lease shall control. Landlord reserves the right, from time to time, to adopt additional reasonable Rules and Regulations and to amend the Rules and Regulations then in effect. Nothing contained in this Lease shall impose upon Landlord any obligation to enforce the Rules and Regulations or terms, covenants or conditions in any other lease against any other tenants in the Buildings, and Landlord shall not be liable to Tenant for violation of the Rules and Regulations by any other tenant, its employees, agents, visitors or licensees, except that Landlord shall not adopt or enforce any Rule or Regulation against Tenant in a discriminatory fashion. Tenant may challenge the "reasonableness" of any Rule or Regulation and such challenge shall be determined pursuant to the "Dispute Resolution Procedure" set forth in <u>Article 38</u> of this Lease. Pending resolution of such dispute, Tenant shall comply with such disputed Rule or Regulation if in Landlord's good faith judgment, Tenant's failure to do so would have a material adverse affect on the operation of the Premises or on other occupants of the Center.

**ARTICLE 29** 

**<u>PARTNERSHIP TENANT</u>**

Section 29.1 **<u>Partnership Tenant</u>**. If Tenant, or a permitted assignee of this Lease pursuant to <u>Article 16</u>, is a partnership, or is comprised of two or more Persons, individually or as partners of a partnership (any such partnership and such Persons are referred to in this <u>Article 29</u> as "<u>Partnership Tenant</u>"), the following shall apply: (i) the liability of each of the general partners (excluding Persons solely holding interests as limited partners), each of the partners in a limited liability partnership or Persons comprising Partnership Tenant (the "<u>Partners</u>") shall be joint and several (subject to the inherent limitations of liability of such business organization); (ii) each of the Partners hereby consents in advance to, and agrees to be bound by, any written instrument which may hereafter be executed by Partnership Tenant or any of the Partners, which shall modify, extend or discharge this Lease, in whole or in part, or surrender all or any part of the Premises to Landlord; (iii) any bills, statements, notices, demands, requests or other communications given or rendered to Partnership Tenant; (iv) if Partnership Tenant shall admit new Partners, all new Partners shall, by their admission to Partnership Tenant, be deemed to have assumed joint and several liability for the performance of all of the

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terms, covenants and conditions of this Lease on Tenant's part to be observed and performed (subject to the inherent limitations of liability in such business organization; (v) Partnership Tenant shall give prompt notice to Landlord of the admission of any new Partners, and upon demand of Landlord, shall cause each new Partner to execute and deliver to Landlord an agreement in form and substance satisfactory to Landlord, wherein each new Partner shall assume joint and several liability (subject to the inherent limitations of liability in such business organization) for the performance of all the terms, covenants and conditions of this Lease on Tenant's part to be observed and performed (but neither Landlord's failure to request any such agreement nor the failure of any new Partner to execute or deliver any such agreement to Landlord shall vitiate the provisions of this <u>Section 29.1</u>); and (vi) no change in the Partners of Partnership Tenant resulting from the admission of a new Partner, or the death, retirement or withdrawal of a Partner shall release Partnership Tenant or any Partner or former Partner from their obligations under this Lease.

Section 29.2 **<u>Change of Partners</u>**. If Tenant is a Partnership Tenant, (i) the admission of new Partners, the withdrawal (in the ordinary course of business), retirement, death, incompetency or bankruptcy of any Partner, or the reallocation of partnership interests among the Partners shall not constitute an assignment of this Lease unless Partners holding in the aggregate not less than 51 % of the partnership interests in Partnership Tenant immediately prior to such event remain as Partners holding not less than 51% of the partnership interests in Partnership Tenant during the 12-month period immediately following such event *(i.e.,* the transfer, by any of the foregoing means, of more than 49% of the partnership interests in Partnership Tenant, except among the Partners, in any consecutive 12-month period shall constitute an assignment of this Lease subject to the provisions of <u>Article 16</u>), and (ii) the reorganization of Partnership Tenant into a professional corporation or a limited liability partnership, or the reorganization of Tenant from a professional corporation or a limited liability partnership into a partnership, shall not constitute an assignment of this Lease, if immediately following such reorganization the Partners or shareholders, as the case may be, of Tenant shall be less than 51% of those existing immediately prior to such reorganization, and shall remain fully liable, jointly and severally, under this Lease as provided in this <u>Article 29</u> (subject to the inherent limitations of liability in such business organization).

**ARTICLE 30** 

**<u>VAULT SPACE</u>**

Notwithstanding anything contained in this Lease or indicated on any sketch, blueprint or plan, no vaults, vault space or other space outside the boundaries of the Real Property are included in the Premises. Landlord makes no representation as to the location of the boundaries of the Real Property. All vaults and vault space and all other space outside the boundaries of the Real Property which Tenant may be permitted to use or occupy are to be used or occupied under a revocable license. If any such license shall be revoked. or if the amount of such space shall be diminished as required by any Governmental Authority or by any public utility company, such revocation, diminution or requisition shall not (i) constitute an actual or constructive eviction, in whole or in part, (ii) entitle Tenant to any abatement or diminution of Rent, (iii) relieve Tenant from any of its obligations under this Lease, or (iv) impose any liability upon Landlord. Any fee, tax or charge imposed by any Governmental Authority for any such vaults, vault space or other space occupied by Tenant shall be paid by Tenant.

**ARTICLE 31** 

**<u>LANDLORD'S AGENT</u>**

Section 31.1 **<u>Landlord's Agent</u>**. Unless Landlord shall render notice to Tenant to the contrary, Tishman Speyer Properties, L.P. is authorized to act as Landlord's agent in connection with the performance of this Lease, and Tenant shall direct all correspondence and requests to, and shall be entitled to rely upon correspondence received from, Tishman Speyer Properties, L.P., as agent for Landlord in accordance with <u>Article 27</u>. Tenant acknowledges that Tishman Speyer Properties, L.P. is acting solely as agent for Landlord in connection with the foregoing; and neither Tishman Speyer Properties, L.P. nor any of its direct or indirect partners, officers, shareholders, directors, employees, principals, agents or representatives shall have any liability to Tenant in connection with this Lease, and Tenant waives any and all claims against any and all of such parties arising out of, or in any way connected with, this Lease, the Buildings or the Center.

Section 31.2 **<u>Representations</u>**. Landlord has retained Landlord's Agent as leasing agent in connection with this Lease and Landlord will be solely responsible for any fee that may be payable to Landlord's Agent. Landlord agrees to pay a commission to Landlord's Agent pursuant to a separate agreement. Each of Landlord and Tenant represents and warrants to the other that it has not dealt with any broker in connection with this Lease other than Landlord's Agent and that to the best of its knowledge and belief, no other broker, finder or like entity procured or negotiated this Lease or is entitled to any fee or commission in connection herewith.

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Section 31.3 <u>**Indemnity**</u>. Each of Landlord, Landlord's Agent and Tenant shall indemnify, defend, protect and hold the other party harmless from and against any and all Losses which the indemnified party may incur by reason of any claim of or liability to any broker, finder or like agent (other than Landlord's Agent) arising out of any dealings claimed to have occurred between the indemnifying party and the claimant in connection with this Lease, or the above representation being false.

**ARTICLE 32** 

**<u>INDEMNITY</u>**

Section 32.1 (a) **<u>Tenant's Indemnity</u>**. Tenant shall indemnify, defend, protect and hold harmless each of the Indemnitees from and against any and all Losses to which any Indemnitee may (except to the extent arising from the negligence or willful misconduct of such Indemnitees) be subject or suffer, whether by reason of, or by reason of any claim for, any injury to, or death of, any person or persons or damage to property (including any loss of use thereof) or otherwise arising from or in connection with the use of, or from any work or thing whatsoever done in, any part of the Premises (other than by such Indemnitee) or by any Tenant Party (exclusive of invitees) in the Center, during the Term or during the period of time, if any, prior to the commencement or following the expiration of the Term that Tenant may have been given access to any portion of the Premises for the purpose of performing work or otherwise, or as a result of any Tenant Party performing any such work or otherwise that subjects any Indemnitee to any Requirement to which such Indemnitee would not otherwise be subject, or arising from any condition of the Premises due to or resulting from any default by Tenant in the keeping, observance or performance of any provision contained in this Lease or from any act or negligence of any Tenant Party.

(b) **<u>Indemnity Inclusions</u>**. As used in this Lease, the term "<u>Losses</u>" means any and all losses, liabilities, damages, claims, judgments, fines, suits, demands, costs, interest and expenses of any kind or nature (including reasonable attorneys' fees and disbursements) incurred in connection with any claim, proceeding or judgment and the defense thereof, and including all costs of repairing any damage to the Premises, the Buildings or the Center, or the appurtenances of any of the foregoing, to which a particular indemnity and hold harmless agreement applies.

Section 32.2 **<u>Landlord's Indemnity</u>**. Landlord shall indemnify, defend and hold Tenant harmless from and against all Losses incurred by Tenant arising from any accident, injury or damage whatsoever caused to any person or the property of any person (other than Tenant) in or about Premises or the common or public areas of the Ancillary Buildings, to the extent attributable to the negligence or willful misconduct of Landlord or its agents or employees.

Section 32.3 **<u>Defense and Settlement</u>**. If any claim, action or proceeding is made or brought against any party entitled to indemnification hereunder, then, upon demand by the indemnified party, the indemnifying party, at its sole cost and expense, shall resist or defend such claim, action or proceeding in the indemnified party's name (if necessary), by attorneys approved by the indemnified party, which approval, shall not be unreasonably withheld. Attorneys for the indemnifying party's insurer shall hereby be deemed approved for purposes of this <u>Section 32.3</u>. Notwithstanding the foregoing, an indemnified party may retain its own attorneys to participate or assist in defending any claim, action or proceeding involving potential liability of [\*\*\*\*\*] or more, provided that the indemnifying party shall control the defense and the indemnifying party shall pay the reasonable fees and disbursements of such attorneys. Notwithstanding anything herein contained to the contrary, the indemnifying party may direct the indemnified party to settle any claim, suit or other proceeding provided that (i) such settlement shall involve no obligation on the part of the indemnified party other than the payment of money, (ii) any payments to be made pursuant to such settlement shall be paid in full exclusively by the indemnifying party at the time such settlement is reached; provided, that if the indemnified party is unconditionally released at the time such settlement is reached, the indemnifying party may pay such amounts over a reasonable period of time, (iii) such settlement shall not require the indemnified party to admit any liability or wrongdoing, and (iv) the indemnified party shall have received an unconditional release from the parties to such settlement. To the extent the indemnifying party shall control the defense or settlement of any claim as herein provided, the indemnified party agrees to (x) cooperate fully with the indemnifying party and its counsel and (y) execute any and all releases and other documents determined by the indemnifying party and its counsel as necessary to compromise or settle any claim that the indemnifying party is permitted hereunder to compromise or settle, <u>provided</u> that such releases and other documents shall be consistent with the terms and conditions of this Article 32 and not in derogation of the rights of the indemnified party hereunder. So long as the indemnifying party shall be performing all of its obligations hereunder, the indemnified party shall not settle any claim without the indemnifying party's written consent which shall not be unreasonably withheld.

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**ARTICLE 33** 

**<u>ADJACENT EXCAVATION; SHORING</u>**

If an excavation shall be made, or shall be authorized to be made, upon land adjacent to the Real Property, Tenant shall, upon notice, afford to the Person causing or authorized to cause such excavation a license to enter upon the Premises for the purpose of doing such work as such person shall deem necessary to preserve the Buildings or any other part of the Center from injury or damage and to support the Buildings or such part of the Center by proper foundations. In connection with such license, Tenant shall have no right to claim any damages or indemnity against Landlord, or diminution or abatement of Rent, provided that Tenant shall continue to have access to the Premises.

**ARTICLE 34** 

**<u>TAX STATUS OF BENEFICIAL OWNERS</u>**

Tenant recognizes and acknowledges that Landlord and/or certain beneficial owners of Landlord may from time to time qualify as real estate investment trusts pursuant to Section 856 <u>et seq.</u> of the Code or as entities described in Section 511(a)(2) of the Code, and that avoiding (i) the loss of such status, (ii) the receipt of any income derived under any provision of this Lease that does not constitute "rents from real property" (in the case of real estate investment trusts) or that constitutes "unrelated business taxable income" (in the case of entities described in Section 511(a)(2) of the Code), and (iii) the imposition of penalty or similar taxes (each, an "<u>Adverse Event</u>") is of material concern to Landlord and such beneficial owners. In the event that this Lease or any document contemplated hereby could, in the opinion of counsel to Landlord, result in or cause an Adverse Event, Tenant agrees to cooperate with Landlord in negotiating an amendment or modification thereof and shall at the request of Landlord execute and deliver such documents reasonably required to effect such amendment or modification. Any amendment or modification pursuant to this <u>Article 34</u> shall be structured so that the economic results to Landlord and Tenant shall be similar, other than to a de minimis extent, to those set forth in this Lease without regard to such amendment or modification. Without limiting any of Landlord's other rights under this <u>Article 34</u>, Landlord may waive the receipt of any amount payable to Landlord under this Lease, and such waiver shall constitute an amendment or modification of this Lease with respect to such payment.

**ARTICLE 35** 

**<u>GUARANTY</u>**

Simultaneously with the execution and delivery of this Lease, and as a condition to the effectiveness hereof, MSG has delivered its guaranty of Tenant's obligations under this Lease in the form annexed hereto as <u>Schedule 6</u> (the "<u>Guaranty</u>"). In connection with any Transfer of Control to an entity satisfying the tests set forth in <u>Section 16.5</u> (a "<u>Permitted Transferee</u>"), the Permitted Transferee shall execute a guaranty in substantially the same form as the Guaranty (a "<u>New Guaranty</u>") and shall deliver the same to Landlord. Upon such delivery, the Permitted Transferee shall be deemed the Guarantor hereunder with respect to the obligations of Tenant thereafter accruing and such New Guaranty shall be deemed the Guaranty hereunder from and after such delivery; provided, however, that nothing contained herein shall be deemed to release any Guarantor from any obligation or liability which accrued during the period prior to the delivery of the New Guaranty. Upon delivery of the New Guaranty by such Permitted Transferee, Landlord shall execute an instrument of release in form and substance reasonably satisfactory to Landlord and the Guarantor then being released releasing such party from any obligations under its guaranty accruing from and after the date of the delivery of the New Guaranty.

**ARTICLE 36** 

**<u>RENEWAL OPTION</u>**

Section 36.1 **<u>Exercise of Option</u>**. Tenant shall have the right, at its sole option, to renew the Term for all of the Premises for a single renewal term (the "<u>Renewal Term</u>") of 10 years by written notice (the "<u>Renewal Notice</u>") delivered to Landlord not less than 24 months prior to the Initial Expiration Date; provided, however, that no Event of Default shall have occurred and be continuing under any of the terms, covenants or conditions of this Lease either on the date the Renewal Notice is given or on the Renewal Term Commencement Date (as hereinafter defined). Upon the giving of the Renewal Notice, this Lease shall be deemed renewed for the Renewal Term with the same force and effect as if the Renewal Term had originally been included in the Term. The Renewal Term shall commence on the day after the Initial Expiration Date (the "<u>Renewal Term Commencement Date</u>") and shall terminate on the 10th anniversary of the Initial Expiration Date. Time is of the essence with respect to the giving of the Renewal Notice by Tenant.

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Section 36.2 **<u>Terms</u>**. All of the terms, covenants and conditions of this Lease shall continue in full force and effect during the Renewal Term, except that (a) the Fixed Rent for the Renewal Term shall be in an amount equal to the greater of [\*\*\*\*\*] b) Tenant shall have no further right to renew the Term, (c) the Base Tax Year will be the Tax Year commencing on the July 1st prior to the Renewal Term Commencement Date and (d) the "Base Operating Year" (as defined in <u>Schedule 3</u>) for the Retail Space shall be the year in which the Renewal Term Commencement Date occurs. Any termination, cancellation or surrender of the entire interest of Tenant under this Lease at any time during the Term shall terminate any right of renewal of Tenant hereunder.

Section 36.3 [\*\*\*\*\*]

Section 36.4 [\*\*\*\*\*]

Section 36.5 **<u>Lease Amendment</u>**. Upon request by Landlord or Tenant made on or following the Renewal Term Commencement Date, the requested party will execute, acknowledge and deliver to the requesting party an amendment to this Lease setting forth the Renewal Term Commencement Date, Fixed Rent for the Renewal Term, and the Renewal Term Expiration Date. The failure of either party to execute and deliver such an amendment shall not affect the rights of the parties under this Lease.

**ARTICLE 37** 

**<u>RETAIL SPACE RIGHT OF FIRST OFFER</u>**

Section 37.1 **<u>Exercise of Right</u>**. If at any time prior to the expiration or earlier termination of the Term, Landlord anticipates that either of the two retail stores which face Avenue of the Americas and are located at 1270 Avenue of the Americas, substantially as shown on <u>Exhibits A-5</u> and <u>A-6</u> (all or any portion of such space, "<u>Offer Space</u>"), shall become available for leasing, Landlord shall deliver notice thereof to Tenant (the "<u>Offer Notice</u>") setting forth (a) a description (including the location and configuration) of the Offer Space in question, (b) the square footage of the Offer Space in question and (c) Landlord's determination of (i) fair market rental value for the Offer Space (which may include periodic increases in rent over the term of the Lease and which shall take into account percentage rent equal to the Percentage Rent payable with respect to the Offer Space) based upon a term expiring on the Expiration Date ("<u>Landlord's Determination</u>"), and (ii) a description of the services, if any, to be provided to the Offer Space and other material business terms upon which Landlord is willing to lease the Offer Space, and the date upon which Landlord anticipates that Landlord will be able to deliver possession of the Offer Space to Tenant. Provided that all of the conditions precedent set forth in this <u>Article 37</u> are fully satisfied by Tenant, Tenant shall have the option (the "<u>Offer Option</u>"), exercisable by Tenant delivering written notice to Landlord (the "<u>Acceptance Notice</u>") within thirty (30) days (the "<u>Acceptance Period</u>") of the giving by Landlord of the Offer Notice, to lease the Offer Space upon the terms and conditions set forth in this <u>Article 37</u>, and this Lease shall thereupon be modified as provided in <u>Section 37.4</u>. Time shall be of the essence as to Tenant's giving of any Acceptance Notice. The Offer Option may be exercised only with respect to all of the Offer Space which is the subject of an Offer Notice. If Tenant fails to timely give an Acceptance Notice with respect to such Offer Space, Landlord shall be free to lease such Offer Space to any third party or to otherwise dispose of such Offer Space and Tenant shall be deemed to have waived the Offer Option with respect to the applicable Offer Space and shall have no further right with respect thereto; provided that if Landlord fails to lease such space within 12 months after the expiration of such Acceptance Period and provided Landlord is not in active negotiations for such space (or if such active negotiations terminate and are not reinstituted) then Landlord will reoffer such Offer Space to Tenant, if such Offer Space is then available for leasing, subject to and in accordance with this <u>Section 37.1</u>.

Section 37.2 **<u>Availability</u>**. For purposes of this <u>Article 37</u>, space shall not be deemed "available for leasing" if, at the time in question any Person holds a written option or right to lease or occupy the Offer Space or to renew its lease or right(s) of occupancy thereof which exist(s) as of the date hereof or is granted by Landlord after Landlord's compliance with <u>Section 37.1</u> hereof. So long as a tenant or other occupant leases or occupies a portion of the Offer Space, Landlord shall be free to extend any such tenancy or occupancy, whether or not pursuant to a lease or other agreement, and such space shall not be deemed to be "available for leasing". Subject to clause (b) of the first sentence of this <u>Section 37.2</u>. Landlord agrees that from and after the date hereof, it will not grant any rights to any Person or entity with respect to the Offer Space unless such rights are subordinate to the rights granted Tenant hereunder, except (i) to tenants or other occupants leasing or occupying the Offer Space as of the date hereof, or (ii) to new tenants or occupants of any portion of the Offer Space in question after Landlord shall have duly offered such portion of the Offer Space to Tenant pursuant to this <u>Article 37</u> and Tenant has not elected to lease such Offer Space in accordance with <u>Section 37.1</u>. Nothing set forth in this <u>Article 37</u> shall be construed to limit Landlord's right to keep space in 1270 Avenue of the Americas vacant if Landlord elects, in its sole discretion, to do so, and such vacant space shall in no event be deemed to be available for leasing hereunder.

Section 37.3 **<u>Conditions to Exercise</u>**. Tenant shall have no right to exercise the Offer Option unless, on the date of the Acceptance Notice and on the Offer Space Commencement Date (as hereinafter defined), no Event of Default shall have occurred and be continuing.

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Section 37.4 **<u>Incorporation of Offer Space</u>**. Effective as of the date on which Landlord delivers the Offer Space to Tenant (the "<u>Offer Space Commencement Date</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Offer Space shall be added to and be deemed to be a part of the Retail Space for all purposes of this Lease (except as otherwise provided in this <u>Article 37</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Offer Space shall be delivered in its "as is" condition, and Landlord shall not be obligated to perform any work or provide any services (other than work or services then generally being provided to new retail tenants in the Center as identified in the Offer Notice);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Fixed Rent for the Offer Space shall be determined in accordance with <u>Section 37.6</u> as of the Offer Space Commencement Date which shall take into account all relevant factors, including (i) comparable retail space in the Center, with such space considered (A) as vacant, (B) in "as is" condition on the Offer Space Commencement Date but with the services, if any, to be provided to the Offer Space as identified in the Offer Notice and (C) with a Base Tax Year as the Tax Year commencing on the July 1<sup>st</sup> prior to the Offer Space Commencement Date and a Base Operating Year in the year in which the Offer Space Commencement Date occurs, (ii) financial obligations then being imposed on new retail tenants (including Tenant) in the Center as of the Offer Space Commencement Date, such as, common area maintenance charges, contributions to a retail promotional fund and other similar charges as set forth in the Office Notice, (iii) the calculation of Percentage Rent which shall be in the same manner as set forth in this Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Tenant shall covenant and agree that it will, at its sole cost and expense, comply with the covenants set forth on <u>Exhibit F</u> annexed hereto with respect to the Office Space;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Tenant shall pay Tenant's Tax Payment and the Retail Operating Expense Payment with respect to the Offer Space based upon base years which will commence on the July 1st (with respect to Tenant's Tax Payment) and on the January 1st (with respect to the Retail Operating Expense Payment) prior to the Offer Space Commencement Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Tenant's Area with respect to the Offer Space shall be equal to the number of rentable square feet contained in the Offer Space.

Section 37.5 **<u>Possession</u>**. (a) If Tenant exercises its right to lease the Offer Space and Landlord is unable to deliver possession on the date set forth in the Offer Notice as the date on which Landlord anticipates delivering possession of the Offer Space to Tenant by reason of the holding over or retention of possession of any tenant or occupant of the Offer Space (i) Landlord shall not be liable to Tenant for any failure by a then existing tenant or occupant to vacate any of the Offer Space, (ii) Landlord shall use commercially reasonable efforts to obtain and deliver to Tenant vacant possession of the Offer Space within ninety (90) days after the anticipated availability date as stated by Landlord in the Offer Notice and in connection therewith, if appropriate in Landlord's good faith judgment, institute and diligently prosecute a holdover or other proceedings against such tenant or occupant of such Offer Space and (iii) Tenant's obligations under this Lease with respect to the Premises and the Offer Space shall not be affected thereby except that the term of the lease with respect to the Offer Space shall not commence until Landlord shall deliver vacant possession of the Offer Space to Tenant. The terms set forth in the preceding provisions of this <u>Section 37.5</u> are intended to constitute "an express provision to the contrary" within the meaning of Section 223-a of the New York Real Property Law or any successor Requirement.

(b) Notwithstanding anything to the contrary contained in this <u>Section 37.5</u>, if Landlord shall have failed to deliver possession of such Offer Space on or before the date which is one (1) year after the anticipated Offer Space Commencement Date set forth in the Offer Notice by reason of the holding over or retention of possession of any tenant or other occupant or for any other reason, then Tenant shall have the right to withdraw its Acceptance Notice by written notice thereof given on or before the date that shall be thirty (30) days after the end of the aforesaid one (1) year period unless prior to the giving of such notice or within ten (10) days thereafter Landlord shall have delivered vacant possession of such Offer Space to Tenant.

Section 37.6 **<u>Arbitration</u>**. (a) If Tenant shall dispute Landlord's Determination with respect to the Fixed Rent for the Offer Space, Tenant shall give notice to Landlord with Tenant's Determination of the Fixed Rent ("<u>Tenant's Determination</u>") with Tenant's delivery of the Acceptance Notice. Landlord's Determination shall be the determination set forth in the Offer Notice. If Landlord and Tenant are unable to reach a mutual determination of the Fixed Rent within 30 days of delivery of Tenant's Determination, Landlord and Tenant shall jointly select an Appraiser and the fees of the Appraiser shall be shared equally by Landlord and Tenant. In the event that Landlord and Tenant shall be unable to jointly agree on the designation of the Appraiser within five (5) days after they are requested to do so by either party, then the parties agree to allow the American Arbitration Association, or any successor organization to designate the Appraiser in accordance with the rules, regulations and/or procedures then obtaining of the American Arbitration Association or any successor organization. The decision of the Appraiser shall be final and binding upon Landlord and Tenant.

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(b) The Appraiser shall conduct such hearings and investigations as he or she may deem appropriate and shall, within thirty (30) days after the date of designation of the Appraiser, choose either Landlord's or Tenant's Determination, and such choice by the Appraiser shall be conclusive and binding upon Landlord and Tenant. Each party shall pay its own counsel fees and expenses, if any, in connection with any arbitration under this <u>Article 37</u>. The Appraiser appointed pursuant to this <u>Article 37</u> shall be an independent real estate appraiser with at least ten (10) years experience in retail leasing of properties which are similar in character to 1270 Avenue of the Americas. The Appraiser shall not have the power to add to, modify or change any of the provisions of this Lease.

(c) It is expressly understood that any determination of the Fixed Rent for the Offer Space pursuant to this <u>Article 37</u> shall be based on the criteria stated in <u>Section 37.4</u> hereof.

(d) Prior to the determination of the Appraiser, Tenant shall pay Fixed Rent on account of the Offer Space in the amount equal to Landlord's Determination, and following the Appraiser's final determination, the amount of any overpayment shall be adjusted between the parties.

Section 37.7 **<u>Lease Amendment</u>**. Upon request by either party made on or following the Offer Space Commencement Date, the parties will execute, acknowledge and deliver to Landlord an amendment to this Lease setting forth the Offer Space Commencement Date and Fixed Rent for the Offer Space, and reflecting the incorporation of the Offer Space into the Premises, and the modifications to this Lease resulting therefrom, as provided in <u>Section 37.4</u>. The failure of either party to execute and deliver such an amendment shall not affect the rights of the parties under this Lease.

**ARTICLE 38** 

**<u>DISPUTE RESOLUTION PROCEDURE</u>**

Section 38.1 Wherever this Lease provides for a dispute to be resolved by the procedure (the "<u>Dispute Resolution Procedure</u>") provided for in this <u>Section 38.1</u>, such dispute shall, at either party's option, be settled and finally determined by arbitration in The City of New York in accordance with the following provisions of this <u>Section 38.1</u>. Within 10 Business Days next following the giving of any notice by Landlord or Tenant stating that it wishes such dispute to be so determined which notice shall refer to this <u>Section 38.1</u> and shall provide in Bold Face Type that if either party shall fail to give notice of such designation within said 10 Business Days, then the arbitrator chosen by the other side shall make the determination alone. Landlord and Tenant shall each give notice to the other setting forth the name and address of an arbitrator designated by the party giving such notice. If either party shall fail to give notice of such designation of an arbitrator within said 10 Business Days, then the arbitrator chosen by the other side shall make the determination alone. The two arbitrators shall designate a third arbitrator within 5 Business Days after the designation of the second arbitrator. If the two arbitrators shall fail to agree upon the designation of a third arbitrator within such 5 Business Day period, then either party may apply to the president of the American Arbitration Association located in The City of New York for the designation of such third arbitrator. If the president of the American Arbitration Association is unable or refuses to act within 10 Business Days, then either party may apply to the Supreme Court of the State of New York, New York County, or to any other court having jurisdiction for the designation of such third arbitrator. Each arbitrator shall have at least 10 years experience in a calling related to the matter as to which arbitration is being sought. The three arbitrators shall conduct such hearings as they deem appropriate, making their determination in writing and giving notice to Landlord and Tenant of their determination as soon as practicable, and if possible, within 5 Business Days after the designation of the third arbitrator in the event no two of the arbitrators shall render a concurrent determination, then the determination of the third arbitrator designated shall be binding upon Landlord and Tenant. Judgment upon any decision rendered in arbitration held pursuant to this <u>Section 38.1</u> shall be final and binding upon Landlord and Tenant, whether or not a judgment shall be entered in any court. Each party shall pay its own counsel fees and expenses, if any, in connection with any arbitration under this <u>Section 38.1</u> (unless the arbitrators shall have awarded counsel fees and expenses to the prevailing party upon a finding of bad faith by the other party), including the expenses and fees of any arbitrator selected by it in accordance with the provisions of this paragraph, and the parties shall share all other expenses and fees of any such arbitration. The arbitrators shall be bound by the provisions of this Lease, and shall not add to, subtract from or otherwise modify such provisions.

Section 38.2 Any dispute which, pursuant to the terms of this Lease, is to be resolved in an expedited arbitration shall be resolved in accordance with the procedures otherwise set forth in <u>Section 38.1</u>, except that the same shall be determined by a single arbitrator jointly selected by the parties within 5 Business Days after the giving of the notice of arbitration, or if the parties are unable to agree on an arbitrator within such 5-Business Day period, either party, upon notice to the other party, may request such appointment by the American Arbitration Association, or in the absence, refusal, failure or inability to act of the American Arbitration Association, may apply to the Supreme Court of the State of New York, New York County for a court appointment of such arbitrator. The arbitrator jointly selected shall be directed to reach a decision within 10 Business Days following the arbitrator's appointment.

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**ARTICLE 39** 

**<u>MUSIC HALL COVENANTS</u>**

Section 39.1 **<u>Conduct of Business</u>**. Tenant, recognizing that the Buildings and the Center are maintained as a first class type of business occupancy and as an additional inducement to Landlord to enter into this Lease, covenants and agrees that at all times a Person with a high quality reputation within the entertainment industry with at least 10 years of experience operating live entertainment venues comparable to the Music Hall shall continuously operate the Music Hall as a first-class entertainment center, consistent with the first class, high quality character of the Center. All merchandise sold by Tenant at the Music Hall or otherwise in connection with Music Hall events shall comply with <u>Exhibit F</u> annexed hereto.

Section 39.2 **<u>Clean Interior</u>**. Tenant shall, at Tenant's sole cost and expense, keep the Music Hall clean and in a neat, orderly, safe and sanitary condition consistent with that of a first class entertainment center.

Section 39.3 **<u>Replace Glass</u>**. Tenant shall as soon as practicable after any glass (including mirrors) in the Music Hall and the perimeter and demising walls thereof is broken or cracked, including a so-called "bull's-eye" break in the glass, at its sole expense, replace such glass with glass of the same kind and quality, unless changes thereto are approved by Landlord in accordance with <u>Article 5</u>, and replace the frames for such glass, if necessary.

Section 39.4 **<u>Awnings</u>**. Tenant shall not install, place or permit any awning on the perimeter walls of the Music Hall.

Section 39.5 **<u>Sounds</u>**. Tenant shall not use, play or operate or permit to be used, played or operated any sound making or sound reproducing device in the Music Hall, except in such manner and under such conditions so that no unreasonable amount of sound shall be heard outside of the Music Hall and the tenants of the Center shall not be disturbed. Any performance staged by Tenant outside the Music Hall shall require Landlord's prior written consent, which shall be (a) granted or denied within 5 Business Days after written request therefor has been received by Landlord, provided that if such consent is not granted or denied within such 5-Business Day period, such consent shall be deemed to be denied and (b) subject to Landlord's reasonable regulation; provided that without Landlord's consent but upon 72 hours prior notice from Tenant to Landlord, Tenant may stage no more than 5 events per year outside of the Music Hall so long as each such event is no longer than (i) 30 minutes in duration if it is staged on Business Days between the hours of 9 a.m. and 5 p.m. and (ii) 1 hour in duration if it is staged on non Business Days or on Business Days other than between the hours of 9:00 a.m. and 5:00 p.m.

Section 39.6 **<u>Displays</u>**. Tenant shall maintain tasteful, well-lighted displays in the display windows, if any, and change such displays from time to time. The content of such displays shall be limited to events in the Music Hall or the Center and shall be used primarily to promote or advertise any business or merchandise which relates to the Music Hall and the Garden. Tenant shall not install any displays or exhibits on or about, and visible from, the exterior of the Music Hall which are obscene or offensive to the general public.

Section 39.7 **<u>Lock Doors</u>**. Tenant shall keep all entrance doors and windows in the Music Hall locked at such times when the Music Hall is not in use.

Section 39.8 **<u>Security</u>**. Tenant shall provide and maintain in good working order during the Term, a security system suitable to reasonably protect the Music Hall, including a 24 hour direct response smoke, fire and burglary alarm system connected to the Center's central control system. To the extent attributable to Music Hall events, Tenant shall also provide outdoor security services for the purpose of control of (a) bus parking and crowds on the street adjacent to the Music Hall and (b) any interference with the ingress and egress to 1270 Avenue of the Americas and other adjacent portions of the Center. Tenant agrees to cooperate with Landlord during any tests of the Center's central control system.

Section 39.9 **<u>Marquees</u>**. Tenant shall clean and maintain the marquees attached to the Music Hall in good order and repair, in accordance with Landlord's standards for the Center and promptly, at Tenant's sole cost and expense, make all necessary repairs to such marquees in accordance with the provisions of this Lease. Tenant shall keep such marquees lit 15 hours a day (from 10 a.m. to 1 a.m.), 7 days a week throughout the Term.

Section 39.10 **<u>Radio City Events/Rockettes</u>**. (a) During (i) calendar year 1999 there shall be no less than (A) [\*\*\*\*\*] actual performances staged on the main stage at the Music Hall ("<u>Actual Performances</u>") and (B) [\*\*\*\*\*] Theater Use Days (as hereinafter defined) per annum, (ii) calendar year 2000 there shall be no less than (X) [\*\*\*\*\*] Actual Performances staged on the main stage at the Music Hall and (Y) [\*\*\*\*\*] Theater Use Days per annum and (iii) each calendar year of the Term thereafter, there shall be no less than (1) [\*\*\*\*\*] Actual Performances staged on the main stage at the Music Hall and (2) [\*\*\*\*\*] Theater Use Days. A "Theater Use Day" shall mean [\*\*\*\*\*] If during any calendar year of the Term commencing with calendar year 1999, there shall be less than

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[\*\*\*\*\*] Actual Performances and the number of Theater Use Days required under this <u>Section 39.10</u>, then Landlord shall calculate the annual average of Actual Performances and Theater Use Days for the immediately preceding 3-calendar year period (or such lesser period as shall commence on January 1, 1999) and, if either such average shall fail to meet the requirements for the required number of Actual Performances and Theater Use Days set forth above (a "<u>Performance Failure</u>"), then the first such Performance Failure shall result in Tenant being obligated to pay to Landlord as Additional Rent the sum of [\*\*\*\*\*] within 10 days after written demand therefor by Landlord, the second such Performance Failure shall result in Tenant being obligated to pay to Landlord as Additional Rent the sum of [\*\*\*\*\*] within 10 days after written demand therefor by Landlord and any Performance Failure thereafter shall constitute a default under this Lease which shall not be subject to cure.

(b) In the event the "Radio City Christmas Spectacular" (which shall mean the Christmas holiday musical show traditionally performed at the Music Hall or any other Christmas holiday show or production similar thereto) or the Rockettes shall be presented or perform, as applicable, (i) in the Restricted Area (as defined below), then 100% of the revenues derived from any such event(s) shall be included in the "Gross Revenues" of Tenant for the Computation Year during which such event(s) occurred or (ii) in the Christmas Show Expanded Restricted Area (as defined below) or the Rockettes Expanded Restricted Area (as defined below), as applicable, then 50% of the revenues derived from such event(s) shall be included in the "Gross Revenues" of Tenant for the Computation Year during which such event(s) occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) For purposes of this Section <u>39.10</u>, the "Restricted Area" shall mean the 75-mile
radius surrounding the Music Hall.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) For purposes of this <u>Section 39.10</u>, the "Christmas Show Expanded Restricted
Area" shall include the District of Columbia and the following states: New York, New Jersey, Connecticut, Pennsylvania, Delaware, Maryland, Rhode Island, Massachusetts, Vermont, New Hampshire and Maine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) For purposes of this <u>Section 39.10</u>, the "Rockettes Expanded Restricted Area" shall
mean the 200-mile radius surrounding the Music Hall. The "Rockettes Expanded Restricted Area" shall not be applicable to a single event-specific guest appearances by the Rockettes, such as an appearance at the Macy's Thanksgiving
Day Parade.

Section 39.11 **<u>Seat Reservations</u>**. (a) Subject to <u>Section 39.11(b)</u> below, during the Term, Tenant shall, with respect to events staged in the Music Hall (i) for which a majority of the seats for such events are sold to the general public, reserve in Landlord's name [\*\*\*\*\*] row of [\*\*\*\*\*] consecutive seats, in the [\*\*\*\*\*] through [\*\*\*\*\*] rows — [\*\*\*\*\*] (the "<u>Approved Seats</u>") (or if, such seats shall not be made available to Tenant, then Tenant shall provide Landlord with those seats made available to Tenant which are situated closest to the Approved Seats), which may be purchased by Landlord at the box office price for such seats to the general public and (ii) which are so-called "special" events and, accordingly, a majority of seats for such events are not sold to the general public (a "<u>Special Event</u>"), allot to Landlord at least 10% of the tickets offered to Tenant (or any Affiliate of Tenant) for such Special Event and Tenant shall furnish to Landlord with respect to such Special Event those seats which are situated closest to the Approved Seats, but in no event shall Landlord be offered less than [\*\*\*\*\*] tickets, or more than [\*\*\*\*\*] tickets, for any Special Event which tickets may be purchased by Landlord at the face price for such seats or if there is no such face price, they shall be provided to Landlord at no charge. If Landlord shall fail to purchase seats (with respect to events described in clause (i)) or notify Tenant of Landlord's desire to either purchase or claim its seats (with respect to events described in clause (ii)) on or before the date which is 14 days prior to the performance for which such seats are reserved, Tenant may release such seats for such performance; provided, however, that with respect to the Radio City Christmas Spectacular, such 14-day period shall be increased to 21 days.

(b) Throughout the Term, Tenant hereby agrees that no less than 45 days prior to the first performance of (i) the Radio City Christmas Spectacular and (ii) any other event at the Music Hall which shall stage a block of [\*\*\*\*\*] or more consecutive performances (a "<u>Multiple Performance Event</u>"), Tenant shall provide to Landlord a list (a "<u>Performance Schedule</u>") of the dates and times of each performance of the Radio City Christmas Spectacular and any such Multiple Performance Event, as applicable. Within 15 days after receipt of Tenant's list setting forth such performance dates and times, Landlord may, at its option (A) with respect to the Radio City Christmas Spectacular, designate up to [\*\*\*\*\*] performances for which Landlord elects to reserve Approved Seats and (B) with respect to a Multiple Performance Event described in clause (ii) above, Landlord shall designate [\*\*\*\*\*] performances for which Landlord shall be entitled to reserve Approved Seats. Tenant shall provide seats to Landlord in accordance with the terms set forth in paragraph (a) above. If Tenant shall fail to timely deliver a Performance Schedule, Landlord shall retain its rights under this <u>Section 39.11</u> for all performances unless and until a Performance Schedule is so provided and in any event with respect to all performances occurring within 15 days of the delivery of such Performance Schedule. If Landlord shall fail to designate its selection of performances, Tenant may on 3 Business Days' notice (during which 3-Business Day Period Landlord fails to make its own designations) which notice shall in BOLD FACE TYPE state that Landlord's failure to respond to such notice within 3-Business Days shall cause Landlord to forfeit its seats for [\*\*\*\*\*] performances and designate [\*\*\*\*\*] of such performances as to which Landlord shall have its rights under this <u>Section 39.11</u> as if Landlord had made such designations.

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Section 39.12 **<u>Club Memberships</u>**. If, in connection with Music Hall events or the Club, Tenant shall establish, or cause to be established, a membership program or association whereby members receive special privileges, Tenant shall grant to Landlord six (6) such memberships at the same price, if any, and on the same terms for which such memberships are generally being offered to Tenant's most valued patrons. The memberships shall be granted for the Term and the rights and privileges concomitant to such memberships may be assigned, at Landlord's option, to Persons designated by Landlord.

Section 39.13 **<u>End of Term</u>**. At the expiration of the Term, if requested by Landlord, Tenant, at its own cost and expense, shall remove or cause to be removed all signs or other installations placed on the exterior of the Music Hall by Tenant during the Term, which shall be considered Music Hall Alterations for all purposes of this Lease, and shall repair any damage to the Music Hall caused by such removal. In the event Tenant fails to remove or cause to be removed the same within 10 days following the expiration of the Term, Landlord shall have the right, without notice to Tenant, to remove any such signs, awnings or other installations, dispose of the same and charge Tenant for the reasonable out-of-pocket cost of such removal and disposition and any repairs necessitated thereby, which shall be payable to Landlord as Additional Rent.

Section 39.14 **<u>Equitable Relief</u>**. Tenant acknowledges that damages resulting from any breach of the provisions of this <u>Article 39</u> are difficult, if not impossible, to ascertain and concedes that, among other remedies for such breach permitted by law or the provisions of this Lease, Landlord shall be entitled to seek to enjoin Tenant from any violation of said provisions.

**ARTICLE 40** 

**<u>VIP CLUB</u>**

Section 40.1 **<u>Club</u>**. Tenant shall construct and operate in the 1270 Space a first-class, private dining club (the "<u>Club</u>") to be used by Tenant primarily in connection with events held in the Music Hall. The Club shall provide restaurant service to the patrons of such events invited by Tenant and, at other times, to other persons having a membership in the Club ("<u>Members</u>") and to private parties. The Club shall not be open to the general public. Subject to compliance by Tenant with of all of the covenants, agreements, terms and conditions of this Lease, including all Requirements relating to the sale of alcoholic beverages, Tenant may serve beer, wine and liquor in the Club provided that such service is provided in a manner consistent with first-class clubs and restaurants in midtown Manhattan.

Section 40.2 **<u>Construction and Operations</u>**. Tenant, at Tenant's sole cost and expense, in accordance with all applicable Requirements and <u>Article 5</u> of this Lease, shall install and furnish in the Club one or more private dining rooms and first-class restrooms consistent with the style and ambiance of the Music Hall. Tenant shall cause its architects and engineers to specify and use first-class materials, including such acoustical material and design standards as may be available to insulate the walls, floor and ceiling of the Club so that tenants of 1270 Avenue of the Americas are protected from noise generated by the Club and a first-class, state of the art air recirculating system to insure that smoke and/or cooking odors generated by the Club are ventilated out of 1270 Avenue of the Americas and do not emanate beyond the Club to the rest of 1270 Avenue of the Americas or the Music Hall or the Buildings in the Center. Tenant shall cause all ventilating hoods over ranges and cooking equipment and all duct work within the 1270 Space and to the main vertical risers to be regularly cleaned in a manner reasonably satisfactory to Landlord and shall keep all plumbing and sanitary systems and installations in the 1270 Space in first-class operating condition. Tenant shall not prepare any food or beverages in the Club for sale or distribution outside of the Club or the Music Hall by Tenant or anyone else. Tenant's operation of the Club shall not encumber or obstruct, or permit to be encumbered or obstructed, the portion of 1270 Avenue of the Americas or of the sidewalk or street adjacent to or abutting the street entrance to the Club. Except as otherwise expressly provided in this Lease, all access to the 1270 Space shall be through the Music Hall except for deliveries to the Club which shall be through the freight elevators serving 1270 Avenue of the Americas. Tenant shall not use any cart, wagon or similar conveyance for the sale and/or delivery of coffee or any other items inside or outside of 1270 Avenue of the Americas.

Section 40.3 **<u>Access to Music Hall</u>**. Tenant shall have the right to connect the 1270 Space and the Music Hall in order to provide direct access between the Music Hall and the Club; provided, however, that such connection shall be subject to the requirements set forth in <u>Article 5</u> of this Lease. Tenant shall be responsible, at its sole cost and expense, for compliance with all Requirements occasioned by the reconfiguration of access between the Club and Music Hall whether such compliance relates to the Music Hall or 1270 Avenue of the Americas.

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**ARTICLE 41** 

**<u>STUDIO APARTMENT</u>**

Section 41.1 **<u>Studio Apartment</u>**. The Music Hall shall be deemed to include the so-called Studio Apartment or Roxy Suite described on <u>Exhibit G</u> annexed hereto (the "<u>Studio Apartment</u>"). Landlord shall be entitled to occasionally use the Studio Apartment provided that Landlord shall first make a reservation for each such use with Tenant. Landlord shall pay to Tenant, within 10 days after being billed therefor, Tenant's normal rental fee and any other reasonable costs actually incurred by Tenant in connection with Landlord's use of the Studio Apartment. Upon request by Landlord, Tenant shall prepare a proposed budget for each use proposed by Landlord.

Section 41.2 **<u>Studio Apartment Property</u>**. Notwithstanding anything to the contrary set forth in <u>Section 5.1(a)</u>, no Music Hall Alterations shall be made to the Studio Apartment without the prior consent of Landlord. Tenant shall, however, maintain and repair Landlord's Studio Apartment Property (as defined below) in a first-class manner and in accordance with the terms of this Lease and all Requirements; provided, however, Tenant shall advise Landlord of any material projected maintenance and repairs contemplated to be performed by Tenant. Notwithstanding anything in this Lease to the contrary all items currently situated in the Studio Apartment including the items of property set forth on <u>Schedule 5</u> ("<u>Landlord's Studio Apartment Property</u>") shall not be removed from the Studio Apartment and shall continue to be the property of Landlord from and after the date hereof.

**ARTICLE 42** 

**<u>MISCELLANEOUS</u>**

Section 42.1 **<u>Delivery</u>**. This Lease shall not be binding upon Landlord or Tenant unless and until Landlord shall have executed and delivered a fully executed copy of this Lease to Tenant.

Section 42.2 **<u>Transfer of Real Property</u>**. Landlord's obligations under this Lease shall not be binding upon the Landlord named herein after the sale, conveyance, assignment, transfer or lease of Landlord's interest (collectively, a "<u>Transfer</u>") by Landlord (or upon any subsequent landlord after the Transfer by such subsequent landlord) of its interest in the Buildings or the Real Property, as the case may be (except for such obligations as accrued prior to such Transfer unless such subsequent landlord assumes in writing such obligations which accrued prior to such transfer), and in the event of any such Transfer, Landlord (and any such subsequent landlord) shall be entirely freed and relieved of all covenants and obligations of Landlord hereunder accruing from and after such Transfer (unless such subsequent landlord shall have expressly agreed to assume Landlord's obligations which accrued prior to the date of such Transfer in which event Landlord shall also be released from those existing obligations), and the transferee of Landlord's interest (or that of such subsequent landlord) in the Buildings or the Real Property, as the case may be, shall be deemed to have assumed all obligations under this Lease accruing from and after such Transfer.

Section 42.3 **<u>Limitation on Liability</u>**. The liability of Landlord for Landlord's obligations under this Lease shall be limited to Landlord's interest from time to time in the Real Property, the insurance proceeds arising therefrom, the title insurance proceeds arising therefrom and the proceeds from the sale of the Real Property; provided that, with respect to the proceeds from the sale of the Real Property, any claim by Tenant seeking recovery against such proceeds shall be null and void unless Tenant asserts such claim in writing prior to 180 days after the date of the closing of such sale and commences an action with respect thereto within thirty (30) days thereafter. Tenant shall not look to any other property or assets of Landlord or the property or assets of any of the Indemnitees in seeking either to enforce Landlord's obligations under this Lease or to satisfy a judgment for Landlord's failure to perform such obligations; and none of the Indemnitees shall be personally liable for the performance of Landlord's obligations under this Lease.

Section 42.4 **<u>Rent</u>**. Notwithstanding anything to the contrary contained in this Lease, all amounts payable by Tenant to or on behalf of Landlord under this Lease, whether or not expressly denominated Fixed Rent, Tenant's Tax Payment, the Retail Operating Expense Payment, Additional Rent (including Percentage Rent) or Rent, shall constitute rent for the purposes of Section 502(b)(6) of the United States Bankruptcy Code.

Section 42.5 **<u>Entire Document</u>**. This Lease (including any Schedules and Exhibits referred to herein and all supplementary agreements provided for herein) contains the entire agreement between the parties and all prior negotiations and agreements are merged into this Lease. All of the Schedules and Exhibits attached hereto are incorporated in and made a part of this Lease, provided that, in the event of any inconsistency between the terms and provisions of this Lease and the terms and provisions of the Schedules and Exhibits hereto, the terms and provisions of this Lease shall control. All Article and Section references set forth herein shall, unless the context otherwise requires, be deemed references to the Articles and Sections of this Lease.

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Section 42.6 **<u>Governing Law</u>**. This Lease shall be governed in all respects by the laws of the State of New York.

Section 42.7 **<u>Partial Unenforceability</u>**. If any provision of this Lease, or its application to any Person or circumstance, shall ever be held to be invalid or unenforceable, then in each such event the remainder of this Lease or the application of such provision to any other Person or any other circumstance (other than those as to which it shall be invalid or unenforceable) shall not be thereby affected, and each provision hereof shall remain valid and enforceable to the fullest extent permitted by law.

Section 42.8 **<u>Consent to Jurisdiction</u>**. (a) Except as expressly provided to the contrary in this Lease, Tenant agrees that all disputes arising, directly or indirectly, out of or relating to this Lease, and all actions to enforce this Lease, shall be dealt with and adjudicated in the state courts of the State of New York or the federal courts for the Southern District of New York; and for that purpose Tenant expressly and irrevocably submits itself to the jurisdiction of such courts. Tenant agrees that so far as is permitted under applicable law, this consent to personal jurisdiction shall be self-operative and no further instrument or action, other than service of process in one of the manners specified in this Lease, or as otherwise permitted by law, shall be necessary in order to confer jurisdiction upon it in any such court.

(b) To the extent that Tenant has or hereafter may acquire any immunity from jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) with respect to itself or its property, Tenant irrevocably waives such immunity in respect of its obligations under this Lease.

Section 42.9 **<u>Estoppels</u>**. (a) Within ten Business Days following request from Landlord, any Mortgagee or any Lessor, Tenant shall deliver to Landlord a statement executed and acknowledged by Tenant, in form satisfactory to Landlord, (i) stating the Commencement Date, the Rent Commencement Date and the Expiration Date, and that this Lease is then in full force and effect and has not been modified (or if modified, setting forth all modifications), (ii) setting forth the date to which Fixed Rent and any Additional Rent have been paid, together with the amount of monthly Fixed Rent, Tenant's Tax Payment, the Retail Operating Expense Payment and Percentage Rent then payable, (iii) stating whether or not, to the best of Tenant's knowledge, Landlord is in default under this Lease, and, if Tenant asserts that Landlord is in default, setting forth the specific nature of any such defaults, (iv) stating whether Landlord has failed to complete any work required to be performed by Landlord under this Lease, (v) stating whether there are any sums payable to Tenant by Landlord under this Lease, (vi) stating the amount of the security deposit, if any, under this Lease, (vii) stating whether there are any subleases affecting the Premises, (viii) stating the address of Tenant to which all notices and communications under this Lease shall be sent, and (ix) responding to any other matters reasonably requested by Landlord, such Mortgagee or such Lessor. Tenant acknowledges that any statement delivered pursuant to this <u>Section 42.9</u> may be relied upon by any purchaser or owner of the Real Property or the Buildings, or all or any portion of Landlord's interest in the Real Property or the Buildings or under any Superior Lease, or by any Mortgagee or assignee thereof, or by any Lessor or assignee thereof.

(b) Within 10 days following request therefor by Tenant, Landlord shall, at Landlord's sole cost and expense, deliver to Tenant a statement executed by Landlord stating, as of the date of execution of such statement (i) that this Lease is then in full force and effect and has not been modified (or if modified, setting forth all modifications), (ii) the date to which the Rent has been paid and (iii) whether or not, to the best knowledge of Landlord, Tenant is in default under this Lease, and, if Landlord asserts that Tenant is in default, setting forth the specific nature of all such defaults.

Section 42.10 **<u>Certain Rules of Interpretation</u>**. For purposes of this Lease, whenever the words "include", "includes", or "including" are used, they shall be deemed to be followed by the words "without limitation", and, whenever the circumstances or the context requires, the singular shall be construed as the plural, the masculine shall be construed as the feminine and/or the neuter and <u>vice</u> <u>versa</u>. This Lease shall be interpreted and enforced without the aid of any canon, custom or rule of law requiring or suggesting construction against the party drafting or causing the drafting of the provision in question.

Section 42.11 **<u>Captions</u>**. The captions in this Lease are inserted only as a matter of convenience and for reference and in no way define, limit or describe the scope of this Lease or the intent of any provision hereof.

Section 42.12 **<u>Parties Bound</u>**. The terms, covenants, conditions and agreements contained in this Lease shall bind and inure to the benefit of Landlord and Tenant and, except as otherwise provided in this Lease, to their respective legal representatives, successors, and assigns.

Section 42.13 **<u>Memorandum of Lease</u>**. This Lease shall not be recorded; however, at Landlord's request, Landlord and Tenant shall promptly execute, acknowledge and deliver a memorandum of this Lease in form suitable for recording, together with such customary New York City and State Real Property Transfer Tax forms and affidavits as are then required for the recording of such memoranda, and Landlord may thereupon record such memorandum. Upon the expiration or sooner termination of the Term, Tenant shall execute and deliver to Landlord such customary documents and instruments, in form suitable for recording, as Landlord shall reasonably request to evidence the termination of such memorandum of lease.

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Section 42.14 **<u>Counterparts</u>**. This Lease may be executed in duplicate counterparts, each of which shall be deemed an original and all of which, when taken together, shall constitute one and the same instrument.

Section 42.15 **<u>Display Window Space</u>**. Tenant's rights and obligations with respect to the Display Window Space shall be governed by the Display Window Agreement and the Display Window Space shall not otherwise be subject to any of the provisions of this Lease.

Section 42.16 **<u>Labor Relations</u>**. (a) Tenant shall not employ, or permit the employment of, any Person, or permit any materials to be delivered to or used in the Buildings, if, Landlord's sole judgment, such employment, delivery or use will interfere or cause any conflict or disharmony with any Persons engaged in the construction, maintenance or operation of the Buildings or the Center by Landlord, Tenant or others, or the use and enjoyment of the Buildings or the Center by other tenants or occupants. In the event of such interference, conflict or disharmony, upon Landlord's request, Tenant shall cause all such Persons causing such interference or conflict to leave the applicable Building (or Buildings) immediately.

(b) Landlord shall not employ, or permit the employment of, any contractor or laborer, or permit any materials to be delivered to or used in the Premises, if, in Tenant's reasonable judgment, such employment, delivery or use will interfere or cause any conflict or disharmony with any Person engaged in the construction, maintenance or operation of the Premises by Landlord, Tenant or others. In the event of such interference, conflict or disharmony, upon Tenant's request, Landlord shall cause all Persons causing such interference or conflict to leave the Premises immediately.

Section 42.17 **<u>Survival</u>**. All obligations and liabilities of Landlord or Tenant to the other which accrued before the expiration or other termination of this Lease and all such obligations and liabilities which by their nature or under the circumstances can only be, or by the provisions of this Lease may be, performed after such expiration or other termination, shall survive the expiration or other termination of this Lease. Without limiting the generality of the foregoing, the rights and obligations of the parties with respect to any indemnity under this Lease, and with respect to Fixed Rent and Tenant's Tax Payment, and any other amounts payable under this Lease, shall survive the expiration or other termination of this Lease.

**IN WITNESS WHEREOF**, Landlord and Tenant have executed this Lease as of the day and year first above written.

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| | | |
|:---|:---|:---|
| LANDLORD: | LANDLORD: | LANDLORD: |
| **RCPI TRUST** | **RCPI TRUST** | **RCPI TRUST** |
| By: | /s/ Geoffrey P. Wharton | /s/ Geoffrey P. Wharton |
|  | Name: | Geoffrey P. Wharton |
|  | Title: | Vice President |
| TENANT: | TENANT: | TENANT: |
| **RADIO CITY PRODUCTIONS, LLC** | **RADIO CITY PRODUCTIONS, LLC** | **RADIO CITY PRODUCTIONS, LLC** |
| /s/ Kenneth W. Munoz | /s/ Kenneth W. Munoz | /s/ Kenneth W. Munoz |
| Name: | Kenneth W. Munoz | Kenneth W. Munoz |
| Title: | Manager | Manager |
|  | Tenant's Federal Identification Number: | Tenant's Federal Identification Number: |

---

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<u>EXHIBIT A-1</u> 

**<u>MUSIC HALL FLOOR PLAN</u>**

[Graphic of Radio City Music Hall

Floor Sub Basement Floor Plan]

------

[Graphic of Radio City Music Hall

Floor Basement Floor Plan]

A-1, Contd.

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[Graphic of Radio City Music Hall

Floor Street Floor Plan]

A-1, Contd.

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[Graphic of Radio City Music Hall

Floor First Mezzanine Floor Plan]

A-1, Contd.

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[Graphic of Radio City Music Hall

Floor Second Mezzanine Floor Plan]

A-1, Contd.

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[Graphic of Radio City Music Hall

Floor Projection Level Floor Plan]

A-1, Contd.

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[Graphic of Radio City Music Hall

Floor Attic Level Floor Plan]

A-1, Contd.

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[Graphic of Radio City Music Hall

Floor Studio Level Floor Plan]

A-1, Contd.

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<u>EXHIBIT A-2</u> 

**<u>1270 SPACE FLOOR PLAN</u>**

<u>[Graphic of Floor Mezzanine Floor Plan]</u> 

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<u>EXHIBIT A-3</u> 

**<u>50 ROCK SPACE FLOOR PLAN</u>**

[Graphic of Rockefella Plaza

Floor CO Floor Plan]

A-3-1

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[Graphic of Rockefella Plaza

Floor SM Floor Plan]

A-3-2

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<u>EXHIBIT A-4</u> 

**<u>RETAIL SPACE #1</u>**

[Graphic of 1270 Avenue of Americas Floor ST Floor Plan]

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<u>EXHIBIT A-5</u> 

**<u>OFFER SPACE #1</u>**

[Graphic of 1270 Avenue of Americas Floor ST Floor Plan]

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<u>EXHIBIT A-6</u> 

**<u>OFFER SPACE #2</u>**

<u>[Graphic of 1270 Avenue of Americas Floor ST Floor Plan]</u> 

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<u>EXHIBIT A-7</u> 

**<u>INTENTIONALLY OMITTED</u>**

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<u>EXHIBIT A-8</u> 

**<u>DISPLAY WINDOW SPACE</u>**

The Display Window Space shall constitute of all of the display windows attached to the facade of the Music Hall, which shall be comprised of: 5 display windows on the 51st street side of the Music Hall, 4 display windows on the Avenue of the Americas side of the Music Hall and 16 display windows on the 50th street side of the Music Hall.

A - 8

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<u>EXHIBIT B</u> 

**<u>DEFINITIONS</u>**

<u>**Affiliate**</u>: With respect to any Person, any other Person that, directly or indirectly, through one or more intermediaries, Controls, is Controlled by, or is under common Control with, such first Person.

**<u>Alterations</u>**: Ancillary Space Alterations and Music Hall Alterations, collectively.

<u>**Base Rate**</u>: The annual rate of interest publicly announced from time to time by Citibank, N.A., or its successor, in New York, New York as its "<u>base rate</u>" (or such other term as may be used by Citibank, N.A., from time to time, for the rate presently referred to as its "<u>base rate</u>").

<u>**Building**</u>: Any one of the Music Hall, 1270 Avenue of the Americas or 50 Rockefeller Plaza.

**<u>Building Systems</u>**: The Refrigeration Plant and the mechanical, electrical, plumbing, sanitary, sprinkler, heating, ventilation and air conditioning, security, life-safety, elevator and other service systems or facilities of the Ancillary Buildings up to (but not including) the point of localized distribution to the Ancillary Space (excluding any systems or facilities exclusively serving the Ancillary Space).

<u>**Business Days**</u>: All days, excluding Saturdays, Sundays and all days observed by either the State of New York, the Federal Government or the labor unions servicing the Buildings as legal holidays.

<u>**Business Hours**</u>: The hours of 8:00 a.m. through 6:00 p.m. on Business Days.

<u>**Center**</u>: The buildings in the City, County and State of New York, bounded on the north by 51<sup>st</sup> Street, on the east by Fifth Avenue, on the south by 48<sup>th</sup> Street and on the west by the Avenue of the Americas, commonly known as 600 Fifth Avenue, 610 Fifth Avenue, 620 Fifth Avenue, 630 Fifth Avenue, One Rockefeller Plaza, 10 Rockefeller Plaza, 30 Rockefeller Plaza, 50 Rockefeller Plaza, 1230 Avenue of the Americas, 1240 Avenue of the Americas, 1250 Avenue of the Americas, 1258 Avenue of the Americas, 1270 Avenue of the Americas, Studio Building and the Music Hall, together with a parking garage, public spaces, an ice skating rink and certain other public areas appurtenant to the foregoing, which are commonly known collectively as Rockefeller Center, together with the real property on which such buildings are located and the adjacent curbs and sidewalks, and the plazas, underground concourse areas, and all other public areas and common facilities appurtenant thereto.

<u>**Code**</u>: The Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.

<u>**Control**</u>: (i) The ownership, directly or indirectly, of more than fifty per cent (50%) of the voting stock of a corporation, or (ii) in the case of any Person which is not a corporation, the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person.

<u>**Deficiency**</u>: The difference between (i) Fixed Rent and Additional Rent for the period which otherwise would have constituted the unexpired portion of the Term, and (ii) the net amount, if any, of rents collected under any reletting effected pursuant to the provisions of this Lease for any part of such period (after first deducting from such rents all expenses incurred by Landlord in connection with the termination of this Lease, Landlord's re-entry upon the Premises and such reletting, including repossession costs, brokerage commissions, attorneys' fees and disbursements, and alteration costs).

<u>**Display Window Agreement**</u>: The Display Window Agreement dated June 17, 1993 by and between RCP and RCMHPI, as modified by the Lease Modification and as further modified and extended by an agreement of even date herewith between Landlord and Tenant annexed hereto as <u>Exhibit A-8</u>.

<u>**Display Window Space**</u>: Display Windows as described in the Display Window Agreement.

<u>**50 Rockefeller Plaza**</u>: The building, fixtures, equipment and other improvements and appurtenances now located or hereafter erected, located or placed upon the land known as 50 Rockefeller Plaza, New York, New York.

<u>**Governmental Authority (Authorities)**</u>: The United States of America, the City, County or State of New York or any political subdivision, agency, department, commission, board, bureau or instrumentality of any of the foregoing, or any landmarks preservation agency (or other entity designated or accepted for such purpose by any Governmental Authority or landmarks preservation agency), now existing or hereafter created, having jurisdiction over the Real Property or the Center.

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**<u>Hazardous Materials</u>**: Any substances, materials or wastes currently or in the future deemed or defined in any Requirements as "hazardous substances", "toxic substances", "contaminants", "pollutants" or words of similar import.

<u>**HVAC System**</u>: The Building System designed to provide heating, ventilation and air conditioning.

<u>**Indemnitees**</u>: Landlord, Landlord's Agent, each Mortgagee and Lessor, and each of their respective direct and indirect partners, officers, shareholders, directors, members, trustees, beneficiaries, employees, principals, contractors, licensees, invitees, servants, agents and representatives.

<u>**Independent Systems**</u>: The mechanical, electrical (including escalators and elevators), plumbing, condenser water and cooling tower, sanitary, sprinkler, smoke purge and life safety and other service systems (or the applicable portions thereof) servicing the Music Hall and not other portions of the Buildings, it being understood that (i) the domestic cold water system serving the Music Hall, (ii) the soil lines serving the Music Hall, (iii) the electrical system servicing the Music Hall, (iv) the steam system serving the Music Hall, (v) the smoke purge system serving the Music Hall, (vi) the sprinkler system serving the Music Hall, (vii) the Class E system serving the Music Hall and (viii) the gas line serving the Music Hall shall all be deemed to be Independent Systems.

<u>**Interest Rate**</u>: 2% above the Base Rate, but not less than 12% per annum.

<u>**Lessor**</u>: A lessor under a Superior Lease.

**<u>Mortgage(s)</u>**: Any mortgage, trust indenture or other financing document which may now or hereafter affect the Center, the Real Property, the Buildings, the Premises or any Superior Lease and the leasehold interest created thereby, and all renewals, extensions, supplements, amendments, modifications, consolidations and replacements thereof or thereto, substitutions therefor, and advances made thereunder.

**<u>Mortgagee</u>**: Any mortgagee, trustee or other holder of a Mortgage.

**<u>Person</u>**: Any individual, corporation, partnership, limited liability company, joint venture, estate, trust, unincorporated association, business trust, tenancy-in-common or other entity, or any Governmental Authority.

<u>**Prohibited Use**</u>: Any use or occupancy of the Premises that would be likely to: (i) cause damage to the Buildings, the Premises, the Center or any equipment, facilities or other systems owned by Landlord therein; (ii) impair the appearance of the Premises, the Buildings or the Center; (iii) interfere with the efficient and economical maintenance, operation and repair of the Premises, the Buildings or the Center or the equipment, facilities or systems owned by Landlord; (iv) adversely affect any service provided to, and/or the use and occupancy by, any of the Buildings' tenants or occupants; (v) violate the certificate of occupancy issued for the Premises or the Buildings; or (vi) adversely affect the image of the Buildings or the Center as a first-class office location in midtown Manhattan. <u>Prohibited Use</u> also includes the use of any part of the Premises for: (A) except as otherwise expressly provided with respect to the Club and the Music Hall, the preparation, consumption, storage, manufacture or sale of food or beverages (except in connection with vending machines and/or warming kitchens installed for the use of Tenant's employees only), liquor or tobacco, it being expressly understood and agreed that the preparation, consumption, storage, manufacture or sale of food, beverages, liquor and tobacco (subject to compliance with all Requirements) shall constitute a Permitted Use in the Music Hall and the Club; (B) the business of photocopying, multilith or offset printing (except photocopying in connection with Tenant's own business); (C) a typing or stenography business; (D) a school or classroom other than dance classes; (E) lodging or sleeping; (F) a payroll office other than for Tenant's employees; (G) a barber, beauty or manicure shop open to the public; (H) an employment agency, executive search firm or similar enterprise; (I) offices of any Governmental Authority, any foreign government, the United Nations, or any agency or department of the foregoing; (J) the rendering of medical, dental or other therapeutic or diagnostic services open to the public; (K) except (1) with respect to the Music Hall and (2) as permitted in the Declaration, broadcasting or the business of broadcasting by wire or wireless of any programs or pictures of any sort, or the sale of apparatus or devices connected with the business of such broadcasting; (L) the display or exhibiting of any materials which are obscene or offensive to the general public or (M) any illegal activity, including the use of illegal drugs, or any activity constituting a nuisance.

<u>**Real Property**</u>: The Buildings, individually and collectively together with the plot of land upon which each Building stands.

<u>**Requirements**</u>: All present and future laws, rules, orders, ordinances, regulations, statutes, requirements, codes and executive orders, extraordinary and ordinary of (i) all Governmental Authorities, including the Americans With Disabilities Act, 42 U.S.C. § 12101 (*et seq*.), New York City Local Law 58 of 1987, and any law of like import, and all rules, regulations and government orders with respect thereto, and any of the foregoing relating to Hazardous Materials, environmental matters, public health and safety matters, and landmarks preservation, (ii) any applicable fire rating bureau or other body exercising similar functions, affecting the Real Property or the Center or the maintenance, use or occupation thereof, and (iii) all insurance bodies affecting the Premises.

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<u>**Rules and Regulations**</u>: The rules and regulations governing the Ancillary Space annexed to and made a part of this Lease as <u>Exhibit I</u>, as the same may be modified from time to time by Landlord.

<u>**Superior Lease(s)**</u>: Any ground or underlying lease of the Center, the Real Property or any part thereof heretofore or hereafter made by Landlord and all renewals, extensions, supplements, amendments, modifications, consolidations, and replacements thereof.

<u>**Tenant Delay**</u>: Any delay which results from any act or omission of any Tenant Party, including delays due to changes in or additions to, or interference with, any work to be done by Landlord, or delays by Tenant in submission of information, approving working drawings or estimates or giving authorizations or approvals.

<u>**Tenant Party**</u>: Any of Tenant, any Affiliate of Tenant, or any of their respective direct or indirect partners, officers, shareholders, directors, members, trustees, beneficiaries, employees, principals, contractors, licensees, invitees, servants, agents or representatives.

<u>**Tenant's Property**</u>: Tenant's movable fixtures and movable partitions, telephone and other equipment, computer systems, trade fixtures, furniture, furnishings, and other items of personal property which are removable without material damage to the Premises or the Buildings and which is not Landlord's Music Hall Property.

<u>**1270 Avenue of the Americas**</u>: The building, fixtures, equipment and other improvements and appurtenances now located or hereafter erected, located or placed upon the land known as 1270 Avenue of the Americas, New York, New York.

<u>**Unavoidable Delays**</u>: Landlord's inability to fulfill or delay in fulfilling any of its obligations under this Lease expressly or impliedly to be performed by Landlord, or Landlord's inability to make or delay in making any repairs, additions, alterations, improvements or decorations, or Landlord's inability to supply or delay in supplying any equipment or fixtures, if Landlord's inability or delay is due to or arises by reason of strikes, labor troubles or by accident, or by any cause whatsoever beyond Landlord's reasonable control, including Requirements, governmental preemption in connection with a national emergency, shortages, or unavailability of labor, fuel, steam, water, electricity or materials, Tenant Delay, delays caused by other tenants or other occupants of the Center, acts of God, enemy action, civil commotion, fire or other casualty.

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<u>EXHIBIT C</u> 

**<u>NBC RESTRICTIONS</u>**

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DECLARATION OF COVENANTS AND RESTRICTIONS

DECLARATION OF COVENANTS AND RESTRICTIONS, dated as of July 17, 1996, by and between RCPI Trust, a Delaware business trust, having an office c/o Tishman Speyer Properties, L.P., 520 Madison Avenue, New York, New York 10022 ("<u>RCPT</u>"), and National Broadcasting Company, Inc., a Delaware corporation, having an office at 30 Rockefeller Plaza, New York, New York 10112 ("<u>NBC</u>").

RECITALS

WHEREAS:

A. Simultaneously herewith, by Bargain and Sale Deed from RCP Associates to RCPT, RCPT has acquired fee title to certain improved real property located in the City, County and State of New York, consisting of (i) the land and buildings commonly known as 630 Fifth Avenue, One Rockefeller Plaza, 50 Rockefeller Plaza, 1270 Avenue of the Americas, Radio City Music Hall, and the private street known as Rockefeller Plaza, and (ii) certain condominium units located in the improved real property located in the City, County and State of New York and commonly known as 30 Rockefeller Plaza, 1250 Avenue of the Americas and the "Studio Building" between and contiguous to both 30 Rockefeller Plaza and 1250 Avenue of the Americas, which units are more particularly described in <u>Exhibit A</u> to this Declaration (the "<u>RCPT Units</u>"). The Rockefeller Center Tower Condominium (the "<u>Condominium</u>") covers all of the land and buildings commonly known as 30 Rockefeller Plaza, 1250 Avenue of the Americas and the Studio Building, which land and buildings are referred to collectively in this Declaration as the "<u>Condominium Buildings</u>".

B. Simultaneously herewith, by Bargain and Sale Deed from RCP Associates to NBC Trust No. 1996A, a Delaware business trust (the "<u>Trust</u>"). the Trust has acquired (i) fee title to certain condominium units located in the Condominium Buildings, which units are more particularly described in <u>Exhibit A</u> to this Declaration (the "<u>NBC Fee Units</u>"), and (ii) the reversionary interests of RCP Associates in and to fee title to certain other condominium units located in the Condominium Buildings, which units are more particularly described in <u>Exhibit A</u> to this Declaration (the "<u>NBC/IDA Units</u>"). (Fee title to the NBC/IDA Units is currently held and will continue. to be held by the New York City Industrial Development Agency (the "<u>IDA</u>"), subject to the reversionary interests acquired by the Trust with respect to such units.) Also simultaneously herewith, by Assignment and Assumption of Lease between Rockefeller Center Properties ("<u>RCP</u>") and the Trust, the Trust has. acquired RCP's interest as tenant under that certain Overlease Agreement, dated as of December 1, 1988, between the IDA, as landlord, and RCP, as tenant (as amended from time to time. the "<u>Overlease</u>"), covering all of the NBC/IDA Units. The NBC Fee Units, together with the NBC/IDA Units and the Trust's interest as tenant under the Overlease, are referred to collectively in this Declaration as the "<u>NBC Units</u>". Simultaneously herewith, the Trust has entered into (A) that certain Lease Agreement, covering a portion of the NBC Units, among the Trust, as Lessor, NBC, as Lessee, and Wilmington Trust Company, as Leasing Trustee (the "<u>NBC/Trust Lease</u>"), and (B) that certain Lease Agreement, covering the balance of the NBC Units, among the Trust, as Lessor, General Electric Company, New York corporation ("<u>GE</u>"), as Lessee, and Wilmington Trust Company, as Leasing Trustee (the "<u>GE/Trust Lease</u>").

C. Simultaneously herewith, by Bargain and Sale Deed from RCP to RCPT, RCPT has acquired fee title to certain improved real property located in the City, County and State of New York and commonly known as 1258 Avenue of the Americas.

D. Simultaneously herewith, by (i) Assignment and Assumption of Lease between RCP and RCPT, RCPT has acquired the interest of RCP under that certain Amended and Restated Lease, dated as of the date hereof, between RCP Associates, as landlord, and RCP, as tenant (the "<u>RCPA Ground Lease</u>"), covering certain improved real property located in the City, County and State of New York and commonly known as 610 Fifth Avenue, 620 Fifth Avenue, 10 Rockefeller Plaza and 1230 Avenue of the Americas, and (ii) Assignment and Assumption of Lease, between RCP and RCPT, RCPT has acquired the leasehold interest of RCP under that certain Lease, dated as of August 23, 1949, between the Ministers, Elders and Deacons of the Reformed Protestant Dutch Church of The City of New York, as lessor, and Massachusetts Mutual Life Insurance Company, as lessee, as assigned by mesne assignments to RCP (the "<u>Church Ground Lease</u>"), covering certain improved real property located in the City, County and State of New York and commonly known as 600 Fifth Avenue, New York, New York.

E. In order to provide for the future operation and maintenance of the Center (as hereinafter defined), the Center shall be organized into the following parcels, each of which is more particularly described in <u>Exhibit B</u> to this Declaration (each, a "<u>Parcel</u>", and collectively, the "<u>Parcels</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Parcel 1</u>: The Condominium Buildings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Parcel 2</u>: 610 Fifth Avenue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Parcel 3</u>: 620 Fifth Avenue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Parcel 4</u>: 630 Fifth Avenue;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Parcel 5</u>: One Rockefeller Plaza;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <u>Parcel 7</u>: 50 Rockefeller Plaza;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) <u>Parcel 8</u>: 1230 Avenue of the Americas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) <u>Parcel 10</u>: 1270 Avenue of the Americas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) <u>Parcel 11</u>: 10 Rockefeller Plaza;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>Parcel 17</u>: 600 Fifth Avenue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) <u>Parcel 18</u>: Radio City Music Hall;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) the "<u>Plaza Street Parcel</u>": the private, non-dedicated portion of the street area commonly known as Rockefeller Plaza, between 48th Street and 51st Street, including all subsurface improvements and structures appurtenant thereto (the "<u>Plaza Street</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) the "<u>1258 Sixth Parcel</u>": 1258 Avenue of the Americas; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) the "<u>Garage Parcel</u>": the parking garage site located adjacent to 10 Rockefeller Plaza.

F. Simultaneously herewith, RCPT, the Trust, NBC, the Condominium, RCP Associates and the IDA have entered into an Operation, Maintenance and Reciprocal Easement Agreement, dated as of the date hereof (the "<u>REA</u>"), which sets forth certain agreements among the parties thereto with respect to the improved real property located in the City, County and State of New York and commonly known as Rockefeller Center (the "<u>Center</u>"). Except as otherwise defined herein, all capitalized terms used herein shall have the respective meanings given to such terms in the REA.

G. In addition to the agreements set forth in the REA, RCPT and NBC wish to provide for certain use restrictions with respect to certain portions of the Center, as more particularly set forth in this Declaration.

ACCORDINGLY, the parties hereto hereby agree as follows:

<u>ARTICLE 1</u> 

<u>DEFINITIONS</u> 

1.01 <u>Definitions</u>.

(a) "<u>Agent</u>" means, at any time, a Person hired as an agent or contractor of a Competitor (as hereinafter defined) to produce video programming for such Competitor and acting in such capacity at such time.

(b) "<u>Broadcast</u>" means the transmission of video programming, including news footage clips, by any means, including over-the-air television broadcasting, cable television distribution, SMATV, MMDS, DBS and the like, and including successor distribution technologies which are comparable to the foregoing but which are not now known, or if known, are not now in use, but not including teleconferencing, video telephone communications or other similar means of private video transmission which are not intended for public distribution.

(c) "<u>Competitor</u>" means any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The networks commonly known as CBS, ABC, FOX, UPN, the WB Network and Silverking, and any other Broadcast network which reaches sixty-five percent (65%) or more of television households in the United States and which provides at least six (6) hours of network programming per week;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any cable network (A) as to which sixty-five percent (65%) or more of cable households in the United States (<u>i</u>.<u>e</u>., households which are capable of receiving programming by cable, satellite or telephone lines or through similar subscription-type delivery systems) are customers or subscribers, and (B) which is owned fifty-one per cent (51%) or more by parties who control Broadcast networks, which Broadcast networks provide at least eighteen (18) hours of network programming per week to television stations reaching eighty per cent (80%) of television households in the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) ESPN network, including ESPN II and any future ESPN networks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any general news and business/financial news cable network which reaches sixty-five per cent (65%) or more of cable households in the United States;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Any over-the-air Broadcast station in New York City which displays signs, symbols or logos commonly identified with such New York City station;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The following cable networks:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Any cable network which is owned at the relevant time of consideration by Turner Broadcasting System, Inc. ("<u>TBS</u>"), Turner Network Television, Inc. ("<u>TNT</u>") or any other entity which, as of April 1, 1996, is under common control with TBS and TNT, and any successors to the businesses of TBS and TNT (or controlled subsidiaries thereof) as of such date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) USA Network;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) The Family Channel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) Lifetime.

(d) "<u>Control</u>" means (a) the ownership, directly or indirectly, of more than fifty per cent (50%) of the voting stock of a corporation, or (b) in the case of any Person which is not a corporation, the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person.

(e) "<u>Future Lease</u>" means any lease, license or other occupancy agreement for office, retail or any other space in the Center which is entered into by any of the Restricted Owners, as landlord, from and after the date hereof, or, in the case of any such agreement which was entered into prior to the date of this Declaration, (i) any renewal or extension of the term thereof, other than pursuant to the exercise by the tenant or other occupant thereunder of a renewal or extension option which is expressly provided for in an agreement existing prior to the date of this Declaration and which does not require the consent of the applicable Restricted Owner (or as to which such Restricted Owner's ·right of consent has been limited or restricted in any way), or (ii) any assignment, sublease or modification relating to the use of the premises demised thereunder, other than an assignment, sublease or modification which is expressly provided for in an agreement existing prior to the date of this Declaration and which does not require the consent of the applicable Restricted Owner (or as to which such Restricted Owner's right of consent has been limited or restricted in any way).

(f) "<u>Owner</u>" means (i) the Condominium, as to Parcel 1, (ii) as to the NBC Units, the Unit Owner of the NBC Units, (iii) as to the RCPT Units, the Unit Owner of the RCPT Units, (iv) the fee owner of each of Parcels 4, 7, 10, 17, the Plaza Street Parcel and the 1258 Sixth Parcel, (v) the lessee under the RCPA Ground Lease, as to each of Parcels 2, 3, 8, 11 and the Garage Parcel, and (vi) the lessee under the Church Ground Lease, as to Parcel 17, and each of their respective successors and assigns from time to time.

(g) "<u>Permitted Building Areas</u>" means (i) those portions of the Condominium Buildings which are subject to third party occupancy and control (i.e., areas which are not occupied or controlled by NBC and which are not open to the public), to the extent that such areas are located (A) on the ground floor, as shown (by diagonal lines) on <u>Exhibit C</u> to this Declaration, (B) on the mezzanine above such ground floor space, or (C) on the underground concourse below the Condominium Buildings, and (ii) the 64th and 65th floors of 30 Rockefeller Plaza.

(h) "<u>Person</u>" means any individual, corporation, partnership, limited liability company, joint venture, estate, trust, unincorporated association, business trust, tenancy-in-common or other entity, or any federal, state, county or municipal government or any bureau, department, authority or agency thereof.

(i) "<u>Protected Zone</u>" means the area consisting of the Plaza, the Plaza Street, the Channel Gardens, the Center skating rink and certain additional areas ancillary thereto, all as shown on <u>Exhibit D</u> to this Declaration.

(j) "<u>Protected Zone Images</u>" means visual images of the Protected Zone.

(k) "<u>Restricted Owners</u>" means all of the Owners, exclusive of the Owner of the NBC Units, but including the Owner of the RCPT Units.

(l) "<u>Studio 1A</u>" means the premises demised to NBC pursuant to the terms of the Studio lA Lease (as hereinafter defined).

(m) "<u>Studio lA Lease</u>" means the Lease, dated as of November 1, 1993, between RCP, as landlord, and NBC, as tenant, demising certain premises in 10 Rockefeller Plaza, currently known as Studio lA, and located at the southwest corner of Rockefeller Plaza and West 49th Street, as amended concurrently herewith.

(n) "<u>Tenant-Competitor</u>" means a tenant under a Future Lease which is a Competitor as of the date on which such Future Lease is executed or which becomes a Competitor during the term of such Future Lease (other than as a result of being acquired by, or otherwise becoming an Affiliate of, a Competitor).

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(o) "<u>Unit Owner</u>" means (a) the Trust, in its capacity as either (i) the owner of the NBC Fee Units, or (ii) the lessee of the NBC/IDA Units, or any successor owner(s) or lessee(s) with respect to all or any portion of either the NBC Fee Units or the NBC/IDA Units; and (b) RCPT, in its capacity as the owner of the RCPT Units, or any successor owner(s) with respect to all or any portion of the RCPT Units.

<u>ARTICLE 2</u> 

<u>RESTRICTIVE COVENANTS</u> 

2.01 <u>Covenants Affecting the Restricted Owners</u>.

(a) Subject to the provisions of Section 2.01 (h), no Restricted Owner shall enter into any Future Lease unless such Future Lease contains restrictions on certain Broadcast activities, as more particularly set forth in Sections 2.01 (b), 2.01(c) and 2.01(d), and on the installation and display of certain images, as more particularly set forth in Sections 2:01(b), 2.01(c) and 2.01(d). The Future Lease provisions required under Sections 2.01 (b), 2.01(c) and 2.01(d) are referred to collectively in this Declaration as the "<u>Restrictive Lease Provisions</u>".

(b) All Future Leases shall include each of the following provisions (or, at the election of the applicable Restricted Owner, provisions which are more restrictive than the following provisions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No tenant shall have the right to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) conduct any Broadcast activities from any area of the Condominium Buildings other than the Permitted Building Areas; <u>provided</u>, <u>however</u>, that no tenant may conduct any such Broadcast activities from the Permitted Building Areas on a regular basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) conduct any Broadcast activities or video production activities (or display any signs, symbols or logos commonly identified with such Broadcast or video production activities) in any ground floor or second floor space within 25 yards from the 49th Street/Rockefeller Plaza Corner of Studio lA (except that such distance shall be fifty (50) yards in the due east direction only), unless such activities are not visible from the street in front of Studio lA or from cameras normally used, as of the date of this Declaration, for Studio lA Broadcasts; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) operate any ground floor studio, open and visible to the public from the exterior of the Condominium Buildings or from any public portion of the Permitted Building Areas, for the video production or Broadcast of (I) a general news and interview program (<u>e</u>.<u>g</u>., TODAY, NIGHTLY NEWS or MSNBC Programs), or (II) a business or financial news program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) For so long as NBC occupies the largest aggregate number of Net Rentable Square Feet in the Condominium Buildings, the tenant shall not install or display any signs, symbols or logos on the exterior of any of the Condominium Buildings above the second floor thereof. without such tenant first obtaining the prior written consent of NBC. Any permitted signs, symbols or logos for Broadcast or video production activities in the Center (whether displayed on the exterior of the Condominium Buildings or on the exterior of any other Building in the Center) shall be consistent in size, color and general appearance with the then current standards for such signs, symbols or logos throughout the Center.

(c) Without limiting the generality of Section 2.01(b), all Future Leases entered into with Tenant-Competitors shall also include each of the following provisions (or, at the election of the applicable Restricted Owner, provisions which are more restrictive than the following provisions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Tenant-Competitor shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) conduct any Broadcast activities from any area of the Condominium Buildings (including. but not limited to, the Permitted Building Areas) if such Tenant-Competitor is a Competitor of the type described in clause (i) or clause (ii) of the definition of "Competitor" (as set forth in Section 1.01(c)); <u>provided</u>, <u>however</u>, that any Tenant-Competitor which is a Competitor of the type described in clause (iii), clause (iv), clause (v), or clause (vi) of the definition of "Competitor" (as set forth in Section 1.01(c)) may conduct Broadcast activities from within the Permitted Building Areas, so long as such Broadcast activities (1) are not conducted on a regular basis, and (2) comply with the restrictions set forth in Sections 2.01(c)(i)(B), 2.01(c)(ii)(A) and 2.01(c)(ii)(B);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) operate in the Protected Zone any ground floor or concourse level Broadcast or video production studio which is open and visible to the public from the exterior of the Condominium Buildings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) install or display in the Protected Zone any signs, symbols or logos commonly identified with such Tenant-Competitor; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) install or display on the eastern facade of 30 Rockefeller Plaza any signs, symbols or logos commonly identified with such Tenant-Competitor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Tenant-Competitors and/or their Agents shall not have any right to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) use Protected Zone Images in any Broadcast on a regular basis; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) use Protected Zone Images for Broadcasts which involve the simultaneous transmission of signs, symbols or logos commonly identified with such Tenant-Competitor and/or its Agents (it being understood that the term "simultaneous" shall mean the transmission of such signs, symbols or logos within one (1) minute immediately prior to or immediately following transmission of such Protected Zone Images); <u>provided</u>, <u>however</u>, that promotional spots and station identification messages required by the Federal Communications Commission or any successor Governmental Authority having jurisdiction over any such Broadcast shall be permitted within thirty (30) seconds immediately prior to, or immediately following, the transmission of such Protected Zone Images (or such shorter periods, not within the reasonable control of the Person(s) making such Broadcast, as may be required by Legal Requirements).

(d) Each Future Lease shall also provide that if the tenant under such Future Lease is not a Tenant-Competitor at the commencement of such Future Lease, but becomes a Tenant-Competitor during the term of such Future Lease (including the initial term or any renewal or extension term of such Future Lease), as a result of being acquired by, or otherwise becoming an Affiliate of, a Competitor, then, in such event, (i) the Restrictive Lease Provisions contained in Section 2.01(c) shall not apply to such tenant during the then current term of such Future Lease, but shall apply during such term to all activities of the Competitor in question (including the installation or display by such tenant of signs, symbols or logos commonly identified with such Competitor), and (ii) the Restrictive Lease Provisions contained in Section 2.01(c) shall apply to such tenant during the next renewal or extension term (and all succeeding renewal or extension terms, if any) with respect to such Future Lease. If the tenant under a Future Lease is not a Tenant-Competitor at the commencement of such Future Lease but such tenant subsequently changes or expands its business operations so as to become a Competitor during the term of such Future Lease (including the initial term or any renewal or extension term of such Future Lease), then, in such event, the Restrictive Lease Provisions contained in Section 2.01(c) shall apply automatically and immediately to such tenant. All Future Leases shall provide, to the extent permitted under applicable law, that any sublease effected pursuant to any Future Lease shall contain (and the subtenant under any such sublease shall be bound by) the Restrictive Lease Provisions.

(e) Notwithstanding anything set forth in this Declaration to the contrary:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Nothing contained in this Declaration is intended to prohibit or restrict the activities of any tenant or other Person, except to the extent that such activities are expressly prohibited or restricted under Sections 2.01(b), 2.01(c) or 2.01(d); <u>provided</u>, <u>however</u>, that no Restricted Owner shall give its consent or approval to the taking of any action by any tenant or other Person (without regard to whether such tenant or other Person is otherwise subject to the Restrictive Lease Provisions) if (A) such Restricted Owner has the right to withhold such consent or approval (and such Restricted Owner's right of consent or approval has not been limited or restricted in any way), and (B) the giving of such consent or approval would permit the taking of actions which would be prohibited by the Restrictive Lease Provisions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the generality of clause (i) above, nothing contained in this Declaration shall be deemed or construed to prohibit or restrict the right of any tenant or other Person (including, but not limited to, any Tenant-Competitor) to Broadcast in any manner (or from any area of the Center) any news event or news-related special event or promotional event which may occur at the Center; <u>provided</u>, <u>however</u>, that the Operator shall give to NBC the first choice of camera positions with respect to coverage of any news event or news-related special event, if and to the extent that the giving of such rights to NBC is within the reasonable control of the Operator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Subject to the provisions of Section 2.01 (c)(ii), any tenant or other Person (including, but not limited to, any Tenant-Competitor) may Broadcast (and/or communicate by any other means), at any time and from time to time, the fact that it is located in the Center;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) (A) The Walt Disney Company shall be permitted to operate a retail store in the Protected Zone and/or in any (or all) of the Buildings, so long as the lease for such premises prohibits: (I) the installation or display of signs, symbols or logos commonly identified with the Broadcast or cable networks or television production studios owned by The Walt Disney Company or any of its Affiliates (the "<u>TV Logos</u>"; it being understood that in no event shall the names "Disney", "Walt Disney" or any derivation thereof or any symbol or logo associated therewith, including any animated or "live-action" characters of The Walt Disney Company or any of its Affiliates, be considered a TV Logo); and (II) the installation, display, sale or promotion of merchandise reflecting the Broadcast or cable network operations or television production studios owned by The Walt Disney Company (other than any of the animated or "live-action" characters of The Walt Disney Company or its Affiliates not accompanied by the TV Logos); and (B) the so-called "Disney on Ice" production (as a promotion of Disney's non-Broadcast, non-cable activities) may be held at the Center up to twice per year and shall be permissible;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Each of the Restricted Owners shall use good faith commercially reasonable efforts to enforce the Restrictive Lease Provisions, but no Restricted Owner shall be responsible for any breach by any tenant of any Restrictive Lease Provision contained in its lease and no Restricted Owner shall have any obligation to bring a lawsuit against any such tenant except when requested by NBC to seek specific performance of such provisions (to the extent that such an action for specific performance would be required under the "good faith commercially reasonable effort" standard set forth above); <u>provided</u>, <u>however</u>, that NBC shall pay promptly all attorneys' fees and costs which may be incurred by any Restricted Owner in connection with the prosecution, at NBC's request, of any such lawsuit; and, <u>provided</u> <u>further</u>, that NBC shall have the right to approve litigation counsel and strategy in connection with the prosecution of any such lawsuit at the request of NBC, such approval rights to be exercised in NBC's reasonable discretion; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Nothing contained in this Declaration shall be deemed or construed to prohibit or restrict the activities of tenants of space in the Center under leases in effect as of the date of this Declaration or otherwise to restrict the rights of any of the Restricted Owners or any other Person under contracts or agreements in effect as of the date of this Declaration; <u>provided</u>, <u>however</u>, that no Restricted Owner shall give its consent or approval to the taking of any action by any tenant or other Person (without regard to whether such tenant or other Person is otherwise subject to the Restrictive Lease Provisions) if (A) such Restricted Owner has the right to withhold such consent or approval (and such Restricted Owner's right of consent or approval has not been limited or restricted in any way), and (B) the giving of such consent or approval would permit the taking of actions which would be prohibited by the Restrictive Lease Provisions.

(f) Prior to licensing to any third party the right to Broadcast the annual Rockefeller Center Christmas Tree lighting (or any other ceremony in lieu of the Christmas Tree lighting which may be Broadcast from the Center, from time to time, in connection with the Christmas holiday season) or any video programming relating thereto (the "<u>Christmas Tree Broadcast Rights</u>"), the Restricted Owners shall in good faith negotiate with NBC the terms on which the Restricted Owners would be willing to license such Christmas Tree Broadcast Rights to NBC. If the Restricted Owners and NBC fail to reach a definitive, final written agreement on such terms within thirty (30) days after the Restricted Owners commence such good faith negotiations with NBC, the Restricted Owners shall have no further obligation to NBC with respect to the Christmas Tree Broadcast Rights and thereafter shall be entitled to license the Christmas Tree Broadcast Rights to any third party on such terms and conditions as the Restricted Owners may deem appropriate; <u>provided</u>, <u>however</u>, that if the terms of such license (including the price or other terms or conditions of such license) are materially more favorable to the licensee than the terms on which the Restricted Owners previously offered to license such Christmas Tree Broadcast Rights to NBC (as determined by the Restricted Owners in good faith), then the Restricted Owners shall notify NBC, in writing, of such determination, and NBC shall have the right, exercisable within ten (10) days after its receipt of such notice from the Restricted Owners, to execute and deliver to the Restricted Owners a binding agreement on the same terms as were offered to such proposed third-party licensee. Notwithstanding anything set forth in this Declaration to the contrary, the provisions contained in Sections 2.01 (b), 2.01(c) and 2.01(d) shall not apply to any licensing of Christmas Tree Broadcast Rights effected pursuant to the provisions of this Section 2.01(f).

(g) The covenants made by the Restricted Owners in this Declaration are intended for the sole benefit of NBC and, subject to the provisions of Section 2.01(e)(v), shall be enforceable solely by NBC, subject, in all events, to the provisions of Section 2.01(h). The covenants made by the Restricted Owners in this Declaration shall not be enforceable by any successors or assigns of NBC; <u>provided</u>, <u>however</u>, that any Person which acquires either (i) Control of NBC, or (ii) all or substantially all of the Broadcasting operations of NBC, shall be entitled to enforce the rights granted to NBC in this Declaration.

(h) Notwithstanding anything set forth in this Declaration to the contrary:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon the earlier to occur or (A) the expiration or sooner termination of the Studio IA Lease (other than by reason of a breach by the landlord thereunder), and (B) such time as NBC is no longer Broadcasting from Studio 1A, NBC's right to enforce the restrictions contained in Sections 2.01(b)(i)(B)-(C), 2.01(c)(i)(B)-(D) and 2.01(c)(ii) (together with NBC's right to enforce any corresponding Restrictive Lease Provisions contained in then existing Future Leases) shall automatically terminate and be of no further force or effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) At such time as NBC is no longer Broadcasting from the Center, NBC's right to enforce the restrictions contained in this Section 2.01, together with NBC's right to enforce the corresponding Restrictive Lease Provisions contained in then existing Future Leases, shall automatically terminate and be of no further force or effect, except for the restrictions contained in Sections 2.01(b)(ii) and 2.01(c)(i)(D);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If NBC shall continue to Broadcast from the Center and its occupancy is less than 700,000 Net Rentable Square Feet of space in the Center (inclusive of the premises demised to NBC pursuant to the Studio 1A Lease), but more than 300,000 Net Rentable Square Feet of space in the Center (inclusive of the ·premises demised to NBC pursuant to the Studio lA Lease), then NBC's right to enforce the restrictions contained in this Section 2.01 (together with NBC's right to enforce the corresponding Restrictive Lease Provisions contained in then existing Future Leases) shall automatically terminate and be of no further force or effect, except for the restrictions contained in Sections 2.01(b)(ii), 2.01(c)(i)(D), 2.0 I(e)(i)-(iv)(A) and 2.01(f);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Notwithstanding anything set forth in this Section 2.01(h) to the contrary, if NBC's occupancy falls below 300,000 Net Rentable Square Feet of space in the Center (inclusive of the premises demised to NBC pursuant to the Studio lA Lease), then NBC's right to enforce the restrictions contained in this Section 2.01 (together with NBC's right to enforce the corresponding Restrictive Lease Provisions contained in then existing Future Leases) shall automatically terminate and be of no further force or effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) At such time as any (or all) of the restrictions contained in this Section 2.01 (or any of the Restrictive Lease Provisions contained in any then existing Future Leases) shall be terminated pursuant to, and in accordance with, this Section 2.01(h), then, in such event, NBC hereby agrees to deliver to RCPT a written instrument in recordable form acknowledging that NBC's right to enforce such restrictions (together with NBC's right to enforce the corresponding Restrictive Lease Provisions contained in then existing Future Leases) have terminated and are of no further force or effect.

(i) Each of the Restricted Owners shall have the right, at any time and from time to time, upon not less than ten (10) days' prior Written notice (addressed to both NBC's Controller, and its Senior Vice President or Executive Vice President in charge of Broadcast Operations), to request that NBC certify as to whether a particular Person is or is not then a Competitor for purposes of this Declaration, and the Restricted Owner making such request (as well as the Person which is the subject of the inquiry) shall have the right, for purposes of this Declaration, to rely upon the certification which is' given by NBC, it being understood that any failure on the part of NBC to respond to any such request for certification within five (5) business days after NBC's receipt of such request shall be treated as a certification by NBC that the Person in question should not be treated as a Competitor.

<u>ARTICLE 3</u> 

<u>ARTICLE 3 AGREEMENT TO RUN WITH THE LAND</u> 

It is the intention of the parties hereto that this Declaration, and all of the covenants and restrictions imposed upon the Restricted Owners pursuant to this Declaration, shall run with the land affected thereby, and shall apply to and bind the successors (whether by operation of law or otherwise) and assigns of the respective Restricted Owners. Without limiting the generality of the foregoing, it is the intention of all of the Owners that all mortgagees-in-possession, receivers, purchasers at foreclosure sales or grantees pursuant to deeds or assignments in lieu of foreclosure, and all of their respective successors and assigns (whether by operation of law or otherwise, and including the City of New York or any other Governmental Authority), shall be bound by, and shall in all events take its or their interests in the Center subject to, all of the covenants and restrictions imposed on the Restricted Owners by this Declaration.

<u>ARTICLE 4</u> 

<u>RIGHTS OF MORTGAGEES</u> 

The lien of all Mortgages affecting any Parcel or Parcels owned by any Restricted Owner shall at all times be subject and subordinate to all of the terms, covenants, conditions and obligations set forth in this Declaration, and to any amendments or modifications hereof. Any Mortgagee with respect to any such Parcel or Parcels, provided that NBC shall be given a Notice containing the name and address of such Mortgagee, shall be entitled to (a) receive simultaneous copies of all Notices delivered to the Owner of such mortgaged Parcel(s) by NBC pursuant to, or in connection with, this Declaration, and (b) cure on behalf of such Owner any failure by such Owner to perform any obligation on the part of such Owner to be performed hereunder, provided that such cure shall be accomplished by such Mortgagee within the time period allowed to the defaulting Owner hereunder.

<u>ARTICLE 5</u> 

<u>LIMITATION ON REMEDIES</u> 

The sole remedy for any breach of any covenant or restriction set forth in this Declaration shall be declaratory or injunctive relief, and NBC shall not have any right to seek or obtain damages at law for any breach of any such covenant or restriction; <u>provided</u>, <u>however</u>. that NBC shall have the right to seek and obtain damages at law against a Restricted Owner upon the third or any later separate breach, in a similar manner, of any covenant or restriction contained in this Declaration if (and only if) (i) NBC shall have given notice to such Restricted Owner of such similar breach in each instance, and (ii) with respect to at least one (1) such similar breach occurring prior to a breach for which damages at law shall be sought, NBC shall have obtained (prior to the occurrence of such breach for which damages at law shall be sought) a preliminary injunction (as distinguished from a temporary restraining order) or a declaratory judgment from a court of competent jurisdiction (which injunction or judgment shall not have been reversed, overturned on appeal or vacated prior to the date upon which NBC files its suit, action or proceeding seeking damages against a Restricted Owner) that such Restricted Owner did so breach the covenant or restriction in question (any such injunction or judgment, a

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"Determination") it being understood that the pendency of an appeal or motion to vacate at the time of such filing by NBC or any later reversal or decision on such appeal or motion to vacate shall have no effect on NBC's right to seek or obtain such damages. It is further understood and agreed that (a) a written agreement or acknowledgment from a Restricted Owner stating that such Restricted Owner breached any covenant or restriction contained in this Declaration shall be deemed to constitute a Determination with respect to such breach, and (b) each Restricted Owner hereby agrees that in connection with any declaratory or injunctive relief sought by NBC hereunder, such Restricted Owner shall waive its right to raise or assert (and shall not raise or assert), as a defense or otherwise, in any such action for declaratory or injunctive relief, that the alleged breach in controversy is not justiciable because the dispute at issue has become moot, or because the act, omission, or conduct which gave rise to such action is no longer continuing or will not occur in the future.

<u>ARTICLE 6</u> 

<u>NOTICES</u> 

All notices, approvals, consents, elections, requests or other communications required or permitted to be given under this Declaration ("<u>Notices</u>") must be in writing and may be (a) delivered personally, (b) delivered by a nationally recognized overnight courier, (c) mailed by registered or certified mail, postage prepaid, with return receipt requested, or (d) sent by telecopier (with written confirmation of the receipt of the telecopy). with the original to follow in the manner specified in clauses (a), (b) or (c) above, and addressed to each of the parties hereto at the respective addresses set forth in the first paragraph of this Declaration, or at such other address as from time to time shall be supplied by either party hereto by like Notice. Notices will be deemed to be received, (i) if personally delivered, upon delivery, (ii) if sent by overnight courier, on the first (1st) Business Day after being sent, (iii) if sent by mail, on the date set forth on the return receipt, and (iv) if sent by telecopier, on the date sent, if confirmation of receipt shows delivery on or before 5:00 P.M., or on the next Business Day, if confirmation of receipt shows delivery after 5:00 P.M. Each party hereto shall be entitled to rely on all communications which purport to be on behalf of any other party and which purport to be signed by such party. Each of the parties hereto may require that a copy of all Notices be sent to its attorney and up to two other addressees if designated by Notice given either simultaneously with the execution hereof or as aforesaid, provided that such copies of Notices shall be, deemed courtesy copies only, and the failure of any such parties to receive any Notice shall not in any manner render the giving of such Notice ineffective against any party to this Declaration.

<u>ARTICLE 7</u> 

<u>MISCELLANEOUS</u> 

7.01 If any term or provision of this Declaration or the application thereof to any Person or circumstances shall, to any extent, be held to be invalid or unenforceable, the remainder of this Declaration, or the application of such term or provision to other Persons or circumstances, shall not be affected thereby, and each other term and provision of this Declaration shall be valid, and shall be enforced to the fullest extent permitted by applicable law.

7.02 All understandings and agreements heretofore had between the parties hereto with respect to the subject matter of this Declaration are merged in this Declaration, which alone fully and completely expresses their agreement with respect to the subject matter hereof.

7.03 This Declaration may not be modified, amended or terminated, nor may any of its provisions be waived, except in a writing signed by NBC and each of the Restricted Owners.

7.04 This Declaration shall be governed by, and construed and enforced in accordance with the laws of the State of New York, without the aid of any canon, custom or rule of law requiring construction against the party drafting or causing the drafting of the provision in question.

7.05 NBC and each of the Restricted Owners agrees to do such other and further acts and things, and to execute and deliver such instruments and documents, as NBC or any Restricted Owner may reasonably request, from time to time, to effect the intent and purposes of this Declaration.

7.06 The table of contents and headings contained in this Declaration are for reference purposes only, and shall not affect in any way the meaning or interpretation of this Declaration. All references to Articles and Sections shall be deemed to refer to the Articles and Sections of this Declaration. Whenever the words "include", "includes", or "including" are used in this Declaration, they shall be deemed to be followed by the words "without limitation". All exhibits referred to in and attached to this Declaration are incorporated herein and by this reference are made a part hereof.

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IN WITNESS WHEREOF, the parties hereto have executed or caused this Declaration to be executed as of the date first set forth above.

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| | | |
|:---|:---|:---|
| RCPI TRUST | RCPI TRUST | RCPI TRUST |
| By: | /s/ Geoffrey P. Wharton | /s/ Geoffrey P. Wharton |
|  | Name: | Geoffrey P. Wharton |
|  | Title: | Vice President |
| NATIONAL BROADCASTING COMPANY, INC. | NATIONAL BROADCASTING COMPANY, INC. | NATIONAL BROADCASTING COMPANY, INC. |
| By: | /s/ Warren C. Jenson | /s/ Warren C. Jenson |
|  | Name: | Warren C. Jenson |
|  | Title: | Senior Vice President |

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**Exhibits** 

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| | |
|:---|:---|
|  Exhibit A: | <u>Description of the Condominium and the Parcels</u> |
|  Exhibit B: | <u>Annotated Diagram of Rockefeller Center</u> |
|  Exhibit C: | <u>Diagram of the Permitted Building Areas</u> |
|  Exhibit D: | <u>Diagram of the Protected Zone</u> |

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**Exhibit A** 

<u>Description of the Condominium and Parcel 1</u> 

<u>BLOCK 1265 LOTS 1001-1109 (F/K/A BLOCK 1265 LOT 1</u>)

The condominium units (the "Units") in the Condominium Buildings, in Rockefeller Center in the Borough of Manhattan, City, County and State of New York, which Units are designated and described in the Declaration Establishing a Plan for Condominium Ownership of Premises under Article 9-B of the Real Property Law of the State of New York (the New York Condominium Act), dated as of December 1, 1988 (the "Declaration") and recorded on December 19, 1988 in the Office of the City Register for New York County (the "Register's Office") in Reel 1509, Page 989. The Units are designated as Tax Lots 1001 through 1109 in Block 1265 of Section 5, in the Borough of Manhattan on the Tax Map of the Real Property Assessment Department of the City of New York, and are shown on the floor plans of the Condominium Buildings, certified by the Register's Office on the 19th day of December, 1988, as Condominium Plan No. 4845. The Land upon which the Condominium Buildings are located is more particularly described as follows:

ALL that certain plot, piece or parcel of land, situate, lying and being in the Borough of Manhattan, County of New York, City and State of New York, bounded and described as follows:

BEGINNING at the intersection of the northerly side of 49th Street and the easterly side of Avenue of the Americas;

RUNNING THENCE easterly along the northerly side of 49th Street 545 feet 0 inches to the westerly side of Rockefeller Plaza;

THENCE northerly along the westerly side of Rockefeller Plaza 200 feet 10 inches to the southerly side of 50th Street;

THENCE westerly along the southerly side of 50th Street 478 feet 6-1/2 inches;

THENCE southerly parallel with the easterly side of Avenue of the Americas 25 feet 4-1/2 inches;

THENCE westerly parallel with 50th Street and partly through a party wall 66 feet 5-1/2 inches to the easterly side of Avenue of the Americas;

THENCE southerly along the easterly side of Avenue of the Americas 175 feet 5-1/2 inches to the northerly side of 49th Street the point or place of BEGINNING.

TOGETHER WITH a non-exclusive easement for pedestrian access to the Condominium Buildings over the land described as follows:

ALL that certain plot, piece or parcel of land. situate, lying and being in the Borough of Manhattan, City, County and State of New York, bounded and described as follows:

BEGINNING at a point (hereinafter, "<u>Point A</u>") on the southerly side of West 50th Street distant 545 feet easterly from the corner formed by the intersection of the easterly side of Avenue of the Americas with the southerly side of 50th Street;

THENCE southerly at right angles with West 50th Street 200 feet 10 inches to a point at the northerly side of 49th Street (hereinafter, "<u>Point B</u>");.

THENCE easterly along the northerly side of 49th Street, 60 feet to a point (hereinafter, ("<u>Point C</u>");

THENCE northerly at right angles with West 49th Street 200 feet 10 inches to the southerly side of 50th Street;

THENCE westerly along the southerly side of 50th Street, 60 feet to the point or place of BEGINNING.

Which lies above a plane located at an elevation at Point A of 65.87 feet, at Point B of 63.47 feet and at Point C of 63.75 feet.

Elevations refer to the datum in use by the department of Highways, Borough of Manhattan, which is 2.75 feet above the U.S. Coast and Geodetic Survey datum of mean sea level at Sandy Hook."

TOGETHER with the common elements appurtenant to each unit as set forth in the Declaration of Condominium.

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**<u>Description of the RCPT Units</u>**

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| | | | |
|:---|:---|:---|:---|
| UNIT | TAX<br>LOT | UNIT | TAX<br>LOT |
|  Additional Unit SB/l | 1002 | Additional Unit 44/1 | 1048 |
|  Additional Unit CON/1 | 1003 | Additional Unit 45/1 | 1049 |
|  RGI Unit 1/1 | 1004 | Tower Unit 50/1 | 1054 |
|  Additional Unit MEZZ/1 | 1005 | Additional Unit 54/1 | 1058 |
|  Additional Unit 19/1 | 1023 | Additional Unit 55/1 | 1059 |
|  Additional Unit 20/1 | 1024 | Additional Unit 56/1 | 1060 |
|  Additional Unit 24/1 | 1028 | Additional Unit 57/1 | 1061 |
|  Additional Unit 27/1 | 1031 | Additional Unit 58/1 | 1062 |
|  Additional Unit 28/1 | 1032 | Additional Unit 59/1 | 1063 |
|  Additional Unit 29/1 | 1033 | Additional Unit 60/1 | 1064 |
|  Additional Unit 30/1 | 1034 | Additional Unit 61/1 | 1065 |
|  Additional Unit 31/1 | 1035 | Additional Unit 62/1 | 1066 |
|  Additional Unit 32/1 | 1036 | Additional Unit 63/1 | 1067 |
|  Additional Unit 33/1 | 1037 | Additional Unit 64/1 | 1068 |
|  Additional Unit 34/1 | 1038 | Additional Unit 65/1 | 1069 |
|  Additional Unit 35/1 | 1039 | Additional Unit 66/1 | 1070 |
|  Additional Unit 3611 | 1040 | Additional Unit 67/1 | 1073 |
|  Additional Unit 37/1 | 1041 | Additional Unit 69/1 | 1074 |
|  Additional Unit 38/1 | 1042 | Additional Unit CON/S | 1076 |
|  Additional Unit 39/1 | 1043 | Additional Unit CM/S | 1077 |
|  Additional Unit 40/1 | 1044 | Additional Unit 1/S | 1080 |
|  Additional Unit 41/1 | 1045 | Additional Unit 1M/S | 1081 |
|  Additional Unit 42/1 | 1046 | Additional Unit CON/9 | 1092 |
|  Additional Unit 43/1 | 1047 | Additional Unit 1/9 | 1093 |

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**<u>Description of the NBC Fee Units</u>**

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| | |
|:---|:---|
| UNIT | TAX<br>LOT |
|  Additional Unit 22/1 | 1026 |
|  Additional Unit 23/1 | 1027 |
|  Tower Unit 49/1 | 1053 |

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**<u>Description of the NBC/IDA Units</u>**

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| | | | |
|:---|:---|:---|:---|
| UNIT | TAX<br>LOT | UNIT | TAX<br>LOT |
|  Tower Unit SB/1 | 1001 | Studio-RCA West Unit SB/S | 1075 |
|  Tower Unit 2/1 | 1006 | Studio-RCA West Unit CM/S | 1078 |
|  Additional Unit 2/1 | 1007 | Studio-RCA West Unit 1/S | 1079 |
|  Tower Unit 3/1 | 1008 | Studio-RCA West Unit IM/S | 1082 |
|  Tower Unit 4/1 | 1009 | Studio-RCA West Unit 2/S | 1083 |
|  Tower Unit 5/1 | 1010 | Studio-RCA West Unit 3/S | 1084 |
|  Tower Unit 6/1 | 1011 | Studio-RCA West Unit 4/S | 1085 |
|  Tower Unit 7/1 | 1012 | Studio-RCA West Unit 5/S | 1086 |
|  Tower Unit 8/1 | 1013 | Studio-RCA West Unit 6/S | 1087 |
|  Tower Unit 9/1 | 1014 | Studio-RCA West Unit 7/S | 1088 |
|  Tower Unit 10/1 | 1015 | Studio-RCA West Unit 8/S | 1059 |
|  Tower Unit 11/1 | 1016 | Studio-RCA West Unit 9/S | 1090 |
|  Tower Unit 12/1 | 1017 | Studio-RCA West Unit 10/S | 1091 |
|  Tower Unit 141 | 1018 | Studio-RCA West Unit IM/9 | 1094 |
|  Tower Unit 151 | 1019 | Studio-RCA West Unit 2M/9 | 1095 |
|  Tower Unit 161 | 1020 | Studio-RCA West Unit 2/9 | 1096 |
|  Tower Unit 171 | 1021 | Studio-RCA West Unit 3/9 | 1097 |
|  Tower Unit 18/1 | 1022 | Studio-RCA West Unit 4/9 | 1098 |
|  Additional Unit 21/1 | 1025 | Studio-RCA West Unit 5/9 | 1099 |
|  Additional Unit 25/1 | 1029 | Studio-RCA West Unit 6/9 | 1100 |
|  Additional Unit 26/1 | 1030 | Studio-RCA West Unit 7/9 | 1101 |
|  Tower Unit 46/1 | 1050 | Studio-RCA West Unit 8/9 | 1102 |
|  Tower Unit 47/1 | 1051 | Studio-RCA \Vest Unit 9/9 | 1103 |
|  Tower Unit 48/1 | 1052 | Studio-RCA West Unit 10/9 | 1104 |
|  Tower Unit 51/1 | 1055 | Studio-RCA West Unit 11/9 | 1105 |
|  Tower Unit 52/1 | 1056 | Studio-RCA \Vest Unit 12/9 | 1106 |
|  Tower Unit 53/1 | 1057 | Studio-RCA West Unit 14/9 | 1107 |
|  Tower Unit 66/1 | 1071 | Studio-RCA West Unit 15/9 | 1108 |
|  Tower Unit 67/1 | 1072 | Studio-RCA West Unit 16/9 | 1109 |

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**<u>Exhibit B</u>**

**<u>Annotated Diagram of Rockefeller Center</u>**

[Graphic of Rockefeller Center Parcel Divisions 1 through 8, 10, 11, 17 and 18.]

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**<u>Exhibit C</u>**

**<u>Diagram of the Permitted Building Areas</u>**

[Graphic of 30 Rockefeller diagram indicating permitted building areas.]

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**<u>Exhibit D</u>**

**<u>Diagram of the Protected Zone</u>**

[Graphic of Rockefeller Plaza protected zone.]

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<u>EXHIBIT D-1</u> 

**<u>CHILLED WATER SPECIFICATION</u>**

(a) Landlord shall provide to Tenant, without charge, chilled water to the Music Hall to be utilized by Tenant up to the existing design capacities of 1270 Avenue of the Americas and the Music Hall to cool 1270 Avenue of the Americas and the Music Hall, based on the demand requirements of 1270 Avenue of the Americas and the Music Hall, limited to the design capacity of the HVAC plant serving the Center (the "<u>Central Plant</u>") year round.

(b) Tenant shall, at its own expense, provide supplemental chilled water to 1270 Avenue of the Americas, without charge, when the Central Plant exceeds its existing design capacity during the peak cooling season. Tenant shall be given access to monitor the Central Plant's load through the current environmental control system.

(c) Tenant shall utilize, operate and fully maintain the Refrigeration Plant within the Music Hall; and Tenant, at its own expense, shall enter into an annual maintenance contract reasonably satisfactory to Landlord with an HVAC contractor from a list of approved HVAC contractors to be provided by Landlord to Tenant at Tenant's request, and Tenant shall pay costs in connection with such contract.

(d) Tenant shall maintain in good working order all heat exchangers and pumps associated with the operation and distribution of chilled water to 1270 Avenue of the Americas, year round, without charge to Landlord.

D - 1 - 1

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<u>EXHIBIT D-2</u> 

**<u>1270 SPACE CHILLED WATER SPECIFICATION</u>**

Landlord shall provide to Tenant for the 1270 Space chilled water in sufficient quantity such that if Tenant installs the appropriately sized and appropriate quality HVAC equipment, such equipment shall be capable of maintaining 78 degrees Fahrenheit when summer outdoor conditions are 92 degrees Fahrenheit dry bulb and 74 degrees Fahrenheit wet bulb. The HVAC shall be capable of maintaining 68 degrees Fahrenheit at winter outdoor conditions of 11 degrees Fahrenheit. The HVAC System shall be capable of handling (i) an electrical usage load of 4 watts per usable square foot; (ii) an occupancy rate of one (1) person per 150 usable square feet; and (iii) a ventilation make-up rate of 20 cubic feet per minute per person with the blinds or shades drawn on the exposure subject to direct solar radiation.

D - 2 - 1

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<u>EXHIBIT E</u> 

**<u>INTENTIONALLY OMITTED</u>**

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<u>EXHIBIT F</u> 

**<u>RETAIL OFFER SPACE COVENANTS</u>**

The business to be conducted at, through and from the Offer Space and the kind and quality of the merchandise and services offered in the conduct thereof shall be first class and the sales methods employed and all other elements of merchandising, display and advertising, shall be dignified and in conformity with the highest standards of practice of stores, shops and concerns dealing in the same or similar merchandise or conducting a similar business in the Center or the Fifth Avenue shopping district adjacent thereto.

Clean the windows and doors (including, in each ease, the frames thereof) in the Offer Space and in the perimeter walls thereof, in accordance with any applicable Requirements, whenever necessary to maintain such items in a first-class condition.

Keep the Offer Space clean and sanitary; not permit garbage or waste materials to accumulate or become a nuisance; seal all refuse in plastic bags of adequate strength and size; maintain all garbage dumpsters in a clean and sanitary condition; remove all rubbish and other debris from the Offer Space to such location as may be specified by Landlord from time to time and under conditions approved by Landlord.

Keep all glass in the Offer Space and in the perimeter walls thereof, the frames for such glass, and any lettering and ornamentation on such glass insured against damage (including temporary repairs) for the benefit of Landlord for the full replacement value thereof. Such insurance shall be effected, at the option of Landlord, either by Tenant paying to Landlord a proportionate share of the premium incurred by Landlord for a blanket comprehensive glass policy for the Building or the Center, or by Tenant furnishing Landlord with a separate policy or policies for such glass insurance, in such form and placed with such underwriters as may be approved by Landlord. If Landlord elects to obtain such insurance, then Tenant shall pay to Landlord Tenant's proportionate share of Landlord's blanket premium within 10 days after demand therefor, and promptly following such payment, Landlord shall furnish Tenant with a certificate of such insurance.

Completely renovate and remodel the Offer Space and install a new storefront sign and trade fixtures in accordance with the other provisions of this Lease, occupy and open the entire Offer Space for the conduct of Tenant's business as soon as the Offer Space Commencement Date has occurred, and thereafter keep the entire Offer Space open for business during all Business Hours, plus any additional hours as retail premises are generally open for business at the Center.

Adequately staff the Offer Space with sufficient, well-trained employees to handle the business therein, and carry sufficient stock of seasonal merchandise of such size, character and quality as to maintain an adequate sales volume in the Offer Space.

Not install or place any lettering, sign, advertisement or notice on the windows or doors or on the exterior of the Offer Space or within 3 feet of any display window or entrance of the Offer Space which is not (i) approved in writing by Landlord prior to installation and (ii) in conformity with Landlord's standard sign and store front program for the Center, if any, as such program may be reasonably modified by Landlord from time to time by notice to Tenant. On or before the expiration or earlier termination of this Lease, Tenant shall remove all lettering, signs, advertisements and notices from the Offer Space.

Not install, place or permit any awning or canopy on the perimeter walls of the Offer Space unless provided or approved by Landlord in its sole discretion and if so provided or approved, keep each such awning or canopy clean and in good order, repair and appearance to Landlord's reasonable satisfaction.

From time to time during the Term, redecorate the Offer Space and refinish, renew or replace the fixtures, furnishings, decorations and equipment therein as may be necessary, in Landlord's reasonable judgment, to preserve the good appearance of the Offer Space in keeping with the general standard maintained in similar areas in the Center.

Promptly after the Offer Space Commencement Date and at all times during the Term, install and maintain displays in all windows in the Offer Space, including windows facing the lobby of 1270 Avenue of the Americas, if any. All such displays and all exhibits, announcements, lettering, lighting, and other appurtenances used in such connection shall be maintained in a first-class manner consistent with the Center. Tenant shall promptly after notice from Landlord remove from the Offer Space any displays which fail to meet the standards set forth in this <u>subsection</u>, in Landlord's sole judgment, and if Tenant fails to promptly remove such display within 24 hours after notice from Landlord, Landlord may perform such work on Tenant's behalf, and Tenant shall pay all costs and expenses incurred by Landlord in so doing, as provided in <u>Article 21</u>. On or before the expiration or earlier termination of this Lease, Tenant shall remove all displays from the Offer Space.

At all times during the Term, keep the lights lit which illuminate those shop windows on the street and mezzanine levels facing the street during non-daylight hours (beginning at least one hour prior to sunset).

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Maintain a contract to have the door and brass signage above the exterior of the Offer Space polished semi-annually in a manner satisfactory to Landlord, submit maintenance records with respect to such metal maintenance to the manager of 1270 Avenue of the Americas and on a semi-annual basis, and make such maintenance records available for review by such manager upon request at all times during the Term. If Tenant fails to comply with the provisions of this <u>subsection</u> within 5 days after notice from Landlord, Landlord may perform such work on Tenant's behalf, and Tenant shall pay all costs and expenses incurred by Landlord in so doing, as provided in <u>Article 21</u>. The polishing of such doors and brass signage shall be done by Landlord's designated contractor, provided such contractor's rates are reasonably competitive with rates of other reputable contractors providing such services to comparable first-class buildings in midtown Manhattan. If Tenant shall dispute whether Landlord's designated contractor's rates are competitive, it shall so notify Landlord in writing and include with its notice a bona fide firm bid from another comparable, reputable contractor to perform such services at a rate which is more than 10% less than Landlord's designated contractor. Provided such bid is bona fide and from a comparable, reputable contractor, Landlord's designated contractor shall within thirty (30) days thereafter reduce its charges so that its charges are not more than 10% greater than that of Tenant's proposed contractor or Landlord shall not unreasonably withhold or delay its consent to Tenant's use of its proposed contractor to provide such services. Any contract entered into by Tenant shall be for a period of no more than one year at which time Landlord's designated contractor shall again be afforded an opportunity to bid on such work and shall be awarded such work unless its bid is more than 10% higher than the contractor previously selected by Tenant.

Provide and maintain in good working order during the Term a security system adequate to provide reasonable protection to the Offer Space, including a 24-hour direct response smoke, fire and burglary alarm system. If Tenant employs security guards at the Offer Space, under no circumstances shall such security guards carry firearms of any kind. Tenant understands that Landlord shall not provide Tenant with any security guards or alarm or security systems of any kind or nature, and shall have no liability or obligation to Tenant arising from any claims for loss, injury or damage to persons or property in connection therewith.

As soon as practicable and in any event within 24 hours after any exterior or interior glass (including mirrors) is broken or cracked, including any so-called "bull's-eye" break in the glass, replace such glass with glass of the same kind and quality, and repair or replace the frames for such glass if necessary or desirable in Landlord's reasonable judgment, and if Tenant fails to do so within 24 hours after notice from Landlord, Landlord may perform such work on Tenant's behalf, and Tenant shall pay all costs and expenses incurred by Landlord in so doing, as provided in <u>Article 21</u>.

Not conduct any clearance, "going-out-of-business", auction, distress, fire or bankruptcy or similar sale in the Offer Space, other than seasonal, promotional or other special sales as are incident to the normal operation of Tenant's business.

Place no fixtures, furnishings, decorations or equipment in the Offer Space at any time during the Term which can be seen from the outside of the Offer Space, without the prior written approval of Landlord in each instance, such approval not to be unreasonably withheld. Tenant shall remove from the Offer Space any such items installed without Landlord's approval, and if Tenant fails to do so within 24 hours after notice from Landlord, Landlord may perform such work on Tenant's behalf, and Tenant shall pay all costs and expenses incurred by Landlord in so doing, as provided in <u>Article 21</u>. On or before the expiration or earlier termination of this Lease, Tenant shall remove all fixtures, furnishings, decorations and equipment from the Offer Space.

Not remove any trade fixtures or other contents of the Offer Space (other than inventory) prior to the Expiration Date without the prior consent of Landlord (which consent shall not be unreasonably withheld), except that Tenant may remove trade fixtures so long as Tenant promptly installs replacement trade fixtures at least equal in quality, value and function to those being removed.

Not (1) place or maintain any merchandise or other articles in any area outside of the Offer Space, or on the sidewalks, corridors or other common areas of the Center, nor (2) receive or ship articles of any kind outside the designated loading areas for the Offer Space, nor (3) permit the parking of vehicles so as to interfere with the use of any driveway, corridor, footwalk, parking area or other common area of the Center.

Direct all patrons to enter and leave the Offer Space through the separate exterior door exclusively serving the Offer Space.

Cause all of its staff and employees to enter and exit the Offer Space at all times through the separate exterior door exclusively serving the Offer Space.

Not use, play or operate or permit to be used, played or operated any sound making or sound reproducing device in the Offer Space, if such sound can be heard outside of the Offer Space, and observe, comply with and adopt such means and precautions as Landlord may from time to time request in such connection.

Not install or use any lighting equipment in or about the Offer Space which is visible from or casts light toward the exterior of the Offer Space without the prior written consent of Landlord.

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If any catalog, mail or telephone order sales are made in or from the Offer Space, not store on or ship from the Offer Space any merchandise sold in such manner.

The Offer Space may not be used for the sale of items which would violate any "exclusive" granted by Landlord to another retail tenant in the Center.

Tenant understands and agrees that a breach by Tenant of any of the provisions of <u>Article 37</u> and the covenants set forth in this <u>Exhibit F</u> shall be deemed a material breach of this Lease and considered an Event of Default hereunder. Tenant acknowledges that damages resulting from any breach of the provisions of <u>Article 37</u> and the covenants set forth in this <u>Exhibit F</u> are difficult, if not impossible, to ascertain and concedes that, among other remedies for such breach permitted by law or the provisions of this Lease, Landlord shall be entitled to seek to enjoin Tenant from any violation hereof.

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<u>EXHIBIT G</u> 

**<u>STUDIO APARTMENT FLOOR PLAN</u>**

<u>[Graphic Radio City Music Hall</u> 

<u>Studio Apartment Floor Plan]</u> 

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<u>EXHIBIT H</u> 

**<u>RULES AND REGULATIONS</u>**

1. The rights of Tenant in the sidewalks, entrances, corridors, stairways, elevators and escalators of the Ancillary Buildings are limited to ingress to and egress from the Ancillary Space for Tenant and any other Tenant Party, and Tenant shall not invite to the Ancillary Space, nor permit the visit thereto by, persons in such numbers or under such conditions as to interfere with the use and enjoyment by others of the sidewalks, entrances, corridors, stairways, elevators, escalators or any other facilities of the Ancillary Buildings. Fire exits and stairways are for emergency use only, and they shall not be used for any other purpose by any Tenant Party. Landlord shall have the right to regulate the use of and operate the public portions of the Ancillary Buildings, as well as portions furnished for the common use of the tenants, in such manner as it deems best for the benefit of the tenants generally.

2. Landlord may refuse admission to the Ancillary Buildings outside of Business Hours to any person not having a pass issued by Landlord, the necessary items to gain admission to the Club or otherwise not properly identified, and may require all persons admitted to or leaving the Ancillary Buildings outside of Business Hours, with the exception of patrons of the Club, to register. Any person whose presence in the Ancillary Buildings at any time shall, in the judgment of Landlord, be prejudicial to the safety, character, reputation and interests of the Ancillary Buildings or of its tenants may be denied access to the Ancillary Buildings or may be ejected therefrom. In case of invasion, riot, public excitement or other commotion, Landlord may prohibit all access to the Ancillary Buildings during the continuance of the same, by closing doors or otherwise, for the safety of the tenants or protection of property in the Ancillary Buildings. Landlord shall, in no way, be liable to Tenant for damages or loss arising from the admission, exclusion or ejection of any person to or from the Ancillary Space or the Ancillary Buildings under the provisions of this rule. Landlord may require any person leaving the Ancillary Buildings with any package or other object to exhibit a pass from Tenant from whose Ancillary Space the package or object is being removed, but the establishment or enforcement of such requirement shall not impose any responsibility on Landlord for the protection of Tenant against the removal of property from the Ancillary Space of Tenant.

3. Where any damage to the public portions of the Ancillary Buildings or to any portions used in common with other tenants is caused by any Tenant Party, the cost of repairing the same shall be paid by Tenant upon demand.

4. No lettering, sign, advertisement, trademark, emblem, notice or object shall be displayed in or on the windows or doors, or on the outside of the Ancillary Space, or at any point inside the Ancillary Space where the same might be visible outside the Ancillary Space, except that the name of Tenant may be displayed on the entrance door of the 1270 Space, subject to the approval of Landlord as to the location, size, color and style of such display.

5. No awnings or other projections of any kind over or around the windows or entrances of the Ancillary Space shall be installed by Tenant, and only such window blinds and shades as are approved by Landlord shall be used in the Ancillary Space. Linoleum, tile or other floor covering shall be laid in the Ancillary Space only in a manner approved by Landlord.

6. Landlord shall have the right to prescribe the weight and position of safes and other objects of excessive weight, and no safe or other object whose weight exceeds the lawful load for the area upon which it would stand shall be brought into or kept upon the Ancillary Space. If, in the judgment of Landlord, it is necessary to distribute the concentrated weight of any safe or heavy object, the work involved in such distribution shall be done in such manner as Landlord shall determine and the expense thereof shall be paid by Tenant. The moving of safes and other heavy objects shall take place only upon previous notice to, and at times and in a manner approved by, Landlord, and the persons employed to move the same in and out of the Ancillary Buildings shall be acceptable to Landlord. No machines, machinery or electrical or electronic equipment or appliances of any kind shall be placed or operated so as to disturb other tenants. Freight, furniture, business equipment, merchandise and packages of any description shall be delivered to and removed from the Ancillary Space only in the freight elevators and through the service entrances and corridors, and only during hours and in a manner approved by Landlord.

7. Except as otherwise expressly provided in <u>Article 39</u>, no noise, including the playing of any musical instrument, radio or television, which, in the judgment of Landlord, might disturb other tenants in the Ancillary Buildings, shall be made or permitted by Tenant. No animals shall be brought into or kept in the Ancillary Buildings or the Ancillary Space. No dangerous, inflammable, combustible or explosive object or material shall be brought into or kept in the Ancillary Buildings by Tenant or with the permission of Tenant, except as permitted by law and the insurance companies insuring the Ancillary Buildings or the property therein. Tenant shall not cause or permit any odors of cooking or other processes, or any unusual or other objectionable odors, to permeate in or emanate from the Ancillary Space.

8. No additional locks or bolts of any kind shall be placed upon any of the doors or windows in the Ancillary Space and no lock on any door shall be changed or altered in any respect. Duplicate keys for the Ancillary Space and toilet rooms shall be procured only

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from Landlord, and Tenant shall pay to Landlord Landlord's reasonable charge therefor. Upon the expiration or termination of this Lease, all keys of the Ancillary Space and toilet rooms shall be delivered to Landlord.

9. All entrance doors in the Ancillary Space shall be left locked by Tenant when the Ancillary Space are not in use. No door (other than a door in an interior partition of the Ancillary Space) shall be left open at any time.

10. Landlord reserves the right to rescind, alter or waive any rule or regulation at any time prescribed by Landlord when, in its judgment, it deems it necessary, desirable or proper for its best interest or for the best interests of the tenants, and no rescission, alteration or waiver of any rule or regulation in favor of one tenant shall operate as a rescission, alteration or waiver in favor of any other tenant. Landlord shall not be responsible to Tenant for the nonobservance or violation by any other tenant of any of the rules or regulations at any time prescribed by Landlord.

11. Tenant shall promptly notify Landlord of any inspection of the Ancillary Space by governmental agencies having jurisdiction over matters involving health or safety.

12. Tenant shall be responsible for maintaining the Ancillary Space rodent and insect free. With respect to the 50 Rock Space, extermination services shall be provided by Tenant on a monthly basis and, with respect to the 1270 Space, additionally as required in Article 40.

13. All food storage areas shall be adequately protected against vermin entry by a contractor approved in advance by Landlord.

14. Drain pipes shall be kept free of obstructions and operable at all times.

15. Exit signs shall be illuminated, and other exit identification shall be operable, at all times.

16. Emergency lighting, including battery components, shall be in good working condition at all times.

17. Tenant shall not bring or keep, or allow to be brought or kept, in the Ancillary Buildings, any bicycles, roller blades, in line or other skates or other type of wheeled pedestrian form of locomotion.

18. Mail pick-up and delivery shall be responsibility of Tenant.

19. Tenant shall install, if missing, blinds or shades on all windows in the Ancillary Space, which blinds and shades shall be subject to Landlord's approval.

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<u>SCHEDULE 1</u> 

**<u>FIXED RENT</u>**

**(except for Retail Space #1)** 

**FROM OCTOBER 1998 TO FEBRUARY 2001** 

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| | |
|:---|:---|
|  October, 1998 through and including February, 1999 | [\*\*\*\*\*] |
|  March, 1999 through and including October, 1999 | [\*\*\*\*\*] |
|  November, 1999 through and including December, 1999 | [\*\*\*\*\*] |
|  January, 2000 through and including February, 2000 | [\*\*\*\*\*] |
|  March, 2000 through and including October, 2000 | [\*\*\*\*\*] |
|  November, 2000 through and including December, 2000 | [\*\*\*\*\*] |
|  January, 2001 through and including February, 2001 | [\*\*\*\*\*] |

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<u>SCHEDULE 2</u> 

**<u>PERCENTAGE RENT</u>**

(a) **<u>Percentage Rent</u>**. From and after the Rent Commencement Date, Tenant shall pay to Landlord as Rent for each calendar year (or portion thereof) during the Term ("Computation Year"), a sum ("<u>Percentage Rent</u>") equal to the amount, if any, by which (i) Tenant's Gross Revenues (as defined in <u>Section (d)(i)</u>) for any Computation **Year *multiplied by*** [\*\*\*\*\*] (the "<u>Percentage Rent Rate</u>") exceeds (ii) the Fixed Rent for the Premises payable for such Computation Year. For the purposes of computing the amount of Percentage Rent due, each Computation Year shall be considered as an independent accounting period and no charge or credit may be taken in any subsequent Computation Year on account of any Gross Revenues in any prior Computation Year.

(b) **<u>Payment Schedule</u>**. Percentage Rent shall be determined and paid, without any prior demand therefor, from and after the Rent Commencement Date, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No later than 45 days after the close of each calendar quarter during the Term (and no later than 90 days following the Expiration Date), Tenant shall deliver to Landlord a true, correct and complete statement in form from time to time provided by Landlord, calculated on an accrual basis in accordance with generally accepted accounting principles, consistently applied and certified by an authorized officer or agent of Tenant (a "<u>Quarterly Statement</u>"), showing (A) Tenant's Gross Revenues made (1) in the preceding calendar quarter and (2) for the entire elapsed portion of the current Computation Year, including the preceding calendar quarter, and including a detailed itemization of all exclusions therefrom as permitted under <u>Section (d)</u>, (B) all payments of Percentage Rent previously made by Tenant in respect of such Computation Year and (C) a calculation of Percentage Rent then due. Simultaneously with the rendition of each Quarterly Statement, Tenant shall pay to Landlord a quarterly installment of Percentage Rent equal to the difference between (I) the amount, if any, by which (a) the Percentage Rent Rate ***multiplied by*** Tenant's Gross Revenues for the entire elapsed portion of the current Computation Year, including the calendar quarter for which such installment of Percentage Rent is being calculated, exceeds (b) the product of the Fixed Rent payable for such Computation Year multiplied by a fraction, the numerator of which is the number of months in such elapsed portion of the current Computation Year, and the denominator of which is 12 (or, if the number of months in such Computation Year is less than 12, then the number of months in such Computation Year) less (II) the aggregate Percentage Rent previously paid by Tenant in respect of such elapsed potion of the current Computation Year. In the event of a partial calendar month occurring in such Computation Year, there shall be an equitable adjustment of such calculation to provide for such partial calendar month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) No later than 90 days after the close of each Computation Year during the Term, and within 90 days after the Expiration Date, Tenant shall deliver to Landlord, a true, correct and complete statement of Gross Revenues for the preceding Computation Year (an "<u>Annual Statement</u>"), calculated on an accrual basis and setting forth (A) Gross Revenues for such Computation Year and itemizing all permissible exclusions therefrom as set forth in <u>Section (d)</u>, (B) the amount of Percentage Rent paid by Tenant in respect of such Computation Year, and (C) the amount of any deficiency or excess of Percentage Rent paid by Tenant in respect of such Computation Year. Each Annual Statement shall be certified by a nationally recognized independent certified public accountant reasonably acceptable to Landlord to be in accordance with the requirements of <u>Section (d)</u> and with generally accepted accounting principles. Simultaneously with the rendition of each Annual Statement, Tenant shall pay to Landlord the amount of any deficiency shown on the Annual Statement. If the Annual Statement shows an excess of Percentage Rent in respect of such Computation Year, then so long as no Event of Default shall exist under this Lease, Landlord shall credit the amount of such overpayment against the next accruing installments of Rent due under this Lease.

(c) **<u>Delivery of Annual Statement</u>**. If Tenant fails to deliver an Annual Statement to Landlord within such 90-day period, Landlord shall have the right to employ an independent certified public accountant to examine such of Tenant's books and records as may be necessary to certify the amount of Tenant's Gross Revenues for such Computation Year, and Tenant shall pay to Landlord the cost thereof upon demand as Additional Rent. The acceptance by Landlord of payments of Percentage Rent or reports of Gross Revenues shall be without prejudice and shall in no event constitute a waiver of Landlord's right to claim a deficiency or to audit Tenant's books and records as provided herein.

(d) **<u>Gross Revenues</u>**. (i) "<u>Gross Revenues</u>" mean [\*\*\*\*\*]

(ii) If requested by Landlord, Tenant shall submit to Landlord photocopies of the federal, sales, state or local sales tax or similar tax returns filed by Tenant promptly after filing with the appropriate governmental authority. If any governmental authority shall increase the Gross Revenues reported by Tenant on any such tax return, after audit, for any Computation Year for which such Gross Revenues have been reported and if such adjustment affects "Gross Revenues" as defined in this paragraph, then Tenant shall notify Landlord promptly of such increase and shall supply to Landlord a true copy of such audit within 20 days thereafter, and Tenant shall pay to Landlord at that time any additional Percentage Rent due, with interest thereon at the Base Rate from the date upon which Tenant should have paid such Percentage Rent through the date paid.

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(e) **<u>Tenant's Records</u>**. Tenant shall prepare, keep and maintain at the Premises or at Tenant's principal office within New York City, for a period of not less than 3 years following the end of each Computation Year and following the Expiration Date (with respect to the final Computation Year), complete and accurate books of account and records of, but not limited to, all purchases and receipts of merchandise, inventories and all sales and other transactions by Tenant from which Tenant's Gross Revenues from the Music Hall or the Club can be determined. Tenant shall record all sales, at the time each sale is made, whether for cash or credit using either (i) non-resettable electronic cash registers or cash registers containing locked-in cumulative tapes with cumulative capacity, in each case reasonably satisfactory to Landlord, or (ii) a system of duplicate sales slips, invoices or non-resettable cash register receipts, serially numbered, or such other method for recording sales as Landlord approves in its sole judgment. Tenant shall keep for at least 3 years following the end of each Computation Year (or if Landlord and Tenant are disputing the computation of Gross Revenues for any Computation Year, such longer period of time as may be required until the final resolution of such dispute) all pertinent original sales books and records, which records shall include:

(A) daily dated register tapes; (B) serially numbered sales slips; (C) mail orders; (D) telephone orders; (E) settlement report sheets of transactions with subtenants, concessionaires and licensees; (F) records showing that merchandise returned by customers was purchased by such customer at or from the Music Hall or the Club; (G) duplicate bank deposit slips and bank statements; and (H) such other records as would normally be required to be kept and examined by an independent accountant in accordance with accepted auditing practices in performing an audit of Tenant's Gross Revenues; and all income, sales and occupancy tax returns. All of Tenant's obligations under this <u>Section (e)</u> shall survive the Expiration Date for a period of 3 years (or if Landlord and Tenant are disputing the computation of Gross Revenues for any Computation Year such longer period of time as may be required until the final resolution of such dispute).

(f) **<u>Landlord's Right to Audit</u>**. If Tenant shall fail to submit to Landlord (i) any Annual Statement on the date due, and such failure continues for 5 days after notice from Landlord, or (ii) any Quarterly Statement on the date due, and such failure continues for 5 days after notice from Landlord in any 2 quarters, whether or not consecutive, in any period of 12 months, then Landlord shall have the right to perform a complete audit, at Tenant's expense, of Tenant's books of accounts and records of Gross Revenues. Landlord shall also have the right, at any time from time to time, to perform a complete audit of any one or more Quarterly or Annual Statements, and in connection with such audit, to examine Tenant's books of account and records of Gross Revenues, and Tenant shall make all such books of account and records available for examination by Landlord in the Borough of Manhattan, City of New York. Tenant shall permit Landlord to make copies of any such books, records and information as Landlord may require in connection with such audit, at Tenant's cost and expense. Tenant shall pay to Landlord within 10 Business Days after demand any additional Percentage Rent which such audit discloses is due to Landlord, with interest thereon at the Interest Rate from the date upon which Tenant should have paid such Percentage Rent through the date paid. In addition, if (A) such audit discloses that the actual amount of Gross Revenues differs from the amount reported by more than 5%, or (B) the Person conducting such audit reports that, in its opinion, Tenant's records and procedures are insufficient to permit an accurate determination of Gross Revenues for any period, Tenant shall also pay the costs of such audit as Additional Rent to Landlord within 5 days following rendition of a bill therefor. Upon reasonable written notice, Tenant shall permit Landlord to examine Tenant's books of account and records and record-keeping procedures during regular business hours, and to have a representative present on the Premises from time to time to check, verify and tabulate Gross Revenues and to evaluate Tenant's control features affecting the determination of Gross Revenues. All of Landlord's rights of inspection, audit, examination and evaluation granted pursuant to this <u>Section (f)</u> may be exercised by Landlord's accountants or other authorized agents or representatives. Subject to any Requirements, Landlord agrees to maintain the information obtained from such audit in strict confidence, except that Landlord may reveal such documentation to its employees and consultants who are actively involved in such audit, provided that such employees and consultants agree to maintain such information confidential.

(g) **<u>Tenant's Dispute Right</u>**. If Tenant shall dispute Landlord's determination that Tenant owes additional Percentage Rent pursuant to paragraph (f) above, Tenant shall notify Landlord of such dispute within 60 days after Tenant's receipt of Landlord's bill for such additional Percentage Rent and such dispute shall be resolved in accordance with the Dispute Resolution Procedure set forth in <u>Section 38.1</u>. Notwithstanding the foregoing, Tenant's right to dispute such Landlord's determination shall be conditioned upon Tenant's payment in full to Landlord of all amounts of additional Percentage Rent as set forth in Landlord's bill.

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<u>SCHEDULE 3</u> 

**<u>RETAIL OPERATING EXPENSE PAYMENT</u>**

<u>**Definitions**</u>. As used in this Schedule 3:

(a) <sup>"</sup>**<u>Base Operating Year</u>**" means calendar year 1998.

(b) <sup>"</sup>**<u>Base Expense Factor</u>**" means the quotient, expressed in dollars and cents, of (i) the Operating Expenses payable for the Base Operating Year, ***divided by*** (ii) the Center Operating Area for the Base Operating Year.

(c) "**<u>Center Operating Area</u>**" means the number of square feet in the rentable area of the Center which is operated and maintained by Landlord or an Affiliate of Landlord or at the expense of Landlord or an Affiliate of Landlord. Notwithstanding the foregoing, Landlord shall:

(i) subtract from the Center Operating Area the number of square feet in the rentable area of the Center operated and maintained by Landlord or an Affiliate of Landlord but (A) operated and maintained at the expense of any Person other than Landlord (or an Affiliate of Landlord) or (B) owned, as a condominium unit or otherwise, by any Person other than Landlord; and

(ii) add to the Center Operating Area to include the number of square feet in the additional rentable area of the Center operated and maintained by Landlord or an Affiliate of Landlord or at the expense of Landlord or an Affiliate of Landlord.

(d) "**<u>Expense Factor</u>**" means a fraction, the numerator of which is the Operating Expenses payable for any Computation Year subsequent to the Base Operating Year, and the denominator of which is the Center Operating Area.

(e) "**<u>Landlord's Statement</u>**" means an instrument or instruments containing a comparison of the Base Expense Factor and the Expense Factor for any Computation Year.

(f) "**<u>Operating Expenses</u>**" means the costs and expenses (and taxes, if any, thereon) paid or incurred by or on behalf of Landlord and/or its Affiliates with respect to the ownership, operation, maintenance and repair of the Center, including the costs incurred for: (i) air conditioning, ventilation, and heating; (ii) interior and exterior cleaning and rubbish removal, including supervisory fees of Landlord's Agent in connection therewith (provided that if such services are performed by Landlord's Agent, such costs shall not exceed those charged by outside contractors for similar services in comparable office buildings); (iii) window washing; (iv) maintenance and repair of elevators and escalators; (v) hand tools and other movable equipment; (vi) porter and matron service; (vii) electricity, gas, oil, steam, water rates, sewer rents and other utilities; (viii) association fees and dues; (ix) protection and security services; (x) compliance with any agreement with any Governmental Authority with respect to the maintenance of the Center or any part thereof as a landmark; (xi) insurance premiums; (xii) supplies; (xiii) wages, salaries, disability benefits, pensions, hospitalization, retirement plans, severance packages and group insurance for employees of Landlord and Landlord's Agent, up to and including the level of building managers and their immediate supervisors, (xiv) uniforms and working clothes for such employees and the cleaning thereof; (xv) expenses imposed pursuant to any collective bargaining agreement with respect to such employees; (xvi) payroll, social security, unemployment and other similar taxes with respect to such employees; (xvii) sales, use and similar taxes; (xviii) vault charges; (xix) franchise and license fees; (xx) charges of independent contractors performing work in connection with the operation, maintenance and repair of the Center; (xxi) legal, accounting and other professional fees of Landlord and Landlord's Agent; (xxii) installation, operation and maintenance of the Christmas tree for the Center and related holiday decorations, events open to the public and other promotional expenses intended to enhance the environment of the Center; (xxiii) landscaping costs; (xxiv) management fees, or if no management fee is being charged, an imputed management fee not in excess of the amount that would be paid to a property manager for managing a comparable first class office building in midtown Manhattan; and (xxv) the annual depreciation or amortization, on a straight-line basis over such period as Landlord shall reasonably determine (with interest on the unamortized portion at the Base Rate plus 2 percent per annum), of any capital costs incurred after the Base Operating Year for any equipment, device or other improvement made or acquired which is either (A) a labor-saving measure or to effect other economies in the operation, maintenance or repair of the Center (but only to the extent that the annual benefits anticipated to be realized therefrom are reasonably related to the annual amounts to be amortized), or (B) required by any Requirement. Operating Expenses shall not include (1) Taxes, special assessments and franchise, income or any other taxes imposed upon or measured by the income or profits of Landlord; (2) except for depreciation and amortization specifically included in Operating Expenses as provided above, the costs of all items which should be capitalized in accordance with generally accepted accounting practices; (3) the costs of all services furnished to any other tenant of the Center on a "rent inclusion" basis which are not provided to Tenant on such basis; (4) the costs of all work or services performed for any tenant in the Center (including Tenant) at such tenant's cost and expense; (5) mortgage amortization and interest; (6) leasing commissions; (7) allowances, concessions and other costs of tenant installations and decorations incurred in connection with preparing space for any tenant in the Center, including workletters and concessions;

S-3-1

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(8) fixed rent payable under Superior Leases, if any; (9) wages, salaries and benefits paid to any employees of Landlord and Landlord's Agent, above the level of the immediate supervisors of building managers; (10) legal and accounting fees relating to (i) disputes with tenants, prospective tenants or other occupants of the Center, (ii) disputes with purchasers, prospective purchasers, mortgagees or prospective mortgagees of the Center or any part thereof, or (iii) negotiations of leases, contracts of sale or mortgages; (11) costs which are reimbursed by insurance, warranty or condemnation proceeds, or which are reimbursable by Tenant or other tenants or any other Person other than pursuant to an expense escalation clause; (12) costs in the nature of penalties or fines; (13) the costs of all services, supplies and repairs paid to any Affiliate or subsidiary of Landlord or Landlord's Agent materially in excess of the costs that would be payable in an "arm's length" or unrelated situation; (14) advertising expenses in connection with leasing of the Center; (15) the costs of installing, operating and maintaining a specialty improvement, such as a cafeteria, lodging or private dining facility, or an athletic, luncheon or recreational club, unless Tenant is permitted to make use of any such facility without additional cost or on a subsidized basis consistent with other users; (16) the costs or expenses (including fines, interest, penalties and legal fees) arising out of Landlord's failure to timely pay Operating Expenses or Taxes; and (17) the costs incurred in connection with the removal, encapsulation or other treatment of any Hazardous Materials classified as such and existing in the Premises as of the date hereof and required to be removed, encapsulated or treated under applicable Requirements in effect as of the date hereof.

(g) **<u>Operating Expense Payments</u>**. (i) If the Expense Factor for any Computation Year exceeds the Base Expense Factor, Tenant shall pay to Landlord, as Additional Rent during each Computation Year, an amount ("<u>Tenant's Operating Payment</u>") equal to (A) Tenant's Retail Space Area, ***multiplied by*** (B) the amount by which the Expense Factor for such Computation Year exceeds the Base Expense Factor. For each Computation Year, Landlord shall furnish to Tenant a statement setting forth Landlord's good faith estimate of Tenant's Operating Payment for such Computation Year. Tenant shall pay to Landlord, on the first day of each month during such Computation Year, an amount equal to one-twelfth of Landlord's estimate of Tenant's Operating Payment for such Computation Year. If Landlord does not furnish any such estimate for a Computation Year until after the commencement thereof, then (1) until the first day of the month following the month in which such estimate is furnished to Tenant, Tenant shall pay to Landlord on the first day of each month an amount equal to the monthly sum payable by Tenant to Landlord under this <u>subsection (g)</u> during the last month of the preceding Computation Year, (2) promptly after such estimate is furnished to Tenant or together therewith, Landlord shall give notice to Tenant stating whether the installments of Tenant's Operating Payment previously made for such Computation Year were greater or less than the installments of Tenant's Operating Payment to be made for such Computation Year in accordance with such estimate, and (X) if there shall be a deficiency, Tenant shall pay the amount thereof within 10 Business Days after demand therefor or (Y) if there shall have been an overpayment, Landlord shall credit the amount thereof against subsequent installments of Rent due hereunder, and (3) on the first day of the month following the month in which such estimate is furnished to Tenant, and on the first day of each month thereafter throughout the remainder of such Computation Year, Tenant shall pay to Landlord an amount equal to one-twelfth of Tenant's Operating Payment shown on such estimate.

(ii) Landlord shall furnish to Tenant a Landlord's Statement of Operating Expenses for each Computation Year. If such Landlord's Statement shows that the sums paid by Tenant under <u>subsection (g)</u> exceeded the actual amount of Tenant's Operating Payment for such Computation Year, Landlord shall credit the amount of such excess against subsequent installments of Rent due hereunder. If Landlord's Statement for such Computation Year shows that the sums so paid by Tenant were less than Tenant's Operating Payment for such Computation Year, Tenant shall pay the amount of such deficiency within 10 Business Days after Tenant's receipt of Landlord's Statement.

(h) **<u>Certain Adjustments</u>**. (i) If the Center Operating Area is increased or decreased, from time to time, pursuant to <u>subsection (c)</u>, then from and after the date of such election, Operating Expenses for purposes of this Lease shall be limited to that portion of the Operating Expenses of the Center which is properly allocable, in Landlord's reasonable judgment, to the space included in the Center Operating Area. Such allocation shall be performed by Landlord in good faith in a manner consistent with the methods and principles employed by Landlord in computing Operating Expenses prior to the date of such election.

(ii) If during all or any part of any Computation Year (including the Base Operating Year) Landlord is not furnishing any particular work or service (the cost of which, if performed by Landlord, would constitute an Operating Expense) to a rentable portion of the Center which is not then leased, Operating Expenses for such period shall include an amount equal to the costs and expenses which would reasonably have been incurred for such work or service during such period by Landlord if the Center had been 95% leased and occupied.

(iii) If during all or any part of any Computation Year (including the Base Operating Year) Landlord is not obligated to furnish any particular work or service (the cost of which, if performed by Landlord, would constitute an Operating Expense) to any portion of the Center (other than to space not then leased), then notwithstanding anything to the contrary set forth in <u>subsection (f)</u>, the amount included in Operating Expenses for such period with respect to such work or service shall be equal to the product of (i) the Center Operating Area ***multiplied by*** (ii) the quotient expressed in dollars and cents, of (A) the costs and expenses actually incurred by Landlord during such period to furnish such work or service, ***divided by*** (B) the area of the Center to which Landlord provides such work or service.

S-3-2

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(i) **<u>Non-Waiver</u>**. Landlord's failure to render a Landlord's Statement on a timely basis with respect to any Computation Year shall not prejudice Landlord's right to thereafter render a Landlord's Statement with respect to such Computation Year or any subsequent Computation Year, nor shall the rendering of a Landlord's Statement prejudice Landlord's right to thereafter render a corrected Landlord's Statement for any Computation Year.

(j) **<u>Tenant Disputes</u>**. Each Landlord's Statement sent to Tenant shall be conclusively binding upon Tenant unless Tenant shall (A) within 30 days after such statement is sent, pay to Landlord the amount set forth in such statement, without prejudice to Tenant's right to dispute such statement, and (B) within 60 days after such statement is sent, send a notice to Landlord objecting to such statement and specifying the reasons for Tenant's claim that such statement is incorrect. Tenant covenants and agrees that Tenant will not employ, in connection with any dispute under this Lease, any Person who is to be compensated, in whole or in part, on a contingency fee basis. If the parties are unable to resolve any such dispute within 30 days following the giving of Tenant's notice of objection, either party may refer the issues raised to an independent firm of certified public accountants selected by Landlord and reasonably acceptable to Tenant, and the decision of such accountants shall be conclusively binding upon Landlord and Tenant. In connection therewith, Tenant and such accountants shall execute and deliver to Landlord a confidentiality agreement, in form and substance reasonably satisfactory to Landlord, whereby such parties agree not to disclose to any third party any of the information obtained in connection with such review, or the substance of any admissions or stipulations by any party in connection therewith, or of any resulting reconciliation, compromise or settlement. Tenant shall pay the fees and expenses relating to such procedure, unless such accountants shall determine that Landlord overstated the Expense Factor by more than 5% for such Computation Year, as finally determined, in which case Landlord shall pay such fees and expenses.

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**<u>SCHEDULE 4</u>**

**<u>LANDLORD'S MUSIC HALL PROPERTY</u>**

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| | | | |
|:---|:---|:---|:---|
| **LOCATION** | **ITEM/DESCRIPTION** |  | **QUANTITY** |
|  ALL | CARPETING—INSTALLED |  |  |
|  THEATER | SEATS |  |  |
|  PUBLIC AREAS | FURNITURE |  |  |
|  PUBLIC AREAS | SCULPTURES |  |  |
|  PUBLIC AREAS | DRAPES |  |  |
| AUDIO MONITORS | AUDIO MONITORS | AUDIO MONITORS | AUDIO MONITORS |
|  ELI. BRIDGE | EMILAR MDM 16 MONITORS |  | 4 |
| IN-HOUSE SOUND SYSTEM | IN-HOUSE SOUND SYSTEM | IN-HOUSE SOUND SYSTEM | IN-HOUSE SOUND SYSTEM |
|  A COVE RF | ALTEC MR-42 HOR MANTA RAY |  | 10 |
|  A COVE | TAD TD4001 DRIVER | DRIVER | 10 |
|  A COVE LF | ALTEC 421-SLF WOOFER |  | 12 |
|  A COVE LF | STANAL S17 | LF BOX | 6 |
|  5 FLOOR 50 | RTS WMS300 | SPECIAL | 1 |
|  5 FLOOR 50 | YAMAHA P-2100 | POWER-AMP | 5 |
|  5 FLOOR 50 | YAMAHA P-2200 | POWER-AMP | 3 |
|  5 FLOOR 50 | 355 FDS 360 | CROSSOVER | 2 |
|  5 FLOOR 50 | KLARK ON3003 | 1/3 OCTIVE | 3 |
|  5 FLOOR 50 | DEX 166 | 2CH LIMITER | 1 |
|  5 FLOOR 50 | LOFTTECH TS1RMX GENERATOR |  | 1 |
|  5 FLOOR 50 | RS APM500 | A-POWER METER | 6 |
|  PATCH RM | API 3124M | SUB-MIXER | 1 |
|  PATCH RM | YAMAHA P-2200 | POWER-AMP | 4 |
|  PATCH RM | YAMAHA P-2050 | POWER-AMP | 1 |
|  PATCH RM | YAMAHA P-2050 | POWER-AMP | 1 |
|  PATCH RM | YAMAHA P-2050 | POWER-AMP | 1 |
|  PATCH RM | YAMAHA P-2100 | POWER-AMP | 3 |
| STAGE MANAGER'S CLEAR-COM SYSTEM | STAGE MANAGER'S CLEAR-COM SYSTEM | STAGE MANAGER'S CLEAR-COM SYSTEM | STAGE MANAGER'S CLEAR-COM SYSTEM |
| (Installed in 1979 to replace existing communication system.) | (Installed in 1979 to replace existing communication system.) | (Installed in 1979 to replace existing communication system.) | (Installed in 1979 to replace existing communication system.) |
|  | C-COM P5451 MASTER SUPPLY | MASTER SUPPLY | 1 |
|  PATCH RM | C-COM CS200 | SUPPLY-FL-TOM | 1 |
|  PATCH RM | RTS SPK2CL | RACK MOUNT | 1 |
|  PATCH RM | RTS PS 31 | MASTER SUPPLY | 1 |
|  PATCH RM | CHAOS P48 | SUPPLY | 1 |
|  OP-STAGE | GALAXY HOTSPOT MON SPK |  | 1 |
|  OP-STAGE | RTS-BP300L GHS6000 PACK/HS |  | 1 |
|  STG.MGR | C-COM CC75RX | HEADSET | 1 |
|  STG.MGR | C-COM RS100 | BELT PACK | 1 |
|  STG.MGR | CHAOS 301 | PACK | 1 |
|  STG.MGR | GALAXY HOT SPOT MON SPK |  | 1 |
|  STG.MGR | RTS THS300 | BISCUIT | 1 |
|  STG.MGR | SHURE 515SB-G18 | ANN.MIC | 1 |
|  ERIC | C-COM R5100 | PACK | 1 |
|  ERIC | C-COM CC75RX HEADSET |  | 1 |
|  SHOP/DESK | RTS SPK 300 | BISCUIT | 1 |
|  SHOP | 30A IVIE | SOUN METER | 1 |
|  SHOP | OTARI DP4050-C2 | DUBER | 1 |
|  SHOP | KOSS K6 | HEADPHONES | 3 |
|  SHOP | C-COM HS-6 | HANDSETS | 4 |
|  MARTY SB | CHAOS 301 | BELT PACK | 2 |
|  MARTY SB | C-COM RS100A | BELT PACK | 3 |
|  (UNDER MARQUIE SYSTEM) | BOLAK CM 450-6 SOUND COLUMN |  | 4 |
|  SMT.HALLWAY | BOLAK CM 450-6 SOUND COLUMN 3 |  | 2 |
|  F.L. | CHAOS 4301 | PACKS | 10 |
|  FL CREW SYS | C-COM RS100A | PACK (DESK) | 1 |

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| | | | |
|:---|:---|:---|:---|
| **LOCATION** | **ITEM/DESCRIPTION** |  | **QUANTITY** |
|  FL TOM/PSM | C-COM RS100A | PACK (DESK) | 1 |
|  F.L. TOM/LD | C-COM RS100A | PACK (DESK) | 1 |
|  FL CREW SYS | C-COM HS-6 | HANDSET | 1 |
|  FL TOM/PSM | C-COM HS-6 | HANDSET | 1 |
|  F.L. TOM/LD | C-COM CC75 SIN HEADSET |  | 1 |
|  FL-N.S.C.D. | C-COM RS100A | PACKS | 9 |
|  FL CREW SYS | ASSORTED DOU MUFF HEADSETS |  | 8 |
|  HYDRAULICS | C-COM RS100 | PACK | 2 |
|  HYDRAULICS | C-COM 240SX | HEADSETS | 2 |
|  HYDRAULICS | CHAOS 301 | PACK | 1 |
|  FLYFLOOR | C-COM KB100 | BISCUIT | 1 |
|  FLYFLOOR | C-COM KB111 | BISCUIT | 2 |
|  FLYFLOOR | C-COM HS-6 | HANDSET | 2 |
|  SHOP TESTER | YAMAHA PHI80 SUB MIX | SUB MIX | 1 |
|  SHOP TESTER | YAMAHA 2050 | AMPLIFIER | 1 |
|  PATCH RM. | BROWN PSA2 (FB) | AMP FROM PROJ. | 1 |
| PROJECTION EQUIPMENT | PROJECTION EQUIPMENT | PROJECTION EQUIPMENT | PROJECTION EQUIPMENT |
|  Projection Booth | SIMPLEX X-L 35/70mm PROJECTORS |  | 2 |
|  | SIMPLEX X-L 35mm PROJECTORS |  | 2 |
|  | XENON LAMP HOUSES |  | 5 |
| ELECTRIC & THEATRICAL EQUIPMENT | ELECTRIC & THEATRICAL EQUIPMENT | ELECTRIC & THEATRICAL EQUIPMENT | ELECTRIC & THEATRICAL EQUIPMENT |
|  STAGE & THEATER | 6 x 16 LEXOS |  | 120 |
|  | 6 x 22 LEXOS |  | 93 |
|  | QUARTZ FLOODS 500W |  | 100 |
|  | 1200W HMI SPOTLIGHTS |  | 15 |
|  | (3 FRONTLIGHTS, 4 ON BRIDGES, 3 IN D COVE) |  |  |
|  | 1200W HMI HIGH INTENSITY SPOTLIGHTS |  | 2 |
|  | 1200W HMI SCENIC PROJECTOR (SPECIAL EFFECTS) |  | 1 |
|  | PAR CANS 1000W |  | 100 |
|  | 2K BEAM PROJECTORS |  | 24 |
|  | KLIEGEL SCENE SWITCHBOARD |  |  |
|  | DIMMERS |  |  |
|  | BORDER LIGHTS |  |  |
|  | COVE LIGHTS |  |  |
|  | FOOTLIGHTS |  |  |
|  | STEAM CURTAIN |  |  |
|  | STAGE HYDRAULIC SYSTEM |  |  |
|  | CONTROL BOARD |  |  |
|  | BAND CAR (for orchestra) |  |  |
|  | ELECTRIC MULE (HOIST) |  |  |
|  ORGANS |  |  |  |
|  STAGE RIGHT & LEFT | NEWLY REFURBISHED WURLITZER PIPE ORGAN WITH TWC RESTORED CONSOLES. |  |  |
|  | BRAND NEW SOLID STATE RELAY SYSTEM AND MIDI CAPABLILITIES. |  |  |
| STAGE DROPS, CURTAINS, AND SCREENS | STAGE DROPS, CURTAINS, AND SCREENS | STAGE DROPS, CURTAINS, AND SCREENS | STAGE DROPS, CURTAINS, AND SCREENS |
|  STAGE | GOLD CONTOUR CURTAIN |  | 1 |
|  STAGE | GOLD TEASER |  | 1 |
|  STAGE | (Accompanies house contour curtain) [Illegible] |  | 1 |
|  STAGE | (Japanese cherry blossom tapestry) |  |  |
|  | At RCM by Agreement with NYC |  |  |
|  STAGE | BLACK TRAVELERS |  | 4 |
|  | BLACK BORDERS |  | 4 |
| DOLBY SURROUND CINEMA SOUND SYSTEM | DOLBY SURROUND CINEMA SOUND SYSTEM | DOLBY SURROUND CINEMA SOUND SYSTEM | DOLBY SURROUND CINEMA SOUND SYSTEM |
|  AUDITORIUM | JBL 8333 SURROUND SPEAKERS |  | 52 |
|  | JBL 8340 SURROUND SPEAKERS |  | 46 |
|  | QSC EX 1250 AMPLIFIERS (stage hi-freq) |  | 5 |

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| | | |
|:---|:---|:---|
| **LOCATION** | **ITEM/DESCRIPTION** | **QUANTITY** |
|  | QSC EX 2500 AMPLIFIERS (12 surround, 2 subs, 1 spare) | 15 |
|  | QSC EX 4000 AMPLIFIERS (stage low freq) | 5 |
|  | JBL 4675C-HF HIGH FREQUENCY HORNS/SPEAKERS (INCLUDE 2446H DRIVERS, '2360A HORNS, 2506B BRACKETS) | 18 |
|  | JBL LOW FREQUENCY CABINETS W/DRIVERS 4648A) | 26 |
|  | JBL SUB WOOFER SPEAKERS 4642 | 8 |
|  | JBL 5235 ELECTRONIC CROSSOVERS | 5 |
|  | JBL 33-5333 CROSSOVER CARDS | 5 |
|  | SOUNDOLIER 70' RACKS/18.3' WIDE | 3 |
|  | DOLBY C2200 CINEMA PROCESSOR | 1 |
|  | COMPONENT ENGINEERING SIX CHANNEL BI-AMP MONITOR | 1 |
|  | JBL PAD300-18 DIGITAL SOUND REINFORCED DELAYS | 2 |
|  | DOLBY DIGITAL SOUND PROCESSOR DA10-65-/PR-2 | 1 |
|  | DOLBY DA 3E-10 READER READ | 1 |
|  | DOLBY SRA COMPLETE | 1 |
|  | DOLBY ACCESSORY RACK | 1 |
|  | DOLBY KIT A | 1 |
|  | DOLBY KIT E | 1 |
|  | DOLBY CAT 204 | 5 |
|  | DOLBY MPG35/7C/2 | 2 |
|  | KEILMAR EXCITER SUPPLIES | 3 |
|  | DOLBY CAT 223 | 1 |
| STUDIO FURNITURE AND FIXTURES | STUDIO FURNITURE AND FIXTURES | STUDIO FURNITURE AND FIXTURES |
|  STUDIO APT. | ALL FURNITURE AND FIXTURES IN STUDIO APARTMENT |  |

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**<u>SCHEDULE 5</u>**

**<u>LANDLORD'S STUDIO APARTMENT PROPERTY</u>**

[Schedule 5 consists of eleven photographs of the Landlord's Studio Apartment Property depicting the following aspects of the apartment: (1) dishwasher in butler's pantry; (2) the credenza in dining room; (3) the ice box; (4) the butler's pantry; (5) the piano, two chairs, two lamps and an ottoman; (7) the wall cabinets and two chairs; (8) a round table; (9) two lamps and a table; (10) the refrigerator in the kitchen; (10) two end tables; and (11) a dining room table with thirteen chairs.]

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**<u>SCHEDULE 6</u>**

**<u>GUARANTY</u>**

[See Restated Guaranty of Lease filed as Exhibit 10.11 to this Form 10]

## Exhibit 10.18

**Exhibit 10.18** 

**FIRST AMENDMENT TO LEASE** 

This FIRST AMENDMENT TO LEASE dated as of February 19, 1999 (this "<u>Amendment</u>"), between **RCPI TRUST**, a Delaware business trust having an office c/o Tishman Speyer Properties, L.P., 45 Rockefeller Plaza, New York, New York 10111 ("<u>Landlord</u>"), and **RADIO CITY PRODUCTIONS LLC**, a Delaware limited liability company having an office at 1260 Avenue of the Americas, New York, New York 10020 ("<u>Tenant</u>").

<u>WITNESSETH</u>:

WHEREAS, Landlord and Tenant entered into that certain Lease, dated December 4, 1997 (the "<u>Original Lease</u>"), covering premises consisting of (i) the Music Hall; (ii) the 1270 Space; (iii) the 50 Rock Space; and (iv) the Retail Space, all as more particularly described and defined in the Original Lease; and

WHEREAS, Landlord and Tenant desire to modify the Original Lease to (i) provide for the surrender by Tenant of a portion of the 50 Rock Space and the leasing by Tenant of certain substitute space on the concourse level of the building located at 50 Rockefeller Plaza, (the "<u>Building</u>") and (ii) otherwise modify the terms and conditions of the Original Lease, all as hereinafter set forth (the Original Lease, as modified by this Amendment, the "<u>Lease</u>").

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

1. <u>Capitalized Terms</u>. All capitalized terms used and not otherwise defined in this Amendment shall have the respective meanings ascribed to them in the Original Lease.

2. <u>Lease of Substitute Premises</u>. (a) Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, (i) a portion of the concourse level of the Building, designated as Space 'C' (the "<u>C Premises</u>"), and (ii) a portion of the concourse level of the Building, designated as Space 'E', (the "<u>E Premises</u>"), being more particularly shown on <u>Exhibit A-1</u> attached hereto; (the 'C' Premises and the 'E' Premises collectively, the "<u>Substitute Premises</u>"), for a term commencing on the date of execution and delivery of this Amendment by Landlord and Tenant (the "<u>Effective Date</u>") and ending on the Initial Expiration Date, or such earlier date upon which the term of the Lease may expire or be terminated pursuant to any of the conditions of limitation or other provisions of the Lease or pursuant to law, upon all of the terms and conditions of the Original Lease, as modified by this Amendment.

(b) Landlord shall deliver possession of the Substitute Premises to Tenant on the Effective Date. Landlord shall not be liable for failure to deliver possession of the Substitute Premises to Tenant on any specified date, and such failure shall not impair the validity of this Amendment. The provisions of this Article are intended to constitute "an express provision to the contrary" within the meaning of Section 223-a of the New York Real Property Law or any successor Requirement.

(c) Effective as of the Effective Date, Tenant shall lease the Substitute Premises upon all of the terms and conditions of the Original Lease, except as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The 'C' Premises shall be deemed to consist of 352 rentable square feet and the 'E' Premises shall be deemed to consist of 789 rentable square feet for all purposes of the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Tenant has inspected the Substitute Premises and agrees (x) to accept possession of the Substitute Premises in the "as is" condition existing on the Effective Date, (y) that neither Landlord nor Landlord's agents have made any representations or warranties with respect to the Substitute Premises or the Building except as expressly set forth herein, and (z) Landlord has no obligation to perform any work, supply any materials, incur any expense or make any alterations or improvements to the Substitute Premises or the Building to prepare the same for Tenant's occupancy. Tenant's occupancy of any part of the Substitute Premises shall be conclusive evidence, as against Tenant, that (A) Tenant has accepted possession of the Substitute Premises in its then current condition and (B) the Substitute Premises and the Building are in a good and satisfactory condition as required by this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Except as provided in this Amendment, all references in the Original Lease to the "Premises" and to the "Buildings" shall be deemed to refer to the Substitute Premises and shall exclude the Space 'U' Premises (as hereinafter defined).

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3. <u>Adjoining Spaces</u>. Landlord agrees that Tenant shall retain possession of the portion of the 50 Rock Space now designated as Spaces 'BB' and 'Y', which said spaces shall be combined with the Substitute Premises as of the Effective Date (the 'BB' Premises, the 'Y Premises and the Substitute Premises, shall be hereinafter sometimes collectively referred to as the "<u>L Premises</u>") being more particularly shown on <u>Exhibit A-2</u> attached hereto.

4. <u>Surrender of Space 'U' Premises</u>. On or before the Effective Date, Tenant shall vacate the portion of the 50 Rock Space now designated as Space 'U' (the "<u>Space 'U' Premises</u>), indicated on <u>Exhibit A-3</u> attached hereto, and deliver vacant possession thereof to Landlord, time being of the essence. Tenant shall not be responsible for removing any Fixtures from the Space 'U' Premises, other then safes and vaults. Any Fixtures or personal property of Tenant remaining in the Space 'U' Premises after the Effective Date shall be deemed abandoned by Tenant and Landlord may take possession thereof and dispose of same in any manner Landlord determines without accountability therefor to Tenant. Tenant acknowledges that effective as of the Effective Date, the Lease with respect to the Space Premises only shall have terminated and expired, Tenant shall have abandoned and surrendered any claim of possession to the Space 'U' Premises to Landlord, and Landlord shall be entitled to lease the Space 'U' Premises to any person or entity, or take any other action with respect thereto, free from any claim of Tenant or any person or entity claiming through Tenant. Effective as of the Effective Date, the term "Premises" as used in the Lease shall no longer include the Space 'U' Premises and Tenant shall have no further obligations under the Lease with respect to the Space 'U' Premises (except any obligations which shall have accrued on or before the Effective Date).

(b) Tenant represents and warrants that it has not assigned, pledged or encumbered the Lease or sublet the Space 'U' Premises or done or suffered any other action as a result of which the Lease or the Space 'U' Premises might be subject to any lien or encumbrance. Tenant warrants that the foregoing covenants and representations will be true and correct as of the Effective Date, Tenant has and will have good right to surrender the Space 'U' Premises on or before the Effective Date, and delivery of possession of the Space 'U' Premises will be made to Landlord on or before the Effective Date free and clear of all liens and encumbrances of any kind whatsoever.

5. <u>Brokerage</u>. Each of Landlord and Tenant represents and warrants to the other that it has not dealt with any broker in connection with this Amendment other than Tishman Speyer Properties, L.P. ("<u>Broker</u>") and that, to the best of its knowledge, no other broker negotiated this Amendment or is entitled to any fee or commission in connection herewith. Landlord shall pay Broker any commission which may be due in connection with this Amendment pursuant to a separate agreement. Each of Landlord and Tenant shall indemnify, defend, protect and hold the other party harmless from and against any and all losses, liabilities, damages, claims, judgments, fines, suits, demands, costs, interest and expenses of any kind or nature (including reasonable attorneys' fees and disbursements) incurred in connection with any claim, proceeding or judgment and the defense thereof which the indemnified party may incur by reason of any claim of or liability to any broker, finder or like agent (other than Broker) arising out of any dealings claimed to have occurred between the indemnifying party and the claimant in connection with this Amendment, or the above representation being false. The provisions of this <u>Paragraph 5</u> shall survive the expiration or earlier termination of the term of the Lease.

6. <u>Representations and Warranties</u>. Tenant represents and warrants to Landlord that, as of the date hereof, (a) the Original Lease is in full force and effect and has not been modified except pursuant to this Amendment; (b) to the best of Tenant's knowledge, there are no defaults existing under the Lease; (c) to the best of Tenant's knowledge there exist no valid abatements, causes of action, counterclaims, disputes, defenses, offsets, credits, deductions, or claims against the enforcement of any of the terms and conditions of the Lease; and (d) this Amendment has been duly authorized, executed and delivered by Tenant and constitutes the legal, valid and binding obligation of Tenant.

7. <u>Miscellaneous</u>. (a) Except as set forth herein, nothing contained in this Amendment shall be deemed to amend or modify in any respect the terms of the Original Lease and such terms shall remain in full force and effect as modified hereby. If there is any inconsistency between the terms of this Amendment and the terms of the Original Lease, the terms of this Amendment shall be controlling and prevail.

(b) This Amendment contains the entire agreement of the parties with respect to its subject matter and all prior negotiations, discussions, representations, agreements and understandings heretofore had among the parties with respect thereto are merged herein.

(c) This Amendment may be executed in duplicate counterparts, each of which shall be deemed an original and all of which, when taken together, shall constitute one and the same instrument.

(d) This Amendment shall not be binding upon Landlord or Tenant unless and until Landlord shall have delivered a fully executed counterpart of this Amendment to Tenant.

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(e) This Amendment shall be binding upon and inure to the benefit of Landlord and Tenant and their successors and permitted assigns.

(f) This Amendment shall be governed by the laws of the State of New York without giving effect to conflict of laws principles thereof.

(g) The captions, headings, and titles in this Amendment are solely for convenience of reference and shall not affect its interpretation.

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IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment as of the day and year first above written.

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| | | |
|:---|:---|:---|
| LANDLORD: | LANDLORD: | LANDLORD: |
| **RCPI TRUST** | **RCPI TRUST** | **RCPI TRUST** |
| By: | Tishman Speyer Properties, L.P., its Agent | Tishman Speyer Properties, L.P., its Agent |
| By: | /s/ Geoffrey P. Wharton | /s/ Geoffrey P. Wharton |
|  | Name: | Geoffrey P. Wharton |
|  | Title: | Vice President |
| TENANT: | TENANT: | TENANT: |
| **RADIO CITY PRODUCTIONS LLC** | **RADIO CITY PRODUCTIONS LLC** | **RADIO CITY PRODUCTIONS LLC** |
| By: | /s/ Robert Russo | /s/ Robert Russo |
|  | Name: | Robert Russo |
|  | Title: | Executive Vice President |

---

------

<u>EXHIBIT A-1</u> 

**<u>Substitute Premises</u>**

The floor plan which follows is intended solely to identify the general location of Space 'C' and Space 'E' located on the Concourse Level of the Building, and should not be used for any other purpose. All areas, dimensions and locations are approximate, and any physical conditions indicated may not exist as shown.

**[Graphic of Rockefeller Plaza Concourse Level Space C and Space E Floor Plan]** 

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<u>EXHIBIT A-2</u> 

**<u>Substitute Premises</u>**

The floor plan which follows is intended solely to identify the general location of Space 'L' located on the Concourse Level of the Building, and should not be used for any other purpose. All areas, dimensions and locations are approximate, and any physical conditions indicated may not exist as shown.

**[Graphic of Rockefeller Plaza Concourse Level Space L Floor Plan]** 

------

<u>EXHIBIT A-3</u> 

**<u>Substitute Premises</u>**

The floor plan which follows is intended solely to identify the general location of Space 'U' located on the Concourse Level of the Building, and should not be used for any other purpose. All areas, dimensions and locations are approximate, and any physical conditions indicated may not exist as shown.

**[Graphic of Rockefeller Plaza Concourse Level Space U Floor Plan]**

## Exhibit 10.19

**Exhibit 10.19** 

**CERTAIN CONFIDENTIAL INFORMATION, IDENTIFIED BY BRACKETED ASTERISKS "[\*\*\*\*\*]", HAS BEEN OMITTED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

**SECOND AMENDMENT TO LEASE** 

This SECOND AMENDMENT TO LEASE dated as of November 6, 2002 (this "<u>Amendment</u>"), between **RCPI LANDMARK PROPERTIES, L.L.C.**, a Delaware limited liability company having an office c/o Tishman Speyer Properties, L.P., 45 Rockefeller Plaza, New York, New York 10111 ("<u>Landlord</u>"), and **RADIO CITY PRODUCTIONS LLC**, a Delaware limited liability company having an office at 1260 Avenue of the Americas, New York, New York 10020 ("<u>Tenant</u>").

<u>WITNESSETH</u>:

WHEREAS, RCPI Trust, predecessor-in-interest to Landlord, and Tenant entered into that certain Lease dated December 4, 1997 (the "<u>1997 Lease</u>"), covering premises consisting of (i) the Music Hall; (ii) the 1270 Space; (iii) the 50 Rock Space; and (iv) the Retail Space, all as more particularly described and defined in the Original Lease; and

WHEREAS, pursuant to that certain First Amendment to Lease dated as of February 19, 1999 (the "<u>First Amendment</u>"), Tenant surrendered a portion of the 50 Rock Space designated as Space 'U', and Landlord leased to Tenant certain Substitute Premises, and certain additional premises, which are collectively referred to as the 'L' Premises (the 1997 Lease, as amended by the First Amendment, is herein referred to as the "<u>Original Lease</u>"); and

WHEREAS, Landlord and Tenant desire to modify the Original Lease to (i) provide for the leasing of certain additional premises located in the submezzanine of the building known as 50 Rockefeller Plaza (the "<u>Building</u>"), and (ii) otherwise modify the terms and conditions of the Original Lease, all as hereinafter set forth (the Original Lease, as modified by this Amendment, is herein referred to as the "<u>Lease</u>").

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

1. <u>Capitalized Terms</u>. All capitalized terms used and not otherwise defined in this Amendment shall have the respective meanings ascribed to them in the Original Lease.

2. <u>Lease of Additional Premises</u>. (a) Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, portions of the submezzanine level of the Building, designated as Space 'O', Space 'Q', Space 'R', Space 'U', Space 'W', Space 'X', Space 'Z', Space 'EE' and Space 'K', all being more particularly shown on <u>Exhibit A</u> attached hereto (the "<u>Additional Premises</u>"), for a term commencing on the date (the "<u>Effective Date</u>") that is the later to occur of (x) the date of mutual execution and delivery of this Amendment, and (y) the date Landlord delivers possession of all of the Additional Premises to Tenant and ending on the Initial Expiration Date, or such earlier date upon which the term of the Lease may expire or be terminated pursuant to any of the conditions of limitation or other provisions of the Lease or pursuant to law, upon all of the terms and conditions of the Original Lease, as modified by this Amendment. Notwithstanding anything to the contrary contained herein, and provided that Tenant obtains the prior consent of Landlord, Tenant shall be permitted to have reasonable access to the Additional Premises prior to the Effective Date in order to inspect the same (the "<u>Early Access Period</u>"). All of the terms and provisions of the Lease shall apply to the Additional Premises during the Early Access Period, except for the obligation to pay Fixed Rent and Additional Rent in respect of the Additional Premises.

------

(b) Landlord shall deliver possession of the Additional Premises to Tenant on the Effective Date. Landlord shall not be liable for failure to deliver possession of the Additional Premises or any portion thereof to Tenant on any specified date, and such failure shall not impair the validity of this Amendment. The provisions of this Article are intended to constitute "an express provision to the contrary" within the meaning of Section 223-a of the New York Real Property Law or any successor Requirement, provided that if Landlord fails to deliver vacant possession of all of the Additional Premises in accordance with the terms of this Amendment prior to May 1, 2003 (the "<u>Outside Delivery Date</u>"), Tenant shall have the right within 10 days after the Outside Delivery Date, as its sole and exclusive remedy therefor, to cancel this Amendment by giving notice of cancellation to Landlord. If Tenant timely delivers the aforesaid cancellation notice, this Amendment shall terminate 15 days after the date of such notice, unless Landlord delivers vacant possession of the Additional Premises within such 15-day period, in which case Tenant's cancellation notice shall be void and this Amendment shall continue in full force and effect. Failure by Tenant to exercise such right to cancel this Amendment within the aforesaid 10-day period shall constitute a waiver of such right; time being of the essence with respect thereto. Notwithstanding anything to the contrary contained herein, Landlord shall exercise reasonable diligence (at no cost to Landlord), including exercising its right of termination pursuant to any leases or license agreements affecting the Additional Premises promptly after the date hereof, to cause the existing tenants and/or occupants of the Additional Premises to vacate the same in a timely manner. Landlord shall give Tenant at least ten (10) days' advance written notice of the Effective Date.

(c) Effective as of the Effective Date, Tenant shall lease the Additional Premises upon all of the terms and conditions of the Original Lease, except as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Additional Premises shall be deemed to consist of 8,216 rentable square feet for all purposes of the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Tenant shall pay Fixed Rent for the Additional Premises at a rate equal to [\*\*\*\*\*] per square foot per annum for the period beginning on the Effective Date and ending on the last day of the month which is 12 months after the Effective Date. Thereafter, with respect to the Additional Premises only, Fixed Rent for each subsequent year shall increase by [\*\*\*\*\*] of the Fixed Rent in effect during the immediately preceding year. Tenant shall be permitted to include the Fixed Rent with respect to the Additional Premises as part of Fixed Rent under <u>clause (a) (ii) of Schedule 2</u> of the Original Lease when calculating Percentage Rent pursuant to the Original Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Tenant shall pay additional rent on account of Taxes with respect to the Additional Premises pursuant to <u>Article 8</u> of the Original Lease, except that, with respect to the Additional Premises only, (a) "<u>Base Tax Year</u>" shall mean the Tax Year commencing on July 1, 2002 and ending on June 30, 2003 if the Effective Date occurs on or before December 31, 2002, or the Tax Year commencing on January 1, 2003 and ending on December 31, 2003 (<u>i.e.</u>, the second half of the Tax Year commencing on July 1, 2002 and ending on June 30, 2003 and the first half of the Tax Year commencing on July 1, 2003 and ending on June 30, 2004) if the Effective Date occurs on or after January 1, 2003, and (b) "<u>Tenant's Area</u>" shall mean 8,216 rentable square feet.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Tenant has inspected the Additional Premises and agrees (x) to accept possession of the Additional Premises in the "as is" condition existing on the Effective Date, (y) that neither Landlord nor Landlord's agents have made any representations or warranties with respect to the Additional Premises or the Building except as expressly set forth herein, and (z) Landlord has no obligation to perform any work, supply any materials, incur any expense or make any alterations or improvements to the Additional Premises or the Building to prepare the same for Tenant's occupancy (provided, however, that nothing herein shall be deemed to relieve Landlord of Landlord's obligations pursuant to <u>Section 7.1 (a)</u> of the Original Lease). Tenant's occupancy of any part of the Additional Premises shall be conclusive evidence, as against Tenant, that (A) Tenant has accepted possession of the Additional Premises in its then current condition and (B) the Additional Premises and the Building are in satisfactory condition as required by this Amendment. Notwithstanding the foregoing, Landlord and Tenant acknowledge that Tenant has not been able to inspect portions of the Additional Premises which are currently occupied by other tenants or occupants, and with respect to those portions of the Additional Premises, Landlord agrees to deliver same to Tenant in broom clean condition, free of other tenants or occupants, and in comparable condition to the portions of the Additional Premises which Tenant has had the opportunity to inspect. In addition, Landlord agrees to use reasonable efforts to provide Tenant with an opportunity to inspect the Additional Premises which are currently occupied, but Landlord's inability to do so shall not affect Tenant's obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Except as provided in <u>Section 3 (g)</u> of this Amendment, all references in the Original Lease to the "Ancillary Space" shall be deemed to include the Additional Premises.

3. <u>Modifications</u>. As of the date hereof, the Lease shall be further modified and amended as follows:

(a) Landlord and Tenant agree that Tenant intends to combine the Additional Premises with a portion of the 50 Rock Space known as Space 'G' and located on the submezzanine of the Building (Space G and the Additional Premises are hereinafter referred to as the "<u>Storage Premises</u>"). The Storage Premises shall be deemed to consist of 16,877 rentable square feet.

------

(b) Notwithstanding anything contained in the Lease to the contrary, Landlord and Tenant agree and acknowledge that Tenant shall have the right to use the Storage Space for uses other than "storage" as defined in the Original Lease, provided Tenant shall (i) in no event use the Storage Space for any Prohibited Use (provided, however, that Tenant shall be permitted to store customary prepackaged small food items such as popcorn, candy, nuts, confections and other such convenience food and beverage items (which may include alcoholic beverages provided and so long as Tenant complies with all applicable Requirements) in the Storage Premises), (ii) obtain all necessary permits and approvals required in connection with the use of the Storage Premises, including, but not limited to, any amendment to the Certificate of Occupancy, (iii) be responsible for performing any Alterations required in order to cause the Storage Premises to comply with all applicable Requirements related to the use thereof, and (iv) indemnify and hold Landlord harmless from and against any and all claims, losses, costs and expenses incurred by Landlord as a result of such uses.

(c) Landlord shall make 250 amps, 120/208-volts-3-phase of electricity available for the operation of Tenant's electrical systems and equipment in the Storage Premises (the "<u>Permitted Capacity</u>") via a connection to a switchboard in an electric closet designated by Landlord. Tenant will be responsible, at Tenant's cost and expense, for routing the power from such switch board to the Storage Premises. Tenant shall pay to Landlord, on demand from time to time but not more frequently than monthly, for its consumption of electricity at the Storage Premises, a sum equal to [\*\*\*\*\*] of the product obtained by multiplying (i) the Cost Per Kilowatt Hour, by (ii) the actual number of kilowatt hours of electric current consumed in the Storage Premises by Tenant in such billing period, and otherwise in accordance with the terms and provisions of <u>Article 17</u> of the Original Lease. Landlord shall install a meter, at Tenant's expense, to measure Tenant's consumption of electricity in the Storage Premises, which meter shall be installed and maintained by Landlord at Tenant's expense. Landlord shall install the aforesaid meter within thirty (30) days after Tenant's request that Landlord install the same. Bills for such amounts shall be rendered to Tenant at such times as Landlord may elect (but not more frequently than monthly). For any period during which such meter is not installed or is not operational in the Storage Premises, the monthly Fixed Rent in respect of the Additional Premises shall be increased by an amount equal to the product of (A) [\*\*\*\*\*], subject to adjustment for any increases in electric rates or taxes, and (B) the number of rentable square feet in the Additional Premises.

(d) Landlord shall not unreasonably withhold or delay its consent to a request by Tenant to install a supplemental HVAC system to serve the Storage Premises. Such installation shall be considered an Alteration and shall be performed in accordance with the provisions of Article 5 of the Lease. Tenant, at Tenant's sole cost and expense, shall maintain in full force and effect for the Term a service contract or contracts for the periodic maintenance of Tenant's supplemental HVAC System, with a contractor or contractors satisfactory to Landlord, and furnish a copy of said contract(s) and all extensions thereof to Landlord within 30 days after demand. Notwithstanding the foregoing, Landlord agrees that Tenant may use Tenant's in-house approved union labor to maintain and service the supplemental HVAC System.

(e) Landlord shall provide chilled water in connection with Tenant's independent supplemental air-conditioning units located in the Storage Premises, which shall not exceed 20 tons. Notwithstanding the foregoing, Tenant shall have the one-time right at any time within two (2) years after the Effective Date to irrevocably reduce the number of tons of chilled water to which Tenant is entitled pursuant to this Section by giving notice (the "<u>Tenant Notice</u>") of such reduction to Landlord within the aforesaid two (2) year period, whereupon the number of tons of chilled water to which Tenant shall be entitled pursuant to the first sentence of this Section shall be reduced as of the date Tenant shall provide the Tenant Notice to the lower number of tons specified in the Tenant Notice. Tenant shall have no liability to pay the annual charge for chilled water, and Landlord shall have no obligation to provide any chilled water to Tenant hereunder, until Tenant provides or is deemed to have provided (as provided below) the Tenant Notice, after which Tenant shall be liable for the number of tons of chilled water referred to in the Tenant Notice (or deemed to have been selected by Tenant). Tenant shall pay Landlord an annual charge for such chilled water at Landlord's then established rate therefor, which charge shall be payable annually in advance in a lump sum initially for the remainder of the calendar year of the Lease in which Tenant delivers (or is deemed to have delivered) the Tenant Notice to Landlord, at the same time Tenant makes its payment of Fixed Rent with respect to the Storage Premises then coming due hereunder, and thereafter for each calendar year at the same time that Tenant makes its first payment of Fixed Rent in such calendar year. In the event Tenant fails to deliver to Landlord the Tenant Notice by the date which is two (2) years from the Effective Date, Tenant shall be deemed to have elected to use 20 tons of chilled water. As of the date hereof, Landlord's charge for chilled water is [\*\*\*\*\*] per ton per year. In addition to the foregoing charges there shall be a one-time fee of [\*\*\*\*\*] per ton of unit capacity for chilled water, payable at the same time Tenant makes its first payment of the chilled water charge provided herein.

(f) Notwithstanding anything contained in the Original Lease to the contrary, Tenant shall have no right to assign the Lease with respect to the Storage Premises, or to sublease all or any portion of the Storage Premises except in connection with an assignment of the entire Lease, or a sublease of the Original Premises as permitted under Article 16 of the Original Lease.

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(g) Except as expressly provided herein and in <u>Section 7.1(a)</u> and <u>Section 12.1 (a), (c), (f), (g) and (h)</u> of the Original Lease, Landlord shall not be obligated to provide any services to the Storage Premises.

(h) Notwithstanding anything to the contrary contained in the Original Lease, including, without limitation, <u>Section 5.3</u> thereof, Tenant shall not be required to restore any demising walls currently located in the Storage Premises at the expiration or sooner termination of the term of the Lease. Nothing herein shall be deemed to waive Tenant's obligation pursuant to <u>Section 5.3</u> of the Original Lease to remove any Specialty Alterations (defined for purposes of this Amendment as Alterations which are not standard office installations such as kitchens, executive bathrooms, raised computer floors, computer room installations, supplemental HVAC equipment, safe deposit boxes, vaults, libraries or file rooms requiring reinforcement of floors, internal staircases, slab penetrations, conveyors, dumbwaiters, and other Alterations of a similar character) and Tenant's Property in the Storage Premises at the expiration or sooner termination of the term of the Lease.

4. <u>Brokerage</u>. Each of Landlord and Tenant represents and warrants to the other that it has not dealt with any broker in connection with this Amendment other than Tishman Speyer Properties, L.P. ("<u>Broker</u>") and that, to the best of its knowledge, no other broker negotiated this Amendment or is entitled to any fee or commission in connection herewith. Landlord shall pay Broker any commission which may be due in connection with this Amendment pursuant to a separate agreement. Each of Landlord and Tenant shall indemnify, defend, protect and hold the other party harmless from and against any and all losses, liabilities, damages, claims, judgments, fines, suits, demands, costs, interest and expenses of any kind or nature (including reasonable attorneys' fees and disbursements) incurred in connection with any claim, proceeding or judgment and the defense thereof which the indemnified party may incur by reason of any claim of or liability to any broker, finder or like agent (other than Broker) arising out of any dealings claimed to have occurred between the indemnifying party and the claimant in connection with this Amendment, or the above representation being false. The provisions of this <u>Paragraph 4</u> shall survive the expiration or earlier termination of the term of the Lease.

5. <u>Representations and Warranties</u>. (i) Tenant represents and warrants to Landlord that, as of the date hereof, (a) the Original Lease is in full force and effect and has not been modified except pursuant to this Amendment; (b) to the best of Tenant's knowledge, there are no defaults existing under the Original Lease; (c) to the best of Tenant's knowledge there exist no valid abatements, causes of action, counterclaims, disputes, defenses, offsets, credits, deductions, or claims against the enforcement of any of the terms and conditions of the Original Lease; and (d) this Amendment has been duly authorized, executed and delivered by Tenant and constitutes the legal, valid and binding obligation of Tenant.

(ii) Landlord represents and warrants to Tenant that, as of the date hereof, (a) the Original Lease is in full force and effect and has not been modified except pursuant to this Amendment; (b) to the best of Landlord's knowledge, there are no defaults existing under the Original Lease; (c) to the best of Landlord's knowledge there exist no valid causes of action, disputes or claims against the enforcement of any of the terms and conditions of the Original Lease and (d) this Amendment has been duly authorized, executed and delivered by Landlord and constitutes the legal, valid and binding obligation of Landlord.

6. <u>Miscellaneous</u>. (a) Except as set forth herein, nothing contained in this Amendment shall be deemed to amend or modify in any respect the terms of the Original Lease and such terms shall remain in full force and effect as modified hereby. If there is any inconsistency between the terms of this Amendment and the terms of the Original Lease, the terms of this Amendment with respect to the Storage Premises shall be controlling and prevail.

(b) This Amendment contains the entire agreement of the parties with respect to its subject matter and all prior negotiations, discussions, representations, agreements and understandings heretofore had among the parties with respect thereto are merged herein.

(c) This Amendment may be executed in duplicate counterparts, each of which shall be deemed an original and all of which, when taken together, shall constitute one and the same instrument.

(d) This Amendment shall not be binding upon Landlord or Tenant unless and until each party shall have received a fully executed counterpart of this Amendment.

(e) This Amendment shall be binding upon and inure to the benefit of Landlord and Tenant and their successors and permitted assigns.

(f) This Amendment shall be governed by the laws of the State of New York without giving effect to conflict of laws principles thereof.

(g) The captions, headings, and titles in this Amendment are solely for convenience of reference and shall not affect its interpretation.

(h) Within 30 days from the Effective Date, Landlord shall obtain an amendment to the existing Non-Disturbance and Attornment Agreement from the existing Mortgagee covering the Additional Premises.

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IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment as of the day and year first above written.

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| | | |
|:---|:---|:---|
| LANDLORD: | LANDLORD: | LANDLORD: |
| **RCPI LANDMARK PROPERTIES, L.L.C.** | **RCPI LANDMARK PROPERTIES, L.L.C.** | **RCPI LANDMARK PROPERTIES, L.L.C.** |
| By: | Tishman Speyer Properties, L.P., its Agent | Tishman Speyer Properties, L.P., its Agent |
| By: | /s/ Robert J. Speyer | /s/ Robert J. Speyer |
|  | Name: | Robert J. Speyer |
|  | Title: | Senior Managing Director |

---

---

| | | |
|:---|:---|:---|
| TENANT: | TENANT: | TENANT: |
| **RADIO CITY PRODUCTIONS LLC** | **RADIO CITY PRODUCTIONS LLC** | **RADIO CITY PRODUCTIONS LLC** |
| By: | /s/ Robert Russo | /s/ Robert Russo |
|  | Name: | Robert Russo |
|  | Title: | Executive Vice President |

---

The undersigned acknowledges the above and ratifies and confirms all of its obligations under that certain Guaranty of Lease dated as of December 4, 1997 (the "<u>Guaranty</u>") and agrees that the covenants referred to in the Guaranty shall include the obligations of Tenant under the Original Lease as amended above.

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| | | |
|:---|:---|:---|
| GUARANTOR: | GUARANTOR: | GUARANTOR: |
| **MADISON SQUARE GARDEN, L.P.** | **MADISON SQUARE GARDEN, L.P.** | **MADISON SQUARE GARDEN, L.P.** |
| A Delaware limited partnership | A Delaware limited partnership | A Delaware limited partnership |
| By: | /s/ Robert Russo | /s/ Robert Russo |
|  | Name: | Robert Russo |
|  | Title: | President, Facilities Group |

---

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<u>EXHIBIT A</u> 

**<u>Additional Premises</u>**

The floor plan which follows is intended solely to identify the general location of the Additional Premises and should not be used for any other purpose. All areas, dimensions and locations are approximate, and any physical conditions indicated may not exist as shown.

[Graphic of Rockefeller Plaza

Floor SH Floor Plan]

## Exhibit 10.20

**Exhibit 10.20** 

**CERTAIN CONFIDENTIAL INFORMATION, IDENTIFIED BY BRACKETED ASTERISKS "[\*\*\*\*\*]", HAS BEEN OMITTED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

**THIRD AMENDMENT TO LEASE** 

This THIRD AMENDMENT TO LEASE dated as of August 14, 2008 (this "<u>Amendment</u>") between **RCPI LANDMARK PROPERTIES, L.L.C.**, a Delaware limited liability company having an address c/o Tishman Speyer, 45 Rockefeller Plaza, New York, New York 10111 ("<u>Landlord</u>"), and **RADIO CITY PRODUCTIONS LLC** a Delaware limited liability company having an office at 1260 Avenue of the Americas, New York, New York 10020 ("<u>Tenant</u>").

<u>WITNESSETH</u> 

WHEREAS, RCPI Trust, predecessor-in-interest to Landlord, and Tenant entered into that certain Lease dated as of December 4, 1997, as modified by First Amendment to Lease dated as of February 19, 1999 and Second Amendment to Lease dated as of October 6, 2002 (as so amended, the "<u>Existing Lease</u>"), covering premises described and defined in the Existing Lease; and

WHEREAS, Landlord and Tenant desire to modify the Existing Lease to reference the modification of the Guaranty referred to therein;

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

1. <u>Capitalized Terms</u>. All capitalized terms used and not otherwise defined in this Amendment shall have the respective meanings ascribed to them in the Original Lease.

2. <u>Modifications</u>. As of the date hereof;

(a) each reference in the Lease to the Guaranty shall mean the Restated Guaranty of Lease attached hereto as <u>Exhibit A</u>. Landlord consents to the restatement of the Guaranty by such Restated Guaranty of Lease.

(b) <u>Section 19.1(l)</u> of the Existing Lease is restated to read as follows: "(l) if the Guarantor (i) fails to maintain a net worth of at least [\*\*\*\*\*] and (ii) fails to deliver to Landlord the Letter of Credit (as defined in the Guaranty) or cash in the amount and within the time period set forth in the Guaranty".

3. <u>Brokerage</u>. Each of Landlord and Tenant represents and warrants to the other that it has not dealt with any broker in connection with this Amendment other than Tishman Speyer Properties, L.P. ("<u>Broker</u>") and that, to the best of its knowledge, no other broker negotiated this Amendment or is entitled to any fee or commission in connection herewith. Landlord shall pay Broker any commission which may be due in connection with this Amendment pursuant to a separate agreement. Each of Landlord and Tenant shall indemnify, defend, protect and hold the other party harmless from and against any and all losses, liabilities, damages, claims, judgments, fines, suits, demands, costs, interest and expenses of any kind or nature (including reasonable attorneys' fees and disbursements) incurred in connection with any claim, proceeding or judgment and the defense thereof which the indemnified party may incur by reason of any claim of or liability to any broker, finder or like agent (other than Broker) arising out of any dealings claimed to have occurred between the indemnifying party and the claimant in connection with this Amendment, or the above representation being false. The provisions of this <u>Section 3</u> shall survive the expiration or earlier termination of the term of the Existing Lease, as amended hereby.

4. <u>Representations and Warranties</u>. (i) Tenant represents and warrants to Landlord that, as of the date hereof, (a) the Existing Lease is in full force and effect and has not been modified except pursuant to this Amendment; (b) to the best of Tenant's knowledge, there are no defaults existing under the Existing Lease; (c) to the best of Tenant's knowledge there exist no valid abatements, causes of action, counterclaims, disputes, defenses, offsets, credits, deductions, or claims against the enforcement of any of the terms and conditions of the Existing Lease; and (d) this Amendment has been duly authorized, executed and delivered by Tenant and constitutes the legal, valid and binding obligation of Tenant.

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(ii) Landlord represents and warrants to Tenant that, as of the date hereof, (a) the Existing Lease is in full force and effect and has not been modified except pursuant to this Amendment; (b) to the best of Landlord's knowledge, there are no defaults existing under the Existing Lease; (c) to the best of Landlord's knowledge, there exist no valid causes of action, disputes or claims against the enforcement of any of the terms and conditions of the Existing Lease and (d) this Amendment has been duly authorized, executed and delivered by Landlord and constitutes the legal, valid and binding obligation of Landlord.

5. <u>Miscellaneous</u>. (a) Except as set forth herein, nothing contained in this Amendment shall be deemed to amend or modify in any respect the terms of the Existing Lease and such terms shall remain in full force and effect as modified hereby. If there is any inconsistency between the terms of this Amendment and the terms of the Existing Lease, the terms of this Amendment shall be controlling and prevail.

(b) This Amendment contains the entire agreement of the parties with respect to its subject matter and all prior negotiations, discussions, representations, agreements and understandings heretofore had among the parties with respect thereto are merged herein.

(c) This Amendment may be executed in duplicate counterparts, each of which shall be deemed an original and all of which, when taken together, shall constitute one and the same instrument.

(d) This Amendment shall not be binding upon Landlord or Tenant unless and until each party shall have received a fully executed counterpart of this Amendment.

(e) This Amendment shall be binding upon and inure to the benefit of Landlord and Tenant and their successors and permitted assigns.

(f) This Amendment shall be governed by the laws of the State of New York without giving effect to conflict of laws principles thereof.

(g) The captions, headings, and titles in this Amendment are solely for convenience of reference and shall not affect its interpretation.

(h) The liability of Landlord for Landlord's obligations under this Amendment shall be limited to Landlord's interest in the Building and Tenant shall not look to any other property or assets of Landlord or the property or assets of any direct or indirect partner, member, manager, shareholder, director, officer, principal, employee or agent of Landlord (collectively, the "<u>Parties</u>") in seeking either to enforce Landlord's obligations under this Amendment or to satisfy a judgment for Landlord's failure to perform such obligations; and none of the Parties shall be personally liable for the performance of Landlord's obligations under this Amendment.

------

IN WITNESS WHEREOF, Landlord and Tenant have executed this Third Amendment to Lease as of the day and year first above written.

---

| | | |
|:---|:---|:---|
| LANDLORD | LANDLORD | LANDLORD |
| **RCPI LANDMARK PROPERTIES, L.L.C.** | **RCPI LANDMARK PROPERTIES, L.L.C.** | **RCPI LANDMARK PROPERTIES, L.L.C.** |
| By: | /s/ Michael B. Benner | /s/ Michael B. Benner |
|  | Name: | Michael B. Benner |
|  | Title: | Vice President and Secretary |
| TENANT | TENANT | TENANT |
| **RADIO CITY PRODUCTIONS LLC** | **RADIO CITY PRODUCTIONS LLC** | **RADIO CITY PRODUCTIONS LLC** |
| By | /s/ Robert Pollichino | /s/ Robert Pollichino |
|  | Name: | Robert Pollichino |
|  | Title: | Executive Vice President |

---

The undersigned acknowledges the foregoing Amendment and ratifies and confirms all of its obligations under that certain Restated Guaranty of Lease dated as of August , 2008 (the "<u>Guaranty</u>") and agrees that the covenants referred to in the Guaranty shall include the obligations of Tenant under the Existing Lease as amended by the foregoing Amendment.

---

| | | |
|:---|:---|:---|
| GUARANTOR: | GUARANTOR: | GUARANTOR: |
| **MADISON SQUARE GARDEN, L.P.** | **MADISON SQUARE GARDEN, L.P.** | **MADISON SQUARE GARDEN, L.P.** |
| A Delaware limited partnership | A Delaware limited partnership | A Delaware limited partnership |
| By | /s/ Lucinda Treat | /s/ Lucinda Treat |
|  | Name: | Lucinda Treat |
|  | Title: | Executive Vice President |

---

## Exhibit 10.21

**Exhibit 10.21** 

**CERTAIN CONFIDENTIAL INFORMATION, IDENTIFIED BY BRACKETED ASTERISKS "[\*\*\*\*\*]", HAS BEEN OMITTED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

**FOURTH AMENDMENT TO LEASE** 

This FOURTH AMENDMENT TO LEASE dated as of January 24, 2011 (this "<u>Amendment</u>") between **RCPI LANDMARK PROPERTIES, L.L.C.**, a Delaware limited liability company having an address c/o Tishman Speyer, 45 Rockefeller Plaza, New York, New York 10111 ("<u>Landlord</u>"), and **RADIO CITY PRODUCTIONS LLC** a Delaware limited liability company having an office at 1260 Avenue of the Americas, New York, New York 10020 ("<u>Tenant</u>").

<u>W</u> <u>I</u> <u>T</u> <u>N</u> <u>E</u> <u>S</u> <u>S</u> <u>E</u> <u>T</u> <u>H</u>

WHEREAS, RCPI Trust, predecessor-in-interest to Landlord, and Tenant entered into that certain Lease dated as of December 4, 1997, as modified by First Amendment to Lease dated as of February 19, 1999, Second Amendment to Lease dated as of October 6, 2002, Letter Agreement dated February 9, 2007 and Third Amendment to Lease dated as of August 14, 2008 (as so amended, the "<u>Existing Lease</u>"), covering premises described and defined in the Existing Lease; and

WHEREAS, Landlord and Tenant desire to modify the Existing Lease to change the Computation Year for the purpose of determining the extent to which, if any, Tenant is obligated to pay Percentage Rent to Landlord;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Capitalized Terms</u>. All capitalized terms used and not otherwise defined in this Amendment shall have the respective meanings ascribed to them in the Original Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Effective Date</u>. This Amendment shall be effective upon the adoption by the board of directors of Madison Square Garden, Inc. of a resolution pursuant to which the fiscal year of Madison Square Garden, Inc. is changed from December 31 to June 30, effective June 30, 2011." Tenant shall provide prompt written notice to Landlord upon the adoption of such resolution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Modifications</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Schedule 2, Paragraph (a)</u> of the Existing Lease shall be deleted and replaced with the following:

"**<u>Percentage Rent.</u>** Effective July 1, 2011, Tenant shall pay to Landlord as Rent for each year commencing on July 1 and ending on June 30 (or portion thereof) during the Term ("Computation Year") a sum (<u>Percentage Rent</u>") equal to the amount if any, by which (i) Tenant's Gross Revenues (as defined in <u>Section (d)(i)</u>) for any Computation Year **multiplied by [\*\*\*\*\*] (%)** the "<u>Percentage Rent Rate"</u>) exceeds (ii) the Fixed Rent for the Premises payable for such Computation Year. For the purposes of computing the amount of Percentage Rent due, each Computation Year shall be considered as an independent accounting period and no charge or credit may be taken in any subsequent Computation Year on account of any Gross Revenues in any prior Computation Year. For the period January 1, 2011 through June 30, 2011, Tenant shall pay to Landlord as Percentage Rent a sum equal to the amount if any, by which (i) Tenant's Gross Revenues (as defined in <u>Section (d)(i)</u>) for such six month period **multiplied by** the "<u>Percentage Rent Rate"</u> exceeds (ii) the Fixed Rent for the Premises payable for such six month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The following subparagraph (iii) shall be added to Schedule 2, Paragraph (b):

"(iii) No later than 90 days after the close of calendar year 2011, Tenant shall deliver to Landlord, a true, correct and complete statement of Gross Revenues for calendar year 2011 in the same form as that required for Annual Statements, and such statement shall be certified by a senior officer of Tenant to be in accordance with the requirements of Section (d) and with generally accepted accounting principles, or in lieu thereof, a letter certified by Tenant's Senior Vice President of Finance and Controller in the form required under the Letter Agreement dated February 9, 2007.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Brokerage</u>. Each of Landlord and Tenant represents and warrants to the other that it has not dealt with any broker in connection with this Amendment other than Tishman Speyer Properties, L.P. ("<u>Broker</u>") and that, to the best of its knowledge, no other broker negotiated this Amendment or is entitled to any fee or commission in connection herewith. Landlord shall pay Broker any commission which may be due in connection with this Amendment pursuant to a separate agreement. Each of Landlord and Tenant shall indemnify, defend, protect and hold the other party harmless from and against any and all losses, liabilities, damages, claims, judgments, fines, suits, demands, costs, interest and expenses of any kind or nature (including reasonable attorneys' fees and disbursements) incurred in connection with any claim, proceeding or judgment and the defense thereof which the indemnified party may incur by reason of any claim of or liability to any broker, finder or like agent (other than Broker) arising out of any dealings claimed to have occurred between the indemnifying party and the claimant in connection with this Amendment, or the above representation being false. The provisions of this <u>Section 3</u> shall survive the expiration or earlier termination of the term of the Existing Lease, as amended hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Representations and Warranties</u>. (i) Tenant represents and warrants to Landlord that, as of the date hereof, (a) the Existing Lease is in full force and effect and has not been modified except pursuant to this Amendment; (b) to the best of Tenant's knowledge, there are no defaults existing under the Existing Lease; (c) to the best of Tenant's knowledge there exist no valid abatements, causes of action, counterclaims, disputes, defenses, offsets, credits, deductions, or claims against the enforcement of any of the terms and conditions of the Existing Lease; and (d) this Amendment has been duly authorized, executed and delivered by Tenant and constitutes the legal, valid and binding obligation of Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Landlord represents and warrants to Tenant that, as of the date hereof, (a) the Existing Lease is in full force and effect and has not been modified except pursuant to this Amendment; (b) to the best of Landlord's knowledge, there are no defaults existing under the Existing Lease; (c) to the best of Landlord's knowledge, there exist no valid causes of action, disputes or claims against the enforcement of any of the terms and conditions of the Existing Lease and (d) this Amendment has been duly authorized, executed and delivered by Landlord and constitutes the legal, valid and binding obligation of Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Miscellaneous</u>. (a) Except as set forth herein, nothing contained in this Amendment shall be deemed to amend or modify in any respect the terms of the Existing Lease and such terms shall remain in full force and effect as modified hereby. If there is any inconsistency between the terms of this Amendment and the terms of the Existing Lease, the terms of this Amendment shall be controlling and prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Amendment contains the entire agreement of the parties with respect to its subject matter and all prior negotiations, discussions, representations, agreements and understandings heretofore had among the parties with respect thereto are merged herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Amendment may be executed in duplicate counterparts, each of which shall be deemed an original and all of which, when taken together, shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) This Amendment shall not be binding upon Landlord or Tenant unless and until each party shall have received a fully executed counterpart of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) This Amendment shall be binding upon and inure to the benefit of Landlord and Tenant and their successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) This Amendment shall be governed by the laws of the State of New York without giving effect to conflict of laws principles thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The captions, headings, and titles in this Amendment are solely for convenience of reference and shall not affect its interpretation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The liability of Landlord for Landlord's obligations under this Amendment shall be limited to Landlord's interest in the Building and Tenant shall not look to any other property or assets of Landlord or the property or assets of any direct or indirect partner, member, manager, shareholder, director, officer, principal, employee or agent of Landlord (collectively, the "<u>Parties</u>") in seeking either to enforce Landlord's obligations under this Amendment or to satisfy a judgment for Landlord's failure to perform such obligations; and none of the Parties shall be personally liable for the performance of Landlord's obligations under this Amendment.

[Remainder of Page Intentionally Left Blank]

------

IN WITNESS WHEREOF, Landlord and Tenant have executed this Third Amendment to Lease as of the day and year first above written.

---

| | | |
|:---|:---|:---|
| LANDLORD | LANDLORD | LANDLORD |
| **RCPI LANDMARK PROPERTIES, L.L.C.** | **RCPI LANDMARK PROPERTIES, L.L.C.** | **RCPI LANDMARK PROPERTIES, L.L.C.** |
| By: | /s/ Michael B. Benner | /s/ Michael B. Benner |
|  | Michael B Benner | Michael B Benner |
|  | Vice President and Secretary | Vice President and Secretary |
| TENANT | TENANT | TENANT |
| **RADIO CITY PRODUCTIONS LLC** | **RADIO CITY PRODUCTIONS LLC** | **RADIO CITY PRODUCTIONS LLC** |
| By: | /s/ Eugene Heaney | /s/ Eugene Heaney |
|  | Name: | Eugene Heaney |
|  | Title: | Senior Vice President and Assistant Secretary |

---

The undersigned acknowledges the foregoing Amendment and ratifies and confirms all of its obligations under that certain Second Restated Guaranty of Lease dated as of January 24, 2011 (the "<u>Guaranty"</u>) and agrees that the covenants referred to in the Guaranty shall include the obligations of Tenant under the Existing Lease as amended by the foregoing Amendment.

---

| | | |
|:---|:---|:---|
| GUARANTOR: | GUARANTOR: | GUARANTOR: |
| **MADISON SQUARE GARDEN, L.P.** | **MADISON SQUARE GARDEN, L.P.** | **MADISON SQUARE GARDEN, L.P.** |
| A Delaware limited partnership | A Delaware limited partnership | A Delaware limited partnership |
| By: | /s/ Robert M. Pollichino | /s/ Robert M. Pollichino |
|  | Name: | Robert M. Pollichino |
|  | Title: | Executive Vice President and Chief Financial Officer |

---

## Exhibit 10.22

**Exhibit 10.22** 

**FIFTH AMENDMENT TO LEASE** 

This FIFTH AMENDMENT TO LEASE dated as of July 18, 2018 (this "<u>Amendment</u>") between **RCPI LANDMARK PROPERTIES, L.L.C.**, a Delaware limited liability company having an address c/o Tishman Speyer, 45 Rockefeller Plaza, New York, New York 10111 ("<u>Landlord</u>"), and **RADIO CITY PRODUCTIONS LLC** a Delaware limited liability company having an office at 1260 Avenue of the Americas, New York, New York 10020 ("<u>Tenant</u>").

<u>W I T N E S S E T H</u> 

WHEREAS, RCPI Trust, predecessor-in-interest to Landlord, and Tenant entered into that certain Lease dated as of December 4, 1997, as modified by First Amendment to Lease dated as of February 19, 1999, Second Amendment to Lease dated as of October 6, 2002, Letter Agreement dated February 9, 2007,Third Amendment to Lease dated as of August 14, 2008 and Fourth Amendment to Lease dated as of January 24, 2011 (as so amended, the "<u>Existing Lease</u>"), covering premises described and defined in the Existing Lease; and

WHEREAS, Landlord and Tenant desire to modify the Existing Lease to (a) provide for the granting of an option to Landlord whereby Tenant would surrender a portion of the Additional Premises demised to Tenant pursuant to the Second Amendment and Landlord would lease to Tenant certain substitute space on the submezzanine level of the building know as 50 Rockefeller Plaza (the "<u>Building</u>"); and (b) to otherwise modify the terms and conditions of the Existing Lease, all as hereinafter set forth (the Existing Lease, as modified by this Amendment, is herein referred to as the "<u>Lease</u>");

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Capitalized Terms</u>. All capitalized terms used and not otherwise defined in this Amendment shall have the respective meanings ascribed to them in the Original Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Termination Option</u>. (a) Landlord has requested, and Tenant has agreed to grant to Landlord an option (the "<u>Termination Option</u>") to terminate portions of the Additional Premises previously demised to Tenant pursuant to the Second Amendment to Lease (the "<u>Surrendered Space</u>"), as more particularly shown on <u>Exhibit A</u> attached hereto and made a part hereof. Commencing upon the date of this Amendment (the "Effective Date"), Landlord shall have the right, at its sole option, to terminate the Lease with respect to the Surrendered Space only, by giving not less than thirty (30) days' prior written notice to Tenant (the "<u>Termination Notice</u>"), which date for termination of the Lease set forth therein (the "<u>Termination Date</u>") can be any day during the term of the Lease. The term of the Lease and the Lease shall end and expire on the Termination Date and Tenant's estate in and possession of the Surrendered Space only shall terminate and be wholly extinguished with the same force and effect as if such date were initially set forth in the Lease as the Expiration Date. Notwithstanding anything contained herein to the contrary, Landlord agrees that it shall not exercise the Termination Option such that the Termination Date occurs during the period beginning October 1 through January 10 of any calendar year (the "Holiday Season").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Tenant shall not be responsible for removing any Fixtures from the Surrendered Space; provided, however that Tenant shall remove any of Tenant's personal property from the Surrendered Space. If Landlord exercises the Terrmination Option as provided above, Tenant shall remove all of Tenant's property from the Terminated Space on or before the Termination Date, time being of the essence with respect to said date, and vacate the Terminated Space and deliver vacant possession thereof to Landlord. Any personal property of Tenant remaining in the Surrendered Space after the Effective Date shall be deemed abandoned by Tenant and Landlord may take possession thereof and dispose of same in any manner Landlord determines without accountability therefor to Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Provided that Tenant shall have vacated the Surrendered Space in accordance with <u>Section</u> <u>2(b)</u> hereof, Tenant and Landlord and their respective successors and assigns shall be released of and from any and all claims, damages, obligations, liabilities, actions and causes of action, of every kind and nature whatsoever arising under or in connection with the Lease with respect to the Surrendered Space only from and after the Termination Date, except that nothing herein contained shall be deemed to constitute a release or discharge of Landlord or Tenant with respect to any obligation or liability (x) accrued or incurred under the Lease with respect to the Surrendered Space which is outstanding and unsatisfied on the Termination Date, and (y) to a third party (under the insurance and indemnification provisions of the Lease or otherwise) arising prior to, on or after the Termination Date as a result of an event occurring or condition existing in the Surrendered Space prior to, or on the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Tenant represents and warrants that it has not assigned, pledged or encumbered the Lease or sublet the Surrendered Space or done or suffered any other action as a result of which the Lease or the Surrendered Space might be subject to any lien or encumbrance. Tenant warrants that the foregoing covenants and representations will be true and correct as of the Effective Date, Tenant has and will have good right to surrender the Surrendered Space on or before the Effective Date, and delivery of possession of the Surrendered Space will be made to Landlord on or before the Effective Date free and clear of all liens and encumbrances of any kind whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Substitute Space</u>. (a) In the event Landlord exercises the Termination Option as provided herein, Landlord shall, lease to Tenant, portions of the submezzanine level of the Building, designated as Space '_', as more particularly shown on <u>Exhibit A</u> attached hereto (the "<u>Substitute Space</u>"), for a term commencing on the date (the "<u>Substitute Space Commencement Date</u>") that Landlord delivers possession of the Substitute Space to Tenant and ending on the Initial Expiration Date, or such earlier date upon which the term of the Lease may expire or be terminated pursuant to any of the conditions of limitation or other provisions of the Lease or pursuant to law, upon all of the terms and conditions of the Existing Lease, as modified by this Amendment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Landlord shall deliver possession of the Substitute Space to Tenant on the Effective Date. Landlord shall not be liable for failure to deliver possession of the Substitute Space or any portion thereof to Tenant on any specified date, and such failure shall not impair the validity of this Amendment. The provisions of this Article are intended to constitute "an express provision to the contrary" within the meaning of Section 223-a of the New York Real Property Law or any successor Requirement. Landlord shall give Tenant at least ten (10) days' advance written notice of the Effective Date. Notwithstanding the foregoing, Landlord agrees not to deprive Tenant of access to the Additional Premises by virtue of Landlord's exercise of the Termination Option and/or the delivery of the Substitute Space. Landlord further agrees that any work required to reconfigure the Additional Premises and/or the Substitute Space shall not occur during the Holiday Season.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Effective as of the Effective Date, Tenant shall lease the Substitute Space upon all of the terms and conditions of the Original Lease, except as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Tenant has inspected the Substitute Space and agrees (x) except as expressly provided herein, to accept possession of the Substitute Space in the "as is" condition existing on the Effective Date, (y) that neither Landlord nor Landlord's agents have made any representations or warranties with respect to the Substitute Space or the Building except as expressly set forth herein, and (z) Landlord has no obligation to perform any work, supply any materials, incur any expense or make any alterations or improvements to the Substitute Space or the Building to prepare the same for Tenant's occupancy (provided, however, that nothing herein shall be deemed to relieve Landlord of Landlord's obligations pursuant to <u>Section</u> <u>7.1 (a)</u> of the Original Lease). Tenant's occupancy of any part of the Substitute Space shall be conclusive evidence, as against Tenant, that (A) Tenant has accepted possession of the Substitute Space in its then current condition and (B) the Substitute Space and the Building are in satisfactory condition as required by this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding anything to the contrary contained herein, Landlord and Tenant agree that Landlord shall reconfigure the doors and hallways connecting the Additional Space to the Substitute Space and shall reconfigure and re-route the existing services to and around the Substitute Space as reasonably required. Tenant shall cooperate with Landlord in connection with the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Landlord and Tenant agree and acknowledge that the Substitute Space is substantially comparable in size to the Surrendered Space and that there shall be no change to any of the financial terms and conditions of the Lease as a result of the surrender of the Surrendered Space or the leasing of the Substitute Space as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Brokerage</u>. Each of Landlord and Tenant represents and warrants to the other that it has not dealt with any broker in connection with this Amendment other than Tishman Speyer Properties, L.P. ("<u>Broker</u>") and that, to the best of its knowledge, no other broker negotiated this Amendment or is entitled to any fee or commission in connection herewith. Landlord shall pay Broker any commission which may be due in connection with this Amendment pursuant to a separate agreement. Each of Landlord and

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Tenant shall indemnify, defend, protect and hold the other party harmless from and against any and all losses, liabilities, damages, claims, judgments, fines, suits, demands, costs, interest and expenses of any kind or nature (including reasonable attorneys' fees and disbursements) incurred in connection with any claim, proceeding or judgment and the defense thereof which the indemnified party may incur by reason of any claim of or liability to any broker, finder or like agent (other than Broker) arising out of any dealings claimed to have occurred between the indemnifying party and the claimant in connection with this Amendment, or the above representation being false. The provisions of this <u>Section</u> <u>4</u> shall survive the expiration or earlier termination of the term of the Existing Lease, as amended hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Representations and Warranties</u>. (i) Tenant represents and warrants to Landlord that, as of the date hereof, (a) the Existing Lease is in full force and effect and has not been modified except pursuant to this Amendment; (b) to the best of Tenant's knowledge, there are no defaults existing under the Existing Lease; (c) to the best of Tenant's knowledge there exist no valid abatements, causes of action, counterclaims, disputes, defenses, offsets, credits, deductions, or claims against the enforcement of any of the terms and conditions of the Existing Lease; and (d) this Amendment has been duly authorized, executed and delivered by Tenant and constitutes the legal, valid and binding obligation of Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Landlord represents and warrants to Tenant that, as of the date hereof, (a) the Existing Lease is in full force and effect and has not been modified except pursuant to this Amendment; (b) to the best of Landlord's knowledge, there are no defaults existing under the Existing Lease; (c) to the best of Landlord's knowledge, there exist no valid causes of action, disputes or claims against the enforcement of any of the terms and conditions of the Existing Lease and (d) this Amendment has been duly authorized, executed and delivered by Landlord and constitutes the legal, valid and binding obligation of Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Miscellaneous</u>. (a) Except as set forth herein, nothing contained in this Amendment shall be deemed to amend or modify in any respect the terms of the Existing Lease and such terms shall remain in full force and effect as modified hereby. If there is any inconsistency between the terms of this Amendment and the terms of the Existing Lease, the terms of this Amendment shall be controlling and prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Amendment contains the entire agreement of the parties with respect to its subject matter and all prior negotiations, discussions, representations, agreements and understandings heretofore had among the parties with respect thereto are merged herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Amendment may be executed in duplicate counterparts, each of which shall be deemed an original and all of which, when taken together, shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) This Amendment shall not be binding upon Landlord or Tenant unless and until each party shall have received a fully executed counterpart of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) This Amendment shall be binding upon and inure to the benefit of Landlord and Tenant and their successors and permitted assigns.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) This Amendment shall be governed by the laws of the State of New York without giving effect to conflict of laws principles thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The captions, headings, and titles in this Amendment are solely for convenience of reference and shall not affect its interpretation.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The liability of Landlord for Landlord's obligations under this Amendment shall be limited to Landlord's interest in the Building and Tenant shall not look to any other property or assets of Landlord or the property or assets of any direct or indirect partner, member, manager, shareholder, director, officer, principal, employee or agent of Landlord (collectively, the "<u>Parties</u>") in seeking either to enforce Landlord's obligations under this Amendment or to satisfy a judgment for Landlord's failure to perform such obligations; and none of the Parties shall be personally liable for the performance of Landlord's obligations under this Amendment.

IN WITNESS WHEREOF, Landlord and Tenant have executed this Third Amendment to Lease as of the day and year first above written.

---

| | |
|:---|:---|
| LANDLORD | LANDLORD |
| **RCPI LANDMARK PROPERTIES, L.L.C.** | **RCPI LANDMARK PROPERTIES, L.L.C.** |
| By: | /s/ Michael B. Benner |
|  | Michael B. Benner |
|  | Vice President and Secretary |
| TENANT | TENANT |
| **RADIO CITY PRODUCTIONS LLC** | **RADIO CITY PRODUCTIONS LLC** |
| By: | /s/ Clinton Neils |
|  | Name: Clinton Neils |
|  | Title: General Manager, Radio City Music Hall |

---

The undersigned acknowledges the foregoing Amendment and ratifies and confirms all of its obligations under that certain Guaranty of Lease dated as of September 18, 2015 (the "<u>Guaranty</u><u>"</u>) and agrees that the covenants referred to in the Guaranty shall include the obligations of Tenant under the Existing Lease as amended by the foregoing Amendment.

GUARANTOR:

---

| | |
|:---|:---|
| **MSG SPORTS & ENTERTAINMENT, LLC** | **MSG SPORTS & ENTERTAINMENT, LLC** |
| A Delaware limited liability company | A Delaware limited liability company |
| By: | /s/ Marc Schoenfeld |
|  | Name: Marc Schoenfeld |
|  | Title: Senior Vice President and Assistant Secretary |

---

## Exhibit 10.23

**Exhibit 10.23** 

**CERTAIN CONFIDENTIAL INFORMATION, IDENTIFIED BY BRACKETED ASTERISKS "[\*\*\*\*\*]", HAS BEEN OMITTED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

**<u>SIXTH AMENDMENT TO LEASE</u>**

**SIXTH AMENDMENT TO LEASE**, dated as of July 1, 2021 (this "<u>Amendment</u>"), between **RCPI LANDMARK PROPERTIES, L.L.C.**, a Delaware limited liability company, having an office c/o Tishman Speyer, 45 Rockefeller Plaza, New York, New York 10111 ("<u>Landlord</u>") and **RADIO CITY PRODUCTIONS LLC**, a Delaware limited liability company, having an office at 1260 Avenue of the Americas, New York, New York 10020 ("<u>Tenant</u>").

**<u>WITNESSETH</u>:** 

WHEREAS, pursuant to a Lease, dated as of December 4, 1997 (the "<u>Original Lease</u>"), between Landlord (as successor-in-interest to RCPI Trust) and Tenant, as amended by First Amendment to Lease, dated as of February 19, 1999, Second Amendment to Lease, dated as of November 6, 2002, Letter Agreement, dated as of February 9, 2007, Third Amendment to Lease, dated as of August 14, 2008, Fourth Amendment to Lease, dated as of January 24, 2011, Fifth Amendment to Lease, dated as of July 18, 2018 and Letter Agreements, dated as of February 24, 2021, March 25, 2021 and April 29, 2021 (the Original Lease, as amended, the "<u>Lease</u>"), Tenant is leasing from Landlord the Premises comprised of the Music Hall, the 1270 Space, the 50 Rock Space, the Retail Space and the Storage Premises in the buildings known as (a) 1260 Avenue of the Americas, New York, New York, (b) 1270 Avenue of the Americas, New York, New York and (c) 50 Rockefeller Plaza, New York, New York ((a), (b) and (c), collectively, the "<u>Building</u>"), as is more particularly described in the Lease (the "<u>Existing Premises</u>"); and

WHEREAS, the term of the Lease is scheduled to expire on February 28, 2023; and

WHEREAS, pursuant to a Guaranty of Lease, dated as of September 18, 2015, from MSG Entertainment Group, LLC (formerly known as MSG Sports & Entertainment, LLC), a Delaware limited liability company ("<u>Guarantor</u>"), to Landlord (the "<u>Guaranty</u>"), Guarantor guarantees certain obligations of Tenant under the Lease, as more particularly described in the Guaranty; and

WHEREAS, Landlord and Tenant desire to amend the Lease to extend the term thereof in respect of the Existing Premises other than the Retail Space (the "<u>Extension Term Premises</u>") on the terms and conditions hereinafter set forth.

NOW, THEREFORE, Landlord and Tenant agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Defined Terms</u>. All capitalized terms used herein but not defined shall have the meanings ascribed to them in the Lease.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Extension of Term</u>. (a) The term of the Lease is hereby extended in respect of the Extension Term Premises only for a period of 15 years and 6 months (the "<u>Extension Term</u>") commencing on March 1, 2023 (the "<u>Extension Term Commencement Date</u>") and expiring on August 31, 2038, which date shall be deemed the Initial Expiration Date in respect of the Extension Term Premises for all purposes under the Lease, unless sooner terminated in accordance with the terms of the Lease or pursuant to law. From and after the date of this Amendment, the term "<u>Expiration Date</u>" shall mean, in respect of the Extension Term Premises only, August 31, 2038, or if the Term in respect of the Extension Term Premises shall be extended in accordance with <u>Article 36</u> of the Lease (as amended hereby), August 31, 2048. The term of the Lease with respect to the Retail Space shall expire as of February 28, 2023, and in connection therewith, (i) Tenant shall surrender the Retail Space to Landlord in accordance with the applicable provisions of the Lease, including, without limitation, Article 23 of the Lease and (ii) during the Extension Term, neither Landlord nor Tenant shall have any further rights and/or obligations under the Lease with respect to the Retail Space, except pursuant to any provisions of the Lease that expressly survive the expiration or earlier termination thereof (but nothing contained herein shall be construed to release Tenant from any obligations under the Lease with respect to the Retail Space for the period up to and including February 28, 2023).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Tenant's leasing of the Extension Term Premises during the Extension Term shall be on all of the terms and conditions of the Lease (as amended hereby), except that, from and after the Extension Term Commencement Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The term "Premises" shall mean the Extension Term Premises only.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Fixed Rent (as same may be adjusted pursuant to <u>Section</u> <u>2(b)(v)</u> and <u>Section</u> <u>2(b)(vi) below</u>) shall be payable at the times and in the manner set forth in the Lease, at the following rates:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Commencing on the Extension Term Commencement Date and ending on August 31, 2028, at an annual rate of [\*\*\*\*\*], payable in equal monthly installments of [\*\*\*\*\*];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Commencing on September 1, 2028 and ending on August 31, 2033, at an annual rate of [\*\*\*\*\*], payable in equal monthly installments of [\*\*\*\*\*]; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Commencing on September 1, 2033 and ending on the Initial Expiration Date, at an annual rate of [\*\*\*\*\*], payable in equal monthly installments of [\*\*\*\*\*].

Notwithstanding the foregoing, provided, that so long as Tenant is not then in monetary or material non-monetary default beyond applicable notice and cure periods, Fixed Rent shall be abated for the period commencing on the Extension Term Commencement Date and ending on August 31, 2023. To the extent that such a default exists, Tenant's right to the abatement of Fixed Rent shall be suspended during the pendency of such default but reinstated upon the curing of any such default by Tenant during the Extension Term.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Tenant shall not pay any Retail Operating Expense Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Tenant shall pay increases in Taxes in accordance with the provisions of Article 8 of the Lease, except that "<u>Base Tax Year</u>" shall mean the Tax Year commencing on July 1, 2003 ****and ending on June 30, 2004 and "Tenant's Area" shall mean 576,466 rentable square feet. [\*\*\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) If Tenant's Tax Payment in respect of the Tax Year commencing on July 1, 2023 and ending on June 30, 2024 (the "<u>23/24 Tax Year</u>"), as finally determined, shall be more than [\*\*\*\*\*] (the "<u>23/24 Tax Estimate")</u>, then (x) within 30 days following the date Taxes for the 23/24 Tax Year are finally determined (the "<u>23/24 Tax Determination Date</u>"), the parties shall recalculate Fixed Rent for the Extension Term by deducting such excess from the Fixed Rent amounts set forth in each of clauses <u>(A)</u>, <u>(B)</u> and <u>(C)</u> of <u>Section</u> <u>2(b)(ii)</u> above, (y) Landlord shall, within 30 days following the 23/24 Tax Determination Date, pay to Tenant the amount by which the Fixed Rent paid by Tenant for the period from and after the Extension Term Commencement Date, to and including the date of such payment by Landlord exceed the adjusted Fixed Rent for the same period and (z) Tenant shall thereafter pay Fixed Rent based on the Fixed Rent as recalculated in accordance with this <u>Section</u> <u>2(b)(v)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) If Tenant's Tax Payment in respect of the 23/24 Tax Year, as finally determined, shall be less than [\*\*\*\*\*], then (x) within 30 days following the 23/24 Tax Determination Date, the parties shall recalculate Fixed Rent for the Extension Term by adding such shortfall to the Fixed Rent amounts set forth in each of clauses <u>(A)</u>, <u>(B)</u> and <u>(C)</u> of <u>Section</u> <u>2(b)(ii)</u> above, (y) Tenant shall, within 30 days following the 23/24 Tax Determination Date, pay to Landlord the shortfall between the Fixed Rent paid by Tenant for the period from and after the Extension Term Commencement Date, to and including the date of such payment by Landlord and the adjusted Fixed Rent for the same period and (z) Tenant shall thereafter pay Fixed Rent based on the Fixed Rent as recalculated in accordance with this <u>Section</u> <u>2(b)(vi)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Tenant shall pay Percentage Rent in accordance with <u>Schedule 2</u> of the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Tenant shall pay for electricity in accordance with the provisions of <u>Article 17</u> of the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Except as otherwise provided in this Amendment, Landlord shall not be required to perform any work, to pay any amount, to install any fixtures or equipment or to render any services to make the Building or the Extension Term Premises ready or suitable for Tenant's continued use or occupancy or to provide any abatement of Fixed Rent or Additional Rent, and Tenant shall accept the Extension Term Premises in its "as is" condition on the Extension Term Commencement Date. The foregoing shall not relieve Landlord from its ongoing repair, maintenance, restoration and legal compliance obligations set forth in the Lease.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Tenant shall continue to have the option to renew the Term of the Lease pursuant to <u>Article 36</u> of the Lease, except that (i) Fixed Rent for the Renewal Term shall be an amount equal to the Fair Market Value of the Extension Term Premises (determined in accordance with Section 36.3 of the Lease) and Section 36.2(a)(ii) shall be inapplicable and (ii) it shall not be a condition to Tenant's right to exercise the renewal option that no non-monetary Event of Default exist at the time of exercise (but the condition that no monetary Event of Default exist shall continue in effect), provided that Tenant shall cure any such non-monetary Event of Default prior to the Renewal Term Commencement Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Tenant's Base Building Work</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Tenant shall, in a good and workmanlike manner, perform and diligently complete the work described on <u>Exhibit A</u> (except that the window repairs shall be performed by Landlord; provided, that, the cost of such window repairs shall be deducted from the Base Building Work Allowance (as defined below); <u>provided</u>, that, in no event shall more than [\*\*\*\*\*] be deducted from the Base Building Work Allowance for such window repairs) attached hereto ("<u>Tenant's Base Building Work</u>") during the period commencing on the date of this Amendment and ending on February 28, 2026 (as such date may be extended by Tenant Construction Delays, as hereinafter defined), subject to <u>Section</u> <u>3(e)</u>, <u>Section</u> <u>3(f)</u> and <u>Section</u> <u>5</u> below and in accordance with all applicable Requirements and the terms of the Lease, including, without limitation, Article 5. Tenant shall prepare a final plan or final set of plans and specifications (such final plan or final set of plans and specifications, as the same may be modified and/or amended, as the case may be, are hereinafter called the "<u>Base Building Final Plan</u>"), which Base Building Final Plan shall contain complete information and dimensions necessary for Tenant's Base Building Work and for the engineering in connection therewith, other than the window repairs, which shall be Landlord's responsibility. Landlord shall obtain a minimum 3 bids for the performance of the window repairs and shall choose the lowest, fully responsive bid received by Landlord in connection with the performance of such work. Landlord shall use reasonable efforts (i) to coordinate Landlord's performance of the window repair work with Tenant and (ii) to minimize any interference with Tenant's use of the Extension Term Premises during Landlord's performance of the window repair work. Landlord shall reimburse Tenant for the cost of Tenant's Base Building Work in an amount equal to the lesser of (x) the Base Building Work Allowance and (y) the actual cost of Tenant's Base Building Work, upon the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Base Building Work Allowance shall be payable to Tenant (or to Tenant's general contractor or construction manager, as directed by Tenant) in installments as Tenant's Base Building Work progresses, but in no event more frequently than monthly, it being acknowledged that Tenant has heretofore performed work in respect of the hot water heater replacement and Tenant may requisition a portion of the Base Building Work Allowance with respect to such work from and after the date of this Amendment. Installments of the Base Building Work Allowance shall be payable by Landlord within 30 days following Tenant's satisfaction of each of the conditions required for disbursement set forth in this <u>Section</u> <u>3</u> provided that Tenant is not then in monetary or material non-monetary default under the Lease beyond any applicable notice and cure period.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Prior to the payment of any installment, Tenant shall deliver to Landlord a request for disbursement which shall be accompanied by (1) paid invoices (or invoices if Tenant shall be directing Landlord to pay Tenant's general contractor or construction manager) for Tenant's Base Building Work performed or incurred since the last disbursement of the Base Building Work Allowance, (2) a certificate signed by Tenant's architect (but only for work covered by such architect's engagement) and an officer of Tenant certifying that Tenant's Base Building Work and the services represented by the aforesaid invoices have been satisfactorily completed substantially in accordance with the plans and specifications therefor approved by Landlord and have not been the subject of a prior disbursement of the Base Building Work Allowance and (3) lien waivers by architects, contractors, subcontractors and all materialmen for all such work and services; provided, that, if Tenant fails to deliver to Landlord a lien waiver for any work costing less than $50,000.00 and provided that Tenant otherwise complies with the requirements of this <u>Section</u> <u>3(a)(ii)</u>, Landlord shall disburse the installment, less 120% of the amount owed for any such work for which Tenant has not delivered a lien waiver. Landlord shall be permitted to retain from each disbursement 10% of the amount requested to be disbursed by Tenant, unless, so long as the cost incurred by Tenant to perform Tenant's Base Building Work is not greater than the Base Building Work Allowance (less the cost of the window repairs), the requisition already reflects a 10% retainage from amounts billed by the applicable contractor(s). The aggregate amount of the retainages shall be paid by Landlord to Tenant upon the completion of all of Tenant's Base Building Work and upon receipt from Tenant of (i) a certificate signed by Tenant's architect (for work covered by such architect's engagement) and an officer of Tenant certifying that all of Tenant's Base Building Work has been satisfactorily completed substantially in accordance with the plans and specifications therefor approved by Landlord, (ii) all sign-offs and inspection certificates and any permits required to be issued by the New York City Department of Buildings or any other governmental entities having jurisdiction thereover and (iii) a final lien waiver from all contractors and subcontractors performing Tenant's Base Building Work; <u>provided</u>, that, if Tenant fails to deliver a final lien waiver for any contract for less than $50,000.00 and provided that Tenant otherwise complies with the requirements of this <u>Section</u> <u>3(a)(ii)</u>, Landlord shall disburse the aggregate amount of the retainages, less 120% of the amount owed for any contract for less than $50,000.00 for which Tenant has failed to deliver a final lien waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Base Building Work Allowance</u>" means a work allowance in the amount of [\*\*\*\*\*] (subject to reduction in accordance with <u>Section</u> <u>3(a)</u> and <u>Section</u> <u>3(f)</u>). The "Estimated Costs" listed on <u>Exhibit A</u> are estimates only and except as provided in <u>Section</u> <u>3(f)</u>, Tenant may adjust the allocation of the Base Building Work Allowance among the different items of Tenant's Base Building Work to reflect the actual cost of each item of Tenant's Base Building Work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The right to receive reimbursement for the cost of Tenant's Base Building Work as set forth in this <u>Section</u> <u>3</u> shall be for the exclusive benefit of Tenant, it being the express intent of the parties hereto that in no event shall such right be conferred upon or for the benefit of any third party, including, without limitation, any contractor, subcontractor, materialman, laborer, architect, engineer, attorney or any other person, firm or entity. Tenant's indemnity pursuant to the provisions of Section 32.1 of the Lease shall apply to any and all liability,

------

damages, claims, costs or expenses of Landlord, all lessors party to a lease that affects all or any portion of the Building and all mortgagees party to a mortgage that affects all or any portion of the Building and each of their respective partners, members, directors, officers, shareholders, principals, agents and employees (each, an "<u>Indemnified Party</u>") arising out of or relating to Landlord's payment of any installment of the Base Building Work Allowance directly to Tenant's general contractor or construction manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary contained in this <u>Section</u> <u>3</u>, in no event shall more than [\*\*\*\*\*] of the Base Building Work Allowance be made available to Tenant for Tenant's soft costs of construction (including, without limitation, filing and permit fees and expenses, architecture, engineering and other consulting fees and expenses, reimbursement of Landlord plan review costs and moving expenses).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If Tenant has not timely and properly submitted a request for disbursement as set forth in this <u>Section</u> <u>3</u> on or before February 28, 2026 for any portion of the Base Building Work Allowance, such amount shall be retained by and belong to Landlord. For the avoidance of doubt, such date shall be extended on a day for day basis for any period during which (i) an Unavoidable Delay affecting Tenant (which shall in no event be deemed to be or be caused by the nonpayment of money or a failure attributable to a lack of funds) demonstrably precludes or delays Tenant in obtaining a building permit or performing Tenant's Base Building Work or obtaining the required governmental sign offs and/or (ii) the provisions of <u>Section</u> <u>3(f)</u> below apply (collectively, "<u>Tenant Construction Delays</u>") and/or (iii) Tenant has commenced and is diligently performing Tenant's Base Building Work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If Tenant is unable to obtain Landmarks Approval (as defined below) for any item of Tenant's Base Building Work described on <u>Exhibit A</u> for which Landmarks Approval is required, the Base Building Work Allowance shall be reduced by the estimated cost for such item as set forth on <u>Exhibit A</u>; provided, that, if Tenant subsequently obtains Landmarks Approval for such item of Tenant's Base Building Work, Tenant shall promptly commence and diligently prosecute such work to completion upon receipt of Landmarks Approval, and Tenant shall be entitled to reimbursement for the cost of such item of Tenant's Base Building Work in accordance with this <u>Section</u> <u>3</u> (except that, the limitation in <u>Section</u> <u>3(e)</u> shall apply if Tenant does not use such portion of the Base Building Work Allowance within 3 years after Tenant obtains such approval for the applicable item of Tenant's Base Building Work), but in no event shall the total Base Building Work Allowance exceed [\*\*\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Tenant's Improvements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Tenant shall, in a good and workmanlike manner, perform and diligently complete Tenant's Improvements (as defined below) during the period commencing on the date of this Amendment and ending on February 28, 2026 (as such date may be extended by Tenant Construction Delays), subject to <u>Section</u> <u>4(f)</u>, <u>Section</u> <u>4(g)</u> and <u>Section</u> <u>5</u> below and in accordance with all applicable Requirements and the terms of the Lease, including, without limitation, Article 5. Tenant shall prepare a final plan or final set of plans and specifications (such final plan or final set of plans and specifications, as the same may be modified and/or amended, as the case may be, are hereinafter called the "<u>Tenant Improvement Final Plan</u>"), which Tenant Improvement Final Plan shall contain complete information and dimensions necessary for

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Tenant's Improvements and for the engineering in connection therewith. Landlord shall reimburse Tenant for the cost of Tenant's Improvements in an amount equal to the lesser of (x) the Tenant Improvement Allowance (as defined below) and (y) the actual cost of Tenant's Improvements, upon the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Tenant Improvement Allowance shall be payable to Tenant (or to Tenant's general contractor or construction manager, as directed by Tenant) in installments as Tenant's Improvements progress, but in no event more frequently than monthly. Installments of the Tenant Improvement Allowance shall be payable by Landlord within 30 days following Tenant's satisfaction of each of the conditions required for disbursement set forth in this <u>Section</u> <u>4</u> provided that Tenant is not then in monetary or material non-monetary default under the Lease beyond any applicable notice and cure period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Prior to the payment of any installment, Tenant shall deliver to Landlord a request for disbursement which shall be accompanied by (1) paid invoices (or invoices if Tenant shall be directing Landlord to pay Tenant's general contractor or construction manager) for Tenant's Improvements performed or incurred since the last disbursement of the Tenant Improvement Allowance, (2) a certificate signed by Tenant's architect (but only for work covered by such architect's engagement) and an officer of Tenant certifying that Tenant's Improvements and services represented by the aforesaid invoices have been satisfactorily completed substantially in accordance with the plans and specifications therefor approved by Landlord and have not been the subject of a prior disbursement of the Tenant Improvement Allowance and (3) lien waivers by architects, contractors, subcontractors and all materialmen for all such work and services; provided, that, if Tenant fails to deliver to Landlord a lien waiver for any work costing less than $50,000.00 and provided that Tenant otherwise complies with the requirements of this <u>Section</u> <u>4(a)(ii)</u>, Landlord shall disburse the installment, less 120% of the amount owed for any such work for which Tenant has not delivered a lien waiver. Landlord shall be permitted to retain from each disbursement 10% of the amount requested to be disbursed by Tenant, unless, so long as the cost incurred by Tenant to perform Tenant's Improvements is not greater than the Tenant Improvement Allowance, the requisition already reflects a 10% retainage from amounts billed by the applicable contractor(s). The aggregate amount of the retainages shall be paid by Landlord to Tenant upon the completion of all of Tenant's Improvements and upon receipt from Tenant of (A) a certificate signed by Tenant's architect and an officer of Tenant certifying that all of Tenant's Improvements has been satisfactorily completed in accordance with the plans and specifications therefor approved by Landlord, (B) all sign-offs and inspection certificates and any permits required to be issued by the New York City Department of Buildings or any other governmental entities having jurisdiction thereover and (C) a final lien waiver from all contractors and subcontractors performing Tenant's Improvements; <u>provided</u>, that, if Tenant fails to deliver a final lien waiver for any contract for less than $50,000.00 and provided that Tenant otherwise complies with the requirements of this <u>Section</u> <u>4(a)(ii)</u>, Landlord shall disburse the aggregate amount of the retainages, less 120% of the amount owed for any contract for less than $50,000.00 for which Tenant has failed to deliver a final lien waiver.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Tenant's Improvements</u>" means the installation of fixtures, improvements and appurtenances attached to or built into the Extension Term Premises described on <u>Exhibit B</u> attached hereto, and shall not otherwise include movable partitions, business and trade fixtures, machinery, equipment, furniture, furnishings and other articles of personal property. If the actual cost to perform Tenant's Improvements is less than the Tenant Improvement Allowance, Tenant shall have the right to apply the remaining Tenant Improvement Allowance towards the Setback Improvements (as hereinafter defined) and/or the Roof Improvements (as hereinafter defined) in accordance with the terms of this <u>Section</u> <u>4</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Tenant Improvement Allowance</u>" means a work allowance in the amount of [\*\*\*\*\*] (subject to reduction in accordance with <u>Section</u> <u>4(a)</u> and <u>Section</u> <u>4(g)</u>). The "Estimated Costs" listed on <u>Exhibit B</u> are estimates only and except as provided in <u>Section</u> <u>4(g)</u>, Tenant may adjust the allocation of the Tenant Improvement Allowance to reflect the actual cost of each item of Tenant's Improvements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The right to receive reimbursement for the cost of Tenant's Improvements as set forth in this <u>Section</u> <u>4</u> shall be for the exclusive benefit of Tenant, it being the express intent of the parties hereto that in no event shall such right be conferred upon or for the benefit of any third party, including, without limitation, any contractor, subcontractor, materialman, laborer, architect, engineer, attorney or any other person, firm or entity. Tenant's indemnity pursuant to the provisions of Section 32.1 of the Lease shall apply to any and all liability, damages, claims, costs or expenses of any Indemnified Party arising out of or relating to Landlord's payment of any installment of the Tenant Improvement Allowance directly to Tenant's general contractor or construction manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything to the contrary contained in this <u>Section</u> <u>4</u>, in no event shall more than [\*\*\*\*\*] of the Tenant Improvement Allowance be made available to Tenant for Tenant's soft costs of construction (including, without limitation, filing and permit fees and expenses, architecture, engineering and other consulting fees and expenses, reimbursement of Landlord plan review costs and moving expenses).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If Tenant has not timely and properly submitted a request for disbursement as set forth in this <u>Section</u> <u>4</u> on or before February 28, 2026 for any portion of the Tenant Improvement Allowance, such remaining portion shall be retained by and belong to Landlord. For the avoidance of doubt, such date shall be extended on a day for day basis for any period during which (i) an Unavoidable Delay affecting Tenant (which shall in no event be deemed to be or be caused by the nonpayment of money or a failure attributable to a lack of funds) demonstrably precludes or delays Tenant in obtaining a building permit or performing Tenant's Improvements or obtaining the required governmental sign offs and/or (ii) the provisions of <u>Section</u> <u>4(g)</u> below apply and/or (iii) Tenant has commenced and is diligently performing Tenant's Improvements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If Tenant is unable to obtain Landmarks Approval for any item of Tenant's Improvements described on <u>Exhibit B</u> for which Landmarks Approval is required, the Tenant Improvement Allowance shall be reduced by the estimated cost for such item as set forth on <u>Exhibit B</u>; provided, that, if Tenant subsequently obtains Landmarks Approval for such item of Tenant's Improvements, Tenant shall promptly commence and diligently prosecute such work to

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completion upon receipt of Landmarks Approval, and Tenant shall be entitled to reimbursement for the cost of such item of Tenant's Improvements in accordance with this <u>Section</u> <u>4</u> (except that, the limitation in <u>Section</u> <u>4(f)</u> shall apply if Tenant does not use such portion of the Tenant Improvement Allowance within 3 years after Tenant obtains such approval for the applicable item of Tenant's Improvements), but in no event shall the total Tenant Improvement Allowance exceed [\*\*\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) If Landlord fails to pay an installment of the Base Building Work Allowance or the Tenant Improvement Allowance on or before the date on which the same is due and payable to Tenant under <u>Section</u> <u>3(a)</u> and <u>Section</u> <u>4(a)</u> respectively, and if such failure continues for 30 days after Tenant notifies Landlord of such failure (which notice shall state in bold capital letters that Tenant intends to set off such amount against the next installment of Fixed Rent unless Landlord pays such amount to Tenant within such 30 day period), then Tenant shall have the right to offset such amount, with interest thereon at the Interest Rate from the date such sum was originally due and payable to Tenant until credited, against the next installment(s) of Fixed Rent coming due under the Lease until Tenant has been fully reimbursed therefor. Notwithstanding the foregoing, if within 30 days after Tenant's notice to Landlord of such failure, Landlord notifies Tenant that Landlord disputes Landlord's obligation to pay such unpaid amount of the Base Building Work Allowance or the Tenant Improvement Allowance (which notice shall specify the basis for Landlord's dispute in reasonable detail and the portion of such installment of the Base Building Work Allowance or the Tenant Improvement Allowance to which such dispute relates), then Tenant shall not have the right to offset the portion of such installment of the Base Building Work Allowance or the Tenant Improvement Allowance so disputed or interest thereon (but Tenant may offset any portion of such installment that is not in dispute and is not paid by Landlord within such 30 day period), and such dispute shall be subject to expedited arbitration pursuant to the rules of the American Arbitration Association. If Tenant obtains a final and binding determination of such arbitrators, which decision has been reduced to judgment, to the effect that Landlord was required to pay such installment of the Base Building Work Allowance or the Tenant Improvement Allowance, then (x) Landlord shall pay such amount to Tenant and (y) if Landlord shall not within 10 Business Days after such judgment has been obtained approve the same and pay such funds to Tenant, with interest at the Interest Rate from the date such sum was originally due Tenant, and Landlord shall have failed to pay Tenant pursuant to this <u>Section</u> <u>4(h)</u>, Tenant shall have the right to offset such amount (together with interest as aforesaid) against the next installment(s) of Fixed Rent becoming due hereunder until Tenant has been fully reimbursed therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Landlord confirms that Tenant shall not be obligated to remove at the end of the Term any Alterations or leasehold improvements existing in the Premises on the date of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Landmarks Approval</u>. Notwithstanding anything herein to the contrary, if any of Tenant's Base Building Work, Tenant's Improvements, the Setback Improvements, the Roof Improvements or any other work that may be performed by Tenant in accordance with the terms of the Lease, shall be subject to the approval ("<u>Landmarks Approval</u>") of the Commission or any such modifications as the Commission may require, Tenant shall be responsible for obtaining any such approval prior to commencement of such Tenant's Base Building Work, Tenant's Improvements, the Setback Improvements and the Roof Improvements, as applicable;

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provided that Landlord shall use commercially reasonable efforts to support Tenant in obtaining any such approval (including executing any required forms and providing other required information) but Landlord shall have no liability if Tenant is unable to obtain any such approval. Landlord shall have the right to participate in any public hearing in front of the Commission regarding such Tenant's Base Building Work, Tenant's Improvements, the Setback Improvements or the Roof Improvements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Intentionally Omitted.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Cross Promoting</u>. Landlord and Tenant shall reasonably cooperate to maximize any cross-promotional and marketing activities between Tenant's use of the Premises and the business of Landlord and other tenants of the Center.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Marquee Roof</u>. (a) From and after the date of this Amendment, subject to any conditions and restrictions set forth in this <u>Section</u> <u>8</u>, Tenant may use the roof above the marquee of the Music Hall (the "<u>Roof</u>") for any lawful use, such as, by way of example only, the installation of banners and other signage, sponsorship opportunities, the filming of commercials or photo shoots, broadcast activities, the installation of Christmas trees and other seasonal decorations, exhibitions (including the temporary locating of automobiles and other products), the conduct of live music or other performances, the installation of temporary platforms and subject to the provisions of <u>Section</u> <u>8(b)</u> below, any use entailing people gathering or congregating, including, without limitation, cocktail or dinner parties (provided that in no event shall any such use entail more than 50 people being on the Roof at any one time). In no event may Tenant use the Roof for any purpose that would be reasonably expected to result in large crowds gathering on the sidewalk or streets in and around the Building or for any event that would result in street closures or otherwise adversely affect access to or the operations of nearby retailers and office users or that would exceed the load capacity of the Roof. Prior to any use of the Roof, Tenant shall provide notice to Landlord thereof, together with copies of any applicable licenses and permits required for such use and notice of any Roof Property (as defined below) to be placed on the Roof in connection with such use. Tenant's use of the Roof shall be in compliance with the Restrictions (if applicable), reasonable rules and regulations promulgated by Landlord from time to time, and all applicable Requirements (including with respect to the serving, sale and/or consumption of alcohol), and Tenant, at Tenant's cost (including the payment of any taxes in connection therewith), shall obtain and maintain all required licenses and permits from Governmental Authorities (including, without limitation, the Commission) for such use(s), and shall comply with any noise, safety and other requirements and limitations contained in such licenses and permits. Landlord shall reasonably cooperate, to the extent necessary and at Tenant's sole cost, in assisting Tenant in obtaining any such licenses and permits. If Tenant desires to use the Roof to project amplified sound, Tenant shall coordinate such use with Landlord so as to enable Landlord to determine (in Landlord's sole discretion) that such use does not disturb any other retailers or office users in the Center or events previously scheduled at the Center, and in no event shall amplified sound emanate from the Roof during Business Hours without Landlord consent, which consent may be withheld in Landlord's sole discretion. Tenant shall not use the Roof for live musical performances more than 4 times per calendar year, of which at least 2 such musical performances shall be with performers who are performing in the Music Hall and the balance of such musical performances (if any) shall be with performers who are promoting performances at Madison Square Garden or at other locations. Tenant, at Tenant's cost, shall (i) take all necessary

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precautions to ensure that such events are conducted in a safe and secure manner, protective of the Roof, participants and pedestrians, taking into account the nature of the event and the Roof Property, including, without limitation, all precautions and safeguards, if any, reasonably required by Landlord and Landlord's insurer, (ii) clean the Roof and provide security and any other services required in connection with Tenant's use thereof, (iii) reimburse Landlord for any damage caused to the Roof or other parts of the Building as a result of Tenant's use of the Roof and (iv) maintain insurance with respect to Tenant's usage of the Roof in accordance with Tenant's obligations under Article 13 of the Lease as if the Roof were part of the Premises during the period of Tenant's usage thereof. Tenant's use of the Roof (including, without limitation, any Roof Property consisting of lighting or projection equipment) shall not disturb other tenants or occupants of the Center. All of Tenant's obligations under the Lease shall apply to Tenant's use of the Roof, including provisions relating to Requirements, insurance, Alterations, indemnity, repairs and maintenance (provided, however, that Tenant's repair and maintenance obligations with respect to the Roof shall be limited to repairs and maintenance necessitated by, or otherwise arising from, any use of the Roof, and any other act or omission of, any person invited by Tenant to use the Roof), as if the Roof were part of the Premises. Tenant may not host events (but may set up before and clean after events) on the Roof between the hours of 1:00 a.m. and 7:30 a.m., without Landlord's approval, which may be withheld in Landlord's sole discretion. In connection with Tenant's use of the Roof, Tenant may install lighting, projection equipment, decorations, furnishings, audio equipment, other Tenant's Property and other temporary installations (the "<u>Roof Property</u>") in accordance with the provisions and restrictions set forth in this <u>Section</u> <u>8</u> and the provisions of the Lease and subject to the further condition that, the Roof Property be secured so as to minimize any risk, in case of a windstorm or otherwise, of any property moving and causing injury or damage to persons or property. All Roof Property shall be removed by Tenant promptly after the applicable event for which it is used and in any event prior to the Expiration Date. Tenant shall not make any Alterations to the Roof without Landlord's prior written approval, which may be withheld or conditioned in Landlord's sole discretion. If Tenant shall fail to cease use of the Roof in violation of this <u>Section</u> <u>8</u> within 48 hours after Landlord shall have given Tenant notice that Tenant's use of the Roof is in violation of this <u>Section</u> <u>8</u> and such failure occurs more than once within any consecutive twelve-month period, or if Landlord shall give more than two such notices in any consecutive six-month period, Landlord shall have the right to immediately revoke Tenant's right to use the Roof pursuant to this <u>Section</u> <u>8</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting the provisions of <u>Section</u> <u>8(a)</u> above, if Tenant intends to install or place any Roof Property on the Roof, prior to such installation or placing of such Roof Property that requires licenses or permits from Governmental Authorities or is an Alteration under the Lease that requires the delivery and approval of plans and specifications, Tenant shall provide Landlord with written notice thereof, together with copies of any such applicable licenses and permits required for such Roof Property, the plans and/or specifications for the Roof Property, and a certification from Tenant's structural engineer (which structural engineer shall either be Landlord's structural engineer or another structural engineer reasonably approved by Landlord) that the Roof Property shall be properly affixed, will not exceed the load capacity and that the Roof Property will not impact the structural integrity of the Roof. Tenant shall not place any permanent installation on the Roof. If applicable, prior to the commencement of installation or placement of any Roof Property, Tenant shall obtain a certificate of no effect from the Commission for such Roof Property.

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(c)(i) Prior to Tenant's use of the Roof entailing people gathering or congregating, including, without limitation, holding dinner or cocktail parties (but without limiting Tenant's obligation to perform any other work required in order to comply with Requirements with respect to any other use of the Roof in accordance with the provisions of this <u>Section</u> <u>8</u>), Tenant shall, in a good and workmanlike manner and at Tenant's sole cost and expense, perform and diligently complete the Roof Improvements (as defined below) in accordance with all applicable Requirements and the terms of the Lease, including, without limitation, Article 5. Tenant shall prepare a final plan or final set of plans and specifications (such final plan or final set of plans and specifications, as the same may be modified and/or amended, as the case may be, are hereinafter called the "<u>Roof Improvement Final Plan</u>"), which Roof Improvement Final Plan shall contain complete information and dimensions necessary for the Roof Improvements and for the engineering in connection therewith, which Roof Improvement Final Plan shall be subject to Landlord's reasonable approval. Prior to the commencement of the Roof Improvements, Tenant shall obtain a certificate of no effect from the Commission for any railing to be installed on the Roof or the Commission's approval of a railing or other barrier. The Roof Improvements shall be performed by a contractor reasonably approved by Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "<u>Roof Improvements</u>" means the work necessary to make the Roof compliant with all Requirements necessary for Tenant's use of the Roof for any use entailing people gathering or congregating, including, without limitation, holding dinner or cocktail parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The rights granted under this <u>Section</u> <u>8</u> are personal to the Tenant named in this Amendment and a Successor Tenant thereto (collectively, "<u>Named Tenant</u>") and the Roof shall not be used by third parties other than invitees of Named Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Tenant acknowledges that Landlord has made no representation or warranty as to whether Tenant's use of the Roof as contemplated hereunder is permitted under applicable Requirements and if Tenant is not permitted to use the Roof for any reason whatsoever Landlord shall not have liability to Tenant therefor. Further, Landlord shall have no liability to Tenant relating to Tenant's use of the Roof as contemplated hereunder. The rights granted to Tenant to use the Roof hereunder are given in connection with, and as part of the rights created under, the Lease and are not separately transferable or assignable, and the rights granted to Tenant under this <u>Section</u> <u>8</u> shall terminate upon the expiration or sooner termination of the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Roxy Suite</u>. (a) From and after the date that Tenant completes the Setback Improvements (as defined below) in accordance with <u>Section</u> <u>9(b)</u> below, subject to any conditions and restrictions set forth in this <u>Section</u> <u>9</u>, Tenant may use the setback/veranda outside of the Studio Apartment (the "<u>Setback</u>") for any lawful use, such as, by way of example only, the installation of banners and other signage, sponsorship opportunities, the filming of commercials or photo shoots, broadcast activities, the installation of Christmas trees and other seasonal decorations, the installation of dance floors and temporary platforms, live music or other performances, and cocktail or dinner parties. The use and manner of use of the Setback shall be consistent with the character of the Building as a first class office building in midtown Manhattan and comparable terrace space in a first class office building in midtown Manhattan. Tenant's use of the Setback shall be in compliance with the Restrictions (if applicable), reasonable rules and regulations promulgated by Landlord from time to time, and all applicable Requirements

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(including with respect to occupancy and the serving, sale and/or consumption of alcohol), and Tenant, at its cost (including the payment of any taxes in connection therewith), shall obtain and maintain all required licenses and permits from Governmental Authorities (including, without limitation, the Commission) for such use(s), and shall comply with any noise, safety and other requirements and limitations contained in such licenses and permits. Landlord shall reasonably cooperate, to the extent necessary and at Tenant's sole cost, in assisting Tenant in obtaining any such licenses and permits. If Tenant desires to use the Setback to project amplified sound, Tenant shall coordinate such use with Landlord so as to enable Landlord to determine (in Landlord's sole discretion) that such use does not disturb any other retailers or office users in the Center or events previously scheduled at the Center, and in no event shall amplified sound emanate from the Setback during Business Hours without Landlord consent, which consent may be withheld in Landlord's sole discretion. Tenant, at its cost, shall (i) take all necessary precautions to ensure that such events are conducted in a safe and secure manner, protective of the Setback, participants and pedestrians, taking into account the nature of the event and the Setback Property (as defined below), including, without limitation, all precautions and safeguards, if any, reasonably required by Landlord and Landlord's insurer, including, without limitation, requiring one fire guard per 100 people to be on duty at the event and requiring Tenant's Emergency Action Plan Director and Fire Safety Director to be on duty in the Building during the event, (ii) maintain the Setback, including, without limitation, any landscaping installed by Tenant thereon (which landscaping shall be subject to Landlord's reasonable approval), clean the Setback and provide security and any other services required in connection with Tenant's use thereof, (iii) reimburse Landlord for any damage caused to the Setback or other parts of the Building as a result of Tenant's use of the Setback and (iv) maintain insurance with respect to Tenant's usage of the Setback in accordance with Tenant's obligations under Article 13 of the Lease as if the Setback were part of the Premises during the period of Tenant's usage thereof. Tenant's use of the Setback (including, without limitation, any Setback Improvements consisting of lighting or projection equipment) shall not disturb other tenants or occupants of the Center. All of Tenant's obligations under the Lease shall apply to Tenant's use of the Setback, including provisions relating to Requirements, insurance, Alterations, indemnity, repairs and maintenance (provided, however, that Tenant's repair and maintenance obligations with respect to the Setback shall be limited to repairs and maintenance necessitated by, or otherwise arising from, any use of the Setback, and any other act or omission of, any person invited by Tenant to use the Setback), as if the Setback were part of the Premises. Tenant shall not permit the Setback to be occupied by more than 74 persons at one time, unless Tenant obtains a public assembly permit. Tenant may not host events (but may set up before and clean after events) on the Setback between the hours of 1:00 a.m. and 7:30 a.m., without Landlord's approval, which may be withheld in Landlord's sole discretion. In connection with Tenant's use of the Setback, Tenant may install lighting, projection equipment, decorations, furnishings, audio equipment, other Tenant's Property and other temporary installations (the "<u>Setback Property</u>"), in accordance with the provisions and restrictions set forth in this <u>Section</u> <u>9</u> and the provisions of the Lease and subject to the further condition that the Setback Property be secured so as to minimize any risk, in case of a windstorm or otherwise, of any property moving and causing injury or damage to persons or property. The Setback Property shall not exceed the height of the parapet wall of the Setback or be visible from the street, unless the Setback Property is required to exceed such height restriction to comply with Requirements, including the requirements of the Commission. All Setback Property shall be removed by Tenant promptly after the applicable event for which it is used and in any event prior to the Expiration Date. Tenant shall not make any Alterations to the

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Setback, except for the Setback Improvements, without Landlord's prior written approval, which may be withheld or conditioned in Landlord's sole discretion. If Tenant shall fail to cease use of the Setback in violation of this <u>Section</u> <u>9</u> within 48 hours after Landlord shall have given Tenant notice that Tenant's use of the Setback is in violation of this <u>Section</u> <u>9</u> and such failure occurs more than once within any consecutive twelve month period, or if Landlord shall give more than two such notices in any consecutive six month period, Landlord shall have the right to immediately revoke Tenant's right to use the Setback pursuant to this <u>Section</u> <u>9</u>.

(b)(i) Prior to Tenant's use of the Setback, Tenant shall, in a good and workmanlike manner and at Tenant's sole cost and expense, perform and diligently complete the Setback Improvements in accordance with all applicable Requirements and the terms of the Lease, including, without limitation, Article 5. Tenant shall prepare a final plan or final set of plans and specifications (such final plan or final set of plans and specifications, as the same may be modified and/or amended, as the case may be, are hereinafter called the "<u>Setback Improvement Final Plan</u>"), which Setback Improvement Final Plan shall contain complete information and dimensions necessary for Setback's Improvements and for the engineering in connection therewith, which Setback Improvement Final Plan shall be subject to Landlord's reasonable approval. Prior to the commencement of the Setback Improvements, Tenant shall obtain a certificate of no effect from the Commission for any railing to be installed on the Setback or the Commission's approval of a railing or other barrier. The Setback Improvements shall be performed by a contractor reasonably approved by Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "<u>Setback Improvements</u>" means the work necessary to make the Setback compliant with all Requirements necessary for Tenant's use of the Setback.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The rights granted under this <u>Section</u> <u>9</u> are personal to Named Tenant and the Setback shall not be used by third parties other than invitees of Named Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Tenant acknowledges that Landlord has made no representation or warranty as to whether Tenant's use of the Setback as contemplated hereunder is permitted under applicable Requirements and if Tenant is not permitted to use the Setback for any reason whatsoever Landlord shall not have liability to Tenant therefor. Further, Landlord shall have no liability to Tenant relating to Tenant's use of the Setback as contemplated hereunder. The rights granted to Tenant to use the Setback hereunder are given in connection with, and as part of the rights created under, the Lease and are not separately transferable or assignable, and the rights granted to Tenant under this <u>Section</u> <u>9</u> shall terminate upon the expiration or sooner termination of the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Additional Access</u>. From and after the date of this Amendment, subject to Landlord's approval in each instance, in Landlord's reasonable discretion, acting in good faith, Tenant shall have the non-exclusive right to access and use the tunnel connecting the Grand Lounge and Rockefeller Center for ingress and egress from the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Local Law 97.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Definitions</u>. (i) "<u>Emissions Law</u>" means Requirements relating to carbon or other environmental emissions, releases, discharges or the like (including,

------

without limitation, 'building emissions' as defined under Local Law 97) (collectively, "<u>Emissions"</u>) (including, without limitation, Local Law 97 of the Local Laws of the City of New York for the year 2019), and any amendment, modification, supplement or replacement thereof, and all rules and regulations promulgated pursuant thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "<u>Emissions Charges</u>" means (i) all costs, expenses, fines, penalties or other charges payable by Landlord from time to time under the Emissions Law with respect to the Building and (ii) any amounts paid to purchase renewable energy credits and/or "greenhouse gas offsets" in order to reduce the amounts that would otherwise be payable under <u>clause (i)</u> during such period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "<u>Tenant's Emissions Charges</u>" means, for any period, the Emissions Charges due, if any, with respect to the Emissions emitted from the Premises during the period in question by virtue of Tenant's use of utilities. The determination of Tenant's Emissions Charges shall be made by Landlord using its reasonable judgment and, to the extent feasible, using data obtained from meters or submeters servicing the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For each calendar year during the Extension Term (pro-rated for any portion of a calendar year that occurs during the Extension Term), Tenant shall pay to Landlord, within 30 days after written demand (each such demand, an "<u>Emissions Invoice</u>"), in accordance with the provisions of this <u>Section</u> <u>11</u>, Tenant's Emissions Charges for such calendar year (the "<u>Tenant Emissions Payment</u>"). All Emissions Invoices shall be accompanied by reasonably sufficient documentation as to the allocation being made and how the same was determined by Landlord. Tenant may contest an Emissions Invoice within 120 days of receipt thereof and may have a qualified representative inspect Landlord's books and records with respect thereto, subject to entering into a customary and commercially reasonable confidentiality agreement. If Landlord and Tenant cannot resolve such dispute within 30 days after the completion of such inspection, then such dispute shall be resolved by expedited arbitration pursuant to the rules of the American Arbitration Association.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For the avoidance of doubt, in no event shall Tenant be responsible to pay, or to contribute to the cost of, any capital improvements made by Landlord to the Building or the Center to comply with any Emissions Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The provisions of this <u>Section</u> <u>11</u> shall survive the expiration or earlier termination of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Lease and Guaranty Modifications</u>. As of the date hereof,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Section 16.5(a)(B)(ii) of the Lease is restated to read as follows: "the successor to Tenant or the transferee following such Transfer of Control, as applicable (either such successor or transferee being hereinafter referred to as the "<u>Successor Tenant</u>") has a net worth computed in accordance with generally accepted accounting principles consistently applied ("<u>Net Worth</u>") of not less than $325,000,000.00 and a cash flow on an annualized basis computed in accordance with generally accepted accounting principles consistently applied ("<u>Cash Flow</u>") of not less than $80,000,000.00".

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Section 19.1(l) of the Lease is restated to read as follows: "(l) if the Guarantor (i) fails to maintain a Net Worth of at least $985,000,000.00 and (ii) fails to deliver to Landlord the Letter of Credit (as defined in the Guaranty) or cash in the amount and within the time period set forth in the Guaranty."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The first sentence of Section 2(a) of the Guaranty is restated to read as follows: "Guarantor agrees to maintain a Net Worth of at least $985,000,000.00." The reference to "Fifty Million Dollars ($50,000,000)" in Section 1(b)(a)(i) of the Guaranty is deleted and replaced with "Sixty Million Dollars ($60,000,000.00)". The reference to "$39,000,000" in Section 2(b)(1) of the Guaranty is deleted and replaced with "$60,000,000.00". The reference to "$500,000,000" in Section 2(b)(2) of the Guaranty is deleted and replaced with "$615,000,000.00". The references to "$50,000,000" in Section 2(b)(2) of the Guaranty are deleted and replaced with "$60,000,000.00". All references in the Guaranty to "the Guaranty" or "this Guaranty" shall hereafter be deemed to refer to the Guaranty as amended by this <u>Section</u> <u>11(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary contained in Section 39.10 of the Lease, (i) the minimum required number of Actual Performances in each calendar year commencing with 2022 shall be reduced from 280 to 250**,** and the minimum required number of Theater Use Days in each calendar year commencing with 2022 shall be reduced from 250 to 160 and (ii) in lieu of three or more Performance Failures constituting a default under the Lease which shall not be subject to cure, the third Performance Failure shall result in Tenant being obligated to pay to Landlord as Additional Rent [\*\*\*\*\*] and each subsequent Performance Failure shall result in Tenant being obligated to pay to Landlord as Additional Rent [\*\*\*\*\*], in each case within 10 days after written demand therefor**.** For the avoidance of doubt, (x) Tenant's obligations to meet such Actual Performances and Theater Performance Days requirements shall be excused to the extent that Tenant is prevented from doing so due to Unavoidable Delay affecting Tenant, including with respect to calendar years 2020 and 2021 and (y) Landlord acknowledges that, due to COVID-19, no Performance Failure has occurred for calendar year 2020, no Performance Failure shall occur for calendar year 2021 and calendar years 2020 and 2021 shall be disregarded for purposes of the three (3) calendar year look back described in Section 39.10**.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything to the contrary contained in Article 27 of the Lease, notices to Tenant shall be addressed as follows:

Radio City Productions LLC

c/o MSG Entertainment Group, LLC

Two Penn Plaza

New York, NY 10121

Attention: EVP, Venue Management

with a copy to:

Radio City Productions LLC

c/o MSG Entertainment Group, LLC

Two Penn Plaza

New York, NY 10121

Attention: General Counsel

Email: legalnotices@msg.com

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Article 40 of the Original Lease shall be deleted in its entirety and shall be of no further force or effect. The 1270 Space shall be used and occupied only for storage and back office functions in connection with Tenant's use of the Music Hall.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Exhibit D-1 of the Original Lease is restated in its entirety as follows: "Landlord shall provide to Tenant, without charge, chilled water from the HVAC plant serving the Center (the "<u>Central Plant</u>") to the Music Hall to be utilized by Tenant. Tenant shall maintain in good working order all heat exchangers and pumps associated with the operation and distribution of chilled water to 1270 Avenue of the Americas and the Music Hall, year round, without charge to Landlord. Tenant, at Tenant's expense, shall enter into an annual maintenance contract reasonably satisfactory to Landlord with an HVAC contractor from a list of approved HVAC contractors to be provided by Landlord at Tenant's request, and Tenant shall pay costs in connection with such contract."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) All references to the Refrigeration Plant in the Lease are hereby deleted and of no further force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Non-Disturbance Agreement</u>. Within 60 days after execution of this Amendment, Landlord shall obtain from the Mortgagee existing on the date of this Amendment a Non-Disturbance Agreement in the form heretofore agreed by Tenant and Mortgagee. If the Music Hall becomes subject to a condominium, then Landlord shall cause the board of managers of such condominium to enter into a commercially reasonable Non-Disturbance Agreement with Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>30 Rockefeller Plaza Windows</u>. On or prior to the date of this Amendment, Tenant shall have no further right to use the window boxes in the building known as 30 Rockefeller Plaza, New York, New York. Promptly following the date of this Amendment, Tenant shall remove the displays from such window boxes and repair any damage to such window boxes and 30 Rockefeller Plaza resulting therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Building Canopies</u>. Tenant shall have the right to install temporary canopies (each, a "<u>Canopy Installation</u>") on the Building outside of the Music Hall on each of 50th and 51st Street. Any such Canopy Installation shall be subject to all applicable Requirements and Tenant shall obtain all required licenses and permits in connection therewith; <u>provided</u>, that such Canopy Installation does not adversely affect ingress and egress to adjacent tenant spaces or pedestrian traffic. The appearance (including, without limitation, material, color, size, identification signage and branding), location and method of installation of the Canopies shall be subject to Landlord's approval, which may be withheld in Landlord's sole approval and the applicable provisions of the Lease, including, without limitation, Article 5. The display of any Sponsorship on such canopies shall be subject to Landlord's approval. Prior to the commencement of any Canopy Installation, Tenant must obtain a certificate of no effect from the Commission for any canopy to be installed on the Building. Any Canopy Installations shall be performed by a contractor reasonably approved by Landlord.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Brokers</u>. Each party represents to the other that such party has dealt with no broker in connection with this Amendment (other than Tishman Speyer Properties L.P. (representing Landlord) and Newmark Knight Frank (representing Tenant) (collectively, the "<u>Brokers</u>")), and each party shall indemnify and hold the other harmless from and against all loss, cost, liability and expense (including, without limitation, reasonable attorneys' fees and disbursements) arising out of any claim for a commission or other compensation by any broker (other than the Brokers with respect to Tenant's indemnity to Landlord) who alleges that it has dealt with the indemnifying party in connection with this Amendment. Landlord shall pay any brokerage commission or other compensation that may be due to the Brokers pursuant to a separate agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Representations and Warranties</u>. (a) Tenant represents and warrants to Landlord that, as of the date hereof, (i) the Lease is in full force and effect and has not been modified except pursuant to this Amendment; (ii) to the best of Tenant's knowledge, there are no defaults existing under the Lease and Tenant has no offsets, defenses, claims or counterclaims to the payment of Rent or other sums, or the performance of any of Tenant's other obligations under the Lease; (iii) to the best of Tenant's knowledge, there exist no valid abatements, causes of action, counterclaims, disputes, defenses, offsets, credits, deductions, or claims against the enforcement of any of the terms and conditions of the Lease; (iv) the interest of the tenant under the Lease has not been assigned, transferred, pledged, mortgaged or otherwise encumbered and Tenant has not sublet all or any part of the Premises; and (v) this Amendment has been duly authorized, executed and delivered by Tenant and constitutes the legal, valid and binding obligation of Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Landlord represents and warrants to Tenant that, as of the date hereof, (i) the Lease is in full force and effect and has not been modified except pursuant to this Amendment; (ii) to the best of Landlord's knowledge, there are no defaults existing under the Lease; (iii) to the best of Landlord's knowledge, there exist no valid causes of action, disputes or claims against the enforcement of any of the terms and conditions of the Lease; and (iv) this Amendment has been duly authorized, executed and delivered by Landlord and constitutes the legal, valid and binding obligation of Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Embargoed Person</u>. Tenant represents that as of the date of this Amendment, and Tenant covenants that throughout the term of the Lease: (a) Tenant is not, and shall not be, an Embargoed Person, (b) none of the funds or other assets of Tenant are or shall constitute property of, or are or shall be beneficially owned, directly or indirectly, by any Embargoed Person; (c) no Embargoed Person shall have any interest of any nature whatsoever in Tenant, with the result that the investment in Tenant (whether directly or indirectly) is or would be blocked or prohibited by law or that the Lease and performance of the obligations thereunder are or would be blocked or in violation of law and (d) none of the funds of Tenant are, or shall knowingly be derived from, any activity with the result that the investment in Tenant (whether directly or indirectly) is or would be blocked or in violation of law or that the Lease and performance of the obligations thereunder are or would be in violation of law. "<u>Embargoed Person</u>" means a person, entity or government (i) identified on the Specially Designated Nationals and Blocked Persons List maintained by the United States Treasury Department Office of Foreign Assets Control and/or any similar list maintained pursuant to any authorizing statute, executive order or regulation and/or (ii) subject to trade restrictions under United States law, including, without limitation, the International Emergency Economic Powers Act, 50 U.S.C. § 1701 et seq.,

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The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Orders or regulations promulgated under any such laws, with the result that the investment in Tenant (whether directly or indirectly), is or would be prohibited by law or the Lease is or would be in violation of law and/or (iii) subject to blocking, sanction or reporting under the USA Patriot Act, Executive Order 13224 and/or Title 31 of the U.S. Code of Federal Regulations, in each case as amended from time to time; and any other law or Executive Order or regulation through which the U.S. Department of the Treasury has or may come to have sanction authority. If any representation made by Tenant pursuant to this <u>Section</u> <u>18</u> shall become untrue Tenant shall within 10 days notify Landlord thereof, which notice shall set forth in reasonable detail the reasons why such representation has become untrue and shall be accompanied by any relevant notices from, or correspondence with, the applicable governmental agency or agencies. Any superior lessor under any ground lease shall be a third party beneficiary of Tenant's representations set forth in this <u>Section</u> <u>18</u>. Notwithstanding the foregoing, the representations and agreements contained in this <u>Section</u> <u>18</u> shall be inapplicable to any shareholder of Tenant's publicly-traded parent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>No Other Changes</u>. Except as expressly set forth in this Amendment, the Lease shall remain unmodified and in full force and effect, and the Lease as modified herein is ratified and confirmed. All references in the Lease to "this Lease" shall hereafter be deemed to refer to the Lease as amended by this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Miscellaneous</u>. This Amendment contains the entire agreement of the parties with respect to the subject matter hereof and all prior negotiations, understandings or agreements between the parties with respect to the subject matter hereof are merged herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Counterparts</u>. This Amendment may be executed in counterparts each of which shall be an original and all of which counterparts taken together shall constitute one and the same agreement. An executed counterpart delivered by ".pdf", facsimile or email shall be binding upon the parties.

[NO FURTHER TEXT ON THIS PAGE; SIGNATURES ON FOLLOWING PAGE]

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IN WITNESS WHEREOF, Landlord and Tenant have duly executed this Amendment as of the day and year first above written.

---

| | | |
|:---|:---|:---|
| <u>LANDLORD</u>: | <u>LANDLORD</u>: | <u>LANDLORD</u>: |
| **RCPI LANDMARK PROPERTIES, L.L.C.**, | **RCPI LANDMARK PROPERTIES, L.L.C.**, | **RCPI LANDMARK PROPERTIES, L.L.C.**, |
| a Delaware limited liability company | a Delaware limited liability company | a Delaware limited liability company |
| By: | /s/ Paul A. Galiano | /s/ Paul A. Galiano |
|  | Name: | Paul A. Galiano |
|  | Title: | Senior Managing Director |
| <u>TENANT</u>: | <u>TENANT</u>: | <u>TENANT</u>: |
| **RADIO CITY PRODUCTIONS LLC**, | **RADIO CITY PRODUCTIONS LLC**, | **RADIO CITY PRODUCTIONS LLC**, |
| a Delaware limited liability company | a Delaware limited liability company | a Delaware limited liability company |
| By: | /s/ James L. Dolan | /s/ James L. Dolan |
|  | Name: | James L. Dolan |
|  | Title: | Executive Chairman and CEO |

---

Guarantor hereby ratifies and confirms all of its obligations under the Guaranty and acknowledges and agrees that the Guaranty as modified by <u>Section</u> <u>12(c)</u> above remains in full force and effect and covers the Lease as amended by this Amendment.

---

| | | |
|:---|:---|:---|
| **MSG ENTERTAINMENT GROUP, LLC,** | **MSG ENTERTAINMENT GROUP, LLC,** | **MSG ENTERTAINMENT GROUP, LLC,** |
| a Delaware limited liability company | a Delaware limited liability company | a Delaware limited liability company |
| By: | /s/ James L. Dolan | /s/ James L. Dolan |
|  | Name: | James L. Dolan |
|  | Title: | Executive Chairman and CEO |

---

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**<u>EXHIBIT A</u>**

Tenant's Base Building Work

---

| | |
|:---|:---|
| **Tenant's Base Building Work:** | **Estimated Cost:** |
| 1. Repairing, replacing or enhancing the existing heat exchange units and demolishing the Refrigeration Plant | [\*\*\*\*\*] |
| 2. Hot water heater replacement | [\*\*\*\*\*] |
| 3. Roof repairs – main roof and setbacks | [\*\*\*\*\*] |
| 4. Modernization of elevator cars – elevators #5, 6, 7, 8 (four cars in total), including destination dispatch upgrades and refurbishment of cabs. | [\*\*\*\*\*] |
| 5. Repair 51st Street Loading Ramp | [\*\*\*\*\*] |
| 6. Marquee flooring repairs | [\*\*\*\*\*] |
| 7. BMS (Building Management System) upgrade | [\*\*\*\*\*] |
| 8. Replace certain grand lounge murals and installation of barrier | [\*\*\*\*\*] |
| 9. Window repairs - strip window frames of paint, remove existing window treatment, cut away window (from the interior) to the frame, install 220 new windows (212 external windows, 8 internal windows) | [\*\*\*\*\*] |
|  | <u>**Total**</u>: [\*\*\*\*\*] |

---

------

**<u>EXHIBIT B</u>**

Tenant's Improvements

---

| | |
|:---|:---|
| **Tenant's Improvements:** | **Estimated Cost:** |
| 1. Lightbox bunker removal and restoration of surrounding floor – including up to 20 new seats in place of the lightbox bunker. | [\*\*\*\*\*] |
| 2. LED lighting for auditorium – both LED lighting for auditorium and aisle lighting replacement. The scope includes replacing end lights only and no wiring. | [\*\*\*\*\*] |
| 3. Carpeting replacement | [\*\*\*\*\*] |
| 4. Wall fabric replacement | [\*\*\*\*\*] |
| 5. Drapery at foyer replacement | [\*\*\*\*\*] |
| 6. Organ upgrade | [\*\*\*\*\*] |
|  | <u>**Total**</u>: [\*\*\*\*\*] |

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## Exhibit 10.24

**Exhibit 10.24** 

**RCPI Landmark Properties, L.L.C.** 

**c/o Tishman Speyer** 

**45 Rockefeller Plaza** 

**New York, New York 10111** 

February 24, 2021

Radio City Productions LLC

2 Pennsylvania Plaza

New York, New York 10121

---

| | |
|:---|:---|
| Re: | Lease dated as of December 4, 1997 (as amended, the "<u>Lease</u>") presently between RCPI Landmark Properties, L.L.C. ("<u>Landlord</u>") and Radio City Productions LLC ("<u>Tenant</u>") for premises known as The Radio City Music Hall and certain other ancillary and retail space  |

---

Ladies and Gentlemen:

Pursuant to Article 36 of the Lease, Tenant has an option to renew the term of the Lease by notifying Landlord of Tenant's exercise of such option by February 28, 2021. Landlord and Tenant are engaged in discussions with respect to the possible renewal of the term of the Lease.

Landlord and Tenant, intending to be legally bound, agree as follows:

1. The date by which Tenant may exercise the option to renew the term of the Lease is extended until March 31, 2021.

2. Except as so amended, the Lease is ratified and confirmed and remains in full force and effect.

If the foregoing accurately reflects our agreement, kindly so indicate by signing below and returning this letter agreement by .pdf transmittal, which shall be binding on the parties.

Very truly yours,

---

| | |
|:---|:---|
| RCPI LANDMARK PROPERTIES, L.L.C. | RCPI LANDMARK PROPERTIES, L.L.C. |
| By: | /s/ Paul A. Galiano |
| Name: Paul. A. Galiano | Name: Paul. A. Galiano |
| Title: Senior Managing Director | Title: Senior Managing Director |

---

AGREED:

---

| | |
|:---|:---|
| RADIO CITY PRODUCTIONS LLC | RADIO CITY PRODUCTIONS LLC |
| By: | /s/ Scott Packman |
| Name: Scott Packman | Name: Scott Packman |
| Title: General Counsel and | Title: General Counsel and |
| Executive Vice President | Executive Vice President |

---

## Exhibit 10.25

**Exhibit 10.25** 

**RCPI Landmark Properties, L.L.C.** 

**c/o Tishman Speyer** 

**45 Rockefeller Plaza** 

**New York, New York 10111** 

March 25, 2021

Radio City Productions LLC

2 Pennsylvania Plaza

New York, New York 10121

---

| | |
|:---|:---|
| Re: | Lease dated as of December 4, 1997 (as amended, the "<u>Lease</u>") presently between RCPI Landmark Properties, L.L.C. ("<u>Landlord</u>") and Radio City Productions LLC ("<u>Tenant</u>") for premises known as The Radio City Music Hall and certain other ancillary and retail space  |

---

Ladies and Gentlemen:

Pursuant to Article 36 of the Lease, as modified by letter agreement dated February 24, 2021, Tenant has an option to renew the term of the Lease by notifying Landlord of Tenant's exercise of such option by March 31, 2021. Landlord and Tenant are engaged in discussions with respect to the possible renewal of the term of the Lease.

Landlord and Tenant, intending to be legally bound, agree as follows:

1. The date by which Tenant may exercise the option to renew the term of the Lease is extended until April 30, 2021.

2. Except as so amended, the Lease is ratified and confirmed and remains in full force and effect.

If the foregoing accurately reflects our agreement, kindly so indicate by signing below and returning this letter agreement by .pdf transmittal, which shall be binding on the parties.

Very truly yours,

---

| | |
|:---|:---|
| RCPI LANDMARK PROPERTIES, L.L.C. | RCPI LANDMARK PROPERTIES, L.L.C. |
| By: | /s/ Paul A. Galiano |
| Name: Paul. A. Galiano | Name: Paul. A. Galiano |
| Title: Senior Managing Director | Title: Senior Managing Director |

---

AGREED:

---

| | |
|:---|:---|
| RADIO CITY PRODUCTIONS LLC | RADIO CITY PRODUCTIONS LLC |
| By: | /s/ Marc Schoenfeld |
| Name: Marc Schoenfeld | Name: Marc Schoenfeld |
| Title: SVP & Assistant Secretary | Title: SVP & Assistant Secretary |

---

## Exhibit 10.26

**Exhibit 10.26** 

**RCPI Landmark Properties, L.L.C.** 

**c/o Tishman Speyer** 

**45 Rockefeller Plaza** 

**New York, New York 10111** 

April 29, 2021

Radio City Productions LLC

2 Pennsylvania Plaza

New York, New York 10121

---

| | |
|:---|:---|
| Re: | Lease dated as of December 4, 1997 (as amended, the "<u>Lease</u>") presently between RCPI Landmark Properties, L.L.C. ("<u>Landlord</u>") and Radio City Productions LLC ("<u>Tenant</u>") for premises known as The Radio City Music Hall and certain other ancillary and retail space  |

---

Ladies and Gentlemen:

Pursuant to Article 36 of the Lease, as modified by letter agreements dated February 24, 2021 and March 25, 2021, Tenant has an option to renew the term of the Lease by notifying Landlord of Tenant's exercise of such option by April 30, 2021. Landlord and Tenant are engaged in discussions with respect to the possible renewal of the term of the Lease.

Landlord and Tenant, intending to be legally bound, agree as follows:

1. The date by which Tenant may exercise the option to renew the term of the Lease is extended until June 30, 2021.

2. Except as so amended, the Lease is ratified and confirmed and remains in full force and effect.

If the foregoing accurately reflects our agreement, kindly so indicate by signing below and returning this letter agreement by .pdf transmittal, which shall be binding on the parties.

Very truly yours,

---

| | |
|:---|:---|
| RCPI LANDMARK PROPERTIES, L.L.C. | RCPI LANDMARK PROPERTIES, L.L.C. |
| By: | /s/ Paul A. Galiano |
| Name: Paul. A. Galiano | Name: Paul. A. Galiano |
| Title: Senior Managing Director | Title: Senior Managing Director |

---

AGREED:

---

| | |
|:---|:---|
| RADIO CITY PRODUCTIONS LLC | RADIO CITY PRODUCTIONS LLC |
| By: | /s/ Marc Schoenfeld |
| Name: Marc Schoenfeld | Name: Marc Schoenfeld |
| Title: SVP | Title: SVP |

---

## Exhibit 10.27

**Exhibit 10.27** 

**CERTAIN CONFIDENTIAL INFORMATION, IDENTIFIED BY BRACKETED ASTERISKS "[\*\*\*\*\*]", HAS BEEN OMITTED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

<u>GUARANTY OF LEASE</u> 

GUARANTY OF LEASE (this "<u>Guaranty</u>") dated as of the 28th day of September, 2015, by MSG SPORTS & ENTERTAINMENT, LLC, a Delaware limited liability company, with an address at 2 Penn Plaza, New York, New York "<u>Guarantor</u>"), to RCPI LANDMARK PROPERTIES, L.L.C., a Delaware limited liability company having an address at c/o Tishman Speyer, 45 Rockefeller Plaza, New York, New York 10111 ("<u>Landlord</u>").

<u>W</u> <u>I</u> <u>T</u> <u>N</u> <u>E</u> <u>S</u> <u>S</u> <u>E</u> <u>T</u> <u>H</u>:

WHEREAS, RCPI Trust, predecessor-in-interest to Landlord, and Radio City Productions LLC ("<u>Tenant</u>") entered into an agreement of lease, dated as of December 4, 1997 (such lease, as modified by First Amendment to Lease dated as of February 19, 1999, Second Amendment to Lease dated as of November 6, 2002, Third Amendment to Lease dated as of August 14, 2008 and Fourth Amendment to Lease dated as of January 24, 2011, together with any modifications, amendments, extensions and renewals hereafter, being collectively called the "<u>Lease</u>"), covering space consisting of the Radio City Music Hall and portions of buildings commonly known as 1270 Avenue of the Americas, New York, New York and 50 Rockefeller Plaza, New York, New York (the "<u>Premises</u>");

WHEREAS, unless otherwise provided herein all terms not defined herein shall have the meanings given in the Lease;

WHEREAS, in connection with the Lease, MSG Holdings, L.P., (the "<u>Original Guarantor</u>"), provided to Landlord the Guaranty of Lease dated as of December 4, 1997, as subsequently restated in its entirety pursuant to the Restated Guaranty of Lease dated as of August 14, 2008 and further amended pursuant to the First Amendment to Restated Guaranty dated as of March 22, 2010 and the Second Amendment to Restated Guaranty dated as of January, 2011 (collectively, the "<u>Original Guaranty</u>");

WHEREAS, on the date hereof, all of Original Guarantor's ownership interests in Tenant have been transferred to Guarantor; and

WHEREAS, by reason of such transfer, Article 35 of the Lease requires Guarantor to execute and deliver to Landlord a guaranty, in substantially the same form as the Original Guaranty, of (1) the performance by Tenant of all of the terms, covenants, conditions, obligations and agreements contained in the Lease on the part of Tenant to be performed thereunder, including, without limitation, the prompt payment when due of all Fixed Rent, Additional Rent, and all other sums required to be paid by Tenant under the Lease subject only to the limitation on liability set forth in paragraph l(b) below, and (2) any liability of Tenant arising out of a breach of any warranty or representation of Tenant contained in the Surrender Agreement (as hereinafter defined) (the liabilities and obligations contained in clauses (1) and (2) of this recital are collectively referred to herein as the "<u>Covenants</u>");

NOW, THEREFORE, in satisfaction of the aforesaid requirement in Section 35 of the Lease, Guarantor agrees with Landlord as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. (a) Guarantor unconditionally guarantees to Landlord the prompt, full and faithful payment, performance and observance of all Covenants; and Guarantor unconditionally covenants to Landlord that if default or breach shall at any time be made by Tenant in the Covenants, Guarantor shall well and truly pay or perform (or cause to be paid or performed) the Covenants and pay all damages and other amounts stipulated in the Lease with respect to the non-performance of the Covenants, or any of them. Guarantor shall pay to Landlord on demand all expenses (including, without limitation, reasonable attorneys' fees and disbursements) of, or incidental to, or relating to the enforcement or protection of Landlord's rights hereunder or Landlord's rights under the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding <u>Section 1(a)</u> above, Guarantor's liability under this Guaranty shall not exceed the lesser of (a) the sum of (i) [\*\*\*\*\*] (ii) an amount equal to all Rent and Additional Rent payable under the Lease for the period commencing on (x) the date on which Tenant defaults in the payment of Rent due under the Lease or on any of the other Covenants which default on Tenant's part remains uncured following the giving of any required notice (except that no such notice shall be required to the extent Landlord is stayed from giving such notice by the applicable provisions of the Bankruptcy Code) and the expiration of any applicable grace period

------

so as to become an Event of Default under the Lease (provided, however, that if Tenant cures such Event of Default and Landlord accepts such cure, such default shall no longer be deemed to have become an Event of Default for purposes hereof) and ending on (y) the Surrender Date (as hereafter defined) assuming, for purposes of this computation only, that Landlord did not elect to terminate the Lease by reason of such Event of Default, and (iii) all expenses (including reasonable attorneys' fees and disbursements) of, or incidental to, or relating to the enforcement or protection of Landlord's rights hereunder or (b) the proceeds of a Letter of Credit or cash security posted by Guarantor pursuant to paragraph 2 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. (a) Guarantor covenants and agrees that for the Term of the Lease it shall maintain a Net Worth of not less than [\*\*\*\*\*]. Guarantor represents and warrants to Landlord that Guarantor is 100% owned by MSG Spinco, Inc. ("<u>Spinco</u>"). Guarantor shall deliver or cause to be delivered to Landlord, as soon as available and in no event later than 90 days after the close of each fiscal year either (i) annual consolidated financial statements for Guarantor prepared in accordance with generally accepted accounting principles, which shall be certified by an officer of Guarantor and audited by an independent accounting firm which shall be any one of the so-called "Big Four" accounting firms or any other accounting firm reasonably acceptable to Landlord, or (ii) both (A) annual consolidated financial statements for Spinco prepared in accordance with generally accepted accounting principles, which shall be certified by an officer of Spinco and audited by an independent accounting firm which shall be any one of the so-called "Big Four" accounting firms or any other accounting firm reasonably acceptable to Landlord, and (B) an annual consolidating balance sheet for Spinco prepared in accordance with generally accepted accounting principles, which shall be certified by the Chief Financial Officer of Spinco or a Senior Vice President, Finance of Spinco, and which consolidating balance sheet shall show the assets, liabilities and equity of Guarantor in sufficient detail for Landlord to determine if Guarantor's Net Worth shall fail to meet the Net Worth requirement set forth above. The only effect of the breach of the foregoing covenants shall be that such breach shall constitute an Event of Default under the Lease. Landlord shall have all of its rights against Guarantor by reason of the occurrence of an Event of Default under the Lease, but shall have no independent right of action against Guarantor by reason of the breach of the foregoing covenants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything in Section 2(a) to the contrary, if as of the close of any of Guarantor's fiscal quarters (in the case of clause (i) of Section 2(a)) or Spinco's fiscal quarters (in the case of clause (ii) of Section 2(a)) during the term of the Lease, Guarantor's Net Worth shall fail to meet the requirement set forth in Section 2(a) above (the "<u>Failure</u>"), then within 10 days after the financial statement for such quarter was completed, Guarantor shall notify Landlord of the Failure and within 30 days thereafter, Guarantor shall have the right, at Guarantor's election, either to deposit with Landlord, in lieu of this Guaranty, (1) a "clean", unconditional, irrevocable and transferable letter of credit (the "<u>Letter of Credit</u>") in the amount of [\*\*\*\*\*], and in form reasonably satisfactory to Landlord, issued by and drawn on a bank reasonably satisfactory to Landlord in its sole discretion or which is a member of the New York Clearing House Association, for the benefit of Landlord, for a term of not less than one year, as security for the faithful performance and observance by Tenant of the terms, covenants, conditions and provisions of the Lease; provided that the Letter of Credit shall contain, if commercially obtainable, an "evergreen" provision, providing that the term of such letter of credit shall automatically be extended for successive additional periods of one year but not beyond 45 days after the then Expiration Date unless, not less than 30 days prior to any then pending Expiration Date, the bank issuing such Letter of Credit shall give Landlord written notice of its election not to renew the Letter of Credit at the address provided for in the Lease, and if Guarantor shall not provide a replacement Letter of Credit within 10 days after such notice from the issuing bank, in which event Landlord shall have the right to draw under the Letter of Credit and to retain the proceeds as hereinafter provided or, if such "evergreen provision" is not commercially obtainable, the Letter of Credit shall provide by its terms that it shall not expire prior to 45 days after the then Expiration Date, or (2) cash in the amount of [\*\*\*\*\*] which Landlord shall deposit in a standard interest-bearing security deposit account in a bank located in New York State, provided that if Guarantor's Net Worth is less than [\*\*\*\*\*], Tenant shall only have the right to deposit with Landlord a Letter of Credit in the amount of [\*\*\*\*\*] hereunder. To the extent not prohibited by law, Landlord shall be entitled to receive and retain as an administrative expense an amount equal to interest on the cash security at the rate of 0.1% per annum, which amount Landlord shall have the right to withdraw, at any time and from time to time, as Landlord may determine. The balance of the interest shall be paid to Guarantor annually. Landlord shall not be required to credit Guarantor with any interest for any period during which Landlord does not actually receive interest on the cash security. If an Event of Default or, during the pendency of any bankruptcy or insolvency proceeding brought by or against Tenant, any monetary default shall occur and be continuing, Landlord may apply the cash security or draw under the Letter of Credit and apply the whole or any part of the proceeds thereof toward the payment of any item of rent or additional rent as to which Tenant is in default. If Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of the Lease, the cash security or the Letter of Credit, as the case may be, shall be returned to Guarantor within 45 days after the expiration of the Lease. If Guarantor shall fail to replace a Letter of Credit that the issuing bank is not renewing as aforesaid, Landlord may draw under the Letter of Credit and retain the proceeds thereof as cash security in lieu of the Letter of Credit and apply same as contemplated by this <u>Section 2</u>. It is expressly understood and agreed that the breach of the covenant set forth in <u>Section 2(a)</u> hereof shall not be deemed an Event of Default under the Lease unless Guarantor shall have failed to deliver the cash security or Letter of Credit to Landlord within the time period set forth herein. Upon delivery of the cash security or Letter of Credit, this Guaranty shall be without recourse to Guarantor other than against the Letter of Credit and/or cash delivered under this <u>Section 2</u>.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The liability of Guarantor hereunder shall not be impaired, abated, deferred, diminished, modified, released, terminated or discharged, in whole or in part, or otherwise affected, by any event, condition, occurrence, circumstance, proceeding, action or failure to act, with or without notice to, or the knowledge or consent of, Guarantor, including, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any amendment, modification or extension of the Lease or any Covenant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any extension of time for performance, whether in whole or in part, of any Covenant given prior to or after default thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any exchange, surrender or release, in whole or in part, of any security which may be held by Landlord at any time for or under the Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any other guaranty now or hereafter executed by Guarantor or anyone else;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any waiver of or assertion or enforcement or failure or refusal to assert or enforce, in whole or in part, any Covenant, claim, cause of action, right or remedy which Landlord may, at any time, have under the Lease or with respect to any guaranty or any security which may be held by Landlord at any time for or under the Lease or with respect to Tenant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any act or omission or delay to do any act by Landlord which may in any manner or to any extent vary the risk of Guarantor or which would otherwise operate as a discharge of Guarantor as a matter of law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the release of any other guarantor from liability for the performance or observance of any Covenant, whether by operation of law or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the failure to give Guarantor any notice whatsoever except to the extent required by the Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any right, power or privilege that Landlord may now or hereafter have against any person, entity or collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any assignment conveyance, mortgage, merger or other transfer, voluntary or involuntary (whether by operation of law or otherwise) of all or part of the interest or rights of Landlord under the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) any assignment, conveyance, mortgage, merger or other transfer, voluntary or involuntary (whether by operation of law or otherwise), of all or any part of Tenant's interest in the Lease except to the extent expressly provided in the Lease.

If any agreement between Landlord and Tenant shall extend the time of performance or modify any of the Covenants, Guarantor shall continue to be liable upon this Guaranty according to the tenor of the Lease without regard to such agreement except to the extent Guarantor shall consent in writing to such agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. To charge Guarantor under this Guaranty no demand shall be required, Guarantor hereby expressly waiving any such demand. Landlord shall have the right to enforce this Guaranty without pursuing any right or remedy of Landlord against Tenant or any other party, or any security Landlord may hold, it being intended that immediately upon any breach or default by Tenant in the performance or observance of any Covenant, Guarantor shall be obligated to Landlord as provided in this Guaranty. Landlord may commence any action or proceeding based upon this Guaranty directly against Guarantor without making Tenant or anyone else a party defendant in such action or proceeding. Any one or more successive and/or concurrent actions may be brought hereon against Guarantor either in the same action, if any, brought against Tenant and/or any other party or in separate actions, as often as Landlord, in its sole discretion, may deem advisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. This Guaranty shall be binding upon Guarantor and its successors and permitted assigns, and shall inure to the benefit of and may be enforced by the successors and assigns of Landlord or by any party to whom Landlord's interest in the Lease or any part thereof, including the rents, may be assigned whether by way of mortgage or otherwise. Wherever in this Guaranty reference is made to either Landlord or Tenant, the same shall be deemed to refer also to the then successor or assign of Landlord or Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Guarantor hereby expressly waives and releases (a) notice of the acceptance of this Guaranty and notice of any change in Tenant's financial condition; (b) the right to interpose any substantive or procedural defense of the law of guaranty, indemnification or suretyship, except the defense of prior payment or prior performance by Tenant or that Tenant has no obligation to pay or perform

------

(of the obligations which Guarantor is called upon to pay or perform under this Guaranty); (c) all rights and remedies accorded by applicable law to guarantors or sureties, including without limitation, any extension of time conferred by any law now or hereafter in effect; (d) the right to trial by jury, in any action or proceeding of any kind arising on, under, out of, or by reason of or relating, in any way, to this Guaranty or the interpretation, breach or enforcement thereof; (e) the right to interpose any defense (except as allowed under (b) above), set off or counterclaim of any nature or description in any action or proceeding; and (f) any right or claim of right to cause a marshaling of Tenant's assets or to cause Landlord to proceed against Tenant and/or any collateral held by Landlord at any time or in any particular order (except as expressly provided in <u>Section 3</u> hereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Neither Guarantor's obligation to make payment in accordance with this Guaranty nor any remedy for the enforcement thereof shall be impaired, modified, changed, stayed, released or limited in any manner by any impairment, modification, change, release, limitation or stay of the liability of Tenant or its estate in bankruptcy or any remedy for the enforcement thereof, resulting from the operation of any present or future provision of the Bankruptcy Code of the United States or other statute or from the decision of any court interpreting any of the same, and Guarantor shall be obligated under this Guaranty as if no such impairment, stay, modification, change, release or limitation had occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. As used herein, the term "<u>Surrender Date</u>" shall mean the date upon which all of the following shall have occurred: (i) Tenant shall have surrendered to Landlord vacant possession of the Premises in the condition required under the terms of the Lease, (ii) Landlord shall have received a surrender agreement in the form annexed as <u>Exhibit A</u> (the "<u>Surrender Agreement</u>") duly executed and acknowledged by Tenant and (iii) Landlord shall have received all keys and combinations to the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. This Guaranty and all rights, obligations and liabilities arising hereunder shall be construed according to the laws of the State of New York. Guarantor hereby irrevocably agrees that any legal action, suit or proceeding against Guarantor in connection with this Guaranty or for recognition or enforcement of any judgment rendered in any such action, suit or proceeding may be brought in the United States Courts for the Southern District of New York, or in the courts of the State of New York, as Landlord may elect, and, by execution and delivery of this Lease, Guarantor hereby irrevocably accepts and submits to the venue and non-exclusive jurisdiction of each of the aforesaid courts <u>in</u> <u>persona</u>, generally and unconditionally with respect to any such action, suit, or proceeding for itself and in respect of its property. Guarantor further agrees that final judgment against Guarantor in any action, suit, or proceeding referred to herein shall be conclusive and may be enforced in any other jurisdiction, by suit on the judgment, a certified or exemplified copy of which shall be conclusive evidence of the fact and of the amount of its indebtedness. Guarantor hereby designates Proskauer Rose Goetz & Mendelson as its agent for service of process. Such designation may only be changed by written notice to Landlord designating another law firm having more than 100 lawyers with an office in New York City.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Guarantor hereby waives any and all rights of subrogation (if any) which it may have against Tenant as a result of actions taken or amounts paid in connection with or relating to this Guaranty or to the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Guarantor represents and warrants to Landlord that as of the date hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Guarantor has full power, authority and legal right to execute, deliver, perform and observe this Guaranty, including, without limitation, the payment of all moneys hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The execution, delivery and performance by Guarantor of this Guaranty have been duly authorized by all necessary limited liability company action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Guaranty constitutes the legal, valid and binding obligation of Guarantor, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, and other laws affecting creditors' rights generally, to moratorium laws from time to time in effect and to general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. Guarantor shall not merge or consolidate with any other entity or sell all or substantially all of its assets unless either (a) Guarantor shall be the surviving entity or (b) contemporaneously with such merger or consolidation or sale, the surviving or purchasing entity executes and delivers to Landlord a guaranty, substantially in the form and substance of this Guaranty, together with reasonably satisfactory evidence of the due authorization, execution, delivery, validity, binding effect and enforceability thereof, but whether or not such execution and delivery shall take place the surviving or purchasing entity shall be bound by this Guaranty as if it had so executed and delivered such guaranty.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. If Landlord shall be obligated by reason of any bankruptcy, insolvency or other legal proceeding to pay or repay to Tenant or to Guarantor or to any trustee, receiver or other representative of either of them, any amounts previously paid by Tenant or Guarantor on account of the Covenants or pursuant to this Guaranty, Guarantor shall reimburse Landlord for any such payment or repayment and this Guaranty shall extend to the extent of such payment or repayment made by Landlord, except to the extent, if any, that such payment or repayment is prohibited by law or that such payment or repayment constitutes merely a reimbursement of any overpayment. Landlord shall not be required to litigate or otherwise dispute its obligation or make such payment or repayment if in good faith and on written advice of counsel Landlord believes that such obligation exists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. Landlord and Guarantor shall each, at any time and from time to time, within ten (10) business days following request by the other, execute, acknowledge and deliver to the other a statement certifying that this Guaranty is unmodified and in full force and effect (or if there have been modifications, that the same is in full force and effect as modified and stating such modifications) and that to the best of the certifying party's knowledge, Guarantor is not in default hereunder (or if there is such a default, describing such default in reasonable detail).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. All remedies afforded to Landlord by reason of this Guaranty or the Lease, or otherwise available at law or in equity, are separate and cumulative remedies and no one remedy, whether or not exercised by Landlord, shall be deemed to be in exclusion of any other remedy available to Landlord and shall not limit or prejudice any other legal or equitable remedy which Landlord may have.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. If any term, covenant, condition or provision of this Guaranty or the application thereof to any circumstance or to Guarantor shall be invalid or unenforceable to any extent, the remaining terms, covenants, conditions and provisions of this Guaranty or the application thereof to any circumstances or to Guarantor other than those as to which any term, covenant, condition or provision is held invalid or unenforceable, shall not be affected thereby and each remaining term, covenant, condition and provision of this Guaranty shall be valid and shall be enforceable to the fullest extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. Any notice hereunder shall be in writing and personally delivered or sent by certified or registered mail, return receipt requested to Landlord or Guarantor at their respective addresses hereinabove set forth (to the attention of their respective General Counsel) or such other address designated by Landlord or Guarantor by 10 days' prior notice. Any notice shall be deemed given as of the date of delivery as indicated by affidavit in case of personal delivery or by the return receipt in the case of mailing; and in the event of failure to deliver by reason of changed address of which no notice is given or refusal to accept delivery, as of the date of such failure as indicated by affidavit or return receipt as aforesaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. This Guaranty of Lease shall become effective immediately upon the consummation of the Distribution, as defined in the Draft Information Statement filed as an exhibit to the Registration Statement on Form 10 of MSG Spinco, Inc.

IN WITNESS WHEREOF, Guarantor has executed this Guaranty of Lease as of the day and year first above written.

---

| | |
|:---|:---|
| MSG SPORTS & ENTERTAINMENT, LLC | MSG SPORTS & ENTERTAINMENT, LLC |
| By: | /s/ Mark Schoenfeld |
|  | Name: Mark Schoenfeld |
|  | Title: Senior Vice President and Assistant Secretary |

---

------

<u>EXHIBIT A</u> 

<u>SURRENDER AGREEMENT</u> 

THIS SURRENDER AGREEMENT, made as of the day of , between RCPI LANDMARK PROPERTIES, L.L.C., a Delaware limited liability company having an office at c/o Tishman Speyer Properties, L.P., 45 Rockefeller Plaza, New York, New York 10111 ("<u>Landlord</u>") and Radio City Productions LLC, a Delaware limited liability company with an office at 1260 Avenue of the Americas, New York, New York 10019 ("<u>Tenant</u>").

<u>W</u> <u>I</u> <u>T</u> <u>N</u> <u>E</u> <u>S</u> <u>S</u> <u>E</u> <u>T</u> <u>H</u>:

WHEREAS, by Agreement of Lease, dated as of December 4, 1997 (as the same has heretofore been amended, the "<u>Lease</u>") between Landlord and Tenant, Landlord did demise and let unto Tenant, and Tenant did hire and take from Radio City Music Hall and portions of the buildings commonly known as 1270 Avenue of the Americas and 50 Rockefeller Plaza New York (the "<u>Premises</u>"); and

WHEREAS, Tenant desires to surrender the Premises effective upon the date this Agreement and all keys and combinations to the Premises are delivered to Landlord (such date being hereinafter referred to as the "<u>Surrender Date</u>"), upon the terms and conditions hereinafter set forth;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Surrender of Premises</u>. Effective as of the Surrender Date, Tenant hereby surrenders to Landlord all of Tenant's right, title and interest in and to the Premises and the Lease, together with all alterations, installations, additions and improvements in and to said Premises (in the manner provided for in the Lease), to the intent and purpose that the estate of Tenant in and to the Premises shall be wholly extinguished as of the Surrender Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Representations</u>. Tenant hereby <u>warrants</u> and represents to Landlord that nothing has been done or suffered by Tenant whereby the Lease, the Premises or the estate of Tenant in and to said Premises or any part thereof, has been encumbered in any way whatsoever; Tenant has good right to surrender the same; and that no one other than Tenant has acquired through or under Tenant any right, title or interest in and to the Lease or the term and estate thereby granted or in and to all or any part of the Premises covered by the Lease including, without limitation, all alterations, installations, additions, and improvements in and to the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Brokerage</u>. Tenant further warrants <u>and</u> represents to Landlord that it has not dealt with any real estate agent or broker in connection with this Agreement and/or the Premises and that this Agreement was not brought about or procured through the use or instrumentality of any agent or broker. Tenant covenants and agrees to indemnify and hold Landlord harmless from and against any and all claims for commissions and other compensation made by any agent or agents and/or any broker or brokers based on any dealings between Tenant and any agent or agents and/or broker or brokers, together with all costs and expenses incurred by Landlord in resisting such claims (including, without limitation, attorneys' fees).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Continuing Liability</u>. The delivery of this Agreement to Landlord shall not affect any liability or obligation of Tenant under the Lease and shall not be construed to diminish, limit or otherwise reduce any liability or obligation that Tenant would otherwise have under the Lease if this Agreement were never delivered to Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Successors and Assigns</u>. The covenants, conditions, provisions and agreements contained in this Agreement shall bind <u>Tenant</u>, its permitted successors and assigns and inure to the benefit of Landlord and its successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>No Oral Modifications</u>. This Agreement may not be changed, modified or canceled orally and shall inure to the benefit of <u>and</u> be binding upon the parties hereto, their successors, legal representatives and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Survival</u>. The provisions of this Agreement shall survive the termination of the Lease.

------

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

---

| | |
|:---|:---|
| LANDLORD: | LANDLORD: |
| RCPI LANDMARK PROPERTIES, L.L.C. | RCPI LANDMARK PROPERTIES, L.L.C. |
| By: |  |
|  | Name: |
|  | Title: |
| TENANT: | TENANT: |
| RADIO CITY PRODUCTIONS LLC | RADIO CITY PRODUCTIONS LLC |
| By: |  |
|  | Name: |
|  | Title: |

---

## Exhibit 10.28

**Exhibit 10.28** 

**Summary of Office Space Arrangement** 

**Between MSG Entertainment Group, LLC and the Knickerbocker Group LLC.** 

MSG Entertainment Group, LLC, a subsidiary of Madison Square Garden Entertainment Corp. (the "Company"), has agreed to make office space and certain technology services available from time to time to the Knickerbocker Group LLC, an entity owned by James L. Dolan, the Executive Chairman and a director of the Company. The Knickerbocker Group LLC will be charged an amount equal to the cost of such technology services and the allocated cost of the space. The Company can end the arrangement at any time.

## Exhibit 10.29

**Exhibit 10.29** 

**AIRCRAFT SUPPORT SERVICES AGREEMENT** 

THIS AIRCRAFT SUPPORT SERVICES AGREEMENT (this "**Agreement**") is entered into effective as of December 17, 2018 by and between **MSG SPORTS & ENTERTAINMENT, LLC** a Delaware limited liability company with an office at 2 Pennsylvania Plaza, New York 10121 ("**MSG**"), on the one hand; and the following operators as follows: Charles F. Dolan, Thomas C. Dolan, Deborah Dolan-Sweeney, Patrick F. Dolan, Marianne Dolan Weber, and Kathleen M. Dolan, each an individual, with their address at c/o Dolan Family Office, LLC, 340 Crossways Park Drive, Woodbury, New York 11797 (each a "**Client**," and collectively, "**Client**" or "**Clients**" as appropriate), on the other hand.

MSG will act as Clients' agent to support Clients' operation of the aircraft described below (the "**Aircraft**") in accordance with the terms and conditions of this Agreement.

**<u>SPECIFIC TERMS</u>**

**I.** **Aircraft Identification** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Aircraft Make and
Model: Gulfstream Aerospace GV-SP (G550)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Manufacturer's Serial Number: 5043

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Aircraft Registration Number: N107VS

**II.** **Agency Fee and Flight Support Personnel Costs** 

Monthly Agency Fee: $14,584

Flight Support Personnel Costs: As set forth in Section 2.1 of the General Terms below.

**III.** **Term** 

Effective Date: December 17, 2018

 <br> Expiration Date of the Term: June 30, 2019; and thereafter shall automatically renew for successive one-year terms unless either party provides written notice not less than 30 days prior to the expiration of the current term.

**IV.** **Notices** 

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To Charles F. Dolan,<br> Thomas C. Dolan,<br> Patrick F. Dolan, or<br> Deborah Dolan-Sweeney:<br>c/o Dolan Family Office LLC<br> 340 Crossways Park Drive<br> Woodbury, NY 11797<br> Attn: Dennis H. Javer<br> Telephone: (516) 226-1188<br> Fax: (516) 226-1155<br> Email: officer@dfollc.com | To MSG:<br>MSG Sports & Entertainment, LLC<br> c/o The Madison Square Garden Company<br> 2 Pennsylvania Plaza<br> New York, New York 10121<br> Attention: Phil Stang<br> Telephone: (212) 465-5930<br> Fax: (212) 465-6011<br> Email: Phil.Stang@msg.com |
|  | and |
|  To Marianne Dolan Weber, or<br>Kathleen M. Dolan,<br>c/o MLC Ventures, LLC<br> 34 Acorn Lane<br> Yorktown Heights, NY 10598<br> Attn: Rich Baccari<br> Telephone: (914) 804-5478<br> Email: rich@rgbcpa.com | MSG Sports & Entertainment, LLC<br> c/o The Madison Square Garden Company<br> Hangar 5 Republic Airport<br> Farmingdale, New York 11735<br> Attention: Phil Stang<br> Telephone: (212) 465-5900<br> Email: Phil.Stang@msg.com |

---

------

---

| | |
|:---|:---|
|  | and |
| All Notices to any Client shall also include a Notice to:<br> Aero Law Group<br> 11120 NE 2<sup>nd</sup> Street Suite 100<br> Bellevue, Washington 98004-8332<br> Attn: Nathan R. Pietila<br> Telephone: (425) 456-1800<br> Email: pietilanr@law.aero | MSG Sports & Entertainment, LLC<br> c/o The Madison Square Garden Company<br> 2 Pennsylvania Plaza<br> New York, New York 10121<br> Attn: General Counsel<br> Telephone: (212) 465-6000<br> Fax: (516) 908-4195 |

---

**V.** **Aircraft Operating Base** 

The Aircraft will be based at Republic Airport, Hangar 5, Farmingdale, New York or such other location as Clients and MSG may mutually agree (the "**Operating Base**").

**<u>GENERAL TERMS</u>**

**1.** **Support** 

1.1. <u>Primary Staff</u>. The parties acknowledge that the primary staff (pilots and/or mechanics) for the Aircraft
(the "**Primary Staff**") shall be employed by Clients or an affiliate of Client, and supervised by both Clients and MSG. The Primary Staff shall also from time to time perform scheduling of the Aircraft, oversee maintenance of the
Aircraft and perform certain other administrative services. MSG shall perform such services as set forth below to the extent not performed by the Primary Staff, or upon request of Clients. Any costs associated with the Primary Staff shall be the
responsibility of Clients and shall be paid in accordance with Section 8.5; provided, that, Clients may elect to have MSG bear the cost of such Primary Staff, to be billed in accordance with Section 8.5 and "Exhibit D –
Allocation Agreement Among Owner and Operator to the Non-Exclusive Aircraft Dry Lease Agreement" between the Clients.

1.2. <u>Support Services</u>. In consideration of the fees paid by Client, MSG will act as Clients' agent to
perform the following functions on behalf of Clients:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Employment or engagement and supervision of supervisory, flight and maintenance personnel for the Aircraft,
except that MSG shall only be responsible for general operational oversight of the Primary Staff;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Aircraft maintenance at the Operating Base, maintenance coordination at contract facilities, and related
maintenance support functions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Advice regarding insurance for the Aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) FAA liaison and compliance, record keeping and reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Aircraft hangar facilities (including office and shop facilities) at the Operating Base (at Client's
request) and other airport locations, as required;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Record keeping, reporting, budgeting, payment on behalf of Clients of Aircraft-related invoices to the extent
not paid directly by Clients and other administrative requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Aircraft, passenger, and Flight Support Personnel (as defined in Section 2.1) scheduling support services
for Clients and Clients' passengers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Negotiation and management of third-party contracts necessary for the operation of the Aircraft; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Supervision, on behalf of Clients, of the operation and maintenance of the Aircraft by Clients.

1.3. <u>Part 91 Operations</u>. All flight operations by Clients under this Agreement will be conducted under Part
91 of the Federal Aviation Regulations, as amended (the "**FAR's** "), and in accordance with any other laws and rules pertaining to the operation of the Aircraft. Clients acknowledge that services to be provided by MSG to Clients
under this Agreement are intended to assist Clients in the operation by Clients of its Aircraft under Part 91 of the FAR's in the conduct of Clients' business, and shall be undertaken by MSG consistent with such intentions and only for
such purposes.

------

1.4. <u>Operational Control</u>. It is understood that Client leases the Aircraft to MSG pursuant to a non-exclusive Aircraft Dry Lease Agreement (the "**Lease** "). Pursuant to the Lease and in compliance with Part 91 of the FAR's, at all times during the Term of this Agreement, each Client or, when
MSG is using the Aircraft, MSG, will have and retain exclusive operational control, and exclusive possession, command and control, of the Aircraft. Subject to Section 5 hereof, each Client or MSG, when MSG is using the Aircraft, will have and
retain complete and exclusive responsibility for scheduling, dispatching and flight following of the Aircraft on all of its flights conducted under the Lease and this Agreement, which responsibility includes the sole and exclusive right over
initiating, conducting and terminating any such flights, subject to the pilot-in-command's authority for all safety-of-flight matters. Each Client or, when MSG is using the Aircraft, MSG will have complete and absolute control of the crewmembers in preparation for and in connection with the operation of all of its
flights conducted under the Lease and this Agreement.

**2.** **Personnel** 

2.1. <u>Support</u> <u>Services Personnel and Flight Support Personnel</u>. On behalf of Clients, MSG shall obtain
the services of a fully-qualified (i) support services staff, including flight administration, accounting and dispatch personnel, for the Aircraft ()"**Support Services Personnel**") and (ii) pilots ()"**Pilots** "),
mechanics and flight attendants for the Aircraft (the Primary Staff, Pilots, mechanics and flight attendants, collectively, the "**Flight Support Personnel**" and, together with the Support Services Personnel, the
" **Personnel** "). Personnel will be appropriately certified, rated and trained as required by the FAR's and the insurance required by Section 9. All Personnel (other than Primary Staff) will be employed by MSG and carried on
MSG's payroll, and MSG shall be responsible for and shall timely pay and withhold all payroll and employment-related taxes (including, without limitation, Social Security, Medicare and unemployment taxes) relating to such Personnel who are MSG
employees, and shall timely file returns with respect to such taxes with proper taxing authorities. Clients shall reimburse MSG in accordance with Section 8.5 for the entire cost of (a) salary, benefits and employer payroll taxes and
(b) all training and testing, as applicable, of two (2) Pilots, one (1) flight attendant, one and one half (1 <sup>1</sup>⁄<sub>2</sub>) maintenance personnel, and
one half (<sup>1</sup>⁄<sub>2</sub>) administrative personnel (the costs set forth in this sentence shall collectively be referred to as "**Flight Support Personnel Costs** "). To the extent MSG's expenses for Flight Support Personnel Costs increase or decrease, the Flight Support Personnel Costs shall be increased or decreased by the same percentage amount. Clients will also reimburse MSG for
third-party fees (e.g., fees payable to recruiters or similar fees) paid in connection with retention of its allocated percentage of Flight Support Personnel being hired by MSG to support the Aircraft, with such allocated percentage determined by
comparing to the total flight support personnel hired by MSG pursuant to the Related Agreements (as defined in Section 13.10 below) and Clients' Flight Support Personnel who are MSG Employees.

2.2. <u>Availability</u>. Flight Support Personnel will be available, as required, to support the flight schedule of
the Aircraft. If Flight Support Personnel are unable to support a requested flight due to such circumstances as sickness, training, vacation, personal emergency, or crew duty limits, MSG will use commercially reasonable efforts to obtain the
services of substitute personnel, on behalf of Clients, meeting the standards set forth in this Agreement. Clients acknowledge that the services of substitute qualified personnel may be utilized, as required, to support the Aircraft's flight
schedule, and that applicable FAR's, Clients' operations and other manuals, and MSG's crew duty limits will be used to determine when Flight Support Personnel relief is required. Clients will be allocated incremental out-of-pocket cost of substitute personnel as follows: 33% of substitute pilot costs; 33% of substitute flight attendant costs; and 25% of substitute maintenance costs; and
such amounts shall be paid in accordance with Section 8.5.

2.3. <u>Monitoring and Reviews</u>. On behalf of Clients, MSG will monitor the qualifications and performance of
Flight Support Personnel through a process of record keeping, performance reviews, direct supervision and flight checks. Client will provide reasonable access to the Aircraft, subject to Client's prior permission, for Support Services Personnel
to conduct required training and flight checks to observe Flight Support Personnel performance.

2.4. <u>Termination or Replacement</u>. MSG reserves the right to terminate or replace Personnel who are MSG
employees for any reason. If the credentials or performance of any Personnel who are MSG employees are or become unsatisfactory to Clients, MSG agrees that upon notice to that effect from Clients, it shall consider in good faith whether to replace
such Personnel with another qualified individual.

**3.** **Flight Support Personnel Training and Qualification** 

3.1. <u>Training</u>. MSG, on behalf of Clients, will conduct or contract for training for Flight Support Personnel
that meets or exceeds the requirements of the FAR's governing the type of operation being conducted. Training will include, but not be limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Pilots</u>: (i) initial aircraft qualification, if required; (ii) Aircraft-specific recurrent
training; (iii) policy and procedures recurrent training; (iv) emergency situations training; and (v) professional qualifications enhancement training, as required, such as cockpit resource management, international operations, and
cabin medical safety.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Mechanics</u>: (i) initial aircraft qualification, if required; (ii) biennial Aircraft-specific
recurrent training; and (iii) biennial system-specific recurrent training (engines, avionics, etc.).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Flight Attendants</u>: (i) initial qualification training, if required; (ii) policy and procedures
training; (iii) cabin medical training; and (iv) emergency situations training.

3.2. <u>Training Flights</u>. Clients shall make available at their expense a reasonable amount of Aircraft time to
accomplish Pilot including Primary Staff, as applicable training, proficiency checks and line checks as required by Clients' operations and other manuals and the FAR's; provided, however, that simulators shall be used to the extent
practicable. In addition to required FAA pilot checkrides, Support Services Personnel will observe line operation of Flight Support Personnel to confirm crew performance and adherence to MSG's company procedures and the requirements of the
operations and other manuals. Client will provide reasonable access to the Aircraft, subject to Client's prior permission, for Support Services Personnel to conduct this observation. MSG will maintain a current training record for Flight
Support Personnel documenting satisfactory completion of FAA and MSG training and currency requirements.

**4.** **Aircraft Maintenance** 

4.1. <u>Maintenance Program</u>. On Clients' behalf and at Clients' expense, MSG will cause the Aircraft
to be enrolled in an FAA-approved inspection program or the manufacturer's recommended maintenance program under Part 91 of the FAR's, and will conduct, contract for and/or supervise Aircraft
maintenance services to cause the Aircraft to be maintained in accordance with the requirements of the approved inspection program and the FAR's.

4.2. <u>Minimum Equipment List</u>. On Clients' behalf, MSG will obtain an FAA approved Minimum Equipment List
(MEL) for the Aircraft. Any costs associated with the MEL shall be the responsibility of Clients and shall be paid in accordance with Section 8.5.

4.3. <u>Records</u>. On Clients' behalf, MSG will maintain records on the Aircraft, engines and systems in
accordance with the applicable FAR's, the requirements of the maintenance and other manuals and MSG's maintenance procedures, all subject to the terms of Section 6.3.

4.4. <u>Maintenance Scheduling</u>. Clients will cooperate with MSG to schedule all maintenance requirements. MSG
will schedule maintenance, to the extent practicable, to minimize conflicts with Clients' use of the Aircraft. MSG will keep Clients apprised of the Aircraft's maintenance schedule.

4.5. <u>Maintenance Service Plan</u>. On Clients' behalf, MSG shall provide any periodic reports required in
order to maintain in full force and effect any maintenance service plan covering the Aircraft or any of its equipment. Clients shall maintain each such program contract in full force and effect. All amounts payable under such contracts shall be the
responsibility of Clients and shall be paid in accordance with Section 8.5.

4.6. <u>Appointment as Agent</u>. Clients appoint MSG as their agent for the purpose of executing, for and on behalf
of Clients, any documentation required in connection with any maintenance program, maintenance service plan and/or maintenance inspection agreements as may be necessary in order for MSG to fulfill its maintenance obligations under this Agreement.
Except in the case of MSG's gross negligence or willful misconduct, Clients agree to indemnify and hold MSG harmless from and against any claims, damages, losses and expenses arising pursuant to any maintenance program, maintenance service plan
and/or maintenance inspection agreements entered into in accordance with the terms of this Agreement.

**5.** **Flight Scheduling** 

5.1. <u>Services</u>. On behalf of Clients, MSG will perform the following services related to scheduling by Clients
of the Aircraft:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Assist Client in scheduling the Aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Receive trip notices from Client and produce an itinerary for each trip giving the pertinent details of the
trip;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Arrange ground transportation requirements for Aircraft passengers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Schedule Flight Support Personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Arrange for Aircraft catering per Client's request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Arrange for landing permits, clearances, and ground handling for domestic and international destinations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Coordinate the Aircraft's movements to support Client's travel schedule; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) In the event that the Aircraft is unavailable for Client's use or upon specific request by Client, seek
trip conflict resolution with all parties. When this is not feasible arrange for chartering of substitute aircraft with Client's approval.

5.2. <u>Hours of Service</u>. MSG will provide the above-listed services twenty-four (24) hours per day, seven
(7) days per week.

5.3. <u>Client Information</u>. Clients will give MSG the most up-to-date and complete information available on the Aircraft's proposed travel schedule. MSG agrees to hold in confidence any information that it may gain regarding Clients' travel, business and
security arrangements, subject in all respects to applicable laws and regulations.

------

**6.** **Records and Administration** 

6.1. <u>Record Keeping</u>. MSG will maintain facilities and personnel at its office for Aircraft record keeping,
operations supervision, scheduling assistance, and accounting support. On behalf of Client, MSG will keep all flight, passenger, maintenance, operational, logbook, tax, and cost records up to date and in accordance with all of the requirements of
the FAR' s, good accounting practices, and all other applicable laws and regulations.

6.2. <u>Reports</u>. MSG will supply Clients with monthly reports summarizing financial and flight activity and such
other information as Clients may reasonably request, including, but not limited to, providing a year-end accounting of aircraft usage as may be required by any aircraft dry lease agreement (or comparable
agreement).

6.3. <u>Record Retention</u>. All records pertaining to the Aircraft and the performance of services hereunder will
be open for inspection and audit by Clients at MSG's office upon not less than five (5) days' written notice throughout the Term, and for the period ending four (4) years after the termination or expiration hereof or for so long
as such records are required to be retained in accordance with MSG's records retention policy, whichever is later. MSG will not destroy such records prior to the time when Clients' right to inspect and audit terminates. The provisions of
this Section 6.3 will survive the termination or expiration of this Agreement.

**7.** **Hangar at Operating Base** 

7.1. <u>Hangarage</u>. MSG will provide Clients with appropriate hangar space (including office and shop space,
internet access and access to telephones) at the Aircraft's Operating Base (as specified in Section V of the Specific Terms) for the Aircraft. Clients shall be responsible for their pro rata share of the total cost of MSG's hangar rent and
hangar maintenance/janitorial costs (including any taxes and other fees payable under the hangar lease, such as utilities) based on the square footage required for all of Clients' aircraft (whether or not such aircraft is under management by
MSG) compared to the total square footage of all aircraft of Clients, MSG and clients of Related Agreements, for hangarage maintained by MSG at the Operating Base (the "**Hangar Fee** "). To the extent MSG's rent and/or other lease
payments increase or decrease, the Hangar Fee shall be increased or decreased by the same percentage amount. In the event there is a change in circumstances relating to hangarage, the parties agree negotiate in good faith to readjust the total cost
to make such cost equitable to all parties.

7.2. <u>Provisioning</u>. MSG will provision the Operating Base to support the operation and maintenance of the
Aircraft.

**8.** **Fees, Expenses, Deposits and Billing Procedures** 

8.1. <u>Agency Fee: Staff Costs; Hangar Fee</u>. The Monthly Agency Fee to be charged to Clients specified in
Section II of the Specific Terms, the Flight Support Personnel Costs, and the Hangar Fee will be billed to and payable by Clients in monthly installments in advance. The Monthly Agency Fee shall be increased each December during the term of this
Agreement, commencing with the calendar month ending December 31, 2019, by 4% or such higher amount as mutually agreed between Clients and MSG.

8.2. <u>Insurance Expense: Taxes</u>. Clients shall pay directly the cost of the insurance coverage required to be
maintained by Clients under Section 9; provided, that, Clients may elect to have MSG bear the cost of such insurance, to be billed in accordance with Section 8.5 and "Exhibit D – Allocation Agreement Among Owner and Operator to
the Non-Exclusive Aircraft Dry Lease Agreement" between the Clients. Clients shall be responsible for the payment of any Federal, state, local or other governmental taxes, charges or assessments imposed
in connection with this Agreement, other than income or franchise taxes imposed on MSG, and shall reimburse MSG for any such tax, charge or assessment which is imposed on it by any governmental agency. Clients shall be responsible to MSG for one
hundred percent (100%) of any IRC Section 4261 Federal Transportation Excise Taxes (including any penalties or interest) if imposed by the Internal Revenue Service with respect to any services provided or payments made under this Agreement. The
provisions of this Section 8.2 will survive the termination or expiration of this Agreement.

8.3. <u>Operating Expenses</u>. Clients shall be responsible for all Operating Expenses relating to the Aircraft (to
be paid in accordance with Section 8.5) which shall be passed through without markup and net of all available discounts and credits. "**Operating Expenses**" include, but are not limited to, the following items attributable to each
Clients' specific trip expenses:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Fuel, oil, and additives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Replacement and consumable parts (including shipping costs and core charges for parts and components),
maintenance labor (other than the cost of maintenance labor performed by Flight Support Personnel), and third-party service fees for technical support of the Aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Engine, auxiliary power unit and airframe maintenance service plan fees, as applicable, and all other expenses
under Section 4;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Landing, parking, handling, customs, airways and overflight fees, hangarage fees at locations other than the
Operating Base, deicing fees, and computer flight plans;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Navigation, operations, and maintenance publications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Catering, supplies, and in-flight entertainment materials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Personnel travel expenses incurred in support of Client's operation of the Aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Communications charges and outside computer services related to Aircraft operations and maintenance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Passenger ground transportation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Substitute flight support personnel in accordance with Section 2.2.

8.4. <u>Non-recurring Expenses</u>. Non-recurring Expenses relating specifically to the Aircraft and as set forth in Section 5.1(h) shall be the responsibility of Clients (to be paid in accordance with Section 8.5) and shall be passed
through without markup and net of all available discounts and credits. "**Non-recurring Expenses**" include, but are not limited to, such items as Aircraft paint and refurbishing, major
maintenance items such as engine overhaul and airframe modifications, maintenance ground support equipment, initial spare parts provisioning and inventories, office and shop equipment, and communications and computer equipment, at the Operating
Base.

8.5. <u>Payment of Expenses</u>. To the extent reasonably practicable, Clients will pay all amounts for which it is
responsible under this Agreement directly to the applicable vendor, supplier or provider. Promptly after execution of this Agreement, Clients agree to maintain with MSG an appropriate agreed-upon advance deposit, to be applied by MSG against any
amounts payable by Clients under this Agreement. To the extent MSG incurs any such expenses on Client's behalf, MSG will use the funds available pursuant to the advance deposit to pay such expenses, and within twenty (20) days after the
end of each calendar month during the Term, commencing with the calendar month ending January 31, 2019, MSG will issue invoices detailing all charges reasonably and properly incurred on Client's behalf pursuant to the terms of this
Agreement for that calendar month and the amount required to replenish the advance deposit to the agreed amount. Invoices will be due thirty (30) days from date of receipt. All goods, support services, parts, labor, fuel, materials and any
other items purchased by MSG on behalf of Client will be passed on to Client at MSG's actual cost, with no markup, rebate, commission or other fee received or retained by MSG. MSG will attempt to secure discounts on all purchases made on behalf
of Client, and such discounts will be included in any charges from MSG to Client. MSG will be provided with a copy of Exhibit D – Allocation Agreement Among Owner and Operator to the Non-Exclusive Aircraft Dry Lease Agreement between the Clients and will invoice each Client in accordance with its allocated share.

8.6. <u>Severance of Personnel</u>. In the event that (a) this Agreement is terminated by Clients, including,
but not limited to, termination pursuant to Section 10.1(c) below, (b) Client suspend their flights of the Aircraft for a period longer than three (3) months, or (c) this Agreement is not renewed in accordance with its terms,
then Clients shall be responsible to reimburse MSG for any amounts paid to Personnel in accordance with MSG's then effective severance policy whose employment by MSG is terminated as a result thereof. The provisions of this Section 8.6
will survive the termination or expiration of this Agreement.

8.7. <u>Post Termination Expenses</u>. Within ninety (90) days after the termination or expiration of this
Agreement, a full accounting shall be made between the parties and all accounts settled between them. In no event shall any termination affect the rights and obligations of the parties arising prior to the effective date of such termination. From
and after the date of the expiration or termination of this Agreement, Clients will promptly reimburse MSG upon receipt of invoices from time to time until all remaining Aircraft expenses reasonably and properly incurred by MSG on Clients'
behalf pursuant to the terms of this Agreement are paid. The provisions of this Section 8.7 will survive the termination or expiration of this Agreement.

8.8. <u>Overdue Amounts</u>. Overdue amounts payable pursuant to this Agreement shall bear interest at a monthly
rate equal to the lesser of 1% or the highest lawful rate allowable under applicable law. The provisions of this Section 8.8 will survive the termination or expiration of this Agreement.

**9.** **Insurance and Indemnity** 

9.1. <u>General</u>. During the Term of this Agreement, and notwithstanding anything in this Agreement to the
contrary, Clients will procure and maintain or cause to be procured and maintained at its sole cost and expense aircraft insurance (the "**Client's Insurance Policy**") that satisfies all of the requirements of this Section 9.
Clients shall provide: (i) all risk, both ground and in-flight hull, including hull war risks, insurance in an amount equal to the most recent appraised fair market value of the Aircraft; and
(ii) liability coverage covering passengers, non-passengers, third party liability (including war risk AV52) and property damage of not less than two hundred fifty million ($250,000,000) United States
dollars for each occurrence but sublimited to twenty five million ($25,000,000) United States dollars for each occurrence and aggregate with respect to Personal Injury Liability. Clients will work with MSG to coordinate the Client's Insurance
Policy.

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9.2. <u>Policy Provisions</u>. Client's Insurance Policy will provide that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) MSG and its affiliates and each of their respective members, managers, shareholders, officers, directors,
partners, employees, agents, licensees and guests are designated as additional insureds (without responsibility for premiums) with respect to the liability coverage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The insurer waives any right of set-off and any right of subrogation
against any of the additional insureds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No cancellation or substantial change in coverage of or failure to renew the Client's Insurance Policy
shall be effective as to the additional insureds for thirty (30) days (seven (7) days, in the case of war risk or allied perils) after receipt by MSG of written notice from the insurer of any such cancellation or substantial change in
coverage of the policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All coverages will be primary, not subject to any co-insurance clause,
not contributory or subject to offset with respect to any other policies in force;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The insurance will include a severability of interest clause providing that Client's Insurance Policy will
operate in the same manner to give each insured the same protection as if there were a separate policy issued to each insured except for the limit of liability; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The "Approved Pilots" section will require any appropriately rated two pilot flight crew consisting
of pilots approved by the Chief Pilot of the Named Insured  **** ** or MSG Aviation, LLC or their designee, and the "Territory" section will provide Worldwide Coverage

9.3. <u>Certificate of Insurance</u>. On or before the Effective Date, Clients will provide or cause to be provided
to MSG a certificate of insurance evidencing all coverages in compliance with the requirements of this Agreement.

9.4. <u>MSG Insurance</u>. At all times during the Term, MSG, at its own cost and expense, shall maintain (or cause
to be maintained) the following insurance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Workers' compensation insurance and employer's liability insurance that provides applicable statutory
benefits for all of MSG's employees including, without limitation, Personnel who are employees of MSG, performing services pursuant to this Agreement and includes broad form all-states coverage; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On airport premises automobile liability insurance in an amount not less than two million ($2,000,000) United
States dollars combined single-limit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Clients and their affiliates and each of their respective members, managers, shareholders, officers, directors,
partners, employees, agents, licensees and guests shall be named as an additional insured on the insurance coverages set forth in Section 9.4(b). The policies described in this Section 9.4 shall be primary and not excess, contributory or
contingent. On or before the Effective Date, MSG shall cause its insurer to provide Clients with insurance certificates showing all coverages in compliance with this Section 9.4.

9.5. <u>Cross Indemnities</u>. Without limiting the respective obligations of MSG and Clients (each, a
" **Party** "), each Party (in each case, the "**Indemnitor**") hereby indemnifies and holds harmless the other Party and its affiliates and their respective officers, directors, partners, employees, shareholders, members and
managers (in each case, collectively, the "**Indemnitee**") for any claim, damage, loss, or reasonable expense, including reasonable attorneys' fees (an "**Indemnified Loss** "), resulting from bodily injury or property
damage arising out of the ownership, maintenance or use of the Aircraft which results from gross negligence or willful misconduct of such Party; provided, however, that neither Party will be liable for any Indemnified Loss to the extent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Such loss is covered by the insurance policies described in this Paragraph 9 (the "**Policies** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Such loss is covered by the Policies but the amount of such loss exceeds the policy limits specified by
Clients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Such loss consists of expenses incurred in connection with any loss covered in whole or in part by the Policies
but such expenses are not fully covered by the Policies; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Such loss is caused by the gross negligence or willful misconduct of the Indemnitee.

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9.6. <u>LIMITATION ON LIABILITY</u>. EACH PARTY ACKNOWLEDGES AND AGREES THAT: (I) THE PROCEEDS OF INSURANCE TO
WHICH IT IS ENTITLED; (II) ITS RIGHTS TO INDEMNIFICATION FROM THE OTHER PARTY UNDER SECTION 9.5; AND (III) ITS RIGHT TO DIRECT DAMAGES ARISING IN CONTRACT FROM A BREACH OF THE OTHER PARTY'S OBLIGATIONS UNDER THIS AGREEMENT, ARE THE
SOLE REMEDIES FOR ANY DAMAGE, LOSS, OR EXPENSE A RISING OUT OF THIS AGREEMENT OR THE SERVICES PROVIDED (OR OMITTED TO BE PROVIDED) HEREUNDER OR CONTEMPLATED HEREBY. EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION 9.6, EACH PARTY WAIVES ANY RIGHT
TO RECOVER ANY DAMAGE, LOSS OR EXPENSE ARISING OUT OF THIS AGREEMENT OR THE SERVICES PROVIDED HEREUNDER OR CONTEMPLATED HEREBY. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR OR HAVE ANY DUTY FOR INDEMNIFICATION OR CONTRIBUTION TO THE OTHER PARTY FOR
ANY CLAIMED INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, OR FOR ANY DAMAGES CONSISTING OF DAMAGES FOR LOSS OF USE, REVENUE, PROFIT, BUSINESS OPPORTUNITIES AND THE LIKE, OR FOR DEPRECIATION OR DIMINUTION IN VALUE OF THE
AIRCRAFT, OR INSURANCE DEDUCTIBLE, EVEN IF THE PARTY HAD BEEN ADVISED, OR KNEW OR SHOULD HAVE KNOWN, OF THE POSSIBILITY OF SUCH DAMAGES.

9.7. <u>Survival</u>. The provisions of Sections 9.5 and 9.6 will survive the termination or expiration of this
Agreement.

**10.** **Duration, Notification, and Termination** 

10.1. <u>Term</u>. The Term of this Agreement is specified in Section III of the Specific Terms. At any time during
the Term, either party may request that the parties engage in good faith discussions with respect to changes desired by such party in the terms of this Agreement, and if such new terms have not been agreed to by the parties within thirty
(30) days after the date of such request, then either party may terminate this Agreement upon written notice given at least ninety (90) days prior to the effective date of such termination. Notwithstanding the foregoing, this Agreement
shall be terminable in accordance with the following provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement shall terminate, upon written notice from either party to the other, in the event of a total
loss or destruction of the Aircraft, damage to the Aircraft that causes it, in the reasonable opinion of such party, to be irreparable, or theft of the Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement shall terminate, effective on not less than ninety (90) days' prior written notice
from MSG to Client, if MSG will no longer operate a flight support department as of such effective date (which notice shall be given by MSG to Client as soon as reasonably practicable after MSG becomes aware that such is or will become the case).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) MSG acknowledges and agrees that nothing in this Agreement shall affect in any way the right of the owner of
the Aircraft to sell it. In the event that the owner of the Aircraft enters into an agreement to sell the Aircraft, Client shall promptly notify MSG to that effect. This Agreement shall terminate effective as of the later to occur of (i) the
closing of the sale of the Aircraft, or (ii) ninety (90) days after such written notice by Client to MSG; provided, that, if Client purchases a new aircraft, Client may provide written notice to MSG of its intent not to terminate this Agreement
and continue operating under the terms provided herein, subject to reasonable adjustments of fees, allocation of flight support personnel, hangar costs, etc., based on any different needs of such new aircraft.

10.2. <u>Effect of Termination</u>. In the event of a termination of this Agreement, whether as a result of a default
or the expiration of its Term, MSG shall immediately cease its performance hereunder and return the Aircraft at Client's expense to the custody of Client or its agents or representatives at any airport in the northeastern United States
designated in writing by Client along with all maintenance records, flight logs, manuals, ledgers, etc.; provided, that, MSG agrees that it will continue to provide Client space at the Operating Base for Client's Aircraft for the lesser of
twelve (12) months from the effective date of such termination, or such time period that MSG retains control of the Operating Base pursuant to an underlying sublease (or comparable agreement), at the same cost as the Hangar Fee provided for
hereunder. Client and MSG agree that in the event of termination, the parties will negotiate in good faith terms of a separate sublease (or comparable agreement) for Client's Aircraft to be stored at the Operating Base.

10.3. <u>Notices</u>. All notices or other communications delivered or given under this Agreement shall be in writing
and shall be deemed to have been duly given if hand-delivered, sent by certified or registered mail, return receipt requested, or nationally-utilized overnight delivery service, Portable Document Format ()"**PDF**") or confirmed
facsimile transmission, as the case may be. Such notices shall be addressed to the parties at the addresses set forth in Section IV of the Specific Terms, or to such other address as may be designated by any party in a writing delivered to the other
in the manner set forth in this Section 10.3. Notices sent by certified or registered mail shall be deemed received three (3) business days after being mailed. All other notices shall be deemed received on the date delivered. Routine
communications may be made by e-mail or fax to the addresses set forth herein.

10.4. <u>Default</u>. In addition to the termination provisions set forth in Section 10.1 above, this Agreement
may be terminated immediately by the party not in default (without prejudice to any other rights that such party may have) upon written notice to the defaulting party in the event of any of the following (each, an "**Event Default** "):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) failure of the defaulting party to make payments due hereunder within ten (10) business days of a notice
from the non-defaulting party that such payment was not timely made when due;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) except as provided in Section 10.4(c)-(f), violation or default of any term, obligation or condition of a non-monetary nature set forth in this Agreement, together with a failure to cure within ten (10) days after receipt of written notice of such violation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) breach of any material warranty or provision, or falsity of any material representation, made by Clients or MSG
in connection with this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if the Aircraft is operated by or maintained in violation of any law, regulation, directive or order of any
governmental authority or in violation of any provision of any insurance policy contemplated by this Agreement, unless such violation can reasonably be cured, in which case the defaulting party shall have failed to cure such violation within ten
(10) days after receipt of written notice thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) lapse of insurance coverage required to be kept in force by the defaulting party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) if MSG or Clients shall make a general assignment for the benefit of creditors, or be declared insolvent or
bankrupt under any bankruptcy, insolvency or other similar law, or commence a voluntary proceeding seeking liquidation, reorganization or other relief under any such law or seeking the appointment of a receiver or liquidator over any substantial
portion of their respective assets.

**11.** **Force Majeure** 

11.1. <u>General</u>. Neither party will be deemed to be in breach of its obligations hereunder or have any liability
for any delay, cancellation, or damage arising in whole or in part from any act of God, act of nature, acts of civil or military authority, civil unrest, war, terrorism, strike or labor dispute, mechanical failure, lack of essential supplies or
parts, or for any cause, whether similar or dissimilar to any of the foregoing, beyond the reasonable control of such party. The time required for any performance hereunder shall be extended by the duration of any such event(s).

**12.** **Liens** 

12.1. <u>No Liens</u>. MSG shall ensure that no liens, attachments, levies or executions are created or placed
against the Aircraft by MSG or third parties as a result of MSG's acts or omissions other than third-party liens to be discharged in the ordinary course of business. MSG shall notify Clients promptly upon learning of any liens against the
Aircraft and will forthwith satisfy, bond off or discharge any such liens caused by the acts or omissions of MSG or the breach of MSG of its obligations under this Agreement.

**13.** **Miscellaneous** 

13.1. <u>Governing Law</u>. This Agreement shall be governed by and construed in accordance with the laws of the
State of New York, determined without regard to its conflicts of laws principles. If any provision of this Agreement conflicts with any statute or rule of law of the State of New York or is otherwise unenforceable, such provision shall be deemed
null and void only to the extent of such conflict or unenforceability and shall be deemed separate from and shall not invalidate any other provision of this Agreement.

13.2. <u>Headings</u>. Captions and paragraph headings in this Agreement are inserted only as a matter of
convenience, and in no way define, limit, extend or interpret the scope of this Agreement or of any particular section.

13.3. <u>Modification</u>. This Agreement shall not be modified or amended or any provision waived except by an
instrument in writing signed by authorized representatives of the parties.

13.4. <u>Successors and Assigns</u>. Neither party shall have the right to assign this Agreement without the prior
written consent of the other party; provided, however, that MSG shall have the right, upon notice to Clients, to assign this Agreement to any affiliate of The Madison Square Garden Company. This Agreement shall be binding upon the parties hereto and
their respective heirs, executors, administrators, successors and assigns, and shall inure to the benefit of the parties hereto and their respective heirs, executor's administrators, successors and permitted assigns.

13.5. <u>Counterparts</u>. This Agreement may for all purposes be executed in several counterparts, each of which
shall be deemed an original, and all such counterparts, taken together, shall constitute the same instrument, even though all parties may not have executed the same counterpart of this Agreement. Each party may transmit its signature by confirmed
facsimile or PDF transmission, and such signatures shall have the same force and effect as an original signature.

13.6. <u>Venue</u>. Any legal action, suit or proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby may be instituted in any state or federal court in the State of New York. Each party waives any objection which such party may now or hereinafter have to the laying of the venue in New York County, New York in any
such action, suit or proceeding, and irrevocably submits to the jurisdiction of any such court in any such action, suit or proceeding.

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13.7. <u>Integration</u>. This Agreement sets forth the entire agreement between the parties with respect to the
subject matter hereof and supersedes any and all other agreements, understandings, communications, representations or negotiations, whether oral or written, between the parties with respect to the support services for the Aircraft. There are no
other agreements, representations or warranties, whether oral or written, express or implied, relating to the support services for the Aircraft that are not expressly set forth in this Agreement.

13.8. <u>No Partnership or Joint Venture</u>. Nothing contained in this Agreement will in any way create any
partnership or joint venture relationship between MSG and Clients or be construed as evidence of the intention of the parties to constitute such.

13.9. <u>WAIVER OF JURY TRIAL</u>. EACH PARTY HEREBY KNOWINGLY AND VOLUNTARILY WAIVES ITS RIGHTS TO A JURY TRIAL IN
ANY ACTION, SUIT OR PROCEEDING RELATING TO, ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT AND ANY OTHER DOCUMENT, AGREEMENT OR INSTRUMENT EXECUTED AND/OR DELIVERED IN CONNECTION WITH THE FOREGOING.

13.10. <u>Related Agreements</u>. The parties hereto acknowledge and agree that the terms reflected in this Agreement,
including but not limited to the allocation of certain expenses and fees, are based on the assumption that, in addition to this Agreement, MSG is party to Aircraft Support Services Agreements providing for substantially similar services as those
covered herein with each of JD & the Straight Shot, LLC and Brighid Air, LLC (each such current agreement, or any future amended, restated or replacement agreement, a "**Related Agreement** "). In the event that any such Related
Agreement is terminated or otherwise expires, and this Agreement shall continue, the parties will work in good faith to revise the terms of this Agreement to reflect updated terms, including but limited to allocation of certain expenses and fees, to
ensure that the terms are equitable to the parties to this Agreement and any remaining Related Agreement. In addition, the parties hereto acknowledge and agree that in the event that factors cause the terms of this Agreement to be economically
unfair to one party, the parties will work together in good faith to adjust these terms to achieve a more equitable arrangement.

**(the remainder of this page has been left blank)** 

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IN WITNESS WHEREOF, the parties have executed this Aircraft Support Services Agreement as of the Effective Date shown in Section III of the Specific Terms.

---

| | | |
|:---|:---|:---|
| **CHARLES F. DOLAN** | **MSG SPORTS & ENTERTAINMENT, LLC** | **MSG SPORTS & ENTERTAINMENT, LLC** |
| /s/ Charles F. Dolan | By: | /s/ Donna Coleman |
| **THOMAS C. DOLAN** | Name: Donna Coleman<br> Title: EVP & Chief Financial Officer | Name: Donna Coleman<br> Title: EVP & Chief Financial Officer |
| /s/ Thomas C. Dolan |  |  |
| **DEBORAH DOLAN-SWEENEY** |  |  |
| /s/ Deborah Dolan-Sweeney |  |  |
| **PATRICK F. DOLAN** |  |  |
| /s/ Patrick F. Dolan |  |  |
| **MARIANNE DOLAN WEBER** |  |  |
| /s/ Marianne Dolan Weber |  |  |
| **KATHLEEN M. DOLAN** |  |  |
| /s/ Kathleen M. Dolan |  |  |

---

## Exhibit 10.30

**Exhibit 10.30** 

<u>AMENDMENT NO.1 TO</u> 

<u>AIRCRAFT SUPPORT SERVICES AGREEMENT</u> 

This AMENDMENT NO. 1 TO THE AIRCRAFT SUPPORT SERVICES AGREEMENT (this "<u>Amendment</u>") is entered into effective as of May 10, 2022, by and between MSG ENTERTAINMENT GROUP, LLC (f/k/a MSG SPORTS & ENTERTAINMENT, LLC), a Delaware limited liability company with an address at 2 Pennsylvania Plaza, New York, New York 10121 ("<u>MSG</u>"), on the one hand, and the following operators as follows: Charles F. Dolan, Thomas C. Dolan, Deborah Dolan-Sweeney, Patrick F. Dolan, Marianne Dolan Weber, and Kathleen M. Dolan, each an individual, with their address at c/o Dolan Family Office, LLC, 340 Crossways Park Drive, Woodbury, New York 11797 (each a "<u>Client</u>," and collectively, "<u>Client</u>" or "<u>Clients</u>" as appropriate), on the other hand. Capitalized terms used but not defined elsewhere in this Amendment have the meanings assigned to them in the Aircraft Support Services Agreement, effective as of December 17, 2018, by and between Client and MSG (the "<u>Aircraft Support Services Agreement</u>").

<u>RECITALS</u> 

WHEREAS, pursuant to <u>Section 13.3</u> of the Aircraft Support Services Agreement, each Client and MSG desire to amend the Aircraft Support Services Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, agree as follows:

**ARTICLE I** 

<u>AMENDMENTS TO AIRCRAFT SUPPORT SERVICES AGREEMENT</u> 

Section 1.1. The MSG notice provision in <u>Section IV</u> of the Specific Terms of the Aircraft Support Services Agreement is hereby deleted and replaced in its entirety by:

To MSG:

MSG Entertainment Group, LLC

c/o Madison Square Garden Entertainment Corp.

2 Pennsylvania Plaza

New York, New York 10121

Attention: Phil Stang

Email: Phil.Stang@msg.com

with copies to (which shall not constitute notice):

MSG Entertainment Group, LLC

c/o Madison Square Garden Entertainment Corp.

7144 Republic Airport, Hangar 41

Farmingdale, New York 11735

Attention: Phil Stang

Email: Phil.Stang@msg.com

and

MSG Entertainment Group, LLC

c/o Madison Square Garden Entertainment Corp.

------

2 Pennsylvania Plaza

New York, New York 10121

Attn: General Counsel

Email: legalnotices@msg.com

Section 1.2. <u>Section V</u> of the Specific Terms of the Aircraft Support Services Agreement is hereby deleted and replaced in its entirety by:

The Aircraft will be based at 7144 Republic Airport, Hangars 41 and 43, Farmingdale, New York or such other location as Clients and MSG may mutually agree (the "**Operating Base**").

Section 1.3. <u>Section 1.2(f)</u> of the Aircraft Support Services Agreement is hereby amended by adding "assistance" after "budgeting".

Section 1.4. <u>Section 2.1</u> of the Aircraft Support Services Agreement is hereby deleted and replaced in its entirety by:

(a) <u>Support Services Personnel and Flight Support Personnel</u>. On behalf of Clients, MSG shall obtain the services of a fully-qualified (i) support services staff, including flight administration, accounting and dispatch personnel, for the Aircraft ("**Support Services Personnel**") and (ii) pilots ("**Pilots**"), mechanics and flight attendants for the Aircraft (the Primary Staff, Pilots, mechanics and flight attendants, collectively, the "**Flight Support Personnel**" and, together with the Support Services Personnel, the "**Personnel**"). One (1) flight attendant and one (1) maintenance personnel (each employed by MSG) shall be primarily committed to Clients on a regular basis (the "**Client Dedicated Personnel**"). Personnel will be appropriately certified, rated and trained as required by the FAR's and the insurance required by Section 9. All Personnel (other than Primary Staff) will be employed by MSG and carried on MSG's payroll, and MSG shall be responsible for and shall timely pay and withhold all payroll and employment-related taxes (including, without limitation, Social Security, Medicare and unemployment taxes) relating to such Personnel who are MSG employees, and shall timely file returns with respect to such taxes with proper taxing authorities.

(b) <u>Flight Support Personnel Costs</u>. Clients shall reimburse MSG in accordance with Section 8.5 for the entire cost of (a) salary, benefits and employer payroll taxes and (b) all training and testing, as applicable, of one (1) Pilot (effective as of January 17, 2022), one (1) flight attendant, one and one half (1 <sup>1</sup>⁄<sub>2</sub>) maintenance personnel, and one half (<sup>1</sup>⁄<sub>2</sub>) administrative personnel (the costs set forth in this sentence shall collectively be referred to as "**Flight Support Personnel Costs**"). The Flight Support Personnel Costs shall be calculated at a rate based on the average cost per person in such personnel group (i.e., the rate for one flight attendant shall be the average cost of all flight attendants); provided however, the rate for one Pilot shall be the average cost of all Pilots excluding any Chief Pilot, Assistant Chief Pilot and Senior Captain who is primarily committed to the service of MSG. To the extent MSG's expenses for Flight Support Personnel Costs increase or decrease, the Flight Support Personnel Costs shall be increased or decreased accordingly. Clients will also reimburse MSG for third-party fees (e.g., fees payable to recruiters or similar fees) paid in connection with retention of its allocated percentage of Flight Support Personnel being hired by MSG to support the Aircraft, with such allocated percentage determined by comparing to the total flight support personnel hired by MSG pursuant to the Related Agreements (as defined in Section 13.10 below) and Clients' Flight Support Personnel who are MSG Employees (excluding any Chief Pilot, Assistant Chief Pilot and Senior Captain who is primarily committed to the service of MSG).

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Section 1.5. The last sentence of <u>Section 2.2</u> of the Aircraft Support Services Agreement is hereby deleted and replaced in its entirety by: "Clients will be allocated incremental out-of-pocket costs of substitute personnel as follows: 100% when the pilot(s) employed by or contracted for by Client (other than pursuant to this Agreement) are not available for a flight; 100% when the flight attendant(s) employed by or contracted for by Client (other than pursuant to this Agreement) are not available for a flight; and 25% of substitute maintenance costs; and such amounts shall be paid in accordance with Section 8.5."

Section 1.6. The following is hereby added after the last sentence of <u>Section 2.4</u>: "Client will have the right to approve the hiring of Client Dedicated Personnel."

Section 1.7. The following is added to the Aircraft Support Services Agreement as <u>Section 3.3</u>:

<u>Flight Support Personnel Training Costs</u>. The costs of initial qualification training of Flight Support Personnel (excluding the Primary Staff) shall be borne by MSG, and all other training costs for Flight Support Personnel (excluding the Primary Staff) shall be included in the Flight Support Personnel Costs. If MSG provides, or obtains third party services to provide, training for pilots, mechanics, flight attendants or other personnel employed by or contracted for by Clients (other than pursuant to this Agreement), Clients shall reimburse MSG for the total cost of such training.

Section 1.8. The following is added to the Aircraft Support Services Agreement as <u>Section 4.7</u>:

<u>Emergency Response Program</u>. On Clients' behalf, MSG will cause the Aircraft to be enrolled in an emergency response program (the "**ERP**"), and will conduct, contract for and/or supervise Aircraft maintenance services to cause the Aircraft to be maintained in accordance with the requirements of the ERP. MSG shall bear the cost of administering the ERP, and all other costs related to the ERP shall be borne by Clients.

Section 1.9. <u>Section 7.1</u> of the Aircraft Support Services Agreement is hereby deleted and replaced in its entirety by:

<u>Hangarage</u>. MSG will provide Clients with appropriate hangar space (including office and shop space, internet access and access to telephones) at the Aircraft's Operating Base (as specified in Section V of the Specific Terms) for the Aircraft, and Clients agree to be bound by the applicable terms of the agreements underlying such hangar space at the Operating Base. Clients shall be responsible for their pro rata share of the aggregate total cost of MSG's hangar rent and hangar maintenance/janitorial costs (including any taxes and other fees payable under the hangar lease, such as utilities) (the "**Hangar Fee**"). Clients' pro rata share of all such rent and expenses shall be calculated based on the square footage required for all of Clients' aircraft hangared at the Operating Base (whether or not such aircraft is under management by MSG) compared to the total square footage of all aircraft hangared at the Operating Base. To the extent MSG's rent and/or other lease payments increase or decrease, the Hangar Fee shall be increased or decreased accordingly. In the event there is a change in circumstances relating to hangarage, the parties agree to negotiate in good faith to readjust the total cost to make such cost equitable to all parties.

------

Notwithstanding the expiration provision of Section III of the Specific Terms hereof, Clients will be responsible for the Hangar Fee for the term of the agreements underlying the hangar space at the Operating Base; provided, however, in the event Clients provide written notice to MSG that the Aircraft will no longer be hangared at the Operating Base, Clients shall only be responsible for the Hangar Fee for nine (9) months from the date on which Clients deliver such written notice to MSG (unless otherwise mutually agreed in writing by the parties). For the avoidance of doubt, during the period beginning on April 1, 2022 and through June 30, 2022, Clients shall be responsible for the Hangar Fee as well as their pro rata share of the aggregate total cost of MSG's hangar rent and hangar maintenance/janitorial costs (including any taxes and other fees payable under the hangar lease, such as utilities) at Hangar 5 at Republic Airport.

Section 1.10. <u>Section 8.1</u> of the Aircraft Support Services Agreement is hereby amended by adding the following after the first sentence thereof: "MSG shall bill each Client individually."

Section 1.11. In the third sentence of <u>Section 8.5</u> of the Aircraft Support Services Agreement, "twenty (20) days" is hereby deleted and replaced with "forty-five (45) days".

Section 1.12. <u>Section 8.6</u> of the Aircraft Support Services Agreement is hereby amended by adding the following after the first sentence thereof: "For the avoidance of doubt, if MSG terminates Personnel other than as described in the preceding sentence, MSG will be responsible for severance payments, if any."

Section 1.13. The last sentence of <u>Section 13.5</u> of the Aircraft Support Services Agreement is hereby amended by adding the following after "facsimile": ", PDF transmission or other electronic transmission service (e.g., DocuSign),".

Section 1.14. <u>Section 13.10</u> of the Aircraft Support Services Agreement is hereby deleted and replaced in its entirety by:

<u>Related Agreements</u>. The parties hereto acknowledge and agree that the terms reflected in this Agreement, including but not limited to the allocation of certain expenses and fees, are based on the assumption that, in addition to this Agreement, MSG is party to an Aircraft Support Services Agreement providing for substantially similar services as those covered herein with Brighid Air, LLC (such current agreement, or any future amended, restated or replacement agreement, a "**Related Agreement**"). In the event that any such Related Agreement is terminated or otherwise expires, and this Agreement shall continue, the parties will work in good faith to revise the terms of this Agreement to reflect updated terms, including but limited to allocation of certain expenses and fees, to ensure that the terms are equitable to the parties to this Agreement and any remaining Related Agreement. In addition, the parties hereto acknowledge and agree that in the event that factors cause the terms of this Agreement to be economically unfair to one party, the parties will work together in good faith to adjust these terms to achieve a more equitable arrangement.

**ARTICLE II** 

<u>MISCELLANEOUS</u> 

Section 2.1. Except as expressly modified and superseded by this Amendment, the Aircraft Support Services Agreement shall continue to be in full force and effect in accordance with its terms. After the date of this Amendment, all references to the "Aircraft Support Services Agreement" or phrases with similar meaning shall refer to the Aircraft Support Services Agreement as amended by this Amendment.

------

Section 2.2. The provisions of <u>Section 13.1</u>, <u>Section 13.3</u>, <u>Section 13.5</u> and <u>Section 13.6</u> of the Aircraft Support Services Agreement shall apply *mutatis mutandis* to this Amendment.

[*Signature page follows.*]

------

IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first above written.

CLIENTS:

---

| |
|:---|
| **CHARLES F. DOLAN** |
| /s/ Charles F. Dolan |
| **THOMAS C. DOLAN** |
| /s/ Thomas C. Dolan |
| **DEBORAH DOLAN-SWEENEY** |
| /s/ Deborah Dolan-Sweeney |
| **PATRICK F. DOLAN** |
| /s/ Patrick F. Dolan |
| **MARIANNE DOLAN WEBER** |
| /s/ Marianne Dolan Weber |
| **KATHLEEN M. DOLAN** |
| /s/ Kathleen M. Dolan |

---

[Signature Page to Amendment No. 1 to Aircraft Support Services Agreement]

------

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| | |
|:---|:---|
| MSG: | MSG: |
| **MSG ENTERTAINMENT GROUP, LLC** | **MSG ENTERTAINMENT GROUP, LLC** |
| By: | /s/ David F. Byrnes |
| Name: David F. Byrnes | Name: David F. Byrnes |
| Title: Executive Vice President & Chief Financial Officer | Title: Executive Vice President & Chief Financial Officer |

---

[Signature Page to Amendment No. 1 to Aircraft Support Services Agreement]

## Exhibit 10.31

**Exhibit 10.31** 

**<u>FLIGHT CREW SERVICES AGREEMENT</u>**

This Flight Crew Services Agreement (this "**Agreement**") is made this 6th day of May, 2019 between Dolan Family Office, LLC, a New York limited liability company with an address at 340 Crossways Park Drive, Woodbury, New York 11797 ("**Contractor**"), and MSG Sports & Entertainment, LLC, a Delaware limited liability company with an address at 2 Pennsylvania Plaza, New York, New York 10121 (the "**Customer**").

**<u>W I T N E S S E T H</u>:** 

WHEREAS, Customer is the non-exclusive lessee of a Bombardier BD100-1A10 Challenger 350 aircraft, serial number 20611, registration number 350 PD (the "**Aircraft**"); and

WHEREAS, Contractor employs, or contracts for, a fully qualified flight crew to operate various aircraft, including the Aircraft; and

WHEREAS, Customer wishes to hire Contractor to provide flight crew from time to time to assist Customer in the operation of the Aircraft by Customer under Part 91 of the Federal Aviation Regulations.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and undertakings herein contained, and other good and valuable consideration, the Parties hereby agree as follows:

**ARTICLE 1: TERM** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Term</u>. The term of this Agreement ("**Term**") shall commence on the date of execution of this Agreement and, unless terminated in accordance with the provisions hereof, shall remain in full force and effect for an initial term ending on June 30, 2019 and thereafter shall automatically renew for successive one-year terms unless either party provides written notice not less than 30 days prior to the expiration of the current term. Notwithstanding the foregoing, (a) Customer shall have the right to terminate this Agreement immediately upon the termination of the Dry Lease Agreement between Customer and Brighid Air, LLC, providing for Customer's non-exclusive right to lease the Aircraft and (b) either party shall have the right to terminate this Agreement (i) upon breach of the terms of this Agreement by the other party, or (ii) for any reason or no reason by written notice given to the other party not less than ten (10) days prior to the proposed termination date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Flight Periods</u>. During the Term, Customer agrees to hire Contractor to provide the flight crew services described in Article 2 below ("**Flight Crew Services**") for specific periods when Customer is leasing the Aircraft ("**Flight Periods**") and Contractor, subject to availability, agrees to provide Flight Crew Services for such Flight Periods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <u>Scheduling Flight Crew Services</u>. Customer shall make requests for Flight Crew Services to Contractor either orally or in writing. Requests shall be made as far in advance as reasonably practicable prior to the intended commencement of the Flight Period. Customer shall <u>provide</u> the following information to Contractor: (1) dates and times requested for the Flight Period; (2) Customer's proposed itinerary (i.e., proposed destinations and times for each flight segment); and (3) the number of passengers to be carried on each flight segment.

**ARTICLE 2: PROVISION OF SERVICES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Provision of Services</u>. For each Flight Period, Contractor will provide the Customer with a flight crew consisting of a professionally trained pilot-in command and a co-pilot who shall be familiar with, and licensed to operate the Aircraft, and a professionally trained flight attendant familiar with the Aircraft if requested (collectively the "**Flight Crew**"). Each Flight Crew member shall be covered by the insurance referred to in Article 5 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Flight Crew Duties</u>. During each Flight Period, the Flight Crew shall, on behalf of the Customer: (1) make all necessary arrangements for take-off, flight, and landing; (2) cause to be maintained all records, logs and other documentation required by the Federal Aviation Regulations ("**FARs**"); (3) perform all administrative tasks required in conjunction with flights during the Flight Period, including, but not limited to, arranging for fuel and other airport services, payment of airport taxes or landing fees; and (4) upon request, coordinate ground transportation and catering for passengers.

------

**ARTICLE 3: CONTROL OF AIRCRAFT** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Customer's Operational Control</u>. Contractor acknowledges and agrees and will insure that the Flight Crew provided by Contractor shall acknowledge and agree that (i) Customer shall exercise sole and exclusive operational control as such term in defined in FAR Section 1.1 during any flight, (ii) each and every right Contractor may have to control, direct, instruct or in any way influence the actions of the Flight Crew during the time the Aircraft is operated on Customer's behalf are hereby waived and granted to Customer, notwithstanding any employment relationship between Contractor and the Flight Crew, and (iii) responsibility for operational control is not transferable to any other person or entity, and it supersedes any agreement, contract, understanding or arrangement, either oral or written, expressed or implied, between any persons or entities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Authority of Pilot in Command</u>. Nothing herein shall be construed as diminishing the emergency authority of the pilot-in-command of the Flight Crew in accordance with FAR Section 91.3(b) or to otherwise exercise the pilots duties and responsibilities regarding safety of flight. The designated pilot-in-command shall have complete discretion to terminate, divert, or delay any flight or take other action for safety of flight reasons. The decision of the pilot-in-command with regard to any safety of flight decision shall be final.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Flight Restrictions</u>. Customer represents and warrants that it will not operate the Aircraft in a manner that would violate the FARs or other laws or regulations or Contractor's internal policies, including, but not limited to (1) duty and flight time restrictions for the Flight Crew, and (2) carriage of passengers for hire or other flights that would not be in accordance with operations under FAR Part 91.

**ARTICLE 4: FEES FOR SERVICES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Fee</u>. Customer agrees to pay Contractor a fee to cover Flight Crew services for each Flight Period in an amount equal to $535 per block hour. For this purpose, a "block hour" shall be measured in hours and tenths of hours, rounded to the nearest tenth of an hour, from the time the Aircraft moves for purposes of flight at the departure airport to the time the Aircraft comes to a stop at the arrival airport.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Reimbursement for Flight Crew Costs</u>. Customer agrees to reimburse Contractor at cost for all reasonable and documented incidental costs incurred by Contractor on behalf of Customer incidental to flights during each Flight Period including, but not limited to: (1) hangaring and tie down charges away from the Aircraft's base of operation; (2) landing fees, airport taxes or similar charges; (3) customs, immigration or similar charges related to international flight; (4) if requested by Customer, in-flight food and beverages service and passenger ground transportation; and (5) travel expenses of the Flight Crew including food, lodging, and ground transportation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Invoicing and Payment</u>. Contractor will send Customer invoices for fees and costs for each Flight Period. Such invoices shall be payable not later than 45 days after receipt by Customer.

**ARTICLE 5: INSURANCE** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Insurance on Aircraft</u>. Customer is an additional insured on the insurance policies of Contractor covering, among other things, third party Aircraft liability, passenger legal liability, property damage liability, and Contractor carries and maintains all risk ground and flight hull insurance covering the Aircraft. Such policy shall contain a waiver of subrogation in favor of Customer under the Contractor's hull coverages for services performed under the contract. Any such insurance shall be in effect throughout the entire Term. Contractor acknowledges that it is a named insured on said insurance policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Flight Crew Insurance</u>. Contractor shall maintain, at its own cost, the following insurance during the term of this Agreement: Worker's Compensation and Employer Liability insurance in an amount not less than Five Hundred Thousand United States dollars (U.S. $500,000) covering Contractor and the Flight Crew at all times during the term of this Agreement. Before the commencement of any Flight Crew Services by the Contractor, upon the request of Customer, Contractor shall have provided to Customer, and Customer shall be satisfied with, a certificate evidencing the required coverage under the Contractor's insurance policies.

**ARTICLE 6: MISCELLANEOUS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Contractor's Personnel</u>. Contractor shall be an independent contractor to perform services under this Agreement and all the Flight Crew shall at all times and for all purposes be considered Contractor's employees or agents. Contractor shall be solely responsible for payment and reporting of federal, state and local income taxes, employment and related taxes, and other applicable government taxes, social security, unemployment insurances, and other payroll taxes for all Flight Crew members.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Notices</u>. All notices and other communications under this Agreement shall be in writing and shall be given to the address and in the manner agreed to by the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Entire Agreement</u>. This Agreement constitutes the final, complete, and exclusive statement of the terms of the agreement between the parties pertaining to the subject matter of this Agreement and supersedes all prior and contemporaneous understandings of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Amendments and Modifications</u>. The terms of this Agreement shall not be waived, varied, contradicted, explained, amended or changed in any other manner except by an instrument in writing, executed by both Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <u>Choice of Law</u>. This Agreement shall in all respects be governed by, and construed in accordance with, the laws of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 <u>Force Majeure</u>. Neither party shall be liable for any failure to perform its obligations if such failure results from any act of God, riot, war, civil unrest, flood, earthquake, or other cause beyond such party's reasonable control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 <u>Execution</u>. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original, and such counterparts together shall constitute one and the same instrument. Signatures conveyed via facsimile or by electronic mail shall have the same force and effect as original signatures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 <u>Relationship of Parties</u>. Neither party is or shall be deemed to be the agent, partner or joint venture of the other. Neither party shall be authorized to bind the other, except as expressly provided herein, or shall be responsible for the acts or omissions of the other.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 <u>Confidentiality</u>. The work contemplated under this Agreement may require Contractor personnel and/or Flight Crew to have access to information that is proprietary or confidential to Customer and its affiliates. Contractor agrees that neither it nor any Flight Crew furnished hereunder shall disclose to other persons any information acquired by Contractor and/or any Flight Crew as a result of the performances of its services under this Agreement unless agreed to by Customer.

(signature page follows)

------

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed in their names and on their behalf by their duly authorized representatives.

---

| | |
|:---|:---|
| DOLAN FAMILY OFFICE, LLC | DOLAN FAMILY OFFICE, LLC |
| By: | /s/ Dennis H. Javer |
|  | Name: Dennis H. Javer |
|  | Title: President |
|  | Date: May 6, 2019 |

---

---

| | |
|:---|:---|
| MSG SPORTS & ENTERTAINMENT, LLC | MSG SPORTS & ENTERTAINMENT, LLC |
| By: | /s/ Victoria M. Mink |
|  | Name: Victoria M. Mink |
|  | Title: EVP & Chief Financial Officer |
|  | Date: May 6, 2019 |

---

## Exhibit 10.32

**Exhibit 10.32** 

EXECUTION VERSION

<u>AIRCRAFT DRY LEASE AGREEMENT</u> 

THIS AIRCRAFT DRY LEASE AGREEMENT (this "Lease") is entered in effective as of December 17, 2018, by and between STERLING2K LLC, a New York limited liability company with an address at 340 Crossways Park Drive, Woodbury, NY 11797 ("Lessor" or "Sterling") and MSG SPORTS & ENTERTAINMENT, LLC, a Delaware limited liability company with an address at Two Pennsylvania Plaza, New York, New York 10121 ("Lessee" or "MSG").

**<u>W</u> <u>I</u> <u>T</u> <u>N</u> <u>E</u> <u>S</u> <u>S</u> <u>E</u> <u>T</u> <u>H</u>** 

WHEREAS, Lessor is the owner of a Gulfstream Aerospace GV-SP (G550) aircraft, manufacturer's serial number 5043, United States registration N107VS, including its engines, accessories, components and parts (the "Aircraft"); and

WHEREAS, the parties have agreed that Lessor shall lease the Aircraft to Lessee on a non-exclusive basis for use by Lessee upon the terms and subject to the conditions set forth herein.

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants, agreements, representations and warranties set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, Lessor and Lessee, intending to be legally bound, agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Lease of Aircraft</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Lease sets forth the exclusive terms and conditions under which Lessee is entitled to use the Aircraft, and Lessee shall have no right to use the Aircraft except as expressly set forth herein. Lessor shall lease the Aircraft to Lessee, and Lessee shall lease the Aircraft from Lessor, during all Lease Periods throughout the Term (as defined in Section 12) of this Lease as provided hereunder. "Lease Periods" shall mean those times, if any, when the Aircraft is being utilized by Lessee hereunder, with the consent of Lessor as provided in Section 1(e), for flight operations conducted by Lessee under Part 91 of the Federal Aviation Regulations ("FARs"), including any deadhead, ferry or repositioning flights to return the Aircraft to the airport at which the Lease Period commenced or to position the Aircraft for a Lessee trip at a remote location away from Republic Airport, Farmingdale, New York (KFRG), but excluding any deadhead, ferry and repositioning flights described in Section 1(b) below ("Lessee Flights"). Lessee's right to use the Aircraft hereunder during the Term shall be non-exclusive and is subject in all respects to (i) Lessor's right to use the Aircraft at all times during the Term other than during such Lease Periods and (ii) Lessor's right to permit other non-exclusive lessees to use the Aircraft under their operational control and possession, command and control

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, the parties agree that if a trip by Lessee causes or will cause the Aircraft to be at a remote location away from KFRG ("Lessee's Location"), Lessee shall, at Lessor's request, permit the Aircraft to be relocated from Lessee's Location to KFRG or other location designated by Lessor (and thereafter shall be returned to Lessee's Location) if Lessor requires use of the Aircraft directly or for one of its affiliated non-exclusive lessees, but only if such itinerary will not unreasonably delay or interfere with any scheduled flight by Lessee. In that event, (i) Lessee's then-current Lease Period shall terminate effective as of initial engine start-up for the departure flight from Lessee's Location; (ii) Lessor or its affiliated non-exclusive lessee shall pay all costs incurred during the period in which the Aircraft is away from Lessee's Location, including all occupied and deadhead legs to ferry the Aircraft from Lessee's Location and back; and (iii) a new Lease Period shall begin effective as of final engine shut-down upon return of the Aircraft to Lessee's Location.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Transfer of the Aircraft from Lessor to Lessee to commence a Lease Period hereunder, and transfer of the Aircraft from Lessee to Lessor to terminate a Lease Period hereunder, shall be evidenced by the entry of appropriate notations of such transfer on the Aircraft's logs. Upon the commencement or termination of any Lease Period hereunder, the party transferring possession of the Aircraft shall deliver the Aircraft to the other party at KFRG or such other location as the parties may agree. In the case of a transfer of possession from Lessee to Lessor, the Aircraft shall be in at least the same operating condition, order, repair and condition as when received by Lessee at the commencement of the Lease Period, reasonable wear and tear and maintenance events arising during the Lease Period not caused by Lessee's gross negligence or willful misconduct excepted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Subject to Aircraft and crew availability, Lessor shall use its good faith efforts, consistent with Lessor's approved policies, in order to accommodate the needs of Lessee, to avoid conflicts in scheduling with Lessor's affiliated non-exclusive lessees' use of the Aircraft, and to enable Lessee to enjoy the benefits of this Lease; however, Lessee acknowledges and agrees that notwithstanding anything in this Lease to the contrary, Lessor shall have sole and exclusive final authority over the scheduling of the Aircraft and Lessor's other affiliated non-exclusive lessees' needs for the Aircraft shall take precedence over Lessee's rights and Lessor's obligations under this Lease pursuant to Section 1(e).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Lessee shall use its reasonable efforts to give Lessor as much advance notice of Lessee's proposed utilization hereunder. If Lessee notifies Lessor pursuant to Section 15 of Lessee's proposed use of the Aircraft and Lessor consents thereto, the period described in such notice of proposed use may be scheduled by Lessee (unless such intended use is cancelled by Lessee by like notice to Lessor). Notwithstanding anything herein to the contrary, all Lessee Flights approved by Lessor and scheduled by Lessee are subject to the absolute right of Lessor to revoke such approval at any time prior to twenty four (24) hours before the scheduled departure of the initial flight of the approved itinerary, without liability, upon notice to Lessee. Any notice under this Section 1(e) may be either written or oral, but shall be given only to or by individuals designated by each party from time to time as authorized to act on its behalf for purposes of this Section 1(e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Rent</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Lessee shall remit to Lessor the sum per block hour set forth on Schedule 1 hereto from time to time as Rent for the use of the Aircraft by Lessee during each Lease Period hereunder. For this purpose, a "block hour" shall be measured in hours and tenths of hours, rounded to the nearest tenth of an hour, from the time the Aircraft moves for purposes of flight at the departure airport to the time the Aircraft comes to a stop at the arrival airport.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not later than thirty (30) days after the end of each calendar month during the Term, Lessee shall provide to Lessor a statement showing all use of the Aircraft during Lease Periods during that month, and a complete accounting detailing any Rent due from Lessee for that month. Notwithstanding anything in this Lease to the contrary, Lessee shall have no obligation to utilize the Aircraft hereunder, and there shall be no Rent payable to Lessor hereunder with respect to any calendar month if Lessee does not use the Aircraft hereunder during such month. All payments of Rent due for any calendar month shall be made at Lessor's address set forth above, or at such other place as Lessor may designate to Lessee in writing from time to time, not later than the thirtieth (30<sup>th</sup>) day of the following month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Not later than thirty (30) days following June 30 (the "True-Up Date") each year during the Term, Sterling shall provide (or cause to be provided) to MSG a statement showing the total number of hours of use of the Aircraft from July 1 of the preceding year to and including the True-Up Date. The statement provided by (or on behalf of) Sterling for the period of July 1, 2018 through June 30, 2019, the statement shall include MSG's use of Sterling Aviation LLC's Gulfstream Aerospace G-V aircraft, manufacturer's serial number 639, United States registration N501CV (the "GV"). Pursuant to that certain Time Sharing Agreement, effective as of July 1, 2018, between Charles F. Dolan ("CFD") and MSG (the "MSG G550 Time Sharing Agreement") providing for the lease of MSG's Gulfstream Aerospace GV-SP aircraft, manufacturer's serial number 5264, United States registration N551CS (the "MSG G550") by CFD, MSG shall deliver a statement showing the total number of hours of use of the MSG G550 by CFD from July 1 of the preceding year to and including the True-Up Date. The parties acknowledge and agree that the expectation is that Lessee's use of the Aircraft pursuant to this Lease shall be greater (on a per hour basis) than Lessor's use of the MSG G550 pursuant to the MSG G550 Time Sharing Agreement. In the event that the total number of hours of use of the Aircraft (including use of the GV, as applicable) by MSG during such period is greater than CFD's use of the MSG G550 for such period, MSG shall remit to Lessor as Additional Rent the sum per block hour set forth on Schedule 1 hereto for such hours in excess of CFD's use of the MSG G550 (the "True-Up Hours"). In addition, the parties hereto acknowledge and agree that such Rent, including any Additional Rent, shall be permitted to be further adjusted to ensure that the arrangement is not economically unfair to the Lessor of the Aircraft. Notwithstanding anything in this Lease to the contrary, under no circumstances shall the fees paid under this Lease by Lessee be greater than those permitted under FAR Part 91.501(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Expenses</u>. Lessor shall pay the entire cost of insuring, maintaining and fueling the Aircraft during the Term. Lessee shall pay the following trip-specific costs of operating the Aircraft during Lease Periods under this Lease:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) travel expenses of crew, including food, lodging and ground transportation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) hangar and tie-down costs away from KFRG;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) additional insurance obtained for the specific flight at the request of Lessee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) landing fees, airport taxes and similar assessments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) customs, foreign permit and similar fees directly related to the flight;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) in-flight food and beverages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) passenger ground transportation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) flight planning and weather contract services; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) oil, lubricants and other additives.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Flight Crew.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Lessee shall obtain at its sole cost and expense the services of fully qualified and properly certificated flight crew to operate the Aircraft under this Lease. All flight crew provided by Lessee to operate the Aircraft during any Lease Period hereunder shall be employees or contractors of Lessee, and Lessee shall be solely responsible for their compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Only fully-qualified and properly-credentialed flight crew members who are included under the insurance coverage required to be maintained hereunder shall be permitted to operate the Aircraft during any Lease Period. All flight crew utilized by Lessee hereunder shall comply with all applicable regulations and the requirements of all applicable operations and maintenance manuals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Operational Control; Operations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Lessor and Lessee intend that the lease of the Aircraft effected hereby shall be treated as a "dry lease". Notwithstanding anything in this Lease to the contrary, Lessee shall have complete and exclusive operational control, and complete and exclusive possession, command and control, of the Aircraft for all flights during each Lease Period under this Lease. Lessee shall have complete and absolute control of the crewmembers in preparation for and in connection with the operation of all flights during each Lease Period under this Lease. Lessee shall have complete and exclusive responsibility for scheduling, dispatching and flight following of the Aircraft on all flights conducted during Lease Periods under this Lease, which responsibility includes the sole and exclusive right over initiating, conducting and terminating any such flights. Lessee shall have no operational control over any flights of the Aircraft not conducted during Lease Periods under this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Lessee shall use and operate the Aircraft under this Lease only in accordance with applicable manufacturers' recommendations and airport and climatic conditions. Neither Lessee nor Lessor shall permit the Aircraft to be maintained, used or operated in violation of any law, rule, regulation, ordinance or order of any governmental authority having jurisdiction, or in violation of any airworthiness certificate, license or registration relating to the Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Regulatory</u>. Lessee shall obtain and maintain in full force and effect any necessary certificates, licenses, permits and authorizations required for its use and operation of the Aircraft hereunder. Lessee agrees to conduct all operations contemplated by this Lease in compliance with all applicable provisions of the FARs, including, but not limited to, Part 91 thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Records</u>. Lessee shall maintain any records required by applicable laws, rules or regulations in connection with the operation of the Aircraft during any Lease Period hereunder. Without limiting the generality of the foregoing, Lessee shall maintain or cause to be maintained flight log books showing the full flight time of the Aircraft during each Lease Period hereunder, and shall keep such logs available for inspection by Lessor or its representatives at all reasonable times. Lessor shall be entitled, upon reasonable notice to Lessee, to inspect any books or records of Lessee that relate to the Aircraft's use hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Remote Locations</u>. Lessee shall pay the cost of hangaring the Aircraft at remote locations during any Lease Periods hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During the Term, Lessor will procure and maintain or cause to be procured and maintained at its sole cost and expense aircraft insurance (the "Policy") that satisfies all of the requirements of this Section 9. The Policy will provide: (i) all risk, both ground and in-flight hull, including hull war risks, insurance in an amount equal to the most recent appraised fair market value of the Aircraft; and (ii) liability coverage covering passengers, non-passengers, third party liability (including war risk AV52) and property damage of not less than two hundred fifty million ($250,000,000) United States dollars for each occurrence but sublimited to twenty five million ($25,000,000) United States dollars for each occurrence and aggregate with respect to Personal Injury Liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Policy will provide: (i) that Lessee and its affiliates and each of their respective members, managers, shareholders, officers, directors, partners, employees, agents, licensees and guests are designated as additional insureds (without responsibility for premiums) with respect to the liability coverage; (ii) that the insurer waives any right of set-off and any right of subrogation against any of the additional insureds; (iii) that no cancellation or substantial change in coverage of or failure to renew the Policy shall be effective as to the additional insureds for thirty (30) days (seven (7) days, in the case of war risk or allied perils) after receipt by Lessee of written notice from the insurer of any such cancellation or substantial change in coverage of the policy; (iv) that all coverages will be primary, not subject to any co-insurance clause, not contributory or subject to offset with respect to any other policies in force; (v) for a severability of interest clause providing that the Policy will operate in the same manner to give each insured the same protection as if there were a separate policy issued to each insured except for the limit of liability; and (vii) that the "Territory" section will provide Worldwide Coverage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On or before the date hereof, Lessor will provide Lessee with a certificate of insurance evidencing all coverages in compliance with the requirements of this Lease.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Maintenance</u>. Lessor shall, at its sole cost and expense, (i) enroll or cause the Aircraft to be enrolled on a Federal Aviation Administration ("FAA") approved or manufacturer-recommended maintenance and inspection program under Part 91 of the FARs, and (ii) maintain or cause the Aircraft to be maintained in accordance with the requirements of the approved maintenance and inspection program and all applicable FAA regulations. No period of maintenance, preventive maintenance or inspection shall be delayed or postponed for the purpose of scheduling the Aircraft, unless said maintenance or inspection can be safely conducted at a later time in compliance with all applicable laws and regulations. Lessor represents and warrants that, at all times during the Term, the Aircraft will be in airworthy condition and current on the approved maintenance program. Lessee shall be responsible for obtaining letters of authorization in its own name as operator of the Aircraft for operations within RVSM**,** use of a MEL, or any other operator specific authorization required for Lessee's operation of the Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Default</u>. In addition to the termination rights set forth in Section 12, the non-defaulting party shall have the right to terminate this Lease immediately (without prejudice to any other rights that such party may have) upon written notice to the defaulting party in the event of any one or more of the following events of default:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) failure of the defaulting party to make payments due hereunder within ten (10) days following notice from the non-defaulting party that such payment was not timely made when due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) except as provided in Section 11(iii) - (vii), violation or default of any material term, obligation or condition of a non-monetary nature set forth in this Lease, together with a failure to cure within ten (10) days after receipt of written notice of such violation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if Lessee operates or maintains the Aircraft in violation of any law, regulation, directive or order of any governmental authority or in violation of any provision of any insurance policy contemplated by this Lease, unless such violation can reasonably be cured, in which case Lessee shall have failed to cure such violation within ten (10) days after receipt of written notice thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if any representation or warranty made in this Lease by a party is or becomes false, misleading or incorrect in any material respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) lapse of insurance coverage required to be kept in force hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if a party shall make a general assignment for the benefit of creditors, or be declared insolvent or bankrupt under any bankruptcy, insolvency or other similar law, or commence a voluntary proceeding seeking liquidation, reorganization or other relief under any such law or seeking the appointment of a receiver or liquidator over any substantial portion of its respective assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) assignment by a party of this Lease, except as permitted under Section 22, or any right or interest created hereunder without the prior written consent of the other party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Lessee incurs, causes, permits, consents to, or there arises due to Lessee's actions or failure to act, the creation, attachment, filing or registration of any lien, mortgage, security interest or other charge or encumbrance or claim or right of others against the Aircraft, other than the creation and attachment of statutory liens for operating costs related to Lessee Flights that arise in the ordinary course of business and that are not perfected by filing or registration against the Aircraft or the lienor asserting or retaining possession of or seizing or arresting the Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Lessee fails to execute reasonable and customary documentation required by the Lessor to finance or continue financing of the Aircraft. Lessee knowingly operates the Aircraft in a location or manner that violates the terms of an Aircraft Loan and Security Agreement as provided by the Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Lessee knowingly operates the Aircraft in or above a war or conflict zone.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Term</u>. The term of this Lease (including as it may be extended pursuant to the terms hereof, the "Term") shall commence on the date hereof and, unless terminated in accordance with the provisions hereof, shall remain in full force and effect for an initial term ending on June 30, 2019 and thereafter shall automatically renew for successive one-year terms unless either party provides written notice not less than 30 days prior to the expiration of the current term. Notwithstanding the foregoing, (a) Lessor shall have the right to terminate this Lease immediately (x) upon termination of the G550 Time Sharing Agreement, (y) upon termination of the any underlying lease of the Aircraft or (z) upon the sale of the Aircraft and (b) either party shall have the right to terminate this Lease (i) upon breach of the terms of this Lease by the other party as provided in Section 11, or (ii) for any reason or no reason by written notice given to the other party not less than ten (10) days prior to the proposed termination date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Remedies on Default or Termination</u>. In the event of a termination of this Lease, whether as a result of a default or the expiration of its Term, Lessee shall immediately cease its use of the Aircraft and return the Aircraft and all records pertaining thereto to the custody of Lessor or its agents or representatives as set forth herein at such airport as Lessor and Lessee may agree. Not later than thirty (30) days after the termination of this Lease, a full accounting shall be made between Lessee and Lessor and all accounts settled between the parties. In no event shall any termination affect the rights and obligations of the parties arising prior to the effective date of such termination. Without prejudice to or limitation or modification of the other provisions of this Lease, in no event shall either party be liable to the other for damages relating to the loss of use of the Aircraft after the date of termination of this Lease, due to default or expiration of the Term or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Cross Indemnities; LIMITATION ON LIABILITY</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Without limiting their respective obligations hereunder, each party (in each case, the "Indemnitor") hereby indemnifies and holds harmless the other party and its affiliates and their respective officers, directors, partners, employees, shareholders, members and managers (in each case, collectively, the "Indemnitee") for any claim, damage, loss, or reasonable expense, including reasonable attorneys' fees (an "Indemnified Loss"), resulting from bodily injury or property damage arising out of the ownership, maintenance or use of the Aircraft which results from the gross negligence or willful misconduct of such party; provided, however, that neither party will be liable for any Indemnified Loss to the extent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Such loss is covered by the insurance policies described in Section 9 (the "Policies");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Such loss is covered by the Policies but the amount of such loss exceeds the policy limits specified by Lessor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Such loss consists of expenses incurred in connection with any loss covered in whole or in part by the Policies but such expenses are not fully covered by the Policies; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Such loss is caused by the gross negligence or willful misconduct of the Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each party agrees to look to the insurance required to be maintained under Section 9 prior to seeking indemnification from the other party hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>LIMITATION ON LIABILITY</u>. EACH PARTY ACKNOWLEDGES AND AGREES THAT: (I) THE PROCEEDS OF INSURANCE TO WHICH IT IS ENTITLED; (II) ITS RIGHTS TO INDEMNIFICATION FROM THE OTHER PARTY UNDER SECTIONS 14(a) and 17; AND (III) ITS RIGHT TO DIRECT DAMAGES ARISING IN CONTRACT FROM A BREACH OF THE OTHER PARTY'S OBLIGATIONS UNDER THIS LEASE; ARE THE SOLE REMEDIES FOR ANY DAMAGE, LOSS, OR EXPENSE ARISING OUT OF THIS LEASE OR THE TRANSACTIONS CONTEMPLATED HEREBY. EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION 14(c), EACH PARTY WAIVES ANY RIGHT TO RECOVER ANY DAMAGE, LOSS OR EXPENSE ARISING OUT OF THIS LEASE OR THE TRANSACTIONS CONTEMPLATED HEREBY. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR OR HAVE ANY DUTY FOR INDEMNIFICATION OR CONTRIBUTION TO THE OTHER PARTY FOR ANY CLAIMED INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, OR FOR ANY DAMAGES FOR LOSS OF USE, REVENUE, PROFIT, BUSINESS OPPORTUNITIES AND THE LIKE, OR FOR DEPRECIATION OR DIMINUTION IN VALUE OF THE AIRCRAFT OR INSURANCE DEDUCTIBLE, EVEN IF THE PARTY HAD BEEN ADVISED, OR KNEW OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH DAMAGES.

NOTWITHSTANDING ANYTHING IN THIS LEASE TO THE CONTRARY, NEITHER PARTY SHALL HAVE ANY LIABILITY TO THE OTHER PARTY FOR ITS PERFORMANCE OR FAILURE TO PERFORM ANY OF ITS OBLIGATIONS UNDER THIS LEASE (INCLUDING, WITHOUT LIMITATION, IN THE CASE OF ITS NEGLIGENCE) EXCEPT IN THE CASE OF ITS GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The provisions of this Section 14 shall survive the termination or expiration of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Notices</u>. All notices or other communications delivered or given under this Lease shall be in writing and shall be deemed to have been duly given if hand-delivered, sent by certified or registered mail, return receipt requested, or nationally-utilized overnight delivery service, Portable Document Format ("PDF") or confirmed facsimile transmission, as the case may be. Such notices shall be addressed to the parties at the addresses set forth above, or to such other address as may be designated by any party in a writing delivered to the other in the manner set forth in this Section 15. Notices sent by certified or registered mail shall be deemed received three (3) business days after being mailed. All other notices shall be deemed received on the date delivered. Routine communications may be made by e-mail to Lessor at officer@dfollc.com and to Lessee at joseph.yospe@msg.com or fax to Lessor at (516) 226-1155 and to Lessee at (212) 465-6148.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Taxes</u>. Lessor shall pay all taxes, assessments and charges imposed by any Federal, state, municipal or other public authority upon or relating to the ownership of the Aircraft during the Term (other than any taxes, fines or penalties imposed upon Lessor as a result of a breach of this Lease by Lessee). Lessee shall pay all taxes, assessments, and charges imposed by any Federal, state, municipal or other public authority upon or relating to the rental, use or operation of the Aircraft by Lessee during the Lease Periods (including any sales or use tax imposed by the State of New York on any lease payment hereunder), other than income taxes of Lessor. Lessee shall also be liable for any federal excise tax imposed under Internal Revenue Code Section 4261 if such tax is applicable to any or all amounts paid (or deemed to be paid) by Lessee to Lessor hereunder. Lessee shall pay such tax to Lessor within thirty (30) days after receipt of Lessor's written invoice therefor. Each party agrees to indemnify and hold the other harmless against any and all liabilities, costs and expenses (including attorneys' fees) resulting from a breach of its respective undertaking hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Governing Law</u>. This Lease shall be governed by and construed in accordance with the laws of the State of New York, determined without regard to its conflicts of laws principles. If any provision of this Lease conflicts with any statute or rule of law of the State of New York or is otherwise unenforceable, such provision shall be deemed null and void only to the extent of such conflict or unenforceability and shall be deemed separate from and shall not invalidate any other provision of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Venue</u>. Any legal action, suit or proceeding arising out of or relating to this Lease or the transactions contemplated hereby may be instituted in any state or federal court in the State of New York. Each party waives any objection which such party may now or hereinafter have to the laying of the venue in New York County, New York in any such action, suit or proceeding, and irrevocably submits to the jurisdiction of any such court in any such action, suit or proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Amendment</u>. This Lease shall not be modified or amended or any provision waived except by an instrument in writing signed by authorized representatives of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Counterparts</u>. This Lease may for all purposes be executed in several counterparts, each of which shall be deemed an original, and all such counterparts, taken together, shall constitute the same instrument, even though all parties may not have executed the same counterpart of this Lease. Each party may transmit its signature by confirmed facsimile or PDF transmission, and such signatures shall have the same force and effect as an original signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Successors and Assigns; Third-Party Beneficiaries</u>. Neither party shall have the right to assign this Lease without the prior written consent of the other party; provided, however, that (i) Lessor shall have the right, upon notice to Lessee, to assign this Lease to any other direct or indirect wholly-owned subsidiary of Lessor provided any such assignments hereunder and the resulting ownership and operational structure are consistent with applicable FARs, and (ii) Lessee shall have the right, upon notice to Lessor, to assign this Lease to any entity controlling, controlled by, or under common control with, The Madison Square Garden Company. This Lease shall be binding upon the parties hereto and their respective heirs, executors, administrators, successors and assigns, and shall inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and permitted assigns. This Lease shall not be construed to create any third-party beneficiary rights in any person not a party hereto (or a successor to or permitted assign of any such party).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Integration</u>. This Lease sets forth the entire agreement between the parties with respect to the subject matter hereof and supersedes any and all other agreements, understandings, communications, representations or negotiations, whether oral or written, between the parties with respect to the lease of the Aircraft. There are no other agreements, representations or warranties, whether oral or written, express or implied, relating to the lease of the Aircraft that are not expressly set forth in this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>Legal Fees and Other Costs and Expenses</u>. In the event of any dispute, litigation or arbitration between the parties with respect to the subject matter of this Lease, the unsuccessful party to such dispute, litigation or arbitration shall pay to the successful party all costs and expenses, including, without limitation, reasonable attorneys' fees, incurred therein by the successful party, all of which shall be included in and as a part of the judgment or award rendered in such dispute, litigation or arbitration. For purposes of this Lease, the term "successful party" shall mean the party which achieves substantially the relief sought, whether by judgment, order, settlement or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. <u>WAIVER OF JURY TRIAL</u>. EACH PARTY HEREBY KNOWINGLY AND VOLUNTARILY WAIVES ITS RIGHTS TO A JURY TRIAL IN ANY ACTION, SUIT OR PROCEEDING RELATING TO, ARISING UNDER OR IN CONNECTION WITH THIS LEASE AND ANY OTHER DOCUMENT, AGREEMENT OR INSTRUMENT EXECUTED AND/OR DELIVERED IN CONNECTION WITH THE FOREGOING.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. <u>TRUTH IN LEASING</u>. TRUTH IN LEASING STATEMENT UNDER SECTION 91.23 OF THE FEDERAL AVIATION REGULATIONS:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) LESSOR HEREBY CERTIFIES THAT THE AIRCRAFT HAS BEEN MAINTAINED AND INSPECTED UNDER FAR PART 91 DURING THE 12-MONTH PERIOD PRECEDING THE DATE OF EXECUTION OF THIS LEASE. THE AIRCRAFT WILL BE MAINTAINED AND INSPECTED UNDER FAR PART 91 FOR ALL OPERATIONS TO BE CONDUCTED DURING LEASE PERIODS UNDER THIS LEASE.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) LESSEE HEREBY CERTIFIES THAT IT IS RESPONSIBLE FOR OPERATIONAL CONTROL OF THE AIRCRAFT DURING ALL LEASE PERIODS UNDER THIS LEASE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) EACH OF LESSOR AND LESSEE CERTIFIES THAT IT UNDERSTANDS ITS RESPONSIBILITIES FOR COMPLIANCE WITH APPLICABLE FEDERAL AVIATION REGULATIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) EACH OF LESSOR AND LESSEE UNDERSTANDS THAT AN EXPLANATION OF THE FACTORS BEARING ON OPERATIONAL CONTROL AND THE PERTINENT FEDERAL AVIATION REGULATIONS CAN BE OBTAINED FROM THE NEAREST FAA FLIGHT STANDARDS DISTRICT OFFICE.

Instructions for Compliance with "Truth In Leasing" Requirements are attached hereto as Schedule 2.

**(SIGNATURE PAGE FOLLOWS)** 

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IN WITNESS WHEREOF, the parties hereto have executed this Aircraft Dry Lease Agreement this 17th day of December, 2018, effective as of the date first written above.

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| | |
|:---|:---|
| LESSOR: | LESSOR: |
| STERLING2K LLC | STERLING2K LLC |
| By: | /s/ Dennis H. Javer |
|  | Name: Dennis H. Javer |
|  | Title: Vice President |
| LESSEE: | LESSEE: |
| MSG SPORTS & ENTERTAINMENT, LLC | MSG SPORTS & ENTERTAINMENT, LLC |
| By: | /s/ Donna Coleman |
|  | Name: Donna Coleman |
|  | Title: EVP & Chief Financial Officer |

---

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<u>SCHEDULE 1</u> 

Rent per block hour: An amount equal to actual fuel costs for each Lessee flight during such Lease Period (including any deadheads, ferry and repositioning flights). For this purpose, a flight shall be measured in hours and tenths of hours from the time the Aircraft moves for purposes of flight at the departure airport to the time the Aircraft comes to stop at the arrival airport.

Additional Rent per block hour for True-Up Hours: An amount to be determined to cover variable costs (e.g., maintenance, support, etc.) of the Aircraft for such True-Up Hours (less any amounts previously paid for such True-Up Hours).

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<u>SCHEDULE 2</u> 

<u>INSTRUCTIONS FOR COMPLIANCE WITH "TRUTH IN LEASING" REQUIREMENTS</u> 

**1.** Mail a copy of this Lease to the following address via certified mail, return receipt requested, immediately upon execution of this Lease (14 C.F.R. 91.23 requires that the copy be sent within twenty-four (24) hours after it is signed):

Federal Aviation Administration

Aircraft Registration Branch

ATTN: Technical Section

P.O. Box 25724

Oklahoma City, Oklahoma 73125

**2.** Telephone or fax the nearest Flight Standards District Office at least forty-eight (48) hours prior to the first flight made under this Lease.

**3.** Carry a copy of this Lease in the Aircraft at all times when the Aircraft is being operated under this Lease.

## Exhibit 10.33

**Exhibit 10.33** 

<u>AMENDMENT NO.1 TO</u>

<u>AIRCRAFT DRY LEASE AGREEMENT</u>

This AMENDMENT NO. 1 TO THE AIRCRAFT DRY LEASE AGREEMENT (this "<u>Amendment</u>") is entered in effective as of December 20, 2021, by and between STERLING2K LLC, a New York limited liability company with an address at 340 Crossways Park Drive, Woodbury, NY 11797 ("Lessor" or "Sterling") and MSG ENTERTAINMENT GROUP, LLC, a Delaware limited liability company with an address at Two Pennsylvania Plaza, New York, New York 10121 ("Lessee" or "MSG"). Capitalized terms used but not defined elsewhere in this Amendment have the meanings assigned to them in the Aircraft Dry Lease Agreement, effective as of December 17, 2018, by and between Sterling and MSG (f/k/a MSG Sports & Entertainment, LLC) (the "<u>Aircraft Dry Lease Agreement</u>").

<u>RECITALS</u> 

WHEREAS, pursuant to <u>Section 20</u> of the Aircraft Dray Lease Agreement, Sterling and MSG desire to amend the Aircraft Dry Lease Agreement;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, agree as follows:

**ARTICLE I** 

<u>AMENDMENTS TO AIRCRAFT DRY LEASE AGREEMENT</u> 

Section 1.1. Section 2(c) of the Aircraft Dry Lease Agreement is hereby deleted and replaced in its entirety by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Not later than thirty (30) days following June 30 (the "True-Up Date") each year during the Term, Sterling shall provide (or cause to be provided) to MSG a statement showing the total number of hours of use of the Aircraft from July 1 of the preceding year to and including the True-Up Date. The statement provided by (or on behalf of) Sterling for the period of July 1, 2018 through June 30, 2019, the statement shall include MSG's use of Sterling Aviation LLC's Gulfstream Aerospace G-V aircraft, manufacturer's serial number 639, United States registration N501CV (the "GV"). Pursuant to (i) that certain Time Sharing Agreement, effective as of July 1, 2018, between Charles F. Dolan ("CFD") and MSG (the "2018 Time Sharing Agreement") providing for the lease of MSG's Gulfstream Aerospace GV-SP aircraft, manufacturer's serial number 5264, United States registration N551CS (the "MSG G550") by CFD and (ii) that certain Time Sharing Agreement, effective as of December 20, 2021, between CFD and MSG (the "2021 Time Sharing Agreement") providing for the lease of MSG's Gulfstream Aerospace GV-SP aircraft, manufacturer's serial number 5465, United States registration N5465M (the "MSG 2021 G550") by CFD, MSG shall deliver a statement showing the total number of hours of use of the MSG G550 and the MSG 2021 G550 (collectively, the "MSG G550s") by CFD from July 1 of the preceding year to and including the True-Up Date. The parties acknowledge and agree that the expectation is that Lessee's use of the Aircraft pursuant to this Lease shall be greater (on a per hour basis) than Lessor's use of the MSG G550s pursuant to the 2018 Time Sharing Agreement and the 2021 Time Sharing Agreement. In the event that the total number of hours of use of the Aircraft (including use of the GV, as applicable) by MSG during such period is greater than CFD's use of the MSG G550s for such period, MSG shall remit to Lessor as Additional Rent the sum per block hour set forth on Schedule 1 hereto for such hours in excess of CFD's use of the MSG G550s (the "True-Up Hours"). In addition, the parties hereto acknowledge and agree that such Rent, including any Additional Rent, shall be permitted to be further adjusted to ensure that the arrangement is not economically unfair to the Lessor of the Aircraft. Notwithstanding anything in this Lease to the contrary, under no circumstances shall the fees paid under this Lease by Lessee be greater than those permitted under FAR Part 91.501(d).

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Section 1.2. <u>Section 22</u> of the Aircraft Dry Lease Agreement is amended by replacing "The Madison Square Garden Company" with "Madison Square Garden Entertainment Corp.".

**ARTICLE II** 

<u>MISCELLANEOUS</u> 

Section 2.1. Except as expressly modified and superseded by this Amendment, the Aircraft Dry Lease Agreement shall continue to be in full force and effect in accordance with its terms. After the date of this Amendment, all references to the "Aircraft Dry Lease Agreement" or phrases with similar meaning shall refer to the Aircraft Dry Lease Agreement as amended by this Amendment.

Section 2.2. The provisions of <u>Section 18</u>, <u>Section 19</u>, <u>Section 20</u> and <u>Section 21</u> of the Aircraft Dry Lease Agreement shall apply *mutatis mutandis* to this Amendment.

[*Signature page follows.*]

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IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first above written.

---

| | |
|:---|:---|
| LESSOR**:** | LESSOR**:** |
| **STERLING2K LLC** | **STERLING2K LLC** |
| By: | /s/ Dennis H. Javer |
| Name: Dennis H. Javer | Name: Dennis H. Javer |
| Title: VP | Title: VP |
| LESSEE: | LESSEE: |
| **MSG ENTERTAINMENT GROUP, LLC** | **MSG ENTERTAINMENT GROUP, LLC** |
| By: | /s/ Mark H. FitzPatrick |
| Name: Mark H. FitzPatrick | Name: Mark H. FitzPatrick |
| Title: EVP & Chief Financial Officer | Title: EVP & Chief Financial Officer |

---

Amendment No. 1 to Aircraft Dry Lease Agreement

## Exhibit 10.34

**Exhibit 10.34** 

<u>AMENDMENT NO.2 TO</u> 

<u>AIRCRAFT DRY LEASE AGREEMENT</u> 

This AMENDMENT NO.2 TO THE AIRCRAFT DRY LEASE AGREEMENT (this "<u>Amendment</u>") is entered in effective as of November 4, 2022, by and between STERLING2K LLC, a New York limited liability company with an address at 340 Crossways Park Drive, Woodbury, NY 11797 ("<u>Lessor</u>" or "<u>Sterling</u>") and MSG ENTERTAINMENT GROUP, LLC, a Delaware limited liability company with an address at Two Pennsylvania Plaza, New York, New York 10121 ("<u>Lessee</u>" or "<u>MSG</u>"). Capitalized terms used but not defined elsewhere in this Amendment have the meanings assigned to them in the Aircraft Dry Lease Agreement, effective as of December 17, 2018, by and between Sterling and MSG (f/k/a MSG Sports & Entertainment, LLC) (the "<u>Aircraft Dry Lease Agreement</u>").

<u>RECITALS</u> 

WHEREAS, pursuant to <u>Section 20</u> of the Aircraft Dry Lease Agreement, Sterling and MSG desire to amend the Aircraft Dry Lease Agreement;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, agree as follows:

**ARTICLE I** 

<u>AMENDMENTS TO AIRCRAFT DRY LEASE AGREEMENT</u> 

Section 1.1. The last sentence of <u>Section 15</u> of the Aircraft Dry Lease Agreement is hereby amended and replaced by the following:

Routine communications may be made by e-mail to Lessor at officer@dfollc.com and to Lessee at guido.visconti@msg.com and legalnotices@msg.com or fax to Lessor at (516) 226-1155 and to Lessee at (516) 927-1101.

Section 1.2 The last sentence of <u>Section 21</u> of the Aircraft Dry Lease Agreement is hereby amended by adding the following after "PDF transmission": "or other electronic transmission service (e.g., DocuSign)".

Section 1.3. The last sentence of <u>Schedule 1</u> of the Aircraft Dry Lease Agreement is hereby deleted and replaced in its entirety by:

Additional Rent per block hour for True-Up Hours: $4,500.

**ARTICLE II** 

<u>MISCELLANEOUS</u> 

Section 2.1. Except as expressly modified and superseded by this Amendment, the Aircraft Dry Lease Agreement shall continue to be in full force and effect in accordance with its terms. After the date of this Amendment, all references to the "Aircraft Dry Lease Agreement" or phrases with similar meaning shall refer to the Aircraft Dry Lease Agreement as amended by this Amendment.

Section 2.2. The provisions of <u>Section 18</u>, <u>Section 19</u>, <u>Section 20</u> and <u>Section 21</u> of the Aircraft Dry Lease Agreement shall apply *mutatis mutandis* to this Amendment.

------

IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first above written.

LESSOR:

**STERLING2K LLC** 

---

| | |
|:---|:---|
| By: | /s/ Dennis Javer |
| Name: Dennis Javer | Name: Dennis Javer |
| Title: VP | Title: VP |

---

LESSEE:

**MSG ENTERTAINMENT GROUP, LLC** 

---

| | |
|:---|:---|
| By: | /s/ David F. Byrnes |
| Name: David F. Byrnes | Name: David F. Byrnes |
| Title: EVP & Chief Financial Officer | Title: EVP & Chief Financial Officer |

---

## Exhibit 10.35

**Exhibit 10.35** 

<u>AIRCRAFT DRY LEASE AGREEMENT</u> 

THIS AIRCRAFT DRY LEASE AGREEMENT (this "Lease") is entered in effective as of May 6, 2019, by and between BRIGHID AIR, LLC, a New York limited liability company with an address at 340 Crossways Park Drive, Woodbury, NY 11797 ("Lessor") and MSG SPORTS & ENTERTAINMENT, LLC, a Delaware limited liability company with an address at Two Pennsylvania Plaza, New York, New York 10121 ("Lessee" or "MSG").

<u>W</u> <u>I</u> <u>T</u> <u>N</u> <u>E</u> <u>S</u> <u>S</u> <u>E</u> <u>T</u> <u>H</u>

WHEREAS, Lessor is the owner of a Bombardier BD100-1A10 Challenger 350 aircraft, manufacturer's serial number 20611, United States registration N350 PD, including its engines, accessories, components and parts (the "Aircraft"); and

WHEREAS, the parties have agreed that Lessor shall lease the Aircraft to Lessee on a non-exclusive basis for use by Lessee upon the terms and subject to the conditions set forth herein.

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants, agreements, representations and warranties set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, Lessor and Lessee, intending to be legally bound, agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Lease of Aircraft</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Lease sets forth the exclusive terms and conditions under which Lessee is entitled to use the Aircraft, and Lessee shall have no right to use the Aircraft except as expressly set forth herein. Lessor shall lease the Aircraft to Lessee, and Lessee shall lease the Aircraft from Lessor, during all Lease Periods throughout the Term (as defined in Section 12) of this Lease as provided hereunder. "Lease Periods" shall mean those times, if any, when the Aircraft is being utilized by Lessee hereunder, with the consent of Lessor as provided in Section 1(e), for flight operations conducted by Lessee under Part 91 of the Federal Aviation Regulations ("FARs"), including any deadhead, ferry or repositioning flights to return the Aircraft to the airport at which the Lease Period commenced or to position the Aircraft for a Lessee trip at a remote location away from Republic Airport, Farmingdale, New York (KFRG), but excluding any deadhead, ferry and repositioning flights described in Section 1(b) below ("Lessee Flights"). Lessee's right to use the Aircraft hereunder during the Term shall be non-exclusive and is subject in all respects to (i) Lessor's right to use the Aircraft at all times during the Term other than during such Lease Periods and (ii) Lessor's right to permit other non-exclusive lessees to use the Aircraft under their operational control and possession, command and control

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, the parties agree that if a trip by Lessee causes or will cause the Aircraft to be at a remote location away from KFRG ("Lessee's Location"), Lessee shall, at Lessor's request, permit the Aircraft to be relocated from Lessee's Location to KFRG or other location designated by Lessor (and thereafter shall be returned to Lessee's Location) if Lessor requires use of the Aircraft directly or for one of its affiliated non-exclusive lessees, but only if such itinerary will not unreasonably delay or interfere with any scheduled flight by Lessee. In that event, (i) Lessee's then-current Lease Period shall terminate effective as of initial engine start-up for the departure flight from Lessee's Location; (ii) Lessor or its affiliated non-exclusive lessee shall pay all costs incurred during the period in which the Aircraft is away from Lessee's Location, including all occupied and deadhead legs to ferry the Aircraft from Lessee's Location and back; and (iii) a new Lease Period shall begin effective as of final engine shut-down upon return of the Aircraft to Lessee's Location.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Transfer of the Aircraft from Lessor to Lessee to commence a Lease Period hereunder, and transfer of the Aircraft from Lessee to Lessor to terminate a Lease Period hereunder, shall be evidenced by the entry of appropriate notations of such transfer on the Aircraft's logs. Upon the commencement or termination of any Lease Period hereunder, the party transferring possession of the Aircraft shall deliver the Aircraft to the other party at KFRG or such other location as the parties may agree. In the case of a transfer of possession from Lessee to Lessor, the Aircraft shall be in at least the same operating condition, order, repair and condition as when received by Lessee at the commencement of the Lease Period, reasonable wear and tear and maintenance events arising during the Lease Period not caused by Lessee's gross negligence or willful misconduct excepted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Subject to Aircraft and crew availability, Lessor shall use its good faith efforts, consistent with Lessor's approved policies, in order to accommodate the needs of Lessee, to avoid conflicts in scheduling with Lessor's affiliated non-exclusive lessees' use of the Aircraft, and to enable Lessee to enjoy the benefits of this Lease; however, Lessee acknowledges and agrees that notwithstanding anything in this Lease to the contrary, Lessor shall have sole and exclusive final authority over the scheduling of the Aircraft and Lessor's other affiliated nonexclusive lessees' needs for the Aircraft shall take precedence over Lessee's rights and Lessor's obligations under this Lease pursuant to Section 1(e).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Lessee shall use its reasonable efforts to give Lessor as much advance notice of Lessee's proposed utilization hereunder. If Lessee notifies Lessor pursuant to Section 15 of Lessee's proposed use of the Aircraft and Lessor consents thereto, the period described in such notice of proposed use may be scheduled by Lessee (unless such intended use is cancelled by Lessee by like notice to Lessor). Notwithstanding anything herein to the contrary, all Lessee Flights approved by Lessor and scheduled by Lessee are subject to the absolute right of Lessor to revoke such approval at any time prior to twenty four (24) hours before the scheduled departure of the initial flight of the approved itinerary, without liability, upon notice to Lessee. Any notice under this Section 1(e) may be either written or oral, but shall be given only to or by individuals designated by each party from time to time as authorized to act on its behalf for purposes of this Section 1(e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Rent</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Lessee shall remit to Lessor the sum per block hour set forth on Schedule 1 hereto from time to time as Rent for the use of the Aircraft by Lessee during each Lease Period hereunder. For this purpose, a "block hour" shall be measured in hours and tenths of hours, rounded to the nearest tenth of an hour, from the time the Aircraft moves for purposes of flight at the departure airport to the time the Aircraft comes to a stop at the arrival airport.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not later than thirty (30) days after the end of each calendar month during the Term, Lessee shall provide to Lessor a statement showing all use of the Aircraft during Lease Periods during that month, and a complete accounting detailing any Rent due from Lessee for that month. Notwithstanding anything in this Lease to the contrary, Lessee shall have no obligation to utilize the Aircraft hereunder, and there shall be no Rent payable to Lessor hereunder with respect to any calendar month if Lessee does not use the Aircraft hereunder during such month. All payments of Rent due for any calendar month shall be made at Lessor's address set forth above, or at such other place as Lessor may designate to Lessee in writing from time to time, not later than the thirtieth (30<sup>th</sup>) day of the following month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Expenses</u>. Lessor shall pay the entire cost of insuring, maintaining and fueling the Aircraft during the Term. Lessee shall pay the following trip-specific costs of operating the Aircraft during Lease Periods under this Lease:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) travel expenses of crew, including food, lodging and ground transportation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) hangar and tie-down costs away from KFRG;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) additional insurance obtained for the specific flight at the request of Lessee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) landing fees, airport taxes and similar assessments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) customs, foreign permit and similar fees directly related to the flight;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) in-flight food and beverages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) passenger ground transportation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) flight planning and weather contract services; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) oil, lubricants and other additives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Flight Crew</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Lessee shall obtain at its sole cost and expense the services of fully qualified and properly certificated flight crew to operate the Aircraft under this Lease. All flight crew provided by Lessee to operate the Aircraft during any Lease Period hereunder shall be employees or contractors of Lessee, and Lessee shall be solely responsible for their compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Only fully-qualified and properly-credentialed flight crew members who are included under the insurance coverage required to be maintained hereunder shall be permitted to operate the Aircraft during any Lease Period. All flight crew utilized by Lessee hereunder shall comply with all applicable regulations and the requirements of all applicable operations and maintenance manuals.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Operational Control; Operations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Lessor and Lessee intend that the lease of the Aircraft effected hereby shall be treated as a "dry lease". Notwithstanding anything in this Lease to the contrary, Lessee shall have complete and exclusive operational control, and complete and exclusive possession, command and control, of the Aircraft for all flights during each Lease Period under this Lease. Lessee shall have complete and absolute control of the crewmembers in preparation for and in connection with the operation of all flights during each Lease Period under this Lease. Lessee shall have complete and exclusive responsibility for scheduling, dispatching and flight following of the Aircraft on all flights conducted during Lease Periods under this Lease, which responsibility includes the sole and exclusive right over initiating, conducting and terminating any such flights. Lessee shall have no operational control over any flights of the Aircraft not conducted during Lease Periods under this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Lessee shall use and operate the Aircraft under this Lease only in accordance with applicable manufacturers' recommendations and airport and climatic conditions. Neither Lessee nor Lessor shall permit the Aircraft to be maintained, used or operated in violation of any law, rule, regulation, ordinance or order of any governmental authority having jurisdiction, or in violation of any airworthiness certificate, license or registration relating to the Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Regulatory</u>. Lessee shall obtain and maintain in full force and effect any necessary certificates, licenses, permits and authorizations required for its use and operation of the Aircraft hereunder. Lessee agrees to conduct all operations contemplated by this Lease in compliance with all applicable provisions of the FARs, including, but not limited to, Part 91 thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Records</u>. Lessee shall maintain any records required by applicable laws, rules or regulations in connection with the operation of the Aircraft during any Lease Period hereunder. Without limiting the generality of the foregoing, Lessee shall maintain or cause to be maintained flight log books showing the full flight time of the Aircraft during each Lease Period hereunder, and shall keep such logs available for inspection by Lessor or its representatives at all reasonable times. Lessor shall be entitled, upon reasonable notice to Lessee, to inspect any books or records of Lessee that relate to the Aircraft's use hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Remote Locations</u>. Lessee shall pay the cost of hangaring the Aircraft at remote locations during any Lease Periods hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During the Term, Lessor will procure and maintain or cause to be procured and maintained at its sole cost and expense aircraft insurance (the "Policy") that satisfies all of the requirements of this Section 9. The Policy will provide: (i) all risk, both ground and in-flight hull, including hull war risks, insurance in an amount equal to the most recent appraised fair market value of the Aircraft; and (ii) liability coverage covering passengers, non-passengers, third party liability (including war risk AV52) and property damage of not less than two hundred fifty million ($250,000,000) United States dollars for each occurrence but sublimited to twenty five million ($25,000,000) United States dollars for each occurrence and aggregate with respect to Personal Injury Liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Policy will provide: (i) that Lessee and its affiliates and each of their respective members, managers, shareholders, officers, directors, partners, employees, agents, licensees and guests are designated as additional insureds (without responsibility for premiums) with respect to the liability coverage; (ii) that the insurer waives any right of set-off and any right of subrogation against any of the additional insureds; (iii) that no cancellation or substantial change in coverage of or failure to renew the Policy shall be effective as to the additional insureds for thirty (30) days (seven (7) days, in the case of war risk or allied perils) after receipt by Lessee of written notice from the insurer of any such cancellation or substantial change in coverage of the policy; (iv) that all coverages will be primary, not subject to any co-insurance clause, not contributory or subject to offset with respect to any other policies in force; (v) for a severability of interest clause providing that the Policy will operate in the same manner to give each insured the same protection as if there were a separate policy issued to each insured except for the limit of liability; and (vii) that the "Territory" section will provide Worldwide Coverage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On or before the date hereof, Lessor will provide Lessee with a certificate of insurance evidencing all coverages in compliance with the requirements of this Lease.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Maintenance</u>. Lessor shall, at its sole cost and expense, (i) enroll or cause the Aircraft to be enrolled on a Federal Aviation Administration ("FAA") approved or manufacturer-recommended maintenance and inspection program under Part 91 of the FARs, and (ii) maintain or cause the Aircraft to be maintained in accordance with the requirements of the approved maintenance and inspection program and all applicable FAA regulations. No period of maintenance, preventive maintenance or inspection shall be delayed or postponed for the purpose of scheduling the Aircraft, unless said maintenance or inspection can be safely conducted at a later time in compliance with all applicable laws and regulations. Lessor represents and warrants that, at all times during the Term, the Aircraft will be in airworthy condition and current on the approved maintenance program. Lessee shall be responsible for obtaining letters of authorization in its own name as operator of the Aircraft for operations within RVSM**,** use of a MEL, or any other operator specific authorization required for Lessee's operation of the Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Default</u>. In addition to the termination rights set forth in Section 12, the non-defaulting party shall have the right to terminate this Lease immediately (without prejudice to any other rights that such party may have) upon written notice to the defaulting party in the event of any one or more of the following events of default:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) failure of the defaulting party to make payments due hereunder within ten (10) days following notice from the non-defaulting party that such payment was not timely made when due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) except as provided in Section 11(iii) - (vii), violation or default of any material term, obligation or condition of a non-monetary nature set forth in this Lease, together with a failure to cure within ten (10) days after receipt of written notice of such violation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if Lessee operates or maintains the Aircraft in violation of any law, regulation, directive or order of any governmental authority or in violation of any provision of any insurance policy contemplated by this Lease, unless such violation can reasonably be cured, in which case Lessee shall have failed to cure such violation within ten (10) days after receipt of written notice thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if any representation or warranty made in this Lease by a party is or becomes false, misleading or incorrect in any material respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) lapse of insurance coverage required to be kept in force hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if a party shall make a general assignment for the benefit of creditors, or be declared insolvent or bankrupt under any bankruptcy, insolvency or other similar law, or commence a voluntary proceeding seeking liquidation, reorganization or other relief under any such law or seeking the appointment of a receiver or liquidator over any substantial portion of its respective assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) assignment by a party of this Lease, except as permitted under Section 22, or any right or interest created hereunder without the prior written consent of the other party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Lessee incurs, causes, permits, consents to, or there arises due to Lessee's actions or failure to act, the creation, attachment, filing or registration of any lien, mortgage, security interest or other charge or encumbrance or claim or right of others against the Aircraft, other than the creation and attachment of statutory liens for operating costs related to Lessee Flights that arise in the ordinary course of business and that are not perfected by filing or registration against the Aircraft or the lienor asserting or retaining possession of or seizing or arresting the Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Lessee fails to execute reasonable and customary documentation required by the Lessor to finance or continue financing of the Aircraft. Lessee knowingly operates the Aircraft in a location or manner that violates the terms of an Aircraft Loan and Security Agreement as provided by the Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Lessee knowingly operates the Aircraft in or above a war or conflict zone.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Term</u>. The term of this Lease (including as it may be extended pursuant to the terms hereof, the "Term") shall commence on the date hereof and, unless terminated in accordance with the provisions hereof, shall remain in full force and effect for an initial term ending on June 30, 2019 and thereafter shall automatically renew for successive one-year terms unless either party provides written notice not less than 30 days prior to the expiration of the current term. Notwithstanding the foregoing, (a) Lessor shall have the right to terminate this Lease immediately upon the sale of the Aircraft and (b) either party shall have the right to terminate this Lease (i) upon breach of the terms of this Lease by the other party as provided in Section 11, or (ii) for any reason or no reason by written notice given to the other party not less than ten (10) days prior to the proposed termination date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Remedies on Default or Termination</u>. In the event of a termination of this Lease, whether as a result of a default or the expiration of its Term, Lessee shall immediately cease its use of the Aircraft and return the Aircraft and all records pertaining thereto to the custody of Lessor or its agents or representatives as set forth herein at such airport as Lessor and Lessee may agree. Not later than thirty (30) days after the termination of this Lease, a full accounting shall be made between Lessee and Lessor and all accounts settled between the parties. In no event shall any termination affect the rights and obligations of the parties arising prior to the effective date of such termination. Without prejudice to or limitation or modification of the other provisions of this Lease, in no event shall either party be liable to the other for damages relating to the loss of use of the Aircraft after the date of termination of this Lease, due to default or expiration of the Term or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Cross Indemnities; LIMITATION ON LIABILITY</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Without limiting their respective obligations hereunder, each party (in each case, the "Indemnitor") hereby indemnifies and holds harmless the other party and its affiliates and their respective officers, directors, partners, employees, shareholders, members and managers (in each case, collectively, the "Indemnitee") for any claim, damage, loss, or reasonable expense, including reasonable attorneys' fees (an "Indemnified Loss"), resulting from bodily injury or property damage arising out of the ownership, maintenance or use of the Aircraft which results from the gross negligence or willful misconduct of such party; provided, however, that neither party will be liable for any Indemnified Loss to the extent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Such loss is covered by the insurance policies described in Section 9 (the "Policies");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Such loss is covered by the Policies but the amount of such loss exceeds the policy limits specified by Lessor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Such loss consists of expenses incurred in connection with any loss covered in whole or in part by the Policies but such expenses are not fully covered by the Policies; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Such loss is caused by the gross negligence or willful misconduct of the Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each party agrees to look to the insurance required to be maintained under Section 9 prior to seeking indemnification from the other party hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>LIMITATION ON LIABILITY</u>. EACH PARTY ACKNOWLEDGES AND AGREES THAT: (I) THE PROCEEDS OF INSURANCE TO WHICH IT IS ENTITLED; (II) ITS RIGHTS TO INDEMNIFICATION FROM THE OTHER PARTY UNDER SECTIONS 14(a) and 17; AND (III) ITS RIGHT TO DIRECT DAMAGES ARISING IN CONTRACT FROM A BREACH OF THE OTHER PARTY'S OBLIGATIONS UNDER THIS LEASE; ARE THE SOLE REMEDIES FOR ANY DAMAGE, LOSS, OR EXPENSE ARISING OUT OF THIS LEASE OR THE TRANSACTIONS CONTEMPLATED HEREBY. EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION 14(c), EACH PARTY WAIVES ANY RIGHT TO RECOVER ANY DAMAGE, LOSS OR EXPENSE ARISING OUT OF THIS LEASE OR THE TRANSACTIONS CONTEMPLATED HEREBY. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR OR HAVE ANY DUTY FOR INDEMNIFICATION OR CONTRIBUTION TO THE OTHER PARTY FOR ANY CLAIMED INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, OR FOR ANY DAMAGES FOR LOSS OF USE, REVENUE, PROFIT, BUSINESS OPPORTUNITIES AND THE LIKE, OR FOR DEPRECIATION OR DIMINUTION IN VALUE OF THE AIRCRAFT OR INSURANCE DEDUCTIBLE, EVEN IF THE PARTY HAD BEEN ADVISED, OR KNEW OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH DAMAGES. NOTWITHSTANDING ANYTHING IN THIS LEASE TO THE CONTRARY, NEITHER PARTY SHALL HAVE ANY LIABILITY TO THE OTHER PARTY FOR ITS PERFORMANCE OR FAILURE TO PERFORM ANY OF ITS OBLIGATIONS UNDER THIS LEASE (INCLUDING, WITHOUT LIMITATION, IN THE CASE OF ITS NEGLIGENCE) EXCEPT IN THE CASE OF ITS GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The provisions of this Section 14 shall survive the termination or expiration of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Notices</u>. All notices or other communications delivered or given under this Lease shall be in writing and shall be deemed to have been duly given if hand-delivered, sent by certified or registered mail, return receipt requested, or nationally-utilized overnight delivery service, Portable Document Format ("PDF") or confirmed facsimile transmission, as the case may be. Such notices shall be addressed to the parties at the addresses set forth above, or to such other address as may be designated by any party in a writing delivered to the other in the manner set forth in this Section 15. Notices sent by certified or registered mail shall be deemed received three (3) business days after being mailed. All other notices shall be deemed received on the date delivered. Routine communications may be made by e-mail to Lessor at officer@dfollc.com and to Lessee at joseph.yospe@msg.com or fax to Lessor at (516) 226-1155 and to Lessee at (212) 465-6148.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Taxes</u>. Lessor shall pay all taxes, assessments and charges imposed by any Federal, state, municipal or other public authority upon or relating to the ownership of the Aircraft during the Term (other than any taxes, fines or penalties imposed upon Lessor as a result of a breach of this Lease by Lessee). Lessee shall pay all taxes, assessments, and charges imposed by any Federal, state, municipal or other public authority upon or relating to the rental, use or operation of the Aircraft by Lessee during the Lease Periods (including any sales or use tax imposed by the State of New York on any lease payment hereunder), other than income taxes of Lessor. Lessee shall also be liable for any federal excise tax imposed under Internal Revenue Code Section 4261 if such tax is applicable to any or all amounts paid (or deemed to be paid) by Lessee to Lessor hereunder. Lessee shall pay such tax to Lessor within thirty (30) days after receipt of Lessor's written invoice therefor. Each party agrees to indemnify and hold the other harmless against any and all liabilities, costs and expenses (including attorneys' fees) resulting from a breach of its respective undertaking hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Governing Law</u>. This Lease shall be governed by and construed in accordance with the laws of the State of New York, determined without regard to its conflicts of laws principles. If any provision of this Lease conflicts with any statute or rule of law of the State of New York or is otherwise unenforceable, such provision shall be deemed null and void only to the extent of such conflict or unenforceability and shall be deemed separate from and shall not invalidate any other provision of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Venue</u>. Any legal action, suit or proceeding arising out of or relating to this Lease or the transactions contemplated hereby may be instituted in any state or federal court in the State of New York. Each party waives any objection which such party may now or hereinafter have to the laying of the venue in New York County, New York in any such action, suit or proceeding, and irrevocably submits to the jurisdiction of any such court in any such action, suit or proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Amendment</u>. This Lease shall not be modified or amended or any provision waived except by an instrument in writing signed by authorized representatives of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Counterparts</u>. This Lease may for all purposes be executed in several counterparts, each of which shall be deemed an original, and all such counterparts, taken together, shall constitute the same instrument, even though all parties may not have executed the same counterpart of this Lease. Each party may transmit its signature by confirmed facsimile or PDF transmission, and such signatures shall have the same force and effect as an original signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Successors and Assigns; Third-Party Beneficiaries</u>. Neither party shall have the right to assign this Lease without the prior written consent of the other party; provided, however, that (i) Lessor shall have the right, upon notice to Lessee, to assign this Lease to any other direct or indirect wholly-owned subsidiary of Lessor provided any such assignments hereunder and the resulting ownership and operational structure are consistent with applicable FARs, and (ii) Lessee shall have the right, upon notice to Lessor, to assign this Lease to any entity controlling, controlled by, or under common control with, The Madison Square Garden Company. This Lease shall be binding upon the parties hereto and their respective heirs, executors, administrators, successors and assigns, and shall inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and permitted assigns. This Lease shall not be construed to create any third-party beneficiary rights in any person not a party hereto (or a successor to or permitted assign of any such party).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Integration</u>. This Lease sets forth the entire agreement between the parties with respect to the subject matter hereof and supersedes any and all other agreements, understandings, communications, representations or negotiations, whether oral or written, between the parties with respect to the lease of the Aircraft. There are no other agreements, representations or warranties, whether oral or written, express or implied, relating to the lease of the Aircraft that are not expressly set forth in this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>Legal Fees and Other Costs and Expenses</u>. In the event of any dispute, litigation or arbitration between the parties with respect to the subject matter of this Lease, the unsuccessful party to such dispute, litigation or arbitration shall pay to the successful party all costs and expenses, including, without limitation, reasonable attorneys' fees, incurred therein by the successful party, all of which shall be included in and as a part of the judgment or award rendered in such dispute, litigation or arbitration. For purposes of this Lease, the term "successful party" shall mean the party which achieves substantially the relief sought, whether by judgment, order, settlement or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. <u>WAIVER OF JURY TRIAL</u>. EACH PARTY HEREBY KNOWINGLY AND VOLUNTARILY WAIVES ITS RIGHTS TO A JURY TRIAL IN ANY ACTION, SUIT OR PROCEEDING RELATING TO, ARISING UNDER OR IN CONNECTION WITH THIS LEASE AND ANY OTHER DOCUMENT, AGREEMENT OR INSTRUMENT EXECUTED AND/OR DELIVERED IN CONNECTION WITH THE FOREGOING.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. TRUTH IN LEASING. TRUTH IN LEASING STATEMENT UNDER SECTION 91.23 OF THE FEDERAL AVIATION REGULATIONS:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) LESSOR HEREBY CERTIFIES THAT THE AIRCRAFT HAS BEEN MAINTAINED AND INSPECTED UNDER FAR PART 91 DURING THE 12-MONTH PERIOD PRECEDING THE DATE OF EXECUTION OF THIS LEASE. THE AIRCRAFT WILL BE MAINTAINED AND INSPECTED UNDER FAR PART 91 FOR ALL OPERATIONS TO BE CONDUCTED DURING LEASE PERIODS UNDER THIS LEASE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) LESSEE HEREBY CERTIFIES THAT IT IS RESPONSIBLE FOR OPERATIONAL CONTROL OF THE AIRCRAFT DURING ALL LEASE PERIODS UNDER THIS LEASE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) EACH OF LESSOR AND LESSEE CERTIFIES THAT IT UNDERSTANDS ITS RESPONSIBILITIES FOR COMPLIANCE WITH APPLICABLE FEDERAL AVIATION REGULATIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) EACH OF LESSOR AND LESSEE UNDERSTANDS THAT AN EXPLANATION OF THE FACTORS BEARING ON OPERATIONAL CONTROL AND THE PERTINENT FEDERAL AVIATION REGULATIONS CAN BE OBTAINED FROM THE NEAREST FAA FLIGHT STANDARDS DISTRICT OFFICE.

Instructions for Compliance with "Truth In Leasing" Requirements are attached hereto as Schedule 2.

**(SIGNATURE PAGE FOLLOWS)** 

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IN WITNESS WHEREOF, the parties hereto have executed this Aircraft Dry Lease Agreement this 6th day of May, 2019, effective as of the date first written above.

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| | |
|:---|:---|
| LESSOR: | LESSOR: |
| BRIGHID AIR, LLC | BRIGHID AIR, LLC |
| By: | /s/ Dennis H. Javer |
|  | Name: Dennis H. Javer |
|  | Title: Vice President |
| LESSEE: | LESSEE: |
| MSG SPORTS & ENTERTAINMENT, LLC | MSG SPORTS & ENTERTAINMENT, LLC |
| By: | /s/ Victoria M. Mink |
|  | Name: Victoria M. Mink |
|  | Title: EVP & Chief Financial Officer |

---

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<u>SCHEDULE 1</u> 

Rent per block hour: $3,045

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<u>SCHEDULE 2</u> 

<u>INSTRUCTIONS FOR COMPLIANCE WITH "TRUTH IN LEASING" REQUIREMENTS</u> 

1. Mail a copy of this Lease to the following address via certified mail, return receipt requested, immediately upon execution of this Lease (14 C.F.R. 91.23 requires that the copy be sent within twenty-four (24) hours after it is signed):

Federal Aviation Administration

Aircraft Registration Branch

ATTN: Technical Section

P.O. Box 25724

Oklahoma City, Oklahoma 73125

2. Telephone or fax the nearest Flight Standards District Office at least forty-eight (48) hours prior to the first flight made under this Lease.

3. Carry a copy of this Lease in the Aircraft at all times when the Aircraft is being operated under this Lease.

## Exhibit 10.36

**Exhibit 10.36** 

<u>AMENDMENT NO.1 TO</u> 

<u>AIRCRAFT DRY LEASE AGREEMENT</u> 

This AMENDMENT NO. 1 TO THE AIRCRAFT DRY LEASE AGREEMENT (this "<u>Amendment</u>") is entered into effective as of August 18, 2022, by and between MSG ENTERTAINMENT GROUP, LLC (f/k/a MSG SPORTS & ENTERTAINMENT, LLC), a Delaware limited liability company with an address at 2 Pennsylvania Plaza, New York, New York 10121 ("<u>Lessee</u>") and BRIGHID AIR, LLC, a New York limited liability company with an address at 340 Crossways Park Drive, Woodbury, New York 11797 ("<u>Lessor</u>"). Capitalized terms used but not defined elsewhere in this Amendment have the meanings assigned to them in the Aircraft Dry Lease Agreement, effective as of May 6, 2019, by and between Lessor and Lessee (the "<u>Aircraft Dry Lease Agreement</u>").

<u>RECITALS</u> 

WHEREAS, pursuant to <u>Section 20</u> of the Aircraft Dry Lease Agreement, Lessor and Lessee desire to amend the Aircraft Dry Lease Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, agree as follows:

**ARTICLE I** 

AMENDMENTS TO AIRCRAFT DRY LEASE AGREEMENT

Section 1.1. The first sentence of <u>Section 3</u> of the Aircraft Dry Lease Agreement is hereby amended and replaced in its entirety by the following:

Lessor shall pay the entire cost of insuring and maintaining the Aircraft during the Term.

Section 1.2. The last sentence of <u>Section 15</u> of the Aircraft Dry Lease Agreement is hereby amended and replaced by the following:

Routine communications may be made by e-mail to Lessor at officer@dfollc.com and to Lessee at guido.visconti@msg.com and legalnotices@msg.com or fax to Lessor at (516) 226-1155 and to Lessee at (516) 927-1101.

Section 1.3. The last sentence of <u>Section 21</u> of the Aircraft Dry Lease Agreement is hereby amended by adding the following after "PDF transmission": "or other electronic transmission service (e.g., DocuSign)".

Section 1.4. The first sentence of <u>Section 22</u> of the Aircraft Dry Lease Agreement is hereby amended by replacing "The Madison Square Garden Company" with "Madison Square Garden Entertainment Corp."

Section 1.5. <u>Schedule 1</u> of the Aircraft Dry Lease Agreement is hereby deleted and replaced in its entirety by:

Rent per block hour: $2,351 + an amount equal to actual fuel cost per hour for such Lessee flight during such Lease Period.

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**ARTICLE II** 

<u>MISCELLANEOUS</u> 

Section 2.1. Except as expressly modified and superseded by this Amendment, the Aircraft Dry Lease Agreement shall continue to be in full force and effect in accordance with its terms. After the date of this Amendment, all references to the "Aircraft Dry Lease Agreement" or phrases with similar meaning shall refer to the Aircraft Dry Lease Agreement as amended by this Amendment.

Section 2.2. The provisions of <u>Section 18</u>, <u>Section 19</u>, <u>Section 20</u> and <u>Section 21</u> of the Aircraft Dry Lease Agreement shall apply *mutatis mutandis* to this Amendment.

[*Signature page follows.*]

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IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first above written.

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| | |
|:---|:---|
| LESSOR: | LESSOR: |
| **BRIGHID AIR, LLC** | **BRIGHID AIR, LLC** |
| By: | /s/ Dennis H. Javer |
|  | Name: Dennis H. Javer |
|  | Title: Vice President |

---

[Signature Page to Amendment No. 1 to Aircraft Dry Lease Agreement]

------

---

| | |
|:---|:---|
| LESSEE: | LESSEE: |
| **MSG ENTERTAINMENT GROUP, LLC** | **MSG ENTERTAINMENT GROUP, LLC** |
| By: | /s/ David F. Byrnes |
|  | Name: David F. Byrnes |
|  | Title: Executive Vice President & Chief Financial Officer |

---

[Signature Page to Amendment No. 1 to Aircraft Dry Lease Agreement]

## Exhibit 10.37

**Exhibit 10.37** 

<u>TIME SHARING AGREEMENT</u> 

THIS TIME SHARING AGREEMENT (this "Agreement") is entered into effective as of December 20, 2021, by and between MSG Entertainment Group, LLC, a Delaware limited liability company with an address at Two Pennsylvania Plaza, New York, New York 10121 ("Lessor"), and Charles F. Dolan, an individual with an address at c/o Dolan Family Office, LLC, 340 Crossways Park Drive, Woodbury, NY 11797 ("Lessee").

<u>W</u> <u>I</u> <u>T</u> <u>N</u> <u>E</u> <u>S</u> <u>S</u> <u>E</u> <u>T</u> <u>H</u>:

WHEREAS, Lessor is the lessee and the operator of a Gulfstream Aerospace GV-SP (G550) aircraft, manufacturer's serial number 5465, United States registration N5465M (the "Aircraft"); and

WHEREAS, Lessor has employed or engaged a fully-qualified and credentialed flight crew to operate the Aircraft; and

WHEREAS, Lessor has agreed to lease the Aircraft, with flight crew, to Lessee on a "time sharing" basis as defined in Section 91.501(c)(1) of the Federal Aviation Regulations ("FAR") upon the terms and subject to the conditions set forth herein;

NOW, THEREFORE, in consideration of the foregoing premises, and the covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, Lessor and Lessee, intending to be legally bound, hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Lease of Aircraft</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Lessor agrees to lease the Aircraft to Lessee pursuant to the provisions of FAR Section 91.501(b)(6) and Section 91.501(c)(1) and this Agreement, and to provide a fully-qualified and credentialed flight crew for all flights to be conducted hereunder during the Term (as defined in Section 13) hereof. The parties acknowledge and agree that this Agreement did not result in any way from any direct or indirect advertising, holding out or soliciting on the part of Lessor or any person purportedly acting on behalf of Lessor. Lessor and Lessee intend that the lease of the Aircraft effected by this Agreement shall be treated as a "wet lease" pursuant to which Lessor provides transportation services to Lessee in accordance with FAR Section 91.501(b)(6) and Section 91.501(c)(1). Lessee acknowledges that this Agreement is subject to and subordinate to the master lease agreement pursuant to which Lessor leases the Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, the parties agree that if a trip by Lessee causes or will cause the Aircraft to be at a remote location away from Republic Airport, Farmingdale, New York ("Lessee's Location"), Lessee shall, at Lessor's request, permit the Aircraft to be relocated from Lessee's Location to Republic Airport, Farmingdale, New York or other location designated by Lessor (and thereafter shall be returned to Lessee's Location) if Lessor requires use of the Aircraft directly or for one of its affiliated non-exclusive lessees, but only if such itinerary will not unreasonably delay or interfere with any scheduled flight by Lessee. In that event, (i) Lessee's then current Lease of the Aircraft shall terminate effective as of initial engine start-up for the departure flight from Lessee's Location; (ii) Lessor or its affiliated non-exclusive lessee shall pay all costs incurred during the period in which the Aircraft is away from Lessee's Location, including all occupied and deadhead legs to ferry the Aircraft from Lessee's Location and back; and (iii) a new lease by Lessee shall begin effective as of final engine shut-down upon return of the Aircraft to Lessee's Location.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payment for Use of Aircraft</u>. Lessee shall pay Lessor the following actual expenses of each flight conducted under this Agreement, not to exceed the maximum amount legally payable for such flight under FAR Section 91.501(d)(1)-(10):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) fuel, oil, lubricants and other additives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) travel expenses of crew, including food, lodging and ground transportation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) hangar and tie-down costs away from the Aircraft's base of operation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) additional insurance obtained for the specific flight at the request of Lessee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) landing fees, airport taxes and similar assessments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) customs, foreign permit and similar fees directly related to the flight;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) in-flight food and beverages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) in-flight telecommunication expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) passenger ground transportation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) flight planning and weather contract services.

Lessee shall be obligated to reimburse Lessor for the actual expenses set forth in Section 2(a)-(j) for occupied legs and for deadhead flights. Nothing herein shall prevent Lessor from utilizing empty space on any flight leg in which case Lessor and Lessee agree to adjust in good faith the expenses of any such flight segment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Operational Control of Aircraft</u>. Lessor and Lessee intend and agree that on all flights conducted under this Agreement, Lessor shall have complete and exclusive operational control over the Aircraft, its flight crews and maintenance, and complete and exclusive possession, command and control of the Aircraft. Lessor shall have complete and exclusive responsibility for scheduling, dispatching and flight following of the Aircraft on all flights conducted under this Agreement, which responsibility includes the sole and exclusive right over initiating, conducting and terminating such flights. Lessee shall have no responsibility for scheduling, dispatching or flight following on any flight conducted under this Agreement, nor any right over initiating, conducting or terminating any such flight. Nothing in this Agreement is intended or shall be construed so as to convey to Lessee any operational control over, or possession, command and control of, the Aircraft, all of which are expressly retained by Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Scheduling</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Lessee will provide Lessor with requests for flight time and proposed flight schedules as far in advance of any given flight as possible. Lessee or the designated authorized representative(s) of Lessee shall submit scheduling requests under this Agreement to the designated authorized representative(s) of Lessor. Requests for flight time shall be in such form (whether oral or written) mutually convenient to, and agreed upon by, the parties. In addition to proposed schedules and flight times, Lessee shall upon request provide Lessor with the following information for each proposed flight prior to scheduled departure: (i) proposed departure point; (ii) destination; (iii) date and time of flight; (iv) the number of anticipated passengers; (v) the nature and extent of luggage to be carried; (vi) the date and time of a return flight, if any; and (vii) any other pertinent information concerning the proposed flight that Lessor or the flight crew may request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to Aircraft and crew availability and to any usage limitations established by Lessor, Lessor shall use its good faith efforts, consistent with Lessor's approved policies, in order to accommodate the needs of Lessee, to avoid conflicts in scheduling, and to enable Lessee to enjoy the benefits of this Agreement; however, Lessee acknowledges and agrees that notwithstanding anything in this Agreement to the contrary, (i) Lessor shall have sole and exclusive final authority over the scheduling of the Aircraft; and (ii) the needs of Lessor for the Aircraft shall take precedence over Lessee's rights and Lessor's obligations under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Although every good faith effort shall be made to avoid its occurrence, any flight scheduled under this Agreement is subject to cancellation by either party without incurring liability to the other party. In the event that cancellation is necessary, the canceling party shall provide the maximum notice practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Billing</u>. Lessor shall pay all expenses relating to the operation of the Aircraft under this Agreement (in accordance with Section 2 hereof) on a monthly basis. Promptly after execution of this Agreement, Lessee agrees to maintain with Lessor an appropriate agreed-upon advance deposit, to be applied by Lessor against any amounts payable by Lessee under this Agreement. As soon as possible after the end of each monthly period during the Term, Lessor shall provide to Lessee an invoice showing all use of the Aircraft by Lessee under this Agreement during that month and a complete accounting detailing all amounts payable by Lessee pursuant to Section 2 for that month, including such detail supporting all expenses paid or incurred on Lessee's behalf and the amount required to replenish the advance deposit to the agreed amount. Lessee shall pay all amounts due to Lessor under this Section 5 not later than thirty (30) days after receipt of the invoice therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Maintenance of Aircraft</u>. Lessor shall be solely responsible for securing maintenance, preventive maintenance and inspections of the Aircraft (utilizing an inspection program listed in FAR Section 91.409(f)), and shall take such requirements into account in scheduling the Aircraft hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Flight Crew</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Lessor shall employ or engage and pay all salaries, benefits and/or compensation for a fully-qualified flight crew with appropriate credentials to conduct each flight undertaken under this Agreement. Lessor may use temporary flight crewmembers for a flight under this Agreement only if any such temporary crewmember is FlightSafety (or SimuFlite) trained, is current on the Aircraft and satisfies all of the requirements and conditions under the insurance coverage for the Aircraft. All flight crewmembers shall be included on any insurance policies that Lessor is required to maintain hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The qualified flight crew provided by Lessor shall exercise all of its duties and responsibilities with regard to the safety of each flight conducted hereunder in accordance with applicable FARs. The Aircraft shall be operated under the standards and policies established by Lessor. Final authority to initiate or terminate each flight, and otherwise to decide all matters relating to the safety of any given flight or requested flight, shall rest with the pilot-in -command of that flight. The pilot-in-command may, in its sole discretion, terminate any flight, refuse to commence any flight, or take any other action that, in the judgment of the pilot-in-command, is necessitated by considerations of safety. No such termination or refusal to commence by the pilot-in- command shall create or support any liability for loss, injury, damage or delay in favor of Lessee or any other person. Lessor shall not be liable to Lessee or any other person for loss, injury or damage occasioned by the delay or failure to furnish the Aircraft and flight crew pursuant to this Agreement for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At all times during the Term of this Agreement, Lessor shall maintain (or cause to be maintained) at its sole cost and expense (i) all risk, both ground and in-flight hull, including hull war risks, insurance in an amount equal to the most recent appraised fair market value of the Aircraft; and (ii) liability coverage covering passengers, non-passengers, third party liability (including war risk AV 52) and property damage of not less than three hundred million ($300,000,000) United States dollars for each occurrence but sublimited to twenty five million ($25,000,000) United States dollars for each occurrence and aggregate with respect to Personal Injury Liability.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any policies of aircraft and liability insurance carried in accordance with this Section 8 and any policies taken out in substitution or replacement of any such policies (i) shall name Lessee and his employees, agents, licensees and guests as additional insureds (without responsibility for premiums) with respect to the liability coverage; (ii) shall waive any right of set-off and any right of subrogation against any of the additional insureds; (iii) shall provide for thirty (30) days written notice to Lessee by such insurer of cancellation, change, non-renewal or reduction (seven (7) days in the case of war risk and allied perils coverage or such shorter period as is customarily available in the industry); (iv) shall be primary, not subject to any co-insurance clause, not contributory or subject to offset with respect to any other policies in force; and (vi) shall include a severability of interest clause providing that the policies will operate in the same manner to give each insured the same protection as if there were a separate policy issued to each insured except for the limit of liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Lessor shall use reasonable commercial efforts to provide such additional insurance coverage for specific flights under this Agreement, if any, as Lessee may request in writing. Lessee also acknowledges that any trips scheduled to the European Union may require Lessor to purchase additional insurance to comply with local regulations. The cost of all additional flight-specific insurance shall be borne by Lessee as set forth in Section 2(d) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each party agrees that it will not do any act or voluntarily suffer or permit any act to be done whereby any insurance required hereunder shall or may be suspended, impaired or defeated. In no event shall Lessor suffer or permit the Aircraft to be used or operated under this Agreement without such insurance being fully in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Lessor shall ensure that worker's compensation insurance with all-states coverage is provided for the Aircraft's crew and maintenance personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Lessor shall deliver certificates of insurance to Lessee with respect to the insurance required or permitted to be provided by it hereunder not later than the first flight of the Aircraft under this Agreement and upon the renewal date of each policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Taxes</u>. Lessee shall be responsible for paying, and Lessor shall be responsible for collecting from Lessee and paying over to the appropriate authorities, all applicable Federal transportation taxes and sales, use or other excise taxes imposed by any governmental authority in connection with any use of the Aircraft by Lessee hereunder. Each party shall indemnify the other party against any and all claims, liabilities, costs and expenses (including attorney's fees as and when incurred) arising out of its breach of this undertaking.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Lessee's Representations and Warranties</u>. Lessee represents and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) He will not use the Aircraft for the purposes of providing transportation of passengers or cargo in air commerce for compensation or hire or for common carriage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) He shall refrain from incurring any mechanic's or other liens in connection with inspection, preventive maintenance, maintenance or storage of the Aircraft, and shall not attempt to convey, mortgage, assign, lease or in any way alienate the Aircraft or create any kind of lien or security interest involving the Aircraft or do anything or take any action that might mature into such a lien.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) He shall not lien or otherwise encumber or create or place any lien or other encumbrance of any kind whatsoever, on or against the Aircraft for any reason. He also will ensure that no liens or encumbrances of any kind whatsoever are created or placed against the Aircraft for claims against Lessee or by Lessee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) He will abide by and conform to all laws, governmental and airport orders, rules and regulations, as shall be imposed upon the lessee of an aircraft under a time sharing agreement, and applicable company policies of Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Lessor's Representations and Warranties</u>. Lessor represents and warrants that it will abide by and conform to all such laws, governmental and airport orders, rules and regulations, as shall from time to time be in effect relating in any way to the operation and use of the Aircraft pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Disclaimer of Warranties</u>. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, LESSOR HAS MADE NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE AIRCRAFT, INCLUDING ANY WITH RESPECT TO ITS CONDITION, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR TO ANY OTHER PERSON FOR ANY INCIDENTIAL, CONSEQUENTIAL OR SPECIAL DAMAGES, HOWEVER ARISING.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Term</u>. The term of this Agreement (the "Term") shall commence on the effective date hereof and expire on June 30, 2022, and thereafter shall automatically renew for successive one-year terms unless either party provides written notice not less than 30 days prior to the expiration of the current term. Notwithstanding the foregoing, (i) this Agreement shall terminate effective on the date specified in a written notice from Lessor to Lessee to the effect that Lessor no longer operates any aircraft, which notice shall be given by Lessor to Lessee as soon as reasonably practicable after Lessor becomes aware that such is or will be the case, (ii) Lessor shall have the right to terminate this Agreement upon termination of that certain Aircraft Dry Lease Agreement, effective as of July 1, 2018, between Lessor and Lessee, for Lessor's use of Lessee's Gulfstream Aerospace G-V aircraft, manufacturer's serial number 639, United States registration N501CV, and (iii) either party shall have the right to terminate this Agreement (a) immediately upon breach of the terms of this Agreement by the other party, or (b) for any reason or no reason by written notice given to the other party not less than ten (10) days prior to the proposed termination date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Limitation of Liability</u>. The parties, for themselves and on behalf of their representatives, guests, invitees, licensees and employees, covenant and agree that the insurance described in Section 8 hereof shall be the sole recourse for any and all liabilities, claims, demands, suits, causes of action, losses, penalties, fines, expenses or damages, including attorneys fees, court costs and witness fees, attributable to the use, operation or maintenance of the Aircraft pursuant to this Agreement or performance of or failure to perform any obligation under this Agreement, except in the event that Lessor fails to obtain and maintain the insurance required hereunder or in the event of the gross negligence of the party at fault.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Relationship of Parties</u>. Lessor is strictly an independent contractor lessor/provider of transportation services with respect to Lessee. Nothing in this Agreement is intended, nor shall it be construed so as, to constitute the parties as partners or joint venturers or principal and agent. All persons furnished by Lessor for the performance of the operations and activities contemplated by this Agreement shall at all times and for all purposes be considered Lessor's employees or agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Governing Law; Severability</u>. This Agreement shall be governed by and interpreted in accordance with the laws of the State of New York, determined without regard to its conflicts of laws principles. If any provision of this Agreement conflicts with any statute or rule of law of the State of New York, or is otherwise unenforceable, such provision shall be deemed null and void only the extent of such conflict or unenforceability, and shall be deemed separate from, and shall not invalidate, any other provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Amendment</u>. This Agreement may not be amended, supplemented, modified or terminated, or any of its terms varied, except by an agreement in writing signed by each of the parties hereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Counterparts</u>. This Time Sharing Agreement may for all purposes be executed in several counterparts, each of which shall be deemed an original, and all such counterparts, taken together, shall constitute the same instrument, even though all parties may not have executed the same counterpart of this Agreement. Each party may transmit its signature by confirmed facsimile or PDF transmission, and such signatures shall have the same force and effect as an original signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Successors and Assigns</u>. This Time Sharing Agreement shall be binding upon the parties hereto, and their respective heirs, executors, administrators, other legal representatives, successors and assigns, and shall inure to the benefit of the parties hereto, and, except as otherwise provided herein, to their respective heirs, executors, administrators, other legal representatives, successors and permitted assigns. Lessee agrees that he shall not directly or indirectly sublease, assign, transfer, pledge or hypothecate this Agreement or any part hereof (including any assignment or transfer pursuant to the laws of intestacy) without the prior written consent of Lessor, which may be given or withheld by Lessor in its sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Notices</u>. All notices or other communications delivered or given under this Agreement shall be in writing and shall be deemed to have been duly given if hand- delivered, sent by certified or registered mail, return receipt requested, or nationally-utilized overnight delivery service, PDF or confirmed facsimile transmission, as the case may be. Such notices shall be addressed to the parties at the addresses set forth above, or to such other address as may be designated by any party in a writing delivered to the other in the manner set forth in this Section 20. In the case of notices to Lessor, a copy of each such notice shall be sent via email to <u>legalnotices@msg.com</u>. Notices sent by certified or registered mail shall be deemed received three (3) business days after being mailed. All other notices shall be deemed received on the date delivered. Routine communications may be made by e-mail to Lessor at <u>phil.stang@msg.com</u> and to Lessee at officer@dfollc.com.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Truth-in-Leasing Compliance</u>. Lessor, on behalf of Lessee, shall (i) mail a copy of this Agreement to the Aircraft Registration Branch, Technical Section, of the FAA in Oklahoma City within twenty four (24) hours of its execution; (ii) notify the nearest Flight Standards District Office at least forty-eight (48) hours prior to the first flight by Lessor under this Agreement of the registration number of the Aircraft, and the location of the airport of departure and departure time of the first flight; and (iii) carry a copy of this Agreement onboard the Aircraft at all times when the Aircraft is being operated under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>TRUTH IN LEASING STATEMENT UNDER FAR SECTION 91.23</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) LESSOR HEREBY CERTIFIES THAT THE AIRCRAFT HAS BEEN MAINTAINED AND INSPECTED UNDER FAR PART 91 DURING THE 12-MONTH PERIOD PRECEDING THE DATE OF EXECUTION OF THIS AGREEMENT OR SINCE ITS MANUFACTURE. THE AIRCRAFT WILL BE MAINTAINED AND INSPECTED IN COMPLIANCE WITH THE MAINTENANCE AND INSPECTION REQUIREMENTS OF FAR PART 91 FOR ALL OPERATIONS TO BE CONDUCTED UNDER THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) LESSOR HEREBY CERTIFIES THAT IT IS RESPONSIBLE FOR OPERATIONAL CONTROL OF THE AIRCRAFT FOR ALL OPERATIONS UNDER THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) EACH PARTY HEREBY CERTIFIES THAT IT UNDERSTANDS ITS RESPONSIBILITIES FOR COMPLIANCE WITH APPLICABLE FEDERAL AVIATION REGULATIONS.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) THE PARTIES UNDERSTAND THAT AN EXPLANATION OF THE FACTORS BEARING ON OPERATIONAL CONTROL AND THE PERTINENT FEDERAL AVIATION REGULATIONS CAN BE OBTAINED FROM THE NEAREST FAA FLIGHT STANDARDS DISTRICT OFFICE.

[*The remainder of this page has been left blank*]

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IN WITNESS WHEREOF, Lessor and Lessee have executed this Time Sharing Agreement effective as of the date first above written.

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| | |
|:---|:---|
| LESSOR: | LESSOR: |
| MSG Entertainment Group, LLC | MSG Entertainment Group, LLC |
| By: | /s/ Mark H. FitzPatrick |
| Name: | Mark H. FitzPatrick |
| Title: | EVP & Chief Financial Officer |
| LESSEE: | LESSEE: |
| /s/ Charles F. Dolan | /s/ Charles F. Dolan |
| Charles F. Dolan | Charles F. Dolan |

---

## Exhibit 10.38

**Exhibit 10.38** 

<u>TIME SHARING AGREEMENT</u> 

THIS TIME SHARING AGREEMENT (this "Agreement") is entered into effective as of December 20, 2021, by and between Patrick F. Dolan, an individual with an address at c/o Dolan Family Office, LLC, 340 Crossways Park Drive, Woodbury, New York 11797 ("Lessor"), and MSG Entertainment Group, LLC, a Delaware limited liability company with a place of business at Two Pennsylvania Plaza, New York, New York 10121 ("Lessee").

<u>W</u> <u>I</u> <u>T</u> <u>N</u> <u>E</u> <u>S</u> <u>S</u> <u>E</u> <u>T</u> <u>H</u>:

WHEREAS, Lessor is a non-exclusive lessee and Part 91 operator of a Bombardier BD100-1A10 Challenger 350 aircraft, manufacturer's serial number 20611, United States registration N350PD (the "Aircraft");

WHEREAS, Lessor has employed or engaged a fully-qualified and credentialed flight crew to operate the Aircraft; and

WHEREAS, Lessor has agreed to lease the Aircraft, with flight crew, to Lessee on a "time sharing" basis as defined in Section 91.501(c)(1) of the Federal Aviation Regulations ("FAR") upon the terms and subject to the conditions set forth herein;

NOW, THEREFORE, in consideration of the foregoing premises, and the covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, Lessor and Lessee, intending to be legally bound, hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Lease of Aircraft</u>. Lessor agrees to lease the Aircraft to Lessee pursuant to the provisions of FAR Section 91.501(b)(6) and Section 91.501(c)(1) and this Agreement, and to provide a fully-qualified and credentialed flight crew for all flights to be conducted hereunder during the Term (as defined in Section 13) hereof. The parties acknowledge and agree that this Agreement did not result in any way from any direct or indirect advertising, holding out or soliciting on the part of Lessor or any person purportedly acting on behalf of Lessor. Lessor and Lessee intend that the lease of the Aircraft effected by this Agreement shall be treated as a "wet lease" pursuant to which Lessor provides transportation services to Lessee in accordance with FAR Section 91.501(b)(6) and Section 91.501(c)(1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payment for Use of Aircraft</u>. Lessee shall pay Lessor the following actual expenses of each flight conducted under this Agreement, not to exceed the maximum amount legally payable for such flight under FAR Section 91.501(d)(1)-(10):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) fuel, oil, lubricants and other additives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) travel expenses of crew, including food, lodging and ground transportation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) hangar and tie-down costs away from the Aircraft's base of operation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) additional insurance obtained for the specific flight at the request of Lessee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) landing fees, airport taxes and similar assessments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) customs, foreign permit and similar fees directly related to the flight;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) in-flight food and beverages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) passenger ground transportation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) flight planning and weather contract services; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) An additional charge equal to 100 percent of the expenses listed in paragraph (2)(a) of this section.

Lessee shall be obligated to reimburse Lessor for the actual expenses set forth in Section 2(a)-(i) for occupied legs and for deadhead flights. Nothing herein shall prevent Lessor from utilizing empty space on any flight leg in which case Lessor and Lessee agree to adjust in good faith the expenses of any such flight segment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Operational Control of Aircraft</u>. Lessor and Lessee intend and agree that on all flights conducted under this Agreement, Lessor shall have complete and exclusive operational control over the Aircraft, its flight crews and maintenance, and complete and exclusive possession, command and control of the Aircraft. Lessor shall have complete and exclusive responsibility for scheduling, dispatching and flight following of the Aircraft on all flights conducted under this Agreement, which responsibility includes the sole and exclusive right over initiating, conducting and terminating such flights. Lessee shall have no responsibility for scheduling, dispatching or flight following on any flight conducted under this Agreement, nor any right over initiating, conducting or terminating any such flight. Nothing in this Agreement is intended or shall be construed so as to convey to Lessee any operational control over, or possession, command and control of, the Aircraft, all of which are expressly retained by Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Scheduling</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Lessee will provide Lessor with requests for flight time and proposed flight schedules as far in advance of any given flight as possible. Lessee or the designated authorized representative(s) of Lessee shall submit scheduling requests under this Agreement to the designated authorized representative(s) of Lessor. Requests for flight time shall be in such form (whether oral or written) mutually convenient to, and agreed upon by, the parties. In addition to proposed schedules and flight times, Lessee shall upon request provide Lessor with the following information for each proposed flight prior to scheduled departure: (i) proposed departure point; (ii) destination; (iii) date and time of flight; (iv) the number of anticipated passengers; (v) the nature and extent of luggage to be carried; (vi) the date and time of a return flight, if any; and (vii) any other pertinent information concerning the proposed flight that Lessor or the flight crew may request. Prior to each flight under this agreement, Lessor and Lessee shall acknowledge that the flight will be operated under the terms of this agreement and notify the flight department managing the Aircraft of the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to Aircraft and crew availability and to any usage limitations established by Lessor, Lessee's use of the Aircraft hereunder shall be subject to Lessor's sole discretion; in addition, (i) Lessor shall have sole and exclusive final authority over the scheduling of the Aircraft; and (ii) the needs of Lessor (or other operators or lessees of the Aircraft) for the Aircraft shall take precedence over Lessee's rights and Lessor's obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Although every good faith effort shall be made to avoid its occurrence, any flight scheduled under this Agreement is subject to cancellation by either party without incurring liability to the other party, except for costs and expenses (including but not limited to the items in Section 2(a)-(j)) incurred for the flight that are not reasonably recoverable, which shall be borne by the party canceling the flight. In the event of cancellation, the canceling party shall provide the maximum notice practicable to the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Billing</u>. Lessor shall pay all expenses relating to the operation of the Aircraft under this Agreement on a monthly basis. As soon as reasonably practicable after the end of each monthly period during the Term, Lessor shall provide to Lessee an invoice showing all use of the Aircraft by Lessee under this Agreement during that month and a complete accounting detailing all amounts payable by Lessee pursuant to Section 2 for that month, including such detail supporting all expenses paid or incurred by Lessor for which reimbursement is sought as Lessee may reasonably request. Lessee shall pay all amounts due to Lessor under this Section 5 not later than thirty (30) days after receipt of the invoice therefor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Maintenance of Aircraft</u>. Lessor shall be solely responsible for securing maintenance, preventive maintenance and inspections of the Aircraft (utilizing an inspection program listed in FAR Section 91.409(f)), and shall take such requirements into account in scheduling the Aircraft hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Flight Crew</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Lessor shall employ or engage and pay all salaries, benefits and/or compensation for a fully-qualified flight crew with appropriate credentials to conduct each flight undertaken under this Agreement. Lessor may use temporary flight crewmembers for a flight under this Agreement only if any such temporary crewmember is FlightSafety (or SimuFlite) trained, is current on the Aircraft and satisfies all of the requirements and conditions under the insurance coverage for the Aircraft. All flight crewmembers shall be included on any insurance policies that Lessor is required to maintain hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The qualified flight crew provided by Lessor shall exercise all of its duties and responsibilities with regard to the safety of each flight conducted hereunder in accordance with applicable FARs. The Aircraft shall be operated under the standards and policies established by Lessor. Final authority to initiate or terminate each flight, and otherwise to decide all matters relating to the safety of any given flight or requested flight, shall rest with the pilot-incommand of that flight. The pilot-in-command may, in its sole discretion, terminate any flight, refuse to commence any flight, or take any other action that, in the judgment of the pilot-incommand, is necessitated by considerations of safety. No such termination or refusal to commence by the pilot-in-command shall create or support any liability for loss, injury, damage or delay in favor of Lessee or any other person. Lessor shall not be liable to Lessee or any other person for loss, injury or damage occasioned by the delay or failure to furnish the Aircraft and flight crew pursuant to this Agreement for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At all times during the Term of this Agreement, Lessor shall maintain at its sole cost and expense (i) comprehensive aircraft and liability insurance against bodily injury and property damage claims, including, without limitation, contractual liability, premises damage, personal property liability, personal injury liability, death and property damage liability, public and passenger legal liability coverage, in an amount not less than $100,000,000 for each single occurrence and (ii) hull insurance for the full replacement cost of the aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any policies of aircraft and liability insurance carried in accordance with this Section 8 and any policies taken out in substitution or replacement of any such policies (i) shall name Lessee and its affiliates and each of their respective members, managers, shareholders, officers, directors, partners, employees, agents, licensees and guests as additional insureds (without responsibility for premiums) with respect to the liability coverage; (ii) shall waive any right of set-off and any right of subrogation against any of the additional insureds; (iii) shall provide for thirty (30) days written notice to Lessee by such insurer of cancellation, change, non-renewal or reduction (seven (7) days in the case of war risk and allied perils coverage or such shorter period as is customarily available in the industry); (iv) shall be primary, not subject to any co-insurance clause, not contributory or subject to offset with respect to any other policies in force; and (v) shall include a severability of interest clause providing that the policies will operate in the same manner to give each insured the same protection as if there were a separate policy issued to each insured except for the limit of liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Lessor shall use reasonable commercial efforts to provide such additional insurance coverage for specific flights under this Agreement, if any, as Lessee may request in writing.

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Lessee also acknowledges that any trips scheduled to the European Union may require Lessor to purchase additional insurance to comply with local regulations. The cost of all additional flight-specific insurance shall be borne by Lessee as set forth in Section 2(d) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each party agrees that it will not do any act or voluntarily suffer or permit any act to be done whereby any insurance required hereunder shall or may be suspended, impaired or defeated. In no event shall Lessor suffer or permit the Aircraft to be used or operated under this Agreement without such insurance being fully in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Lessor shall ensure that worker's compensation insurance with all-states coverage is provided for the Aircraft's crew and maintenance personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Lessor shall deliver certificates of insurance to Lessee with respect to the insurance required or permitted to be provided by it hereunder not later than the first flight of the Aircraft under this Agreement and upon the renewal date of each policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Taxes</u>. Lessee shall be responsible for paying, and Lessor shall be responsible for collecting from Lessee and paying over to the appropriate authorities, all applicable Federal transportation taxes and sales, use or other excise taxes imposed by any governmental authority in connection with any use of the Aircraft by Lessee hereunder. Each party shall indemnify the other party against any and all claims, liabilities, costs and expenses (including attorney's fees as and when incurred) arising out of its breach of this undertaking.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Lessee's Representations and Warranties</u>. Lessee represents and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) It will not use the Aircraft for the purposes of providing transportation of passengers or cargo in air commerce for compensation or hire or for common carriage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) It shall refrain from incurring any mechanic's or other liens in connection with inspection, preventive maintenance, maintenance or storage of the Aircraft, and shall not attempt to convey, mortgage, assign, lease or in any way alienate the Aircraft or create any kind of lien or security interest involving the Aircraft or do anything or take any action that might mature into such a lien.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) It shall not lien or otherwise encumber or create or place any lien or other encumbrance of any kind whatsoever, on or against the Aircraft for any reason. It also will ensure that no liens or encumbrances of any kind whatsoever are created or placed against the Aircraft for claims against Lessee or by Lessee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) It will abide by and conform to all laws, governmental and airport orders, rules and regulations, as shall be imposed upon the lessee of an aircraft under a time sharing agreement, and applicable company policies of Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Lessor's Representations and Warranties</u>. Lessor represents and warrants that it will abide by and conform to all such laws, governmental and airport orders, rules and regulations, as shall from time to time be in effect relating in any way to the operation and use of the Aircraft pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Disclaimer of Warranties</u>. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, LESSOR HAS MADE NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE AIRCRAFT, INCLUDING ANY WITH RESPECT TO ITS CONDITION, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR TO ANY OTHER PERSON FOR ANY INCIDENTIAL, CONSEQUENTIAL OR SPECIAL DAMAGES, HOWEVER ARISING.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Term</u>. The term of this Agreement (the "Term") shall commence on the effective date hereof and expire on June 30, 2022, and thereafter shall automatically renew for successive one-year terms. Notwithstanding the foregoing, either party shall have the right to terminate this Agreement upon 30 days prior written notice to the other party. In addition, this Agreement shall terminate (i) effective on the date specified in a written notice from Lessor to Lessee to the effect that Lessor no longer operates the Aircraft, which notice shall be given by Lessor to Lessee as soon as reasonably practicable after Lessor becomes aware that such is or will be the case or (ii) immediately upon a Change of Control of Lessee. "Change of Control" shall mean the acquisition, in a transaction or a series of related transactions, by any person or group, other than Charles F. Dolan or members of the immediate family of Charles F. Dolan or trusts for the benefit of Charles F. Dolan or his immediate family (or an entity or entities controlled by any of them), of the power to direct the management of Madison Square Garden Entertainment Corp. or substantially all its assets (as constituted immediately prior to such transaction or transactions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Limitation of Liability</u>. The parties, for themselves and on behalf of their representatives, guests, invitees, licensees and employees, covenant and agree that the insurance described in Section 8 hereof shall be the sole recourse for any and all liabilities, claims, demands, suits, causes of action, losses, penalties, fines, expenses or damages, including attorneys fees, court costs and witness fees, attributable to the use, operation or maintenance of the Aircraft pursuant to this Agreement or performance of or failure to perform any obligation under this Agreement, except in the event that Lessor fails to obtain and maintain the insurance required hereunder or in the event of the gross negligence of the party at fault or the proceeds of insurance are unavailable due to an act or omission of a party that violates the covenants, terms and conditions of the insurance policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Relationship of Parties</u>. Lessor is strictly an independent contractor lessor/provider of transportation services with respect to Lessee. Nothing in this Agreement is intended, nor shall it be construed so as, to constitute the parties as partners or joint venturers or principal and agent. All persons furnished by Lessor for the performance of the operations and activities contemplated by this Agreement shall at all times and for all purposes be considered Lessor's employees or agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Governing Law; Severability</u>. This Agreement shall be governed by and interpreted in accordance with the laws of the State of New York, determined without regard to its conflicts of laws principles. If any provision of this Agreement conflicts with any statute or rule of law of the State of New York, or is otherwise unenforceable, such provision shall be deemed null and void only the extent of such conflict or unenforceability, and shall be deemed separate from, and shall not invalidate, any other provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. A<u>mendment</u>. This Agreement may not be amended, supplemented, modified or terminated, or any of its terms varied, except by an agreement in writing signed by each of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Counterparts</u>. This Time Sharing Agreement may for all purposes be executed in several counterparts, each of which shall be deemed an original, and all such counterparts, taken together, shall constitute the same instrument, even though all parties may not have executed the same counterpart of this Agreement. Each party may transmit its signature by confirmed facsimile or PDF transmission, and such signatures shall have the same force and effect as an original signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Successors and Assigns</u>. This Time Sharing Agreement shall be binding upon the parties hereto, and their respective heirs, executors, administrators, other legal representatives, successors and assigns, and shall inure to the benefit of the parties hereto, and, except as otherwise provided herein, to their respective heirs, executors, administrators, other legal representatives, successors and permitted assigns. Lessee agrees that it shall not directly or indirectly sublease, assign, transfer, pledge or hypothecate this Agreement or any part hereof (including any assignment or transfer pursuant to the laws of intestacy) without the prior written consent of Lessor, which may be given or withheld by Lessor in its sole and absolute discretion.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Notices</u>. All notices or other communications delivered or given under this Agreement shall be in writing and shall be deemed to have been duly given if hand delivered, sent by certified or registered mail, return receipt requested, or nationally-utilized overnight delivery service, PDF or confirmed facsimile transmission, as the case may be. Such notices shall be addressed to the parties at the addresses set forth above, or to such other address as may be designated by any party in a writing delivered to the other in the manner set forth in this Section 20. In the case of notices to Lessee, a copy of each such notice shall be sent via email to legalnotices@msg.com. In the case of notices to Lessor, a copy of each such notice shall be sent via email to officer@dfollc.com. Notices sent by certified or registered mail shall be deemed received three (3) business days after being mailed. All other notices shall be deemed received on the date delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Truth-in-Leasing Compliance</u>. Lessor, on behalf of Lessee, shall (i) mail a copy of this Agreement to the Aircraft Registration Branch, Technical Section, of the FAA in Oklahoma City within twenty four (24) hours of its execution; (ii) notify the nearest Flight Standards District Office at least forty-eight (48) hours prior to the first flight by Lessor under this Agreement of the registration number of the Aircraft, and the location of the airport of departure and departure time of the first flight; and (iii) carry a copy of this Agreement onboard the Aircraft at all times when the Aircraft is being operated under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>TRUTH IN LEASING STATEMENT UNDER FAR SECTION 91.23</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) LESSOR HEREBY CERTIFIES THAT THE AIRCRAFT HAS BEEN MAINTAINED AND INSPECTED UNDER FAR PART 91 DURING THE 12-MONTH PERIOD PRECEDING THE DATE OF EXECUTION OF THIS AGREEMENT. THE AIRCRAFT WILL BE MAINTAINED AND INSPECTED IN COMPLIANCE WITH THE

MAINTENANCE AND INSPECTION REQUIREMENTS OF FAR PART 91 FOR ALL OPERATIONS TO BE CONDUCTED UNDER THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) LESSOR HEREBY CERTIFIES THAT IT IS RESPONSIBLE FOR OPERATIONAL CONTROL OF THE AIRCRAFT FOR ALL OPERATIONS UNDER THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) EACH PARTY HEREBY CERTIFIES THAT IT UNDERSTANDS ITS RESPONSIBILITIES FOR COMPLIANCE WITH APPLICABLE FEDERAL AVIATION REGULATIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) THE PARTIES UNDERSTAND THAT AN EXPLANATION OF THE FACTORS BEARING ON OPERATIONAL CONTROL AND THE PERTINENT FEDERAL AVIATION REGULATIONS CAN BE OBTAINED FROM THE NEAREST FAA FLIGHT STANDARDS DISTRICT OFFICE.

THE UNDERSIGNED FOR LESSOR CERTIFIES THAT THEY ARE RESPONSIBLE FOR OPERATIONAL CONTROL OF THE AIRCRAFT AND THAT THEY UNDERSTAND THE RESPONSIBILITIES FOR COMPLIANCE WITH APPLICABLE FEDERAL AVIATION REGULATIONS.

**(the remainder of this page has been left blank)** 

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IN WITNESS WHEREOF, Lessor and Lessee have executed this Time Sharing Agreement effective as of the date first above written.

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| | |
|:---|:---|
| LESSOR: | LESSOR: |
| Patrick F. Dolan | Patrick F. Dolan |
| LESSEE: | LESSEE: |
| MSG Entertainment Group, LLC | MSG Entertainment Group, LLC |
| By: | /s/ Mark H. FitzPatrick |
| Name: Mark H. FitzPatrick | Name: Mark H. FitzPatrick |
| Title: EVP & Chief Financial Officer | Title: EVP & Chief Financial Officer |

---

## Exhibit 10.39

**Exhibit 10.39** 

<u>FORM OF TIME SHARING AGREEMENT</u> 

THIS TIME SHARING AGREEMENT (this "Agreement") is entered into effective as of _____________, 2023, by and between MSG Entertainment Holdings, LLC ("Lessor"), a Delaware limited liability company with a place of business at Two Pennsylvania Plaza, New York, New York 10121, and MSG Entertainment Group, LLC (to be renamed MSG Sphere Group, LLC), a Delaware limited liability company with a place of business at Two Pennsylvania Plaza, New York, New York 10121 ("Lessee").

<u>W I T N E S S E T H:</u> 

WHEREAS, Lessor is the lessee and the operator of a Gulfstream Aerospace GV -SP (G550) aircraft, manufacturer's serial number 5465, United States registration N5465M (the "Aircraft"); and

WHEREAS, Lessor has employed or engaged a fully-qualified and credentialed flight crew to operate the Aircraft; and

WHEREAS, Lessor has agreed to lease the Aircraft, with flight crew, to Lessee on a "time sharing" basis as defined in Section 91.501(c)(1) of the Federal Aviation Regulations ("FAR") upon the terms and subject to the conditions set forth herein;

NOW, THEREFORE, in consideration of the foregoing premises, and the covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, Lessor and Lessee, intending to be legally bound, hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Lease of Aircraft</u>. Lessor agrees to lease the Aircraft to Lessee pursuant to the provisions of FAR Section 91.501(b)(6) and Section 91.501(c)(1) and this Agreement, and to provide a fully-qualified and credentialed flight crew for all flights to be conducted hereunder during the Term (as defined in Section 13) hereof. The parties acknowledge and agree that this Agreement did not result in any way from any direct or indirect advertising, holding out or soliciting on the part of Lessor or any person purportedly acting on behalf of Lessor. Lessor and Lessee intend that the lease of the Aircraft effected by this Agreement shall be treated as a "wet lease" pursuant to which Lessor provides transportation services to Lessee in accordance with FAR Section 91.501(b)(6) and Section 91.501(c)(1). Lessee acknowledges that this Agreement is subject to and subordinate to the master lease agreement pursuant to which Lessor leases the Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payment for Use of Aircraft</u>. Lessee shall pay Lessor the following actual expenses of each flight conducted under this Agreement, not to exceed the maximum amount legally payable for such flight under FAR Section 91.501(d)(1)-(10):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) fuel, oil, lubricants and other additives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) travel expenses of crew, including food, lodging and ground transportation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) hangar and tie-down costs away from the Aircraft's base of
operation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) additional insurance obtained for the specific flight at the request of Lessee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) landing fees, airport taxes and similar assessments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) customs, foreign permit and similar fees directly related to the flight;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) in-flight food and beverages;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) passenger ground transportation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) flight planning and weather contract services; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) An additional charge equal to 100 percent of the expenses listed in paragraph (2)(a) of this section.

Lessee shall be obligated to reimburse Lessor for the actual expenses set forth in Section 2(a)-(i) for occupied legs and for deadhead flights. Nothing herein shall prevent Lessor from utilizing empty space on any flight leg in which case Lessor and Lessee agree to adjust in good faith the expenses of any such flight segment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Operational Control of Aircraft</u>. Lessor and Lessee intend and agree that on all flights conducted under this Agreement, Lessor shall have complete and exclusive operational control over the Aircraft, its flight crews and maintenance, and complete and exclusive possession, command and control of the Aircraft. Lessor shall have complete and exclusive responsibility for scheduling, dispatching and flight following of the Aircraft on all flights conducted under this Agreement, which responsibility includes the sole and exclusive right over initiating, conducting and terminating such flights. Lessee shall have no responsibility for scheduling, dispatching or flight following on any flight conducted under this Agreement, nor any right over initiating, conducting or terminating any such flight. Nothing in this Agreement is intended or shall be construed so as to convey to Lessee any operational control over, or possession, command and control of, the Aircraft, all of which are expressly retained by Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Scheduling</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Lessee will provide Lessor with requests for flight time and proposed flight schedules as far in advance of any given flight as possible. Lessee or the designated authorized representative(s) of Lessee shall submit scheduling requests under this Agreement to the designated authorized representative(s) of Lessor. Requests for flight time shall be in such form (whether oral or written) mutually convenient to, and agreed upon by, the parties. In addition to proposed schedules and flight times, Lessee shall upon request provide Lessor with the following information for each proposed flight prior to scheduled departure: (i) proposed departure point; (ii) destination; (iii) date and time of flight; (iv) the number of anticipated passengers; (v) the nature and extent of luggage to be carried; (vi) the date and time of a return flight, if any; and (vii) any other pertinent information concerning the proposed flight that Lessor or the flight crew may request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to Aircraft and crew availability and to any usage limitations established by Lessor, Lessor shall use its good faith efforts, consistent with Lessor's approved policies, in order to accommodate the needs of Lessee, to avoid conflicts in scheduling, and to enable Lessee to enjoy the benefits of this Agreement; however, Lessee acknowledges and agrees that notwithstanding anything in this Agreement to the contrary, (i) Lessor shall have sole and exclusive final authority over the scheduling of the Aircraft; and (ii) the needs of Lessor for the Aircraft shall take precedence over Lessee's rights and Lessor's obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Although every good faith effort shall be made to avoid its occurrence, any flight scheduled under this Agreement is subject to cancellation by either party without incurring liability to the other party. In the event that cancellation is necessary, the canceling party shall provide the maximum notice practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Billing</u>. Lessor shall pay all expenses relating to the operation of the Aircraft under this Agreement on a monthly basis. As soon as possible after the end of each monthly period during the Term, Lessor shall provide to Lessee an invoice showing all use of the Aircraft by Lessee under this Agreement during that month and a complete accounting detailing all amounts payable by Lessee pursuant to Section 2 for that month, including such detail supporting all expenses paid or incurred by Lessor for which reimbursement is sought as Lessee may reasonably request. Lessee shall pay all amounts due to Lessor under this Section 5 not later than thirty (30) days after receipt of the invoice therefor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Maintenance of Aircraft</u>. Lessor shall be solely responsible for securing maintenance, preventive maintenance and inspections of the Aircraft (utilizing an inspection program listed in FAR Section 91.409(f)), and shall take such requirements into account in scheduling the Aircraft hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Flight Crew</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Lessor shall employ or engage and pay all salaries, benefits and/or compensation for a fully-qualified flight crew with appropriate credentials to conduct each flight undertaken under this Agreement. Lessor may use temporary flight crewmembers for a flight under this Agreement only if any such temporary crewmember is FlightSafety (or SimuFlite) trained, is current on the Aircraft and satisfies all of the requirements and conditions under the insurance coverage for the Aircraft. All flight crewmembers shall be included on any insurance policies that Lessor is required to maintain hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The qualified flight crew provided by Lessor shall exercise all of its duties and responsibilities with regard to the safety of each flight conducted hereunder in accordance with applicable FARs. The Aircraft shall be operated under the standards and policies established by Lessor. Final authority to initiate or terminate each flight, and otherwise to decide all matters relating to the safety of any given flight or requested flight, shall rest with the pilot-in -command of that flight. The pilot-in-command may, in its sole discretion, terminate any flight, refuse to commence any flight, or take any other action that, in the judgment of the pilot-in -command, is necessitated by considerations of safety. No such termination or refusal to commence by the pilot-in-command shall create or support any liability for loss, injury, damage or delay in favor of Lessee or any other person. Lessor shall not be liable to Lessee or any other person for loss, injury or damage occasioned by the delay or failure to furnish the Aircraft and flight crew pursuant to this Agreement for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At all times during the Term of this Agreement, Lessor shall maintain at its sole cost and expense (i) all risk, both ground and in-flight hull insurance in an amount not less than the full replacement cost of the aircraft; (ii) liability coverage covering passengers, non-passengers, third party liability (including war risk AV 52) and property damage of not less than three hundred million ($300,000,000) United States dollars for each occurrence but sublimited to twenty five million ($25,000,000) United States dollars for each occurrence and aggregate with respect to Personal Injury Liability; and (iii) products liability insurance including completed operations in an amount not less than three hundred million ($300,000,000) United States dollars per occurrence and aggregate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any policies of aircraft and liability insurance carried in accordance with this Section 8 and any policies taken out in substitution or replacement of any such policies (i) shall name Lessee and its affiliates and each of their respective members, managers, shareholders, officers, directors, partners, employees, agents, licensees and guests as additional insureds (without responsibility for premiums) with respect to the liability coverage; (ii) shall waive any right of set-off and any right of subrogation against any of the additional insureds; (iii) shall provide for thirty (30) days written notice to Lessee by such insurer of cancellation, change, non-renewal or reduction (seven (7) days in the case of war risk and allied perils coverage or such shorter period as is customarily available in the industry); (iv) shall be primary, not subject to any co-insurance clause, not contributory or subject to offset with respect to any other policies in force; and (v) shall include a severability of interest clause providing that the policies will operate in the same manner to give each insured the same protection as if there were a separate policy issued to each insured except for the limit of liability.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Lessor shall use reasonable commercial efforts to provide such additional insurance coverage for specific flights under this Agreement, if any, as Lessee may request in writing. Lessee also acknowledges that any trips scheduled to the European Union may require Lessor to purchase additional insurance to comply with local regulations. The cost of all additional flight-specific insurance shall be borne by Lessee as set forth in Section 2(d) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each party agrees that it will not do any act or voluntarily suffer or permit any act to be done whereby any insurance required hereunder shall or may be suspended, impaired or defeated. In no event shall Lessor suffer or permit the Aircraft to be used or operated under this Agreement without such insurance being fully in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Lessor shall ensure that worker's compensation insurance with all-states coverage is provided for the Aircraft's crew and maintenance personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Lessor shall deliver certificates of insurance to Lessee with respect to the insurance required or permitted to be provided by it hereunder not later than the first flight of the Aircraft under this Agreement and upon the renewal date of each policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Taxes</u>. Lessee shall be responsible for paying, and Lessor shall be responsible for collecting from Lessee and paying over to the appropriate authorities, all applicable Federal transportation taxes and sales, use or other excise taxes imposed by any governmental authority in connection with any use of the Aircraft by Lessee hereunder. Each party shall indemnify the other party against any and all claims, liabilities, costs and expenses (including attorney's fees as and when incurred) arising out of its breach of this undertaking.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Lessee's Representations and Warranties</u>. Lessee represents and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) It will not use the Aircraft for the purposes of providing transportation of passengers or cargo in air commerce for compensation or hire or for common carriage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) It shall refrain from incurring any mechanic's or other liens in connection with inspection, preventive maintenance, maintenance or storage of the Aircraft, and shall not attempt to convey, mortgage, assign, lease or in any way alienate the Aircraft or create any kind of lien or security interest involving the Aircraft or do anything or take any action that might mature into such a lien.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) It shall not lien or otherwise encumber or create or place any lien or other encumbrance of any kind whatsoever, on or against the Aircraft for any reason. It also will ensure that no liens or encumbrances of any kind whatsoever are created or placed against the Aircraft for claims against Lessee or by Lessee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) It will abide by and conform to all laws, governmental and airport orders, rules and regulations, as shall be imposed upon the lessee of an aircraft under a time sharing agreement, and applicable company policies of Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Lessor's Representations and Warranties</u>. Lessor represents and warrants that it will abide by and conform to all such laws, governmental and airport orders, rules and regulations, as shall from time to time be in effect relating in any way to the operation and use of the Aircraft pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Disclaimer of Warranties.</u> EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, LESSOR HAS MADE NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE AIRCRAFT, INCLUDING ANY WITH RESPECT TO ITS CONDITION, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR TO ANY OTHER PERSON FOR ANY INCIDENTIAL, CONSEQUENTIAL OR SPECIAL DAMAGES, HOWEVER ARISING.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Term</u>. The term of this Agreement (the "Term") shall commence on the effective date hereof and expire on _____________, 2024, and thereafter shall automatically renew for successive one-year terms. Notwithstanding the foregoing, either party shall have the right to terminate this Agreement after the initial term upon 30 days prior written notice. In addition, this Agreement shall terminate (i) effective on the date specified in a written notice from Lessor to Lessee to the effect that Lessor no longer operates the Aircraft, which notice shall be given by Lessor to Lessee as soon as reasonably practicable after Lessor becomes aware that such is or will be the case or (ii) immediately upon a Change of Control of Lessee. "Change of Control" shall mean the acquisition, in a transaction or a series of related transactions, by any person or group, other than Charles F. Dolan or members of the immediate family of Charles F. Dolan or trusts for the benefit of Charles F. Dolan or his immediate family (or an entity or entities controlled by any of them), of the power to direct the management of Madison Square Garden Entertainment Corp. (to be renamed MSG Sphere Corp.) or substantially all its assets (as constituted immediately prior to such transaction or transactions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Limitation of Liability</u>. The parties, for themselves and on behalf of their representatives, guests, invitees, licensees, servants and employees, covenant and agree that the insurance described in Section 8 hereof shall be the sole recourse for any and all liabilities, claims, demands, suits, causes of action, losses, penalties, fines, expenses or damages, including attorneys fees, court costs and witness fees, attributable to the use, operation or maintenance of the Aircraft pursuant to this Agreement or performance of or failure to perform any obligation under this Agreement, except in the event that Lessor fails to obtain and maintain the insurance required hereunder or in the event of the gross negligence of the party at fault.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Relationship of Parties</u>. Lessor is strictly an independent contractor lessor/provider of transportation services with respect to Lessee. Nothing in this Agreement is intended, nor shall it be construed so as, to constitute the parties as partners or joint venturers or principal and agent. All persons furnished by Lessor for the performance of the operations and activities contemplated by this Agreement shall at all times and for all purposes be considered Lessor's employees or agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Governing Law; Severability</u>. This Agreement shall be governed by and interpreted in accordance with the laws of the State of New York, determined without regard to its conflicts of laws principles. If any provision of this Agreement conflicts with any statute or rule of law of the State of New York, or is otherwise unenforceable, such provision shall be deemed null and void only the extent of such conflict or unenforceability, and shall be deemed separate from, and shall not invalidate, any other provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Amendment</u>. This Agreement may not be amended, supplemented, modified or terminated, or any of its terms varied, except by an agreement in writing signed by each of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Counterparts</u>. This Time Sharing Agreement may for all purposes be executed in several counterparts, each of which shall be deemed an original, and all such counterparts, taken together, shall constitute the same instrument, even though all parties may not have executed the same counterpart of this Agreement. Each party may transmit its signature by confirmed facsimile or PDF transmission, and such signatures shall have the same force and effect as an original signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Successors and Assigns</u>. This Time Sharing Agreement shall be binding upon the parties hereto, and their respective heirs, executors, administrators, other legal representatives, successors and assigns, and shall inure to the benefit of the parties hereto, and, except as otherwise provided herein, to their respective heirs, executors, administrators, other legal representatives, successors and permitted assigns. Lessee agrees that it shall not directly or indirectly sublease, assign, transfer, pledge or hypothecate this Agreement or any part hereof (including any assignment or transfer pursuant to the laws of intestacy) without the prior written consent of Lessor, which may be given or withheld by Lessor in its sole and absolute discretion.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Notices</u>. All notices or other communications delivered or given under this Agreement shall be in writing and shall be deemed to have been duly given if hand -delivered, sent by certified or registered mail, return receipt requested, or nationally-utilized overnight delivery service, PDF or confirmed facsimile transmission, as the case may be. Such notices shall be addressed to the parties at the addresses set forth above, or to such other address as may be designated by any party in a writing delivered to the other in the manner set forth in this Section 20. In the case of notices to Lessor, a copy of each such notice shall be sent via email to <u>legalnotices@msg.com</u>. In the case of notices to Lessee, a copy of each such notice shall be sent to MSG Entertainment Group, LLC (to be renamed MSG Sphere Group, LLC), 2 Penn Plaza, New York, NY 10121, attention: General Counsel. Notices sent by certified or registered mail shall be deemed received three (3) business days after being mailed. All other notices shall be deemed received on the date delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Truth-in-Leasing Compliance</u>. Lessor, on behalf of Lessee, shall (i) mail a copy of this Agreement to the Aircraft Registration Branch, Technical Section, of the FAA in Oklahoma City within twenty four (24) hours of its execution; (ii) notify the nearest Flight Standards District Office at least fo1iy eight (48) hours prior to the first flight by Lessor under this Agreement of the registration number of the Aircraft, and the location of the airport of departure and departure time of the first flight; and (iii) carry a copy of this Agreement onboard the Aircraft at all times when the Aircraft is being operated under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>TRUTH IN LEASING STATEMENT UNDER FAR SECTION 91.23</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) LESSOR HEREBY CERTIFIES THAT THE AIRCRAFT HAS BEEN MAINTAINED AND INSPECTED UNDER FAR PART 91 DURING THE 12-MONTH PERIOD PRECEDING THE DATE OF EXECUTION OF THIS AGREEMENT OR SINCE ITS MANUFACTURE. THE AIRCRAFT WILL BE MAINTAINED AND INSPECTED IN COMPLIANCE WITH THE MAINTENANCE AND INSPECTION REQUIREMENTS OF FAR PART 91 FOR ALL OPERATIONS TO BE CONDUCTED UNDER THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) LESSOR HEREBY CERTIFIES THAT IT IS RESPONSIBLE FOR OPERATIONAL CONTROL OF THE AIRCRAFT FOR ALL OPERATIONS UNDER THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) EACH PARTY HEREBY CERTIFIES THAT IT UNDERSTANDS ITS RESPONSIBILITIES FOR COMPLIANCE WITH APPLICABLE FEDERAL AVIATION REGULATIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) THE PARTIES UNDERSTAND THAT AN EXPLANATION OF THE FACTORS BEARING ON OPERATIONAL CONTROL AND THE PERTINENT FEDERAL AVIATION REGULATIONS CAN BE OBTAINED FROM THE NEAREST FAA FLIGHT STANDARDS DISTRICT OFFICE.

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IN WITNESS WHEREOF, Lessor and Lessee have executed this Time Sharing Agreement effective as of the date first above written.

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| |
|:---|
| LESSOR: |
| MSG ENTERTAINMENT HOLDINGS, LLC |
| By: |
| Name: |
| Title: |

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| |
|:---|
| LESSEE: |
| MSG ENTERTAINMENT GROUP, LLC (to be renamed MSG Sphere Group, LLC) |
| By: |
| Name: |
| Title: |

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## Exhibit 10.40

**Exhibit 10.40** 

<u>FORM OF TIME SHARING AGREEMENT</u> 

THIS TIME SHARING AGREEMENT (this "Agreement") is entered into effective as of _____________, 2023, by and between MSG Entertainment Holdings, LLC ("Lessor"), a Delaware limited liability company with a place of business at Two Pennsylvania Plaza, New York, New York 10121, and MSG Entertainment Group, LLC (to be renamed MSG Sphere Group, LLC), a Delaware limited liability company with a place of business at Two Pennsylvania Plaza, New York, New York 10121 ("Lessee").

<u>W I T N E S S E T H:</u> 

WHEREAS, Lessor is the lessee and the operator of a Bombardier BD100-1A10 Challenger 350 aircraft, manufacturer's serial number 20611, United States registration 350 PD (the "Aircraft");

WHEREAS, Lessor has employed or engaged a fully-qualified and credentialed flight crew to operate the Aircraft; and

WHEREAS, Lessor has agreed to lease the Aircraft, with flight crew, to Lessee on a "time sharing" basis as defined in Section 91.501(c)(1) of the Federal Aviation Regulations ("FAR") upon the terms and subject to the conditions set forth herein;

NOW, THEREFORE, in consideration of the foregoing premises, and the covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, Lessor and Lessee, intending to be legally bound, hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Lease of Aircraft</u>. Lessor agrees to lease the Aircraft to Lessee pursuant to the provisions of FAR Section 91.501(b)(6) and Section 91.501(c)(1) and this Agreement, and to provide a fully-qualified and credentialed flight crew for all flights to be conducted hereunder during the Term (as defined in Section 13) hereof. The parties acknowledge and agree that this Agreement did not result in any way from any direct or indirect advertising, holding out or soliciting on the part of Lessor or any person purportedly acting on behalf of Lessor. Lessor and Lessee intend that the lease of the Aircraft effected by this Agreement shall be treated as a "wet lease" pursuant to which Lessor provides transportation services to Lessee in accordance with FAR Section 91.501(b)(6) and Section 91.501(c)(1). Lessee acknowledges that this Agreement is subject to and subordinate to the master lease agreement pursuant to which Lessor leases the Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payment for Use of Aircraft</u>. Lessee shall pay Lessor the following actual expenses of each flight conducted under this Agreement, not to exceed the maximum amount legally payable for such flight under FAR Section 91.501(d)(1)-(10):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) fuel, oil, lubricants and other additives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) travel expenses of crew, including food, lodging and ground transportation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) hangar and tie-down costs away from the Aircraft's base of
operation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) additional insurance obtained for the specific flight at the request of Lessee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) landing fees, airport taxes and similar assessments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) customs, foreign permit and similar fees directly related to the flight;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) in-flight food and beverages;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) passenger ground transportation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) flight planning and weather contract services; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) An additional charge equal to 100 percent of the expenses listed in paragraph (2)(a) of this section.

Lessee shall be obligated to reimburse Lessor for the actual expenses set forth in Section 2(a)-(i) for occupied legs and for deadhead flights. Nothing herein shall prevent Lessor from utilizing empty space on any flight leg in which case Lessor and Lessee agree to adjust in good faith the expenses of any such flight segment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Operational Control of Aircraft</u>. Lessor and Lessee intend and agree that on all flights conducted under this Agreement, Lessor shall have complete and exclusive operational control over the Aircraft, its flight crews and maintenance, and complete and exclusive possession, command and control of the Aircraft. Lessor shall have complete and exclusive responsibility for scheduling, dispatching and flight following of the Aircraft on all flights conducted under this Agreement, which responsibility includes the sole and exclusive right over initiating, conducting and terminating such flights. Lessee shall have no responsibility for scheduling, dispatching or flight following on any flight conducted under this Agreement, nor any right over initiating, conducting or terminating any such flight. Nothing in this Agreement is intended or shall be construed so as to convey to Lessee any operational control over, or possession, command and control of, the Aircraft, all of which are expressly retained by Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Scheduling</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Lessee will provide Lessor with requests for flight time and proposed flight schedules as far in advance of any given flight as possible. Lessee or the designated authorized representative(s) of Lessee shall submit scheduling requests under this Agreement to the designated authorized representative(s) of Lessor. Requests for flight time shall be in such form (whether oral or written) mutually convenient to, and agreed upon by, the parties. In addition to proposed schedules and flight times, Lessee shall upon request provide Lessor with the following information for each proposed flight prior to scheduled departure: (i) proposed departure point; (ii) destination; (iii) date and time of flight; (iv) the number of anticipated passengers; (v) the nature and extent of luggage to be carried; (vi) the date and time of a return flight, if any; and (vii) any other pertinent information concerning the proposed flight that Lessor or the flight crew may request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to Aircraft and crew availability and to any usage limitations established by Lessor, Lessor shall use its good faith efforts, consistent with Lessor's approved policies, in order to accommodate the needs of Lessee, to avoid conflicts in scheduling, and to enable Lessee to enjoy the benefits of this Agreement; however, Lessee acknowledges and agrees that notwithstanding anything in this Agreement to the contrary, (i) Lessor shall have sole and exclusive final authority over the scheduling of the Aircraft; and (ii) the needs of Lessor for the Aircraft shall take precedence over Lessee's rights and Lessor's obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Although every good faith effort shall be made to avoid its occurrence, any flight scheduled under this Agreement is subject to cancellation by either party without incurring liability to the other party. In the event that cancellation is necessary, the canceling party shall provide the maximum notice practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Billing</u>. Lessor shall pay all expenses relating to the operation of the Aircraft under this Agreement on a monthly basis. As soon as possible after the end of each monthly period during the Term, Lessor shall provide to Lessee an invoice showing all use of the Aircraft by Lessee under this Agreement during that month and a complete accounting detailing all amounts payable by Lessee pursuant to Section 2 for that month, including such detail supporting all expenses paid or incurred by Lessor for which reimbursement is sought as Lessee may reasonably request. Lessee shall pay all amounts due to Lessor under this Section 5 not later than thirty (30) days after receipt of the invoice therefor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Maintenance of Aircraft</u>. Lessor shall be solely responsible for securing maintenance, preventive maintenance and inspections of the Aircraft (utilizing an inspection program listed in FAR Section 91.409(f)), and shall take such requirements into account in scheduling the Aircraft hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Flight Crew</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Lessor shall employ or engage and pay all salaries, benefits and/or compensation for a fully-qualified flight crew with appropriate credentials to conduct each flight undertaken under this Agreement. Lessor may use temporary flight crewmembers for a flight under this Agreement only if any such temporary crewmember is FlightSafety (or SimuFlite) trained, is current on the Aircraft and satisfies all of the requirements and conditions under the insurance coverage for the Aircraft. All flight crewmembers shall be included on any insurance policies that Lessor is required to maintain hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The qualified flight crew provided by Lessor shall exercise all of its duties and responsibilities with regard to the safety of each flight conducted hereunder in accordance with applicable FARs. The Aircraft shall be operated under the standards and policies established by Lessor. Final authority to initiate or terminate each flight, and otherwise to decide all matters relating to the safety of any given flight or requested flight, shall rest with the pilot-in -command of that flight. The pilot-in-command may, in its sole discretion, terminate any flight, refuse to commence any flight, or take any other action that, in the judgment of the pilot-in -command, is necessitated by considerations of safety. No such termination or refusal to commence by the pilot-in-command shall create or support any liability for loss, injury, damage or delay in favor of Lessee or any other person. Lessor shall not be liable to Lessee or any other person for loss, injury or damage occasioned by the delay or failure to furnish the Aircraft and flight crew pursuant to this Agreement for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (a) At all times during the Term of this Agreement, Lessor shall maintain at its sole cost and expense (i) comprehensive aircraft and liability insurance against bodily injury and property damage claims, including, without limitation, contractual liability, premises damage, personal property liability, personal injury liability, death and property damage liability, public and passenger legal liability coverage, in an amount not less than $100,000,000 for each single occurrence and (ii) hull insurance for the full replacement cost of the aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any policies of aircraft and liability insurance carried in accordance with this Section 8 and any policies taken out in substitution or replacement of any such policies (i) shall name Lessee and its affiliates and each of their respective members, managers, shareholders, officers, directors, partners, employees, agents, licensees and guests as additional insureds (without responsibility for premiums) with respect to the liability coverage; (ii) shall waive any right of set-off and any right of subrogation against any of the additional insureds; (iii) shall provide for thirty (30) days written notice to Lessee by such insurer of cancellation, change, non-renewal or reduction (seven (7) days in the case of war risk and allied perils coverage or such shorter period as is customarily available in the industry); (iv) shall be primary, not subject to any co-insurance clause, not contributory or subject to offset with respect to any other policies in force; and (v) shall include a severability of interest clause providing that the policies will operate in the same manner to give each insured the same protection as if there were a separate policy issued to each insured except for the limit of liability.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Lessor shall use reasonable commercial efforts to provide such additional insurance coverage for specific flights under this Agreement, if any, as Lessee may request in writing. Lessee also acknowledges that any trips scheduled to the European Union may require Lessor to purchase additional insurance to comply with local regulations. The cost of all additional flight-specific insurance shall be borne by Lessee as set forth in Section 2(d) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each party agrees that it will not do any act or voluntarily suffer or permit any act to be done whereby any insurance required hereunder shall or may be suspended, impaired or defeated. In no event shall Lessor suffer or permit the Aircraft to be used or operated under this Agreement without such insurance being fully in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Lessor shall ensure that worker's compensation insurance with all-states coverage is provided for the Aircraft's crew and maintenance personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Lessor shall deliver certificates of insurance to Lessee with respect to the insurance required or permitted to be provided by it hereunder not later than the first flight of the Aircraft under this Agreement and upon the renewal date of each policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Taxes</u>. Lessee shall be responsible for paying, and Lessor shall be responsible for collecting from Lessee and paying over to the appropriate authorities, all applicable Federal transportation taxes and sales, use or other excise taxes imposed by any governmental authority in connection with any use of the Aircraft by Lessee hereunder. Each party shall indemnify the other party against any and all claims, liabilities, costs and expenses (including attorney's fees as and when incurred) arising out of its breach of this undertaking.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Lessee's Representations and Warranties</u>. Lessee represents and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) It will not use the Aircraft for the purposes of providing transportation of passengers or cargo in air commerce for compensation or hire or for common carriage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) It shall refrain from incurring any mechanic's or other liens in connection with inspection, preventive maintenance, maintenance or storage of the Aircraft, and shall not attempt to convey, mortgage, assign, lease or in any way alienate the Aircraft or create any kind of lien or security interest involving the Aircraft or do anything or take any action that might mature into such a lien.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) It shall not lien or otherwise encumber or create or place any lien or other encumbrance of any kind whatsoever, on or against the Aircraft for any reason. It also will ensure that no liens or encumbrances of any kind whatsoever are created or placed against the Aircraft for claims against Lessee or by Lessee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) It will abide by and conform to all laws, governmental and airport orders, rules and regulations, as shall be imposed upon the lessee of an aircraft under a time sharing agreement, and applicable company policies of Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Lessor's Representations and Warranties</u>. Lessor represents and warrants that it will abide by and conform to all such laws, governmental and airport orders, rules and regulations, as shall from time to time be in effect relating in any way to the operation and use of the Aircraft pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Disclaimer of Warranties.</u> EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, LESSOR HAS MADE NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE AIRCRAFT, INCLUDING ANY WITH RESPECT TO ITS CONDITION, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR TO ANY OTHER PERSON FOR ANY INCIDENTIAL, CONSEQUENTIAL OR SPECIAL DAMAGES, HOWEVER ARISING.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Term</u>. The term of this Agreement (the "Term") shall commence on the effective date hereof and expire on ____________, 2024, and thereafter shall automatically renew for successive one-year terms. Notwithstanding the foregoing, either party shall have the right to terminate this Agreement after the initial term upon 30 days prior written notice. In addition, this Agreement shall terminate (i) effective on the date specified in a written notice from Lessor to Lessee to the effect that Lessor no longer operates the Aircraft, which notice shall be given by Lessor to Lessee as soon as reasonably practicable after Lessor becomes aware that such is or will be the case or (ii) immediately upon a Change of Control of Lessee. "Change of Control" shall mean the acquisition, in a transaction or a series of related transactions, by any person or group, other than Charles F. Dolan or members of the immediate family of Charles F. Dolan or trusts for the benefit of Charles F. Dolan or his immediate family (or an entity or entities controlled by any of them), of the power to direct the management of Madison Square Garden Entertainment Corp. (to be renamed MSG Sphere Corp.) or substantially all its assets (as constituted immediately prior to such transaction or transactions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Limitation of Liability</u>. The parties, for themselves and on behalf of their representatives, guests, invitees, licensees and employees, covenant and agree that the insurance described in Section 8 hereof shall be the sole recourse for any and all liabilities, claims, demands, suits, causes of action, losses, penalties, fines, expenses or damages, including attorneys fees, court costs and witness fees, attributable to the use, operation or maintenance of the Aircraft pursuant to this Agreement or performance of or failure to perform any obligation under this Agreement, except in the event that Lessor fails to obtain and maintain the insurance required hereunder or in the event of the gross negligence of the party at fault.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Relationship of Parties</u>. Lessor is strictly an independent contractor lessor/provider of transportation services with respect to Lessee. Nothing in this Agreement is intended, nor shall it be construed so as, to constitute the parties as partners or joint venturers or principal and agent. All persons furnished by Lessor for the performance of the operations and activities contemplated by this Agreement shall at all times and for all purposes be considered Lessor's employees or agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Governing Law; Severability</u>. This Agreement shall be governed by and interpreted in accordance with the laws of the State of New York, determined without regard to its conflicts of laws principles. If any provision of this Agreement conflicts with any statute or rule of law of the State of New York, or is otherwise unenforceable, such provision shall be deemed null and void only the extent of such conflict or unenforceability, and shall be deemed separate from, and shall not invalidate, any other provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Amendment</u>. This Agreement may not be amended, supplemented, modified or terminated, or any of its terms varied, except by an agreement in writing signed by each of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Counterparts</u>. This Time Sharing Agreement may for all purposes be executed in several counterparts, each of which shall be deemed an original, and all such counterparts, taken together, shall constitute the same instrument, even though all parties may not have executed the same counterpart of this Agreement. Each party may transmit its signature by confirmed facsimile or PDF transmission, and such signatures shall have the same force and effect as an original signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Successors and Assigns</u>. This Time Sharing Agreement shall be binding upon the parties hereto, and their respective heirs, executors, administrators, other legal representatives, successors and assigns, and shall inure to the benefit of the parties hereto, and, except as otherwise provided herein, to their respective heirs, executors, administrators, other legal representatives, successors and permitted assigns. Lessee agrees that it shall not directly or indirectly sublease, assign, transfer, pledge or hypothecate this Agreement or any part hereof (including any assignment or transfer pursuant to the laws of intestacy) without the prior written consent of Lessor, which may be given or withheld by Lessor in its sole and absolute discretion.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Notices</u>. All notices or other communications delivered or given under this Agreement shall be in writing and shall be deemed to have been duly given if hand -delivered, sent by certified or registered mail, return receipt requested, or nationally-utilized overnight delivery service, PDF or confirmed facsimile transmission, as the case may be. Such notices shall be addressed to the parties at the addresses set forth above, or to such other address as may be designated by any party in a writing delivered to the other in the manner set forth in this Section 20. In the case of notices to Lessor, a copy of each such notice shall be sent via email to <u>legalnotices@msg.com.</u> In the case of notices to Lessee, a copy of each such notice shall be sent to MSG Entertainment Group, LLC (to be renamed MSG Sphere Group, LLC), 2 Penn Plaza, New York, NY 10121, attention: General Counsel. Notices sent by certified or registered mail shall be deemed received three (3) business days after being mailed. All other notices shall be deemed received on the date delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Truth-in-Leasing Compliance</u>. Lessor, on behalf of Lessee, shall (i) mail a copy of this Agreement to the Aircraft Registration Branch, Technical Section, of the FAA in Oklahoma City within twenty four (24) hours of its execution; (ii) notify the nearest Flight Standards District Office at least fo1iy eight (48) hours prior to the first flight by Lessor under this Agreement of the registration number of the Aircraft, and the location of the airport of departure and departure time of the first flight; and (iii) carry a copy of this Agreement onboard the Aircraft at all times when the Aircraft is being operated under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>TRUTH IN LEASING STATEMENT UNDER FAR SECTION 91.23</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) LESSOR HEREBY CERTIFIES THAT THE AIRCRAFT HAS BEEN MAINTAINED AND INSPECTED UNDER FAR PART 91 DURING THE 12-MONTH PERIOD PRECEDING THE DATE OF EXECUTION OF THIS AGREEMENT OR SINCE ITS MANUFACTURE. THE AIRCRAFT WILL BE MAINTAINED AND INSPECTED IN COMPLIANCE WITH THE MAINTENANCE AND INSPECTION REQUIREMENTS OF FAR PART 91 FOR ALL OPERATIONS TO BE CONDUCTED UNDER THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) LESSOR HEREBY CERTIFIES THAT IT IS RESPONSIBLE FOR OPERATIONAL CONTROL OF THE AIRCRAFT FOR ALL OPERATIONS UNDER THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) EACH PARTY HEREBY CERTIFIES THAT IT UNDERSTANDS ITS RESPONSIBILITIES FOR COMPLIANCE WITH APPLICABLE FEDERAL AVIATION REGULATIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) THE PARTIES UNDERSTAND THAT AN EXPLANATION OF THE FACTORS BEARING ON OPERATIONAL CONTROL AND THE PERTINENT FEDERAL AVIATION REGULATIONS CAN BE OBTAINED FROM THE NEAREST FAA FLIGHT STANDARDS DISTRICT OFFICE.

**(the remainder of this page has been left blank)**

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IN WITNESS WHEREOF, Lessor and Lessee have executed this Time Sharing Agreement effective as of the date first above written.

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| |
|:---|
| LESSOR: |
| MSG Entertainment Holdings, LLC |
| By: |
| Name: |
| Title: |
| LESSEE: |
| MSG Entertainment Group, LLC (to be renamed MSG Sphere Group, LLC) |
| By: |
| Name: |
| Title: |

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## Exhibit 10.41

**Exhibit 10.41** 

EXECUTION VERSION

**CREDIT AGREEMENT** 

**dated as of June 30, 2022,** 

**among** 

**MSG NATIONAL PROPERTIES, LLC,** 

**as the Company,** 

**MSG ENTERTAINMENT GROUP, LLC and** 

**CERTAIN SUBSIDIARIES OF THE COMPANY,** 

**as Guarantors,** 

**THE LENDERS AND L/C ISSUERS PARTY HERETO** 

**and** 

**JPMORGAN CHASE BANK, N.A.,** 

**as Administrative Agent, Lead Arranger, Book Runner and Syndication Agent** 

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**TABLE OF CONTENTS** 

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| | | |
|:---|:---|:---|
|  |  | **Page** |
| ARTICLE I<br>DEFINITIONS AND ACCOUNTING MATTERS | ARTICLE I<br>DEFINITIONS AND ACCOUNTING MATTERS | ARTICLE I<br>DEFINITIONS AND ACCOUNTING MATTERS |
|  Section 1.01 | Certain Defined Terms | 6 |
|  Section 1.02 | Other Interpretive Provisions | 53 |
|  Section 1.03 | Accounting Terms | 53 |
|  Section 1.04 | Rounding | 54 |
|  Section 1.05 | Times of Day | 54 |
|  Section 1.06 | Certain Calculations | 54 |
|  Section 1.07 | Currency Equivalents Generally | 55 |
|  Section 1.08 | Interest Rates; Benchmark Notification | 55 |
|  Section 1.09 | Divisions | 55 |
|  Section 1.10 | Limited Condition Transactions | 56 |
|  Section 1.11 | Letter of Credit Amounts | 56 |
| ARTICLE II<br>THE COMMITMENTS AND CREDIT EXTENSIONS | ARTICLE II<br>THE COMMITMENTS AND CREDIT EXTENSIONS | ARTICLE II<br>THE COMMITMENTS AND CREDIT EXTENSIONS |
|  Section 2.01 | The Loans | 57 |
|  Section 2.02 | Borrowings, Conversions and Continuations of Loans | 57 |
|  Section 2.03 | Letters of Credit | 59 |
|  Section 2.04 | [Reserved] | 66 |
|  Section 2.05 | Prepayments | 66 |
|  Section 2.06 | Termination or Reduction of Commitments | 68 |
|  Section 2.07 | Repayment of Loans | 69 |
|  Section 2.08 | Interest | 70 |
|  Section 2.09 | Fees | 70 |
|  Section 2.10 | Computation of Interest and Fees | 71 |
|  Section 2.11 | Evidence of Debt | 71 |
|  Section 2.12 | Payments Generally; Administrative Agent's Clawback | 71 |
|  Section 2.13 | Sharing of Payments by Lenders | 73 |
|  Section 2.14 | Refinancing Facilities | 74 |
|  Section 2.15 | Incremental Facilities | 75 |
|  Section 2.16 | Defaulting Lenders | 77 |
|  Section 2.17 | Extension of Maturity Date | 79 |
| ARTICLE III<br>TAXES, YIELD PROTECTION AND ILLEGALITY | ARTICLE III<br>TAXES, YIELD PROTECTION AND ILLEGALITY | ARTICLE III<br>TAXES, YIELD PROTECTION AND ILLEGALITY |
|  Section 3.01 | Taxes | 81 |
|  Section 3.02 | Illegality | 84 |
|  Section 3.03 | Alternate Rate of Interest | 85 |
|  Section 3.04 | Increased Costs; Reserves on Term Benchmark Loans | 87 |
|  Section 3.05 | Compensation for Losses | 89 |
|  Section 3.06 | Mitigation Obligations; Replacement of Lenders | 89 |
|  Section 3.07 | Survival | 89 |

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| | | |
|:---|:---|:---|
| ARTICLE IV<br>GUARANTY | ARTICLE IV<br>GUARANTY | ARTICLE IV<br>GUARANTY |
|  Section 4.01 | Guaranty | 90 |
|  Section 4.02 | Rights of Lenders | 90 |
|  Section 4.03 | Certain Waivers | 90 |
|  Section 4.04 | Obligations Independent | 91 |
|  Section 4.05 | Subrogation | 91 |
|  Section 4.06 | Termination; Reinstatement | 91 |
|  Section 4.07 | Subordination | 91 |
|  Section 4.08 | Stay of Acceleration | 91 |
|  Section 4.09 | Condition of Company | 91 |
|  Section 4.10 | Limitation on Guaranty | 92 |
|  Section 4.11 | Keepwell | 92 |
| ARTICLE V<br>CONDITIONS PRECEDENT | ARTICLE V<br>CONDITIONS PRECEDENT | ARTICLE V<br>CONDITIONS PRECEDENT |
|  Section 5.01 | Conditions to the Credit Extensions on the Effective Date | 92 |
|  Section 5.02 | Conditions to all Credit Extensions | 95 |
| ARTICLE VI<br>REPRESENTATIONS AND WARRANTIES | ARTICLE VI<br>REPRESENTATIONS AND WARRANTIES | ARTICLE VI<br>REPRESENTATIONS AND WARRANTIES |
|  Section 6.01 | Existence, Qualification and Power | 95 |
|  Section 6.02 | Subsidiaries; Loan Parties | 95 |
|  Section 6.03 | Authority; No Conflict | 96 |
|  Section 6.04 | Financial Condition; Absence of Material Adverse Effect | 96 |
|  Section 6.05 | Litigation, Compliance with Laws | 97 |
|  Section 6.06 | Titles and Liens | 97 |
|  Section 6.07 | Regulation U; Investment Company Act | 97 |
|  Section 6.08 | Taxes | 97 |
|  Section 6.09 | Other Credit Agreements | 97 |
|  Section 6.10 | Full Disclosure | 98 |
|  Section 6.11 | No Default | 98 |
|  Section 6.12 | Approval of Government, Regulatory Authorities and Third Parties | 98 |
|  Section 6.13 | Binding Agreements | 98 |
|  Section 6.14 | Collective Bargaining Agreements | 99 |
|  Section 6.15 | Investments | 99 |
|  Section 6.16 | Solvency | 99 |
|  Section 6.17 | Collateral Documents | 99 |
|  Section 6.18 | Subordinated Debt | 99 |
|  Section 6.19 | ERISA Compliance | 99 |
|  Section 6.20 | Environmental Compliance | 100 |
|  Section 6.21 | Intellectual Property, Licenses, Etc. | 100 |

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| | | |
|:---|:---|:---|
|  Section 6.22 | Compliance Matters | 100 |
|  Section 6.23 | Anti-Corruption Laws and Sanctions | 100 |
|  Section 6.24 | EEA Financial Institutions | 100 |
| ARTICLE VII<br>COVENANTS OF THE COMPANY<br> AND THE RESTRICTED SUBSIDIARIES | ARTICLE VII<br>COVENANTS OF THE COMPANY<br> AND THE RESTRICTED SUBSIDIARIES | ARTICLE VII<br>COVENANTS OF THE COMPANY<br> AND THE RESTRICTED SUBSIDIARIES |
|  Section 7.01 | Financial Statements and Other Information | 101 |
|  Section 7.02 | Taxes and Claims | 103 |
|  Section 7.03 | Insurance | 103 |
|  Section 7.04 | Maintenance of Existence; Conduct of Business | 104 |
|  Section 7.05 | Maintenance of and Access to Collateral | 104 |
|  Section 7.06 | Compliance with Applicable Laws | 104 |
|  Section 7.07 | [Reserved] | 105 |
|  Section 7.08 | Control Agreements | 105 |
|  Section 7.09 | Use of Proceeds | 105 |
|  Section 7.10 | Covenant to Guarantee Obligations and Give Security | 105 |
|  Section 7.11 | Books and Records | 106 |
|  Section 7.12 | [Reserved] | 106 |
|  Section 7.13 | Further Assurances and Post-Closing Matters | 106 |
|  Section 7.14 | Indebtedness | 108 |
|  Section 7.15 | [Reserved] | 110 |
|  Section 7.16 | Liens | 110 |
|  Section 7.17 | Investments | 112 |
|  Section 7.18 | Restricted Payments | 112 |
|  Section 7.19 | Business | 113 |
|  Section 7.20 | Transactions with Affiliates | 113 |
|  Section 7.21 | Amendments of Certain Instruments | 114 |
|  Section 7.22 | Cash Management Arrangements | 114 |
|  Section 7.23 | Fundamental Changes | 114 |
|  Section 7.24 | Dispositions | 114 |
|  Section 7.25 | Accounting Changes | 115 |
|  Section 7.26 | Negative Pledge; Burdensome Agreements | 115 |
|  Section 7.27 | Anti-Corruption Laws and Sanctions | 118 |
|  Section 7.28 | Optional Payments and Modifications of Subordinated Debt | 118 |
|  Section 7.29 | Total Leverage Ratio | 119 |
|  Section 7.30 | Debt Service Coverage Ratio | 119 |
|  Section 7.31 | Minimum Liquidity | 119 |
| ARTICLE VIII<br>EVENTS OF DEFAULT AND REMEDIES | ARTICLE VIII<br>EVENTS OF DEFAULT AND REMEDIES | ARTICLE VIII<br>EVENTS OF DEFAULT AND REMEDIES |
|  Section 8.01 | Events of Default | 119 |
|  Section 8.02 | Remedies upon Event of Default | 121 |
|  Section 8.03 | Application of Funds | 122 |

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| | | |
|:---|:---|:---|
| ARTICLE IX<br>THE ADMINISTRATIVE AGENT | ARTICLE IX<br>THE ADMINISTRATIVE AGENT | ARTICLE IX<br>THE ADMINISTRATIVE AGENT |
|  Section 9.01 | Appointment and Authority | 123 |
|  Section 9.02 | Rights as a Lender | 123 |
|  Section 9.03 | Exculpatory Provisions | 123 |
|  Section 9.04 | Reliance by Administrative Agent | 124 |
|  Section 9.05 | Delegation of Duties | 124 |
|  Section 9.06 | Resignation of Administrative Agent | 125 |
|  Section 9.07 | Non-Reliance on Administrative Agent and Other Lenders | 126 |
|  Section 9.08 | No Other Duties, Etc. | 127 |
|  Section 9.09 | Administrative Agent May File Proofs of Claim | 127 |
|  Section 9.10 | Collateral and Guaranty Matters | 128 |
|  Section 9.11 | Credit Bidding | 128 |
|  Section 9.12 | Certain ERISA Matters | 129 |
| ARTICLE X<br>MISCELLANEOUS | ARTICLE X<br>MISCELLANEOUS | ARTICLE X<br>MISCELLANEOUS |
|  Section 10.01 | Amendments, Etc. | 130 |
|  Section 10.02 | Notices; Effectiveness; Electronic Communications | 132 |
|  Section 10.03 | No Waiver; Cumulative Remedies | 135 |
|  Section 10.04 | Expenses; Limitation of Liability; Indemnity, Etc. | 135 |
|  Section 10.05 | Payments Set Aside | 137 |
|  Section 10.06 | Successors and Assigns | 137 |
|  Section 10.07 | Right of Setoff | 141 |
|  Section 10.08 | Interest Rate Limitation | 142 |
|  Section 10.09 | Counterparts; Integration; Effectiveness; Electronic Execution | 142 |
|  Section 10.10 | Survival of Representations and Warranties | 143 |
|  Section 10.11 | Severability | 143 |
|  Section 10.12 | Replacement of Lenders | 143 |
|  Section 10.13 | Governing Law; Jurisdiction; Etc. | 144 |
|  Section 10.14 | Waiver of Jury Trial | 145 |
|  Section 10.15 | No Advisory or Fiduciary Responsibility | 145 |
|  Section 10.16 | USA PATRIOT Act Notice | 146 |
|  Section 10.17 | Senior Indebtedness | 146 |
|  Section 10.18 | Liability of General Partners and Other Persons | 146 |
|  Section 10.19 | Authorization of Third Parties to Deliver Information and Discuss Affairs | 147 |
|  Section 10.20 | Treatment of Certain Information; Confidentiality | 147 |
|  Section 10.21 | No Fiduciary Duty | 147 |
|  Section 10.22 | Acknowledgement and Consent to Bail-In of Certain Financial Institutions | 147 |
|  Section 10.23 | Acknowledgement Regarding any Supported QFCs | 148 |

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| | |
|:---|:---|
|  Schedule 1.01(a) | Excluded Assets |
|  Schedule 1.01(b) | Existing Letters of Credit |
|  Schedule 1.01(c) | Mortgaged Properties |
|  Schedule 1.01(d) | Subsidiary Guarantors |
|  Schedule 2.01 | Commitments and Applicable Percentages |
|  Schedule 6.02(i) | Restricted Subsidiaries |
|  Schedule 6.02(ii) | Excluded Subsidiaries |
|  Schedule 6.03 | Required Consents, League and Regulatory Approvals |
|  Schedule 6.14 | Collective Bargaining Agreements |
|  Schedule 6.15 | Existing Investments |
|  Schedule 7.14 | Existing Indebtedness |
|  Schedule 7.16 | Existing Liens |
|  Schedule 7.20 | Transactions with Affiliates |
|  Schedule 7.26(a) | Negative Pledge |
|  Schedule 7.26(b) | Burdensome Agreements |
|  Schedule 10.02 | Administrative Agent's Office, Certain Addresses for Notices |
|  EXHIBIT A-1 | Form of Committed Revolving Loan Notice |
|  EXHIBIT A-2 | Form of Committed Term Loan Notice |
|  EXHIBIT B-1 | Form of Revolving Credit Note |
|  EXHIBIT B-2 | Form of Incremental Revolving Credit Note |
|  EXHIBIT B-3 | Form of Term Note |
|  EXHIBIT B-4 | Form of Incremental Term Note |
|  EXHIBIT C | Form of Quarterly Compliance Certificate |
|  EXHIBIT D-1 | Form of Certificate as to Quarterly Financial Statements |
|  EXHIBIT D-2 | Form of Certificate as to Annual Financial Statements |
|  EXHIBIT E | Form of Assignment and Assumption Agreement |
|  EXHIBIT F | Master Subordinated Intercompany Note |

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**CREDIT AGREEMENT** 

This CREDIT AGREEMENT (this "<u>Credit Agreement</u>") is entered into as of June 30, 2022, among MSG NATIONAL PROPERTIES, LLC, a Delaware limited liability company (the "<u>Company</u>"), the Guarantors (such term and each other capitalized term used but not defined in these recitals having the meaning ascribed thereto in <u>Section</u> <u>1.01</u> of this Credit Agreement) identified herein, the banks, financial institutions and other Persons which are parties hereto, together with their respective successors and assigns, as Lenders, the L/C Issuers from time to time party hereto, and JPMORGAN CHASE BANK, N.A., as Administrative Agent and an L/C Issuer.

WHEREAS, the Company has requested that (a) the Term Lenders extend credit in the form of Term Loans on the Effective Date in an aggregate principal amount of $650,000,000 and (b) the Revolving Credit Lenders extend credit in the form of Revolving Credit Loans and the L/C Issuers issue Letters of Credit, in each case at any time and from time to time during the Availability Period such that the Revolving Credit Exposure will not exceed $100,000,000 at any time; and

WHEREAS, the Lenders are willing to extend such credit to the Company, and the L/C Issuers are willing to issue Letters of Credit for the account of the Company, on the terms and subject to the conditions set forth herein;

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby covenant and agree as follows:

**ARTICLE I** 

**DEFINITIONS AND ACCOUNTING MATTERS** 

Section 1.01 <u>Certain Defined Terms</u>. As used herein, the following terms shall have the following meanings:

"<u>ABR</u>", when used in reference to any Loan or Borrowing, refers to whether such Loan, or each Loan comprising such Borrowing, bears interest at a rate determined by reference to the Alternate Base Rate.

"<u>Adjusted Daily Simple SOFR</u>" means an interest rate per annum equal to (a) the Daily Simple SOFR, <u>plus</u> (b) 0.10%; <u>provided</u> that if the Adjusted Daily Simple SOFR as so determined would be less than the Floor, such rate shall be deemed to be equal to the Floor for the purposes of this Agreement.

"<u>Adjusted Term SOFR</u>" means, for any Interest Period, an interest rate per annum equal to (a) the Term SOFR for such Interest Period <u>plus</u> (b) 0.10%; <u>provided</u> that if the Adjusted Term SOFR as so determined would be less than the Floor, such rate shall be deemed to be equal to the Floor for the purposes of this Agreement.

"<u>Adjusted Operating Income</u>" means for any period, the following for the Company and the Restricted Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP: (i) aggregate operating revenues, <u>minus</u> (ii) aggregate operating expenses (including direct operating and selling, general administrative), such expenses to (I) include the aggregate operating expenses of the Company and its Subsidiaries in a manner substantially consistent with the parent company cost allocation policy as reflected in the projections set forth in the Lender Model and (II) exclude impairments of property, equipment and intangible assets, depreciation and amortization (other than the amortization of production

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and development costs associated with shows or other content), direct operating expenses representing the expensing of capitalized amounts (including capitalized production costs and charges) and charges and credits relating to employee and director stock plans and restructuring charges and credits, and in each case without duplication to exclude expenses allocated to Affiliates that are not Restricted Subsidiaries; <u>provided</u>, <u>however</u>, that for purposes of determining Adjusted Operating Income for any period (in each case, for such period and without duplication), (A) there shall be included any dividends and distributions to the extent paid in cash by any Person (other than the Company or any Restricted Subsidiary) to the Company or any Restricted Subsidiary, (B) Adjusted Operating Income for such period shall be increased or reduced, as the case may be, by the Adjusted Operating Income of assets or businesses acquired or disposed of (<u>provided</u> that in each case it has an impact on Adjusted Operating Income of at least $500,000) by the Company or any Restricted Subsidiary on or after the first day of such period, determined on a pro forma basis reasonably satisfactory to the Administrative Agent (it being agreed that it shall be reasonably satisfactory to the Administrative Agent that such pro forma calculations may be based upon GAAP as applied in the preparation of the financial statements for the Company, delivered or deemed delivered pursuant to <u>Section</u> <u>7.01</u> rather than as applied in the financial statements of the company whose assets were acquired and may include, in the Company's discretion, a reasonable estimate of savings under existing contracts resulting from any such acquisitions), as though the Company or such Restricted Subsidiary acquired or disposed of such assets on the first day of such period, (C) there shall be included any gains or losses on sales or dispositions of Permitted Investments or Specified Investments by the Company or any Restricted Subsidiary; <u>provided</u> that the aggregate amount of any net gain included pursuant to this <u>clause (C)</u> shall not exceed $10,000,000 for any Measurement Period, and (D) there shall be excluded the non-cash component of lease revenues recognized under the Arena License Agreements. For purposes of this definition, revenues and operating expenses for any period may exclude the following, in each case for such period (without duplication): (1) losses resulting from any write-off or write-down of Investments by the Company or any Restricted Subsidiary; (2) the effect of the loss of any currently held real estate tax exemptions, but solely to the extent that (x) the Company and the Restricted Subsidiaries have been reimbursed in cash for any such loss by a Person other than the Company or a Restricted Subsidiary or (y) the payment in cash in respect of such loss was made by a Person other than the Company or a Restricted Subsidiary; (3) the costs resulting from the cancellation of shows or other content or abandonment of shows or other content under development or write-off of any deferred production costs associated with shows; (4) losses resulting from currency fluctuations and any unrealized losses from hedging transactions; (5) pension curtailment or settlements; (6) any other non-cash items (including non-cash compensation); (7) the cumulative effect of a change in accounting principles; (8) charges in respect of legal and other settlements (including direct or allocated fees and disbursements of counsel), restructurings, severance charges and other non-recurring, unusual or infrequent items; <u>provided</u> that the aggregate amount of all exclusions pursuant to this <u>clause (8)</u> shall not exceed for each fiscal year of the Company, the greater of $18,000,000 or 15% of Adjusted Operating Income for such Measurement Period (determined after giving effect to the exclusions pursuant to this <u>clause (8)</u>); and (9) all (a) costs, fees and expenses relating to the Transactions, (b) costs, fees and expenses (including diligence and integration costs) incurred in connection with (x) investments, acquisitions, and financings related to any of the foregoing or to the capitalization of the Company or any Restricted Subsidiary or (y) other transactions that are out of the ordinary course of business of such Person and its Restricted Subsidiaries (in each case, including transactions considered or proposed but not consummated), including equity issuances, Investments, acquisitions, dispositions, recapitalizations, mergers, option buyouts and the incurrence, modification or repayment of Indebtedness (including all consent fees, premium and other amounts payable in connection therewith).

"<u>Administrative Agent</u>" means JPMorgan Chase Bank, N.A. (or any of its designated branch offices or affiliates), in its capacity as administrative agent for the Lenders hereunder and its successors in such capacity.

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"<u>Administrative Agent's Office</u>" means the Administrative Agent's address and, as appropriate, account as set forth on <u>Schedule</u> <u>10.02</u>, or such other address or account as the Administrative Agent may from time to time notify to the Company and the Lenders.

"<u>Administrative Questionnaire</u>" means an Administrative Questionnaire in a form supplied by the Administrative Agent.

"<u>Affected Financial Institution</u>" means (a) any EEA Financial Institution or (b) any UK Financial Institution.

"<u>Affiliate</u>" means, as to any Person, any other Person which directly or indirectly controls, or is under common control with, or is controlled by, such Person. As used in this definition, "<u>control</u>" (including, with its correlative meanings, "<u>controlled by</u>" and "<u>under common control with</u>") means possession, directly or indirectly, of the power to direct or cause the direction of management or policies (whether through ownership of securities or limited liability company, partnership or other ownership interests, by contract or otherwise), <u>provided</u> that for purposes of this definition, in any event, any Person which owns directly or indirectly 10% or more of the securities having ordinary voting power for the election of directors or other governing body of a corporation or 10% or more of the limited liability company, partnership or other ownership interests of any other Person (other than as a non-managing member or limited partner of such other Person) will be deemed to control such corporation, limited liability company or other Person; and <u>provided</u> <u>further</u> that no individual shall be an Affiliate of a corporation, limited liability company or partnership solely by reason of his or her being an officer, director, manager, member or partner of such entity, except in the case of a member or a partner if his or her interests in such limited liability company or partnership shall qualify him or her as an Affiliate.

"<u>Affiliated Lender</u>" means any Lender that is an Affiliate of the Company.

"<u>Agent Parties</u>" has the meaning specified in <u>Section</u> <u>10.02(c)</u>.

"<u>Agent-Related Person</u>" has the meaning specified in <u>Section</u> <u>10.04(d)</u>.

"<u>Aggregate Commitments</u>" means the Commitments of all the Lenders.

"<u>Alternate Base Rate</u>" means, for any day, a fluctuating rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the NYFRB Rate in effect on such day <u>plus</u> <sup>1</sup>⁄<sub>2</sub> of 1% and (c) the Adjusted Term SOFR for a one month Interest Period as published two U.S. Government Securities Business Days prior to such day (or if such day is not a U.S. Government Securities Business Day, the immediately preceding U.S. Government Securities Business Day) plus 1%. For purposes of <u>clause (c)</u> above, the Adjusted Term SOFR for any day shall be based on the Term SOFR Reference Rate at approximately 5:00 a.m. Chicago time on such day (or any amended publication time for the Term SOFR Reference Rate, as specified by the CME Term SOFR Administrator in the Term SOFR Reference Rate methodology). Any change in the Alternate Base Rate due to a change in the Prime Rate, the NYFRB Rate or the Adjusted Term SOFR shall be effective from and including the effective date of such change in the Prime Rate, the NYFRB Rate or the Adjusted Term SOFR, respectively. If the Alternate Base Rate is being used as an alternate rate of interest pursuant to <u>Section</u> <u>3.03</u> (for the avoidance of doubt, only until the Benchmark Replacement has been determined pursuant to <u>Section</u> <u>3.03(b)</u>), then the Alternate Base Rate shall be the greater of <u>clauses (a)</u> and <u>(b)</u> above and shall be determined without reference to <u>clause (c)</u> above. For the avoidance of doubt, if the Alternate Base Rate as determined pursuant to the foregoing would be less than 1.00%, such rate shall be deemed to be 1.00% for purposes of this Credit Agreement.

"<u>Ancillary Document</u>" has the meaning specified in <u>Section</u> <u>10.09(b)</u>.

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"<u>Anti</u><u>-Corruption Laws</u>" means all published laws, rules and regulations of any jurisdiction applicable to the Company or the Subsidiaries from time to time penalizing actions in connection with bribery, money-laundering or other corrupt actions.

"<u>Applicable Percentage</u>" means (a) in respect of the Initial Term Facility, with respect to any Term Lender at any time, the percentage (carried out to the ninth decimal place) of the Initial Term Facility represented by such Term Lender's Term Commitment at such time (including any Incremental Term Commitments that increase the Term Commitments under the Initial Term Facility), (b) in respect of any Incremental Term Facility that is a separate tranche of Term Commitments and Term Loans, with respect to any Incremental Term Lender thereunder at any time, the percentage (carried out to the ninth decimal place) of such Incremental Term Facility represented by such Incremental Term Lender's Incremental Term Commitment at such time, (c) in respect of the Initial Revolving Credit Facility, with respect to any Revolving Credit Lender at any time, the percentage (carried out to the ninth decimal place) of the Initial Revolving Credit Facility represented by such Revolving Credit Lender's Revolving Credit Commitment at such time (including any Incremental Revolving Credit Commitments that increase the Revolving Credit Commitments under the Initial Revolving Credit Facility), and (d) in respect of any Incremental Revolving Credit Facility that is a separate tranche of Revolving Credit Commitments and Revolving Credit Loans, with respect to any Incremental Revolving Credit Lender thereunder at any time, the percentage (carried out to the ninth decimal place) of such Incremental Revolving Credit Facility represented by such Incremental Revolving Credit Lender's Incremental Revolving Credit Commitment at such time. If the commitment of each Revolving Credit Lender to make Revolving Credit Loans and the obligation of the L/C Issuers to make L/C Credit Extensions have been terminated pursuant to <u>Section</u> <u>8.02</u>, or if the Revolving Credit Commitments have expired, then the Applicable Percentage of each Revolving Credit Lender in respect of a Revolving Credit Facility shall be determined based on the Applicable Percentage of such Revolving Credit Lender in respect of such Revolving Credit Facility most recently in effect, giving effect to any subsequent assignments. The initial Applicable Percentage of each Lender in respect of each Facility is set forth opposite the name of such Lender on <u>Schedule</u> <u>2.01</u> (or, in the case of any Incremental Lender, on Schedule I to the applicable Incremental Supplement, if any) or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable.

"<u>Applicable Rate</u>" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (i) initially, in respect of the Initial Term Facility and the Initial Revolving Credit Facility, 2.50% per annum for ABR Loans and 3.50% per annum for Term Benchmark Loans and RFR Loans, and (ii) following the delivery of the Compliance Certificate for the first full fiscal quarter of the Company following the Effective Date, as determined by the Company's Total Leverage Ratio, as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Level** | **Total Leverage Ratio** | **Initial Revolving Credit Facility and Initial Term<br>Facility** | **Initial Revolving Credit Facility and Initial Term<br>Facility** | **Initial Revolving Credit Facility and Initial Term<br>Facility** |
| **Level** | **Total Leverage Ratio** | **Term Benchmark<br>Loans<br>Applicable Rate** | **RFR Loans<br>Applicable<br>Rate** | **ABR Loans<br>Applicable<br>Rate** |
|  Level 3 | Greater than or equal to 5.00:1.00 | 3.50% | 3.50% | 2.50% |
|  Level 2 | Greater than or equal to 4.00:1.00 but less than 5.00:1.00 | 3.00% | 3.00% | 2.00% |
|  Level 1 | Less than 4.00:1.00 | 2.50% | 2.50% | 1.50% |

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and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in respect of any Incremental Facility, the percentages per annum for ABR Loans, for Term Benchmark Loans and for RFR Loans that are agreed by the Company and the applicable Incremental Lenders and specified in the applicable Incremental Supplement with respect to such Incremental Facility.

For purposes of the foregoing, each change in the Applicable Rate resulting from a change in the Total Leverage Ratio shall be effective during the period commencing on and including the date of delivery to the Administrative Agent pursuant to <u>Section</u> <u>7.01(d)</u> of the Compliance Certificate indicating such change and ending on the date immediately preceding the effective date of the next such change; <u>provided</u> that the Total Leverage Ratio shall be deemed to be in Level 3 at the option of the Administrative Agent or at the request of the Required Lenders if the Company fails to deliver the Compliance Certificate required pursuant to <u>Section</u> <u>7.01(d)</u> during the period from the expiration of the time for delivery thereof until such Compliance Certificate is delivered.

"<u>Applicable Revolving Credit Percentage</u>" means with respect to any Revolving Credit Lender at any time, such Revolving Credit Lender's Applicable Percentage in respect of the applicable Revolving Credit Facility at such time.

"<u>Appropriate Lender</u>" means, at any time, (a) with respect to the Initial Term Facility, Initial Revolving Credit Facility or an Incremental Facility, if any, a Lender that has a Commitment with respect to such Facility or holds a Term Loan, a Revolving Credit Loan or an Incremental Loan, respectively, at such time, and (b) with respect to the Letter of Credit Sublimit, (i) each L/C Issuer and (ii) if any Letters of Credit have been issued pursuant to <u>Section</u> <u>2.03(a)</u>, the Revolving Credit Lenders.

"<u>Approved Electronic Platform</u>" has the meaning specified in <u>Section</u> <u>10.02(b)</u>.

"<u>Approved Fund</u>" means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

"<u>Arena</u>" means the Madison Square Garden Arena.

"<u>Arena License Agreement</u>" means, with respect to the New York Knicks and the New York Rangers, each written license agreement made between an Arena Subsidiary, on the one hand, and such team, on the other hand, pursuant to which such team plays its home games at the Arena, including the Knicks Arena License Agreement and the Rangers Arena License Agreement.

"<u>Arena Subsidiary</u>" has the meaning specified in the definition of "Excluded Asset".

"<u>Article 55 BRRD</u>" means Article 55 of Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms.

"<u>Assignee Group</u>" means two or more Eligible Assignees that are Affiliates of one another or two or more Approved Funds managed by the same investment advisor.

"<u>Assignment and Assumption</u>" means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by <u>Section</u> <u>10.06(b)</u>), and accepted by the Administrative Agent, in substantially the form of <u>Exhibit</u> <u>E</u> or any other form approved by the Administrative Agent.

"<u>Availability Period</u>" means (a) in respect of the Initial Revolving Credit Facility, the period from and including the Effective Date to the earliest of (i) the Maturity Date for the Initial Revolving Credit

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Facility, (ii) the date of termination of the Revolving Credit Commitments under the Initial Revolving Credit Facility pursuant to <u>Section</u> <u>2.06</u>, and (iii) the date of termination of the commitment of each Revolving Credit Lender to make Revolving Credit Loans and of the obligation of each L/C Issuer to make L/C Credit Extensions under the Initial Revolving Credit Facility pursuant to <u>Section</u> <u>8.02</u>, and (b) in respect of any Incremental Revolving Credit Facility that is a separate tranche of Revolving Credit Commitments and Revolving Credit Loans, the period from and including the applicable Incremental Closing Date to the earliest of (i) the Maturity Date for such Incremental Revolving Credit Facility, (ii) the date of termination of the Revolving Credit Commitments under such Incremental Revolving Credit Facility pursuant to <u>Section</u> <u>2.06</u>, and (iii) the date of termination of the commitment of each Incremental Revolving Credit Lender to make Revolving Credit Loans and of the obligation of each L/C Issuer to make L/C Credit Extensions under such Incremental Revolving Credit Facility pursuant to <u>Section</u> <u>8.02.</u>

"<u>Available Tenor</u>" means, as of any date of determination and with respect to the then-current Benchmark, as applicable, any tenor for such Benchmark (or component thereof) or payment period for interest calculated with reference to such Benchmark (or component thereof), as applicable, that is or may be used for determining the length of an Interest Period for any term rate or otherwise, for determining any frequency of making payments of interest calculated pursuant to this Credit Agreement as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of "Interest Period" pursuant to <u>clause</u> <u>(f)</u> of <u>Section</u> <u>3.03</u>.

"<u>Bail-In Action</u>" means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of any Affected Financial Institution.

"<u>Bail-In Legislation</u>" means (a) with respect to an EEA Member Country which has implemented, or which at any time implements, Article 55 BRRD, the relevant implementing law or regulation as described in the EU Bail-In Legislation Schedule from time to time; and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

"<u>Bankruptcy Code</u>" means Title 11 of the United States Code entitled "Bankruptcy", as now and hereafter in effect, or any successor statute.

"<u>BCE</u>" means Boston Calling Events LLC, a Delaware limited liability company, and each of its Subsidiaries.

"<u>Benchmark</u>" means, initially, with respect to any (a) Term Benchmark Loan, the Term SOFR and (b) RFR Loan, the Daily Simple SOFR; <u>provided</u> that if a Benchmark Transition Event and the related Benchmark Replacement Date have occurred with respect to the Term SOFR or Daily Simple SOFR, as applicable, or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to <u>clause (b)</u> of <u>Section</u> <u>3.03</u>.

"<u>Benchmark Replacement</u>" means, for any Available Tenor, the first alternative set forth in the order below that can be determined by the Administrative Agent for the applicable Benchmark Replacement Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Adjusted Daily Simple SOFR; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the sum of: (i) the alternate benchmark rate that has been selected by the Administrative Agent and the Company as the replacement for the then-current Benchmark for the applicable

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Corresponding Tenor giving due consideration to (A) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (B) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement for the then-current Benchmark for dollar-denominated syndicated credit facilities at such time in the United States and (ii) the related Benchmark Replacement Adjustment.

If the Benchmark Replacement as determined pursuant to <u>clause (a)</u> or <u>(b)</u> above would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes of this Credit Agreement and the other Loan Documents.

"<u>Benchmark Replacement Adjustment</u>" means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement for any applicable Interest Period and Available Tenor for any setting of such Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment (which may be a positive or negative value or zero), that has been selected by the Administrative Agent and the Company for the applicable Corresponding Tenor giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body on the applicable Benchmark Replacement Date and/or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for dollar-denominated syndicated credit facilities in the United States at such time.

"<u>Benchmark Replacement Conforming Changes</u>" means, with respect to any Benchmark Replacement and/or any Term Benchmark Loan, any technical, administrative or operational changes (including changes to the definition of "Alternate Base Rate," the definition of "Business Day," the definition of "U.S. Government Securities Business Day," the definition of "Interest Period," timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, length of lookback periods, the applicability of breakage provisions, and other technical, administrative or operational matters) that the Administrative Agent decides in its reasonable discretion may be appropriate to reflect the adoption and implementation of such Benchmark and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides in its reasonable discretion that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines in its reasonable discretion that no market practice for the administration of such Benchmark exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Credit Agreement and the other Loan Documents).

"<u>Benchmark Replacement Date</u>" means, with respect to any Benchmark, the earlier to occur of the following events with respect to such then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of <u>clause (a)</u> or <u>(b)</u> of the definition of "Benchmark Transition Event," the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of <u>clause (c)</u> of the definition of "Benchmark Transition Event," the first date on which such Benchmark (or the published component used in the calculation thereof) has been determined and announced by the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be no longer representative; <u>provided</u> that such non-representativeness will be determined by reference to the most recent statement or publication referenced in such <u>clause (c)</u> and even if any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date.

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For the avoidance of doubt, (x) if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination and (y) the "Benchmark Replacement Date" will be deemed to have occurred in the case of <u>clause (a)</u> or <u>(b)</u> with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

"<u>Benchmark Transition Event</u>" means, with respect to any Benchmark, the occurrence of one or more of the following events with respect to such then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely, <u>provided</u> that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Federal Reserve Board, the NYFRB, the CME Term SOFR Administrator, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component thereof), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component thereof) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component thereof), in each case, which states that the administrator of such Benchmark (or such component thereof) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely, <u>provided</u> that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) are no longer, or as of a specified future date will no longer be, representative.

For the avoidance of doubt, a "Benchmark Transition Event" will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

"<u>Benchmark Unavailability Period</u>" means, with respect to any Benchmark, the period (if any) (a) beginning at the time that a Benchmark Replacement Date pursuant to <u>clauses (a)</u> or <u>(b)</u> of that definition has occurred if, at such time, no Benchmark Replacement has replaced such then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with <u>Section</u> <u>3.03</u> and (b) ending at the time that a Benchmark Replacement has replaced such then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with <u>Section</u> <u>3.03</u>.

"<u>Beneficial Ownership Certification</u>" means a certification regarding beneficial ownership or control as required by the Beneficial Ownership Regulation.

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"<u>Beneficial Ownership Regulation</u>" means 31 C.F.R. § 1010.230.

"<u>Benefit Plan</u>" means any of (a) an "employee benefit plan" (as defined in Section 3(3) of ERISA) that is subject to Title I of ERISA, (b) a "plan" as defined in Section 4975 of the Code to which Section 4975 of the Code applies, and (c) any Person whose assets include (for purposes of the Plan Asset Regulations or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such "employee benefit plan" or "plan".

"<u>BHC Act Affiliate</u>" of a party means an "affiliate" (as such term is defined under, and interpreted in accordance with, 12 U.S.C. § 1841(k)) of such party.

"<u>Borrowing</u>" means a Term Borrowing, a Revolving Credit Borrowing or an Incremental Borrowing, if any, as the context may require.

"<u>Business</u>" has the meaning specified in <u>Section</u> <u>7.19</u>.

"<u>Business Day</u>" means any day (other than a Saturday or a Sunday) on which banks are open for business in New York City; <u>provided</u> that, in addition to the foregoing, a Business Day shall be (a) in relation to RFR Loans and at any interest rate settings, fundings, disbursements, settlements or payments of any such RFR Loan, or any other dealings of such RFR Loan, and (b) in relation to Loans referencing the Adjusted Term SOFR and any interest rate settings, fundings, disbursements, settlements or payments of any such Loans referencing the Adjusted Term SOFR or any other dealings of such Loans referencing the Adjusted Term SOFR, any such day that is also a U.S. Government Securities Business Day.

"<u>Capital Expenditures</u>" means, for any period, (a) the additions to property, plant and equipment and other capital expenditures of the Company and the Restricted Subsidiaries that are (or should be) set forth in a consolidated statement of cash flows of the Company as capital expenditures for such period prepared in accordance with GAAP and (b) Capitalized Lease Obligations incurred by the Company and the Restricted Subsidiaries during such period, but excluding in each case any such expenditure (i) constituting reinvestment of the Net Cash Proceeds of any event described in <u>Sections 2.05(b)(i)</u> or <u>(b)(ii)</u>, (ii) made by the Company or any Restricted Subsidiary to effect leasehold improvements to any property leased by the Company or such Restricted Subsidiary as lessee, to the extent that such expenses have been reimbursed by the landlord, and (iii) in the form of a substantially contemporaneous exchange of similar property, plant, equipment or other capital assets, except to the extent of cash or other consideration (other than the assets so exchanged), if any, paid or payable by the Company or any Restricted Subsidiary.

"<u>Capitalized Lease Obligations</u>" means, as to any Person, the obligations of such Person to pay rent or other amounts under a lease of (or other agreement conveying the right to use) real and/or personal property, which obligations are required to be classified and accounted for as a capital lease on a balance sheet of such Person under GAAP and, for purposes of this Credit Agreement, the amount of such obligations shall be the capitalized amount thereof, determined in accordance with GAAP. Notwithstanding the foregoing or any other provision contained in this Credit Agreement or in any Loan Document, for purposes of this definition, GAAP shall mean GAAP as in effect prior to giving effect to the adoption of ASU No. 2016-02 "Leases (Topic 842)" and ASU No. 2018-11 "Leases (Topic 842)".

"<u>Cash Collateral</u>" has the meaning specified in <u>Section</u> <u>2.03(g)</u>.

"<u>Cash Collateralize</u>" has the meaning specified in <u>Section</u> <u>2.03(g)</u>.

"<u>Cash Equivalents</u>" means any of the following types of Investments, to the extent owned by the Company or any Restricted Subsidiary free and clear of all Liens (other than Liens created under the Collateral Documents and other Liens permitted hereunder):

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) marketable, direct obligations of the United States of America or United States government agencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) bonds, notes and/or commercial paper outstanding at any time issued by any Person organized under the laws of any state of the United States of America;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) fully collateralized repurchase agreements in such amounts and with such financial institutions, as the Company may select from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) bank deposits, certificates of deposit, banker's acceptances and time deposits, which are issued by any Lender or by a United States national or state bank or foreign bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) money market funds that comply with the criteria set forth in SEC Rule 2a-7 under the Investment Company Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) privately placed funds with at least a AAA or Aaa rating by S&P or Moody's, respectively, which have investment objectives that include maintaining a stable net asset value, and which are otherwise managed according to the same investment objectives as funds regulated under SEC Rule 2a-7.

<u>provided</u> that, such Investments will be measured as of the date the Investment is acquired with the maximum maturity of any individual investment not exceeding 24 months, and a maximum portfolio average maturity of 12 months; <u>provided</u> <u>further</u>, that such Investments will also bear at least two credit ratings, including (i) for commercial paper, minimum ratings of "A2" by S&P and "P2" by Moody's, (ii) for longer term bonds and notes, average long-term equivalent ratings of "A+" by S&P and "A1" by Moody's for the portfolio of this investment class, (iii) for repurchase agreements, bank deposits, certificates of deposit, banker's acceptances and time deposits, a minimum rating of "BBB" by S&P and "Baa" by Moody's is required, unless, with respect to U.S. bank deposits and U.S. certificates of deposit, the amount invested is less than $250,000. To the extent that S&P or Moody's credit ratings for such instruments are not available, equivalent credit ratings from Fitch Ratings, Inc. are acceptable.

"<u>Cash Management Agreement</u>" means any agreement to provide cash management services, including treasury, depository, overdraft, credit or debit card, electronic funds transfer and other cash management arrangements.

"<u>Cash Management Bank</u>" means any Person that (i) is the Administrative Agent, the Lead Arranger or an Affiliate of any of the foregoing, (ii) at the time it enters into a Cash Management Agreement with a Loan Party, is a Lender or an Affiliate of a Lender or (iii) is a Lender or an Affiliate of a Lender as of the Effective Date and is a party to a Cash Management Agreement with a Loan Party on the Effective Date, in each case in its capacity as a party to such Cash Management Agreement.

"<u>Change in Law</u>" means the occurrence, after the date of this Credit Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation or application thereof by any Governmental Authority or (c) the making or issuance of any request, guideline or directive (whether or not having the force of law) by any Governmental Authority; <u>provided</u> that, notwithstanding anything to the contrary herein, it is understood and agreed that any changes resulting from requests, rules, guidelines or directives (x) issued under, or in connection with, the Dodd-Frank Wall Street Reform and Consumer Protection Act or (y) promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall, for the purposes of this Credit Agreement, be deemed to be adopted subsequent to the Effective Date.

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"<u>Change of Control</u>" means an event or series of events by which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (i) Dolan Family Interests or (ii) Persons Controlled by Dolan Family Interests (any such Person, a "<u>Dolan Family Interest Controlled Person</u>") (so long as, in the case of this <u>clause (ii)</u>, no "person" or "group" (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) other than the Dolan Family Interests shall beneficially own (within the meaning of Rule 13d-3 (as in effect on the Effective Date) promulgated under the Securities Exchange Act of 1934, as amended), in the aggregate, more than fifty percent (50%) of the Equity Interests in such Dolan Family Interest Controlled Person(s)) shall cease at any time to have beneficial ownership (within the meaning of Rule 13d-3 (as in effect on the Effective Date) promulgated under the Securities Exchange Act of 1934, as amended) of shares of the capital stock of the Company having sufficient votes to elect (or otherwise designate) at such time a majority of the members of the board of directors or similar governing entity of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Parent shall cease to own (free and clear of all Liens (other than non-consensual Permitted Liens)), directly or indirectly, 100% of the Equity Interests of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the adoption by the stockholders of Parent or the Company of a plan or proposal for the liquidation or dissolution of Parent or the Company.

"<u>Class</u>", when used in reference to (a) any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Term Loans, Revolving Credit Loans, Incremental Term Loans, Incremental Revolving Credit Loans, Refinancing Term Loans, Refinancing Revolving Credit Loans, Extended Term Loans or Extended Revolving Credit Loans and (b) any Commitment, refers to whether such Commitment is a Term Commitment, Revolving Credit Commitment, Extended Revolving Credit Commitment or any commitment to provide Incremental Term Loans, Incremental Revolving Credit Loans, Refinancing Term Loans, Refinancing Revolving Credit Loans, Extended Term Loans or Extended Revolving Credit Loans pursuant to any Incremental Term Supplement, Incremental Revolving Credit Supplement, Refinancing Amendment or Extension Amendment, respectively.

"<u>CME Term SOFR Administrator</u>" means CME Group Benchmark Administration Limited as administrator of the forward-looking term Secured Overnight Financing Rate (SOFR) (or a successor administrator).

"<u>Code</u>" means the Internal Revenue Code of 1986, as amended.

"<u>Collateral</u>" means all of the "<u>Collateral</u>" referred to in the Collateral Documents and all of the other property that is or is intended under the terms of the Collateral Documents to be subject to Liens in favor of the Administrative Agent for the benefit of the Secured Parties and for the avoidance of doubt, shall exclude all Excluded Assets.

"<u>Collateral Documents</u>" means, collectively, the Security Agreement, each Intellectual Property Security Agreement, and each of the collateral assignments, Security Agreement Supplements, Mortgages, each Deposit Account Control Agreement, security agreements, pledge agreements or other similar agreements, instruments or documents that creates or purports to create a Lien in favor of the Administrative Agent for the benefit of the Secured Parties.

"<u>Committed Loan Notice</u>" means a Committed Revolving Loan Notice or a Committed Term Loan Notice, as the context may require.

"<u>Committed Revolving Loan Notice</u>" means an irrevocable notice of (a) a Revolving Credit Borrowing (including an Incremental Revolving Credit Borrowing), (b) a conversion of Revolving Credit

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Loans from one Type to the other, or (c) a continuation of Term Benchmark Loans, pursuant to <u>Section</u> <u>2.02(a)</u>, which, if in writing, shall be substantially in the form of <u>Exhibit</u> <u>A-1</u>.

"<u>Committed Term Loan Notice</u>" means an irrevocable notice of (a) a Term Borrowing (including an Incremental Term Borrowing), (b) a conversion of Term Loans from one Type to another, or (c) a continuation of Term Benchmark Loans pursuant to <u>Section</u> <u>2.02(a)</u>, which, if in writing, shall be in substantially in the form of <u>Exhibit A-2</u>.

"<u>Commitment</u>" means a Term Loan Commitment, a Revolving Credit Commitment, a Letter of Credit Commitment, any Incremental Term Loan Commitment or any Incremental Revolving Credit Commitment as the context may require.

"<u>Commitment Fee</u>" has the meaning specified in <u>Section</u> <u>2.09(a)</u>.

"<u>Commitment Fee Percentage</u>" means (a) initially 0.50% per annum and (b) following the delivery of the Compliance Certificate for the first full fiscal quarter of the Company following the Effective Date, as determined by the Company's Total Leverage Ratio, as follows:

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| | | |
|:---|:---|:---|
| **Level** | **Total Leverage Ratio** | **Commitment Fee<br>Percentage** |
|  Level 3 | Greater than or equal to 5.00:1.00 | 0.50% |
|  Level 2 | Greater than or equal to 4.00:1.00 but less than 5.00:1.00 | 0.40% |
|  Level 1 | Less than 4.00:1.00 | 0.30% |

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For purposes of the foregoing, each change in the Commitment Fee Percentage resulting from a change in the Total Leverage Ratio shall be effective during the period commencing on and including the date of delivery to the Administrative Agent pursuant to <u>Section</u> <u>7.01(d)</u> of the Compliance Certificate indicating such change and ending on the date immediately preceding the effective date of the next such change; <u>provided</u> that the Total Leverage Ratio shall be deemed to be in Level 3 at the option of the Administrative Agent or at the request of the Required Revolver Lenders if the Company fails to deliver the Compliance Certificate required pursuant to <u>Section</u> <u>7.01(d)</u> during the period from the expiration of the time for delivery thereof until such Compliance Certificate is delivered.

"<u>Commodity Exchange Act</u>" means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.

"<u>Company</u>" has the meaning specified in the preamble to this Credit Agreement.

"<u>Company Materials</u>" means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of any Loan Party pursuant to any Loan Document or the transactions contemplated therein which is distributed by the Administrative Agent, any Lender or any L/C Issuer by means of electronic communications pursuant to <u>Section</u> <u>10.02</u>, including through an Approved Electronic Platform.

"<u>Compliance Certificate</u>" means a certificate of a Responsible Officer of the Company in substantially the form of <u>Exhibit</u> <u>C</u>.

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"<u>Consolidated Indebtedness</u>" means, as of any date of determination, an amount equal to the aggregate amount, without duplication, of all Indebtedness of the Company and any Restricted Subsidiary that would be reflected as debt on a consolidated balance sheet of the Company prepared in accordance with GAAP as of such date of determination.

"<u>Consolidated Net Income</u>" means, as of any date of determination and with respect to any Person, the Net Income of such Person and its Restricted Subsidiaries determined on a consolidated basis in accordance with GAAP.

"<u>Consolidated Senior Secured Indebtedness</u>" means, as of any date of determination, an amount equal to the Consolidated Indebtedness of the Company and any Restricted Subsidiary that is secured by a Lien on the assets of the Company or any Restricted Subsidiary that is not a junior Lien or subordinated to the Liens in favor of the Secured Parties hereunder.

"<u>Contractual Obligation</u>" means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is legally bound.

"<u>Control</u>" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. "<u>Controlling</u>" and "<u>Controlled</u>" have meanings correlative thereto.

"<u>Corresponding Tenor</u>" with respect to any Available Tenor means, as applicable, either a tenor (including overnight) or an interest payment period having approximately the same length (disregarding business day adjustment) as such Available Tenor.

"<u>Covered Entity</u>" means any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

"<u>Covered Party</u>" has the meaning specified in <u>Section</u> <u>10.23</u>.

"<u>Credit Agreement</u>" has the meaning specified in the preamble to this Credit Agreement.

"<u>Credit Extension</u>" means each of the following: (a) a Borrowing, or (b) an L/C Credit Extension.

"<u>Daily Simple SOFR</u>" means, for any day (a "<u>SOFR Rate Day</u>"), a rate per annum equal to SOFR for the day that is five U.S. Government Securities Business Days prior to (a) if such SOFR Rate Day is a U.S. Government Securities Business Day, such SOFR Rate Day or (b) if such SOFR Rate Day is not a U.S. Government Securities Business Day, the U.S. Government Securities Business Day immediately preceding such SOFR Rate Day, in each case, as such SOFR is published by the SOFR Administrator on the SOFR Administrator's Website. Any change in Daily Simple SOFR due to a change in SOFR shall be effective from and including the effective date of such change in SOFR without notice to the Company.

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"<u>Debt Instruments</u>" means, collectively, the respective notes and debentures evidencing, and indentures and other agreements governing, any Indebtedness.

"<u>Debt Service Coverage Ratio</u>" means, as of any date of determination, the ratio of (a) Adjusted Operating Income for the most recently completed Measurement Period, <u>less</u> any cash expenditures by the Company and the Restricted Subsidiaries in such Measurement Period related to the vesting of share-based compensation, to (b) Debt Service Requirements for the most recently completed Measurement Period; <u>provided</u> that (x) for purposes of calculating the Debt Service Coverage Ratio as of December 31, 2022 to determine compliance with <u>Section</u> <u>7.30</u>, the "Measurement Period" shall be deemed to be the period of two consecutive fiscal quarters of the Company then most recently ended for which financial statements are required to have been delivered by the Company pursuant to <u>Section</u> <u>7.01</u> and (y) for purposes of the Debt Service Coverage Ratio as of March 31, 2023 to determine compliance with <u>Section</u> <u>7.30</u>, the "Measurement Period" shall be deemed to be the period of three consecutive fiscal quarters of the Company then most recently ended for which financial statements are required to have been delivered by the Company pursuant to <u>Section</u> <u>7.01</u>.

"<u>Debt Service Requirements</u>" means, for any period, the sum, without duplication, of (a) Net Interest Expense for such period, (b) scheduled principal payments in respect of Long-Term Indebtedness of the Company and the Restricted Subsidiaries (excluding any payments due at maturity) and (c) the aggregate amount of interest payments on Capitalized Lease Obligations, determined in conformity with GAAP as in effect prior to giving effect to the adoption of ASU No. 2016-02 "Leases (Topic 842)" and ASU No. 2018-11 "Leases (Topic 842)", made by the Company and the Restricted Subsidiaries during such period. For purposes of this definition, interest on any Capitalized Lease Obligation shall be deemed to accrue at an interest rate reasonably determined by such Person to be the rate of interest implicit in such Capitalized Lease Obligation in accordance with GAAP.

"<u>Debtor Relief Laws</u>" means the Bankruptcy Code, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally.

"<u>Default</u>" means any event or condition that constitutes an Event of Default or that, with the giving of any notice, the passage of time, or both, would be an Event of Default.

"<u>Default Rate</u>" means (x) when used with respect to Obligations other than Letter of Credit Fees, an interest rate equal to (a) the Alternate Base Rate <u>plus</u> (b) the Applicable Rate, if any, applicable to ABR Loans <u>plus</u> (c) 2% per annum; <u>provided</u>, <u>however</u>, that with respect to any overdue principal on a Term Benchmark Loan, the Default Rate shall be an interest rate equal to the interest rate (including any Applicable Rate) otherwise applicable to such Loan <u>plus</u> 2% per annum and (y) when used with respect to Letter of Credit Fees, a rate equal to the Applicable Rate <u>plus</u> 2% per annum.

"<u>Default Right</u>" has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

"<u>Defaulting Lender</u>" means any Lender that (a) has failed to (i) fund all or any portion of its Loans within two Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Administrative Agent and the Company in writing that such failure is the result of such Lender's good faith determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Administrative Agent, any L/C Issuer or any other Lender any other amount required to be paid by it hereunder (including in respect of its participation in L/C Obligations) within two Business Days of the date when due, (b) has notified the Company, the Administrative Agent or any

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L/C Issuer in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender's obligation to fund a Loan hereunder and states that such position is based on such Lender's good faith determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), or (c) has (i) become the subject of a proceeding under any Debtor Relief Law or a Bail-In Action, or (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity; <u>provided</u> that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of <u>clauses</u> <u>(a)</u> through <u>(c)</u> above shall be made by the Administrative Agent in its reasonable discretion acting in good faith, and such Lender shall be deemed to be a Defaulting Lender upon delivery of written notice of such determination to the Company, each L/C Issuer and each Lender.

"<u>Deposit Account</u>" means any "deposit account," as defined in Article 9 of the UCC.

"<u>Deposit Account Control Agreement</u>" means, with respect to a Deposit Account, a customary "springing control" deposit account control agreement in form and substance reasonably satisfactory to the Administrative Agent that (a) is entered into among Administrative Agent, the financial institution or other Person at which such Deposit Account is maintained and the Loan Party maintaining such Deposit Account, and (b) is effective for Administrative Agent to obtain "control" (within the meaning of Article 9 of the UCC) (or the equivalent under any other applicable law) of such Deposit Account.

"<u>Designated Non-Cash Consideration</u>" means the fair market value (as reasonably determined by the Company in good faith) of non-cash consideration received by the Company or any of its Subsidiaries in connection with a Disposition that is so designated as "Designated Non-Cash Consideration" pursuant to a certificate of an authorized officer of the Company <u>minus</u> the amount of cash or Cash Equivalents received in connection with a subsequent sale of or collection on such Designated Non-Cash Consideration.

"<u>Disposition</u>" or "<u>Dispose</u>" means the sale, conveyance, assignment, transfer, license, lease, lapse, abandonment or other disposition (including any sale and leaseback transaction) of any asset (or the granting of any option or other right to do any of the foregoing), including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith; <u>provided</u> that the term Disposition specifically excludes (i) dispositions of property, whether now owned or hereafter acquired, that is obsolete, worn out, damaged, surplus or otherwise no longer used or useful in the ordinary course of business, (ii) dispositions of inventory (including advertising, sponsorship, tickets, air time, signage and similar items) in the ordinary course of business, (iii) dispositions of cash and Cash Equivalents in the ordinary course of business and the conversion of cash into Cash Equivalents and Cash Equivalents into cash, (iv) dispositions of property by any Subsidiary to the Company or to a Restricted Subsidiary (<u>provided</u> that in the case of this <u>clause (iv)</u> if the transferor of such property is a Loan Party, the transferee thereof must be a Loan Party), (v) sales or other dispositions without recourse and in the ordinary course of business of overdue accounts receivable of financially troubled debtors in connection with the compromise or collection thereof, (vi) the licensing or sublicensing of intellectual property rights on a non-exclusive basis, (vii) the settlement of tort or other litigation claims in the ordinary course of business or determined by the board of directors or similar governing entity to be fair and

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reasonable in light of the circumstances, (viii) charitable contributions in amounts that in the aggregate are not material to the Company and the Restricted Subsidiaries taken as a whole, (ix) leases or licenses of space in the ordinary course of business that are not material to the Business taken as a whole, (x) the sale, conveyance, assignment, transfer, license, lease, lapse, abandonment or other disposition of property involving property or assets having a fair market value of less than $5,000,000 in a single transaction or a series of related transactions and (xi) the sale, conveyance, assignment, transfer, license, lease, lapse, abandonment or other disposition of assets in the ordinary course of business.

"<u>Dolan</u>" means Charles F. Dolan.

"<u>Dolan Family Interests</u>" means (i) any Dolan Family Member, (ii) any trusts for the benefit of any Dolan Family Members, (iii) any estate or testamentary trust of any Dolan Family Member for the benefit of any Dolan Family Members, (iv) any executor, administrator, trustee, conservator or legal or personal representative of any Person or Persons specified in <u>clauses</u> <u>(i)</u>, <u>(ii)</u> and <u>(iii)</u> above to the extent acting in such capacity on behalf of such Person or Persons and not individually and (v) any corporation, partnership, limited liability company or other similar entity, in each case 80% of which is owned and controlled by any of the foregoing or combination of the foregoing.

"<u>Dolan Family Interest Controlled Person</u>" has the meaning specified in the definition of "Change of Control".

"<u>Dolan Family Members</u>" means Dolan, his spouse, his descendants by birth or adoption (including any stepchildren of his descendants) and any spouse of any of such descendants.

"<u>Dollars</u>" and "<u>$</u>" means lawful money of the United States of America.

"<u>EEA Financial Institution</u>" means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in <u>clause (a)</u> of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in <u>clause (a)</u> or <u>(b)</u> of this definition and is subject to consolidated supervision with its parent.

"<u>EEA Member Country</u>" means any of the member states of the European Union, Iceland, Lichtenstein and Norway.

"<u>EEA Resolution Authority</u>" means any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

"<u>Effective Date</u>" means the first date all the conditions precedent in <u>Section</u> <u>5.01</u> are satisfied or waived in accordance with <u>Section</u> <u>10.01</u>.

"<u>Electronic Signature</u>" means an electronic sound, symbol, or process attached to, or associated with, a contract or other record and adopted by a Person with the intent to sign, authenticate or accept such contract or record.

"<u>Eligible Assignee</u>" has the meaning specified in <u>Section</u> <u>10.06(b)(iii)(A)</u>; <u>provided</u> that, notwithstanding the foregoing, the term "Eligible Assignee" shall, solely with respect to an assignment of any Incremental Term Loan, include the Company, any Affiliated Lender or any of the Company's Subsidiaries, <u>provided</u>, that:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) none of the Company, any Affiliated Lender or any of the Company's Subsidiaries holding Incremental Term Loans shall have any right to (i) attend (including by telephone) any meeting or discussions (or portion thereof) among the Administrative Agent and/or any Lenders to which representatives of the Company are not then present, or (ii) receive any information or material prepared by the Administrative Agent or any Lender or any communication by or among Administrative Agent and one or more Lenders, except to the extent such information or materials have been made available to the Company or its representatives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) notwithstanding anything in <u>Section</u> <u>10.01</u> or the definition of "Required Lenders" to the contrary, for purposes of determining whether the Required Lenders have (i) consented (or not consented) to any amendment, modification, waiver, consent or other action with respect to any of the terms of any Loan Document or any departure by any Loan Party therefrom, or subject to <u>clause</u> <u>(c)</u> below, any plan of reorganization pursuant to the Bankruptcy Code, (ii) otherwise acted on any matter related to any Loan Document, or (iii) directed or required the Administrative Agent or any Lender to undertake any action (or refrain from taking any action) with respect to or under any Loan Document, no Affiliated Lender shall have any right to consent (or not consent), otherwise act or direct or require the Administrative Agent or any Lender to take (or refrain from taking) any such action, and (x) all Term Loans held by any Affiliated Lender shall be deemed to be not outstanding for all purposes of calculating whether the Required Lenders have taken any actions and (y) all Term Loans held by Affiliated Lenders shall be deemed to be not outstanding for all purposes of calculating whether all Lenders have taken any action unless the action in question affects such Affiliated Lender in a disproportionately adverse manner than its effect on other Lenders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) notwithstanding anything in this Credit Agreement or the other Loan Documents to the contrary, each Affiliated Lender, by its purchase of any Term Loans, hereby agrees that if a proceeding under any Debtor Relief Laws shall be commenced by or against the Company or any other Loan Party at a time when such Lender is an Affiliated Lender, such Affiliated Lender irrevocably authorizes and empowers the Administrative Agent to vote on behalf of such Affiliated Lender with respect to the Term Loans held by such Affiliated Lender in any manner in the Administrative Agent's sole discretion, unless the Administrative Agent instructs such Affiliated Lender to vote, in which case such Affiliated Lender shall vote with respect to the Term Loans held by it as the Administrative Agent directs, <u>provided</u> that such Affiliated Lender shall be entitled to vote in accordance with its sole discretion (and not in accordance with the direction of the Administrative Agent) in connection with any plan of reorganization to the extent any such plan of reorganization proposes to treat any Obligations held by such Affiliated Lender in a disproportionately adverse manner than the proposed treatment of similar Obligations held by Term Lenders that are not Affiliated Lenders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any purchase of Term Loans by the Company or any of its Subsidiaries shall (i) be effected by an offer to purchase Term Loans pro rata from each Term Lender under the applicable Term Facility in a manner reasonably acceptable to the Administrative Agent, (ii) result in such Term Loans being immediately retired upon such assignment, and (iii) not be funded with a borrowing of Revolving Credit Loans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the aggregate principal amount of all Term Loans under any Term Facility purchased by assignment pursuant to <u>Section</u> <u>10.06</u> and held at any one time by all Affiliated Lenders shall not exceed 10% of the aggregate outstanding principal amount of all Term Loans under such Term Facility.

"<u>Environmental Laws</u>" means any and all Federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials into the environment, including those related to hazardous substances or wastes, air emissions and discharges to waste or public systems.

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"<u>Environmental Liability</u>" means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the Company, any other Loan Party or any of their respective Subsidiaries directly or indirectly resulting from or based upon (a) violation of any Environmental Laws, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.

"<u>Equity Interests</u>" means, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder.

"<u>ERISA Affiliate</u>" means, when used with respect to a Plan, ERISA, the PBGC or a provision of the Code pertaining to employee benefit plans, any Person that is a member of any group of organizations within the meaning of Sections 414(b), (c), (m) or (o) of the Code of which the Company is a member.

"<u>EU Bail-In Legislation Schedule</u>" means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.

"<u>Event of Default</u>" means any of the events described in <u>Section</u> <u>8.01</u>.

"<u>Event of Loss</u>" means, with respect to any property of the Company or a Restricted Subsidiary, (a) the actual or constructive total loss of such property or the use thereof, resulting from destruction, damage beyond repair, or the rendition of such property permanently unfit for normal use from any casualty or similar occurrence whatsoever, (b) the destruction or damage of a material portion of such property from any casualty or similar occurrence whatsoever under circumstances in which such damage cannot reasonably be expected to be repaired, or such property cannot reasonably be expected to be restored to its condition immediately prior to such destruction or damage, within 180 days after the occurrence of such destruction or damage, (c) the condemnation, confiscation or seizure of, or requisition of title to or use of, any property, or (d) in the case of any property located upon a leasehold, the termination or expiration of such leasehold.

"<u>Excess Liquidity</u>" means, on the Closing Date, an amount equal to (a) Liquidity *minus* (b) the Minimum Liquidity Level.

"<u>Excluded Accounts</u>" means deposit or securities accounts maintained solely as tax accounts, payroll accounts, escrow accounts, trust accounts, operational disbursements accounts, petty cash accounts or flexible spending and other benefits and healthcare accounts (including healthcare claims funding accounts).

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"<u>Excluded Asset</u>" means any and all of the following: (i) those assets set forth on <u>Schedule</u> <u>1.01(a)</u>, (ii) [reserved], (iii) assets to the extent the consent of any League is required for the granting of a security interest therein or to the extent that the granting of a security interest therein is prohibited by League Rules or any Contractual Obligation with any League existing on the Effective Date, (iv) the Leases with respect to the Arena, Radio City Music Hall and the Beacon Theatre and any other Leases to the extent that such Leases require the consent of the lessor or any third party for the granting of a secured interest therein, (v) motor vehicles and other assets subject to certificates of title, (vi) assets consisting of contract rights pursuant to contracts containing enforceable restrictions on the granting of security interests therein except to the extent such restrictions are rendered ineffective under Section 9-406, 9-407 or 9-408 of the UCC or other applicable law, (vii) voting stock of or other equity interests (A) in excess of 65% of the voting stock or other equity interests held by the Company or Guarantors in first tier Foreign Subsidiaries, (B) in non-wholly owned subsidiaries if the pledge of such stock or equity interest is prohibited by agreement, organizational documents or applicable law or regulation, (C) in excess of 49% of the voting stock or other equity interests in Radio City Productions LLC and MSG Beacon, LLC, (D) in Excluded Subsidiaries, (E) in MSG Arena Holdings, LLC, (F) in MSG Arena, LLC, (G) in any other Subsidiary of the Company that is formed after the Effective Date for the primary purpose of holding direct ownership interests in the Arena (or indirect ownership interests, so long as the primary purpose of such indirect owner is to hold ownership interests in the direct owner of the Arena) and whose assets primarily consist of ownership interests in the Arena (each of MSG Arena Holdings, LLC, MSG Arena, LLC and any Subsidiary described in this <u>clause (G)</u>, an "<u>Arena Subsidiary</u>"), (H) in BCE or (I) in MSG BCE, LLC, (viii) the Arena License Agreements, (ix) Excluded Accounts, (x) Real Property, other than fee owned Real Property, (xi) assets if the granting or perfecting of a security interest in such assets would violate any applicable law, (xii) any assets purchased with the proceeds of purchase money Indebtedness or Capitalized Lease Obligations incurred pursuant to <u>Section</u> <u>7.14(j)</u> if the granting or perfecting of a security interest in such assets is prohibited by the terms of such purchase money Indebtedness or Capitalized Lease Obligations, (xiii) any intent-to-use trademark application filed in the United States Patent and Trademark Office unless and until an amendment to allege use or a statement of use has been filed and accepted by the United States Patent and Trademark Office, and solely to the extent, if any, that, and solely during the period, if any, in which the grant of a security interest therein would impair the validity or enforceability of, or void, any such application or registration that issues from such intent-to-use application under United States law and (xiv) those assets as to which the Administrative Agent and the Company agree that the cost of obtaining such a security interest or perfection thereof are excessive in relation to the benefit to the Lenders of the security to be afforded thereby.

"<u>Excluded Indebtedness</u>" has the meaning specified in <u>Section</u> <u>8.01(e)</u>.

"<u>Excluded Subsidiary</u>" means (a) any Foreign Subsidiary or any Subsidiary that is held directly or indirectly by a Foreign Subsidiary, (b) any Subsidiary that is prohibited or restricted by applicable Law or the League Rules from providing a Guaranty or by a binding contractual obligation existing on the Effective Date or at the time of the acquisition of such Subsidiary (and not incurred in contemplation of such acquisition) from providing a Guaranty (<u>provided</u> that such contractual obligation is not entered into by the Company or its Restricted Subsidiaries principally for the purpose of qualifying as an "Excluded Subsidiary" under this definition) or if such Guaranty would require governmental (including regulatory) or third party consent, approval, license or authorization, unless such consent, approval, license or authorization has been obtained, (c) any special purpose securitization vehicle (or similar entity), (d) any Subsidiary that is a not-for-profit organization, (e) any Captive Insurance Subsidiary, (f) BCE and (g) any other Subsidiary with respect to which, in the reasonable judgment of the Administrative Agent in consultation with the Company (confirmed in writing by notice to the Company), the cost or other consequences (including any material adverse tax consequences) of providing the Guaranty shall be excessive in view of the benefits to be obtained by the Lenders therefrom.

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"<u>Excluded Swap Obligation</u>" means, with respect to any Guarantor, any Swap Obligation if, and to the extent that, all or a portion of the Guarantee of such Guarantor of, or the grant by such Guarantor of a security interest to secure, such Swap Obligation (or any Guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor's failure for any reason to constitute an "eligible contract participant" as defined in the Commodity Exchange Act and the regulations thereunder at the time the Guarantee of such Guarantor or the grant of such security interest becomes effective with respect to such related Swap Obligation.

"<u>Excluded Taxes</u>" means any of the following Taxes imposed on or with respect to or required to be withheld or deducted from a payment to, the Administrative Agent, any Lender or any other recipient of any payment to be made by or on account of any obligation of the Company hereunder, (a) any Taxes imposed on or measured by its overall net income (however denominated), branch profits taxes, and franchise taxes imposed on it, (i) as a result of such recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) any Tax imposed pursuant to FATCA, (c) in the case of a Foreign Lender, any U.S. federal withholding Tax that is imposed on amounts payable to or for the account of such Foreign Lender pursuant to a law in effect at the time (i) such Foreign Lender becomes a party hereto (other than pursuant to an assignment request by the Company under <u>Section</u> <u>10.12</u>) or (ii) such Foreign Lender designates a new Lending Office, except in each case to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new Lending Office (or assignment), to receive additional amounts from the Company with respect to such withholding Tax pursuant to <u>Section</u> <u>3.01(a)</u> and (d) any Taxes attributable to the failure or inability of the Administrative Agent, any Lender or any other recipient of any payment to be made by or on account of any obligation of the Company hereunder to comply with <u>Section</u> <u>3.01(f)</u>.

"<u>Existing Credit Agreement</u>" means the Credit Agreement, dated as November 12, 2020 (as amended, supplemented or otherwise modified from time to time), among the Company, as the borrower, the lenders party thereto, and JPMorgan, as the administrative agent.

"<u>Existing Credit Agreement Refinancing</u>" means payment in full of all principal, interest, fees and other amounts due or outstanding under the Existing Credit Agreement, including the termination of all commitments thereunder and discharge or release of all Guarantees and Liens thereunder.

"<u>Existing Letters of Credit</u>" means those certain letters of credit, issued prior to the Effective Date, in effect on the Effective Date, and listed on <u>Schedule</u> <u>1.01(b)</u>.

"<u>Existing Maturity Date</u>" has the meaning specified in <u>Section</u> <u>2.17(a)</u>.

"<u>Extended Facility</u>" has the meaning specified in <u>Section</u> <u>2.17(a)</u>.

"<u>Extended Maturity Date</u>" has the meaning specified in <u>Section</u> <u>2.17(a)</u>.

"<u>Extended Revolving Credit Commitments</u>" has the meaning specified in <u>Section</u> <u>2.17(a)</u>.

"<u>Extended Revolving Credit Facility</u>" has the meaning specified in <u>Section</u> <u>2.17(a)</u>.

"<u>Extended Revolving Credit Loan</u>" means any Revolving Credit Loan made pursuant to an Extended Revolving Credit Facility.

"<u>Extended Term Facility</u>" has the meaning specified in <u>Section</u> <u>2.17(a)</u>.

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"<u>Extended Term Loan</u>" means any Term Loan made pursuant to an Extended Term Facility.

"<u>Extending Lender</u>" has the meaning specified in <u>Section</u> <u>2.17(b)</u>.

"<u>Extension</u>" has the meaning specified in <u>Section</u> <u>2.17(a)</u>.

"<u>Extension Amendment</u>" has the meaning specified in <u>Section</u> <u>2.17(e)</u>.

"<u>Extension Request</u>" means a written request from the Company to the Administrative Agent requesting an extension of the Maturity Date pursuant to <u>Section</u> <u>2.17</u>.

"<u>Facility</u>" means any Term Facility, any Revolving Credit Facility or any Incremental Facility, if any, as the context may require.

"<u>FATCA</u>" means Sections 1471 through 1474 of the Code, as of the date of this Credit Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code.

"<u>Federal Funds Effective Rate</u>" means, for any day, the rate calculated by the NYFRB based on such day's federal funds transactions by depository institutions, as determined in such manner as shall be set forth on the NYFRB's Website from time to time, and published on the next succeeding Business Day by the NYFRB as the Federal Funds Effective Rate; <u>provided</u>, that if the Federal Funds Effective Rate as so determined would be less than zero, such rate shall be deemed to be zero for all purposes hereof.

"<u>Federal Reserve Board</u>" means the Board of Governors of the Federal Reserve System of the United States of America.

"<u>Fee Letters</u>" means, collectively, each letter agreement made between the Company and the Administrative Agent, the Lead Arranger or a Lender for the payment of fees in connection with this Credit Agreement.

"<u>Financial Covenants</u>" means the covenants contained in <u>Sections 7.29</u>, <u>7.30</u> and <u>7.31</u>.

"<u>Fixed Amounts</u>" has the meaning specified in <u>Section</u> <u>1.06</u>.

"<u>Flood Insurance Laws</u>" means collectively, (i) the National Flood Insurance Reform Act of 1994 (which comprehensively revised the National Flood Insurance Act of 1968 and the Flood Disaster Protection Act of 1973) as now or hereafter in effect or any successor statute thereto, (ii) the Flood Disaster Reform Act of 2004 as now or hereafter in effect or any successor statute thereto, and (iii) the Biggert-Waters Flood Insurance Reform Act of 2012 as now or hereafter in effect or any successor statute thereto.

"<u>Floor</u>" means the benchmark rate floor, if any, provided in this Credit Agreement initially (as of the execution of this Credit Agreement, the modification, amendment or renewal of this Credit Agreement or otherwise) with respect to the Adjusted Term SOFR or the Adjusted Daily Simple SOFR, as applicable. For the avoidance of doubt, the initial Floor for each of the Adjusted Term SOFR and the Adjusted Daily Simple SOFR shall be zero.

"<u>Foreign Lender</u>" means any Lender that is organized under the laws of a jurisdiction other than that in which the Company is resident for tax purposes (including such a Lender when acting in the capacity of an L/C Issuer). For purposes of this definition, the United States, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction.

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"<u>Foreign Subsidiary</u>" means (i) any Subsidiary that is not a United States Person and (ii) any Subsidiary of an entity that is a Foreign Subsidiary under <u>clause</u> <u>(i)</u> of this definition.

"<u>Fronting Exposure</u>" means, at any time there is a Defaulting Lender, with respect to any L/C Issuer, such Defaulting Lender's Applicable Percentage of the outstanding L/C Obligations with respect to Letters of Credit issued by such L/C Issuer other than L/C Obligations as to which such Defaulting Lender's participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof.

"<u>Fund</u>" means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business.

"<u>GAAP</u>" means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or such other principles as may be approved by a significant segment of the accounting profession in the United States, that are applicable to the circumstances as of the date of determination, consistently applied.

"<u>Governmental Authority</u>" means the government of the United States or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

"<u>Granting Lender</u>" has the meaning specified in <u>Section</u> <u>10.06(h)</u>.

"<u>Guarantee</u>" of or by any Person (the "guarantor") means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other monetary obligation payable by another Person (the "primary obligor") in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or other obligation; <u>provided</u> that the term "Guarantee" shall not include endorsements for collection or deposit in the ordinary course of business. The amount, as of any date of determination, of any Guarantee shall be the principal amount outstanding on such date of the Indebtedness or other obligation guaranteed thereby (or, in the case of (i) any Guarantee the terms of which limit the monetary exposure of the guarantor or (ii) any Guarantee of an obligation that does not have a principal amount, the maximum monetary exposure as of such date of the guarantor under such Guarantee (as determined, in the case of <u>clause (i)</u>, pursuant to such terms or, in the case of <u>clause (ii)</u>, reasonably and in good faith by a Responsible Officer of the Company)). The term "Guarantee" used as a verb has a corresponding meaning.

"<u>Guarantors</u>" means Parent and each Subsidiary Guarantor.

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"<u>Guaranty</u>" means the Guaranty made by the Guarantors under <u>Article</u> <u>IV</u> in favor of the Secured Parties.

"<u>Hazardous Materials</u>" means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any Environmental Laws.

"<u>Hedge Bank</u>" means any Person that (i) is the Administrative Agent, the Lead Arranger or an Affiliate of any of the foregoing, (ii) at the time it enters into a Secured Hedge Agreement, is a Lender or an Affiliate of a Lender or (iii) is a Lender or an Affiliate of a Lender as of the Effective Date and is a party to Secured Hedge Agreement with a Loan Party on the Effective Date, in each case in its capacity as a party to such Secured Hedge Agreement.

"<u>Honor Date</u>" has the meaning specified in <u>Section</u> <u>2.03(c)(i)</u>.

"<u>Incremental Borrowing</u>" means an Incremental Term Borrowing or an Incremental Revolving Credit Borrowing, as the context may require.

"<u>Incremental Closing Date</u>" means, with respect to any Incremental Facility, the first date all of the conditions precedent set forth in the Incremental Supplement applicable to such Incremental Facility are satisfied or waived in accordance with <u>Section</u> <u>10.01</u>.

"<u>Incremental Equivalent Debt</u>" means Indebtedness in an amount not to exceed the then available Incremental Facility Limit incurred by the Company or any Subsidiary Guarantor consisting of the issuance of one or more series of senior secured notes or loans, junior lien loans or notes, subordinated loans or notes or senior unsecured loans or notes (in each case in respect of the issuance of notes, whether issued in a public offering, Rule 144A or other private placement or purchase or otherwise), commitments under a revolving credit facility or any bridge financing in lieu of the foregoing, or secured or unsecured "mezzanine" debt, in each case, to the extent secured, subject to (x) with respect to Incremental Equivalent Debt secured on a junior basis to the Obligations, a customary "junior lien" intercreditor agreement in form and substance reasonably satisfactory to the Administrative Agent and (y) with respect to Incremental Equivalent Debt secured on a pari passu basis with the Obligations, a customary "equal priority" intercreditor agreement in form and substance reasonably satisfactory to the Administrative Agent (<u>provided</u> that in the case of Incremental Equivalent Debt in the form of a revolving credit facility secured by the Collateral on a pari passu basis with the Obligations, such intercreditor agreement shall provide that the Administrative Agent shall be the controlling representative for purposes of enforcement of collateral, subject to customary provisions permitting control to shift to non-controlling representatives after a period to be agreed of not less than 120 days if the relevant event of default remains outstanding and no enforcement action is being diligently pursued); <u>provided</u> that, (i) in the case of Incremental Equivalent Debt consisting of revolving facilities (A) (x) with respect to Incremental Equivalent Debt secured on a junior basis to the Obligations or that is unsecured, such Indebtedness does not mature on or prior to, and no scheduled mandatory commitment reduction in respect thereof shall be required prior to, 91 days after the maturity date of the Initial Revolving Credit Loans and (y) with respect to Incremental Equivalent Debt secured on a pari passu basis with the Obligations, such Indebtedness does not mature on or prior to, and no scheduled mandatory commitment reduction in respect thereof shall be required prior to, the maturity date of the Initial Revolving Credit Loans and (B) in the case of Incremental Equivalent Debt consisting of term loans (x) with respect to Incremental Equivalent Debt secured on a junior basis to the Obligations or that is unsecured, the maturity date and the weighted average life to maturity of such Indebtedness shall be no earlier than or shorter than, as the case may be, 91 days after that of the Initial Term Loans or the remaining weighted average life to maturity of the Initial Term Loans, as applicable, and (y) with respect to Incremental Equivalent Debt

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secured on a pari passu basis with the Obligations, the maturity date and the weighted average life to maturity of such Indebtedness shall be no earlier than or shorter than, as the case may be, that of the Initial Term Loans or the remaining weighted average life to maturity of the Initial Term Loans, as applicable; <u>provided</u>, that for purposes of this <u>clause (i)</u>, with respect to maturity for bridge facilities, such maturity may be earlier than that of the Initial Revolving Credit Loans and Initial Term Loans, as applicable, if such maturity is automatically extended upon the initial maturity date to a date not earlier than the maturity date of the Initial Revolving Credit Loans and Initial Term Loans, as applicable (or 91 days after that of the Initial Revolving Credit Loans and Initial Term Loans, as applicable, in the case of any bridge facility secured on a junior basis to the Obligations or that is unsecured) pursuant to customary extension rollover provisions (including by conversion or exchange)), (ii) such Indebtedness reflects market terms at the time of incurrence or issuance as determined by the Company and the lenders or financing sources providing such financing (it being understood to the extent that any financial maintenance covenant is added for the benefit of any such debt, such financial maintenance covenant shall also be added for the benefit of the Loans and any Incremental Loans existing at such time), (iii) there shall be no borrower or guarantor in respect of any such indebtedness that is not (or does not become) the Company or a Guarantor under the Facility and (iv) if secured, shall only be secured by the Collateral and the proceeds of such indebtedness.

"<u>Incremental Facility</u>" means an Incremental Term Facility or an Incremental Revolving Credit Facility, as the context may require.

"<u>Incremental Facility Limit</u>" means an amount equal to the sum of (a) $75,000,000 *less* the aggregate outstanding principal amount of all Incremental Equivalent Debt issued and/or incurred in reliance on this <u>clause (a)</u> *plus* (b) (i) all voluntary prepayments of the Initial Term Facility (including, in the case of loan buy-backs permitted hereunder that are offered to all Lenders of the applicable class on a pro rata basis, the actual purchase price paid in cash pursuant to such buy-backs), any Incremental Term Facility secured on a pari passu basis with the Initial Term Facility and any Incremental Equivalent Debt secured on a pari passu basis with the Initial Term Facility (including voluntary prepayments made at a discount to par) and (ii) voluntary and permanent commitment reductions of the Initial Revolving Credit Facility and any revolving credit facility secured on a pari passu basis with the Initial Revolving Credit Facility prior to the date of any such incurrence (in each case, to the extent not funded with the proceeds of Long-Term Indebtedness) *plus* (c) an additional amount such that, after giving effect to the incurrence of such additional amount (but without giving effect to any amount incurred simultaneously under <u>clauses (a)</u> or <u>(b)</u> above) and after giving pro forma effect to any acquisition or Investment consummated in connection therewith or any other appropriate pro forma adjustments, (I) in the case of an Incremental Facility or Incremental Equivalent Debt that is secured on a *pari passu* basis with the Obligations, the Senior Secured Leverage Ratio on a pro forma basis is equal to or less than 3.50:1.00 and (II) in the case of an Incremental Facility or Incremental Equivalent Debt that is unsecured or secured on a junior basis to the Obligations, the Total Leverage Ratio on a pro forma basis is equal to or less than 4.00:1.00; <u>provided</u> that, compliance with the preceding <u>clause (c)</u> shall be determined (A) assuming that the full amounts of all revolving credit facilities (including any then-existing credit facilities) have all been fully drawn, (B) utilizing the financial statements most recently delivered or deemed delivered pursuant to <u>Section</u> <u>7.01</u>, (C) giving full pro forma effect to (1) all Specified Transactions (as provided in such definition) that have occurred since the last day of the most recently completed Measurement Period for which financial statements have been delivered or deemed delivered pursuant to <u>Section</u> <u>7.01</u> (including, for the avoidance of doubt, but without duplication, any acquisitions constituting Specified Transactions that are to be consummated contemporaneously with the closing of, and using the proceeds of, such proposed Incremental Facility or Incremental Equivalent Debt, as the case may be), and (2) the application of the proceeds of the proposed Incremental Facility or Incremental Equivalent Debt, as the case may be, and (D) otherwise in accordance with the applicable definitions therein); <u>provided</u>, <u>further</u>, that any amounts incurred pursuant to <u>clause (c)</u> hereof (including through reclassification) and subsequently repaid shall not be included in the calculation of <u>clause (b)</u> above.

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"<u>Incremental Lender</u>" means an Incremental Term Lender or an Incremental Revolving Credit Lender, as the context may require.

"<u>Incremental Loan</u>" means an Incremental Term Loan or an Incremental Revolving Credit Loan, as the context may require.

"<u>Incremental Revolving Credit Borrowing</u>" means a borrowing consisting of simultaneous Incremental Revolving Credit Loans of the same Type and, in the case of Term Benchmark Loans, having the same Interest Period made by each of the applicable Incremental Revolving Credit Lenders pursuant to Section 2 of any Incremental Revolving Credit Supplement.

"<u>Incremental Revolving Credit Commitment</u>" means, subject to the terms and conditions of <u>Section</u> <u>2.15</u> as to each Incremental Revolving Credit Lender, its obligation to make Incremental Revolving Credit Loans to the Company pursuant to Section 2 of the applicable Incremental Revolving Credit Supplement in an aggregate principal amount at any one time outstanding not to exceed the amount set forth opposite such Lender's name on Schedule I to such Incremental Supplement under the caption "Incremental Revolving Credit Commitment" or opposite such caption in the Assignment and Assumption pursuant to which such Incremental Revolving Credit Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Credit Agreement.

"<u>Incremental Revolving Credit Facility</u>" has the meaning specified in <u>Section</u> <u>2.15(a)</u>.

"<u>Incremental Revolving Credit Lender</u>" means at any time, (a) on or prior to the applicable Incremental Closing Date, any Lender that has Incremental Revolving Credit Commitments at such time, and (b) at any time after the applicable Incremental Closing Date, any Lender that holds Incremental Revolving Credit Commitments and/or Incremental Revolving Credit Loans at such time.

"<u>Incremental Revolving Credit Loan</u>" means an advance made by any Incremental Revolving Credit Lender under an Incremental Revolving Credit Facility.

"<u>Incremental Revolving Credit Note</u>" means a promissory note made by the Company in favor of an Incremental Revolving Credit Lender, evidencing Incremental Revolving Credit Loans made by such Incremental Revolving Credit Lender, substantially in the form of <u>Exhibit</u> <u>B</u><u>-2</u>.

"<u>Incremental Revolving Credit Supplement</u>" has the meaning specified in <u>Section</u> <u>2.15(b)</u>.

"<u>Incremental Supplement</u>" means an Incremental Term Supplement or an Incremental Revolving Credit Supplement, as the context may require.

"<u>Incremental Term Borrowing</u>" means a borrowing consisting of simultaneous Incremental Term Loans of the same Type and, in the case of Term Benchmark Loans, having the same Interest Period, made by each of the applicable Incremental Term Lenders pursuant to Section 2 of any Incremental Term Supplement.

"<u>Incremental Term Commitment</u>" means, subject to the terms and conditions of <u>Section</u> <u>2.15</u> as to each Incremental Term Lender, its obligation to make Incremental Term Loans to the Company on the applicable Incremental Closing Date, pursuant to Section 2 of the applicable Incremental Term Supplement in an aggregate principal amount at any one time outstanding not to exceed the amount set forth opposite such Incremental Term Lender's name on Schedule I to such Incremental Term Supplement under the caption "Incremental Term Commitment" or opposite such caption in the Assignment and Assumption

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pursuant to which such Incremental Term Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Credit Agreement.

"<u>Incremental Term Facility</u>" has the meaning specified in <u>Section</u> <u>2.15(a)</u>.

"<u>Incremental Term Lender</u>" means at any time, (a) on or prior to the applicable Incremental Closing Date, any Lender that has an Incremental Term Commitment at such time and (b) after the applicable Incremental Closing Date, any Lender that holds Incremental Term Loans at such time.

"<u>Incremental Term Loan</u>" means an advance made by any Incremental Term Lender under an Incremental Term Facility.

"<u>Incremental Term Loan Note</u>" means a promissory note made by the Company in favor of an Incremental Term Lender, evidencing Incremental Term Loans made by such Incremental Term Lender, substantially in the form of <u>Exhibit</u> <u>B</u><u>-4</u>.

"<u>Incremental Term Supplement</u>" has the meaning specified in <u>Section</u> <u>2.15(b)</u>.

"<u>Incurrence-Based Amounts</u>" has the meaning specified in <u>Section</u> <u>1.06</u>.

"<u>Indebtedness</u>" means, as to any Person, Capitalized Lease Obligations of such Person and other indebtedness of such Person for borrowed money (whether by loan or the issuance and sale of debt securities) or for the deferred purchase price of property or services in respect of which such Person is the purchaser (other than (a) any earn-out obligation or similar payment until such obligation has become a non-contingent liability on the balance sheet of such Person, (b) accruals for payroll, retirement obligations, workers compensation and other liabilities accrued in the ordinary course of business and (c) any purchase price holdback in the ordinary course of business, until such obligation has become a non-contingent liability on the balance sheet of such Person), other than accounts payable (other than for borrowed money) incurred in the ordinary course of business of such Person. Without limiting the generality of the foregoing, for the avoidance of doubt, (a) such term shall include (1) all obligations of such Person under Swap Contracts (the amount of which shall be deemed to be the Swap Termination Value thereof), (2) all Indebtedness of others Guaranteed by such Person, (3) all Indebtedness for borrowed money of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed, which, in each case, shall be deemed to be equal to the lesser of (A) the aggregate unpaid amount of such Indebtedness and (B) the fair market value of the property encumbered thereby, (4) all unreimbursed obligations of such Person as an account party in respect of drawn letters of credit and letters of guaranty, (5) all obligations, contingent or otherwise, of such Person in respect of bankers' acceptances and (6) the Indebtedness of any other Person (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person's ownership interest in such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor, and (b) such term shall exclude (1) deferred revenue (including advance ticket sales), (2) obligations to make or pay advances, deposits or deferred compensation to announcers, broadcasters, on-air talent, promoters, producers or other third parties in connection with the development, booking, production, broadcast, promotion, execution, staging or presentations of shows, events or other entertainment activities or related merchandising, concessions or licensing and (3) obligations to pay advances, deposits or deferred compensation to the holders of rights to content or intellectual property in connection with the development, broadcast, distribution or license of content or underlying intellectual property.

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"<u>Indemnified Taxes</u>" ****means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Company under any Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.

"<u>Indemnitee</u>" has the meaning specified in <u>Section</u> <u>10.04(b)</u>.

"<u>Information</u>" has the meaning specified in <u>Section</u> <u>10.20</u>.

"<u>Initial L/C Issuer</u>" has the meaning specified in the definition of "L/C Issuer."

"<u>Initial Facilities</u>" means the Initial Revolving Credit Facility and the Initial Term Facility.

"<u>Initial Revolving Credit Facility</u>" means, initially, the aggregate amount of the Revolving Credit Lenders' Revolving Credit Commitments on the Effective Date, and hereafter on any date of determination, the aggregate amount of the Revolving Credit Commitments of the Revolving Credit Lenders on such date.

"<u>Initial Revolving Credit Loans</u>" means the Revolving Credit Loans made under the Initial Revolving Credit Facility.

"<u>Initial Term Facility</u>" means, initially, the aggregate amount of the Term Lenders' Term Commitments on the Effective Date, and hereafter on any date of determination, the aggregate principal amount of the Term Loans made on the Effective Date outstanding on such date.

"<u>Initial Term Loans</u>" means the Term Loans made under the Initial Term Facility.

"<u>Intellectual Property Security Agreement</u>" means the Intellectual Property Security Agreement, dated as of the Effective Date, duly executed by each Loan Party and the Administrative Agent.

"<u>Intellectual Property Security Agreement Supplement</u>" has the meaning specified in Section 13(b) of the Security Agreement.

"<u>Interest Payment Date</u>" means, (a) as to any Term Benchmark Loan, the last day of each Interest Period applicable to such Loan and the Maturity Date of the Facility under which such Loan was made; <u>provided</u>, <u>however</u>, that if any Interest Period for a Term Benchmark Loan exceeds three months, the respective dates that fall every three months after the beginning of such Interest Period shall also be Interest Payment Dates; (b) as to any ABR Loan, the last Business Day of each March, June, September and December and the Maturity Date of the Facility under which such Loan was made; and (c) as to any RFR Loan, each day that is on the numerically corresponding day in each calendar month that is three months after the date of such Borrowing (or, if there is no such numerically corresponding date in such month, then the last day of such month) and the Maturity Date of the Facility under which such Loan was made.

"<u>Interest Period</u>" means with respect to any Term Benchmark Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that is one, three or six months thereafter (in each case, subject to the availability for the Benchmark applicable to the relevant Loan or Commitment), as the Company may elect; <u>provided</u> that (i) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day, (ii) any Interest Period that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period and (iii) no tenor that has been removed from this definition pursuant to <u>Section</u> <u>3.03(e)</u> shall be available for specification in the relevant Borrowing Request. For

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purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing.

"<u>Investments</u>" has the meaning specified in <u>Section</u> <u>7.17</u>.

"<u>ISP</u>" means the International Standby Practices (ISP98) International Chamber of Commerce Publication No. 590, as the same may be amended and as in effect from time to time.

"<u>Issuer Documents</u>" means with respect to any Letter of Credit, the Letter of Credit Application, and any other document, agreement and instrument entered into by any L/C Issuer and the Company or any Subsidiary or in favor of any L/C Issuer and relating to any such Letter of Credit.

"<u>JPMorgan</u>" means JPMorgan Chase Bank, N.A. and its successors.

"<u>Knicks Arena License Agreement</u>" means the Arena License Agreement, dated as of April 15, 2020, between MSG Arena, LLC and New York Knicks, LLC, as amended, restated, modified, renewed or replaced from time to time in a manner not prohibited by this Agreement.

"<u>Labor Dispute</u>" means any strike, lockout, work stoppage, or other similar action involving any labor organization representing any employees of the Company or any Restricted Subsidiary. For the avoidance of doubt, "Labor Dispute" does not include any individual disputes with employees of the Company or any Restricted Subsidiary or any agents for such employees.

"<u>Latest Maturity Date</u>" shall mean, at any date of determination, the latest maturity or expiration date applicable to any Loan or Commitment hereunder at such time, including the latest maturity or expiration date of any Term Loan or Revolving Credit Loan.

"<u>Laws</u>" means, collectively, all international, foreign, Federal, state and local statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directives, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case whether or not having the force of law.

"<u>L/C Advance</u>" means, with respect to each Lender, such Lender's funding of its participation in any L/C Borrowing in accordance with its Applicable Revolving Credit Percentage.

"<u>L/C Borrowing</u>" means an extension of credit resulting from a drawing under any Letter of Credit which has not been reimbursed on the date when made or refinanced as a Borrowing.

"<u>L/C Credit Extension</u>" means, with respect to any Letter of Credit, the issuance thereof or extension of the expiry date thereof, or the increase of the amount thereof.

"<u>L/C Issuer</u>" means JPMorgan, Bank of America, N.A. and U.S. Bank National Association (each, an "<u>Initial L/C Issuer</u>"), any Eligible Assignee to which a portion of the Letter of Credit Commitment under this Credit Agreement has been assigned pursuant to <u>Section</u> <u>10.06</u>, or any other Lender that is a bank and that agrees to act as an L/C Issuer hereunder, so long as (1) such Initial L/C Issuer, Eligible Assignee or other Lender is not a Defaulting Lender, and (2) such Eligible Assignee or other Lender expressly agrees to perform in accordance with their terms all of the obligations that by the terms of this Credit Agreement are required to be performed by it as an L/C Issuer and notifies the Administrative Agent of its Letter of Credit Commitment and Lending Office, for so long as such Initial L/C Issuer, Eligible Assignee or other Lender, as the case may be, shall have a Letter of Credit Commitment.

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"<u>L/C Obligations</u>" means, as at any date of determination, the aggregate amount available to be drawn under all outstanding Letters of Credit <u>plus</u> the aggregate of all Unreimbursed Amounts, including all L/C Borrowings. For purposes of computing the amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with <u>Section</u> <u>1.11</u>. For all purposes of this Credit Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be "outstanding" in the amount so remaining available to be drawn.

"<u>LCT Election</u>" has the meaning specified in <u>Section</u> <u>1.10</u>.

"<u>LCT Test Date</u>" has the meaning specified in <u>Section</u> <u>1.10</u>.

"<u>Lead Arranger</u>" means JPMorgan, acting in its capacity as lead arranger and book runner.

"<u>League</u>" means (a) an organization governing, administering or regulating the participation of teams or participants in any professional sport, including the National Basketball Association, the National Hockey League and the Women's National Basketball Association and any minor league teams associated therewith, including, in each case, the Commissioner, management council, executive committee or similar governing body of each such organization and (b) any entity through which each such organization conducts business or that may be formed generally by the member clubs of such organization.

"<u>League Rules</u>" means (a) the constitution and by-laws of each League, (b) the governing documents of each League, (c) all present and future rules, regulations, interpretations, memoranda, procedures, resolutions, directives, policies and guidelines of each League, (d) any agreements and arrangements to which the Company or any of its Subsidiaries is (or after the Effective Date may become) subject or by which it or its assets are (or may become) bound with or in favor of any League, (e) any agreements and arrangements to which any League's teams generally are (or after the Effective Date may become) subject or by which they or their assets are (or may become) bound, in each case as such agreements or arrangements may be amended or adopted from time to time and including the custom and practice thereunder, including, but not limited to, League Rules relating to membership relocation, indebtedness and ownership transfers, territorial rights and limitations, the telecast or broadcast, by over-the-air television, non-broadcast television, radio or any other means, whether on a local, regional, national or international basis, of team games and the use of League or team logos, names or other intellectual property and (f) any conditions that the League may impose with respect to transactions in which any League's teams may engage.

"<u>League-Wide Labor Controversy</u>" means any strike, lock-out or other labor controversy affecting any entire League involving teams with respect to which the Company or any Restricted Subsidiaries has one or more Arena License Agreements.

"<u>Leases</u>" means those leases and subleases pursuant to which any of the Loan Parties has been granted or holds the right to use or occupy Real Property demised thereunder, together with all amendments, modifications, extensions, renewals and restatements thereof and agreements related thereto.

"<u>Lender Model</u>" means the Company's financial model dated May 27, 2022.

"<u>Lenders</u>" means the banks or other financial institutions which are parties hereto, as well as any Persons that become a "Lender" hereunder pursuant to <u>Section</u> <u>10.06</u> and, as the context requires, includes any Incremental Lender, together with their respective successors and assigns.

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"<u>Lending Office</u>" means, as to any Lender, the office or offices of such Lender described as such in such Lender's Administrative Questionnaire, or such other office or offices as a Lender may from time to time notify the Company and the Administrative Agent.

"<u>Letter of Credit</u>" means any letter of credit issued hereunder, and shall include any Existing Letter of Credit (which shall be deemed issued hereunder on the Effective Date). A Letter of Credit may be a Trade Letter of Credit or a Standby Letter of Credit.

"<u>Letter of Credit Application</u>" means an application and agreement for the issuance or amendment of a Letter of Credit in the form from time to time in use by an L/C Issuer.

"<u>Letter of Credit Commitment</u>" means, as to any L/C Issuer, (a) the amount set forth opposite such L/C Issuer's name on <u>Schedule</u> <u>2.01</u> under the caption "Letter of Credit Commitment" or (b) if such L/C Issuer has entered into one or more Assignment and Assumptions, the amount set forth for such L/C Issuer in the Register as such L/C Issuer's "Letter of Credit Commitment", as such amount may be reduced at or prior to such time pursuant to <u>Section</u> <u>2.06(a)</u>; <u>provided</u> that if any L/C Issuer shall become a Defaulting Lender, the Company may use its commercially reasonable efforts to reallocate the Letter of Credit Commitment of such Defaulting Lender among other Lenders; <u>provided</u>, <u>further</u> that if, after 20 Business Days of the Company attempting to reallocate such Letter of Credit Commitments (or such longer period as the Company may decide in its sole discretion), the Letter of Credit Commitments of such Defaulting Lender have not been fully reallocated among other Lenders, then at the option of the Company (which shall be exercised by a written notice thereof to the Administrative Agent), the Letter of Credit Commitment of each other L/C Issuer (but excluding any L/C Issuer who shall have only become an L/C Issuer as a result of the Company's reallocation efforts) that is not a Defaulting Lender shall be increased by a pro rata amount of the remaining unallocated amount of such Defaulted Lender's Letter of Credit Commitment, such that the aggregate Letter of Credit Commitments are not reduced as a result thereof, or the Company shall be permitted to replace such L/C Issuer in accordance with <u>Section</u> <u>10.12</u>.

"<u>Letter of Credit Expiration Date</u>" means (a) initially, the day that is seven days prior to the Maturity Date then in effect for the Initial Revolving Credit Facility (or, if such day is not a Business Day, the next preceding Business Day) and (b) after the consummation of any Incremental Revolving Credit Facility with a Maturity Date that is later than the Maturity Date of the Initial Revolving Credit Facility, if an Incremental Revolving Credit Lender thereunder agrees to be an L/C Issuer and issue a Letter of Credit with a Letter of Credit Expiration Date that is the day that is seven days prior to the Maturity Date then in effect for the Revolving Credit Facility (or, if such day is not a Business Day, the immediately preceding Business Day) with the latest Maturity Date, the day that is seven days prior to the Maturity Date then in effect for the Revolving Credit Facility (or, if such day is not a Business Day, the immediately preceding Business Day) with the latest Maturity Date.

"<u>Letter of Credit Fee</u>" has the meaning specified in <u>Section</u> <u>2.03(i)</u>.

"<u>Letter of Credit Sublimit</u>" means an amount equal to the lesser of (a) $25,000,000 and (b) the aggregate amount of the L/C Issuers' Letter of Credit Commitments at such time, as such amount may be reduced pursuant to <u>Section</u> <u>2.06(a)</u>. The Letter of Credit Sublimit is part of, and not in addition to, the Revolving Credit Facility.

"<u>Liabilities</u>" means any losses, claims (including intraparty claims), demands, damages or liabilities of any kind.

"<u>Liens</u>" has the meaning specified in <u>Section</u> <u>7.16</u>.

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"<u>Limited Condition Transaction</u>" means (i) an acquisition or any investment by any Loan Party of any assets, business or Person permitted to be acquired by such Loan Party under the terms of this Credit Agreement, in each case the consummation of which is not conditioned on the availability of, or on obtaining, third-party financing and (ii) any redemption or repayment of Indebtedness requiring irrevocable notice in advance of such redemption or repayment.

"<u>Liquidity</u>" means at any time the sum of (x) unrestricted cash and Cash Equivalents (including cash supporting deferred revenue or collections due to promoters) of the Company and the Subsidiary Guarantors, and (y) the aggregate amount then available to be drawn under any Revolving Credit Facility, in each case, at such time.

"<u>Loan</u>" means an extension of credit by a Lender to the Company under <u>Article</u> <u>II</u> in the form of a Term Loan or a Revolving Credit Loan (including Incremental Loans, if any).

"<u>Loan Documents</u>" means, collectively, (a) this Credit Agreement, (b) the Parent Negative Pledge Agreement, (c) the Notes, (d) the Collateral Documents, (e) the Fee Letters, (f) each Issuer Document, (g) each Incremental Supplement, if any, and (h) solely for purposes of the Collateral Documents (including in the term "Obligations" as used in the definition of "Secured Obligations" in the Security Agreement and in the Intellectual Property Security Agreement) and <u>Article</u> <u>IV</u> hereof, each Secured Hedge Agreement and each Secured Cash Management Agreement.

"<u>Loan Parties</u>" means, collectively, the Company and each Guarantor.

"<u>Long-Term Indebtedness</u>" means any Indebtedness for borrowed money (excluding Indebtedness permitted by <u>clause (e)</u> of <u>Section</u> <u>7.14</u>) that, in accordance with GAAP, is not a current liability.

"<u>Mandatory Prepayment Disposition</u>" has the meaning specified in <u>Section</u> <u>2.05(b)(i)</u>.

"<u>Margin Stock</u>" means "margin stock" as defined in Regulation U.

"<u>Master Agreement</u>" has the meaning specified in the definition of "Swap Contract."

"<u>Master Subordinated Intercompany Note</u>" means an intercompany note substantially in the form of <u>Exhibit</u> <u>F</u>.

"<u>Material Adverse Effect</u>" means a materially adverse effect upon (a) the property, business, assets, condition (financial or otherwise), liabilities or operations of the Company and the Restricted Subsidiaries taken as a whole on a combined basis in accordance with GAAP, (b) the Facility or Collateral (with respect to <u>clauses</u> <u>(a)</u> and <u>(b)</u>, other than changes resulting from industry wide developments affecting companies in similar businesses that do not have a disproportionate impact on the Company and the Restricted Subsidiaries or changes resulting from a League-Wide Labor Controversy; <u>provided</u> that any League-Wide Labor Controversy shall not, in and of itself, be deemed to constitute a Material Adverse Effect), (c) the ability of the Company and the Restricted Subsidiaries taken as a whole to perform the Obligations hereunder, or (d) the legality, validity, binding nature or enforceability of this Credit Agreement or any other Loan Document or the validity, perfection, priority or enforceability of the security interest created, or purported to be created, by the Security Agreement.

"<u>Maturity Date</u>" means (a) with respect to the Initial Facilities, June 30, 2027, and (b) with respect to each Incremental Facility, the maturity date for such Incremental Facility set forth in the applicable Incremental Supplement (<u>provided</u> that the maturity date of any Incremental Facility shall be subject to the provisions of <u>Section</u> <u>2.15(b)</u>).

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"<u>Maximum Rate</u>" has the meaning specified in <u>Section</u> <u>10.08</u>.

"<u>Measurement Period</u>" means, as of each date of determination, the period of four consecutive fiscal quarters of the Company, then most recently ended for which financial statements are required to have been delivered by the Company pursuant to <u>Section</u> <u>7.01</u>.

"<u>MIRE Event</u>" shall mean if there are any Mortgaged Properties at such time, any increase, extension or renewal of any of the Commitments or Loans (including an Incremental Loans or any other incremental credit facilities hereunder, but excluding (i) any continuation or conversion of borrowings or (ii) the making of any Loan).

"<u>Moody's</u>" means Moody's Investors Service, Inc. and any successor thereto.

"<u>Mortgage</u>" means a mortgage, deed of trust, deed to secure debt, trust deed or other security document entered into by the owner of a Mortgaged Property in favor of the Administrative Agent for the benefit of the Secured Parties creating a Lien on such Mortgaged Property in such form as reasonably agreed between the Company and the Administrative Agent, as the same may be amended, supplemented or otherwise modified from time to time.

"<u>Mortgaged Property</u>" means all Real Property identified on <u>Schedule 1.01(c)</u>.

"<u>MSG Entertainment Corp.</u>" means Madison Square Garden Entertainment Corp., a Delaware corporation.

"<u>Multiemployer Plan</u>" means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

"<u>Net Cash Proceeds</u>" means proceeds received by the Company or any of the Restricted Subsidiaries in cash as and when received from (x) any Disposition or the incurrence or issuance of Indebtedness of the Company or any of the Restricted Subsidiaries, in each case after deduction of (i) the costs of selling, recovery or other transaction expenses payable by the Company or any of the Restricted Subsidiaries in connection with obtaining such proceeds (including banking, professional or other fees, commissions, discounts and expenses, transfer and similar taxes incurred in connection with such Disposition, incurrence or issuance, and the Company's good faith reasonable estimate of any income, franchise, transfer or other tax liability and reserves for indemnification) arising from, such Disposition, incurrence or issuance and (ii) the principal amount of, and the premium or penalty, if any, plus the interest and other amounts on any Indebtedness permitted under this Credit Agreement that is secured by the applicable asset and that is required to be repaid by the terms of such Indebtedness (unless permitted by such terms to be reinvested) in connection with such transaction (other than Indebtedness under the Loan Documents) or (y) any casualty insurance or condemnation awards with respect to an Event of Loss, after deduction of (i) the costs of obtaining such award with respect to an Event of Loss (including fees and costs of experts, consultants and/or attorneys), and any income, franchise, transfer or other tax liability arising therefrom and (ii) the principal amount of, and the premium or penalty, if any, plus the interest and other amounts on any Indebtedness permitted under this Credit Agreement that is secured by the applicable assets and is required to be repaid by the terms of such Indebtedness (unless permitted by such terms to be reinvested) in connection with such Event of Loss (other than Indebtedness under the Loan Documents). If any amount payable to the Company or any such Restricted Subsidiary in respect of any such incurrence or issuance shall be or become evidenced by any promissory note or other negotiable or non-negotiable instrument, the cash proceeds received on any such note or instrument shall constitute Net Cash Proceeds as and when received.

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"<u>Net Income</u>" means, with respect to any Person, the net income (loss) of such Person, determined in accordance with GAAP (determined, for the avoidance of doubt, on an unconsolidated basis) and before any reduction in respect of preferred stock dividends.

"<u>Net Interest Expense</u>" means, for any Measurement Period, the sum of (a)(i) all interest expense in connection with (x) borrowed money (including capitalized interest) or (y) the deferred purchase price of assets, and in each case to the extent treated as interest in accordance with GAAP during such Measurement Period (including all interest paid or payable with respect to discontinued operations only to the extent the revenues and expenses of such operations are included in the Adjusted Operating Income), of the Company and the Restricted Subsidiaries determined on a consolidated basis without duplication and in accordance with GAAP for the most recently completed Measurement Period <u>plus</u> (ii) any cash payments made during such period in respect of accrued interest payable in kind referred to in <u>clause (b)(iii)</u> below that was amortized or accrued in a previous period or in such Measurement Period (other than cash payments of accrued interest payable in kind in connection with the prepayment or repayment of all or a portion of the underlying indebtedness), <u>minus</u> <u>(b)(i)</u> all interest income (without taking into account any interest income arising from intercompany Indebtedness between or among the Company (as lender) and the Parent and/or its direct and indirect equityholders (as borrowers)) for such Measurement Period, plus (ii) to the extent included in clause (a) above for such period, non-cash amounts attributable to amortization of financing costs paid in a previous period or in such Measurement Period, plus (iii) to the extent included in clause (a) above for such period, non-cash amounts attributable to amortization of debt discounts or accrued interest payable in kind for such period, in each case of the Company and the Restricted Subsidiaries determined on a consolidated basis without duplication and in accordance with GAAP; <u>provided</u> that (a) the upfront fees being paid to the Administrative Agent and Lenders on the Closing Date in connection with this Agreement and (b) the prepayment premium being paid in respect of the prepayment of the Existing Credit Agreement on the Closing Date, in each case, shall not be included in Net Interest Expense.

"<u>New Subsidiary</u>" means any Person which becomes a Subsidiary of the Company after the Effective Date.

"<u>Non-Consenting Lender</u>" means a Lender who does not agree to a consent, waiver or amendment to any provision of the Loan Documents if: (i) the Company or the Administrative Agent has requested that the Lenders consent to a departure or waiver of any provisions of the Loan Documents or agree to any amendment thereto, (ii) the consent, waiver or amendment in question requires the agreement of each Lender, all affected Lenders or all the Lenders or all affected Lenders and (iii) the Required Lenders have agreed to such consent, waiver or amendment.

"<u>Non-Defaulting Lender</u>" means, at any time, each Lender that is not a Defaulting Lender at such time.

"<u>Non-Extending Lender</u>" has the meaning specified in <u>Section</u> <u>2.17(a)</u>.

"<u>Non-Financial Entity</u>" has the meaning specified in <u>Section</u> <u>10.06(b)</u>.

"<u>Non</u><u>-Required Consents</u>" means the consent of any counterparty to a Contractual Obligation to the grant of a security interest in the agreement constituting the Contractual Obligation.

"<u>Note</u>" means a Term Loan Note, a Revolving Credit Note, an Incremental Term Loan Note, if any, or an Incremental Revolving Credit Note, if any, as the context may require.

"<u>NYFRB</u>" means the Federal Reserve Bank of New York.

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"<u>NYFRB Rate</u>" means, for any day, the greater of (a) the Federal Funds Effective Rate in effect on such day and (b) the Overnight Bank Funding Rate in effect on such day (or for any day that is not a Business Day, for the immediately preceding Business Day); <u>provided</u> that if both such rates are not so published for any day that is a Business Day, the term "NYFRB Rate" means the rate quoted for such day for a federal funds transaction at 11:00 a.m. on such day received by the Administrative Agent from a Federal funds broker of recognized standing selected by it; <u>provided</u>, <u>further</u>, that if any of the aforesaid rates shall be less than zero, such rate shall be deemed to be zero for purposes of this Credit Agreement.

"<u>NYFRB's Website</u>" means the website of the NYFRB at http://www.newyorkfed.org, or any successor source.

"<u>Obligations</u>" means all advances to, and debts, liabilities, obligations (but, with respect to any Guarantor at any time, excluding all Excluded Swap Obligations with respect to such Guarantor at such time), covenants and duties of, any Loan Party arising under any Loan Document or otherwise with respect to any Loan or Letter of Credit, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against any Loan Party or any Restricted Subsidiary thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding.

"<u>Original Letter of Credit Agreements</u>" has the meaning specified in <u>Section</u> <u>2.01(c)</u>.

"<u>Other Connection Taxes</u>" means, with respect to the Administrative Agent, any Lender, L/C Issuer or any other recipient of any payment to be made by or on account of any obligation of the Company hereunder, Taxes imposed as a result of a present or former connection between such Administrative Agent, Lender, L/C Issuer or other recipient and the jurisdiction imposing such Tax (other than connections arising from such Administrative Agent, Lender, L/C Issuer or other recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).

"<u>Other Taxes</u>" means all present or future stamp, court or documentary taxes, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to <u>Section</u> <u>3.06(b)</u>).

"<u>Outstanding Amount</u>" means (a) with respect to Term Loans and Revolving Credit Loans on any date, the aggregate outstanding principal amount thereof after giving effect to any borrowings and prepayments or repayments of Term Loans and Revolving Credit Loans, as the case may be, occurring on such date; and (b) with respect to any L/C Obligations on any date, the amount of such L/C Obligations on such date after giving effect to any L/C Credit Extension occurring on such date and any other changes in the aggregate amount of the L/C Obligations as of such date, including as a result of any reimbursements by the Company of Unreimbursed Amounts.

"<u>Overnight Bank Funding Rate</u>" means, for any day, the rate comprised of both overnight federal funds and overnight eurodollar transactions denominated in Dollars by U.S.–managed banking offices of depository institutions (as such composite rate shall be determined by the NYFRB as set forth on the NYFRB's Website from time to time) and published on the next succeeding Business Day by the NYFRB as an overnight bank funding rate.

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"<u>Parent</u>" means MSG Entertainment Group, LLC, a Delaware limited liability company, or any of its successors.

"<u>Parent Negative Pledge Agreement</u>" means that certain Negative Pledge Agreement, dated as of the Effective Date, made by and among the Parent and the Administrative Agent, as amended, supplemented or otherwise modified from time to time in accordance with the terms of this Credit Agreement.

"<u>Participant</u>" has the meaning specified in <u>Section</u> <u>10.06(d)</u>.

"<u>Participant Register</u>" has the meaning specified in <u>Section</u> <u>10.06(d)</u>.

"<u>Payment</u>" has the meaning specified in <u>Section</u> <u>9.07(c)</u>.

"<u>Payment Notice</u>" has the meaning specified in <u>Section</u> <u>9.07(c)</u>.

"<u>PBGC</u>" means the Pension Benefit Guaranty Corporation or any entity succeeding to any or all of its functions under ERISA.

"<u>Permitted Investments</u>" means (a) Investments in cash and Cash Equivalents, (b) accounts receivable arising in the ordinary course of business, (c) [reserved], (d) any sale, transfer, license, lease or other disposition (including any sale and leaseback transaction), in each case, that is not a Disposition , (e) any Investment constituting a Permitted Parent Payment, (f) any Permitted Restricted Subsidiary Transaction, (g) Investments in existence as of the Effective Date and set forth on <u>Schedule</u> <u>6.15</u>, (h) Investments received in settlement of overdue amounts or amounts owed by a Person that is insolvent or distributions in insolvency proceedings of any such Person or received by foreclosure or enforcement of any Lien in favor of the Company or any Restricted Subsidiary, (i) Investments consisting of advances, deposits or deferred compensation to (i) announcers, broadcasters, on-air talent, promoters, producers or other third parties in connection with the development, booking, production, broadcast, promotion, execution, staging or presentations of shows, events or other entertainment activities or related merchandising, concessions or licensing, or (ii) holders of rights to content or intellectual property in connection with the development, broadcast, distribution or license of content or underlying intellectual property, (j) advances of payroll payments to employees in the ordinary course of business, (k) until the date of delivery to the Administrative Agent of the financial information with respect to the fiscal quarter ending December 31, 2022 required by <u>Section</u> <u>7.01(a)</u> and the related Compliance Certificate, other Investments; <u>provided</u> that the aggregate amount of all such investments does not exceed $25,000,000, (l) Investments consisting of notes, other similar instruments or non-cash consideration received in connection with any disposition not prohibited by <u>Section</u> <u>7.24</u>, and (m) (i) by the Company or any of the Subsidiary Guarantors in the Company or any other Subsidiary Guarantor; and (ii) by any of the Loan Parties in a Person, if as a result of such Investment (A) such Person becomes a Restricted Subsidiary or (B) such Person is merged, consolidated or amalgamated with or into, or transfers or conveys substantially all of its assets to, or is liquidated into, the Company or any of the Subsidiary Guarantors.

"<u>Permitted Liens</u>" means, with respect to any Person: (i) (A) pledges or deposits of cash to secure obligations of such Person under workers' compensation laws, unemployment insurance laws or similar legislation, or (B) good faith deposits in connection with bids, tenders, contracts (other than for the payment of Indebtedness) or Leases to which such Person is a party, or (C) deposits of cash to secure public or statutory obligations of such Person or (D) deposits of cash or U.S. Government bonds to secure surety or appeal bonds to which such Person is a party, or (E) deposits as security for contested taxes or import, customs or similar duties or for the payment of rent or royalties; (ii) Liens imposed by law, such as carriers', warehousemen's and mechanics' Liens, setoff and recoupment rights or other Liens arising out of judgments or awards against such Person which are not more than sixty (60) days past due or with respect

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to which such Person shall then be prosecuting appeal or other proceedings for review (and as to which all foreclosures and other enforcement proceedings shall have been fully bonded or otherwise effectively stayed); (iii) Liens for (x) Taxes (other than property taxes), assessments, charges or other governmental levies not overdue by more than 60 days or which if more than 60 days overdue, (1) the period of grace, if any, related thereto has not expired or which are being contested in good faith by appropriate proceeding (<u>provided</u> that a reserve or other appropriate provision shall have been made therefor as appropriate in accordance with GAAP) or (2) the aggregate principal outstanding amount of the obligations secured thereby does not exceed $5,000,000, and (y) property taxes not yet subject to penalties for non-payment or which are being contested in good faith and by appropriate proceedings (and as to which all foreclosures and other enforcement proceedings shall have been fully bonded or otherwise effectively stayed); (iv) Liens in favor of issuers of performance bonds issued pursuant to the request of and for the account of such Person in the ordinary course of its business; (v) minor survey exceptions, easements or reservations of, or rights of others for rights of way, sewers, electric lines, telegraph and telephone lines and other similar purposes, or zoning or other restrictions as to the use of real properties that are not violated by the current use and occupancy of such real properties or Liens which were not incurred in connection with Indebtedness or other extensions of credit and which do not materially impair the use of such properties in the operation of the business of such Person; (vi) Liens on cash created in the ordinary course of business and customary in the Business consisting of pledges to, deposits with or advances to announcers, broadcasters, on-air talent, promoters, producers or other third parties in connection with the development, booking, production, broadcast, promotion, execution, staging or presentations of shows, events or other entertainment activities or related merchandising, concessions or licensing; (vii) Liens on cash created in the ordinary course of business and customary in the Business consisting of obligations to pay advances, deposits or deferred compensation to the holders of rights to content or intellectual property in connection with the development, broadcast, distribution or license of content or underlying intellectual property; (viii) licenses, sublicenses, leases or subleases granted to others not interfering in any material respect with the business of the Company and its Subsidiaries, (ix) Liens in connection with attachments or judgments (including judgment or appeal bonds) that do not result in an Event of Default under <u>Section</u> <u>8.01(i)</u>, (x) normal and customary contractual rights of setoff upon deposits of cash or Liens relating to bankers liens, rights of setoff or similar rights in favor of banks or other depository institutions not securing Indebtedness, (xi) liens of a collection bank arising under Section 4-210 of the UCC on items in the course of collection, (xii) pledges and deposits and other Liens securing liability for reimbursement or indemnification obligations of (including obligations in respect of bank guarantees for the benefit of) insurance carriers providing property, casualty or liability insurance to the Company or any Subsidiary, (xiii) Liens solely on cash earnest money deposits in connection with any letter of intent or purchase agreement in respect of any Investment permitted hereunder, (xiv) Liens on goods or inventory the purchase, shipment or storage price of which is financed by a bank guarantee or bankers' acceptance issued or created for the account of the Company or any Subsidiary in the ordinary course of business so long as such Liens are extinguished when such goods or inventory are delivered to the Company or such Subsidiary, (xv) Liens securing insurance premiums financing arrangements, so long as such Liens are limited to the applicable unearned insurance premiums, (xvi) encumbrances and restrictions arising under League Rules or (xvii) Liens created in the ordinary course of business and customary in the relevant industry securing obligations of any of the Company and its Restricted Subsidiaries not to exceed, in the aggregate, the greater of (A) $12,000,000 and (B) 10% of Adjusted Operating Income for the most recently completed Measurement Period.

"<u>Permitted Parent Payments</u>" means payments to MSG Entertainment Corp. or the Parent or any other direct or indirect parent company of the Company (a) consisting of the issuance of common equity interests in the Company, (b) under customary intercompany tax sharing arrangements for payment, not to exceed the amount of taxes that would have been paid by the Company had the Company been a taxpayer (determined at the highest combined federal, state and local income tax rate applicable to an individual resident in New York City), (c) under ordinary course equity and other compensation incentive programs to employees and directors of the Company and its Subsidiaries or of any of the Company's current or

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former Affiliates in the ordinary course of business (including cash expenditures related to the vesting of share-based compensation), (d) for ordinary course overhead of MSG Entertainment Corp. or the Parent or such other direct or indirect parent company (including office services charges and the salaries, bonuses and incentive and other compensation payable to officers and employees of MSG Entertainment Corp., the Parent or such other parent company), directors' fees, transaction expenses and other out of pocket fees, costs, expenses and indemnities incurred by MSG Entertainment Corp., the Parent or such other parent company on behalf of or in managing the business of the Company and its Restricted Subsidiaries, or otherwise in connection with MSG Entertainment Corp.'s status as a public company or the status of MSG Entertainment Corp., the Parent or such other parent company as a parent holding company and (e) for cash payments in respect of withholding taxes payable in connection with grants and vesting under equity compensation programs; <u>provided</u>, <u>however</u>, that any payments made pursuant to <u>clauses (c)</u> and <u>(d)</u> shall be (I) used to pay expenses that are attributable to the Business, (II) allocated to the Business in a manner materially consistent with the Company's parent company cost allocation policy as reflected in the Lender Model and (III) deducted as an operating expense in the calculation of Adjusted Operating Income and Consolidated Net Income in a manner consistent with past practice.

"<u>Permitted Refinancing Increase</u>" means, with respect to any Refinancing, an amount equal to unpaid accrued interest and premium (including tender premiums) in respect of such Refinancing, *<u>plus</u>* original issue discount and upfront fees *<u>plus</u>* other fees and expenses reasonably incurred, in connection with such modification, refinancing, refunding, replacement, renewal or extension and by an amount equal to any existing commitments unutilized thereunder.

"<u>Permitted Refinancing Indebtedness</u>" mean any Indebtedness issued in exchange for, or the net proceeds of which are used to, extend, refinance, renew, replace, defease or refund (collectively, to "<u>Refinance</u>"), the Indebtedness being Refinanced (or previous refinancings thereof constituting Permitted Refinancing Indebtedness); <u>provided</u> that (a) the principal amount (or accreted value, if applicable) of such Permitted Refinancing Indebtedness does not exceed the principal amount (or accreted value, if applicable) of the Indebtedness so Refinanced (<u>plus</u> any Permitted Refinancing Increase in respect of such Refinancing), (b) such Permitted Refinancing Indebtedness shall have the same obligors and same guarantees as, and be secured on a *pari passu* basis with, the Indebtedness so Refinanced (<u>provided</u> that the Permitted Refinancing Indebtedness may be subject to lesser guarantees or be unsecured or the Liens securing the Permitted Refinancing Indebtedness may rank junior to the Liens securing the Indebtedness so Refinanced), (c) the maturity date is later than or equal to, and the weighted average life to maturity of such Permitted Refinancing Indebtedness is greater than or equal to, that of the Indebtedness being Refinanced, and (d) if the Indebtedness so Refinanced is subordinated in right of payment to the Obligations, then such Permitted Refinancing Indebtedness, by its terms or by the terms of any agreement or instrument pursuant to which it is outstanding, is made subordinate in right of payment to the Obligations at least to the extent that the Indebtedness so Refinanced is subordinated to the Obligations.

"<u>Permitted Restricted Subsidiary Transaction</u>" means any transaction by which any Restricted Subsidiary shall (i) pay dividends or make any distribution on its capital stock or other equity securities or pay any of its Indebtedness owed to the Company or any other Restricted Subsidiaries, (ii) make any loans or advances to the Company or any other Restricted Subsidiaries or (iii) transfer any of its properties or assets to, merge or consolidate with or into, or liquidate or dissolve into the Company or any other Restricted Subsidiaries; <u>provided</u> that if the Restricted Subsidiary making such payment, loan, advance or transfer is a Guarantor, then the Restricted Subsidiary receiving the same shall be the Company or a Guarantor as well.

"<u>Person</u>" means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

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"<u>Plan</u>" means, at any time, an employee pension benefit plan (other than a Multiemployer Plan) which is covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Code and is maintained by the Company or an ERISA Affiliate.

"<u>Plan Asset Regulations</u>" means 29 CFR § 2510.3-101 et seq., as modified by Section 3(42) of ERISA, as amended from time to time.

"<u>Pledged Equity Interests</u>" has the meaning specified in the Security Agreement.

"<u>Prime Rate</u>" means the rate of interest last quoted by The Wall Street Journal as the "Prime Rate" in the U.S. or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the Federal Reserve Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the "bank prime loan" rate or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined by the Administrative Agent) or any similar release by the Federal Reserve Board (as determined by the Administrative Agent). Each change in the Prime Rate shall be effective from and including the date such change is publicly announced or quoted as being effective.

"<u>Proceeding</u>" means any claim, litigation, investigation, action, suit, arbitration or administrative, judicial or regulatory action or proceeding in any jurisdiction.

"<u>Prohibited Transaction</u>" means a transaction that is prohibited under Section 4975 of the Code or Section 406 of ERISA and not exempt under Section 4975 of the Code or Section 408 of ERISA.

"<u>PTE</u>" means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

"<u>QFC</u>" has the meaning given to the term "qualified financial contract" in, and shall be interpreted in accordance with, 12 U.S.C. § 5390(c)(8)(D).

"<u>QFC Credit Support</u>" has the meaning specified in <u>Section</u> <u>10.23</u>.

"<u>Qualified ECP Guarantor</u>" means, in respect of any Swap Obligation, each Loan Party that has total assets exceeding $10,000,000 at the time the relevant Guarantee or grant of the relevant security interest becomes effective with respect to such Swap Obligation or such other person as constitutes an "eligible contract participant" under the Commodity Exchange Act or any regulations promulgated thereunder and can cause another person to qualify as an "eligible contract participant" at such time by entering into a keepwell under Section la(l8)(A)(v)(II) of the Commodity Exchange Act.

"<u>Qualified Securitization Financing</u>" means any Securitization Financing of any special purpose securitization vehicle (or similar entity) that meets the following conditions: (a) such Qualified Securitization Financing (including financing terms, covenants, termination events and other provisions) is in the aggregate economically fair and reasonable to the Company and such special purpose securitization vehicle, (b) all sales, transfers and/or contributions of Securitization Assets and related assets to the special purpose securitization vehicle are made at fair market value and (c) the financing terms, covenants, termination events and other provisions thereof shall be market terms.

"<u>Quarter</u>" means a fiscal quarterly period of the Company.

"<u>Rangers Arena License Agreement</u>" means the Arena License Agreement, dated as of April 15, 2020, between MSG Arena, LLC and New York Rangers, LLC, as amended, restated, modified, renewed or replaced from time to time in a manner not prohibited by this Agreement.

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"<u>Real Property</u>" means all real property and all rights benefiting such real property, specifically including (without intending to limit the generality of the foregoing) the following, whether now or hereafter existing, except to the extent that any of the following or the foregoing constitutes personal property relating primarily to, pertaining primarily to, used primarily in, or necessary for, the Business: (1) all buildings, structures and other improvements erected or located on such real property (collectively, the "<u>Real Property Improvements</u>"); (2) all easements, rights-of-way or use, air rights and development rights, and other estates, right, title, interest, privileges and appurtenances of any nature whatsoever, in any way belonging, relating or pertaining to or benefiting such real property or the Improvements (collectively, the "<u>Real Property Other Interests</u>"); (3) fixtures located in or upon such real property, Real Property Improvements or Real Property Other Interests; (4) all leases, subleases, licenses, concessions or other agreements with respect to all or any portion of such real property, Real Property Improvements or Real Property Other Interests, and all other rights, powers, privileges, options and benefits thereunder; (5) all agreements, contracts, certificates, permits, approvals, guaranties, supporting obligations, warranties, instruments, plans, specifications and other records and documents with respect to all or any part of such real property, Real Property Improvements or Real Property Other Interests, and all rights, powers, privileges, options and benefits thereunder; (6) all rights to appear in and defend, and to commence, any action or proceeding with respect to all or any portion of such real property, Real Property Improvements or Real Property Other Interests; (7) all right, title and interest in or to (i) insurance proceeds, (ii) all awards with by reason of any condemnation, eminent domain or other taking (or any disposition made in lieu thereof) of all or any portion of such real property, Real Property Improvements or Real Property Other Interests (in the case of such Real Property Other Interests, excluding any personal property not constituting (x) licenses or (y) rights of ingress or egress), or (iii) any causes of action, awards, damages, claims, payments, proceeds and other compensation, rights, benefits, and advantages on account of any other event with respect to all or any portion of such real property, Real Property Improvements or Real Property Other Interests (in the case of such Real Property Other Interests, excluding any personal property not constituting (x) licenses or (y) rights of ingress or egress); and (8) all refunds, rebates, reimbursements, reserves, deferred payments, deposits, cost savings, credits, waivers and payments, whether in cash or in kind, due or payable by any governmental or quasi-governmental entity or any insurance or utility company relating to or arising out of such real property, Real Property Improvements or Real Property Other Interests, or in connection with any taxes, assessments, charges or levies with respect to such real property, Real Property Improvements or Real Property Other Interests.

"<u>Reference Time</u>" with respect to any setting of the then-current Benchmark means (1) if such Benchmark is the Term SOFR, 5:00 a.m. (Chicago time) on the day that is two U.S. Government Securities Business Days preceding the date of such setting, (2) if such Benchmark is the Daily Simple SOFR, the four Business Days prior to such setting or (c) if such Benchmark is none of the Term SOFR or the Daily Simple SOFR, the time determined by the Administrative Agent in its reasonable discretion.

"<u>Refinance</u>" has the meaning specified in the definition of "Permitted Refinancing Indebtedness".

"<u>Refinancing Amendment</u>" shall have the meaning specified in <u>Section</u> <u>2.14(c)</u>.

"<u>Refinancing Equivalent Debt</u>" shall have the meaning specified in <u>Section</u> <u>2.14(a)</u>.

"<u>Refinancing Facility</u>" means an Refinancing Term Facility or an Refinancing Revolving Credit Facility, as the context may require.

"<u>Refinancing Revolving Credit Facility</u>" shall have the meaning specified in <u>Section</u> <u>2.14(a)</u>.

"<u>Refinancing Revolving Credit Loan</u>" means any Revolving Credit Loan made pursuant to a Refinancing Revolving Credit Facility.

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"<u>Refinancing Term Facility</u>" shall have the meaning specified in <u>Section</u> <u>2.14(a)</u>.

"<u>Refinancing Term Loan</u>" means any Term Loan made pursuant to a Refinancing Term Facility.

"<u>Register</u>" has the meaning given to specified in <u>Section</u> <u>10.06(c)</u>.

"<u>Registered Public Accounting Firm</u>" has the meaning specified by the Securities Laws and shall be independent of the Company as prescribed by the Securities Laws.

"<u>Regulation U</u>" means Regulation U of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.

"<u>Related Parties</u>" means, with respect to any Person, such Person's Affiliates and the partners, directors, officers, employees, agents and advisors of such Person and of such Person's Affiliates.

"<u>Relevant Governmental Body</u>" means the Federal Reserve Board and/or the NYFRB, or a committee officially endorsed or convened by the Federal Reserve Board and/or the NYFRB or, in each case, any successor thereto.

"<u>Relevant Rate</u>" means (a) with respect to any Term Benchmark Borrowing, the Adjusted Term SOFR, or (b) with respect to any RFR Borrowing, the Adjusted Daily Simple SOFR, as applicable.

"<u>Removal Effective Date</u>" has the meaning specified in <u>Section</u> <u>9.06(b)</u>.

"<u>Replacement Lender</u>" has the meaning specified in <u>Section</u> <u>2.17(c)</u>.

"<u>Reportable Event</u>" means any of the events set forth in Section 4043(c) of ERISA (other than a Reportable Event as to which the provision of 30 days' notice to the PBGC is waived).

"<u>Request for Credit Extension</u>" means (a) with respect to a Borrowing, conversion or continuation of Term Loans or Revolving Credit Loans, a Committed Loan Notice, and (b) with respect to an L/C Credit Extension, a Letter of Credit Application.

"<u>Required Lenders</u>" means, as of any date of determination, Lenders holding more than 50% of the sum of the (a) Total Outstandings (with the aggregate amount of each Lender's risk participation, funded participation in L/C Obligations being deemed "held" by such Lender for purposes of this definition) and (b) aggregate unused Commitments; <u>provided</u> that (i) at any time there are at least two unaffiliated Lenders, Required Lenders shall include at least two unaffiliated Lenders and (ii) the unused Commitment of, and the portion of the Total Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders.

"<u>Required Revolver Lenders</u>" means, as of any date of determination, Lenders holding more than 50% of the sum of (a) the Total Revolving Credit Outstandings (with the aggregate amount of each Revolving Credit Lender's risk participation and funded participation in L/C Obligations being deemed "held" by such Revolving Credit Lender for purposes of this definition), and (b) the aggregate unused Revolving Credit Commitments; <u>provided</u> that the unused Revolving Credit Commitment of, and the portion of the Total Revolving Credit Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Revolver Lenders.

"<u>Resolution Authority</u>" means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

"<u>Response Date</u>" has the meaning specified in <u>Section</u> <u>2.17(a)</u>.

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"<u>Responsible Officer</u>" means the chief executive officer, president, senior vice president, senior vice president (finance), vice president, chief financial officer, treasurer, manager of treasury activities or assistant treasurer or other similar officer or Person performing similar functions of a Loan Party and, as to any document delivered on the Effective Date, any secretary or assistant secretary of a Loan Party. Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party. Unless otherwise specified, all references herein to a "Responsible Officer" shall refer to a Responsible Officer of the Company.

"<u>Restricted Debt Payments</u>" has the meaning specified in <u>Section</u> <u>7.28(a)</u>.

"<u>Restricted Payments</u>" means direct or indirect distributions, dividends or other payments by the Company or any Restricted Subsidiary on account of (including sinking fund or other payments on account of the redemption, retirement, purchase or acquisition of) any general or limited partnership or joint venture interest in, or any capital stock of, the Company or such Restricted Subsidiary, as the case may be (whether made in cash, property or other obligations), other than any such distributions, dividends and other payments made by a Restricted Subsidiary to the Company or a Guarantor in respect of such interest in or stock of the former held by the latter.

"<u>Restricted Subsidiaries</u>" means, collectively, the Persons set forth on <u>Schedule</u> <u>6.02(i)</u> and any New Subsidiary.

"<u>Revolving Credit Borrowing</u>" means a borrowing consisting of simultaneous Revolving Credit Loans of the same Type and, in the case of Term Benchmark Loans, having the same Interest Period, made by each of the Revolving Credit Lenders pursuant to <u>Section</u> <u>2.01(b)</u>, including any Incremental Revolving Credit Borrowing.

"<u>Revolving Credit Commitment</u>" means, as to each Revolving Credit Lender, its obligation to (a) make Revolving Credit Loans to the Company pursuant to <u>Section</u> <u>2.01(b)</u>, and (b) purchase participations in L/C Obligations, in an aggregate principal amount at any one time outstanding not to exceed the amount set forth opposite such Lender's name on <u>Schedule</u> <u>2.01</u> under the caption "Revolving Credit Commitment" or opposite such caption in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Credit Agreement, including any Incremental Revolving Credit Commitment.

"<u>Revolving Credit Exposure</u>" means, as to any Revolving Credit Lender at any time, the aggregate principal amount at such time of its outstanding Revolving Credit Loans and such Revolving Credit Lender's participation in L/C Obligations at such time.

"<u>Revolving Credit Facility</u>" means the Initial Revolving Credit Facility, any Incremental Revolving Credit Facility or, collectively, the Initial Revolving Credit Facility and the Incremental Revolving Credit Facilities, as the context may require.

"<u>Revolving Credit Lender</u>" means, at any time, any Lender that has a Revolving Credit Commitment or holds Revolving Credit Loans at such time, including any Incremental Revolving Credit Lender.

"<u>Revolving Credit Loan</u>" means an extension of credit made by any Revolving Credit Lender under any Revolving Credit Facility and shall include any Incremental Revolving Credit Loan.

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"<u>Revolving Credit Note</u>" means a promissory note made by the Company in favor of a Revolving Credit Lender evidencing Revolving Credit Loans made by such Revolving Credit Lender under the Initial Revolving Credit Facility, substantially in the form of <u>Exhibit</u> <u>B</u><u>-1</u>.

"<u>RFR</u>" when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, bears interest at a rate based on the Adjusted Daily Simple SOFR.

"<u>S&P</u>" means Standard & Poor's Ratings Services, a Standard & Poor's Financial Services LLC business.

"<u>Sanctioned Country</u>" means, at any time, a country or territory which is itself the subject or target of any Sanctions (at the time of this Credit Agreement, the Crimea region of Ukraine, Cuba, Iran, North Korea, Syria, the so-called Donetsk People's Republic and the so-called Luhansk People's Republic).

"<u>Sanctioned Person</u>" means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State, or by the United Nations Security Council, the European Union or any EU member state, (b) any Person organized under the laws of or resident in a Sanctioned Country, (c) any Person 50% or more owned or controlled by any such Person, or (d) any Person otherwise the target of any Sanctions.

"<u>Sanctions</u>" means all economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State, the United Nations Security Council, the European Union, Her Majesty's Treasury of the United Kingdom or other relevant sanctions authority.

"<u>Sarbanes</u><u>-Oxley</u>" means the Sarbanes-Oxley Act of 2002, as amended.

"<u>SEC</u>" means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.

"<u>Secured Cash Management Agreement</u>" means any Cash Management Agreement that is entered into by and between any Loan Party and any Cash Management Bank and which provides by its terms that it is intended to be secured as an Obligation hereunder.

"<u>Secured Hedge Agreement</u>" means any Swap Contract permitted under <u>Article</u> <u>VII</u> that is entered into by and between the Company or any Restricted Subsidiary, on the one hand, and any Hedge Bank, on the other hand, and which provides by its terms that (x) it is intended to be secured as an Obligation hereunder and (y) the counterparty to such agreement has expressly agreed to be bound by the provisions of <u>Article</u> <u>IX</u> as if it were a Lender.

"<u>Secured Parties</u>" means, collectively, the Administrative Agent, the Lenders, the L/C Issuers, the Hedge Banks, the Cash Management Banks, each co-agent or sub-agent appointed by the Administrative Agent from time to time pursuant to <u>Section</u> <u>9.05</u>, and the other Persons the Obligations owing to which are or are stated to be secured by the Collateral under the terms of the Collateral Documents.

"<u>Securities Laws</u>" means the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, Sarbanes-Oxley, and the applicable accounting and auditing principles, rules, standards and practices promulgated, approved or incorporated by the SEC or the Public Company Accounting Oversight Board.

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"<u>Securitization Assets</u>" means the accounts receivable, royalty or other revenue streams, other rights to payment subject to a Qualified Securitization Financing and the proceeds thereof.

"<u>Securitization Financing</u>" means any transaction or series of transactions that may be entered into by the Company or any of its Subsidiaries pursuant to which the Company or any of its Subsidiaries may sell, convey or otherwise transfer to (a) a special purpose securitization vehicle (or similar entity) (in the case of a transfer by the Company or any of its Subsidiaries) or (b) any other Person (in the case of a transfer by a special purpose securitization vehicle (or similar entity)), or may grant a security interest in, any Securitization Assets of the Company or any of its Subsidiaries, and any assets related thereto, including all collateral securing such Securitization Assets, all contracts and all guarantees or other obligations in respect of such Securitization Assets, proceeds of such Securitization Assets and other assets that are customarily transferred or in respect of which security interests are customarily granted in connection with asset securitization transactions involving Securitization Assets.

"<u>Security Agreement</u>" means that certain Security Agreement, dated as of the Effective Date, made by and among the Company, the other Loan Parties and the Administrative Agent, as amended, supplemented or otherwise modified from time to time in accordance with the terms of this Credit Agreement.

"<u>Security Agreement Supplement</u>" has the meaning specified in Section 22(b) of the Security Agreement.

"<u>Senior Secured Leverage Ratio</u>" means at any date of determination, the ratio of Consolidated Senior Secured Indebtedness at such date to Adjusted Operating Income for the most recently completed Measurement Period. Notwithstanding the foregoing, for purposes of calculating the Senior Secured Leverage Ratio, there shall be excluded from Indebtedness, to the extent otherwise included as Indebtedness, (A) any deferred or contingent obligation of the Company to pay the consideration for an Investment not prohibited by <u>Section</u> <u>7.17</u>; (B) any deferred purchase price in connection with any acquisition not prohibited by <u>Section</u> <u>7.17</u>; (C) all obligations under any Swap Contract; and (D) obligations in respect of letters of credit except unreimbursed obligations in respect of drawn letters of credit; in each of <u>clauses</u> <u>(A)</u> and <u>(B)</u> and above, such exclusion to apply only to the extent that such obligation can be satisfied with the delivery of common stock of MSG Entertainment Corp. or other common equity interests of MSG Entertainment Corp. (and the Company hereby covenants and agrees that such obligation shall be satisfied solely by the delivery of such common stock or other common equity interests).

"<u>SOFR</u>" means a rate equal to the secured overnight financing rate as administered by the SOFR Administrator.

"<u>SOFR Administrator</u>" means the NYFRB (or a successor administrator of the secured overnight financing rate).

"<u>SOFR Administrator's Website</u>" means the NYFRB's Website, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.

"<u>SOFR Rate Day</u>" has the meaning specified in the definition of "Daily Simple SOFR".

"<u>Solvent</u>" and "<u>Solvency</u>" mean, with respect to any Person on any date of determination, that on such date (a) the fair value of the property of such Person is greater than the total amount of liabilities, including contingent liabilities, of such Person, (b) the present fair salable value of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it will,

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incur debts or liabilities beyond such Person's ability to pay such debts and liabilities as they mature, and (d) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which such Person's property would constitute an unreasonably small capital. The amount of contingent liabilities at any time shall be computed as the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

"<u>SPC</u>" has the meaning specified in <u>Section</u> <u>10.06(h)</u>.

"<u>Specified Event of Default</u>" means any Event of Default under <u>Section</u> <u>8.01(b)</u>, <u>(g)</u> or <u>(h)</u>.

"<u>Specified Investments</u>" means the Company's Equity Interests in DraftKings Inc. and Townsquare Media, Inc (or any successor entities in respect thereof).

"<u>Specified Public Filings</u>" means (i) the annual report on Form 10-K of Madison Square Garden Entertainment Corp. for the fiscal year ended June 30, 2021, (ii) the quarterly report on Form 10-Q of Madison Square Garden Entertainment Corp. for the fiscal quarter ended March 31, 2022 and (iii) the proxy statement on Schedule 14A of Madison Square Garden Entertainment Corp. filed on October 26, 2021.

"<u>Specified Transaction</u>" means any acquisition or disposition of an asset or business by the Company or any Restricted Subsidiary, in each case only to the extent that such acquisition or disposition has the effect of increasing or decreasing the Company's Adjusted Operating Income by at least $500,000 when such acquisition or disposition is given full pro forma effect for the most recently completed Measurement Period, assuming that such acquisition or disposition had occurred on the first day of such Measurement Period.

"<u>Spot Rate</u>" has the meaning specified in <u>Section</u> <u>1.07</u>.

"<u>Standard Securitization Undertakings</u>" means representations, warranties, covenants and indemnities entered into by the Company or any Subsidiary of the Company that are customary in a Securitization Financing.

"<u>Standby Letter of Credit</u>" means any Letter of Credit issued hereunder, other than a Trade Letter of Credit.

"<u>Subordinated Indebtedness</u>" means any Indebtedness for borrowed money incurred by a Loan Party that is (i) secured on a junior priority basis to the Obligations, (ii) unsecured or (iii) expressly subordinated in right of payment to the Obligations of such Loan Party under the Loan Documents.

"<u>Subsidiary</u>" of a Person means a corporation, partnership, joint venture, limited liability company or other business entity of which a majority of the shares or securities or other interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially owned, or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise specified, all references herein to a "<u>Subsidiary</u>" or to "<u>Subsidiaries</u>" shall refer to a Subsidiary or Subsidiaries of the Company.

"<u>Subsidiary Guarantors</u>" means the Persons set forth on <u>Schedule</u> <u>1.01(d)</u> and each new Restricted Subsidiary required to become a Guarantor pursuant to <u>Section</u> <u>7.10</u>.

"<u>Supplemental Collateral Documents</u>" means Security Agreement Supplements, Intellectual Property Security Agreement Supplements and other security and pledge agreements securing payment of the Obligations of a newly-formed or newly-acquired Guarantor under the Loan Documents and constituting Liens as required pursuant to the terms of <u>Section</u> <u>7.10</u>, in each case covering the types of property constituting Collateral, subject to exclusions for Excluded Assets.

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"<u>Supported QFC</u>" has the meaning specified in <u>Section</u> <u>10.23</u>.

"<u>Survey</u>" has the meaning specified in <u>Section</u> <u>7.13(b)(i)(C)</u>.

"<u>Swap Contract</u>" means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a "<u>Master Agreement</u>"), including any such obligations or liabilities under any Master Agreement.

"<u>Swap Obligation</u>" means, with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a "swap" within the meaning of section 1a(47) of the Commodity Exchange Act.

"<u>Swap Termination Value</u>" means in respect of any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in <u>clause (a)</u>, the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts (which may include a Lender or any Affiliate of a Lender).

"<u>SWIFT</u>" means the Society for Worldwide Interbank Financial Telecommunication.

"<u>Syndication Agent</u>" means JPMorgan, acting in its capacity as syndication agent.

"<u>Taxes</u>" means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees, or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"<u>Term Benchmark</u>" when used in reference to any Loan or Borrowing, refers to whether such Loan, or each Loan comprising such Borrowing, bears interest at a rate determined by reference to the Adjusted Term SOFR.

"<u>Term Borrowing</u>" means a borrowing consisting of simultaneous Term Loans of the same Type and, in the case of Term Benchmark Loans, having the same Interest Period made by each of the Term Lenders pursuant to <u>Section</u> <u>2.01(a)</u>, including any Incremental Term Borrowing.

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"<u>Term Commitment</u>" means, as to each Term Lender, its obligation to make Term Loans to the Company pursuant to <u>Section</u> <u>2.01(a)</u>, as such amount may be adjusted from time to time in accordance with this Credit Agreement, including any Incremental Term Commitment.

"<u>Term Facility</u>" means the Initial Term Facility, any Incremental Term Facility or, collectively, the Initial Term Facility and the Incremental Term Facilities, as the context may require.

"<u>Term Lender</u>" means, (a) at any time on or prior to the Effective Date, any Lender that has a Term Commitment at such time and (b) at any time after the Effective Date, any Lender that holds Term Loans at such time.

"<u>Term Loan</u>" means an advance made by any Term Lender under any Term Facility and shall include any Incremental Term Loan.

"<u>Term Loan Note</u>" means a promissory note made by the Company in favor of a Term Lender evidencing Term Loans made by such Term Lender under the Initial Term Facility, substantially in the form of <u>Exhibit</u> <u>B</u><u>-3</u>.

"<u>Term SOFR</u>" means, with respect to any Term Benchmark Borrowing and for any tenor comparable to the applicable Interest Period, the Term SOFR Reference Rate at approximately 5:00 a.m., Chicago time, two U.S. Government Securities Business Days prior to the commencement of such tenor comparable to the applicable Interest Period, as such rate is published by the CME Term SOFR Administrator.

"<u>Term SOFR Determination Day</u>" has the meaning specified under the definition of Term SOFR Reference Rate.

"<u>Term SOFR Reference Rate</u>" means, for any day and time (such day, the "<u>Term SOFR Determination Day</u>"), with respect to any Term Benchmark Borrowing and for any tenor comparable to the applicable Interest Period, the forward-looking term rate based on SOFR as such rate is published by the CME Term SOFR Administrator. If by 5:00 p.m. (New York City time) on such Term SOFR Determination Day, the "Term SOFR Reference Rate" for the applicable tenor has not been published by the CME Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR has not occurred, then, so long as such day is otherwise a U.S. Government Securities Business Day, the Term SOFR Reference Rate for such Term SOFR Determination Day will be the Term SOFR Reference Rate as published in respect of the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate was published by the CME Term SOFR Administrator, so long as such first preceding U.S. Government Securities Business Day is not more than five U.S. Government Securities Business Days prior to such Term SOFR Determination Day.

"<u>Termination Event</u>" means (i) a Reportable Event, (ii) the termination of a Plan, or the filing of a notice of intent to terminate a Plan, or the treatment of a Plan amendment as a termination under Section 4041(c) of ERISA, (iii) the institution of proceedings to terminate a Plan under Section 4042 of ERISA or (iv) the appointment of a trustee to administer any Plan under Section 4042 of ERISA.

"<u>Total Leverage Ratio</u>" means, at any date of determination, the ratio of Consolidated Indebtedness at such date to Adjusted Operating Income for the most recently completed Measurement Period. Notwithstanding the foregoing, for purposes of calculating the Total Leverage Ratio, there shall be excluded from Indebtedness, to the extent otherwise included as Indebtedness, (A) any deferred or contingent obligation of the Company to pay the consideration for an Investment not prohibited by <u>Section</u> <u>7.17</u>; (B) any deferred purchase price in connection with any acquisition not prohibited by <u>Section</u> <u>7.17</u> and (C) all obligations under any Swap Contract; in each of <u>clauses</u> <u>(A)</u> and <u>(B)</u> above, such exclusion to apply

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only to the extent that such obligation can be satisfied with the delivery of common stock of MSG Entertainment Corp. or other common equity interests of MSG Entertainment Corp. (and the Company hereby covenants and agrees that such obligation shall be satisfied solely by the delivery of such common stock or other common equity interests).

"<u>Total Outstandings</u>" means the aggregate Outstanding Amount of all Loans and all L/C Obligations.

"<u>Total Revolving Credit Outstandings</u>" means the aggregate Outstanding Amount of all Revolving Credit Loans and L/C Obligations.

"<u>Trade Letter of Credit</u>" means any Letter of Credit issued hereunder for the benefit of a supplier of inventory to the Company or any Subsidiary to effect payment for such inventory.

"<u>Transactions</u>" means, collectively, (a) the entering into by the Loan Parties and their applicable Subsidiaries of the Loan Documents to which they are or are intended to be a party, (b) the borrowing of Loans, the use of the proceeds thereof and the issuance of Letters of Credit hereunder, (c) the consummation of the Existing Credit Agreement Refinancing and (d) the payment of all fees and expenses incurred in connection with the foregoing.

"<u>Type</u>", when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Adjusted Term SOFR, the Adjusted Daily Simple SOFR or the Alternate Base Rate.

"<u>UCP</u>" means the Uniform Customs and Practice for Documentary Credits, 2007 revision, International Chamber of Commerce Publication No. 600, as the same may be amended and in effect from time to time.

"<u>UK Financial Institution</u>" means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended form time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any Person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

"<u>UK Resolution Authority</u>" means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

"<u>Unadjusted Benchmark Replacement</u>" means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

"<u>United States Person</u>" means a corporation, partnership or other entity created, organized or incorporated under the laws of the United States of America or a State thereof (including the District of Columbia).

"<u>Unreimbursed Amount</u>" has the meaning specified in <u>Section</u> <u>2.03(c)(i)</u>.

"<u>U.S. Government Securities Business Day</u>" means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

"<u>U.S. Special Resolution Regimes</u>" has the meaning specified in <u>Section</u> <u>10.23</u>.

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"<u>USA PATRIOT Act</u>" has the meaning specified in <u>Section</u> <u>10.16</u>.

"<u>Write-Down and Conversion Powers</u>" means (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that Person or any other Person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

Section 1.02 <u>Other Interpretive Provisions</u>. With reference to this Credit Agreement and each other Loan Document, unless otherwise specified herein or in such other Loan Document:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "<u>include</u>," "<u>includes</u>" and "<u>including</u>" shall be deemed to be followed by the phrase "without limitation." The word "<u>will</u>" shall be construed to have the same meaning and effect as the word "<u>shall</u>." Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document (including any organization document) shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or in any other Loan Document), (ii) any reference herein to any Person shall be construed to include such Person's successors and assigns, (iii) the words "<u>herein</u>," "<u>hereof</u>" and "<u>hereunder</u>," and words of similar import when used in any Loan Document, shall be construed to refer to such Loan Document in its entirety and not to any particular provision thereof, (iv) all references in a Loan Document to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, the Loan Document in which such references appear, (v) any reference to any law shall include all statutory and regulatory provisions consolidating, amending, replacing or interpreting such law and any reference to any law or regulation shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (vi) the words "<u>asset</u>" and "<u>property</u>" (except when used as accounting terms, in which case GAAP shall apply) shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the computation of periods of time from a specified date to a later specified date, the word "<u>from</u>" means "<u>from and including</u>;" the words "<u>to</u>" and "<u>until</u>" each mean "<u>to but excluding</u>;" and the word "<u>through</u>" means "<u>to and including</u>."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the interpretation of this Credit Agreement or any other Loan Document.

Section 1.03 <u>Accounting Terms</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Generally</u>. All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this Credit Agreement shall be prepared in conformity with, GAAP applied on a consistent basis, as in effect from time to time, applied in a manner consistent with that used in preparing the audited financial statements, except as otherwise specifically prescribed herein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Changes in GAAP</u>. If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either the Company or in the case of any financial ratio, the Administrative Agent or the Required Lenders, shall so request, the Administrative Agent, the applicable Lenders and the Company shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP (subject to the approval of the Required Lenders, as applicable); <u>provided</u> that, in the event of a request for an amendment, until so amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (ii) the Company shall provide to the Administrative Agent and the Lenders financial statements and other documents required under this Credit Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Capitalized Lease Obligations</u>. Notwithstanding anything to the contrary contained in <u>Section</u> <u>1.03(a)</u>, whether a lease shall be treated as operating lease and not a capital lease or finance lease will be determined in accordance with the principles set forth in the definition of Capitalized Lease Obligations.

Section 1.04 <u>Rounding</u>. Any financial ratios required to be maintained by the Company pursuant to this Credit Agreement shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest number).

Section 1.05 <u>Times of Day</u>. Unless otherwise specified, all references herein to times of day shall be references to Eastern time (daylight or standard, as applicable).

Section 1.06 <u>Certain Calculations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything to the contrary herein, with respect to any amounts incurred or transactions entered into (or consummated) in reliance on a provision of this Credit Agreement that does not require compliance with a financial ratio or test (including, without limitation, the Financial Covenants, any Total Leverage Ratio test, any Senior Secured Leverage Ratio test, and/or any Debt Service Coverage Ratio test) (any such amounts, the "<u>Fixed Amounts</u>") substantially concurrently with any amounts incurred or transactions entered into (or consummated) in reliance on a provision of this Credit Agreement that does not require compliance with a financial ratio or test (including, without limitation, the Financial Covenants, any Total Leverage Ratio test, any Senior Secured Leverage Ratio test, and/or any Debt Service Coverage Ratio test) (any such amounts, the "<u>Incurrence-Based Amounts</u>"), it is understood and agreed that the Fixed Amounts shall be disregarded in the calculation of the financial ratio or test applicable to the Incurrence-Based Amounts. The Company may elect that amounts incurred or transactions entered into (or consummated) be incurred or entered into (or consummated) in reliance on one or more of any Incurrence-Based Amount or any Fixed Amount in its sole discretion; <u>provided</u>, that unless the Company elects otherwise, each such amount or transaction will be deemed incurred, entered into or consummated first under any Incurrence-Based Amount to the maximum extent permitted thereunder. In addition, any amounts incurred or transactions entered into (or consummated) in reliance on Fixed Amounts shall be automatically and immediately reclassified at any time, unless the Company otherwise elects from time to time, as incurred under the applicable Incurrence-Based Amounts if the Company subsequently meets the applicable ratio for such Incurrence-Based Amounts on a pro forma basis. The amount of any Investment at any time shall be the amount of cash and the fair market value of other property actually invested (measured at the time made), without adjustment for subsequent changes in the value of such Investment, net of any return, whether a return of capital, interest, dividend or otherwise, with respect to such Investment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent any provision of this Credit Agreement requires compliance with a financial ratio or test (including, without limitation, the Financial Covenants, any Total Leverage Ratio test, any Senior Secured Leverage Ratio test, and/or any Debt Service Coverage Ratio test), any calculation of a financial ratio or test that results in a negative number or zero shall be deemed to not be in compliance with such financial ratio or test.

Section 1.07 <u>Currency</u> <u>Equivalents</u><u> </u><u>Generally</u>. Any amount specified in this Credit Agreement (other than in <u>Articles</u> <u>II</u>, <u>IV</u> and <u>IX</u>) or any of the other Loan Documents to be in Dollars shall also include the equivalent of such amount in any currency other than Dollars, such equivalent amount thereof in the applicable currency to be determined by the Administrative Agent at such time on the basis of the Spot Rate (as defined below) for the purchase of such currency with Dollars. For purposes of this <u>Section</u> <u>1.07</u>, the "<u>Spot Rate</u>" for a currency means the rate determined by the Administrative Agent to be the rate quoted by the Person acting in such capacity as the spot rate for the purchase by such Person of such currency with another currency through its principal foreign exchange trading office at approximately 11:00 a.m. on the date two Business Days prior to the date of such determination; <u>provided</u> that the Administrative Agent may obtain such spot rate from another financial institution designated by the Administrative Agent if the Person acting in such capacity does not have as of the date of determination a spot buying rate for any such currency.

Section 1.08 <u>Interest Rates;</u> <u>Benchmark</u> <u>Notification</u>. The interest rate on a Loan denominated in Dollars may be derived from an interest rate benchmark that may be discontinued or is, or may in the future become, the subject of regulatory reform. Upon the occurrence of a Benchmark Transition Event, <u>Section</u> <u>3.03(b)</u> provides a mechanism for determining an alternative rate of interest. The Administrative Agent does not warrant or accept any responsibility for, and shall not have any liability with respect to, the administration, submission, performance or any other matter related to any interest rate used in this Credit Agreement, or with respect to any alternative or successor rate thereto or replacement rate thereof, including without limitation, whether the composition or characteristics of any such alternative, successor or replacement reference rate will be similar to, or produce the same value or economic equivalence of, the existing interest rate being replaced or have the same volume or liquidity as did any existing interest rate prior to its discontinuance or unavailability. The Administrative Agent and its Affiliates and/or other related entities may engage in transactions that affect the calculation of any interest rate used in this Credit Agreement or any alternative, successor or alternative rate (including any Benchmark Replacement) and/or any relevant adjustments thereto, in each case, in a manner adverse to the Company. The Administrative Agent may select information sources or services in its reasonable discretion to ascertain any interest rate used in this Credit Agreement, any component thereof or rates referenced in the definition thereof, in each case pursuant to the terms of this Credit Agreement, and shall have no liability to the Company, any Lender or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such information source or service.

Section 1.09 <u>Divisions</u>. For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction's laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized and acquired on the first date of its existence by the holders of its Equity Interests at such time.

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Section 1.10 <u>Limited Condition Transactions</u>. In connection with any action being taken solely in connection with a Limited Condition Transaction (excluding, for the avoidance of doubt, any Borrowing of Initial Revolving Credit Loans), for purposes of (i) determining compliance with any provision of the Loan Documents which requires the calculation of the Total Leverage Ratio, the Senior Secured Leverage Ratio or the Debt Service Coverage Ratio; (ii) determining (A) the accuracy of representations and warranties in <u>Article VI</u> (other than customary "specified representations" and those representations of the seller or target company (as applicable) included in the acquisition agreement for the relevant Limited Condition Transaction that are material to the interests of the Lenders and only to the extent that the relevant acquirer has the right to terminate its obligations under such acquisition agreement as a result of such representations (which representations, notwithstanding anything herein to the contrary, shall be required to be accurate on the basis set forth in the acquisition agreement as of the date of the consummation of any Limited Condition Transaction)), and/or (B) whether a Default or Event of Default (other than a Specified Event of Default (the absence of which, notwithstanding anything herein to the contrary, shall be required on the date of the consummation of such Limited Condition Transaction)) has occurred and is continuing or would result therefrom; or (iii) testing availability under baskets set forth in the Loan Documents; in each case, at the option of the Company (the Company's election to exercise such option in connection with any Limited Condition Transaction, an "<u>LCT Election</u>"), the date of determination of whether any such action is permitted under the Loan Documents, shall be deemed to be the date the definitive agreement for such Limited Condition Transaction is entered into or the date notice of prepayment or redemption is given (the "<u>LCT Test Date</u>"), and if, on a pro forma basis after giving effect to the Limited Condition Transaction and the other transactions to be entered into in connection therewith as if they had occurred at the beginning of the most recent Measurement Period ending prior to the LCT Test Date, the Company could have taken such action on the relevant LCT Test Date in compliance with such ratio or basket, such ratio or basket shall be deemed to have been complied with. For the avoidance of doubt, if the Company has made an LCT Election for any Limited Condition Transaction and any of the ratios or baskets for which compliance was determined or tested as of the LCT Test Date are exceeded or otherwise non-compliant as a result of fluctuations in any such ratio or basket, including due to fluctuations in Adjusted Operating Income of the Company or the Person subject to such Limited Condition Transaction or any applicable currency exchange rate, at or prior to the consummation of the relevant transaction or action, such baskets, ratios, metrics or thresholds will not be deemed to have been exceeded or non-compliant as a result of such fluctuations solely for purposes of determining compliance of the relevant transaction or action with such provisions, baskets or thresholds. If the Company has made an LCT Election for any Limited Condition Transaction, then in connection with any subsequent calculation of any ratio or basket availability with, on or following the relevant LCT Test Date and prior to the earlier of (i) the date on which such Limited Condition Transaction is consummated or (ii) the date that the definitive agreement for such Limited Condition Transaction is terminated or expires without consummation of such Limited Condition Transaction, any such ratio or basket shall be calculated on (A) a pro forma basis assuming such Limited Condition Transaction and other transactions in connection therewith (including any incurrence of Indebtedness and the use of proceeds thereof) have been consummated until such time as the Limited Condition Transaction has been consummated or the definitive agreement with respect thereto has been terminated or expires and (B) on a standalone basis without giving effect to such Limited Condition Transaction and the other transactions in connection therewith.

Section 1.11 <u>Letter of Credit Amounts</u>. Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the stated amount of such Letter of Credit in effect at such time; <u>provided</u>, <u>however</u>, that with respect to any Letter of Credit that, by its terms, provides for one or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time.

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**ARTICLE II** 

**THE COMMITMENTS AND CREDIT EXTENSIONS** 

Section 2.01 <u>The Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>The Term Borrowing</u>. Subject to the terms and conditions hereof, each Lender severally agrees to make a single loan in Dollars to the Company on the Effective Date in a principal amount not to exceed its Term Commitment under the Initial Term Facility on the Effective Date. The Term Borrowing under the Initial Term Facility shall consist of Term Loans made simultaneously by the Term Lenders in accordance with their respective Applicable Percentage of the Initial Term Facility. Amounts borrowed under this <u>Section</u> <u>2.01(a)</u> and repaid or prepaid under <u>Section</u> <u>2.05</u> may not be reborrowed.. Subject to <u>Section 3.03</u>, each Term Borrowing shall be comprised entirely of ABR Loans or Term Benchmark Loans as the Company may request in accordance herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Revolving Credit</u> <u>Borrowings</u>. Subject to the terms and conditions set forth herein, each Revolving Credit Lender severally agrees to make loans in Dollars to the Company from time to time, on any Business Day during the Availability Period, in an aggregate amount not to exceed at any time outstanding the amount of such Lender's Revolving Credit Commitment; <u>provided</u>, <u>however</u>, that after giving effect to any Revolving Credit Borrowing, (i) the Total Revolving Credit Outstandings shall not exceed the Revolving Credit Facility, and (ii) the aggregate Outstanding Amount of the Revolving Credit Loans of any Lender, plus such Revolving Credit Lender's Applicable Revolving Credit Percentage of the Outstanding Amount of all L/C Obligations, shall not exceed such Revolving Credit Lender's Revolving Credit Commitment. Within the limits of each Revolving Credit Lender's Revolving Credit Commitment, and subject to the other terms and conditions hereof, the Company may borrow under this <u>Section</u> <u>2.01(b)</u>, prepay under <u>Section</u> <u>2.05</u>, and reborrow under this <u>Section</u> <u>2.01(b)</u>. Subject to <u>Section 3.03</u>, each Revolving Credit Borrowing shall be comprised entirely of ABR Loans or Term Benchmark Loans as the Company may request in accordance herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Existing Letters of Credit</u>. Each Existing Letter of Credit shall be deemed a Letter of Credit for all purposes of this Agreement and the other Loan Documents and considered issued hereunder pursuant to the terms hereof (the terms hereof and of the other Loan Documents shall govern and prevail in the case of any conflict with the provisions of the agreement(s) pursuant to which such Existing Letter of Credit had been issued (such agreement(s), the "<u>Original Letter of Credit Agreements</u>"), and the applicable L/C Issuer shall be deemed to have released the account party relating to such Existing Letter of Credit and the Company, as applicable, from the Original Letter of Credit Agreements to the extent of such conflict). Notwithstanding that any such assumed Existing Letter of Credit may be in support of any obligations of, or is for the account of, the Parent or a Subsidiary, the Company agrees that it shall be obligated to reimburse the applicable L/C Issuer hereunder for any and all drawings under such Existing Letter of Credit.

Section 2.02 <u>Borrowings, Conversions and Continuations of Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Term Borrowing, each Revolving Credit Borrowing, each conversion of Term Loans or Revolving Credit Loans from one Type to the other, and each continuation of Term Benchmark Loans shall be made upon the Company's delivery of a Committed Loan Notice to the Administrative Agent, which may be given by telephone. Each such notice must be received by the Administrative Agent not later than (i) 11:00 a.m. three U.S. Government Securities Business Days prior to the requested date of any Borrowing of, conversion to or continuation of Term Benchmark Loans or of any conversion of Term Benchmark Loans to ABR Loans, and (ii) 11:00 a.m. on the requested date of any Borrowing of ABR Loans; <u>provided</u>, <u>however</u>, that notice of the initial Borrowing of Term Benchmark Loans on the Closing Date pursuant to this <u>Section</u> <u>2.02(a)</u> may state that such notice is conditioned upon the occurrence of one or more events specified therein, in which case such notice may be revoked by the Company (by notice to the Administrative Agent on or prior to the Closing Date) if such condition is not satisfied. Each telephonic notice by the Company pursuant to this <u>Section</u> <u>2.02(a)</u> must be confirmed promptly by delivery to the Administrative Agent of a written Committed Loan Notice, appropriately completed and signed by a

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Responsible Officer of the Company. In the case of any discrepancies between telephonic and written notices received by the Administrative Agent, the telephonic notice shall be effective as understood in good faith by the Administrative Agent. Each Borrowing of, conversion to or continuation of Term Benchmark Loans shall be in a principal amount of $1,000,000 or a whole multiple of $1,000,000 in excess thereof. Each Borrowing of or conversion to ABR Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof. Each Committed Loan Notice (whether telephonic or written) shall specify (i) whether the Company is requesting a Term Borrowing, a Revolving Credit Borrowing, an Incremental Borrowing, if available, a conversion of Term Loans or Revolving Credit Loans from one Type to the other, or a continuation of Term Benchmark Loans, (ii) the requested date of the Borrowing, conversion or continuation, as the case may be (which shall be a Business Day), (iii) the principal amount of Loans to be borrowed, converted or continued, (iv) the Type of Loans to be borrowed or to which existing Loans are to be converted, and (v) if applicable, the duration of the Interest Period with respect thereto. If the Company fails to specify a Type of Loan in a Committed Loan Notice or if the Company fails to give a timely notice requesting a conversion or continuation, then the applicable Loans shall be made as, or converted to, ABR Loans. Any such automatic conversion to ABR Loans shall be effective as of the last day of the Interest Period then in effect with respect to the applicable Term Benchmark Loans. If the Company requests a Borrowing of, conversion to, or continuation of Term Benchmark Loans in any such Committed Loan Notice, but fails to specify an Interest Period, it will be deemed to have specified an Interest Period of one month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Following receipt of a Committed Loan Notice, the Administrative Agent shall promptly notify each Appropriate Lender of the amount of its Applicable Percentage under the applicable Facility of the applicable Term Loans, Revolving Credit Loans or Incremental Loans, if any, and if no timely notice of a conversion or continuation is provided by the Company, the Administrative Agent shall notify each Appropriate Lender of the details of any automatic conversion to ABR Loans described in <u>Section</u> <u>2.02(a)</u>. In the case of a Term Borrowing or a Revolving Credit Borrowing, each Appropriate Lender shall make the amount of its Loan available to the Administrative Agent in immediately available funds at the Administrative Agent's Office not later than (i) one hour after receipt of notice from the Administrative Agent on the Effective Date in the case of the initial Borrowing of ABR Loans (as long as such notice is received prior to 1:30 p.m. on such day) or (ii) 1:00 p.m. on the Business Day specified in the applicable Committed Loan Notice. Upon satisfaction of the applicable conditions set forth in <u>Section</u> <u>5.02</u> (and, (x) if such Borrowing is the initial Credit Extension on the Effective Date, <u>Section</u> <u>5.01</u> and (y) if such Borrowing is an Incremental Borrowing, the applicable conditions set forth in the applicable Incremental Supplement, as the case may be), the Administrative Agent shall make all funds so received available to the Company in like funds as received by the Administrative Agent either by (i) crediting the account of the Company on the books of JPMorgan with the amount of such funds or (ii) wire transfer of such funds, in each case in accordance with instructions provided to (and reasonably acceptable to) the Administrative Agent by the Company; <u>provided</u>, <u>however</u>, that if, on the date a Committed Loan Notice with respect to a Revolving Credit Borrowing is given by the Company, there are L/C Borrowings outstanding, then the proceeds of such Revolving Credit Borrowing, first, shall be applied to the payment in full of any such L/C Borrowings, and second, shall be made available to the Company as provided above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as otherwise provided herein, a Term Benchmark Loan may be continued or converted only on the last day of an Interest Period for such Term Benchmark Loan. During the existence of a Default, the Administrative Agent may notify the Company that Loans may only be converted into or continued as Loans of certain specified Types and, thereafter, until no Default shall continue to exist, Loans may not be converted into or continued as Loans of any Type other than one or more of such specified Types.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent shall promptly notify the Company and the Lenders of the interest rate applicable to any Interest Period for Term Benchmark Loans upon determination of such interest rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) After giving effect to all Borrowings, all conversions of Loans from one Type to the other, and all continuations of Loans as the same Type, there shall not be more than twelve (12) Interest Periods in effect in respect of the Facilities.

Section 2.03 <u>Letters of Credit</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>The Letter of Credit Commitment</u>. (i) Subject to the terms and conditions set forth herein, (A) each L/C Issuer agrees, in reliance upon the agreements of the Revolving Credit Lenders set forth in this <u>Section</u> <u>2.03</u>, (1) from time to time on any Business Day during the period from the Effective Date until the Letter of Credit Expiration Date, to issue Letters of Credit for the account of the Company, any Subsidiary, the Parent and/or any Subsidiary of the Parent, and to amend Letters of Credit previously issued by it, in accordance with <u>Section</u> <u>2.03(b)</u>, and (2) to honor drawings under the Letters of Credit issued by it; and (B) the Revolving Credit Lenders severally agree to participate in Letters of Credit issued for the account of the Company, any Subsidiary, the Parent and/or any Subsidiary of the Parent and any drawings thereunder; <u>provided</u> that after giving effect to any L/C Credit Extension with respect to any Letter of Credit, (w) the Total Revolving Credit Outstandings shall not exceed the aggregate Revolving Credit Commitments, (x) the aggregate Outstanding Amount of the Revolving Credit Loans of any Revolving Credit Lender, <u>plus</u> such Revolving Credit Lender's Applicable Revolving Credit Percentage of the Outstanding Amount of all L/C Obligations, shall not exceed such Lender's Revolving Credit Commitment, (y) the aggregate amount available to be drawn under all Letters of Credit issued by the applicable L/C Issuer issuing such Letter of Credit shall not exceed either of (I) such L/C Issuer's Letter of Credit Commitment (<u>provided</u> that any L/C Issuer may, following a request from the Company, in its sole discretion, issue Letters of Credit in an aggregate available amount in excess of such L/C Issuer's Letter of Credit Commitment so long as the Outstanding Amount of all L/C Obligations shall not exceed the Letter of Credit Sublimit) and (II) the aggregate amount of such L/C Issuer's unused Revolving Credit Commitment, and (z) the Outstanding Amount of the L/C Obligations shall not exceed the Letter of Credit Sublimit. Each request by the Company for the issuance or amendment of a Letter of Credit shall be deemed to be a representation by the Company that the L/C Credit Extension so requested complies with the conditions set forth in the proviso to the preceding sentence. Within the foregoing limits, and subject to the terms and conditions hereof, the Company's ability to obtain Letters of Credit shall be fully revolving, and accordingly the Company may, during the foregoing period, obtain Letters of Credit to replace Letters of Credit that have expired or that have been drawn upon and reimbursed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) No L/C Issuer shall issue any Letter of Credit if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the expiry date of such requested Letter of Credit would occur more than (x) in the case of Standby Letters of Credit, twelve months after the date of issuance or (y) in the case of Trade Letters of Credit, 180 days after the date of issuance, unless the applicable L/C Issuer has approved such expiry date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the expiry date of such requested Letter of Credit would occur after the Letter of Credit Expiration Date, unless all the Revolving Credit Lenders have approved such expiry date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) such Letter of Credit is to be denominated in a currency other than Dollars;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) No L/C Issuer shall be under any obligation to issue any Letter of Credit if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain such L/C Issuer from issuing such Letter of Credit or request that such L/C Issuer refrain from issuing such Letter of Credit, or any Law applicable to such L/C Issuer or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over such L/C Issuer shall prohibit the issuance of letters of credit generally or such Letter of Credit in particular, or any such order, judgment or decree, or law shall impose upon such L/C Issuer with respect to such Letter of Credit any restriction, reserve or capital or liquidity requirement (for which such L/C Issuer is not otherwise compensated hereunder) not in effect on the Effective Date, or shall impose upon such L/C Issuer any unreimbursed loss, cost or expense which was not applicable on the Effective Date and which such L/C Issuer in good faith deems material to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the issuance of such Letter of Credit would violate one or more policies of such L/C Issuer generally applicable to the issuance of letters of credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) except as otherwise agreed by the Administrative Agent and such L/C Issuer, such Letter of Credit is in an initial stated amount less than $50,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) such Letter of Credit contains any provisions for automatic reinstatement of the stated amount after any drawing thereunder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) a default of any Lender's obligations to fund under <u>Section</u> <u>2.03(c)</u> exists or any Lender is at such time a Defaulting Lender, unless such L/C Issuer has entered into arrangements satisfactory to such L/C Issuer with the Company or such Lender to eliminate such L/C Issuer's risk with respect to such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) No L/C Issuer shall amend any Letter of Credit if such L/C Issuer would not be permitted at such time to issue such Letter of Credit in its amended form under the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) No L/C Issuer shall be under any obligation to amend any Letter of Credit if (A) such L/C Issuer would have no obligation at such time to issue such Letter of Credit in its amended form under the terms hereof, or (B) the beneficiary of such Letter of Credit does not accept the proposed amendment to such Letter of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Each L/C Issuer shall act on behalf of the Revolving Credit Lenders with respect to any Letters of Credit issued by it and the documents associated therewith, and each L/C Issuer shall have all of the benefits and immunities (A) provided to the Administrative Agent in <u>Article</u> <u>IX</u> with respect to any acts taken or omissions suffered by such L/C Issuer in connection with Letters of Credit issued by it or proposed to be issued by it and Issuer Documents pertaining to such Letters of Credit as fully as if the term "Administrative Agent" as used in <u>Article</u> <u>IX</u> included such L/C Issuer with respect to such acts or omissions, and (B) as additionally provided herein with respect to such L/C Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Procedures for Issuance and Amendment of Letters of Credit</u>. (i) Each Letter of Credit shall be issued or amended, as the case may be, upon the request of the Company delivered to any L/C Issuer (with a copy to the Administrative Agent) in the form of a Letter of Credit Application, appropriately completed and signed by a senior executive of the Company. Such Letter of Credit Application may be sent by facsimile, by United States mail, by overnight courier, by electronic transmission as provided in <u>Section</u> <u>10.02(b)</u>, by personal delivery or by any other means acceptable to the applicable L/C Issuer. Such

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Letter of Credit Application must be received by the applicable L/C Issuer and the Administrative Agent not later than 11:00 a.m. at least two Business Days (or such later date and time as the Administrative Agent and the applicable L/C Issuer may agree in a particular instance in their sole discretion) prior to the proposed issuance date or date of amendment, as the case may be. In the case of a request for an initial issuance of a Letter of Credit, such Letter of Credit Application shall specify in form and detail satisfactory to the applicable L/C Issuer: (A) the proposed issuance date of the requested Letter of Credit (which shall be a Business Day); (B) the amount thereof; (C) the expiry date thereof; (D) the name and address of the beneficiary thereof; (E) the documents to be presented by such beneficiary in case of any drawing thereunder; (F) the full text of any certificate to be presented by such beneficiary in case of any drawing thereunder; (G) the purpose and nature of the requested Letter of Credit; and (H) such other matters as the applicable L/C Issuer may require. In the case of a request for an amendment of any outstanding Letter of Credit, such Letter of Credit Application shall specify in form and detail satisfactory to the applicable L/C Issuer (1) the Letter of Credit to be amended; (2) the proposed date of amendment thereof (which shall be a Business Day); (3) the nature of the proposed amendment; and (4) such other matters as the applicable L/C Issuer may require. Additionally, the Company shall furnish to each L/C Issuer and the Administrative Agent such other documents and information pertaining to such requested Letter of Credit issuance or amendment, including any Issuer Documents, as any L/C Issuer or the Administrative Agent may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Promptly after receipt of any Letter of Credit Application, the applicable L/C Issuer will confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has received a copy of such Letter of Credit Application from the Company and, if not, such L/C Issuer will provide the Administrative Agent with a copy thereof. Unless the applicable L/C Issuer has received written notice from any Revolving Credit Lender, the Administrative Agent or any Loan Party, at least one Business Day prior to the requested date of issuance or amendment of the applicable Letter of Credit, that one or more applicable conditions contained in <u>Article</u> <u>V</u> shall not then be satisfied, then, subject to the terms and conditions hereof, such L/C Issuer shall, on the requested date, issue a Letter of Credit for the account of the Company (and/or the applicable Affiliate of the Company) or enter into the applicable amendment, as the case may be, in each case in accordance with such L/C Issuer's usual and customary business practices. Immediately upon the issuance of each Letter of Credit, each Revolving Credit Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the applicable L/C Issuer a risk participation in such Letter of Credit in an amount equal to the product of such Revolving Credit Lender's Applicable Revolving Credit Percentage times the amount of such Letter of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Promptly after its delivery of any Letter of Credit or any amendment to a Letter of Credit to an advising bank with respect thereto or to the beneficiary thereof, the applicable L/C Issuer will also deliver to the Company and the Administrative Agent a true and complete copy of such Letter of Credit or amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Drawings and Reimbursements; Funding of Participations</u>. (i) Upon receipt from the beneficiary of any Letter of Credit of any notice of a drawing under such Letter of Credit, the applicable L/C Issuer shall notify the Company and the Administrative Agent thereof. Not later than 11:00 a.m. on the date of any payment by such L/C Issuer under a Letter of Credit (each such date, an "<u>Honor Date</u>"), the Company shall reimburse such L/C Issuer through the Administrative Agent in an amount equal to the amount of such drawing. If the Company fails to so reimburse the applicable L/C Issuer by such time, the Administrative Agent shall promptly notify each Revolving Credit Lender of the Honor Date, the amount of the unreimbursed drawing (the "<u>Unreimbursed Amount</u>"), and the amount of such Revolving Credit Lender's Applicable Revolving Credit Percentage thereof. In such event, the Company shall be deemed to have requested a Revolving Credit Borrowing of ABR Loans to be disbursed on the Honor Date in an amount equal to the Unreimbursed Amount, without regard to the minimum and multiples specified in <u>Section</u> <u>2.02</u> for the principal amount of ABR Loans, but subject to the amount of the unutilized portion of the Revolving Credit Commitments and the conditions set forth in <u>Section</u> <u>5.02</u> (other than the delivery of

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a Committed Loan Notice). Any notice given by any L/C Issuer or the Administrative Agent pursuant to this <u>Section</u> <u>2.03(c)(i)</u> may be given by telephone if immediately confirmed in writing; <u>provided</u> that such notice need not be given prior to payment by the L/C Issuer and the lack of such an immediate confirmation shall not affect the conclusiveness or binding effect of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each Revolving Credit Lender shall upon any notice pursuant to <u>Section</u> <u>2.03(c)(i)</u> make funds available to the Administrative Agent for the account of the applicable L/C Issuer at the Administrative Agent's Office in an amount equal to its Applicable Revolving Credit Percentage of the Unreimbursed Amount not later than 1:00 p.m. on the Business Day specified in such notice by the Administrative Agent, whereupon, subject to the provisions of <u>Section</u> <u>2.03(c)(iii)</u>, each Revolving Credit Lender that so makes funds available shall be deemed to have made a ABR Loan to the Company in such amount. The Administrative Agent shall remit the funds so received to the applicable L/C Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) With respect to any Unreimbursed Amount that is not fully refinanced by a Revolving Credit Borrowing of ABR Loans because the conditions set forth in <u>Section</u> <u>5.02</u> cannot be satisfied or for any other reason, the Company shall be deemed to have incurred from the applicable L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be due and payable on demand (together with interest) and shall bear interest at the Default Rate. In such event, each Revolving Credit Lender's payment to the Administrative Agent for the account of such L/C Issuer pursuant to <u>Section</u> <u>2.03(c)(ii)</u> shall be deemed payment in respect of its participation in such L/C Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its participation obligation under this <u>Section</u> <u>2.03</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Until each Revolving Credit Lender funds its Revolving Credit Loan or L/C Advance pursuant to this <u>Section</u> <u>2.03(c)</u> to reimburse the applicable L/C Issuer for any amount drawn under any Letter of Credit, interest in respect of such Lender's Applicable Revolving Credit Percentage of such amount shall be solely for the account of such L/C Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Each Revolving Credit Lender's obligation to make Revolving Credit Loans to the Company or L/C Advances to reimburse any L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this <u>Section</u> <u>2.03(c)</u>, shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right which such Lender may have against the applicable L/C Issuer, the Company or any other Person for any reason whatsoever, (B) the occurrence or continuance of a Default, or (C) any other occurrence, event or condition, whether or not similar to any of the foregoing; <u>provided</u>, <u>however</u>, that each Revolving Credit Lender's obligation to make Revolving Credit Loans pursuant to this <u>Section</u> <u>2.03(c)</u> is subject to the conditions set forth in <u>Section</u> <u>5.02</u> (other than delivery by the Company of a Committed Loan Notice). No such making of an L/C Advance shall relieve or otherwise impair the obligation of the Company to reimburse any L/C Issuer for the amount of any payment made by such L/C Issuer under any Letter of Credit, together with interest as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) If any Revolving Credit Lender fails to make available to the Administrative Agent for the account of any L/C Issuer any amount required to be paid by such Lender pursuant to the foregoing provisions of this <u>Section</u> <u>2.03(c)</u> by the time specified in <u>Section</u> <u>2.03(c)(ii)</u>, such L/C Issuer shall be entitled to recover from such Lender (acting through the Administrative Agent), on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to such L/C Issuer at a rate per annum equal to the greater of the NYFRB Rate and a rate determined by such L/C Issuer in accordance with banking industry rules on interbank compensation, plus any administrative, processing or similar fees customarily charged by such L/C Issuer in connection with the foregoing. A certificate of the applicable L/C Issuer submitted to any Revolving Credit Lender (through the Administrative Agent) with respect to any amounts owing under this <u>Section</u> <u>2.03(c)(vi)</u> shall be conclusive absent manifest error.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Repayment of Participations</u>. (i) At any time after any L/C Issuer has made a payment under any Letter of Credit and has received from any Revolving Credit Lender such Lender's L/C Advance in respect of such payment in accordance with <u>Section</u> <u>2.03(c)</u>, if the Administrative Agent receives for the account of the applicable L/C Issuer any payment in respect of the related Unreimbursed Amount or interest thereon (whether directly from the Company or otherwise, including proceeds of Cash Collateral applied thereto by the Administrative Agent), the Administrative Agent will distribute to such Lender its Applicable Revolving Credit Percentage thereof (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Lender's L/C Advance was outstanding) in the same funds as those received by the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If any payment received by the Administrative Agent for the account of any L/C Issuer pursuant to <u>Section</u> <u>2.03(c)(i)</u> is required to be returned under any of the circumstances described in <u>Section</u> <u>10.05</u> (including pursuant to any settlement entered into by the applicable L/C Issuer in its discretion), each Revolving Credit Lender shall pay to the Administrative Agent for the account of the applicable L/C Issuer its Applicable Revolving Credit Percentage thereof on demand of the Administrative Agent, plus interest thereon from the date of such demand to the date such amount is returned by such Lender, at a rate per annum equal to the NYFRB Rate from time to time in effect. The obligations of the Lenders under this clause shall survive the payment in full of the Obligations and the termination of this Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Obligations Absolute</u>. The obligation of the Company to reimburse each L/C Issuer for each drawing under each Letter of Credit and to repay each L/C Borrowing shall be absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this Credit Agreement under all circumstances, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any lack of validity or enforceability of such Letter of Credit, this Credit Agreement, or any other Loan Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the existence of any claim, counterclaim, setoff, defense or other right that the Company or any Affiliate of the Company may have at any time against any beneficiary or any transferee of such Letter of Credit (or any Person for whom any such beneficiary or any such transferee may be acting), any L/C Issuer or any other Person, whether in connection with this Credit Agreement, the transactions contemplated hereby or by such Letter of Credit or any agreement or instrument relating thereto, or any unrelated transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any draft, demand, certificate or other document presented under such Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect; or any loss or delay in the transmission or otherwise of any document required in order to make a drawing under such Letter of Credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any payment by the applicable L/C Issuer under such Letter of Credit against presentation of a draft or certificate that does not strictly comply with the terms of such Letter of Credit; or any payment made by the applicable L/C Issuer under such Letter of Credit to any Person purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the benefit of creditors, liquidator, receiver or other representative of or successor to any beneficiary or any transferee of such Letter of Credit, including any arising in connection with any proceeding under any Debtor Relief Law;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) waiver by the L/C Issuer of any requirement that exists for the L/C Issuer's protection and not the protection of the Company or any waiver by the L/C Issuer which does not materially prejudice the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) honor of a demand for payment presented electronically even if such Letter of Credit requires that demand be in the form of a draft; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any other circumstance or happening whatsoever, whether or not similar to any of the foregoing, including any other circumstance that might otherwise constitute a defense available to, or a discharge of, the Company or any Affiliate of the Company.

The Company shall promptly examine a copy of each Letter of Credit and each amendment thereto that is delivered to it and, in the event of any claim of noncompliance with the Company's instructions or other irregularity, the Company will immediately notify the L/C Issuers. The Company shall be conclusively deemed to have waived any such claim against any L/C Issuer and its correspondents unless such notice is given as aforesaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Role of L/C Issuer</u>. Each Lender and the Company agree that, in paying any drawing under a Letter of Credit, no L/C Issuer shall have any responsibility to obtain any document (other than any sight draft, certificates and documents expressly required by the Letter of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the authority of the Person executing or delivering any such document. None of the L/C Issuers, the Administrative Agent, any of their respective Related Parties nor any correspondent, participant or assignee of any L/C Issuer shall be liable to any Lender for (i) any action taken or omitted in connection herewith at the request or with the approval of the Revolving Credit Lenders or the Required Lenders, as applicable; (ii) any action taken or omitted in the absence of gross negligence or willful misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any document or instrument related to any Letter of Credit or Issuer Document. The Company hereby assumes all risks of the acts or omissions of any beneficiary or transferee with respect to its use of any Letter of Credit; <u>provided</u>, <u>however</u>, that this assumption is not intended to, and shall not, preclude the Company's pursuing such rights and remedies as it may have against the beneficiary or transferee at law or under any other agreement. None of the L/C Issuers, the Administrative Agent, any of their respective Related Parties nor any correspondent, participant or assignee of any L/C Issuer shall be liable or responsible for any of the matters described in <u>clauses</u> <u>(i)</u> through <u>(vii)</u> of <u>Section</u> <u>2.03(e)</u>; <u>provided</u>, <u>however</u>, that anything in such clauses to the contrary notwithstanding, the Company may have a claim against an L/C Issuer, and an L/C Issuer may be liable to the Company, to the extent, but only to the extent, of any direct, as opposed to consequential or exemplary, damages suffered by the Company which the Company proves were caused by such L/C Issuer's willful misconduct or gross negligence or such L/C Issuer's willful failure to pay under any Letter of Credit after the presentation to it by the beneficiary of a sight draft and certificate(s) strictly complying with the terms and conditions of a Letter of Credit. In furtherance and not in limitation of the foregoing, an L/C Issuer may accept documents that appear on their face to be in order, without responsibility for further investigation, regardless of any notice or information to the contrary, and no L/C Issuer shall be responsible for the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign a Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason. The L/C Issuer may send a Letter of Credit or conduct any communication to or from the beneficiary via SWIFT message or overnight courier, or any other commercially reasonable means of communicating with a beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Cash Collateral</u>. Upon the request of the Administrative Agent, (i) if an L/C Issuer has honored any full or partial drawing request under any Letter of Credit and such drawing has resulted in an L/C Borrowing, or (ii) if, as of the Letter of Credit Expiration Date, any L/C Obligation for any reason remains outstanding, the Company shall, in each case, immediately Cash Collateralize the then Outstanding

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Amount of all L/C Obligations. In addition, if any Revolving Credit Lender shall become a Defaulting Lender, then upon a request of the Administrative Agent (made on behalf of itself or at the direction of any L/C Issuer), the Company shall immediately Cash Collateralize all of such Defaulting Lender's Pro Rata Share of the then Outstanding Amount of all L/C Obligations (in an amount equal to such Defaulting Lender's Pro Rata Share of such Outstanding Amount, determined as of the date of such request from the Administrative Agent). <u>Section</u> <u>2.05</u> and <u>Section</u> <u>8.02</u> set forth certain additional requirements to deliver Cash Collateral hereunder. For purposes of this <u>Section</u> <u>2.03</u>, <u>Section</u> <u>2.05</u> and <u>Section</u> <u>8.02</u>, "<u>Cash Collateralize</u>" means to pledge and deposit with or deliver to the Administrative Agent, for the benefit of the L/C Issuers and the Lenders, as collateral for the L/C Obligations, cash or deposit account balances (collectively, "<u>Cash Collateral</u>") pursuant to documentation in form and substance reasonably satisfactory to the Administrative Agent and the L/C Issuers (which documents are hereby consented to by the Lenders). Derivatives of such term have corresponding meanings. The Company hereby grants to the Administrative Agent, for the benefit of the L/C Issuers and the Lenders, a security interest in all such cash, deposit accounts and all balances therein and all proceeds of the foregoing. Cash Collateral shall be maintained in blocked, non-interest bearing deposit accounts at JPMorgan. If at any time the Administrative Agent determines that any funds held as Cash Collateral are subject to any right or claim of any Person other than the Administrative Agent or that the total amount of such funds is less than the aggregate Outstanding Amount of all L/C Obligations, the Company will, forthwith upon demand by the Administrative Agent, pay to the Administrative Agent, as additional funds to be deposited as Cash Collateral, an amount equal to the excess of (x) such aggregate Outstanding Amount over (y) the total amount of funds, if any, then held as Cash Collateral that the Administrative Agent determines to be free and clear of any such right and claim. Upon the drawing of any Letter of Credit for which funds are on deposit as Cash Collateral, such funds shall be applied, to the extent permitted under applicable Laws, to reimburse the L/C Issuers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Applicability of ISP and UCP</u>. Unless otherwise expressly agreed by the applicable L/C Issuer and the Company when a Letter of Credit is issued, (i) the rules of the ISP shall apply to each Standby Letter of Credit, and (ii) the rules of the UCP, as most recently published by the International Chamber of Commerce at the time of issuance, shall apply to each Trade Letter of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Letter of Credit Fees</u>. The Company shall pay to the Administrative Agent for the account of each Revolving Credit Lender in accordance with its Applicable Revolving Credit Percentage a Letter of Credit Fee (the "<u>Letter of Credit Fee</u>") for each Letter of Credit equal to the Applicable Rate for Revolving Credit Loans maintained as Term Benchmark Loans times the daily amount available to be drawn under such Letter of Credit. For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with <u>Section</u> <u>1.06</u>. Letter of Credit Fees shall be (A) computed on a quarterly basis in arrears and (B) due and payable on the first Business Day after the end of each March, June, September and December, commencing with the first such date to occur after the issuance of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand. If there is any change in the Applicable Rate during any quarter, the daily amount available to be drawn under each Letter of Credit shall be computed and multiplied by the Applicable Rate separately for each period during such quarter that such Applicable Rate was in effect. Notwithstanding anything to the contrary contained herein, upon the request of the Required Lenders, while any Event of Default exists, all Letter of Credit Fees shall accrue at the Default Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Fronting Fee and Documentary and Processing Charges Payable to L/C Issuers</u>. The Company shall pay directly to each L/C Issuer for its own account a fronting fee with respect to each Letter of Credit issued by it, at the rate of <sup>1</sup>⁄<sub>4</sub> of 1.00% per annum (but in no event less than $500 per annum for each Letter of Credit) (i) with respect to each Trade Letter of Credit, computed on the amount of such Letter of Credit, and payable upon the issuance thereof, (ii) with respect to any amendment of a Trade Letter of Credit increasing the amount or extending the term of such Trade Letter of Credit, computed on the amount of such increase, and payable upon the effectiveness of such amendment (<u>provided</u> that the $500 per annum

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minimum set forth in the previous parenthetical shall not apply to an amendment of a Trade Letter of Credit), and (iii) with respect to each Standby Letter of Credit, computed on the daily amount available to be drawn under such Standby Letter of Credit on a quarterly basis in arrears. Such fronting fee shall be due and payable on the tenth Business Day after the end of each March, June, September and December in respect of the most recently-ended quarterly period (or portion thereof, in the case of the first payment), commencing with the first such date to occur after the issuance of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand. For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with <u>Section</u> <u>1.06</u>. In addition, the Company shall pay directly to each L/C Issuer for its own account the customary issuance, presentation, amendment and other processing fees, and other standard costs and charges, of such L/C Issuer relating to letters of credit as from time to time in effect. Such customary fees and standard costs and charges are due and payable on demand and are nonrefundable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Conflict with Issuer Documents</u>. In the event of any conflict between the terms hereof and the terms of any Issuer Document, the terms hereof shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Letters of Credit Issued for Affiliates</u>. Notwithstanding that a Letter of Credit issued or outstanding hereunder is in support of any obligations of, or is for the account of, an Affiliate of the Company, or states that an Affiliate of the Company is the "account party," "applicant," "customer," "instructing party," or the like of or for such Letter of Credit, and without derogating from any rights of the applicable L/C Issuer (whether arising by contract, law, in equity or otherwise) against such Affiliate in respect of such Letter of Credit, the Company (i) shall be obligated to reimburse, indemnify and compensate any L/C Issuer hereunder for any and all drawings under such Letter of Credit as if such Letter of Credit had been issued solely for the account of the Company and (ii) irrevocably waives any and all defenses that might otherwise be available to it as a guarantor or surety of any or all of the obligations of such Affiliate in respect of such Letter of Credit. The Company hereby acknowledges that the issuance of Letters of Credit for the account of Affiliates inures to the benefit of the Company and that the Company's business derives substantial benefits from the businesses of such Affiliates.

Section 2.04 <u>[Reserved]</u>.

Section 2.05 <u>Prepayments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Optional</u>. The Company may, upon notice to the Administrative Agent, at any time or from time to time voluntarily prepay Term Loans and Revolving Credit Loans in whole or in part; <u>provided</u> that (w) such notice must be received by the Administrative Agent not later than 11:00 a.m. (A) three Business Days prior to any date of prepayment of Term Benchmark Loans, (B) five Business Days prior to any date of prepayment of RFR Loans, and (C) one Business Day prior to any date of prepayment of ABR Loans; (x) any prepayment of Term Benchmark Loans shall be in a principal amount of $1,000,000 or a whole multiple of $1,000,000 in excess thereof; (y) any prepayment of RFR Loans shall be in a principal amount of $1,000,000 or a whole multiple of $1,000,000 in excess thereof; and (z) any prepayment of ABR Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof or, in each case, if less, the entire principal amount thereof then outstanding. Each such notice shall specify the date and amount of such prepayment, the Type(s) of Loans to be prepaid and, if Term Benchmark Loans are to be prepaid, the Interest Period(s) of such Loans; <u>provided</u> that a notice of prepayment given pursuant to this <u>Section</u> <u>2.05(a)</u> may state that such notice is conditioned upon the occurrence of one or more events specified therein, in which case such notice of prepayment may be revoked by the Company (by notice to the Administrative Agent on or prior to the specified date of prepayment) if such condition is not satisfied. The Administrative Agent will promptly notify each Lender of its receipt of each such notice, and of the amount of such Lender's ratable portion of such prepayment. If such notice is given by the Company, the Company shall make such prepayment and the payment amount

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specified in such notice shall be due and payable on the date specified therein. Any prepayment of a Term Benchmark Loan shall be accompanied by all accrued interest on the amount prepaid, together with any additional amounts required pursuant to <u>Section</u> <u>3.05</u>. Each prepayment of the outstanding Loans pursuant to this <u>Section</u> <u>2.05(a)</u> shall be applied to the principal repayment installments thereof as directed by the Company (and if not so directed, on a pro-rata basis), and, subject to <u>Section</u> <u>2.16</u>, each such prepayment shall be paid to the Lenders in accordance with their respective Applicable Percentages in the relevant Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Mandatory</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If (A) the Company or any Subsidiary Disposes of any assets other than Dispositions under <u>Section</u> <u>7.24(a)</u>, <u>Section</u> <u>7.24(b)</u>, <u>Section</u> <u>7.24(e)</u> or <u>Section</u> <u>7.24(f)</u> (a "<u>Mandatory Prepayment Disposition</u>"), or (B) the Company or any Restricted Subsidiary suffers an Event of Loss, which in each case, together with all other Mandatory Prepayment Dispositions made and Events of Loss suffered at any time since the Effective Date, result in the realization by the Loan Parties, collectively, of Net Cash Proceeds from Mandatory Prepayment Dispositions and Events of Loss in an aggregate amount in excess of $25,000,000, the Company shall in each case prepay, within three Business Days after receipt thereof by such Person, an aggregate principal amount of Loans equal to 100% of such Net Cash Proceeds; <u>provided</u> that (x) with respect to all or a portion of any Net Cash Proceeds realized under a Disposition (A) described in this <u>Section</u> <u>2.05(b)(i)(A)</u> (other than in connection with any Disposition of (i) the Equity Interests in any Arena Subsidiary or (ii) any interest in the Arena), at the election of the Company, and so long as no Default shall have occurred and be continuing, the Company or such Subsidiary may reinvest (or commit to reinvest) Net Cash Proceeds arising from such Disposition in an aggregate amount, when combined with the aggregate amount of Net Cash Proceeds previously reinvested pursuant to this <u>clause (A)</u>, not to exceed $50,000,000 in assets used or useful in the business of the Company and its Subsidiaries within 365 days after the receipt of such Net Cash Proceeds (or, to the extent so committed to be reinvested within 365 days after such receipt, is actually reinvested within 545 days after such receipt) or (B) of (i) the Equity Interests in any Arena Subsidiary or (ii) any interest in the Arena (including, without limitation, any Real Property Improvements or Real Property Other Interests in any way belonging, relating or pertaining to or benefiting the Arena), at the election of the Company, and so long as no Default shall have occurred and be continuing, the Company or such Subsidiary may reinvest (or commit to reinvest) Net Cash Proceeds arising from such Disposition in an aggregate amount, when combined with the aggregate amount of Net Cash Proceeds previously reinvested pursuant to this <u>clause (B)</u>, not to exceed $50,000,000 in assets used or useful in the business of the Company and its Subsidiaries within 365 days after the receipt of such Net Cash Proceeds (or, to the extent so committed to be reinvested within 365 days after such receipt, is actually reinvested within 545 days after such receipt) and (y) with respect to any Net Cash Proceeds of casualty insurance or condemnation awards realized due to an Event of Loss described in this <u>Section</u> <u>2.05(b)(i)(B</u>), at the election of the Company (as notified by the Company to the Administrative Agent on or prior to such third Business Day following receipt of such Net Cash Proceeds of casualty insurance or condemnation awards), and so long as no Default shall have occurred and be continuing, the Company or such Subsidiary may apply within 365 days (or, (x) to the extent so committed to be reinvested within 365 days after such receipt, is actually reinvested within 545 days after such receipt or (y) if such replacement or repair could not reasonably be completed within 545 days, such period shall be extended for a reasonable period of time to permit completion of such replacement and repair so long as the replacement or repair of the asset or assets that suffered the Event of Loss is being diligently pursued by the Company or such Subsidiary) after the receipt of such Net Cash Proceeds to replace or repair the equipment, fixed assets or real property in respect of which such Net Cash Proceeds were received; and <u>provided</u> <u>further</u>, that any Net Cash Proceeds not so reinvested within the time periods set forth above shall be immediately applied to the prepayment of the Loans.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) [<u>Reserved</u>].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Upon the incurrence or issuance by the Company or any Restricted Subsidiary of any Indebtedness (other than, except in the case of any Refinancing Facility or any Refinancing Equivalent Debt or Permitted Refinancing Indebtedness in respect of the Facilities, Indebtedness permitted under <u>Section</u> <u>7.14</u>), the Company shall prepay an aggregate principal amount of Loans equal to 100% of all Net Cash Proceeds received therefrom immediately upon receipt thereof by the Company or such Restricted Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If for any reason the Total Revolving Credit Outstandings at any time exceed the Revolving Credit Facility at such time, the Company shall immediately prepay Revolving Credit Loans and L/C Borrowings and/or Cash Collateralize the L/C Obligations (other than the L/C Borrowings) in an aggregate amount equal to such excess.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Prepayments made pursuant to clauses (i) through (iii) of this <u>Section</u> <u>2.05(b)</u>, except to the extent that the Incremental Term Lenders under an Incremental Term Facility have otherwise agreed, shall be applied ratably to the outstanding Loans under the Initial Term Facility and each Incremental Term Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Prepayments made pursuant to clause (iv) of this Section 2.05(b) shall be applied <u>first</u>, ratably to the L/C Borrowings, <u>second</u>, except to the extent that the Incremental Revolving Credit Lenders under an Incremental Revolving Credit Facility have otherwise agreed, shall be applied ratably to the outstanding Loans under the Initial Revolving Credit Facility and each Incremental Revolving Credit Facility, if any, and, <u>third</u>, shall be used to Cash Collateralize the remaining L/C Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) In the case of prepayments required pursuant to <u>clause</u> <u>(i)</u> through <u>(iv)</u> of this <u>Section</u> <u>2.05(b)</u>, the amount remaining, if any, after the prepayment in full of all L/C Borrowings and Loans outstanding at such time and the Cash Collateralization of the remaining L/C Obligations in full may be retained by the Company for use in the ordinary course of its business. Upon the drawing of any Letter of Credit that has been Cash Collateralized, the funds held as Cash Collateral shall be applied (without any further action by or notice to or from the Company or any other Loan Party) to reimburse the L/C Issuers or the Revolving Credit Lenders, as applicable.

Section 2.06 <u>Termination or Reduction of Commitments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Optional</u>. The Company may, upon notice to the Administrative Agent, terminate any Revolving Credit Facility or the Letter of Credit Sublimit, or from time to time permanently reduce any Revolving Credit Facility or the Letter of Credit Sublimit; <u>provided</u> that (i) any such notice shall be received by the Administrative Agent not later than 11:00 a.m. three Business Days prior to the date of termination or reduction, (ii) any such partial reduction shall be in an aggregate amount of $10,000,000 or any whole multiple of $1,000,000 in excess thereof, (iii) the Company shall not terminate or reduce (A) any Revolving Credit Facility if, after giving effect thereto and to any concurrent prepayments hereunder, the Total Revolving Credit Outstandings would exceed the Revolving Credit Facility or (B) the Letter of Credit Sublimit if, after giving effect thereto, the Outstanding Amount of L/C Obligations not fully Cash Collateralized hereunder would exceed the Letter of Credit Sublimit, and (iv) to the extent practicable, each partial reduction in the Letter of Credit Sublimit shall be allocated ratably among the L/C Issuers in accordance with their respective Letter of Credit Commitments. Each such notice shall be irrevocable; <u>provided</u> that a notice of termination or reduction given pursuant to this <u>Section</u> <u>2.06(a)</u> may state that such notice is conditioned upon the occurrence of one or more events specified therein, in which case such notice of termination or reduction may be revoked by the Company (by notice to the Administrative Agent on or prior to the specified date of prepayment) if such condition is not satisfied.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Mandatory</u>. (i) The aggregate Term Commitments under the Initial Term Facility and any Incremental Term Facility shall be automatically and permanently reduced to zero on the date of the applicable Term Borrowing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If after giving effect to any reduction or termination of Revolving Credit Commitments under this <u>Section</u> <u>2.06</u>, the Letter of Credit Sublimit exceeds the Revolving Credit Facility at such time, the Letter of Credit Sublimit shall be automatically reduced by the amount of such excess.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Application of Commitment Reductions; Payment of Fees</u>. The Administrative Agent will promptly notify the Lenders of any termination or reduction of the Letter of Credit Sublimit or the Revolving Credit Commitments under this <u>Section</u> <u>2.06</u>. Upon any reduction of the Revolving Credit Commitments, the Revolving Credit Commitment of each Revolving Credit Lender under the Initial Revolving Credit Facility and any Incremental Revolving Credit Facility shall be reduced by such Revolving Credit Lender's Applicable Percentage of such reduction amount with respect to each such Revolving Credit Facility. All fees in respect of any Revolving Credit Facility accrued until the effective date of any termination of such Facility shall be paid on the effective date of such termination.

Section 2.07 <u>Repayment of Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Initial Term Facility</u>. The Company shall, on each date set forth below, pay a principal amount of the Initial Term Facility in an aggregate amount equal to the percentage set forth below for such date of the original principal amount of the Initial Term Facility:

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| | | | |
|:---|:---|:---|:---|
| **Date** | **Principal<br>Amortization<br>Payment** | **Date** | **Principal<br>Amortization<br>Payment** |
|  June 30, 2022 | 0.000% | December 31, 2024 | 0.625% |
|  September 30, 2022 | 0.000% | March 31, 2025 | 0.625% |
|  December 31, 2022 | 0.000% | June 30, 2025 | 0.625% |
|  March 31, 2023 | 0.625% | September 30, 2025 | 1.250% |
|  June 30, 2023 | 0.625% | December 31, 2025 | 1.250% |
|  September 30, 2023 | 0.625% | March 31, 2026 | 1.250% |
|  December 31, 2023 | 0.625% | June 30, 2026 | 1.250% |
|  March 31, 2024 | 0.625% | September 30, 2026 | 1.250% |
|  June 30, 2024 | 0.625% | December 31, 2026 | 1.250% |
|  September 30, 2024 | 0.625% | March 31, 2027 | 1.250% |

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The Company shall pay the entire remaining unpaid principal amount of the Initial Term Facility on the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Incremental Term Loans</u>. The Company shall repay to the Incremental Term Lenders the principal amount of the Incremental Term Loans in such amounts and at such times as shall be set forth in the applicable Incremental Term Supplement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Revolving Credit Loans and Incremental Revolving Credit Loans</u>. The Company shall repay to the Revolving Credit Lenders and Incremental Revolving Credit Lenders on the Maturity Date applicable to each such Facility, the aggregate principal amount of all Revolving Credit Loans and Incremental Revolving Credit Loans, as applicable, outstanding on such date.

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Section 2.08 <u>Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the provisions of <u>Section</u> <u>2.08(b)</u>, (i) each Term Benchmark Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to the Adjusted Term SOFR for such Interest Period plus the Applicable Rate for such Facility; (ii) each RFR Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Adjusted Daily Simple SOFR plus the Applicable Rate for such Facility; and (iii) each ABR Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Alternate Base Rate plus the Applicable Rate for such Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) If any amount of principal of any Loan is not paid when due (without regard to any applicable grace periods), whether at stated maturity, by acceleration or otherwise, such amount shall, upon the written request of the Administrative Agent acting at the direction of the Required Lenders, bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If any amount (other than principal of any Loan) payable by the Company under any Loan Document is not paid when due (without regard to any applicable grace periods), whether at stated maturity, by acceleration or otherwise, then upon the written request of the Administrative Agent acting at the direction of the Required Lenders, such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and payable upon demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Interest on each ABR Loan, Term Benchmark Loan and RFR Loan shall be due and payable in arrears on each Interest Payment Date applicable thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Interest hereunder shall be due and payable in accordance with the terms hereof before and after judgment, and before and after the commencement of any proceeding under any Debtor Relief Law.

Section 2.09 <u>Fees</u>. In addition to certain fees described in <u>Section</u> <u>2.03(i) and (j)</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Commitment Fee</u>. The Company shall pay to the Administrative Agent for the account of each Revolving Credit Lender that is not a Defaulting Lender in accordance with its Applicable Revolving Credit Percentage, a commitment fee (the "<u>Commitment Fee</u>") on the actual daily amount by which the Initial Revolving Credit Facility exceeds the Total Outstandings under the Initial Revolving Credit Facility, at a rate equal to the Commitment Fee Percentage; <u>provided</u>, <u>however</u>, that any Commitment Fee accrued with respect to any of the Commitments of a Defaulting Lender during the period prior to the time such Lender became a Defaulting Lender and unpaid at such time shall not be payable by the Company so long as such Lender shall be a Defaulting Lender except to the extent that such Commitment Fee shall otherwise have been due and payable by the Company prior to such time, and <u>provided</u>, <u>further</u>, that no Commitment Fee shall accrue on any of the Commitments of a Defaulting Lender so long as such Lender shall be a Defaulting Lender. The Commitment Fee shall accrue at all times during the Availability Period, including at any time during which one or more of the conditions in <u>Article</u> <u>V</u> is not met, and shall be due and payable quarterly in arrears on the last Business Day of each March, June, September and December, commencing with the first such date to occur after the Effective Date, and on the last day of the Availability Period for the Revolving Credit Facility. The Commitment Fee shall be calculated quarterly in arrears.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Other Fees</u>. The Company shall pay to the Administrative Agent, the Lead Arranger and the Lenders such fees as shall have been separately agreed upon in writing in the amounts and at the times so specified. Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.

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Section 2.10 <u>Computation of Interest and Fees</u>. All computations of interest for ABR Loans, when the Alternate Base Rate is determined by the Prime Rate, shall be made on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed. All other computations of fees and interest shall be made on the basis of a 360-day year and actual days elapsed. Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is paid, <u>provided</u> that any Loan that is repaid on the same day on which it is made shall, subject to <u>Section</u> <u>2.12(a)</u>, bear interest for one day. All interest hereunder on any Loan shall be computed on a daily basis based upon the outstanding principal amount of such Loan as of the applicable date of determination. Each determination by the Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest error.

Section 2.11 <u>Evidence of Debt</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Credit Extensions made by each Lender shall be evidenced by one or more accounts or records maintained by such Lender and by the Administrative Agent in the ordinary course of business. The accounts or records maintained by the Administrative Agent and each Lender shall be conclusive absent manifest error of the amount of the Credit Extensions made by the Lenders to the Company and the interest and payments thereon. Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Company hereunder to pay any amount owing with respect to the Obligations. In the event of any conflict between the accounts and records maintained by any Lender and the accounts and records of the Administrative Agent in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error. Upon the request of any Lender made through the Administrative Agent, the Company shall execute and deliver to such Lender (through the Administrative Agent) a Note, which shall evidence such Lender's Loans in addition to such accounts or records. Each Lender may attach schedules to its Note and endorse thereon the date, Type (if applicable), amount and maturity of its Loans and payments with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition to the accounts and records referred to in <u>Section</u> <u>2.11(a)</u>, each Lender and the Administrative Agent shall maintain in accordance with its usual practice accounts or records evidencing the purchases and sales by such Lender of participations in Letters of Credit. In the event of any conflict between the accounts and records maintained by the Administrative Agent and the accounts and records of any Lender in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error.

Section 2.12 <u>Payments Generally; Administrative Agent</u><u>'</u><u>s Clawback</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. All payments to be made by the Company shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly provided herein, all payments by the Company hereunder shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, at the Administrative Agent's Office in Dollars and in immediately available funds not later than 2:00 p.m. (New York City time) on the date specified herein. The Administrative Agent will promptly distribute to each Lender its Applicable Percentage (or other applicable share as provided herein) of such payment in like funds as received by wire transfer to such Lender's Lending Office. All payments received by the Administrative Agent after 2:00 p.m. (New York City time) shall be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue. If any payment to be made by the Company shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected on computing interest or fees, as the case may be.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) <u>Funding by Lenders; Presumption by Administrative Agent</u>. Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing of Term Benchmark Loans (or, in the case of any Borrowing of ABR Loans, prior to 12:00 noon on the date of such Borrowing) that such Lender will not make available to the Administrative Agent such Lender's share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with <u>Section</u> <u>2.02</u> (or, in the case of a Borrowing of ABR Loans, that such Lender has made such share available in accordance with and at the time required by <u>Section</u> <u>2.02</u>) and may, in reliance upon such assumption, make available to the Company a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Company severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount in immediately available funds with interest thereon, for each day from and including the date such amount is made available to the Company to but excluding the date of payment to the Administrative Agent, at (A) in the case of a payment to be made by such Lender, the greater of the NYFRB Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation and (B) in the case of a payment to be made by the Company, the interest rate applicable to ABR Loans. If the Company and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period, the Administrative Agent shall promptly remit to the Company the amount of such interest paid by the Company for such period. If such Lender pays its share of the applicable Borrowing to the Administrative Agent, then the amount so paid shall constitute such Lender's Loan included in such Borrowing. Any payment by the Company shall be without prejudice to any claim the Company may have against a Lender that shall have failed to make such payment to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Payments by Company; Presumptions by Administrative Agent</u>. Unless the Administrative Agent shall have received notice from the Company prior to the time at which any payment is due to the Administrative Agent for the account of the Lenders or the L/C Issuers hereunder that the Company will not make such payment, the Administrative Agent may assume that the Company has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Appropriate Lenders or the L/C Issuers, as the case may be, the amount due. In such event, if the Company has not in fact made such payment, then each of the Appropriate Lenders or the L/C Issuers, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or such L/C Issuer, in immediately available funds with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the NYFRB Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.

A notice of the Administrative Agent to any Lender or the Company with respect to any amount owing under this <u>subsection</u> <u>(b)</u> shall be conclusive, absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Failure to Satisfy Conditions Precedent</u>. If any Lender makes available to the Administrative Agent funds for any Loan to be made by such Lender as provided in the foregoing provisions of this <u>Article</u> <u>II</u>, and such funds are not made available to the Company by the Administrative Agent because the conditions to the applicable Credit Extension set forth in <u>Article</u> <u>V</u> are not satisfied or waived in accordance with the terms hereof, the Administrative Agent shall return such funds (in like funds as received from such Lender) to such Lender, without interest.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Obligations of Lenders Several</u>. The obligations of the Lenders hereunder to make Term Loans and Revolving Credit Loans, to fund participations in Letters of Credit and to make payments pursuant to <u>Section</u> <u>10.04(c)</u> are several and not joint. The failure of any Lender to make any Loan, to fund any such participation or to make any payment under <u>Section</u> <u>10.04(c)</u> on any date required hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to so make its Loan, to purchase its participation or to make its payment under <u>Section</u> <u>10.04(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Funding Source</u>. Nothing herein shall be deemed to obligate any Lender to obtain the funds for any Loan in any particular place or manner or to constitute a representation by any Lender that it has obtained or will obtain the funds for any Loan in any particular place or manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Insufficient Funds</u>. If at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal, L/C Borrowings, interest and fees then due hereunder, such funds shall be applied (i) <u>first</u>, toward payment of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) <u>second</u>, toward payment of principal and L/C Borrowings then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal and L/C Borrowings then due to such parties.

Section 2.13 <u>Sharing of Payments by Lenders</u>. If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of (a) Obligations in respect of any of the Facilities due and payable to such Lender hereunder and under the other Loan Documents at such time in excess of its ratable share (according to the proportion of (i) the amount of such Obligations due and payable to such Lender at such time to (ii) the aggregate amount of the Obligations in respect of such Facility due and payable to all Lenders hereunder and under the other Loan Documents at such time) of payments on account of the Obligations in respect of such Facility due and payable to all Lenders hereunder and under the other Loan Documents at such time obtained by all the Lenders at such time or (b) Obligations in respect of such Facility owing (but not due and payable) to such Lender hereunder and under the other Loan Documents at such time in excess of its ratable share (according to the proportion of (i) the amount of such Obligations owing (but not due and payable) to such Lender at such time to (ii) the aggregate amount of the Obligations in respect of such Facility owing (but not due and payable) to all Lenders hereunder and under the other Loan Parties at such time) of payments on account of the Obligations in respect of such Facility owing (but not due and payable) to all Lenders hereunder and under the other Loan Documents at such time obtained by all of the Lenders at such time, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans or other Obligations and subparticipations in L/C Obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of Obligations in respect of the Facilities then due and payable to the Lenders or owing (but not due and payable) to the Lenders, as the case may be, <u>provided</u> that, (i) if any such participations or subparticipations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations or subparticipations shall be rescinded and the purchase price restored to the extent of such recovery, without interest and (ii) the provisions of this Section shall not be construed to apply to (A) any payment made by the Company pursuant to and in accordance with the express terms of this Credit Agreement or (B) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or subparticipations in L/C Obligations to any assignee or participant, other than to the Company or any Subsidiary thereof (as to which the provisions of this Section shall apply).

Each Loan Party consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation or subparticipation pursuant to the foregoing arrangements may exercise against such Loan Party rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of such Loan Party in the amount of such participation or subparticipation.

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Section 2.14 <u>Refinancing Facilities</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon written notice to the Administrative Agent (which shall promptly notify the Lenders), the Company may from time to time elect to refinance any Class of Term Loans, in whole or in part, with one or more new term loan facilities (each, a "<u>Refinancing Term Facility</u>") or any Class of Revolving Credit Loans, in whole or in part, with one or more new revolving credit loan facilities (each, a "<u>Refinancing Revolving Credit Facility</u>") under this Credit Agreement with the consent of the Company, the Administrative Agent (not to be unreasonably withheld or delayed) and the institutions providing such Refinancing Term Facility or Refinancing Revolving Credit Facility or, in the case of any Class of Term Loans, with one or more series of senior unsecured notes or term loans or senior secured first lien notes or term loans or senior secured junior lien (as compared to the Liens securing the Class of Term Loans being refinanced) term loans, in each case, if secured, that will be secured by Liens on the Collateral on a pari passu basis or junior priority basis (as applicable) with the Liens on Collateral securing the Class of Term Loans being refinanced and will be subject to customary intercreditor arrangements reasonably satisfactory the Administrative Agent (any such notes or loans, "<u>Refinancing Equivalent Debt</u>"); <u>provided</u> that (i) except with respect to customary bridge loans, (A) any Refinancing Facility or Refinancing Equivalent Debt does not mature prior to, and no scheduled mandatory commitment reduction in respect thereof shall be required prior to, the maturity date of the Class of Loans or Incremental Loans being refinanced and (B) the maturity date and the weighted average life to maturity of such Refinancing Facility or Refinancing Equivalent Debt shall be no earlier than or shorter than, as the case may be, the maturity date or the remaining weighted average life to maturity of the Class of Loans or Incremental Loans being refinanced, as applicable, (ii) the other terms and conditions of such Refinancing Facility or Refinancing Equivalent Debt (excluding pricing and optional prepayment or redemption terms) are (taken as a whole) no more favorable to the lenders or investors, as applicable, providing such Refinancing Facility or Refinancing Equivalent Debt, as applicable, than those applicable to the Loans or Incremental Loans being refinanced (except for covenants or other provisions applicable only to periods after the Latest Maturity Date), (iii) there shall be no borrower, issuer and/or guarantor under any Refinancing Facility or Refinancing Equivalent Debt other than the Company and/or the Guarantors, as applicable, (iv) the proceeds of any Refinancing Facility or Refinancing Equivalent Debt shall be applied, substantially simultaneously with the incurrence thereof, to the prepayment of outstanding Loans under the facility being refinanced and (v) to the extent secured, any such Refinancing Facility or Refinancing Equivalent Debt shall not be secured by any lien on any asset that does not also secure the Loans. Each such notice shall specify the date on which the Company proposes that the Refinancing Facility shall be made or the Refinancing Equivalent Debt shall be issued, which shall be a date not less than five (5) Business Days (or such shorter period as may be agreed by the Administrative Agent) after the date on which such notice is delivered to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company may approach any Lender or any Eligible Assignee to provide all or a portion of the Refinancing Facilities or Refinancing Equivalent Debt; <u>provided</u> that any Lender offered or approached to provide all or a portion of any Refinancing Facility and/or Refinancing Equivalent Debt may elect or decline, in its sole discretion, to provide a Refinancing Facility or purchase Refinancing Equivalent Debt; subject to the consent of the Administrative Agent (which consent shall not be unreasonably withheld), if such Administrative Agent consent would be required under <u>Section</u> <u>10.06(b)(iii)</u> for an assignment of Loans to such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent and the Lenders hereby consent to the transactions contemplated by this <u>Section</u> <u>2.14</u> (including, for the avoidance of doubt, the payment of interest, fees, amortization or premium in respect of the Refinancing Facilities and Refinancing Equivalent Debt on the terms specified by the Company) and hereby waive the requirements of this Credit Agreement or any other Loan Document that may otherwise prohibit any transaction contemplated by this <u>Section</u> <u>2.14</u>. The Refinancing Facilities shall be established pursuant to an amendment to this Credit Agreement among the Company, the Administrative Agent and the Lenders providing such Refinancing Facilities (a "<u>Refinancing Amendment</u>")

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which shall be consistent with the provisions set forth in this Section. The Refinancing Equivalent Debt shall be established pursuant to an indenture, credit agreement or other definitive documentation which shall be consistent with the provisions set forth in this Section. Notwithstanding anything to the contrary contained in <u>Section</u> <u>10.01</u>, each Refinancing Amendment shall be binding on the Lenders, the Administrative Agent, the Loan Parties party thereto and the other parties hereto without the consent of any other Lender and the Lenders hereby irrevocably authorize the Administrative Agent to enter into amendments to this Credit Agreement and any other documents as may be necessary or appropriate in the reasonable opinion of the Administrative Agent and the Company, to effect the provisions of this <u>Section</u> <u>2.14</u>, including in order to establish new tranches or sub-tranches in respect of the Refinancing Facilities and such technical amendments as may be necessary or appropriate in connection therewith and to adjust the amortization schedule in <u>Section</u> <u>2.07</u> (insofar as such schedule relates to payments due to Lenders of the Loans which are being refinanced with the proceeds of a Refinancing Facility; <u>provided</u> that no such amendment shall reduce the pro rata share of any such payment that would have otherwise been payable to the Lenders, the Loans of which are not refinanced with the proceeds of a Refinancing Facility). The Administrative Agent shall be permitted, and is hereby authorized, to enter into such amendments with the Company to effect the foregoing.

Section 2.15 <u>Incremental</u> <u>Facilities</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Request for an Incremental Facility</u>. At the request of the Company to the Administrative Agent, and without the consent of any Lender, on one or more occasions, (i) an increase in the aggregate principal amount of any existing Term Facility or a separate tranche of term loan commitments and term loans (an "<u>Incremental Term Facility</u>") or (ii) an increase in the Revolving Credit Commitments or a separate tranche of revolving credit commitments and revolving loans (an "<u>Incremental Revolving Credit Facility</u>") may be established under this Credit Agreement; <u>provided</u> that at the time of such request, upon the effectiveness of any Incremental Term Supplement or Incremental Revolving Credit Supplement, as applicable, referred to below, and at the time any Incremental Loan is made (and after giving full pro forma effect to the incurrence thereof and the application of proceeds thereof, and assuming a full drawing thereof), the aggregate principal amount of all Incremental Facilities shall not exceed the Incremental Facility Limit at such time; <u>provided</u>, <u>further</u>, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no Default or Event of Default exists or would exist after giving effect to such Incremental Facility and the Company is in pro forma compliance with the Financial Covenants after giving effect to such Incremental Facility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) each of the representations and warranties made by any Loan Party in or pursuant to the Loan Documents shall be true and correct in all material respects (and in all respects if any such representation and warranty is qualified by materiality) on and as of such date as if made on and as of such date (except to the extent any such representation and warranty expressly relates to an earlier date, in which case it was true and correct in all material respects as of such earlier date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (A) (x) with respect to any Incremental Revolving Credit Facility secured on a junior basis to the Obligations or that is unsecured, the maturity date of any Incremental Revolving Credit Facility shall be no earlier than, and no scheduled mandatory commitment reduction in respect thereof shall be required prior to, 91 days after the Latest Maturity Date and (y) with respect to any Incremental Revolving Credit Facility secured on a pari passu basis with the Obligations or that is unsecured, the maturity date of any Incremental Revolving Credit Facility shall be no earlier than, and no scheduled mandatory commitment reduction in respect thereof shall be required prior to, the Latest Maturity Date and (B) (x) with respect to any Incremental Term Facility secured on a junior basis to the Obligations or that is unsecured, the maturity date of such Incremental Term Facility shall be no earlier than 91 days after the Latest Maturity Date and the weighted average

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life to maturity of any Incremental Term Facility shall be no shorter than 91 days after the remaining weighted average life to maturity of the Initial Term Loans or any other then existing Incremental Term Facility, as applicable and (y) with respect to any Incremental Term Facility secured on a pari passu basis with the Obligations or that is unsecured, the maturity date of such Incremental Term Facility shall be no earlier than the Latest Maturity Date and the weighted average life to maturity of any Incremental Term Facility shall be no shorter than the remaining weighted average life to maturity of the Initial Term Loans or any other then existing Incremental Term Facility, as applicable; <u>provided</u>, that for purposes of this <u>clause (iii)</u>, with respect to maturity for bridge facilities, such maturity may be earlier than that of the Initial Revolving Credit Loans and Initial Term Loans, as applicable, if such maturity is automatically extended upon the initial maturity date to a date not earlier than the maturity date of the Initial Revolving Credit Loans and Initial Term Loans, as applicable (or 91 days after that of the Initial Revolving Credit Loans and Initial Term Loans, as applicable, in the case of any bridge facility secured on a junior basis to the Obligations or that is unsecured) pursuant to customary extension rollover provisions (including by conversion or exchange));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the yield applicable to any Incremental Facility shall be determined by the Company and the applicable lenders providing such Incremental Facility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any Incremental Facility shall be on terms and pursuant to documentation to be agreed upon by the Company and the lenders under such Incremental Facility; <u>provided</u> that (1) except to the extent permitted by <u>clause (iii)</u> and <u>(iv)</u> above, to the extent such terms are not consistent with the terms in respect of the Initial Facilities, they shall be not materially more restrictive, when taken as a whole, to the Loan Parties than those under the Initial Facilities (except for any covenant or other provisions (x) applicable only to periods after the Maturity Date of the Initial Facilities, (y) that are added for the benefit of the Initial Facilities through a conforming amendment, which amendment shall not require the consent of the Administrative Agent or any Lender or (z) are otherwise reasonably acceptable to the Administrative Agent), (2) there shall be no borrower or guarantor in respect of any such Indebtedness that is not (or does not become) the Company or a Guarantor under the Initial Facilities and (3) if secured, such indebtedness shall not be secured by any assets of the Company or its Restricted Subsidiaries that do not constitute Collateral and the proceeds of such Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if any Incremental Facility is secured on a junior lien basis or unsecured, such Incremental Facility shall be documented under separate facility documentation, and in the case of an Incremental Facility that is secured on a junior lien basis, subject to customary intercreditor arrangements to be mutually agreed between the Company and the Administrative Agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any Incremental Facility incurred hereunder shall be in a minimum amount of $5,000,000 or a larger multiple of $1,000,000;

<u>provided</u> that, with respect to a Limited Condition Transaction, the requirements of (x) the preceding <u>clause (i)</u>, shall be modified as provided in <u>Section</u> <u>1.10</u> of this Credit Agreement and (y) the preceding <u>clause (ii)</u>, shall be subject to customary "Sungard" limitations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Effectiveness of an Incremental Facility</u>. In connection with (i) the establishment of any Incremental Term Facility, the Company, the Administrative Agent and the Incremental Term Lenders thereunder shall enter into a supplement to this Credit Agreement (an "<u>Incremental Term Supplement</u>"), or (ii) the establishment of any Incremental Revolving Credit Facility, the Company, the Administrative Agent and the Incremental Revolving Credit Lenders thereunder shall enter into a supplement to this Credit Agreement (an "<u>Incremental Revolving Credit Supplement</u>"), in each case, in form and substance satisfactory to the Company, the Administrative Agent and the Incremental Lenders thereunder, duly

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completed, and with such provisions (including changes to the provisions set forth therein) as may be agreed to by the Company and the Incremental Lenders (<u>provided</u> that notwithstanding anything to the contrary set forth in this sentence, in no event shall (x) any form of Incremental Term Supplement be changed to provide any additional, preferential or non-pro rata mandatory repayment or prepayment rights to any of Incremental Term Lenders thereunder (unless such Incremental Term Facility is to receive less than its ratable share of any mandatory repayment or prepayment) or (y) any form of Incremental Revolving Credit Supplement be changed to provide any additional, preferential or non-pro rata mandatory repayment or prepayment rights to any of Incremental Revolving Credit Lenders thereunder (unless such Incremental Revolving Credit Facility is to receive less than its ratable share of any mandatory repayment, prepayment or termination of commitments). Upon the effective date of the applicable Incremental Supplement, each lender thereunder shall become an Incremental Lender hereunder and such Incremental Supplement shall be deemed part of this Credit Agreement for all purposes thereafter. Each Incremental Supplement may, without the consent of any Lender (other than the applicable Incremental Lenders thereunder and the Administrative Agent), effect such amendments to this Credit Agreement and the other Loan Documents as may be necessary or appropriate, in the reasonable opinion of the Administrative Agent and the Company, to effect the provisions of this <u>Section</u> <u>2.15</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Incremental Term Lenders</u>. The Company shall be entitled to elect, in its own discretion, Incremental Term Lenders from among the existing Lenders, and any additional banks, financial institutions and other institutional lenders or investors, subject to the consent of the Administrative Agent (which consent shall not be unreasonably withheld), if such Administrative Agent consent would be required under <u>Section</u> <u>10.06(b)(iii)</u> for an assignment of Loans to such Incremental Term Lender. Notwithstanding the foregoing, no Lender shall be required to provide any Incremental Term Loans

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Incremental Revolving Credit Lenders</u>. The Revolving Credit Lenders shall initially have the right, but not the obligation, to commit up to their pro rata portion of any Incremental Revolving Credit Facility; <u>provided</u> that, if after giving full pro forma effect to such proposed Incremental Revolving Credit Facility (assuming that the full amount of the Initial Revolving Credit Facility, the full amount of each then existing Incremental Revolving Credit Facility, and the full amount of the proposed Incremental Revolving Credit Facility, have all been drawn), the Company would be in pro forma compliance with the Financial Covenants, then such Incremental Revolving Credit Commitments may, at the election of the Company, be offered to new lenders, subject to the consent of the Administrative Agent (which consent shall not be unreasonably withheld), if such Administrative Agent consent would be required under <u>Section</u> <u>10.06(b)(iii)</u> for an assignment of Loans or Commitments to such Incremental Revolving Credit Lender.

Section 2.16 <u>Defaulting</u> <u>Lenders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Defaulting Lender Adjustments</u>. Notwithstanding anything to the contrary contained in this Credit Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by applicable law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Waivers and Amendments</u>. Such Defaulting Lender's right to approve or disapprove any amendment, waiver or consent with respect to this Credit Agreement shall be restricted as set forth in the definition of Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Defaulting Lender Waterfall</u>. Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to <u>Article VIII</u> or otherwise) shall be applied at such time or times as may be determined by the Administrative Agent as follows: *first*, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; *second*, to the payment on a pro rata basis of any amounts owing by such Defaulting Lender to any L/C Issuer hereunder; *third*, to Cash Collateralize the L/C Issuers' Fronting Exposure with respect to such Defaulting Lender in accordance with

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 <u>Section</u> <u>2.03(g)</u>; *fourth*, as the Company may request (so long as no Default or Event of Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Credit Agreement, as determined by the Administrative Agent; *fifth*, if so determined by the Administrative Agent and the Company, to be held in a deposit account and released pro rata in order to (x) satisfy such Defaulting Lender's potential future funding obligations with respect to Loans under this Credit Agreement and (y) Cash Collateralize the L/C Issuers' future Fronting Exposure with respect to such Defaulting Lender with respect to future Letters of Credit issued under this Credit Agreement, in accordance with <u>Section</u> <u>2.03(g)</u>; *sixth*, to the payment of any amounts owing to the Lenders or the L/C Issuers as a result of any judgment of a court of competent jurisdiction obtained by any Lender against such Defaulting Lender or any L/C Issuer as a result of such Defaulting Lender's breach of its obligations under this Credit Agreement; *seventh*, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Company as a result of any judgment of a court of competent jurisdiction obtained by the Company against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Credit Agreement; and *eighth*, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; <u>provided</u> that if (x) such payment is a payment of the principal amount of any Loans or L/C Advances in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made or the related Letters of Credit were issued at a time when the conditions set forth in <u>Section</u> <u>5.01</u>, <u>5.02</u> or in the applicable Incremental Supplement, as the case may be, were satisfied or waived, such payment shall be applied solely to pay the Loans of, and L/C Advances owed to, all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of, or L/C Advances owed to, such Defaulting Lender until such time as all Loans and funded and unfunded participations in L/C Obligations are held by the Lenders pro rata in accordance with the Commitments under the applicable Facility without giving effect to <u>Section</u> <u>2.16(a)(iv)</u>. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this <u>Section</u> <u>2.16(a)(ii)</u> shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Certain Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Each Defaulting Lender shall be entitled to receive Letter of Credit Fees for any period during which that Lender is a Defaulting Lender only to the extent allocable to its Applicable Percentage of the stated amount of Letters of Credit for which it has provided Cash Collateral pursuant to <u>Section</u> <u>2.03(g).</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) With respect to any Letter of Credit Fee not required to be paid to any Defaulting Lender pursuant to <u>clause (A)</u> above, the Company shall (x) pay to each Non-Defaulting Lender that portion of any such fee otherwise payable to such Defaulting Lender with respect to such Defaulting Lender's participation in L/C Obligations that has been reallocated to such Non-Defaulting Lender pursuant to <u>clause (iv)</u> below, (y) pay to each L/C Issuer the amount of any such fee otherwise payable to such Defaulting Lender to the extent allocable to such L/C Issuer's Fronting Exposure to such Defaulting Lender, and (z) not be required to pay the remaining amount of any such fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Reallocation of Participations to Reduce Fronting Exposure</u>. All or any part of such Defaulting Lender's participation in L/C Obligations shall be reallocated among the Non-Defaulting Lenders in accordance with their respective Applicable Percentages (calculated without regard to such Defaulting Lender's Commitment) but only to the extent that (x) the conditions set forth in <u>Section</u> <u>5.02</u> are satisfied at the time of such reallocation (and, unless the Company shall have otherwise notified the Administrative Agent at such time, the Company shall be deemed to have represented and warranted that such conditions are satisfied at such time), and (y) such reallocation does not cause the aggregate Revolving Credit Exposure of any Non-Defaulting Lender to exceed such Non-Defaulting Lender's Revolving Credit

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Commitment. No reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender's increased exposure following such reallocation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Cash Collateral</u>. If the reallocation described in <u>clause (iv)</u> above cannot, or can only partially, be effected, the Company shall, without prejudice to any right or remedy available to it hereunder or under law, Cash Collateralize the L/C Issuers' Fronting Exposure in accordance with the procedures set forth in <u>Section</u> <u>2.03(g)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Defaulting Lender Cure</u>. If the Company, the Administrative Agent and each L/C Issuer agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any Cash Collateral), that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans and funded and unfunded participations in Letters of Credit to be held pro rata by the Lenders in accordance with the Commitments under the applicable Facility (without giving effect to <u>Section</u> <u>2.16(a)(iv)</u>), whereupon such Lender will cease to be a Defaulting Lender; <u>provided</u> that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Company while that Lender was a Defaulting Lender; and <u>provided</u>, <u>further</u>, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>New Letters of Credit</u>. So long as any Lender is a Defaulting Lender, no L/C Issuer shall be required to issue, extend, renew or increase any Letter of Credit unless it is satisfied that it will have no Fronting Exposure after giving effect thereto.

Section 2.17 <u>Extension of Maturity Date</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company may, by delivering an Extension Request to the Administrative Agent (who shall promptly deliver a copy to each of the Lenders), in advance of the applicable Maturity Date with respect to any Facility, as in effect at such time (an "<u>Existing Maturity Date</u>") for such Facility, request that the Lenders extend such Existing Maturity Date (each, an "<u>Extension</u>") to any date that it shall select (such date, the "<u>Extended Maturity Date</u>"; any Term Facility so extended, an "<u>Extended Term Facility</u>," any Revolving Credit Facility so extended, an "<u>Extended Revolving Credit Facility</u>" and, together with any Extended Term Facility, an "<u>Extended Facility</u>"; and any Revolving Credit Commitments so extended, "<u>Extended Revolving Credit Commitments</u>"). Each Lender, acting in its sole discretion, shall, by written notice to the Administrative Agent given not later than the date specified by the Company in such Extension Request, or if such date is not a Business Day, the immediately following Business Day (the "<u>Response Date</u>"), advise the Administrative Agent in writing whether or not such Lender agrees to the requested extension. Each Lender that advises the Administrative Agent that it will not extend an Existing Maturity Date is referred to herein as a "<u>Non-Extending Lender</u>"; <u>provided</u>, that any Lender that does not advise the Administrative Agent of its consent to such requested extension by the Response Date and any Lender that is a Defaulting Lender on the Response Date shall be deemed to be a Non-Extending Lender. The Administrative Agent shall notify the Company, in writing, of the Lenders' elections promptly following the Response Date. The election of any Lender to agree to such an Extension shall not obligate any other Lender to so agree.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If, by the Response Date, any Lenders shall have agreed to extend an Existing Maturity Date (each such consenting Lender, an "<u>Extending Lender</u>"), then effective as of such Existing Maturity Date, the Maturity Date in respect of the applicable Facility for such Extending Lenders only shall be extended to the Extended Maturity Date (subject to satisfaction of the conditions set forth in <u>Section</u> <u>2.17(d)</u>). In the event of any Extension, (i) the outstanding principal balance of all Loans and other amounts payable hereunder, in each case in respect of the applicable Facility, to any Non-Extending Lender shall become due and payable on the applicable Existing Maturity Date and (ii) with respect to the Extension of the Maturity Date in respect of any Revolving Credit Facility, the Revolving Credit Commitment of each Non-Extending Lender shall terminate on the applicable Existing Maturity Date in effect for such Non-Extending Lender prior to such Extension and, subject to Section 2.17(c) below, the total Revolving Credit Commitments for the applicable Revolving Credit Facility shall be reduced by the Revolving Credit Commitments of the Non-Extending Lenders so terminated for such Revolving Credit Facility on such Existing Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If (and only if), by the Response Date, Lenders holding Loans and/or Commitments that aggregate more than 50% of the total outstanding Loans and Commitments shall constitute Extending Lenders, then the Company shall have the right on or before the applicable Existing Maturity Date, at its own expense, to require any Non-Extending Lender to transfer and assign without recourse (in accordance with and subject to the restrictions contained in <u>Section</u> <u>10.06</u>) all its interests, rights (other than its rights to payments pursuant to <u>Section</u> <u>3.01</u>, <u>Section</u> <u>3.04</u>, <u>Section</u> <u>3.05</u> or <u>Section</u> <u>10.04</u> arising prior to the effectiveness of such assignment) and obligations under this Credit Agreement with respect to the applicable Facility to one or more banks or other financial institutions identified to the Non-Extending Lender by the Company, which may include any existing Lender (each a "<u>Replacement Lender</u>"); <u>provided</u> that (i) such Replacement Lender, if not already a Lender hereunder, shall be subject to the approval of the Administrative Agent (and, with respect to a Replacement Lender under a Revolving Credit Facility, each L/C Issuer) (such approvals to not be unreasonably withheld or conditioned) to the extent the consent of the Administrative Agent (or the L/C Issuers, if applicable) would be required to effect an assignment under <u>Section</u> <u>10.06(b)</u>, (ii) such assignment shall become effective as of a date specified by the Company (which shall not be later than the applicable Existing Maturity Date in effect for such Non-Extending Lender prior to the effective date of the requested extension) and (iii) each Replacement Lender shall pay to such Non-Extending Lender in immediately available funds on the effective date of such assignment the principal of and interest accrued to the date of payment on the outstanding principal amount Loans made by it hereunder and all other amounts accrued and unpaid for its account or otherwise owed to it hereunder on such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) As a condition precedent to each such Extension of an Existing Maturity Date pursuant to <u>Section</u> <u>2.17(b)</u>, the Company shall (i) unless waived by the Extending Lenders, deliver to the Administrative Agent a certificate of the Company dated as of the applicable Existing Maturity Date, signed by a Responsible Officer of the Company certifying that, as of such date, both before and immediately after giving effect to such Extension, (A) the representations and warranties of the Company set forth in this Credit Agreement shall be true and correct in all material respects and as of such date to the same extent as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, in which case they were true and correct, in all material respects, as of such earlier date; <u>provided</u> that any representation and warranty that is qualified as to "materiality", "Material Adverse Effect" or similar language shall be true and correct in all respects on such date or on such earlier date, as the case may be (after giving effect to such qualification); and (B) no Default or Event of Default shall have occurred and be continuing and (ii) in each case, on the Existing Maturity Date, first make such prepayments of the outstanding Loans and second provide such Cash Collateral (or make such other arrangements reasonably satisfactory to the applicable L/C Issuer) with respect to the outstanding Letters of Credit as shall be required such that, after giving effect to the termination of the Commitments of the Non-Extending Lenders pursuant to <u>Section</u> <u>2.17(b)</u> and any assignment pursuant to <u>Section</u> <u>2.17(c)</u>, the aggregate Revolving Credit Exposure less the face amount of any Letter of Credit supported by any such Cash Collateral (or other reasonably satisfactory arrangements) so provided does not exceed the aggregate amount of Commitments being extended.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The terms of each Extended Facility (including the conditions precedent to such extension) shall be determined by the Administrative Agent, the Company and the applicable Extending Lenders and set forth in an amendment to this Credit Agreement (an "<u>Extension Amendment</u>"); <u>provided</u>, that (i) the final maturity date of any Extended Facility shall be no earlier than the Existing Maturity Date for such Facility, (ii) in respect of an Extension of a Term Facility, the weighted average life to maturity of the Extended Facility shall be no shorter than the weighted average life to maturity of the Term Facility being extended, (iii) (A) there shall be no scheduled amortization of the loans or reductions of commitments under any Extended Revolving Credit Facility and (B) any scheduled amortization with respect to an Extended Term Facility shall, until the Existing Maturity Date for such Term Facility, be in amounts equal to or less (but not greater) than the scheduled amortization under the Term Facility being extended, (iv) any Extended Facility shall rank pari passu in right of payment and with respect to security with the Facilities not being extended, and the borrower and guarantors of the Extended Facility shall be the same as the borrower and guarantors with respect to the Facilities not being extended, (v) the interest rate margin, rate floors, fees, original issue discount and premium applicable to any Extended Facility shall be determined by the Company and the applicable Extending Lenders and (vi) (A) any Extended Term Facility may participate on a pro rata or less than pro rata (but not greater than pro rata) basis in mandatory prepayments with the Term Facility being extended and (B) borrowing and prepayment under any Extended Revolving Credit Facility, or reductions of Extended Revolving Credit Commitments, and participations in Letters of Credit, shall be on a pro rata basis with the Revolving Credit Loans or Revolving Credit Commitments not being extended (other than upon the maturity of the non-extended Revolving Credit Loans and Revolving Credit Commitments). For the avoidance of doubt, (i) no consent of any Lender (other than the existing Lenders participating in the Extension) shall be required for any Extension pursuant to this <u>Section</u> <u>2.17</u> and (ii) neither the operation of this <u>Section</u> <u>2.17</u> in accordance with its terms nor any Extension Amendment shall constitute an amendment subject to <u>Section</u> <u>10.01</u>.

**ARTICLE III** 

**TAXES, YIELD PROTECTION AND ILLEGALITY** 

Section 3.01 <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Payments Free of Taxes</u>. Any and all payments by or on account of any obligation of the Company hereunder or under any other Loan Document shall be made free and clear of and without reduction or withholding for any Taxes, <u>provided</u> that if the Company shall be required by applicable law to withhold or deduct any Taxes from such payments, then (i) if such Taxes are Indemnified Taxes, the sum payable shall be increased as necessary so that after making all required withholdings or deductions (including withholdings or deductions applicable to additional sums payable under this Section) the Administrative Agent, any Lender or any L/C Issuer, as the case may be, receives an amount equal to the sum it would have received had no such withholdings or deductions been made, (ii) the Company shall make such withholdings or deductions and (iii) the Company shall timely pay the full amount withheld or deducted to the relevant Governmental Authority in accordance with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payment of Other Taxes by the Company</u>. Without limiting the provisions of <u>subsection</u> <u>(a)</u> above, the Company shall timely pay to the relevant Governmental Authority in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Indemnification by the Company</u>. The Company shall indemnify the Administrative Agent, each Lender and each L/C Issuer, within 10 days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) paid by, or required to be withheld or deducted from a payment to, the Administrative Agent, such Lender or such L/C Issuer, as the case may be, and any penalties, interest and reasonable

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expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority; <u>provided</u> that the Company shall not indemnify the Administrative Agent, any Lender or any L/C Issuer for any penalties or interest that are imposed solely as a result of gross negligence or willful misconduct of the Administrative Agent, any Lender or any L/C Issuer. A certificate as to the amount of such payment or liability delivered to the Company by a Lender or an L/C Issuer (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender or an L/C Issuer, shall be conclusive absent manifest error. If, in the reasonable discretion of the Company, any Indemnified Taxes are incorrectly or not legally imposed or asserted by the relevant Governmental Authority, the Administrative Agent, each Lender or each L/C Issuer, as the case may be, shall, at the expense of the Company, use commercially reasonable efforts to cooperate with the Company to recover and promptly remit such Indemnified Taxes to the Company in accordance with <u>subsection</u> <u>(g)</u> of this Section. Nothing contained herein shall derogate from the right of any Lender, any L/C Issuer or the Administrative Agent to arrange its tax affairs in whatever manner it sees fit nor shall require any Lender, any L/C Issuer or the Administrative Agent to disclose any information relating to its tax affairs that it deems confidential other than as required under <u>Section</u> <u>3.01(f)</u>. For the avoidance of doubt, the Administrative Agent, a Lender or an L/C Issuer may not recover more than once with respect to the same amount of Taxes to which the Administrative Agent, such Lender or such L/C Issuer is entitled to indemnification under this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Indemnification by the Lenders</u>. Each Lender and each L/C Issuer shall severally indemnify the Administrative Agent, within 10 days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender or L/C Issuer, as the case may be (but only to the extent that the Company has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Company to do so), (ii) any Taxes attributable to such Lender's or L/C Issuer's failure to comply with the provisions of <u>Section</u> <u>10.06(d)</u> relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender or L/C Issuer, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender or L/C Issuer by the Administrative Agent shall be conclusive absent manifest error. Each Lender and each L/C Issuer hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender or L/C Issuer under any Loan Document or otherwise payable by the Administrative Agent to the Lender or L/C Issuer from any other source against any amount due to the Administrative Agent under this <u>paragraph (d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Evidence of Payments</u>. As soon as practicable after any payment of Taxes by the Company to a Governmental Authority pursuant to this <u>Section</u> <u>3.01</u>, the Company shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Status of Lenders</u>. Any Lender that is entitled to an exemption from or reduction of withholding tax with respect to payments hereunder or under any other Loan Document shall deliver to the Company (with a copy to the Administrative Agent), at the time or times prescribed by applicable law or reasonably requested by the Company or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Company or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if requested by the Company or the Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Company or the Administrative Agent as will enable the Company or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the

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preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in <u>paragraphs (f)(i),</u> <u>(f)(ii)</u> and <u>(f)(iv)</u> of this Section) shall not be required if in the Lender's reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

Without limiting the generality of the foregoing, if the Company is resident for tax purposes in the United States,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Lender that is resident for tax purposes in the United States shall deliver to the Company and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Credit Agreement (and from time to time thereafter upon the reasonable request of the Company or the Administrative Agent) duly executed copies of Internal Revenue Service Form W-9 certifying that such Lender is exempt from United States federal backup withholding tax,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Foreign Lender shall deliver to the Company and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Credit Agreement (and from time to time thereafter upon the reasonable request of the Company or the Administrative Agent, but only if such Foreign Lender is legally entitled to do so), whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) duly executed copies of Internal Revenue Service Form W-8BEN or Form W-8BEN-E claiming eligibility for benefits of an income tax treaty to which the United States is a party,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) duly executed copies of Internal Revenue Service Form W-8ECI,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under section 881(c) of the Code, (x) a certificate to the effect that such Foreign Lender is not (1) a "bank" within the meaning of section 881(c)(3)(A) of the Code, (2) a "10 percent shareholder" of the Company within the meaning of section 871(h)(3)(B) of the Code, or (3) a "controlled foreign corporation" described in section 881(c)(3)(C) of the Code and (y) duly executed copies of Internal Revenue Service Form W-8BEN or Form W-8BEN-E, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) to the extent a Foreign Lender is not the beneficial owner, duly executed copies of Internal Revenue Service Form W-8IMY, accompanied by Internal Revenue Service Form W-8ECI, Form W-8BEN, Form W-9, and/or other certification documents from each beneficial owner, as applicable, <u>provided</u> that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a certificate on behalf of each such direct and indirect partner, to the effect that such direct or indirect partner is not (1) a "bank" within the meaning of section 881(c)(3)(A) of the Code, (2) a "10 percent shareholder" of the Company within the meaning of section 871(h)(3)(B) of the Code, or (3) a "controlled foreign corporation" described in section 881(c)(3)(C) of the Code

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Company and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Credit Agreement (and from time to time thereafter upon the reasonable request of the Company or the Administrative Agent), duly executed copies of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in United States federal withholding tax, together with such supplementary documentation as may be prescribed by applicable law to permit the Company or the Administrative Agent to determine the withholding or deduction required to be made, and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if a payment made to a Lender under any Loan Document would be subject to United States federal withholding tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Company and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Company or the Administrative Agent such documentation prescribed by applicable law (including as prescribed by section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Company or the Administrative Agent as may be necessary for the Company and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for the purposes of this <u>clause (iv)</u>, "FATCA" shall include any amendments made to FATCA after the date of this Credit Agreement.

Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Company and the Administrative Agent in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Treatment of Certain Refunds</u>. If any party determines, in its good faith discretion, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section, it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund), <u>provided</u> that such indemnifying party, upon the request of such indemnified party, agrees to repay the amount (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to such indemnified party in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this <u>paragraph (g)</u>, in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this <u>paragraph (g)</u>, the payment of which would place the indemnified party in a less favorable net after-tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This subsection shall not be construed to require any indemnified party to make available its tax returns (or any other information relating to its taxes that it deems confidential) to the indemnifying party or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Survival</u>. Each party's obligations under this Section shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) For purposes of this Section 3.01, the term "applicable law" includes FATCA.

Section 3.02 <u>Illegality</u>. If any Lender determines that any Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender or its applicable Lending Office to make, maintain or fund Term Benchmark Loans or RFR Loans, or to determine or charge interest rates based upon the Adjusted Term SOFR or the Adjusted Daily Simple SOFR, or any Governmental Authority has imposed material restrictions on the authority of such Lender to purchase or sell, or to take deposits of, Dollars in the applicable interbank market, then, on notice thereof by such Lender to the Company through the Administrative Agent, any obligation of such Lender to make or continue Term Benchmark Loans or

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RFR Loans or to convert ABR Loans to Term Benchmark Loans or RFR Loans shall be suspended until such Lender notifies the Administrative Agent and the Company that the circumstances giving rise to such determination no longer exist. Upon receipt of such notice, the Company shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all Term Benchmark Loans and RFR Loans of such Lender to ABR Loans, and pay any amounts payable to such Lender under <u>Section</u> <u>3.04(e)</u>, either on the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such Loans to such day, or immediately, if such Lender may not lawfully continue to maintain such Loans. Upon any such prepayment or conversion, the Company shall also pay accrued interest on the amount so prepaid or converted.

Section 3.03 <u>Alternate Rate of Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to <u>clauses (b)</u>, <u>(c)</u>, <u>(d)</u>, <u>(e)</u> and <u>(f)</u> of this <u>Section</u> <u>3.03</u>, if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Administrative Agent determines (which determination shall be conclusive absent manifest error) (A) prior to the commencement of any Interest Period for a Term Benchmark Borrowing, that adequate and reasonable means do not exist for ascertaining the Adjusted Term SOFR (including because the Term SOFR Reference Rate is not available or published on a current basis), for such Interest Period or (B) at any time, if applicable, that adequate and reasonable means do not exist for ascertaining the applicable Adjusted Daily Simple SOFR; <u>provided</u> that no Benchmark Transition Event shall have occurred at such time; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Administrative Agent is advised by the Required Lenders that (A) prior to the commencement of any Interest Period for a Term Benchmark Borrowing, the Adjusted Term SOFR or the Term SOFR, as applicable, for such Interest Period will not adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or its Loan) included in such Borrowing for such Interest Period or (B) at any time, if applicable, the Adjusted Daily Simple SOFR or the Daily Simple SOFR, as applicable, will not adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or its Loan) included in such Borrowing;

then the Administrative Agent shall give notice thereof to the Company and the Lenders by telephone, telecopy or electronic mail as promptly as practicable thereafter and, until the Administrative Agent notifies the Company and the Lenders that the circumstances giving rise to such notice no longer exist, (A) any Committed Loan Notice that requests the conversion to, or continuation of, a Term Benchmark Borrowing shall be ineffective and (B) if any Committed Loan Notice requests a Term Benchmark Borrowing, such Borrowing shall be made as (A) an RFR Borrowing so long as the Adjusted Daily Simple SOFR is not also the subject of <u>Section</u> <u>3.03(a)(i)</u> or <u>(ii)</u> above or (B) an ABR Borrowing if the Adjusted Daily Simple SOFR also is the subject of <u>Section</u> <u>3.03(a)(i)</u> or <u>(ii)</u> above; <u>provided</u> that if the circumstances giving rise to such notice affect only one Type of Borrowings, then all other Types of Borrowings shall be permitted. Furthermore, if any Term Benchmark Loan or RFR Loan is outstanding on the date of the Company's receipt of such notice from the Administrative Agent referred to in this <u>Section</u> <u>3.03(a)</u> with respect to a Relevant Rate applicable to such Term Benchmark Loan or RFR Loan, then until (x) the Administrative Agent notifies the Company and the Lenders that the circumstances giving rise to such notice no longer exist, and (y) the Borrower delivers a request for a Borrowing in accordance with the terms of <u>Section</u> <u>2.02</u>, (A) any Term Benchmark Loan shall on the last day of the Interest Period applicable to such Loan, be converted by the Administrative Agent to, and shall constitute, (1) an RFR Borrowing so long as the Adjusted Daily Simple SOFR is not also the subject of <u>Section</u> <u>3.03(a)(i)</u> or <u>(ii)</u> above or (2) an ABR Borrowing if the Adjusted Daily Simple SOFR also is the subject of <u>Section</u> <u>3.03(a)(i)</u> or <u>(ii)</u> above, and (B) any RFR Loan shall on and from such day be converted by the Administrative Agent to, and shall constitute, an ABR Loan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary herein or in any other Loan Document (and any Swap Contract shall be deemed not to be a "Loan Document" for purposes of this <u>Section</u> <u>3.03</u>), if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, then (x) if a Benchmark Replacement is determined in accordance with <u>clause (a)</u> of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of such Benchmark setting and subsequent Benchmark settings without any amendment to, or further action or consent of any other party to, this Credit Agreement or any other Loan Document and (y) if a Benchmark Replacement is determined in accordance with <u>clause (b)</u> of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of any Benchmark setting at or after 5:00 p.m., New York City time, on the fifth (5th) Business Day after the date notice of such Benchmark Replacement is provided to the Lenders without any amendment to, or further action or consent of any other party to, this Credit Agreement or any other Loan Document so long as the Administrative Agent has not received, by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary herein or in any other Loan Document, the Administrative Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Credit Agreement or any other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent will promptly notify the Company and the Lenders of (i) any occurrence of a Benchmark Transition Event and its related Benchmark Replacement Date, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes, (iv) the removal or reinstatement of any tenor of a Benchmark pursuant to <u>clause (e)</u> below and (v) the commencement or conclusion of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this <u>Section</u> <u>3.03</u>, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party to this Credit Agreement or any other Loan Document, except, in each case, as expressly required pursuant to this <u>Section</u> <u>3.03</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything to the contrary herein or in any other Loan Document, at any time (including in connection with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate (including the Term SOFR) and either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion or (B) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is or will be no longer representative, then the Administrative Agent may modify the definition of "Interest Period" for any Benchmark settings at or after such time to remove such unavailable or non-representative tenor and (ii) if a tenor that was removed pursuant to <u>clause (i)</u> above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is or will no longer be representative for a Benchmark (including a Benchmark Replacement), then the Administrative Agent may modify the definition of "Interest Period" for all Benchmark settings at or after such time to reinstate such previously removed tenor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Upon the Company's receipt of notice of the commencement of a Benchmark Unavailability Period, the Company may revoke any request for a Term Benchmark Borrowing of, conversion to or continuation of Term Benchmark Loans to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Company will be deemed to have converted any such request into a request for a Borrowing of or conversion to (i) an RFR Borrowing so long as the Adjusted Daily Simple SOFR is not the subject of a Benchmark Transition Event or (ii) an ABR Borrowing if the Adjusted Daily Simple SOFR is the subject of a Benchmark Transition Event. During any Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of ABR based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of ABR. Furthermore, if any Term Benchmark Loan or RFR Loan is outstanding on the date of the Company's receipt of notice of the commencement of a Benchmark Unavailability Period with respect to a Relevant Rate applicable to such Term Benchmark Loan or RFR Loan, then until such time as a Benchmark Replacement is implemented pursuant to this <u>Section</u> <u>3.03</u>, (A) any Term Benchmark Loan shall on the last day of the Interest Period applicable to such Loan, be converted by the Administrative Agent to, and shall constitute, (1) an RFR Loan so long as the Adjusted Daily Simple SOFR is not the subject of a Benchmark Transition Event or (2) an ABR Loan if the Adjusted Daily Simple SOFR is the subject of a Benchmark Transition Event on such day and (B) any RFR Loan shall on and from such day be converted by the Agent to, and shall constitute, an ABR Loan.

Section 3.04 <u>Increased</u> <u>Costs; Reserves on Term Benchmark Loans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Increased Costs Generally</u>. If any Change in Law shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender or any L/C Issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject any Lender or any L/C Issuer to any tax of any kind whatsoever with respect to this Credit Agreement, any Letter of Credit, any participation in a Letter of Credit or any Term Benchmark Loan or RFR Loan made by it, or change the basis of taxation of payments to such Lender or such L/C Issuer in respect thereof (except for Indemnified Taxes and Excluded Taxes); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) impose on any Lender or any L/C Issuer or the applicable interbank market any other condition, cost or expense affecting this Credit Agreement or Term Benchmark Loans or RFR Loans made by such Lender or any Letter of Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender of making, continuing, converting to or maintaining any Term Benchmark Loan or RFR Loan (or of maintaining its obligation to make any such Loan), or to increase the cost to such Lender or such L/C Issuer of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender or such L/C Issuer hereunder (whether of principal, interest or any other amount) then, upon request of such Lender or such L/C Issuer, the Company will pay to such Lender or such L/C Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or such L/C Issuer, as the case may be, for such additional costs incurred or reduction suffered. Notwithstanding the foregoing, a Lender or an L/C Issuer shall be entitled to request compensation for increased costs or expenses described in this <u>Section</u> <u>3.04(a)</u> only to the extent it is the general practice or policy of such Lender or such L/C Issuer to request such compensation from other borrowers under comparable facilities under similar circumstances; <u>provided</u>, that in no event shall such Lender or such L/C Issuer be required to disclose any confidential or proprietary

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information regarding any such other borrower or comparable facility. For the avoidance of doubt, if a Lender or an L/C Issuer recovers an amount under this Section, such Lender or such L/C Issuer may not recover the same amount under <u>Section</u> <u>3.01</u>; similarly, if a Lender or an L/C Issuer recovers an amount under <u>Section</u> <u>3.01</u>, such Lender or such L/C Issuer may not recover the same amount under this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Capital Requirements</u>. If any Lender or any L/C Issuer determines that any Change in Law affecting such Lender or such L/C Issuer or any Lending Office of such Lender or such Lender's or such L/C Issuer's holding company, if any, regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender's or such L/C Issuer's capital or on the capital of such Lender's or such L/C Issuer's holding company, if any, as a consequence of this Credit Agreement, the Commitments of such Lender or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by such L/C Issuer, to a level below that which such Lender or such L/C Issuer or such Lender's or such L/C Issuer's holding company could have achieved but for such Change in Law (taking into consideration such Lender's or such L/C Issuer's policies and the policies of such Lender's or such L/C Issuer's holding company with respect to capital adequacy and liquidity), then from time to time the Company will pay to such Lender or such L/C Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or such L/C Issuer or such Lender's or such L/C Issuer's holding company for any such reduction suffered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Certificates for Reimbursement</u>. A certificate of a Lender or an L/C Issuer setting forth the amount or amounts necessary to compensate such Lender or such L/C Issuer or such Lender's or such L/C Issuer's holding company, as the case may be, as specified in <u>subsection</u> <u>(a)</u> or <u>(b)</u> of this Section and delivered to the Company shall be conclusive absent manifest error. The Company shall pay such Lender or such L/C Issuer, as the case may be, the amount shown as due on any such certificate within 10 days after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Delay in Requests</u>. Failure or delay on the part of any Lender or any L/C Issuer to demand compensation pursuant to the foregoing provisions of this Section shall not constitute a waiver of such Lender's or such L/C Issuer's right to demand such compensation, <u>provided</u> that the Company shall not be required to compensate a Lender or an L/C Issuer pursuant to the foregoing provisions of this Section for any increased costs incurred or reductions suffered more than nine months prior to the date that such Lender or such L/C Issuer, as the case may be, notifies the Company of the Change in Law giving rise to such increased costs or reductions and of such Lender's or such L/C Issuer's intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period referred to above shall be extended to include the period of retroactive effect thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Reserves on Term Benchmark Loans and RFR Loans</u>. The Company shall pay to each Lender, as long as such Lender shall be required to maintain reserves with respect to liabilities or assets consisting of or including funds or deposits other than ABR funds or deposits, additional interest on the unpaid principal amount of each Term Benchmark Loan and RFR Loan equal to the actual costs of such reserves allocated to such Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive), which shall be due and payable on each date on which interest is payable on such Loan, <u>provided</u> that the Company shall have received at least 10 days' prior notice (with a copy to the Administrative Agent) of such additional interest from such Lender. If a Lender fails to give notice 10 days prior to the relevant Interest Payment Date, such additional interest shall be due and payable 10 days from receipt of such notice.

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Section 3.05 <u>Compensation for Losses</u>. Upon demand of any Lender (with a copy to the Administrative Agent) from time to time, the Company shall promptly compensate such Lender for and hold such Lender harmless from any loss, cost or expense incurred by it as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any continuation, conversion, payment or prepayment of any Loan other than a ABR Loan on a day other than the last day of the Interest Period for such Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any failure by the Company (for a reason other than the failure of such Lender to make a Loan) to prepay, borrow, continue or convert any Loan other than a ABR Loan on the date or in the amount notified by the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any assignment of a Term Benchmark Loan or RFR Loan on a day other than the last day of the Interest Period therefor as a result of a request by the Company pursuant to <u>Section</u> <u>10.12</u>;

including any loss of anticipated profits and any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the deposits from which such funds were obtained. The Company shall also pay any customary administrative fees charged by such Lender in connection with the foregoing.

For purposes of calculating amounts payable by the Company to the Lenders under this <u>Section</u> <u>3.05</u>, each Lender shall be deemed to have funded each Term Benchmark Loan and RFR Loan made by it at the Adjusted Term SOFR or the Adjusted Daily Simple SOFR used in determining the Adjusted Term SOFR or the Adjusted Daily Simple SOFR, as applicable, without reference to any Floor.

Section 3.06 <u>Mitigation Obligations; Replacement of Lenders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Designation of a Different Lending Office</u>. If any Lender requests compensation under <u>Section</u> <u>3.04</u>, or the Company is required to pay any additional amount to any Lender, any L/C Issuer, or any Governmental Authority for the account of any Lender or any L/C Issuer pursuant to <u>Section</u> <u>3.01</u>, or if any Lender gives a notice pursuant to <u>Section</u> <u>3.02</u>, then such Lender or such L/C Issuer shall, as applicable, use reasonable efforts to designate a different Lending Office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or Affiliates, if, in the judgment of such Lender or such L/C Issuer, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to <u>Section</u> <u>3.01</u> or <u>Section</u> <u>3.04</u>, as the case may be, in the future, or eliminate the need for the notice pursuant to <u>Section</u> <u>3.02</u>, as applicable, and (ii) in each case, would not subject such Lender or such L/C Issuer, as the case may be, to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender or such L/C Issuer, as the case may be. The Company hereby agrees to pay all reasonable costs and expenses incurred by any Lender or any L/C Issuer in connection with any such designation or assignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Replacement of Lenders</u>. If any Lender requests compensation under <u>Section</u> <u>3.04</u>, or if the Company is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to <u>Section</u> <u>3.01</u>, or if any Lender gives a notice pursuant to <u>Section</u> <u>3.02</u>, the Company may replace such Lender in accordance with <u>Section</u> <u>10.12</u>.

Section 3.07 <u>Survival</u>. All of the Company's obligations under this <u>Article</u> <u>III</u> shall survive termination of the Aggregate Commitments, the assignment by a Lender of all or any portion of its Loans or Commitments hereunder, repayment of all other Obligations hereunder and resignation of the Administrative Agent.

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**ARTICLE IV** 

**GUARANTY** 

Section 4.01 <u>Guaranty</u>. Each of the Guarantors (which, for purposes of this <u>Article IV</u>, shall include the Company with respect to Obligations other than Obligations of the Company) hereby, jointly and severally, absolutely and unconditionally guarantees, as a guaranty of payment and performance and not merely as a guaranty of collection, prompt payment when due, whether at stated maturity, by required prepayment, upon acceleration, demand or otherwise, and at all times thereafter, of any and all of the Obligations, whether for principal, interest, premiums, fees, indemnities, damages, costs, expenses or otherwise, of the Company to the Secured Parties, arising hereunder and under the other Loan Documents (including all renewals, extensions, amendments, refinancings and other modifications thereof and all costs, attorneys' fees and expenses incurred by the Secured Parties in connection with the collection or enforcement thereof). The Administrative Agent's books and records showing the amount of the Obligations shall be admissible in evidence in any action or proceeding, and shall be binding upon each Guarantor, and conclusive for the purpose of establishing the amount of the Obligations, absent manifest error. This Guaranty shall not be affected by the genuineness, validity, regularity or enforceability of the Obligations or any instrument or agreement evidencing any Obligations, or by the existence, validity, enforceability, perfection, non-perfection or extent of any collateral therefor, or by any fact or circumstance relating to the Obligations which might otherwise constitute a defense to the obligations of any Guarantor under this Guaranty, and each Guarantor hereby irrevocably waives any defenses it may now have or hereafter acquire in any way relating to any or all of the foregoing.

Section 4.02 <u>Rights of</u> <u>Lenders</u>. Each Guarantor consents and agrees that the Secured Parties may, at any time and from time to time, without notice or demand, and without affecting the enforceability or continuing effectiveness hereof: (a) amend, extend, renew, compromise, discharge, accelerate or otherwise change the time for payment or the terms of the Obligations or any part thereof; (b) take, hold, exchange, enforce, waive, release, fail to perfect, sell, or otherwise dispose of any security for the payment of this Guaranty or any Obligations; (c) apply such security and direct the order or manner of sale thereof as the Administrative Agent, the Lenders and the L/C Issuers in their sole discretion may determine; and (d) release or substitute one or more of any endorsers or other guarantors of any of the Obligations. Without limiting the generality of the foregoing, each Guarantor consents to the taking of, or failure to take, any action which might in any manner or to any extent vary the risks of such Guarantor under this Guaranty or which, but for this provision, might operate as a discharge of such Guarantor.

Section 4.03 <u>Certain Waivers</u>. Each Guarantor waives (a) any defense arising by reason of any disability, change in corporate existence or structure or other defense of the Company or any other Guarantor, or the cessation from any cause whatsoever (including any act or omission of any Secured Party) of the liability of the Company or any other Guarantor; (b) any defense based on any claim that such Guarantor's obligations exceed or are more burdensome than those of the Company or any other Guarantor; (c) the benefit of any statute of limitations affecting such Guarantor's liability hereunder; (d) any right to proceed against the Company, proceed against or exhaust any security for the Obligations, or pursue any other remedy in the power of any Secured Party whatsoever; (e) any benefit of and any right to participate in any security now or hereafter held by any Secured Party; (f) any defense based on any claim that any Obligations are invalid or unenforceable; (g) the amendment or waiver of any Obligations; (g) any defense based on any allegation of non-perfection or release of Collateral in the context of a secured transaction; and (h) to the fullest extent permitted by law, any and all other defenses or benefits that may be derived from or afforded by applicable law limiting the liability of or exonerating the Company, the Guarantors or any other guarantors or sureties. Each Guarantor expressly waives all setoffs and counterclaims and all presentments, demands for payment or performance, notices of nonpayment or nonperformance, protests, notices of protest, notices of dishonor and all other notices or demands of any kind or nature whatsoever with respect to the Obligations, and all notices of acceptance of this Guaranty or of the existence, creation or incurrence of new or additional Obligations.

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Section 4.04 <u>Obligations Independent</u>. The obligations of each Guarantor hereunder are those of primary obligor, and not merely as surety, and are independent of the Obligations and the obligations of any other Guarantor, and a separate action may be brought against such Guarantor to enforce this Guaranty whether or not the Company or any other person or entity is joined as a party.

Section 4.05 <u>Subrogation</u>. Each Guarantor shall not exercise any right of subrogation, contribution, indemnity, reimbursement or similar rights with respect to any payments it makes under this Guaranty until all of the Obligations and any amounts payable under this Guaranty have been indefeasibly paid and performed in full and the Commitments and the Facilities are terminated. If any amounts are paid to any Guarantor in violation of the foregoing limitation, then such amounts shall be held in trust for the benefit of the Secured Parties and shall forthwith be paid to the Secured Parties to reduce the amount of the Obligations, whether matured or unmatured.

Section 4.06 <u>Termination; Reinstatement</u>. This Guaranty is a continuing and irrevocable guaranty of all Obligations now or hereafter existing and shall remain in full force and effect until all Obligations and any other amounts payable under this Guaranty are indefeasibly paid in full in cash and the Commitments and the Facilities with respect to the Obligations are terminated. Notwithstanding the foregoing, this Guaranty shall continue in full force and effect or be revived, as the case may be, if any payment by or on behalf of the Company or any Guarantor is made, or any of the Secured Parties exercises its right of setoff, in respect of the Obligations and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by any of the Secured Parties in their discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Laws or otherwise, all as if such payment had not been made or such setoff had not occurred and whether or not the Secured Parties are in possession of or have released this Guaranty and regardless of any prior revocation, rescission, termination or reduction. The obligations of each Guarantor under this paragraph shall survive termination of this Guaranty.

Section 4.07 <u>Subordination</u>. Each Guarantor hereby subordinates the payment of all obligations and indebtedness of the Company owing to such Guarantor, whether now existing or hereafter arising, including but not limited to any obligation of the Company to such Guarantor as subrogee of the Secured Parties or resulting from such Guarantor's performance under this Guaranty, to the indefeasible payment in full in cash of all Obligations. If the Secured Parties so request, any such obligation or indebtedness of the Company to any Guarantor shall be enforced and performance received by such Guarantor as trustee for the Secured Parties and the proceeds thereof shall be paid over to the Secured Parties on account of the Obligations, but without reducing or affecting in any manner the liability of such Guarantor under this Guaranty.

Section 4.08 <u>Stay of Acceleration</u>. If acceleration of the time for payment of any of the Obligations is stayed, in connection with any case commenced by or against any Guarantor or the Company under any Debtor Relief Laws, or otherwise, all such amounts shall nonetheless be payable by such Guarantor immediately upon demand by the Secured Parties.

Section 4.09 <u>Condition of Company</u>. Each Guarantor acknowledges and agrees that it has the sole responsibility for, and has adequate means of, obtaining from the Company and any other Guarantor such information concerning the financial condition, business and operations of the Company and any such other Guarantor as such Guarantor requires, and that none of the Secured Parties has any duty, and such Guarantor is not relying on the Secured Parties at any time, to disclose to such Guarantor any information relating to the business, operations or financial condition of the Company or any other Guarantor (such Guarantor waiving any duty on the part of the Secured Parties to disclose such information and any defense relating to the failure to provide the same).

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Section 4.10 <u>Limitation on Guaranty</u>. It is the intention of the Guarantors, the Lenders and the Company that the obligations of each Guarantor hereunder shall be in, but not in excess of, the maximum amount permitted by applicable law. To that end, but only to the extent such obligations would otherwise be avoidable, the obligations of each Guarantor hereunder shall be limited to the maximum amount that, after giving effect to the incurrence thereof, would not render such Guarantor insolvent or unable to make payments in respect of any of its indebtedness as such indebtedness matures or leave such Guarantor with an unreasonably small capital. The need for any such limitation shall be determined, and any such needed limitation shall be effective, at the time or times that such Guarantor is deemed, under applicable law, to incur the Obligations hereunder. Any such limitation shall be apportioned amongst the Obligations pro rata in accordance with the respective amounts thereof. This paragraph is intended solely to preserve the rights of the Lenders under this Credit Agreement to the maximum extent permitted by applicable law, and neither the Guarantors, the Company nor any other Person shall have any right under this paragraph that it would not otherwise have under applicable law. The Company and each Guarantor agree not to commence any proceeding or action seeking to limit the amount of the obligation of such Guarantor under this <u>Article</u> <u>IV</u> by reason of this paragraph. For the purposes of this paragraph, "insolvency", "unreasonably small capital" and "unable to make payments in respect of any of its indebtedness as such indebtedness matures" shall be determined in accordance with applicable law.

Section 4.11 <u>Keepwell</u> . Each Qualified ECP Guarantor hereby jointly and severally absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each other Loan Party to honor all of its obligations under this Guaranty in respect of Obligations that are Swap Obligations (<u>provided</u>, <u>however</u>, that each Qualified ECP Guarantor shall only be liable under this <u>Section</u> <u>4.11</u> for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this <u>Section</u> <u>4.11</u>, or otherwise under this Guaranty, as it relates to such other Loan Party, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations of each Qualified ECP Guarantor under this Section shall remain in full force and effect in accordance with <u>Section</u> <u>4.06</u>. Each Qualified ECP Guarantor intends that this <u>Section</u> <u>4.11</u> constitute, and this <u>Section</u> <u>4.11</u> shall be deemed to constitute, a "keepwell, support, or other agreement" for the benefit of each other Loan Party for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

**ARTICLE V** 

**CONDITIONS PRECEDENT** 

Section 5.01 <u>Conditions to the Credit Extensions on the Effective Date</u>. The obligation of each Lender and each L/C Issuer to make the Credit Extensions hereunder on the <u>Effective Date</u> is subject to the satisfaction of the following conditions precedent on or prior to the Effective Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Execution of Loan Documents and Notes</u>. The Administrative Agent's receipt of the following, each of which shall be originals or facsimiles or delivered by means of other electronic communication (including e-mail and Internet or intranet websites) (followed promptly by originals) unless otherwise specified, each properly executed by a Responsible Officer of the signing Loan Party, each dated the Effective Date (or, in the case of certificates of governmental officials, a recent date before the Effective Date) and each in form and substance reasonably satisfactory to the Administrative Agent and each of the Lenders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) this Credit Agreement, duly executed and delivered by each of the Company, the Guarantors, the Lenders, L/C Issuers and the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Security Agreement, duly executed and delivered by each of the Company, the Subsidiary Guarantors and the Administrative Agent;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Parent Negative Pledge Agreement, duly executed and delivered by the Parent and the Administrative Agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a Note executed by the Company in favor of each Lender requesting a Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Good Standing and Organizational Documents</u>. The Administrative Agent shall have received a copy of a certificate of the Secretary of State of the jurisdiction of organization of each Loan Party (except with respect to an entity of the type for which good standing certificates are not provided by the Secretary of State in the jurisdiction in which it is formed), dated on or about the Effective Date certifying (A) as to a true and correct copy of the charter, certificate of limited partnership, limited liability company agreement or other organizational document of such Loan Party and each amendment thereto on file in such Secretary of State's office and (B) that (1) such amendments are the only amendments to such Loan Party's charter, certificate of limited partnership, limited liability company agreement or other organizational document on file in such Secretary of State's office, (2) such Loan Party has paid all franchise taxes due and payable to the date of such certificate, and (3) such Loan Party is duly organized or formed and in good standing or presently subsisting (or the equivalent thereof) under the laws of the State of the jurisdiction of its organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Proof of Corporate Action</u>. The Administrative Agent shall have received certified copies of all necessary corporate action taken by each of the Company and the Loan Parties to authorize the execution, delivery and performance of each Loan Document to which it is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Secretary's Certificate</u>. The Administrative Agent shall have received a certificate of each Loan Party signed by its Secretary or Assistant Secretary, dated as of the Effective Date, certifying as to (i) the absence of any amendments to the charter, certificate of limited partnership, limited liability company agreement or other organizational document of such Loan Party since the date of the Secretary of State's (or local equivalent's) certificate referred to in <u>Section</u> <u>5.01(b)</u>, (ii) a true and correct copy of the organizational documents of such Loan Party as in effect on the date on which the resolutions or other proof of actions referred to in <u>Section</u> <u>5.01(c)</u> were adopted and on the Effective Date, (iii) the due organization and good standing or valid existence of such Loan Party organized under the laws of the jurisdiction of its organization and the absence of any proceeding for the dissolution or liquidation of such Loan Party, and (iv) certifying the names and true signatures of the officers of such Loan Party authorized to sign each Loan Document to which it is or is to be a party and the other documents to be delivered hereunder or thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Opinion of Counsel to the Loan Parties</u>. The Lenders shall have received the favorable opinion of Sullivan & Cromwell LLP, counsel to the Loan Parties and covering such other matters as the Administrative Agent or counsel to the Administrative Agent may reasonably request (and for purposes of such opinions such counsel may rely upon opinions of counsel in other jurisdictions, <u>provided</u> that such other counsel are reasonably satisfactory to counsel to the Administrative Agent and such other opinions state that the Lenders are entitled to rely thereon).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Security Interests</u>. Except as otherwise expressly provided in this Credit Agreement or the Security Agreement, the Administrative Agent shall have received reasonably satisfactory evidence that the Administrative Agent has a perfected, first priority Lien on all of the Collateral granted to the Administrative Agent by the Loan Parties and that such Collateral is not encumbered by any other Lien other than Liens permitted hereunder or under the terms of the Security Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Solvency Certificate</u>. The Lenders shall have received a certificate in form and substance reasonably satisfactory to the Administrative Agent attesting to the Solvency of the Company and the Restricted Subsidiaries (taken as a whole) on the Effective Date and after giving effect to the Transactions, from a Responsible Officer of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Officer's Certificate</u>. The Administrative Agent shall have received a certificate from the Company confirming compliance on the Effective Date with the conditions set forth in <u>Sections 5.02(a)</u> and <u>(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Financial Statements</u>. The Administrative Agent shall have received the financial statements referenced in <u>Section</u> <u>6.04(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Material Agreements</u>. The Lenders shall have received a certificate from an officer of the Company stating that true and correct copies of the Arena License Agreements have been made available to counsel to the Administrative Agent (including all amendments and other modifications thereto as of the date of the certificate) and that no such agreements have been terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Know Your Customer and Other Documents</u>. (i) The Administrative Agent and the Lenders shall have received all documentation and other information required by bank regulatory authorities under applicable "know your customer" and anti-money laundering rules and regulations, including the USA PATRIOT Act, and such other documents, filings, instruments and papers relating to the documents referred to herein and the transactions contemplated hereby as any Lender or the Administrative Agent shall reasonably require and (ii) to the extent any Loan Party qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, any Lender that has requested a Beneficial Ownership Certification in relation to such Loan Party shall have received such Beneficial Ownership Certification (<u>provided</u> that, upon the execution and delivery by such Lender of its signature page to this Credit Agreement, the condition set forth in this <u>clause (ii)</u> shall be deemed to be satisfied), in each case at least three Business Days prior to the Effective Date to the extent the request for such documentation, Beneficial Ownership Certification or other information was made at least five Business Days prior to the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Approvals</u>. The Administrative Agent shall have received evidence, in form and substance reasonably satisfactory to the Administrative Agent, that all consents and approvals required to be obtained from any Governmental Authority or any other Person in connection with the Transactions shall have been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Certain Fees</u>. All fees required to be paid to the Administrative Agent, the Lead Arranger and the Lenders on or before the Effective Date shall have been paid. Unless waived by the Administrative Agent, the Company shall have paid all fees, charges and disbursements of counsel to the Administrative Agent (including Cravath, Swaine & Moore LLP) to the extent properly invoiced at least two Business Days prior to the Effective Date, plus such additional amounts of such fees, charges and disbursements as shall constitute its reasonable estimate of such fees, charges and disbursements incurred or to be incurred by it through the closing proceedings (<u>provided</u> that such estimate shall not thereafter preclude a final settling of accounts between the Company and the Administrative Agent).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Projections</u>. The Administrative Agent (or its counsel) shall have received the pro forma projections for the Company through the fiscal year ended June 30, 2027.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Existing Credit Agreement Refinancing</u>. Substantially concurrently with the initial Credit Extension on the Effective Date, the Existing Credit Agreement Refinancing shall have been consummated.

Without limiting the generality of the provisions of <u>Section</u> <u>9.04</u>, for purposes of determining compliance with the conditions specified in this <u>Section</u> <u>5.01</u>, each Lender that has signed this Credit Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or reasonably satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Effective Date specifying its objection thereto.

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Section 5.02 <u>Conditions to all Credit Extensions</u>. The obligation of each Lender and each <u>L/C Issuer</u> to make the Credit Extensions hereunder (which shall not include any conversion or continuation of any outstanding Loan) is subject to the following additional conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Default</u>. No Default or Event of Default shall have occurred and be continuing or would result from such proposed Credit Extension or from the application of proceeds thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Representations and Warranties</u>. The representations and warranties of the Company and each other Loan Party in Article VI hereof or any other Loan Document, or which are contained in any document furnished at any time under or in connection herewith or therewith, shall be true and correct, in all material respects, on and as of the date of the making of, and after giving effect to, such Credit Extensions hereunder with the same force and effect as if made on and as of such date, except to the extent that such representations and warranties expressly relate to an earlier date, in which case they shall be true and correct, in all material respects, as of such earlier date; <u>provided</u> that any representation and warranty that is qualified as to "materiality", "Material Adverse Effect" or similar language shall be true and correct in all respects on the date of such Credit Extensions or on such earlier date, as the case may be (after giving effect to such qualification); and except that for purposes of this <u>Section</u> <u>5.02</u>, after the initial delivery of financial statements pursuant to <u>Section</u> <u>7.01(a)</u> or <u>(b)</u>, the representations and warranties contained in <u>Section</u> <u>6.04(a)(i)</u> or <u>(ii)</u>, respectively, shall be deemed to refer to the most recent statements furnished pursuant to <u>Section</u> <u>7.01(a)</u> or <u>(b)</u>, respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Certified Compliance</u>. To the extent requested by the Administrative Agent or any Lender, a Responsible Officer of the Company shall have certified compliance with <u>clauses (a)</u> and <u>(b)</u> above to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Borrowing Notice</u>. The Administrative Agent and, if applicable, the L/C Issuers shall have received a Request for Credit Extension in accordance with the requirements hereof.

**ARTICLE VI** 

**REPRESENTATIONS AND WARRANTIES** 

The Company and each of the Subsidiary Guarantors represents and warrants to the Administrative Agent and the Lenders as follows:

Section 6.01 <u>Existence, Qualification and Power</u>. The Company and each of the Restricted Subsidiaries is a limited or general partnership, limited liability company or corporation duly organized, validly existing and in good standing under the Laws of its jurisdiction of organization and is duly qualified to transact business and is in good standing in all jurisdictions in which such qualification is necessary in view of the properties and assets owned and presently intended to be owned and the business transacted and presently intended to be transacted by it except for qualifications the lack of which, singly or in the aggregate, have not had and are not likely to have a Material Adverse Effect, and each of the Company and the Restricted Subsidiaries has full power, authority and legal right to perform its obligations under this Credit Agreement, the Notes and the other Loan Documents to which it is a party.

Section 6.02 <u>Subsidiaries; Loan Parties</u>. As of the Effective Date, <u>Schedules</u> <u>6.02(i)</u> and <u>6.02(ii)</u> contain a complete and correct list, as at the <u>Effective Date</u>, of (i) all Restricted Subsidiaries and (ii) Excluded Subsidiaries of the Company, and a description of the legal nature of such Subsidiaries (including, (x) with respect to each Subsidiary, the jurisdiction of its organization, the address of its principal place of business and its U.S. taxpayer identification number, the nature of the ownership interests (shares of stock or general or limited partnership or other interests) in such Subsidiaries and the holders of such interests and, except as disclosed to the Lenders in writing prior to the <u>Effective Date</u>, the Company and each of the

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Subsidiaries owns all of the ownership interests of the Subsidiaries indicated in such Schedules as being owned by the Company or such Subsidiary, as the case may be, free and clear of all Liens except those created under the Collateral Documents, and all such ownership interests are validly issued and, in the case of shares of stock, fully paid and non-assessable, and (y) with respect to each Excluded Subsidiary, a list of its material assets and a description of its business activities).

Section 6.03 <u>Authority; No Conflict</u>. The execution, delivery and performance by each Loan Party of each Loan Document to which it is a party or by which it is bound, and each Credit Extension hereunder, have been duly authorized by all necessary corporate or other organizational action and do not and will not: (a) subject to the consummation of the action described in <u>Section</u> <u>6.12</u>, violate any Law or League Rule currently in effect (other than violations that, singly or in the aggregate, have not had and are not likely to have a Material Adverse Effect), or any provision of any of the Loan Parties' respective partnership agreements, charters or by-laws certificate of limited partnership, limited liability company agreement, by-laws or other organizational documents presently in effect; (b) conflict with or result in the breach of, or constitute a default or require any consent (except for the consents described on <u>Schedule</u> <u>6.03</u>, each of which has been duly obtained) under, or require any payment to be made under (i) any Contractual Obligation or League Rule to which any Loan Party is a party or by which their respective properties may be bound or affected, or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which the Loan Parties or their respective properties are subject (in each case under <u>subclause</u> <u>(i)</u> and/or <u>(ii)</u> above, other than any conflict, breach, default or required consent that, singly or in the aggregate, have not had and are not likely to have a Material Adverse Effect); or (c) except as provided under any Loan Document, result in, or require, the creation or imposition of any Lien upon or with respect to any of the properties or assets now owned or hereafter acquired by the Loan Parties.

Section 6.04 <u>Financial</u><u> </u><u>Condition</u><u>; Absence of Material Adverse Effect</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company has furnished to each Lender (i) the consolidated balance sheet of the Company and its consolidated Subsidiaries as at June 30, 2021, and the related consolidated statements of operations for the fiscal year ended on said date, said financial statements having been certified by an independent Registered Public Accounting Firm of nationally recognized standing reasonably acceptable to the Required Lenders, (ii) the consolidated balance sheet of the Company and its consolidated Subsidiaries as at June 30, 2020, and the related consolidated statements of operations for the fiscal year ended on said date, and (iii) the consolidated balance sheet of the Company and its consolidated Subsidiaries as at March 31, 2022, and the related consolidated statements of operations for the 9-month period ended on said date. Such financial statements are complete and correct in all material respects (subject, in the case of the unaudited financial statements referred to above, to year-end and audit adjustments), were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein and fairly present the financial condition of the respective entity or groups of entities which is or are the subject of such financial statements (as stated above), on a consolidated basis, as at the respective dates of the balance sheets included in such financial statements and the results of operations of such entity or groups of entities for the respective periods ended on said dates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) None of the Company or the Restricted Subsidiaries had any material contingent liabilities, liabilities for Taxes, unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments or operations which are substantial in amount, except as referred to or reflected or provided for in said financial statements of the Company and its consolidated Subsidiaries as at said respective dates or as disclosed to the Lenders in writing prior to the Effective Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Since June 30, 2021, there has been no event, change, condition, occurrence or circumstance which either individually or in the aggregate, has or would reasonably be expected to have a Material Adverse Effect; <u>provided</u> that, the impacts of the COVID-19 pandemic on the business, assets, operations, property or financial condition of the Company and its Subsidiaries taken as a whole that (A) have already occurred and were disclosed in writing to the Lenders in the Lender Model or in the Specified Public Filings and (B) that were reasonably foreseeable (in consequence and duration) in light of any event, development or circumstance described in the foregoing <u>clause (A)</u> (<u>provided</u> that any such additional impacts described in this <u>clause (B)</u> are similar to the previously disclosed impacts described in the foregoing <u>clause (A)</u>), will in each case be disregarded for purposes of determining whether a material adverse change in the business, operations, property or financial condition of the Company and its Subsidiaries, taken as a whole, has occurred.

Section 6.05 <u>Litigation,</u> <u>Compliance</u> <u>with Laws</u>. As of the Effective Date, there are no actions, suits, proceedings, claims or disputes pending, or to the knowledge of the Company or any Restricted Subsidiary threatened, against the Company or any Restricted Subsidiary or any of their respective properties or assets, before any court or arbitrator or by or before any Governmental Authority that, singly or in the aggregate, would reasonably be expected to have a Material Adverse Effect. Neither the Company nor any Restricted Subsidiary is in default under or in violation of or with respect to any Laws or any writ, injunction or decree of any court, arbitrator or Governmental Authority except for such violations or defaults which, singly or in the aggregate, are not likely to have a Material Adverse Effect.

Section 6.06 <u>Titles and Liens</u>. The Company and each of the Subsidiary Guarantors has good title to, or a valid leasehold (or license or similar) interest in or right to use, all of its real and personal property necessary for the conduct of its business, (i) free and clear of all Liens except those permitted by <u>Section</u> <u>7.16</u> and (ii) except for minor defects in title or interest that do not interfere with its ability to conducts its business as currently conducted or as proposed to be conducted or to utilize such properties for their intended purposes, in each case, except where the failure to do so would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

Section 6.07 <u>Regulation U; Investment Company Act</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) None of the proceeds of any of the Credit Extensions shall be used to purchase or carry, or to reduce or retire or refinance any credit incurred to purchase or carry, any Margin Stock or to extend credit to others for the purpose of purchasing or carrying any Margin Stock; <u>provided</u> that both at the time of such use and thereafter compliance with Regulation U is maintained. The Company will notify the Administrative Agent promptly if any Loan Party purchases Margin Stock and, if requested by any Lender, the Company will furnish to the Lenders statements in conformity with the requirements of Regulation U.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) None of the Company, any Person Controlling the Company, or any Subsidiary is or is required to be registered as an "investment company" under the Investment Company Act of 1940, as amended.

Section 6.08 <u>Taxes</u>. Each of the Company and the Restricted Subsidiaries has filed all Federal, state and other material tax returns which are required to be filed under any law applicable thereto except such returns as to which the failure to file, singly or in the aggregate, has not had and would not reasonably be expected to have a Material Adverse Effect, and has paid, or made provision for the payment of, all Taxes shown to be due pursuant to said returns or pursuant to any assessment received by the Company or any of the Restricted Subsidiaries, except such Taxes, if any, as are being contested in good faith and as to which adequate reserves have been provided or as to which the failure to pay, singly or in the aggregate, has not had and would not reasonably be expected to have a Material Adverse Effect.

Section 6.09 <u>Other Credit Agreements</u>. As of the Effective Date, <u>Schedule</u> <u>7.14</u> (Existing Indebtedness) and <u>Schedule</u> <u>7.16</u> (Existing Liens) contain complete and correct lists of all credit agreements, indentures, purchase agreements, obligations in respect of letters of credit, guarantees and other instruments presently in effect (including Capitalized Lease Obligations) providing for, evidencing,

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securing or otherwise relating to any Indebtedness for borrowed money of the Company and the Restricted Subsidiaries in a principal or face amount equal to $1,000,000 or more and such lists correctly set forth the names of the debtor or lessee and creditor or lessor with respect to the Indebtedness outstanding or to be outstanding thereunder, the rate of interest or rentals, a description of any security given or to be given therefor, and the maturity or maturities or expiration date or dates thereof.

Section 6.10 <u>Full Disclosure</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) None of the written information and written data heretofore or contemporaneously furnished in writing by or on behalf of the Company or any Guarantor to the Administrative Agent or any Lender on or prior to the Effective Date in connection with the Transactions and the negotiation of this Credit Agreement or delivered hereunder or any other Loan Document on or prior to the Effective Date, when taken as a whole, contains any material misstatement of fact or omits to state any material fact necessary to make such written information and written data taken as a whole, in the light of the circumstances under which it was delivered, not materially misleading (after giving effect to all modifications and supplements to such written information and written data, in each case, furnished after the date on which such written information or such written data was originally delivered and prior to the Effective Date); it being understood that for purposes of this <u>Section</u> <u>6.10</u>, such written information and written data shall not include projections, *pro forma* financial information, financial estimates, forecasts and forward-looking information or information of a general economic or general industry nature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As of the Effective Date, to the best knowledge of the Company, the information included in each Beneficial Ownership Certification provided on or prior to the Effective Date to any Lender in connection with this Credit Agreement is true and correct in all respects.

Section 6.11 <u>No Default</u>. None of the Company and the Restricted Subsidiaries is in default in the payment or performance or observance of any Contractual Obligation which default, either alone or in conjunction with all other such defaults, has had or is likely to have a Material Adverse Effect.

Section 6.12 <u>Approval of Government, Regulatory Authorities and Third Parties</u>. Except as set forth on <u>Schedule</u> <u>6.03</u> and other than any Non-Required Consents, no approval or consent of, or filing or registration with, (x) any Governmental Authority, (y) any League, or (z) any other third party, in the case of this <u>clause</u> <u>(z)</u> pursuant to any Contractual Obligation governing Indebtedness for borrowed money or any other Contractual Obligation that is material to the Business of the Company or any Restricted Subsidiary, is required in connection with (a) the execution, delivery and performance by, or enforcement against, any Loan Party of any Loan Document to which it is a party, (b) the grant by any Loan Party of the Liens granted by it pursuant to the Collateral Documents, (c) the perfection or maintenance of the Liens created under the Collateral Documents (including the first priority nature thereof) or (d) other than applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the exercise of creditors' rights generally or principles of equity (which shall exclude any law, rule or regulation that is applicable to the Company and the Subsidiaries or the Loan Documents solely because such law, rule or regulation is part of a regulatory regime applicable to the Company or any Restricted Subsidiary due to their specific assets or business), the exercise by the Administrative Agent or any Lender of its rights under the Loan Documents or the remedies in respect of the Collateral pursuant to the Collateral Documents. All approvals, consents, filings, registrations or other actions described in <u>Schedule</u> <u>6.03</u> have been duly obtained, taken, given or made and are in full force and effect (other than as set forth in <u>Schedule</u> <u>6.03</u>).

Section 6.13 <u>Binding Agreements</u>. This Credit Agreement constitutes, and each other Loan Document when executed and delivered will constitute, the legal, valid and binding obligations of each of the Loan Parties which is a party thereto, enforceable in accordance with their respective terms (except for limitations on enforceability under bankruptcy, reorganization, insolvency and other similar laws affecting creditors' rights generally and limitations on the availability of the remedy of specific performance imposed by the application of general equitable principles).

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Section 6.14 <u>Collective</u><u> </u><u>Bargaining</u> <u>Agreements</u> Except as set forth in <u>Schedule</u> <u>6.14</u>, as of the <u>Effective Date</u>, there are no collective bargaining agreements between the Company or the Restricted Subsidiaries and any trade or labor union or other employee collective bargaining agent.

Section 6.15 <u>Investments</u>. <u>Schedule</u> <u>6.15</u> contains a complete and correct list, as of the Effective Date, of all Investments of the Company and the Restricted Subsidiaries (other than any Investments in other Restricted Subsidiaries) in excess of $5,000,000, showing the respective amounts of each such Investment and the respective entity (or group thereof) in which each such Investment has been made.

Section 6.16 <u>Solvency</u>. As of the Effective Date, after giving effect to the consummation of the Transactions, the Company and the Restricted Subsidiaries, taken as a whole, are Solvent.

Section 6.17 <u>Collateral Documents</u>. The provisions of the Collateral Documents are effective to create in favor of the Administrative Agent for the benefit of the Secured Parties a legal, valid and enforceable first priority Lien (subject to Liens permitted by <u>Section</u> <u>7.16</u>) on all right, title and interest of the respective Loan Parties in the Collateral described therein. Except for filings completed as contemplated hereby and by the Collateral Documents, no filing or other action is necessary to perfect or to continue the perfection of such Liens.

Section 6.18 <u>Subordinated Debt</u>. The Loan Documents and all Obligations evidenced thereby constitute the "Senior Debt" and the "Designated Senior Debt" with respect to all subordinated Indebtedness of the Company and the Restricted Subsidiaries.

Section 6.19 <u>ERISA Compliance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Plan is in compliance with the applicable provisions of ERISA, the Code and other Federal or state Laws, except where such non-compliance would not result or reasonably be expected to result in a Material Adverse Effect. Each Plan that is intended to qualify under Section 401(a) of the Code has received a favorable determination letter from the Internal Revenue Service or an application for such a letter is currently being processed by the Internal Revenue Service with respect thereto and, to the actual knowledge of a Responsible Officer of the Company, nothing has occurred which would prevent, or cause the loss of, such qualification, except, in each case, where the absence or loss of such qualification would not result or reasonably be expected to result in a Material Adverse Effect. The Company and each ERISA Affiliate have made all required contributions to each Plan subject to Section 412 of the Code, and no application for a funding waiver or an extension of any amortization period pursuant to Section 412 of the Code has been made with respect to any Plan, except where any failure to make the required contributions would not result or reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There are no pending or, to the actual knowledge of a senior executive of the Company, threatened in writing claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan that would reasonably be expected to have a Material Adverse Effect. There has been no Prohibited Transaction or violation of the fiduciary responsibility rules of ERISA or the Code with respect to any Plan that has resulted or would reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i) No Termination Event has occurred or is reasonably expected to occur; (ii) neither the Company nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability under Title IV of ERISA with respect to any Plan (other than premiums due and not delinquent under Section 4007 of ERISA); (iii) to the knowledge of the Company or its ERISA Affiliates, neither the Company nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability (and no event has occurred which,

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with the giving of notice under Section 4219 of ERISA, would result in such liability) under Section 4201 of ERISA with respect to a Multiemployer Plan; and (iv) neither the Company nor any ERISA Affiliate has engaged in a transaction that could be subject to Section 4069 or 4212(c) of ERISA, which, in each case under this <u>Section</u> <u>6.19(c)</u>, such event or condition, together with all other such events or conditions, if any, has resulted or would reasonably be expected to result in a Material Adverse Effect.

Section 6.20 <u>Environmental</u> <u>Compliance</u>. The Company and the Restricted Subsidiaries are in compliance with all applicable Environmental Laws and the Company has no knowledge of any environmental claims, except to the extent that any potential non-compliance with Environmental Laws or any such claims would not individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

Section 6.21 <u>Intellectual</u> <u>Property</u><u>,</u> <u>Licenses</u><u>, Etc</u><u>.</u> As of the Effective Date, the Company and the Restricted Subsidiaries own or have the right to use, all of the trademarks, service marks, trade names, copyrights, patents, patent rights and other intellectual property rights that are reasonably necessary for the operation of their business, in each case other than those the absence of which would not reasonably be expected to have a Material Adverse Effect.

Section 6.22 <u>Compliance Matters</u>. As of the Effective Date, (a) after giving effect to the Transactions, the Company is in compliance with the provisions of this Credit Agreement (including the Financial Covenants) on a pro forma basis, and (b) no Default or Event of Default has occurred and is continuing.

Section 6.23 <u>Anti</u><u>-</u><u>Corruption</u> <u>Laws and Sanctions</u>. The Company has implemented and maintains in effect policies and procedures designed to ensure compliance by the Company, the Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and the Company, the Subsidiaries, and, to the knowledge of the Company, their respective officers, employees, directors and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects. The Company and the Subsidiaries have conducted their businesses in compliance in all material respects with all applicable Anti-Corruption Laws and Sanctions. The Company has not requested any Borrowing or Letter of Credit, and will not use, and has used its reasonable best efforts to provide that the Subsidiaries and its or their respective directors, officers, employees and agents will not use, the proceeds of any Borrowing or Letter of Credit (a) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (b) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, or (c) in any other manner that would result in the violation of any Sanctions applicable to any party hereto. None of (i) the Company or any Subsidiary or (ii) to the knowledge of the Company, any of their respective directors, officers or agents that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person. No Borrowing or Letter of Credit, use of proceeds or other transaction contemplated by the Credit Agreement will result in a violation by the Loan Parties of Anti-Corruption Laws or applicable Sanctions.

Section 6.24 <u>EEA Financial Institutions</u>. No Loan Party is an EEA Financial Institution.

**ARTICLE VII** 

**COVENANTS OF THE COMPANY** 

**AND THE RESTRICTED SUBSIDIARIES** 

From the Effective Date and so long as the Commitments of the Lenders shall be in effect and until the payment in full of all Obligations hereunder (other than contingent indemnification obligations), the expiration, termination or cash collateralization of all Letters of Credit and the performance of all other Obligations of the Company under the Loan Documents, the Company and each of the Subsidiary Guarantors (but not, for the avoidance of doubt, the Parent) agrees that:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Informational Covenants</u>:

Section 7.01 <u>Financial Statements and Other Information</u>. The Company will deliver to the Administrative Agent, on behalf of each Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As soon as available and in any event within 60 days after the end of each of the first three Quarters of each fiscal year of the Company commencing with the fiscal quarter ending March 31, 2022: (A) consolidated statements of operations of the Company and the Restricted Subsidiaries, taken together, in each case for such Quarter and for the period from the beginning of such fiscal year to the end of such Quarter (all prepared in accordance with GAAP), (B) the related consolidated balance sheets and consolidated cash flow statements of the Company and the Restricted Subsidiaries, taken together, in each case as at the end of such Quarter (which financial statements (other than statements of cash flows) shall set forth in comparative form the corresponding figures as at the end of and for the corresponding preceding fiscal year) (all prepared in accordance with GAAP) and (C) a certificate in the form of <u>Exhibit</u> <u>D</u><u>-1</u> of a Responsible Officer of the Company certifying such financial statements as fairly presenting the financial condition and results of operations of the respective entities covered thereby in accordance with GAAP, excluding accompanying footnotes to the consolidated financial statements and subject, however, to year-end and audit adjustments, which certificate shall include a statement that the Responsible Officer signing the same has no knowledge, except as specifically stated, that any Default has occurred and is continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As soon as available and in any event within 120 days after the end of each fiscal year of the Company commencing with the fiscal year ending June 30, 2022: (A) consolidated statements of operations of the Company and the Restricted Subsidiaries, taken together, in each case for such fiscal year (all prepared in accordance with GAAP), (B) the related consolidated balance sheets and cash flow statements of the Company and the Restricted Subsidiaries, taken together, in each case as at the end of such fiscal year (which financial statements (other than cash flow statements) shall set forth in comparative form the corresponding figures as at the end of and for the preceding fiscal year) (all prepared in accordance with GAAP), (C) an opinion of a Registered Public Accounting Firm of nationally recognized standing selected by the Company and reasonably acceptable to the Required Lenders as to said consolidated financial statements of the Company and the Restricted Subsidiaries (without a "going concern" or like qualification or exception (other than any such statement, qualification or exception resulting from an actual or anticipated financial covenant default under this Agreement on a future date or for a future period or an upcoming maturity date within one year) and without any qualification or exception as to the scope of such audit) and a certificate of such accountants stating that, in making the examination necessary for said opinion, they obtained no knowledge, except as specifically stated, of any failure by the Company or any Restricted Subsidiaries to comply with the covenants set forth in the Financial Covenants, and (D) a certificate in the form of <u>Exhibit</u> <u>D</u><u>-2</u> of a Responsible Officer of the Company certifying that such financial statements fairly present the financial condition and results of operations of the respective entities covered thereby as of the end of and for such fiscal year, respectively, in accordance with GAAP, which certificate shall include a statement that the Responsible Officer signing the same has no knowledge, except as specifically stated, that any Default has occurred and is continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Promptly after their becoming available, copies of all financial statements and reports which the Company or any Restricted Subsidiary shall have sent to public shareholders generally (other than tax returns unless specifically requested under <u>Section</u> <u>7.01(g)</u>), copies of financial statements and reports which the Company shall have sent to the holders of any Indebtedness specified in <u>Schedule</u> <u>7.14</u>,

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to the extent such statements and reports contain information relating to the designation of the Company's Subsidiaries as "restricted subsidiaries" under the Debt Instruments governing any such Indebtedness, and to the calculation of financial ratios thereunder and copies of all regular and periodic reports, if any, which the Company or any Restricted Subsidiary shall have filed with the SEC, or any governmental agency substituted therefor, or with any national securities exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Within seven days of the delivery of the financial statements referred to in <u>Section</u> <u>7.01(a)</u> and <u>(b)</u>, a Compliance Certificate, duly completed signed by a Responsible Officer of the Company and setting out the Adjusted Operating Income calculation for each quarter in the most recent Measurement Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Promptly after any senior executive of the Company or any Restricted Subsidiary shall have obtained knowledge of the occurrence of a Default, a notice describing such Default and the action which is proposed to be taken with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Promptly after any senior executive of the Company or any Restricted Subsidiary shall have obtained knowledge of (x) the occurrence of, or any material development in respect of, any Proceeding against it or, to its knowledge, otherwise affecting it or any of its respective properties or assets, except Proceedings which are not, individually or in the aggregate, reasonably likely to have a Material Adverse Effect and (y) any Labor Dispute affecting the Company or a Restricted Subsidiary, a statement describing such Proceeding or Labor Dispute, as the case may be, except Labor Disputes which are not, individually or in the aggregate, reasonably likely to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) From time to time, with reasonable promptness, such further information regarding the business, affairs and financial condition of the Company or any of the Restricted Subsidiaries as the Administrative Agent, any Lender or any L/C Issuer, through the Administrative Agent, may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Within seven days of the delivery of the financial statements referred to in <u>Section</u> <u>7.01(a)</u> and <u>(b)</u>, a list of any New Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Promptly, notice of any change in the information provided in any Beneficial Ownership Certification delivered to any Lender that would result in a change to the list of beneficial owners identified in such certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) At any time that the Company is not Controlled by a Person that files reports with the SEC, promptly following any reasonable request therefor, copies of any detailed audit reports of the Company or any Restricted Subsidiary by independent accountants in connection with an audit of the accounts or books of the Company or such Restricted Subsidiary, in each case to the extent previously delivered to the Company or such Restricted Subsidiary and in each case to the extent that the Company or such Restricted Subsidiary is not prohibited from providing such report by applicable Laws or previously existing obligations to a third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Annually, as soon as available, but in any event within 120 days after the first day of each fiscal year of the Company commencing with the fiscal year ending June 30, 2023, an annual budget of the Company and its Subsidiaries for such fiscal year in the same form prepared for the Company's board of directors or similar governing entity in such other form reasonably satisfactory to the Administrative Agent. 

Documents required to be delivered pursuant to <u>Section</u> <u>7.01(a)</u> or <u>(b)</u> may be delivered electronically and, if so delivered, shall be deemed to have been delivered on the date on which such documents are delivered electronically to the Administrative Agent as provided in <u>Section</u> <u>10.02</u>. Notwithstanding the foregoing, the obligations in paragraphs <u>(a)</u>, <u>(b)</u> and <u>(c)</u> of this <u>Section</u> <u>7.01</u> may be

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satisfied with respect to financial information of the Company and its Subsidiaries by furnishing (i) the applicable financial statements of any direct or indirect parent of the Company that directly or indirectly holds all of the Equity Interests of the Company or (ii) the Company's or such entity's Form 10-K or 10-Q, as applicable, filed with the SEC; <u>provided</u> that with respect to each of <u>clauses (i)</u> and <u>(ii)</u>, (A) to the extent such information relates to a parent of the Company, such information is accompanied by consolidating information (which need not be audited) that explains in reasonable detail the differences between the information relating to the Company (or such parent), on the one hand, and the information relating to the Company and the Restricted Subsidiaries on a standalone basis, on the other hand and (B) to the extent such information is in lieu of information required to be provided under <u>Section</u> <u>7.01(b)</u>, such materials are accompanied by a report and opinion of an independent registered public accounting firm of nationally recognized standing or another accounting firm reasonably acceptable to the Administrative Agent, which report and opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any explanatory statement as to the Company's ability to continue as a "going concern" or like qualification or exception (other than any such statement, qualification or exception resulting from an actual or anticipated financial covenant default under this Agreement on a future date or for a future period or an upcoming maturity date) or any qualification or exception as to the scope of such audit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Affirmative Covenants</u>:

Section 7.02 <u>Taxes</u> <u>and</u> <u>Claims</u>. Each of the Company and the Restricted Subsidiaries will pay and discharge all Taxes imposed upon it or upon its income or profits, or upon any properties or assets belonging to it, and all other lawful claims as the same shall become due and payable, except where a failure to do so, singly or in the aggregate, would not reasonably be expected to have a Material Adverse Effect, <u>provided</u> that none of the Company and the Restricted Subsidiaries shall be required to pay any such Tax, fee or other claim as to which the Company and the Restricted Subsidiaries have a good faith basis to believe is not due and owing and, to the extent then appropriate, the payment thereof is being contested in good faith and by proper proceedings, <u>provided</u> that it maintains adequate reserves in accordance with GAAP with respect thereto.

Section 7.03 <u>Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Company and the Restricted Subsidiaries will maintain insurance issued by financially sound and reputable insurance companies with respect to its properties and business in such amounts and against such risks as is usually carried by owners of similar businesses and properties in the same general areas in which the Company or such Restricted Subsidiary operates; <u>provided</u> that the Loan Parties shall not be required to maintain flood insurance except as set forth in <u>clause (b)</u> below. The Company will furnish to any Lender, upon the reasonable request of such Lender from time to time, information as to the insurance maintained in accordance with this <u>Section</u> <u>7.03</u>. Each such policy of liability or casualty insurance maintained by or on behalf of Loan Parties will (a) in the case of each liability insurance policy (other than workers' compensation, director and officer liability or other policies in which such endorsements are not customary), name the Administrative Agent, on behalf of the Secured Parties, as an additional insured thereunder and (b) in the case of each casualty insurance policy, contain a lender's loss payable clause or endorsement that names the Administrative Agent, on behalf of the Secured Parties, as the lender's loss payee thereunder; <u>provided</u>, that, to the extent that the requirements of this <u>Section</u> <u>7.03</u> are not satisfied on the Effective Date, the Company may satisfy such requirements within ninety (90) days of the Effective Date (as extended by the Administrative Agent in its reasonable discretion, including to the extent such delay has arisen as a result of circumstances relating to the COVID-19 pandemic, in light of such circumstances).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to each Mortgaged Property that is located in an area identified by the Federal Emergency Management Agency (or any successor agency thereto) as a "special flood hazard area" with respect to which flood insurance has been made available under the Flood Insurance Laws, the applicable Loan Party (i) to the extent commercially available, shall obtain and maintain with financially sound and reputable insurance companies (except to the extent that any insurance company insuring such Mortgaged Property of such Loan Party ceases to be financially sound and reputable after the Effective Date, in which case such Loan Party shall promptly replace such insurance company with a financially sound and reputable insurance company), such flood insurance in such reasonable total amount as the Administrative Agent may from time to time reasonably require (not to exceed the maximum amount available under the Flood Insurance Laws) and otherwise sufficient to comply with all applicable rules and regulations promulgated under the Flood Insurance Laws and (ii) promptly upon request of the Administrative Agent or any Lender, shall deliver to the Administrative Agent or such Lender as applicable, evidence of such compliance in form and substance reasonably acceptable to the Administrative Agent or such Lender, including, without limitation, evidence of annual renewals of such flood insurance. Further, no MIRE Event may be closed until the Administrative Agent has delivered to the Lenders the following documents in respect of such real property: (I) a completed flood hazard determination from a third party vendor; (II) if such real property is located in a "special flood hazard area", (A) a notification to the applicable Loan Parties of that fact and (if applicable) notification to the applicable Loan Parties that flood insurance coverage is not available and (B) evidence of the receipt by the applicable Loan Parties of such notice; (III) if required by Flood Insurance Laws, evidence of required flood insurance; and (IV) the Administrative Agent shall have received confirmation from each applicable Lender that such Lender has completed any necessary flood insurance due diligence to its reasonable satisfaction (such written confirmation not to be unreasonably withheld, conditioned or delayed).

Section 7.04 <u>Maintenance of</u> <u>Existence</u><u>; Conduct of Business</u>. Each of the Company and the Restricted Subsidiaries will preserve, renew and maintain in full force and effect its legal existence and good standing under the Laws of the jurisdiction of its organization, and all of its rights, privileges, permits, licenses approvals and franchises, except (i) where a failure to do so, singly or in the aggregate, would not reasonably be expected to have a Material Adverse Effect or (ii) pursuant to a Permitted Restricted Subsidiary Transaction.

Section 7.05 <u>Maintenance of</u> <u>and</u> <u>Access to Collateral</u>. Each of the Company and the Restricted Subsidiaries will maintain, preserve and protect the Collateral in good working order and condition, ordinary wear and tear excepted, except where a failure to do so, singly or in the aggregate, would not reasonably be expected to be materially adverse to the interests of the Lenders, and will permit representatives of the Lenders to visit and inspect such properties, and to examine and make extracts from its books and records, during normal business hours, in each case at such Lender's expense, except during the continuance of an Event of Default.

Section 7.06 <u>Compliance with Applicable Laws</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Company and the Restricted Subsidiaries will comply with the requirements of all applicable Laws (including but not limited to Environmental Laws and ERISA) and all orders, writs, injunctions and decrees of any Governmental Authority a breach of which is likely to have, singly or in the aggregate, a Material Adverse Effect, except where contested in good faith and by proper proceedings if it maintains adequate reserves in accordance with GAAP with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Loan Party will, and will cause each of their respective Subsidiaries to, conduct their businesses in compliance in all material respects with all applicable Anti-Corruption Laws and Sanctions. The Company will maintain in effect and enforce policies and procedures reasonably designed to ensure compliance by the Company, the Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions.

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Section 7.07 [<u>Reserved</u>].

Section 7.08 <u>Control Agreements</u>. Subject to <u>Section</u> <u>7.13</u>, the Company and each Subsidiary Guarantor shall maintain its cash and Cash Equivalents in Deposit Accounts subject to Deposit Account Control Agreements (other than any Excluded Accounts and other than accounts containing cash and Cash Equivalents in the aggregate not in excess of $5,000,000).

Section 7.09 <u>Use of Proceeds</u>. The Company shall (a) use the proceeds of the Term Facility to (i) effect the Existing Credit Agreement Refinancing, (ii) pay fees, premiums, costs and expenses incurred in connection with the Transactions and/or (iii) subject to <u>Section</u> <u>7.24</u>, make one or more dividends or distributions to Parent; and (b) use the proceeds of the Revolving Credit Facility (i) for working capital and other general purposes of the Company and/or (ii) to pay fees, premiums, costs and expenses incurred in connection with the Transactions.

Section 7.10 <u>Covenant to Guarantee Obligations and Give Security</u>. Following (x) the formation or acquisition of any direct or indirect wholly-owned Subsidiary (other than any Excluded Subsidiary, any Foreign Subsidiary or a Subsidiary that is held directly or indirectly by a Foreign Subsidiary) by any Loan Party, or (y) the acquisition of any property not constituting an Excluded Asset by any Loan Party (including Equity Interests in a first-tier Foreign Subsidiary) if such property, in the reasonable judgment of the Administrative Agent, shall not already be subject to a perfected first priority security interest in favor of the Administrative Agent for the benefit of the Secured Parties, then the Company shall, at the Company's expense:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) on the later of sixty (60) days after such an event or at the time of delivery of the Compliance Certificate set forth in <u>Section</u> <u>7.01(d</u>), cause such Subsidiary (if it has not already done so) to duly execute and deliver to the Administrative Agent a guaranty or guaranty supplement, in form and substance reasonably satisfactory to the Administrative Agent, guaranteeing the Company's obligations under the Loan Documents,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) on the later of sixty (60) days after such an event or at the time of delivery of the Compliance Certificate set forth in <u>Section</u> <u>7.01(d</u>), cause such Subsidiary (if it has not already done so) to duly execute and deliver to the Administrative Agent Supplemental Collateral Documents, as specified by and in form and substance reasonably satisfactory to the Administrative Agent (or in substantially the form attached to the Security Agreement, if applicable) (including delivery of all Pledged Equity Interests in and of such Subsidiary (limited to 65% of voting equity interests of any Foreign Subsidiary), and other instruments of the type specified in <u>Section</u> <u>5.01(a)(iii)</u>), and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) at the time of delivery of the Compliance Certificate set forth in <u>Section</u> <u>7.01(d)</u>, cause such Subsidiary (if it has not already done so) to take any actions required under the Security Agreement (including the filing of UCC financing statements) as may be reasonably requested by the Administrative Agent to vest in the Administrative Agent (or in any representative of the Administrative Agent designated by it) valid and subsisting Liens on the properties subject to the Supplemental Collateral Documents delivered pursuant to this <u>Section</u> <u>7.10</u>;

<u>provided</u> that with respect to after-acquired property of any Loan Party as to which an effective Uniform Commercial Code financing statement is on file in the appropriate jurisdiction and which does not constitute deposit or securities accounts (as to which the provisions above shall be applicable), such Loan Party may satisfy the requirements of this <u>Section</u> <u>7.10</u> at the time of delivery of the next certificate required pursuant to <u>Section</u> <u>7.01(b)</u>.

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Section 7.11 <u>Books and Records</u>. The Company and the Restricted Subsidiaries shall maintain proper books of record and account, in which entries that are full, true and correct in all material respects and are in conformity with GAAP consistently applied.

Section 7.12 <u>[Reserved]</u>.

Section 7.13 <u>Further Assurances</u> <u>and Post</u><u>-Closing Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall, promptly upon request by the Administrative Agent, or any Lender through the Administrative Agent, do, execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register any and all such further acts, deeds, certificates, assurances and other instruments as the Administrative Agent, or any Lender through the Administrative Agent, may reasonably require from time to time in order to (w) carry out more effectively the purposes of the Loan Documents, (x) to the fullest extent permitted by applicable Law, subject to any Loan Party's properties, assets, rights or interests comprising Collateral to the Liens now or hereafter intended to be covered by any of the Collateral Documents, (y) perfect and maintain the validity, effectiveness and priority of any of the Collateral Documents and any of the Liens intended to be created thereunder and (z) assure, convey, grant, assign, transfer, preserve, protect and confirm more effectively unto the Secured Parties the rights granted or now or hereafter intended to be granted to the Secured Parties under any Loan Document or under any other instrument executed in connection with any Loan Document to which any Loan Party or any of its Subsidiaries is or is to be a party, and cause each of its Subsidiaries, to the extent applicable, to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company will, and will cause each of its Restricted Subsidiaries to, take each of the following actions within 90 days of the Effective Date (as such time may be extended by the Administrative Agent in its reasonable discretion, including to the extent such delay has arisen as a result of circumstances relating to the COVID-19 pandemic, in light of such circumstances):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Real Estate</u>. The Company will cause to be delivered:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) a Mortgage encumbering each Mortgaged Property in favor of the Administrative Agent, for the benefit of the Secured Parties, duly executed and acknowledged by each Loan Party that is the owner of or holder of any interest in such Mortgaged Property, and otherwise in form for recording in the recording office of each applicable political subdivision where each such Mortgaged Property is situated, together with such certificates, affidavits, questionnaires or returns as shall be required in connection with the recording or filing thereof to create a lien under applicable requirements of law, and such financing statements and any other instruments necessary to grant a mortgage lien under the laws of any applicable jurisdiction, all of which shall be in form and substance reasonably satisfactory to Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) [<u>Reserved</u>];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) a survey of each Mortgaged Property for which all necessary fees (where applicable) have been paid (a) prepared by a surveyor reasonably acceptable to the Administrative Agent, (b) dated or re-certificated not earlier than three months prior to the date of such delivery or such other date as may be reasonably satisfactory to the Administrative Agent in its sole discretion, (c) for Mortgaged Property situated in the United States, certified to the Administrative Agent, which certification shall be reasonably acceptable to the Administrative Agent and (d) complying with current "Minimum Standard Detail Requirements for ALTA/NSPS Land Title Surveys," jointly established and adopted by American Land Title Association, and the National Society of Professional Surveyors (except for such deviations as are reasonably acceptable to the Administrative Agent) (a "<u>Survey</u>") <u>provided</u>, <u>however</u>, that a Survey shall not be required to the extent that an existing survey (which need not meet the requirements of <u>clause (d)</u> above) together with an "affidavit of no change" is delivered to the Administrative Agent;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) favorable written opinions, addressed to the Administrative Agent and the Secured Parties, of local counsel to the Loan Parties in each jurisdiction (i) where a Mortgaged Property is located and (ii) where the applicable Loan Party granting the Mortgage on said Mortgaged Property is organized, regarding the due authority, execution, delivery and enforceability of each such Mortgage, the corporate formation, existence and good standing of the applicable Loan Party, and such other matters as may be reasonably requested by the Administrative Agent, each in form and substance reasonably satisfactory to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) (I) "Life-of-Loan" Federal Emergency Management Agency Standard Flood Hazard Determination with respect to each Mortgaged Property; and (b) in the event any such property is located in an area identified by the Federal Emergency Management Agency (or any successor agency) as a special flood hazard area pursuant to the Flood Insurance Laws, (x) a notice about special flood hazard area status and flood disaster assistance, duly executed by the Company, (y) evidence of flood insurance as and to the extent required by <u>Section</u> <u>7.03(b)</u>, and (z) evidence of the payment of premiums in respect thereof in form and substance reasonably satisfactory to the Administrative Agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) such other documents the Administrative Agent may reasonably request, in each case in form and substance reasonably satisfactory to the Administrative Agent.

Notwithstanding the foregoing, the Administrative Agent shall not enter into any Mortgage in respect of any real property of Borrower or any other Loan Party until (1) the date that occurs 45 days after the Administrative Agent has delivered to the Lenders (which may be delivered electronically) the following documents in respect of such real property: (i) a completed flood hazard determination from a third party vendor; (ii) if such real property is located in a "special flood hazard area", (A) a notification to the applicable Loan Party of that fact and (if applicable) notification to the applicable Loan Party that flood insurance coverage is not available and (B) evidence of the receipt by the Loan Party of such notice; and (iii) if such notice is required to be provided to the applicable Loan Party and flood insurance is available in the community in which such real property is located, evidence of required flood insurance and (2) the Administrative Agent shall have received written confirmation from each of the Lenders that flood insurance due diligence and flood insurance compliance has been completed by the Lenders (such written confirmation not to be unreasonably conditioned, withheld or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Insurance</u>. The Company will cause (x) each of the liability insurance policies maintained by or on behalf of Loan Parties to name the Administrative Agent on behalf of the Secured Parties, as an additional insured thereunder and (b) each of the casualty insurance policies maintained by or on behalf of Loan Parties to contain a lender's loss payable clause or endorsement that names the Administrative Agent, on behalf of the Secured Parties, as the lender's loss payee thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As promptly as practicable and in no event later than 90 days following the Effective Date (as such time may be extended by the Administrative Agent in its reasonable discretion, including to the extent such delay has arisen as a result of circumstances relating to the COVID-19 pandemic, in light of such circumstances), the Company and the Subsidiary Guarantors shall deliver to the Administrative Agent a Deposit Account Control Agreement covering each Deposit Account (other than any Excluded Accounts and other than accounts containing cash and Cash Equivalents in the aggregate not in excess of $5,000,000).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Negative Covenants</u>:

Section 7.14 <u>Indebtedness</u>. Neither the Company nor any of the Restricted Subsidiaries will, nor permit any Restricted Subsidiary to, create, incur or suffer to exist any Indebtedness except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Indebtedness hereunder (including any Incremental Loans) and any Permitted Refinancing Indebtedness in respect thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Incremental Equivalent Debt and Refinancing Equivalent Debt and any Permitted Refinancing Indebtedness in respect thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) obligations under or in respect of Swap Contracts for bona fide hedging purposes and not for speculative purposes and Guarantees thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Guarantees by the Company and the Restricted Subsidiaries in respect of Indebtedness of the Company or any of the Restricted Subsidiaries otherwise permitted hereunder; <u>provided</u> that such Guarantees by the Company and the Restricted Subsidiaries in respect of Indebtedness of any Restricted Subsidiary which is not a Guarantor shall not, when combined with the aggregate amount of Indebtedness of the Company or any Restricted Subsidiary owed to any Restricted Subsidiary which is not a Guarantor incurred pursuant to <u>Section</u> <u>7.14(e)</u>, exceed at any one time outstanding the greater of (i) $25,000,000 and (ii) 20.0% of Adjusted Operating Income for the most recently completed Measurement Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) (A) Indebtedness of the Company owed to any Guarantor and Indebtedness of any Guarantor owed to the Company or any other Guarantor, and (B) Indebtedness of the Company or any Restricted Subsidiary owed to any Restricted Subsidiary which is not a Guarantor; <u>provided</u> that such Indebtedness under this <u>clause</u> <u>(B)</u> shall (i) be subordinated to the Obligations pursuant to the Master Subordinated Intercompany Note and (ii) not, when combined with the aggregate amount of Guarantees by the Company and the Restricted Subsidiaries in respect of Indebtedness of any Restricted Subsidiary which is not a Guarantor incurred pursuant to <u>Section</u> <u>7.14(d)</u>, exceed at any one time outstanding the greater of (A) $25,000,000 and (B) 20.0% of Adjusted Operating Income for the most recently completed Measurement Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Indebtedness issued and outstanding on the Effective Date to the extent set forth on <u>Schedule</u> <u>7.14</u> and any renewals, extensions or refundings thereof in a principal amount incurred under this <u>clause (f)</u> not to exceed the amount so renewed, extended or refunded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) other Indebtedness of the Company or any Restricted Subsidiary in an aggregate principal amount at any time outstanding (when taken together with the aggregate principal amount of Indebtedness outstanding at such time under <u>clause (o)</u> of this <u>Section</u> <u>7.14</u>) of up to the greater of (A) $50,000,000 and (B) 40% of Adjusted Operating Income for the most recently completed Measurement Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Indebtedness constituting an Investment permitted under <u>Section</u> <u>7.17</u> (other than <u>clause (h)</u> thereof); <u>provided</u> that any Indebtedness of a Loan Party owed to any Subsidiary that is not a Loan Party shall be subordinated to the Obligations pursuant to the Master Subordinated Intercompany Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Indebtedness of any Arena Subsidiary incurred to finance the acquisition, construction or improvement of any fixed or capital assets used in the business of the Arena Subsidiaries or the Arena; <u>provided</u> that, the aggregate principal amount of outstanding Indebtedness permitted by this paragraph (i) shall not at any time exceed $50,000,000;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Indebtedness of the Company and the Restricted Subsidiaries incurred to finance the acquisition, construction or improvement of any fixed or capital assets, including Capitalized Lease Obligations and purchase money security interests, and any Indebtedness assumed in connection with the acquisition of any such assets or secured by a Lien on any such assets prior to the acquisition thereof, and any extension or renewal thereof; <u>provided</u> that (A) such Indebtedness is incurred prior to, or within 180 days after, such acquisition or the completion of such construction or improvement (<u>provided</u> that the Administrative Agent shall, without any requirement for Lender consent, extend such original 180 day period by an additional 180 days upon its receipt of a written extension request from the Company), and (B) the aggregate principal amount of outstanding Indebtedness permitted by this paragraph (j) shall not at any time exceed $25,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Indebtedness arising from netting services, overdraft protection, cash management services, endorsements or instruments and other items for deposit in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) other unsecured Indebtedness so long as the Total Leverage Ratio on a pro forma basis at incurrence is equal to or less than 4.00:1.00 calculated on a pro forma basis after giving effect to such incurrence (and any related refinancings) and recomputed as of the most recently completed Measurement Period for which financial statements have been delivered or deemed delivered pursuant to <u>Section</u> <u>7.01</u>; <u>provided</u> that (i) such Indebtedness does not mature on or prior to, and no scheduled mandatory commitment reduction in respect thereof shall be required prior to, 91 days after the maturity date of the Initial Revolving Credit Loans and (ii) the maturity date and the weighted average life to maturity of such Indebtedness shall be no earlier than or shorter than, as the case may be, 91 days after that of the Initial Term Loans or the remaining weighted average life to maturity of the Initial Terms Loans, as applicable (other than, in the case of (i) and (ii), with respect to maturity, customary extension rollover provisions (including by conversion or exchange) for bridge facilities, in which case, such maturity may be earlier than 91 days after that of the Initial Revolving Credit Loans and Initial Term Loans if such maturity is automatically extended upon the initial maturity date to a date not earlier than 91 days after the maturity date of the Initial Revolving Credit Loans and Initial Terms Loans, as applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Indebtedness secured by mortgages on Real Property; <u>provided</u> that the aggregate principal amount of outstanding Indebtedness permitted by this paragraph (m) shall not at any time exceed $25,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Indebtedness consisting of the financing of insurance premiums or take-or-pay obligations of the Company or any of the Restricted Subsidiaries contained in supply arrangements, in each case, in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Indebtedness of a Person existing at the time such Person became a Restricted Subsidiary or property was acquired from such Person to the extent such Indebtedness was not incurred in connection with, or in contemplation of, such Person becoming a Restricted Subsidiary or the acquisition of such property, not to exceed in an aggregate principal amount at any time outstanding (when taken together with the aggregate principal amount of Indebtedness outstanding at such time under <u>clause (g)</u> of this <u>Section</u> <u>7.14</u>) the greater of (A) $50,000,000 and (B) 40% of Adjusted Operating Income for the most recently completed Measurement Period as of the date of incurrence of such Indebtedness, and any renewals, extensions or refundings thereof in a principal amount not to exceed the amount so renewed, extended or refunded (it being understood that any accrued but unpaid interest and the amount of all expenses and premiums incurred in connection therewith added to any principal amount shall not constitute an increment in principal for purposes of this paragraph); <u>provided</u> that the Company and the Restricted Subsidiaries are in pro forma compliance with the Financial Covenants, both immediately before and immediately after giving pro forma effect to such incurrence of such Indebtedness and after giving pro forma effect to the related acquisition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) any earnout obligation or purchase price holdback that comprises a portion of the consideration for an acquisition permitted hereunder;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Indebtedness in respect of sale and leaseback transactions in an amount not to exceed $25,000,000; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) Indebtedness incurred in a receivables or factoring transaction (and any refinancing) or by a special purpose securitization vehicle (or similar entity) in a Qualifying Securitization Facility that is not recourse (except for Standard Securitization Undertakings) to the Company or any of the Restricted Subsidiaries in an amount not to exceed $25,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) Indebtedness representing deferred compensation to employees of Company or any Subsidiary (or of MSG Entertainment Corp., Parent or any other direct or indirect parent company of the Company) incurred in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) Indebtedness in respect of trade letters of credit, warehouse receipts or similar instruments issued to support performance obligations (other than obligations in respect of Indebtedness for borrowed money) in the ordinary course of business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) Indebtedness consisting of obligations under deferred compensation, indemnification, adjustment of purchase or acquisition price or other similar arrangements incurred in connection with any Investment permitted hereunder.

<u>provided</u>, <u>however</u>, that the foregoing exceptions shall not permit any Indebtedness for borrowed money to be incurred by any Arena Subsidiary or Guarantees by any Arena Subsidiary (in each case, other than Indebtedness permitted to be incurred pursuant to <u>Section</u> <u>7.14(i)</u>).

For purposes of determining compliance with this <u>Section</u> <u>7.14</u>, (A) Indebtedness need not be permitted solely by reference to one category of permitted Indebtedness (or any portion thereof) described above, but may be permitted in part under any relevant combination thereof, (B) in the event that any Indebtedness (or any portion thereof) meets the criteria of more than one of the categories set forth above, the Company may, in its sole discretion, at the time such Indebtedness is incurred or at any time thereafter, divide, classify or reclassify such Indebtedness (or any portion thereof) in any manner that complies with this <u>Section</u> <u>7.14</u>; <u>provided</u> that all Indebtedness outstanding under the Loan Documents shall be deemed to have been incurred only in reliance on <u>Section</u> <u>7.14(a)</u>.

Section 7.15 <u>[Reserved]</u>.

Section 7.16 <u>Liens</u>. Neither the Company nor any Restricted Subsidiary will, nor permit any Restricted Subsidiary to, create or suffer to exist, any mortgage, pledge, security interest, conditional sale or other title retention agreement, lien, charge or encumbrance upon any of its assets, in each case now owned or hereafter acquired, securing any Indebtedness or other obligation (all such security being herein called "<u>Liens</u>"), except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liens on property securing Indebtedness owed to the Company or any Guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) purchase money mortgages or Liens, Liens securing Capitalized Lease Obligations or other Indebtedness for the deferred acquisition price of property or services to the extent such Liens attach solely to the property acquired with or subject to such Indebtedness and Liens consisting of precautionary filings by lessors under operating leases to the extent such Liens attach solely to (and such filings solely cover) leased property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Liens securing all of the Obligations of the Company and the Restricted Subsidiaries hereunder (including, for the avoidance of doubt, Liens in favor of a Hedge Bank in connection with a Secured Hedge Agreement and Liens in favor of a Cash Management Bank in connection with a Secured Cash Management Agreement) and Liens on cash to Cash Collateralize Letters of Credit pursuant to <u>Section</u> <u>2.03(g)</u>;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Permitted Liens;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) other Liens on property in effect on the Effective Date to the extent set forth on <u>Schedule</u> <u>7.16</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Liens on shares of the capital stock of, or partnership interest in, any Excluded Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Liens on cash consisting of pledges to, deposits with or advances to announcers, broadcasters, on-air talent, promoters, producers or other third parties in connection with the development, booking, production, broadcast, promotion, execution, staging or presentations of shows, events or other entertainment activities or related merchandising, concessions or licensing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Liens on Collateral securing Incremental Equivalent Debt and Refinancing Equivalent Debt and any Permitted Refinancing Indebtedness in respect thereof; <u>provided</u> that (i) the aggregate principal amount of Indebtedness secured by such Liens shall not exceed the then available Incremental Facility Limit and (ii) such Liens shall be subject to (A) in the case of Incremental Equivalent Debt or Refinancing Equivalent Debt secured on a junior basis to the Obligations, a customary "junior lien" intercreditor agreement in form and substance reasonably satisfactory to the Administrative Agent and (B) in the case of Incremental Equivalent Debt or Refinancing Equivalent Debt secured on a *pari passu* basis with the Obligations, a customary "equal priority" intercreditor agreement in form and substance reasonably satisfactory to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Liens securing any Indebtedness permitted to be incurred pursuant to <u>Section</u> <u>7.14(i)</u> and any Permitted Refinancing Indebtedness in respect thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Liens on cash, Cash Equivalents, and other funds or securities on deposit or maintained with a depository institution, broker-dealer, securities or commodities broker or other financial intermediary, in each case arising in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Liens on the Securitization Assets arising in connection with a Qualified Securitization Financing permitted by Section 7.14(r); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) other Liens not otherwise permitted by this <u>Section</u> <u>7.16</u> securing obligations permitted under this Credit Agreement, so long as the aggregate outstanding principal amount of the obligations secured by such Liens do not exceed (as to the Company and all Restricted Subsidiaries) at any one time outstanding the greater of (A) $50,000,000 and (B) 40% of Adjusted Operating Income for the most recently completed Measurement Period as of the date of incurrence of such Liens;

<u>provided</u>, <u>however</u>, in no event shall the foregoing exceptions permit any Liens on the assets of, or any Equity Interests issued by, any Arena Subsidiary, other than (i) Permitted Liens not securing borrowed money or (ii) Liens permitted to be incurred pursuant to <u>Section</u> <u>7.16(i)</u>.

For purposes of determining compliance with this <u>Section</u> <u>7.16</u>, (A) Liens need not be permitted solely by reference to one category described above, but may be permitted in part under any relevant combination thereof, (B) in the event that any Lien (or any portion thereof) meets the criteria of more than one of the categories set forth above, the Company may, in its sole discretion, at the time such Lien is incurred or at any time thereafter, divide, classify or reclassify such Lien (or any portion thereof) in any manner that complies with this <u>Section</u> <u>7.16</u>; <u>provided</u> that all Liens outstanding under the Loan Documents shall be deemed to have been incurred only in reliance on <u>Section</u> <u>7.16(a)</u>.

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Section 7.17 <u>Investments</u>. Neither the Company nor any Restricted Subsidiary will, nor permit any Restricted Subsidiary to, directly or indirectly, (i) make any advances, loans, accounts receivable (other than accounts receivable arising in the ordinary course of business of the Company or such Restricted Subsidiary) or other extensions of credit (excluding, however, accrued and unpaid interest in respect of any advance, loan or other extension of credit) or a Guarantee or other similar obligation of such Person or capital contributions to (by means of transfers of property to others, or payments for property or services for the account or use of others, or otherwise) any Person (other than the Company or any Guarantor)), (ii) purchase or own any stocks, bonds, notes, debentures or other securities (including any interests in any partnership, joint venture or any similar enterprise) of, or any bank accounts with any Person (other than the Company or any Subsidiary Guarantor), or (iii) purchase or acquire (in one transaction or a series of transactions) assets of another Person that constitute a business unit or all or a substantial part of the business of, such Person (other than the Company or any Subsidiary Guarantor) (all such transactions referred to in <u>clauses</u> <u>(i)</u>, <u>(ii)</u> and <u>(iii)</u> being herein called "<u>Investments</u>"), except for (a) Investments in Excluded Subsidiaries in the ordinary course of business solely for the purposes of repairing, replacing, upgrading or otherwise maintaining operating assets; <u>provided</u> that the aggregate amount of all such Investments, when combined with the aggregate amount of Dispositions made pursuant to <u>Section</u> <u>7.24(a)</u>, does not exceed $100,000,000, (b) Permitted Investments, (c) from and after delivery to the Administrative Agent of the financial information with respect to the fiscal quarter ending December 31, 2022 required by <u>Section</u> <u>7.01(a)</u> and the related Compliance Certificate, other Investments so long as (i) the Company and the Restricted Subsidiaries are in pro forma compliance with the Financial Covenants at the time any such Investment is made after giving pro forma effect thereto and (ii) no Default shall have occurred and be continuing both immediately before and immediately after giving effect to such Investment (such compliance to be determined on the basis of the financial information most recently delivered to the Administrative Agent and the Lenders pursuant to <u>Section</u> <u>7.01(a)</u> or <u>(b)</u>) (d) (i) Investments in a special purpose securitization vehicle or any Investment by such vehicle in any other Person in connection with a Qualified Securitization Financing permitted by Section 7.01(r); provided, however, that any such Investment consists of Securitization Assets or equity, and (ii) distributions or payments of securitization fees and purchases of Securitization Assets in connection with a Qualified Securitization Financing; (e) Investments consisting of extensions of credit in the nature of accounts receivable or notes receivable arising from the grant of trade credit in the ordinary course of business, and Investments received in satisfaction or partial satisfaction thereof from financially troubled account debtors to the extent reasonably necessary in order to prevent or limit loss and any prepayments and other credits to suppliers, clients, developers or purchasers of sellers of goods or services made in the ordinary course of business; (f) loans or advances or other similar transactions with customers, distributors, clients, developers, artists, promoters, managers, suppliers or purchasers or sellers of goods or services, in each case, in the ordinary course of business; <u>provided</u> that any Investment constituting a transfer of property or assets other than cash and Cash Equivalents shall only be permitted to the extent that such transfer could be effected pursuant to <u>Section</u> <u>7.24</u>; (g) Investments consisting of Indebtedness (including Guarantees), Liens, Restricted Payments, fundamental changes and Dispositions permitted under <u>Sections 7.14</u><u> </u>(other than <u>clauses (h)</u> and <u>(i)(i)</u> thereof)<u>,</u> <u>7.16</u><u>,</u> <u>7.18</u><u>,</u> <u>7.23</u> <u>and</u> <u>7.24</u> <u>(other than</u> <u>clauses (a)(ii)</u> <u>and</u> <u>(b)</u> <u>thereof) and (h)</u> Investments by the Company or its Restricted Subsidiaries, if the Company or any Restricted Subsidiary would otherwise be permitted to make a Restricted Payment in such amount (<u>provided</u> that the amount of any such Investment shall also be deemed to be a Restricted Payment under the appropriate clause of <u>Section</u> <u>7.18</u> for all purposes of this Agreement); <u>provided</u> that the aggregate amount of all Investments made in Excluded Subsidiaries after the Effective Date (other than any Investments made pursuant to the foregoing <u>clauses (c)</u>, <u>(e)</u>, <u>(g)</u> and <u>(h)</u>) shall not exceed $100,000,000.

Section 7.18 <u>Restricted Payments</u>. Neither the Company nor any Restricted Subsidiary will, nor permit any Restricted Subsidiary to, directly or indirectly, make or declare any Restricted Payment (other than a Permitted Parent Payment) at any time, except

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) on the Effective Date, (i) so long as no Default or Event of Default shall have occurred and be continuing at the time such Restricted Payment is made or would result from the making or declaration of such Restricted Payment, a one-time Restricted Payment in cash in an amount not to exceed Excess Liquidity, calculated on a pro forma basis after giving effect to such Restricted Payment, the Existing Credit Agreement Refinancing, the other Transactions and the payment of costs and expenses in connection therewith and (ii) the Disposition to the Parent on the Effective Date of (x) the Equity Interests in MSG BCE, LLC and BCE and (y) Indebtedness owed by BCE to the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) from and after delivery to the Administrative Agent of the financial information with respect to the fiscal quarter ending December 31, 2022 required by <u>Section</u> <u>7.01(a)</u> and the related Compliance Certificate, other Restricted Payments so long as (i) the Company and the Restricted Subsidiaries are in pro forma compliance with the Financial Covenants at the time any such Restricted Payment is made after giving pro forma effect thereto and (ii) no Default or Event of Default shall have occurred and be continuing both immediately before and immediately after giving effect to such Restricted Payment (such compliance to be determined on the basis of the financial information most recently delivered to the Administrative Agent and the Lenders pursuant to <u>Section</u> <u>7.01(a)</u> or <u>(b)</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) each Restricted Subsidiary may make Restricted Payments to the Company and to any other Restricted Subsidiaries (and, in the case of a Restricted Payment by a non-wholly owned Restricted Subsidiary, to the Company or any such other Restricted Subsidiaries and to each other owner of Equity Interests of such Restricted Subsidiary ratably according to their relative ownership interests of the relevant class of Equity Interests);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Company and each of the Restricted Subsidiaries may declare and make dividend payments or other distributions payable solely in the form of Equity Interests of such Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) to the extent constituting Restricted Payments, the Company and the Restricted Subsidiaries may enter into and consummate transactions expressly permitted by any provision of <u>Section</u> <u>7.17</u> (other than <u>Section</u> <u>7.17(g)</u>), 7.23 (other than a merger or consolidation involving the Company), or 7.20 (other than <u>Section</u> <u>7.20(d)</u>, <u>(f)</u> and <u>(h)</u>).

Section 7.19 <u>Business</u>. Neither the Company nor any Restricted Subsidiary (but excluding any other Affiliate of the Company) shall, nor permit any Restricted Subsidiary to, directly engage in any material line of business substantially different from those lines of business conducted by the Company and the Restricted Subsidiaries on the Effective Date, other than any business reasonably related or incidental, complementary or ancillary thereto or a reasonable extension thereof (collectively, the "<u>Business</u>").

Section 7.20 <u>Transactions with Affiliates</u>(a) . Neither the Company nor any Restricted Subsidiary will, nor permit any Restricted Subsidiary to, effect any transaction with any of its Affiliates that is not a Restricted Subsidiary (including, for the avoidance of doubt, any transaction with (i) any Subsidiary of MSG Entertainment Corp. that is not the Company or a Subsidiary of the Company or (ii) any Dolan Family Interest Controlled Person) on terms that are, taken as a whole, less favorable in any material respect to the Company or such Restricted Subsidiary than would at the time be obtainable for a comparable transaction in arms-length dealing with an unrelated third party other than (a) overhead, office services and other ordinary course allocations of costs and services, in each case under this <u>clause</u> <u>(a)</u>, on a reasonable basis, (b) allocations of tax liabilities and other tax-related items among the Company and its Affiliates based in all material respects upon the financial income, taxable income, credits and other amounts directly related to the respective parties, to the extent that the share of such liabilities and other items allocable to the

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Company and the Restricted Subsidiaries shall not exceed the amount that such Persons would have been responsible for as a direct taxpayer, (c) agreements and arrangements set forth on <u>Schedule</u> <u>7.20</u> and amendments, renewals and extensions thereof on terms not materially less favorable in the aggregate to the interests of the Lenders than those in existence as of the date of this Credit Agreement, (d) Permitted Parent Payments, (e) Permitted Restricted Subsidiary Transactions, (f) Restricted Payments not prohibited under <u>Section</u> <u>7.18</u>, (g) Guarantees of Indebtedness of the Parent by the Company that are not prohibited under <u>Section</u> <u>7.14</u> or <u>Section</u> <u>7.16</u>, (h) any transaction or series of related transactions involving property or assets having a fair market value of no greater than $5,000,000 and (i) any Disposition of Securitization Assets or related assets in connection with any Qualified Securitization Financing.

Section 7.21 <u>Amendments of Certain Instruments</u>. Except in connection with transactions otherwise permitted hereunder, neither the Company nor any Restricted Subsidiary will, nor permit any Restricted Subsidiary to, amend, modify or supplement any of the provisions of its certificate of incorporation or by-laws or other constitutive documents other than amendments that would not be materially adverse to the interests of the Lenders.

Section 7.22 <u>Cash</u> <u>Management</u> <u>Arrangements</u>. The Company shall not, nor permit any Restricted Subsidiary to, materially change its cash management practices with respect to holding, or the sweeping of, cash at Restricted Subsidiaries that are not Subsidiary Guarantors without the consent of the Required Lenders.

Section 7.23 <u>Fundamental Changes</u>. Neither the Company nor any Restricted Subsidiary shall, nor permit any Restricted Subsidiary to, merge, dissolve, liquidate, consolidate with or into another Person, or Dispose of (whether in one transaction or in a series of transactions) all or substantially all of the assets (whether now owned or hereafter acquired) of the Company and the Restricted Subsidiaries, taken as a whole, to or in favor of any Person, except that any Restricted Subsidiary may enter into a Permitted Restricted Subsidiary Transaction.

Section 7.24 <u>Dispositions</u>. Neither the Company nor any Restricted Subsidiary shall, nor permit any Restricted Subsidiary to, make any Disposition or enter into any agreement to make any Disposition except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Dispositions to Excluded Subsidiaries by the Company or any Guarantor in the ordinary course of business for the purposes of maintenance, repair or replacement of operating assets; <u>provided</u> that the aggregate amount of all such Dispositions, when combined with the aggregate amount of Investments made in reliance on <u>clause (a)</u> of <u>Section</u> <u>7.17</u>, does not exceed $100,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Dispositions between and among the Company and any Subsidiary; <u>provided</u> that, (i) if the transferor in such a transaction is a Loan Party, then either (A) the transferee must a Loan Party or (B) such Disposition shall be treated as an Investment and such Investment must be a permitted Investment in accordance with <u>Section</u> <u>7.17</u> and (ii) to the extent constituting a Disposition to a Subsidiary that is not a Loan Party, such Disposition is for fair value and otherwise permitted by <u>Section</u> <u>7.17</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Disposition that results in the concurrent or substantially concurrent repayment in full and termination of this Credit Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) other Dispositions; <u>provided</u> that (i) the Company and the Restricted Subsidiaries are in pro forma compliance with the Financial Covenants, both immediately before and immediately after giving effect to such Disposition, (ii) no Default shall have occurred and be continuing both immediately before and immediately after giving effect to such Disposition and (iii) at least 75% of the aggregate consideration for such Disposition shall be paid in cash or Cash Equivalents; <u>provided</u>, <u>however</u>, that any Disposition pursuant to this <u>Section</u> <u>7.24(d)</u> shall be for fair market value and shall be subject to the requirements of <u>Section</u> <u>2.05(b)</u>; <u>provided</u>, <u>further</u> that, for purposes of this provision, each of the following shall be deemed to be cash:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) instruments, notes, securities or other obligations received by the Company or such Restricted Subsidiary from the purchaser that within 180 days of the closing is converted by the Company or such Restricted Subsidiary to cash or Cash Equivalents, to the extent of the cash or Cash Equivalents actually so received and (B) any cash payments received with respect to instruments, notes, securities or other obligations referred to in <u>clause (A)</u> immediately above within 180 days of such Disposition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the assumption by the purchaser of Indebtedness or other obligations or liabilities (as shown on the Company's most recent balance sheet or in the footnotes thereto) of the Company or a Restricted Subsidiary pursuant to operation of law or a customary novation or assumption agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any Designated Non-Cash Consideration received by the Company or such Restricted Subsidiary in the Disposition, taken together with all other Designated Non-Cash Consideration received pursuant to this <u>clause (iii)</u> that is at that time outstanding, not to exceed $25,000,000 at the time of receipt of such outstanding Designated Non-Cash Consideration (with the fair market value (as reasonably determined by the Company in good faith) of each item of Designated Non-Cash Consideration being measured at the time received and without giving effect to subsequent changes in value);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any Disposition of the Specified Investments for fair market value to a Person that is not an Affiliate of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any Disposition of Securitization Assets to a special purpose securitization vehicle (or similar entity); <u>provided</u>, that such Disposition shall be for no less than the fair market value of such property at the time of such Disposition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Dispositions (other than of any interest in the Arena) to the extent of any exchange of like property (excluding any boot thereon permitted by such provision) for use in any business conducted by the Company or any of the Restricted Subsidiaries to the extent allowable under Section 1031 of the Code (or comparable or successor provision) or to the extent of any conversion allowable under Section 1033 of the Code (or comparable or successor provision);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Dispositions of property consisting of Events of Loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Disposition to Parent on the Effective Date of (x) the Equity Interests in MSG BCE, LLC and BCE and (y) Indebtedness owed by BCE to the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Dispositions in connection with sale and leaseback transactions in an amount not to exceed $25,000,000; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) other Dispositions involving assets having a collective fair market value of not greater than $10,000,000.

Section 7.25 <u>Accounting Changes</u>. Make any change in (a) accounting policies, except as required or permitted by GAAP, or (b) the fiscal quarter or fiscal year, except that upon not less than 10 Business Days' prior notice, the Company may change its fiscal year end from June 30 to December 31.

Section 7.26 <u>Negative Pledge</u><u>; Burdensome Agreements</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall not enter into or suffer to exist, or permit any of the Restricted Subsidiaries to enter into or suffer to exist, any agreement or other arrangement prohibiting or conditioning the creation or assumption of any Lien upon any of the Collateral except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) agreements in favor of the Secured Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) agreements governing Indebtedness secured by Liens permitted under <u>Section</u> <u>7.16(b)</u> so long as such restrictions extend only to the property acquired with or subject to such Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) agreements in existence on the Effective Date and set forth on <u>Schedule</u> <u>7.26(a)</u>, including any renewals, extensions or replacements of such agreements on terms not materially less favorable to the interests of the Lenders than those in effect on the date of this Credit Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Contractual Obligations solely to the extent that the lessor, licensor or counterparty imposes a negative pledge with respect to the Contractual Obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) agreements or other arrangements imposed by law or by this Credit Agreement or any other Loan Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) agreements that are binding on a Restricted Subsidiary at the time such Restricted Subsidiary first becomes a Restricted Subsidiary, so long as such agreements were not entered into in contemplation of such Person becoming a Restricted Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) agreements that include customary restrictions that arise in connection with any Lien permitted under <u>Section</u> <u>7.16</u> and relate to the property subject to such Lien or any Disposition permitted under <u>Section</u> <u>7.24</u> applicable pending such Disposition solely to the assets (including Equity Interests) subject to such Disposition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) agreements that include customary restrictions on leases, subleases, licenses or asset sale agreements otherwise permitted hereby so long as such restrictions relate to the assets subject thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) agreements that comprise restrictions imposed by any agreement relating to secured Indebtedness permitted pursuant to <u>Section</u> <u>7.14</u> to the extent that such restrictions apply only to the property or assets securing such Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) agreements that include customary provisions restricting subletting or assignment of any lease governing a leasehold interest of the Company or any Restricted Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) agreements that include customary provisions restricting assignment of any agreement entered into in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) agreements that include restrictions on cash or other deposits imposed by customers under contracts entered into in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) Contractual Obligations that arise in connection with cash or other deposits permitted under <u>Section</u> <u>7.16</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) Contractual Obligations that comprise restrictions that are, taken as a whole, in the good faith judgment of the Company, no more restrictive with respect to the Company or any Restricted Subsidiary than customary market terms for Indebtedness of such type or that the Company shall have determined in good faith will not affect its obligation or ability to make any payments required hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company shall not enter into or suffer to exist, or permit any of the Restricted Subsidiaries to enter into or suffer to exist, any agreement or other arrangement prohibiting or conditioning the ability of any Restricted Subsidiary to pay dividends or other distributions with respect to its Equity Interests or to make or repay loans or advances to the Company or any other Restricted Subsidiary or to Guarantee Indebtedness of the Company or any other Restricted Subsidiary except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) agreements in existence on the Effective Date and set forth on <u>Schedule 7.26(b)</u>, including any renewals, extensions or replacements of such agreements on terms not materially less favorable to the interests of the Lenders than those in effect on the date of this Credit Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) agreements or other arrangements imposed by law or by this Credit Agreement or any other Loan Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) customary provisions in joint venture agreements and other similar agreements applicable to currently existing joint ventures or joint ventures permitted under <u>Section</u> <u>7.17</u> and applicable solely to such joint venture entered into in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) agreements that are binding on a Restricted Subsidiary at the time such Restricted Subsidiary first becomes a Restricted Subsidiary, so long as such agreements were not entered into in contemplation of such Person becoming a Restricted Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) agreements that include customary restrictions that arise in connection with any Lien permitted under <u>Section</u> <u>7.16</u> and relate to the property subject to such Lien or any Disposition permitted under <u>Section</u> <u>7.24</u> applicable pending such Disposition solely to the assets (including Equity Interests) subject to such Disposition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) agreements that include customary restrictions on leases, subleases, licenses or asset sale agreements otherwise permitted hereby so long as such restrictions relate to the assets subject thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) agreements that comprise restrictions imposed by any agreement relating to secured Indebtedness permitted pursuant to <u>Section</u> <u>7.14</u> to the extent that such restrictions apply only to the property or assets securing such Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) agreements that include customary provisions restricting subletting or assignment of any lease governing a leasehold interest of the Company or any Restricted Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) agreements that include customary provisions restricting assignment of any agreement entered into in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) agreements that include restrictions on cash or other deposits imposed by customers under contracts entered into in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) Contractual Obligations that arise in connection with cash or other deposits permitted under <u>Section</u> <u>7.16</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) Contractual Obligations that comprise restrictions that are, taken as a whole, in the good faith judgment of the Company, no more restrictive with respect to the Company or any Restricted Subsidiary than customary market terms for Indebtedness of such type or that the Company shall have determined in good faith will not affect its obligation or ability to make any payments required hereunder.

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Section 7.27 <u>Anti</u><u>-Corruption Laws and Sanctions</u>. The Company will not request any Borrowing or Letter of Credit, and the Company shall not use, and shall procure that the Subsidiaries and its or their respective directors, officers, employees and agents shall not use, the proceeds of any Borrowing or Letter of Credit (a) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (b) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, or (c) in any other manner that would result in the violation of any Sanctions applicable to any party hereto.

Section 7.28 <u>Optional</u> <u>Payments</u> <u>and Modifications of Subordinated Debt</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company will not, and will not permit any of its Subsidiaries to, make or offer to make any optional or voluntary payment, prepayment, repurchase or redemption of or otherwise optionally or voluntarily defease or segregate funds with respect to any Subordinated Indebtedness (collectively, "<u>Restricted Debt Payments</u>"), except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) payments of regularly scheduled interest (including any penalty interest, if applicable) and payments of fees, expenses and indemnification obligations as and when due (other than payments with respect to subordinated Indebtedness that are prohibited by the subordination provisions thereof) and, to the extent the Maturity Date (as determined as of the date of incurrence of such subordinated Indebtedness) is extended pursuant to the terms hereof, payments of principal at scheduled maturity of such subordinated Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the repayment, redemption, repurchase, defeasance or other acquisition or retirement for value of subordinated Indebtedness (x) with the net cash proceeds of, or in exchange for, any Permitted Refinancing Indebtedness, (y) in exchange for, or out of the proceeds of, a substantially concurrent cash or non-cash contribution (within 60 days deemed as substantially concurrent) to the capital of the Company or a substantially concurrent offering (with any offering within 60 days deemed as substantially concurrent) of equity interests of the Company or (z) in anticipation of satisfying a sinking fund obligation, principal installment or final maturity, in each case due within one year of the date of such repayment, prepayment, redemption, repurchase, defeasance, acquisition or retirement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) from and after delivery to the Administrative Agent of the financial information with respect to the fiscal quarter ending December 31, 2022 required by <u>Section</u> <u>7.01(a)</u> and the related Compliance Certificate, other Restricted Debt Payments so long as (i) the Company and the Restricted Subsidiaries are in pro forma compliance with the Financial Covenants at the time any such Restricted Debt Payment is made after giving pro forma effect thereto and (ii) no Default or Event of Default shall have occurred and be continuing both immediately before and immediately after giving effect to such Restricted Debt Payment (such compliance to be determined on the basis of the financial information most recently delivered to the Administrative Agent and the Lenders pursuant to <u>Section</u> <u>7.01(a)</u> or <u>(b)</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company will not, and will not permit any of its Subsidiaries to, amend, modify, waive or otherwise change, or consent or agree to any amendment, modification, waiver or other change to, any of the terms (taken as a whole) of any subordinated Indebtedness in any manner materially adverse to the interests of the Administrative Agent or the Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Financial Covenants</u>:

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Section 7.29 <u>Total Leverage Ratio</u>. The Company and the Restricted Subsidiaries (on a consolidated basis) shall not permit the Total Leverage Ratio to exceed (a) in the case of the Measurement Periods ending on June 30, 2023, September 30, 2023, December 31, 2023 and March 31, 2024, 6.00:1.00, (b) in the case of the Measurement Periods ending after March 31, 2024 and on or prior to March 31, 2026, 5.50:1.00, and (c) in the case of any Measurement Period ending after March 31, 2026, 4.50:1.00. Such covenant shall be tested as of the last date of the applicable Measurement Period, upon the delivery of the Compliance Certificate with respect to such Measurement Period.

Section 7.30 <u>Debt Service Coverage Ratio</u>. The Company and the Restricted Subsidiaries (on a consolidated basis) shall maintain a Debt Service Coverage Ratio of not less than (a) in the case of each Measurement Period ending after September 30, 2022 and on or prior to June 30, 2024, 2.00:1.00, and (b) in the case of any Measurement Period ending after June 30, 2024, 2.50:1.00. Such covenant shall be tested as of the last date of the applicable Measurement Period,<u> </u>upon the delivery of the Compliance Certificate with respect to such Measurement Period.

Section 7.31 <u>Minimum</u><u> </u><u>Liquidity</u>. The Company shall not permit, as of the last day of any Quarter (beginning with the Quarter in which the Effective Date occurs), average daily Liquidity during the last month of such Quarter to be less than $50,000,000 (the "<u>Minimum Liquidity Level</u>").

**ARTICLE VIII** 

**EVENTS OF DEFAULT AND REMEDIES** 

Section 8.01 <u>Events</u> <u>of</u> <u>Default</u>. Each of the following shall constitute an "Event of Default":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any representation or warranty in this Credit Agreement or any other Loan Document or in any certificate, statement or other document furnished to the Lenders or the Administrative Agent pursuant hereto (including any amendment thereto), or any certification made or deemed to have been made by the Company or any Restricted Subsidiary to any Lender or the Administrative Agent hereunder, shall prove to have been incorrect, or shall be breached, in any material respect when made or deemed made; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Default in (x) the payment when due of any principal of any Loan or L/C Obligation or default in the deposit when due of funds as Cash Collateral in respect of L/C Obligations, or (y) default in the payment when due of interest on any Loan or on any L/C Obligation, or any fee due hereunder or any other amount payable to the Administrative Agent, any Lender or any L/C Issuer hereunder or under any other Loan Document, and the failure to pay such interest, fee or such other amount within five Business Days after the same becomes due; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Default by (i) the Company or any of the Restricted Subsidiaries in the performance or observance of any of its agreements in <u>Article</u> <u>VII</u> hereof (other than <u>Section</u> <u>7.01</u> (excluding <u>Section</u> <u>7.01(e)</u>), <u>Section</u> <u>7.02</u>, <u>Section</u> <u>7.04</u> (solely with respect to the maintenance of existence of the Company), <u>Sections</u> <u>7.05</u> through <u>7.08</u> (inclusive), <u>Sections 7.10</u> through <u>7.13</u> (inclusive), <u>Section</u> <u>7.17</u>, <u>Section</u> <u>7.19</u>, <u>Section</u> <u>7.20</u>) or (ii) the Parent in the performance or observance of any of its agreements in the Parent Negative Pledge Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Default by the Company or any of the Restricted Subsidiaries in the performance or observance of any of its other agreements herein (other than those specified in <u>Section</u> <u>8.01(b)</u> or <u>(c)</u>) or in any other Loan Document, which in each case shall remain unremedied for 30 days after notice thereof shall have been given to the Company by any Lender or the Administrative Agent (<u>provided</u> that such period shall be five days in the case of a default under <u>Section</u> <u>7.17</u>); or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any Indebtedness of the Company (including any Indebtedness hereunder) or any of the Restricted Subsidiaries in an aggregate principal amount of $50,000,000 or more, excluding (i) any Indebtedness owing solely to the Company or a Restricted Subsidiary and (ii) any Indebtedness for the deferred purchase price of property or services owed to the Person providing such property or services as to which the Company or such Restricted Subsidiary has a good faith basis to believe is not due and owing and, to the extent then appropriate, is contesting its obligation to pay the same in good faith and by proper proceedings and for which the Company or such Restricted Subsidiary has established appropriate reserves (such Indebtedness under <u>clauses</u> <u>(i)</u> and <u>(ii)</u> above herein called "<u>Excluded Indebtedness</u>"), shall (i) become due before stated maturity by the acceleration of the maturity thereof by reason of default or (ii) become due by its terms and shall not be promptly paid or extended; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Any default under any indenture, credit agreement or loan agreement or other agreement or instrument under which Indebtedness of the Company or any of the Restricted Subsidiaries constituting indebtedness for borrowed money in an aggregate principal amount of $50,000,000 or more is outstanding (other than Excluded Indebtedness), or by which any such Indebtedness is evidenced, shall have occurred and shall continue for a period of time sufficient to permit the holder or holders of any such Indebtedness (or a trustee or agent on its or their behalf) to accelerate the maturity thereof or to enforce any Lien provided for by any such indenture, agreement or instrument, as the case may be, unless such default shall have been permanently waived by the respective holder of such Indebtedness; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Company or any of the Restricted Subsidiaries shall (i) apply for or consent to the appointment of, or the taking of possession by, a receiver, custodian, trustee or liquidator of itself or of all or a substantial part of its property, (ii) admit in writing its inability, or be generally unable, to pay its debts as they become due, (iii) make a general assignment for the benefit of creditors, (iv) be adjudicated as bankrupt or insolvent, (v) commence a voluntary case under any Debtor Relief Law (as now or hereafter in effect), (vi) file a petition seeking to take advantage of any Debtor Relief Law or (vii) acquiesce in writing to, or fail to controvert in a timely and appropriate manner, any petition filed against the Company or any Restricted Subsidiary in any involuntary case under any such Debtor Relief Law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) A case or other proceeding shall be commenced, without the application, approval or consent of the Company or any of the Restricted Subsidiaries, in any court of competent jurisdiction, seeking the liquidation, reorganization, dissolution, winding up, or composition or readjustment or debts of the Company or any Restricted Subsidiary, the appointment of a trustee, receiver, custodian, liquidator or the like of the Company or such Restricted Subsidiary or of all or any substantial part of its assets, or any other similar action with respect to the Company or such Restricted Subsidiary under any Debtor Relief Law, and such case or proceeding shall continue undismissed, or unstayed and in effect, for any period of 30 consecutive days, or an order for relief against the Company or any Restricted Subsidiary shall be entered in an involuntary case under any Debtor Relief Law (as now or hereafter in effect); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (i) A judgment for the payment of money in excess of $25,000,000 shall be rendered against the Company or any Restricted Subsidiary and such judgment shall remain unsatisfied and in effect for any period of 30 consecutive days without a stay of execution or (if a stay is not provided for by applicable law) without having been fully bonded, or (ii) any one or more non-monetary final judgments shall be rendered against the Company or any Restricted Subsidiary that, individually or in the aggregate, have or would reasonably be expected to have a Material Adverse Effect; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Except as would not have a Material Adverse Effect, (i) any Termination Event shall occur; (ii) any Person shall engage in any Prohibited Transaction involving any Plan; (iii) the Company or any ERISA Affiliate is in "default" (as defined in Section 4219(c)(5) of ERISA) with respect to payments to a Multiemployer Plan resulting from the Company's or any ERISA Affiliate's complete or partial withdrawal (as described in Section 4203 or 4205 of ERISA) from such Plan; (iv) the conditions for imposition of a

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lien under Section 303(k) of ERISA shall have been met with respect to a Plan; (v) a determination that any Plan is in "at risk" status (within the meaning of Section 430 of the Code or Section 303 of ERISA) or that any Multiemployer Plan to which the Company or any ERISA Affiliate contributes is in "endangered" or "critical status" within the meaning of Section 432 of the Code or Section 305 of ERISA; (vi) the Company or any ERISA Affiliate shall fail to pay when due an amount which is payable by it to the PBGC or to a Plan under Title IV of ERISA; (vii) a proceeding shall be instituted by a fiduciary of any Plan against the Company or any ERISA Affiliate to enforce Section 515 of ERISA and such proceeding shall not have been dismissed within 30 days thereafter; or (viii) the assumption of, or any material increase in, the contingent liability of the Company or any Restricted Subsidiary with respect to any post-retirement welfare liability; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Any Collateral Document after delivery thereof pursuant to <u>Sections</u> <u>5.01</u> or <u>7.10</u> shall for any reason (other than pursuant to the terms thereof) cease to create a valid and perfected first priority Lien (subject to Liens permitted by <u>Section</u> <u>7.16</u>) on a material portion of the Collateral other than as a result of any action or inaction by the Administrative Agent, and such condition shall remain unremedied for a period of 30 days after the earlier of (i) knowledge of such Default by a senior executive of the Company and (ii) notice in writing thereof being given to the Company by any Lender or the Administrative Agent; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The Company or any Restricted Subsidiary asserts or any Person obtains a judgment establishing that (i) any material provision of the Loan Documents is invalid, not binding or unenforceable or (ii) the Lien created, or purported to be created, by the Loan Documents is not a valid and perfected first priority security interest in the property in which such Lien is created, or purported to be created, pursuant to the Loan Documents; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) There occurs any Change of Control; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) There occurs any material default under any Arena License Agreement by any party thereto, including any material (i) "Rangers Default" (as defined therein) under the Rangers Arena License Agreement or (ii) "Knicks Default" (as defined therein) under the Knicks Arena License Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Any Arena License Agreement is terminated or ceases to be in full force and effect.

Section 8.02 <u>Remedies upon Event of Default</u>. If any Event of Default occurs and is continuing, the Administrative Agent shall, at the request of, or may, with the consent of, the Required Lenders, take any or all of the following actions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) declare the commitment of each Lender to make Loans and any obligation of each L/C Issuer to make L/C Credit Extensions to be terminated, whereupon such commitments and obligation shall be terminated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) declare the unpaid principal amount of all outstanding Loans, all interest accrued and unpaid thereon, and all other amounts owing or payable to any Lender hereunder or under any other Loan Document to be immediately due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) require that the Company Cash Collateralize the L/C Obligations (in an amount equal to the then Outstanding Amount thereof); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) exercise on behalf of itself, the Lenders and the L/C Issuers all rights and remedies available to it and such Lenders under the Loan Documents;

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<u>provided</u>, <u>however</u>, that upon the occurrence of an actual or deemed entry of an order for relief with respect to the Company under the Bankruptcy Code, the obligation of each Lender to make Loans and any obligation of each L/C Issuer to make L/C Credit Extensions shall automatically terminate and the unpaid principal amount of all outstanding Loans and all interest and other amounts as aforesaid shall automatically become due and payable, and the obligation of the Company to Cash Collateralize the L/C Obligations as aforesaid shall automatically become effective, in each case without further act of the Administrative Agent or any Lender.

Section 8.03 <u>Application of Funds</u>. After the exercise of remedies provided for in <u>Section</u> <u>8.02</u> (or after the Loans have automatically become immediately due and payable and the L/C Obligations have automatically been required to be Cash Collateralized as set forth in the proviso to <u>Section</u> <u>8.02</u>), any amounts received on account of the Obligations shall be applied by the Administrative Agent in the following order (subject to any applicable intercreditor agreement):

<u>First</u>, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (including fees, charges and disbursements of counsel to the Administrative Agent and amounts payable under <u>Article</u> <u>III</u>) payable to the Administrative Agent in its capacity as such;

<u>Second</u>, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal, interest and Letter of Credit Fees) payable to the Lenders and the L/C Issuers (including fees, charges and disbursements of counsel to the respective Lenders and the L/C Issuers and amounts payable under <u>Article</u> <u>III</u>), ratably among them in proportion to the respective amounts described in this <u>clause</u> <u>Second</u> payable to them;

<u>Third</u>, to payment of that portion of the Obligations constituting accrued and unpaid Letter of Credit fees and interest on the Loans, L/C Borrowings and other Obligations, to the extent due and payable, ratably among the Lenders and the L/C Issuers in proportion to the respective amounts described in this <u>clause</u> <u>Third</u> payable to them;

<u>Fourth</u>, to payment of that portion of the Obligations constituting unpaid principal of the Loans, L/C Borrowings and amounts owing under Secured Hedge Agreements and Secured Cash Management Agreements, and which have become due and owing, ratably among the Lenders, the L/C Issuers, the Hedge Banks and the Cash Management Banks in proportion to the respective amounts described in this <u>clause</u> <u>Fourth</u> held by them;

<u>Fifth</u>, to the Administrative Agent for the account of the L/C Issuers, to Cash Collateralize that portion of L/C Obligations comprised of the aggregate undrawn amount of Letters of Credit; and

<u>Last</u>, the balance, if any, after all of the Obligations have been paid in full, to the Company or as otherwise required by Law.

Subject to <u>Section</u> <u>2.03(c)</u>, amounts used to Cash Collateralize the aggregate undrawn amount of Letters of Credit pursuant to <u>clause</u> <u>Fifth</u> above shall be applied to satisfy drawings under such Letters of Credit as they occur. If any amount remains on deposit as Cash Collateral after all Letters of Credit have either been fully drawn or expired, such remaining amount shall be applied to the other Obligations, if any, in the order set forth above.

Notwithstanding the foregoing, no amounts received from any Guarantor shall be applied to any Excluded Swap Obligation of such Guarantor.

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**ARTICLE IX** 

**THE ADMINISTRATIVE AGENT** 

Section 9.01 <u>Appointment and Authority</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Lenders and the L/C Issuers hereby irrevocably appoints JPMorgan to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. The provisions of this Article are solely for the benefit of the Administrative Agent, the Lenders and the L/C Issuers, and neither the Company nor any other Loan Party shall have rights as a third party beneficiary of any of such provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Administrative Agent shall also act as the collateral agent under the Loan Documents, and each of the Lenders (in its capacities as a Lender, potential Hedge Bank and potential Cash Management Bank) and the L/C Issuers hereby irrevocably appoints and authorizes the Administrative Agent to act as the agent of such Lender and such L/C Issuer for purposes of acquiring, holding and enforcing any and all Liens on Collateral granted by any of the Loan Parties to secure any of the Obligations, together with such powers and discretion as are reasonably incidental thereto. In this connection, the Administrative Agent, as collateral agent, and any co-agents, sub-agents and attorneys-in-fact appointed by the Administrative Agent pursuant to <u>Section</u> <u>9.05</u> for purposes of holding or enforcing any Lien on the Collateral (or any portion thereof) granted under the Collateral Documents, or for exercising any rights and remedies thereunder at the direction of the Administrative Agent), shall be entitled to the benefits of all provisions of this <u>Article</u> <u>IX</u> and <u>Article</u> <u>X</u> (including <u>Section</u> <u>10.04(c)</u>, as though such co-agents, sub-agents and attorneys-in-fact were the collateral agent under the Loan Documents) as if set forth in full herein with respect thereto.

Section 9.02 <u>Rights as a Lender</u>. The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent and the term "Lender" or "Lenders" shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from, lend money to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Company or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.

Section 9.03 <u>Exculpatory Provisions</u>. The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents. Without limiting the generality of the foregoing, the Administrative Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents), <u>provided</u> that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or applicable law; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Company or any of its Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity.

The Administrative Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in <u>Section</u> <u>10.01</u> and <u>Section</u> <u>8.02</u>) or (ii) in the absence of its own gross negligence or willful misconduct. The Administrative Agent shall be deemed not to have knowledge of (x) any notice of any of the events or circumstances set forth or described in <u>Section</u> <u>7.01(e)</u> unless and until written notice thereof stating that it is a "notice under Section 7.01(e)" in respect of this Credit Agreement and identifying the specific clause under such Section is given to the Administrative Agent by the Company or (y) notice of any Default or Event of Default unless and until written notice (stating that it is a "notice of Default" or a "notice of Event of Default") describing such Default or Event of Default is given to the Administrative Agent by the Company, a Lender or an L/C Issuer.

Section 9.04 <u>Reliance by Administrative Agent</u>. The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person (including, for the avoidance of doubt, in connection with the Administrative Agent's reliance on any Electronic Signature transmitted by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page). The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a Loan or the issuance of a Letter of Credit that by its terms must be fulfilled to the satisfaction of a Lender or an L/C Issuer, the Administrative Agent may presume that such condition is satisfactory to such Lender or such L/C Issuer unless the Administrative Agent shall have received notice to the contrary from such Lender or such <u>L/C Issuer</u> prior to the making of such Loan or the issuance of such Letter of Credit. The Administrative Agent may consult with legal counsel (who may be counsel for the Company), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

Section 9.05 <u>Delegation of Duties</u>. The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent.

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Section 9.06 <u>Resignation of Administrative Agent</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent may at any time give notice of its resignation to the Lenders, the L/C Issuers and the Company. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Company, to appoint a successor, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United States. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may on behalf of the Lenders and the L/C Issuers, appoint a successor Administrative Agent meeting the qualifications set forth above; <u>provided</u> that if the Administrative Agent shall notify the Company and the Lenders that no qualifying Person has accepted such appointment, then such resignation shall nonetheless become effective in accordance with such notice and (a) the retiring Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents (except that in the case of any collateral security held by the Administrative Agent on behalf of the Lenders or the L/C Issuers under any of the Loan Documents, the retiring Administrative Agent shall continue to hold such collateral security until such time as a successor Administrative Agent is appointed) and (b) all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender and each L/C Issuer directly, until such time as the Required Lenders appoint a successor Administrative Agent as provided for above in this Section. Upon the acceptance of a successor's appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring (or retired) Administrative Agent, and the retiring Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents (if not already discharged therefrom as provided above in this Section). The fees payable by the Company to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Company and such successor. After the retiring Administrative Agent's resignation or removal hereunder and under the other Loan Documents, the provisions of this Article and <u>Section</u> <u>10.03</u> shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring Administrative Agent was acting as Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Person serving as Administrative Agent is a Defaulting Lender pursuant to <u>clause (c)</u> of the definition thereof, the Required Lenders may, to the extent permitted by applicable law, by notice in writing to the Company and such Person remove such Person as Administrative Agent and, in consultation with the Company, appoint a successor. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days (or such earlier day as shall be agreed by the Required Lenders) (the "<u>Removal Effective Date</u>"), then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any resignation by, or removal of, JPMorgan as Administrative Agent pursuant to this Section shall also constitute its resignation or removal as an L/C Issuer. Upon the acceptance of a successor's appointment as Administrative Agent hereunder, (i) such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of such retiring L/C Issuer, (ii) such retiring L/C Issuer shall be discharged from all of their respective duties and obligations hereunder or under the other Loan Documents, and (iii) such successor L/C Issuer shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or make other arrangements satisfactory to such retiring L/C Issuer to effectively assume the obligations of such retiring L/C Issuer with respect to such Letters of Credit.

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Section 9.07 <u>Non</u><u>-Reliance on Administrative Agent and Other Lenders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Lender and each L/C Issuer represents and warrants that (i) the Loan Documents set forth the terms of a commercial lending facility, (ii) it is engaged in making, acquiring or holding commercial loans and in providing other facilities set forth herein as may be applicable to such Lender in the ordinary course of business, and not for the purpose of purchasing, acquiring or holding any other type of financial instrument (and each Lender agrees not to assert a claim in contravention of the foregoing), (iii) it has, independently and without reliance upon the Administrative Agent, the Lead Arranger, the Syndication Agent or any other Lender or any of the Related Parties of any of the foregoing, and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Credit Agreement as a Lender, and to make, acquire or hold Loans hereunder and (iv) it is sophisticated with respect to decisions to make, acquire and/or hold commercial loans and to provide other facilities set forth herein, as may be applicable to such Lender, and either it, or the Person exercising discretion in making its decision to make, acquire and/or hold such commercial loans or to provide such other facilities, is experienced in making, acquiring or holding such commercial loans or providing such other facilities. Each Lender and each L/C Issuer also acknowledges that it will, independently and without reliance upon the Administrative Agent, the Lead Arranger, the Syndication Agent or any other Lender, or any of the Related Parties of any of the foregoing, and based on such documents and information (which may contain material, non-public information within the meaning of the United States securities laws concerning the Company and its Affiliates) as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Credit Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Lender, by delivering its signature page to this Credit Agreement on the Effective Date, or delivering its signature page to an Assignment and Assumption or any other Loan Document pursuant to which it shall become a Lender hereunder, shall be deemed to have acknowledged receipt of, and consented to and approved, each Loan Document and each other document required to be delivered to, or be approved by or satisfactory to, the Administrative Agent or the Lenders on the Effective Date

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i) Each Lender and each L/C Issuer hereby agrees that (A) if the Administrative Agent notifies such Lender or such L/C Issuer that the Administrative Agent has determined in its sole discretion that any funds received by such Lender or such L/C Issuer from the Administrative Agent or any of its Affiliates (whether as a payment, prepayment or repayment of principal, interest, fees or otherwise; individually and collectively, a "<u>Payment</u>") were erroneously transmitted to such Lender or such L/C Issuer (whether or not known to such Lender or such L/C Issuer), and demands the return of such Payment (or a portion thereof), such Lender or such L/C Issuer shall promptly, but in no event later than one Business Day thereafter, return to the Administrative Agent the amount of any such Payment (or portion thereof) as to which such a demand was made in same day funds, together with interest thereon in respect of each day from and including the date such Payment (or portion thereof) was received by such Lender or such L/C Issuer to the date such amount is repaid to the Administrative Agent at the greater of the NYFRB Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect, and (B) to the extent permitted by applicable Law, such Lender or such L/C Issuer shall not assert, and hereby waives, as to the Administrative Agent, any claim, counterclaim, defense or right of setoff or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Payments received, including without limitation any defense based on "discharge for value" or any similar doctrine. A notice of the Administrative Agent to any Lender or L/C Issuer under this <u>Section</u> <u>9.07(c)</u> shall be conclusive, absent manifest error.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each Lender and each L/C Issuer hereby further agrees that if it receives a Payment from the Administrative Agent or any of its Affiliates (A) that is in a different amount than, or on a different date from, that specified in a notice of payment sent by the Administrative Agent (or any of its Affiliates) with respect to such Payment (a "<u>Payment Notice</u>") or (B) that was not preceded or accompanied by a Payment Notice, it shall be on notice, in each such case, that an error has been made with respect to such Payment. Each Lender and each L/C Issuer agrees that, in each such case, or if it otherwise becomes aware a Payment (or portion thereof) may have been sent in error, such Lender or such L/C Issuer shall promptly notify the Administrative Agent of such occurrence and, upon demand from the Administrative Agent, it shall promptly, but in no event later than one Business Day thereafter, return to the Administrative Agent the amount of any such Payment (or portion thereof) as to which such a demand was made in same day funds, together with interest thereon in respect of each day from and including the date such Payment (or portion thereof) was received by such Lender or such L/C Issuer to the date such amount is repaid to the Administrative Agent at the greater of the NYFRB Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company hereby agrees that (A) in the event an erroneous Payment (or portion thereof) is not recovered from any Lender or any L/C Issuer that has received such Payment (or portion thereof) for any reason, the Administrative Agent shall be subrogated to all the rights of such Lender or such L/C Issuer with respect to such amount and (B) an erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any obligations of the Company hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Each party's obligations under this <u>Section</u> <u>9.07(c)</u> shall survive the resignation or replacement of the Administrative Agent or any transfer of rights or obligations by, or the replacement of, a Lender or an L/C Issuer, as applicable, the termination of the Commitments or the repayment, satisfaction or discharge of all obligations of the Company hereunder.

Section 9.08 <u>No</u> <u>Other</u> <u>Duties, Etc</u><u>.</u> Anything herein to the contrary notwithstanding, none of the Lead Arranger or the Syndication Agent listed on the cover page hereof shall have any powers, duties or responsibilities under this Credit Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Administrative Agent, a Lender or an L/C Issuer hereunder.

Section 9.09 <u>Administrative Agent May File Proofs of Claim</u>. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Loan Party, the Administrative Agent (irrespective of whether the principal of any Loan or L/C Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Company) shall be entitled and empowered, by intervention in such proceeding or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, L/C Obligations and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders, the L/C Issuers and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the L/C Issuers and the Administrative Agent and their respective agents and counsel) and all other amounts due the Lenders, the L/C Issuers and the Administrative Agent under <u>Section</u> <u>2.09</u> allowed in such judicial proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

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and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender and each L/C Issuer to make such payments to the Administrative Agent and, if the Administrative Agent shall consent to the making of such payments directly to the Lenders and the L/C Issuers, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under <u>Section</u> <u>2.09</u>.

Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender or any L/C Issuer any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or any L/C Issuer or to authorize the Administrative Agent to vote in respect of the claim of any Lender or any L/C Issuer or in any such proceeding.

Section 9.10 <u>Collateral and Guaranty Matters</u>. Each Lender, each L/C Issuer and each of the other Secured Parties irrevocably authorizes the Administrative Agent to, and the Administrative Agent hereby agrees with the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to release any Lien on any Collateral and any other property granted to or held by the Administrative Agent under any Loan Document (i) upon termination of the Aggregate Commitments and payment in full of all Obligations (other than contingent indemnification obligations) and the expiration or termination or Cash Collateralization in accordance with <u>Section</u> <u>2.03(g)</u> of all Letters of Credit, or (ii) if approved, authorized or ratified in writing in accordance with <u>Section</u> <u>10.01</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Liens on any Collateral and any other property granted to or held by the Administrative Agent under any Loan Document will be automatically released if the property subject to such Lien is the subject of a Disposition or other transfer permitted under and accomplished in accordance with the terms of this Credit Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to release any Guarantor from its obligations under the Guaranty if such Person ceases to be a Subsidiary as a result of a transaction permitted hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to release any Lien upon any property becoming subject to a Securitization Financing to the extent required by the terms of such Securitization Financing.

Upon request by the Company or the Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative Agent's authority to release or subordinate its interest in particular types or items of property, or to release any Guarantor from its obligations under the Guaranty pursuant to this <u>Section</u> <u>9.10</u>. In each case as specified in this <u>Section</u> <u>9.10</u>, the Administrative Agent will, at the Company's expense, execute and deliver to the applicable Loan Party such documents as such Loan Party may reasonably request to evidence the release of such item of Collateral from the assignment and security interest granted under the Collateral Documents or to subordinate its interest in such item, or to release such Guarantor from its obligations under the Guaranty, in each case in accordance with the terms of the Loan Documents and this <u>Section</u> <u>9.10</u>.

Section 9.11 <u>Credit</u> <u>Bidding</u>(a) . The Secured Parties hereby irrevocably authorize the Administrative Agent, at the direction of the Required Lenders, to credit bid all or any portion of the Obligations (including by accepting some or all of the Collateral in satisfaction of some or all of the Obligations pursuant to a deed in lieu of foreclosure or otherwise) and in such manner purchase (either directly or through one or more acquisition vehicles) all or any portion of the Collateral (a) at any sale thereof conducted under the provisions of the Bankruptcy Code, including under Sections 363, 1123 or 1129 of the Bankruptcy Code, or any similar laws in any other jurisdictions to which a Loan Party is subject, or (b) at any other sale, foreclosure or acceptance of collateral in lieu of debt conducted by (or with the consent or at the direction of) the Administrative Agent (whether by judicial action or otherwise) in accordance with any applicable law. In connection with any such credit bid and purchase, the Obligations

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owed to the Secured Parties shall be entitled to be, and shall be, credit bid by the Administrative Agent at the direction of the Required Lenders on a ratable basis (with Obligations with respect to contingent or unliquidated claims receiving contingent interests in the acquired assets on a ratable basis that shall vest upon the liquidation of such claims in an amount proportional to the liquidated portion of the contingent claim amount used in allocating the contingent interests) for the asset or assets so purchased (or for the equity interests or debt instruments of the acquisition vehicle or vehicles that are issued in connection with such purchase). In connection with any such bid, (i) the Administrative Agent shall be authorized to form one or more acquisition vehicles and to assign any successful credit bid to such acquisition vehicle or vehicles, (ii) each of the Secured Parties' ratable interests in the Obligations which were credit bid shall be deemed without any further action under this Credit Agreement to be assigned to such vehicle or vehicles for the purpose of closing such sale, (iii) the Administrative Agent shall be authorized to adopt documents providing for the governance of the acquisition vehicle or vehicles (<u>provided</u> that any actions by the Administrative Agent with respect to such acquisition vehicle or vehicles, including any disposition of the assets or equity interests thereof, shall be governed, directly or indirectly, by, and the governing documents shall provide for, control by the vote of the Required Lenders or their permitted assignees under the terms of this Credit Agreement or the governing documents of the applicable acquisition vehicle or vehicles, as the case may be, irrespective of the termination of this Credit Agreement and without giving effect to the limitations on actions by the Required Lenders contained in <u>Section</u> <u>10.01</u> of this Credit Agreement), (iv) the Administrative Agent on behalf of such acquisition vehicle or vehicles shall be authorized to issue to each of the Secured Parties, ratably on account of the relevant Obligations which were credit bid, interests, whether as equity, partnership interests, limited partnership interests or membership interests, in any such acquisition vehicle and/or debt instruments issued by such acquisition vehicle, all without the need for any Secured Party or acquisition vehicle to take any further action, and (v) to the extent that Obligations that are assigned to an acquisition vehicle are not used to acquire Collateral for any reason (as a result of another bid being higher or better, because the amount of Obligations assigned to the acquisition vehicle exceeds the amount of Obligations credit bid by the acquisition vehicle or otherwise), such Obligations shall automatically be reassigned to the Secured Parties pro rata with their original interest in such Obligations and the equity interests and/or debt instruments issued by any acquisition vehicle on account of such Obligations shall automatically be cancelled, without the need for any Secured Party or any acquisition vehicle to take any further action. Notwithstanding that the ratable portion of the Obligations of each Secured Party are deemed assigned to the acquisition vehicle or vehicles as set forth in <u>clause (ii)</u> above, each Secured Party shall execute such documents and provide such information regarding the Secured Party (and/or any designee of the Secured Party which will receive interests in or debt instruments issued by such acquisition vehicle) as the Administrative Agent may reasonably request in connection with the formation of any acquisition vehicle, the formulation or submission of any credit bid or the consummation of the transactions contemplated by such credit bid.

Section 9.12 <u>Certain ERISA Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and its respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Company or any other Loan Party, that at least one of the following is and will be true:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Lender is not using "plan assets" (within the meaning of the Plan Asset Regulations) of one or more Benefit Plans with respect to such Lender's entrance into, participation in administration of and performance of the Loans, the Letters of Credit, the Commitments or this Credit Agreement,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Credit Agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (A) such Lender is an investment fund managed by a "Qualified Professional Asset Manager" (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Letters of Credit, the Commitments and this Credit Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Credit Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Credit Agreement, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition, unless either <u>sub-clause (i)</u> in the immediately preceding <u>clause (a)</u> is true with respect to a Lender or such Lender has provided another representation, warranty and covenant as provided in <u>sub-clause (iv)</u> in the immediately preceding <u>clause (a)</u>, such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and its Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Company or any other Loan Party, that none of the Administrative Agent, the Syndication Agent or any of their respective Affiliates is a fiduciary with respect to the Collateral or the assets of such Lender (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Credit Agreement, any Loan Document or any documents related to hereto or thereto).

**ARTICLE X** 

**MISCELLANEOUS** 

Section 10.01 <u>Amendments</u><u>, Etc</u><u>.</u> Except as provided in <u>Section</u> <u>3.03</u>, no amendment or waiver of any provision of this Credit Agreement or any other Loan Document, and no consent to any departure by the Company or any other Loan Party therefrom, shall be effective unless in writing signed by the Company or the applicable Loan Party, as the case may be, and the Required Lenders, and acknowledged by the Administrative Agent, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; <u>provided</u>, <u>however</u>, that no such amendment, waiver or consent shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) waive any condition set forth in <u>Section</u> <u>5.02</u>, or, in the case of the initial Credit Extension on the Effective Date, <u>Section</u> <u>5.01</u>, without the written consent of each Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) without limiting the generality of <u>clause</u> <u>(a)</u> above, waive any condition set forth in <u>Section</u> <u>5.02</u> as to any Credit Extension after the Effective Date under a Facility without the written consent of the Lenders holding more than 50% of the sum of (i) the Total Outstandings under such Facility (with the aggregate amount of each Lender's risk participation, funded participation in L/C Obligations under a Revolving Credit Facility being deemed "held" by such Lender under such Facility for purposes of this <u>clause (b)</u>) and (ii) the aggregate unused Commitments under such Facility;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) extend or increase the Commitment of any Lender (or reinstate any Commitment terminated pursuant to <u>Section</u> <u>8.02</u>) without the written consent of such Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) postpone any date fixed by this Credit Agreement or any other Loan Document for any payment (excluding mandatory prepayments) of principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under such other Loan Document without the written consent of each Lender entitled to such payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) reduce the principal of, or the rate of interest specified herein on, any Loan or L/C Borrowing, or (subject to <u>clause</u> <u>(iv)</u> of the second proviso to this <u>Section</u> <u>10.01</u>) any fees or other amounts payable hereunder or under any other Loan Document, without the written consent of each affected Lender; <u>provided</u>, <u>however</u>, that only the consent of the Required Lenders shall be necessary to amend the definition of "<u>Default Rate</u>" or to waive any obligation of the Company to pay interest or Letter of Credit Fees at the Default Rate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) (i) alter the pro rata sharing of payments required herein without the written consent of each affected Lender or (ii) change the order of application of any reduction in the Commitments or any prepayment of Loans among the Facilities from the application thereof set forth in the applicable provisions of <u>Section</u> <u>2.05(b)</u>, in any manner that materially and adversely affects the Lenders under a Facility without the written consent of each affected Lender, or (iii) <u>Section</u> <u>8.03</u>, without the written consent of each Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) change (i) any provision of this <u>Section</u> <u>10.01</u> or the definition of "<u>Required Lenders</u>" or any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder (other than the definition specified in <u>clause (ii)</u> of this <u>Section</u> <u>10.01(g)</u>), without the written consent of each Lender, or (ii) the definition of "Required Revolver Lenders" without the written consent of each Revolving Credit Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) release all or substantially all of the Collateral in any transaction or series of related transactions, without the written consent of each Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) subordinate the Obligations or the Liens in favor of the Administrative Agent securing the Obligations (either in priority or in right of payment), without the written consent of each Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) release or remove all or substantially all of the value of the Guaranty, without the written consent of each Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) change the definition of "<u>Applicable Percentage</u>" without the written consent of each Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) amend or waive (i) <u>Section</u> <u>7.14(i)</u> or the final proviso in <u>Section</u> <u>7.14</u> or (ii) <u>Section</u> <u>7.16(i)</u> or the final proviso in <u>Section</u> <u>7.16</u> without the written consent of Lenders holding more than 66% of the sum of the (a) Total Outstandings and (b) aggregate unused Commitments; <u>provided</u> that the unused Commitment of, and the portion of the Total Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of the required Lenders for this <u>Section</u> <u>10.01(l)</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) impose any greater restriction on the ability of any Lender under a Facility to assign any of its rights or obligations hereunder without the written consent of the Lenders holding more than 50% of

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the sum of (i) the Total Outstandings under such Facility (with the aggregate amount of each Lender's risk participation, funded participation in L/C Obligations under a Revolving Credit Facility being deemed "held" by such Lender under such Facility for purposes of this <u>clause (m)</u>) and (ii) the aggregate unused Commitments under such Facility.

<u>provided</u>, <u>further</u>, that (i) no amendment, waiver or consent shall, unless in writing and signed by each applicable L/C Issuer in addition to the Lenders required above, affect the rights or duties of such L/C Issuer under this Credit Agreement or any Issuer Document relating to any Letter of Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above, affect the rights or duties of the Administrative Agent under this Credit Agreement or any other Loan Document and (iii) the Fee Letters may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto. Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that (w) the Commitment of such Lender may not be increased or extended without the consent of such Lender, (x) the principal amount owed to such Lender may not be decreased or forgiven without the consent of such Lender unless such decrease or forgiveness also applies on a pro rata basis to all of the other Loans under the relevant Facility, (y) the rate of interest applicable to the Loans of such Lender may not be decreased without the consent of such Lender unless such interest rate decrease also applies to all of the other Loans under the relevant Facility, and (z) the Maturity Date applicable to any Loans of such Lender under any Facility may not be extended unless such extension also applies to all of the other Loans under the relevant Facility.

If any Lender does not consent to a proposed amendment, waiver, consent or release with respect to any Loan Document that requires the consent of each Lender or each affected Lender and that has been approved by the Required Lenders, the Company may (i) replace such non-consenting Lender in accordance with <u>Section</u> <u>10.12</u>; <u>provided</u> that such amendment, waiver, consent or release can be effected as a result of the assignment contemplated by such Section (together with all other such assignments required by the Company to be made pursuant to this paragraph) or (ii) with the prior written consent of the Required Lenders, terminate the Commitments of such Lender and repay all Obligations of the Company owing to such Lender relating to the Loans and participations (and Cash Collateralize all of the unfunded participations) held by such Lender as of the termination date.

If the Administrative Agent and the Company, acting together, identify any ambiguity, omission, mistake, typographical error or other defect in any provision of this Credit Agreement or any other Loan Document, then the Administrative Agent and the Company shall be permitted to amend, modify or supplement such provision to cure such ambiguity, omission, mistake, typographical error or other defect, and such amendment shall become effective without any further action or consent of any other party to this Credit Agreement; <u>provided</u> that the Administrative Agent shall post such amendment to the Lenders (which may be posted to the Approved Electronic Platform) reasonably promptly after the effectiveness thereof.

Section 10.02 <u>Notices;</u> <u>Effectiveness</u><u>; Electronic Communications</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notices Generally</u>. Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in <u>subsection</u> <u>(b)</u> below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile or electronic transmission as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to the Company, the Guarantors, the Administrative Agent or the L/C Issuers, to the address, facsimile number, electronic mail address or telephone number specified for such Person on <u>Schedule</u> <u>10.02</u>; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to any other Lender, to the address, facsimile number, electronic mail address or telephone number specified in its Administrative Questionnaire.

Notices and other communications sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices and other communications sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient). Notices and other communications delivered through electronic communications to the extent provided in <u>subsection</u> <u>(b)</u> below shall be effective as provided in such <u>subsection</u> <u>(b</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Electronic Communications</u>. Notices and other communications to the Lenders and the L/C Issuers hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, <u>provided</u> that the foregoing shall not apply to notices to any Lender or any L/C Issuer pursuant to <u>Article</u> <u>II</u> if such Lender or such L/C Issuer, as applicable, has notified the Administrative Agent that it is incapable of receiving notices under such Article by electronic communication. The Administrative Agent or the Company may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it, <u>provided</u> that approval of such procedures may be limited to particular notices or communications. The Company agrees that the Administrative Agent may, but shall not be obligated to, make any notices or other communications available to the Lenders and the L/C Issuers by posting such notices or other communications on IntraLinks<sup>TM</sup>, DebtDomain, SyndTrak, ClearPar or any other electronic platform chosen by the Administrative Agent to be its electronic transmission system (the "<u>Approved Electronic Platform</u>").

Although the Approved Electronic Platform and its primary web portal are secured with generally-applicable security procedures and policies implemented or modified by the Administrative Agent from time to time (including, as of the Effective Date, a user ID/password authorization system) and the Approved Electronic Platform is secured through a per-deal authorization method whereby each user may access the Approved Electronic Platform only on a deal-by-deal basis, each of the Lenders, each of the L/C Issuers and the Company acknowledges and agrees that the distribution of material through an electronic medium is not necessarily secure, that the Administrative Agent is not responsible for approving or vetting the representatives or contacts of any Lender that are added to the Approved Electronic Platform, and that there may be confidentiality and other risks associated with such distribution. Each of the Lenders, each of the L/C Issuers and the Company hereby approves distribution of notices and other communications through the Approved Electronic Platform and understands and assumes the risks of such distribution.

Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgement), <u>provided</u> that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient, and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing <u>clause</u> <u>(i)</u> of notification that such notice or communication is available and identifying the website address therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Approved Electronic Platform</u>. THE APPROVED ELECTRONIC PLATFORM IS PROVIDED "AS IS" AND "AS AVAILABLE." THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE COMPANY MATERIALS OR THE ADEQUACY OF THE APPROVED ELECTRONIC PLATFORM, AND EXPRESSLY DISCLAIM

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LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE COMPANY MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE COMPANY MATERIALS OR THE APPROVED ELECTRONIC PLATFORM. In no event shall the Administrative Agent or any of its Related Parties (collectively, the "<u>Agent Parties</u>") have any liability to the Company, any Lender, any L/C Issuer or any other Person for Liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of the Company's or the Administrative Agent's transmission of Company Materials through the Internet, except to the extent that such Liabilities or expenses are determined by a court of competent jurisdiction by a final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Agent Party; <u>provided</u>, <u>however</u>, that in no event shall any Agent Party have any liability to the Company, any Lender, any L/C Issuer or any other Person for indirect, special, incidental, consequential or punitive damages (as opposed to direct or actual damages).

Each Lender and each L/C Issuer agrees that notice to it (as provided in the next sentence) specifying that notices or other communications have been posted to the Approved Electronic Platform shall constitute effective delivery of notices or other communications to such Lender for purposes of the Loan Documents. Each Lender and L/C Issuer agreed (i) to notify the Administrative Agent in writing (which could be in the form of electronic communication) from time to time of such Lender's or L/C Issuer's (as applicable) email address to which the foregoing notice may be sent by electronic transmission and (ii) that the foregoing notice may be sent to such email address.

Each of the Lenders, each of the L/C Issuers and the Company agrees that the Administrative Agent may, but (except as may be required by applicable law) shall not be obligated to, store notices and other communications on the Approved Electronic Platform in accordance with the Administrative Agent's generally applicable document retention procedures and policies.

Nothing herein shall prejudice the right of the Administrative Agent, any Lender or any L/C Issuer to give any notice or other communication pursuant to any Loan Document in any other manner specified in such Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Change of Address, Etc</u>. Each of the Company, the Administrative Agent and the L/C Issuers may change its address, electronic mail address, facsimile or telephone number for notices and other communications hereunder by notice to the other parties hereto. Each other Lender may change its address, electronic mail address, facsimile or telephone number for notices and other communications hereunder by notice to the Company, the Administrative Agent and the L/C Issuers. In addition, each Lender agrees to notify the Administrative Agent from time to time to ensure that the Administrative Agent has on record (i) an effective address, contact name, telephone number, facsimile number and electronic mail address to which notices and other communications may be sent and (ii) accurate wire instructions for such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Reliance by Administrative Agent, Lenders and L/C Issuers</u>. The Administrative Agent, the Lenders and the L/C Issuers shall be entitled to rely and act upon any notices (including telephonic Committed Loan Notices) purportedly given by or on behalf of the Company even if (i) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof. The Company shall indemnify the Administrative Agent, each Lender, each L/C Issuer and the Related Parties of each of them from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of the Company. All telephonic notices to and other telephonic communications with the Administrative Agent may be recorded by the Administrative Agent, and each of the parties hereto hereby consents to such recording.

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Section 10.03 <u>No</u> <u>Waiver</u><u>; Cumulative Remedies</u>. No failure on the part of the Administrative Agent, any Lender or any L/C Issuer to exercise, and no delay by any such Person in exercising, and no course of dealing with respect to, any right, remedy, power or privilege under this Credit Agreement or any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege under this Credit Agreement or any other Loan Document preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The right, remedy, power or privilege provided herein, and provided under any other Loan Document, are cumulative and not exclusive of any right, remedy, power or privilege provided by law.

Section 10.04 <u>Expenses; Limitation of</u> <u>Liability</u><u>; Indemnity</u><u>, Etc.</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Costs and Expenses</u>. The Company shall pay (i) all reasonable, documented and invoiced out-of-pocket expenses incurred by the Administrative Agent and its Affiliates (including the reasonable fees, charges and disbursements one outside counsel for the Administrative Agent and, if reasonably necessary, one local counsel in each relevant material jurisdiction), in connection with the syndication of the credit facility provided for herein, the preparation, negotiation, execution, delivery and administration of this Credit Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket expenses incurred by any L/C Issuer in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all expenses incurred by the Administrative Agent, any Lender or any L/C Issuer (including the fees, charges and disbursements of one counsel for the Administrative Agent, the Lenders and the L/C Issuers, taken as a whole, and, if reasonably necessary, one local counsel in each relevant material jurisdiction and, in the case of a conflict of interest, one additional counsel (and one additional counsel in each relevant material jurisdiction) to each group of affected Lenders and L/C Issuers similarly situated, taken as a whole) in connection with the enforcement or protection of its rights (a) in connection with this Credit Agreement and the other Loan Documents, including its rights under this Section, or (b) in connection with Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Limitation of Liability</u>. To the extent permitted by applicable law (i) the Company and any Loan Party shall not assert, and the Company and each Loan Party hereby waives, any claim against the Administrative Agent, the Lead Arranger, the Syndication Agent, any Lender and any L/C Issuer, and any Related Party of any of the foregoing Persons ****for any Liabilities arising from the use by others of information or other materials (including, without limitation, any personal data) obtained through telecommunications, electronic or other information transmission systems (including the Internet), and (ii) no party hereto shall assert, and each such party hereby waives, any Liabilities against any other party hereto, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Credit Agreement, any other Loan Document, or any agreement or instrument contemplated hereby or thereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof; <u>provided</u> that, nothing in this <u>Section</u> <u>10.04(b)</u> shall relieve the Company and each Loan Party of any obligation it may have to indemnify an Indemnitee, as provided in <u>Section</u> <u>10.04(c)</u>, against any special, indirect, consequential or punitive damages asserted against such Indemnitee by a third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Indemnity</u>. The Company shall indemnify the Administrative Agent (and any sub-agent thereof), the Syndication Agent, each Lender, each L/C Issuer and each Related Party of any of the foregoing Persons (each such Person being called an "<u>Indemnitee</u>") against, and hold each Indemnitee harmless from, any and all Liabilities and related expenses (including the fees, charges and disbursements of one counsel for the Indemnitees, taken as a whole, and, if reasonably necessary, one local counsel in

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each relevant material jurisdiction and, in the case of a conflict of interest, one additional counsel (and one additional counsel in each relevant material jurisdiction) to each group of affected Indemnitees similarly situated, taken as a whole), and shall indemnify and hold harmless each Indemnitee from all fees and time charges and disbursements for attorneys who may be employees of any Indemnitee, incurred by any Indemnitee or asserted against any Indemnitee by any third party or by the Company or any other Loan Party arising out of, in connection with, or as a result of any (i) the execution or delivery of this Credit Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, or, in the case of the Administrative Agent (and any sub-agent thereof) and its Related Parties only, the administration of this Credit Agreement and the other Loan Documents, (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by any L/C Issuer to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by the Company or any of its Subsidiaries, or any Environmental Liability related in any way to the Company or any of its Subsidiaries, or (iv) any actual or prospective Proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether such Proceeding brought by a third party or by the Company or any other Loan Party or any of the Company's or such Loan Party's directors, shareholders or creditors, and regardless of whether any Indemnitee is a party thereto; <u>provided</u> that such indemnity shall not, as to any Indemnitee, be available to the extent that such Liabilities or related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted primarily from the gross negligence, bad faith or willful misconduct of such Indemnitee. This <u>Section</u> <u>10.04(c)</u> shall not apply with respect to Taxes other than any Taxes that represent losses, claims or damages arising from any non-Tax claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Lender Reimbursement</u>. Each Lender severally agrees to pay any amount required to be paid by the Company under <u>paragraphs (a)</u>, <u>(b)</u> or <u>(c)</u> of this <u>Section</u> <u>10.04</u> to the Administrative Agent, any L/C Issuer, and each Related Party of any of the foregoing Persons (each, an "<u>Agent-Related Person</u>") (to the extent not reimbursed by the Company and without limiting the obligation of the Company to do so), ratably according to their respective Applicable Percentage in effect on the date on which such payment is sought under this Section (or, if such payment is sought after the date upon which the Commitments shall have terminated and the Loans shall have been paid in full, ratably in accordance with such Applicable Percentage immediately prior to such date), from and against any and all Liabilities and related expenses, including the fees, charges and disbursements of any kind whatsoever that may at any time (whether before or after the payment of the Loans) be imposed on, incurred by or asserted against such Agent-Related Person in any way relating to or arising out of the Commitments, this Credit Agreement, any of the other Loan Documents or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted by such Agent-Related Person under or in connection with any of the foregoing; <u>provided</u> that the unreimbursed expense or Liability or related expense, as the case may be, was incurred by or asserted against such Agent-Related Person in its capacity as such; <u>provided</u> <u>further</u> that no Lender shall be liable for the payment of any portion of such Liabilities, costs, expenses or disbursements that are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted primarily from such Agent-Related Party's gross negligence or willful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Payments</u>. All amounts due under this <u>Section</u> <u>10.04</u> shall be payable not later than ten Business Days after demand therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Survival</u>. The agreements in this <u>Section</u> <u>10.04</u> shall survive the resignation of the Administrative Agent and any L/C Issuer, the replacement of any Lender, the termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all the other Obligations.

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Section 10.05 <u>Payments</u> <u>Set Aside</u>. To the extent that any payment by or on behalf of the Company is made to the Administrative Agent, any Lender or any L/C Issuer, or the Administrative Agent, any Lender or any L/C Issuer exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Administrative Agent, such Lender or such L/C Issuer in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred, and (b) each Lender and each L/C Issuer severally agrees to pay to the Administrative Agent upon demand its applicable share (without duplication) of any amount so recovered from or repaid by the Administrative Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate per annum equal to the NYFRB Rate from time to time in effect. The obligations of the Lenders and the L/C Issuers under <u>clause</u> <u>(b)</u> of the preceding sentence shall survive the payment in full of the Obligations and the termination of this Credit Agreement.

Section 10.06 <u>Successors</u> <u>and Assigns</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Successors and Assigns Generally</u>. The provisions of this Credit Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that neither the Company nor any other Loan Party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an Eligible Assignee in accordance with the provisions of <u>Section</u> <u>10.06(b)</u>, (ii) by way of participation in accordance with the provisions of <u>Section</u> <u>10.06(d)</u>, (iii) by way of pledge or assignment of a security interest subject to the restrictions of <u>Section</u> <u>10.06(f)</u>, or (iv) to an SPC in accordance with the provisions of <u>Section</u> <u>10.06(h)</u> (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Credit Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in <u>subsection</u> <u>(d)</u> of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the Lenders and the L/C Issuers) any legal or equitable right, remedy or claim under or by reason of this Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Assignments by Lenders</u>. Subject to the conditions set forth in <u>clauses (v)</u> and <u>(vi)</u> below, any Lender may at any time assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Credit Agreement (including all or a portion of its Commitment and Letter of Credit Commitments, and the Loans (including for purposes of this <u>Section</u> <u>10.06(b)</u>, participations in L/C Obligations) at the time owing to it); <u>provided</u> that any such assignment shall be subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Minimum Amounts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) in the case of an assignment of the entire remaining amount of the assigning Lender's Commitment and the Loans at the time owing to it under such Facility or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in any case not described in <u>subsection</u> <u>(b)(i)(A)</u> of this Section, the aggregate amount of the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment, determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the

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Administrative Agent or, if "Trade Date" is specified in the Assignment and Assumption, as of the Trade Date, shall not be less than $1,000,000, unless each of the Administrative Agent and, so long as no Specified Event of Default has occurred and is continuing, the Company otherwise consents (each such consent not to be unreasonably withheld or delayed); <u>provided</u>, <u>however</u>, that concurrent assignments to members of an Assignee Group and concurrent assignments from members of an Assignee Group to a single Eligible Assignee (or to an Eligible Assignee and members of its Assignee Group) will be treated as a single assignment for purposes of determining whether such minimum amount has been met;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Proportionate Amounts</u>. Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Credit Agreement with respect to the Loans or the Commitment assigned, except that this <u>clause</u> <u>(ii)</u> shall not prohibit any Lender from assigning all or a portion of its rights and obligations among separate Facilities on a non-pro rata basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Required Consents</u>. No consent shall be required for any assignment except to the extent required by <u>subsection</u> <u>(b)(i)(B)</u> of this Section and, in addition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the consent of the Company (such consent not to be unreasonably withheld or delayed) shall be required for an assignment to any Person unless (I) a Specified Event of Default has occurred and is continuing at the time of such assignment or (II) such assignment is to a Person that is a Lender, an Affiliate of a Lender, an Approved Fund, or solely with respect to the assignment of an Incremental Term Loan, the Company, an Affiliated Lender or a Subsidiary of the Company (each Person with respect to whom such Company consent has been received, or is not required under <u>clause (I)</u> or <u>clause (II)</u> of this sentence, an "<u>Eligible Assignee</u>"); <u>provided</u> that if a prospective assignee (x) is not a commercial bank, finance company, insurance company, financial institution or fund (a "<u>Non</u><u>-Financial Entity</u>"), the Company shall be deemed to be acting reasonably in withholding its consent if such person is a direct or indirect competitor of the Company as notified by the Company to the Administrative Agent within five Business Days after being informed of the identity of such Non-Financial Entity or (y) is a Lender that is a non-consenting Lender that the Company is at such time permitted to replace pursuant to <u>Section</u> <u>10.01</u> or otherwise is a Lender that the Company is at such time permitted to replace pursuant to <u>Section</u> <u>10.12</u>, the Company shall be deemed to be acting reasonably in withholding its consent; <u>provided</u>, <u>further</u>, that solely with respect to an assignment of any Term Loans, the Company shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within five Business Days after having received notice thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments in respect of any Commitment if such assignment is to a Person that is not a Lender with a Commitment in respect of the applicable Facility, an Affiliate of such Lender or an Approved Fund with respect to such Lender; <u>provided</u> that the Administrative Agent shall be deemed to be acting reasonably in withholding its consent to a prospective assignee that is a Defaulting Lender; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the consent of each L/C Issuer (such consent not to be unreasonably withheld or delayed) shall be required for any assignment that increases the obligation of the assignee to participate in exposure under one or more Letters of Credit (whether or not then outstanding).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Assignment and Assumption</u>. The parties to each assignment shall execute and deliver to the Administrative Agent (x) an Assignment and Assumption or (y) to the extent applicable, an agreement incorporating an Assignment and Assumption by reference to an Approved Electronic Platform as to which the Administrative Agent and the parties to the Assignment and Assumption are participants, together with a processing and recordation fee in the amount of $3,500; <u>provided</u>, <u>however</u>, that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment. The assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>No Assignment to Certain Persons</u>. No such assignment shall be made to (A) the Company or any of the Company's Affiliates or Subsidiaries, except in accordance with the definition of "Eligible Assignee" set forth in <u>Section</u> <u>1.01</u> or (B) any Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute a Defaulting Lender or a Subsidiary thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <u>No Assignment to Natural Persons</u>. No such assignment shall be made to a natural person (or holding company, investment vehicle or trust for, or owned and operated for the primary benefit of a natural person).

Subject to acceptance and recording thereof by the Administrative Agent pursuant to <u>subsection</u> <u>(c)</u> of this Section, from and after the effective date specified in each Assignment and Assumption, the Eligible Assignee thereunder shall be a party to this Credit Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Credit Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Credit Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender's rights and obligations under this Credit Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of <u>Section</u> <u>3.01</u>, <u>Section</u> <u>3.04</u>, <u>Section</u> <u>3.05</u> and <u>Section</u> <u>10.04</u> with respect to facts and circumstances occurring prior to the effective date of such assignment). Upon request, the Company (at its expense) shall execute and deliver a Note to the assignee Lender. Any assignment or transfer by a Lender of rights or obligations under this Credit Agreement that does not comply with this subsection shall be treated for purposes of this Credit Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with <u>Section</u> <u>10.06(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Register</u>. The Administrative Agent, acting solely for this purpose as an agent of the Company, shall maintain at the Administrative Agent's Office a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts of the Loans and L/C Obligations owing to, each Lender pursuant to the terms hereof from time to time (the "<u>Register</u>"). The entries in the Register shall be conclusive absent manifest error, and the Company, the Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Credit Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Company and any Lender at any reasonable time and from time to time upon reasonable prior notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Participations</u>. Any Lender may at any time, without the consent of, or notice to, the Company, the Administrative Agent or any L/C Issuer, sell participations to any Person (other than a natural person or the Company or any of the Company's Affiliates or Subsidiaries) (each, a "<u>Participant</u>") in all or a portion of such Lender's rights and/or obligations under this Credit Agreement (including all or a portion of its Commitment and/or the Loans (including such Lender's participations in L/C Obligations) owing to it); <u>provided</u> that (i) such Lender's obligations under this Credit Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such

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obligations, and (iii) the Company, the Administrative Agent, the Lenders and the L/C Issuers shall continue to deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Credit Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Credit Agreement and to approve any amendment, modification or waiver of any provision of this Credit Agreement; <u>provided</u> that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, waiver or other modification described in the first proviso to <u>Section</u> <u>10.01</u> that affects such Participant. Subject to <u>subsection</u> <u>(e)</u> of this Section, the Company agrees that each Participant shall be entitled to the benefits of <u>Section</u> <u>3.01</u>, <u>Section</u> <u>3.04</u> and <u>Section</u> <u>3.05</u> to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to <u>Section</u> <u>10.06(b)</u>. To the extent permitted by law, each Participant also shall be entitled to the benefits of <u>Section</u> <u>10.07</u> as though it were a Lender, <u>provided</u> such Participant agrees to be subject to <u>Section</u> <u>2.13</u> as though it were a Lender. Each Participant agrees to be subject to an agreement containing provisions substantially the same as those of <u>Section</u> <u>10.20</u>. Each Lender that sells a participation, acting solely for this purpose as a non-fiduciary agent of the Company, shall maintain a register analogous to the Register (a "<u>Participant Register</u>"); <u>provided</u> that no Lender shall have any obligation to disclose all or any portion of a Participant Register to any Person (including the identity of any Participant or any information relating to a Participant's interest in the rights and/or obligations under this Credit Agreement) except to the extent that such disclosure is necessary to establish that such interest is in registered form under Treasury Regulations Section 5f.103-1(c). The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Credit Agreement notwithstanding any notice to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Limitations upon Participant Rights</u>. A Participant shall not be entitled to receive any greater payment under <u>Section</u> <u>3.01</u> or <u>Section</u> <u>3.04</u> than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Company's prior written consent. A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of <u>Section</u> <u>3.01</u> unless the Company is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Company, to comply with <u>Section</u> <u>3.01(f)</u> as though it were a Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Certain Pledges</u>. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Credit Agreement (including under its Note, if any) to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; <u>provided</u> that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Electronic Execution of Assignments</u>. The words "execution," "signed," "signature," and words of like import in any Assignment and Assumption shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Special Purpose Funding Vehicles</u>. Notwithstanding anything to the contrary contained herein, any Lender (a "<u>Granting Lender</u>") may grant to a special purpose funding vehicle identified as such in writing from time to time by the Granting Lender to the Administrative Agent and the Company (an "<u>SPC</u>") the option to provide all or any part of any Loan that such Granting Lender would otherwise be obligated to make pursuant to this Credit Agreement; <u>provided</u> that (i) nothing herein shall constitute a

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commitment by any SPC to fund any Loan, and (ii) if an SPC elects not to exercise such option or otherwise fails to make all or any part of such Loan, the Granting Lender shall be obligated to make such Loan pursuant to the terms hereof or, if it fails to do so, to make such payment to the Administrative Agent as is required under <u>Section</u> <u>2.12(b)(ii)</u>. Each party hereto hereby agrees that (i) neither the grant to any SPC nor the exercise by any SPC of such option shall increase the costs or expenses or otherwise increase or change the obligations of the Company under this Credit Agreement (including its obligations under <u>Section</u> <u>3.04</u>), (ii) no SPC shall be liable for any indemnity or similar payment obligation under this Credit Agreement for which a Lender would be liable, and (iii) the Granting Lender shall for all purposes, including the approval of any amendment, waiver or other modification of any provision of any Loan Document, remain the lender of record hereunder. The making of a Loan by an SPC hereunder shall utilize the Commitment of the Granting Lender to the same extent, and as if, such Loan were made by such Granting Lender. In furtherance of the foregoing, each party hereto hereby agrees (which agreement shall survive the termination of this Credit Agreement) that, prior to the date that is one year and one day after the payment in full of all outstanding commercial paper or other senior debt of any SPC, it will not institute against, or join any other Person in instituting against, such SPC any bankruptcy, reorganization, arrangement, insolvency, or liquidation proceeding under the laws of the United States or any State thereof. Notwithstanding anything to the contrary contained herein, any SPC may (i) with notice to, but without prior consent of the Company and the Administrative Agent and with the payment of a processing fee in the amount of $3,500 (which processing fee may be waived by the Administrative Agent in its sole discretion), assign all or any portion of its right to receive payment with respect to any Loan to the Granting Lender and (ii) disclose on a confidential basis any non-public information relating to its funding of Loans to any rating agency, commercial paper dealer or provider of any surety or Guarantee or credit or liquidity enhancement to such SPC

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Resignation as L/C Issuer after Assignment</u>. Notwithstanding anything to the contrary contained herein, if at any time JPMorgan or any other L/C Issuer assigns all of its Revolving Credit Commitments and Revolving Credit Loans pursuant to <u>Section</u> <u>10.06(b)</u>, such L/C Issuer may upon 30 days' notice to the Company and the Lenders, resign as an L/C Issuer. In the event of any such resignation as an L/C Issuer, the Company shall be entitled to appoint from among the Lenders a successor L/C Issuer (so long as such appointee agrees to act as an L/C Issuer hereunder) hereunder; <u>provided</u>, <u>however</u>, that no failure by the Company to appoint any such successor shall affect the resignation of JPMorgan or any other L/C Issuer as an L/C Issuer. If any L/C Issuer resigns as L/C Issuer, it shall retain all the rights, powers, privileges and duties of the L/C Issuers hereunder with respect to all Letters of Credit outstanding as of the effective date of its resignation as an L/C Issuer and all L/C Obligations with respect thereto (including the right to require the Lenders to make ABR Loans or fund risk participations in Unreimbursed Amounts pursuant to <u>Section</u> <u>2.03(c)</u>). Upon the appointment and acceptance of a successor L/C Issuer, (a) such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring L/C Issuer, and (b) in the case of the appointment and acceptance of a successor L/C Issuer, the successor L/C Issuer shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or make other arrangements satisfactory to the retiring L/C Issuer to effectively assume the obligations of such retiring L/C Issuer with respect to such Letters of Credit.

Section 10.07 <u>Right of Setoff</u>. If an Event of Default shall have occurred and be continuing, each Lender, each L/C Issuer and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender, such L/C Issuer or any such Affiliate to or for the credit or the account of the Company or any other Loan Party against any and all of the obligations of the Company or such Loan Party now or hereafter existing under this Credit Agreement or any other Loan Document to such Lender or such L/C Issuer, irrespective of whether or not such Lender or such L/C Issuer shall have made any demand under this Credit Agreement or any other Loan Document

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and although such obligations of the Company or such Loan Party may be contingent or unmatured or are owed to a branch or office of such Lender or such L/C Issuer different from the branch or office holding such deposit or obligated on such indebtedness. The rights of each Lender, each L/C Issuer and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender, such L/C Issuer or their respective Affiliates may have. Each Lender and each L/C Issuer agrees to notify the Company and the Administrative Agent promptly after any such setoff and application, <u>provided</u> that the failure to give such notice shall not affect the validity of such setoff and application.

Section 10.08 <u>Interest Rate Limitation</u>. Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable Law (the "<u>Maximum Rate</u>"). If the Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such unpaid principal, refunded to the Company. In determining whether the interest contracted for, charged, or received by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable Law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations hereunder.

Section 10.09 <u>Counterparts; Integration; Effectiveness</u><u>; Electronic Execution</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Credit Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Credit Agreement and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in <u>Section</u> <u>5.01</u>, this Credit Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Delivery of an executed counterpart of a signature page of (x) this Credit Agreement, (y) any other Loan Document and/or (z) any document, amendment, approval, consent, information, notice (including, for the avoidance of doubt, any notice delivered pursuant to <u>Section</u> <u>10.02</u>), certificate, request, statement, disclosure or authorization related to this Credit Agreement, any other Loan Document and/or the transactions contemplated hereby and/or thereby (each an "<u>Ancillary Document</u>") ****that is an Electronic Signature transmitted by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page shall be effective as delivery of a manually executed counterpart of this Credit Agreement, such other Loan Document or such Ancillary Document, as applicable. The words "execution," "signed," "signature," "delivery," and words of like import in or relating to this Credit Agreement, any other Loan Document and/or any Ancillary Document shall be deemed to include Electronic Signatures, deliveries or the keeping of records in any electronic form (including deliveries by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page), each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be; <u>provided</u> that nothing herein shall require the Administrative Agent to accept Electronic Signatures in any form or format without its prior written consent and pursuant to procedures approved by it; <u>provided</u>, <u>further</u>, without limiting the foregoing, (i) to the extent the Administrative Agent has agreed to accept any Electronic Signature, the Administrative Agent and each of the Lenders shall be entitled to rely on such Electronic Signature purportedly given by or on behalf of the Company or any other Loan Party without

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further verification thereof and without any obligation to review the appearance or form of any such Electronic signature and (ii) upon the request of the Administrative Agent or any Lender, any Electronic Signature shall be promptly followed by a manually executed counterpart. Without limiting the generality of the foregoing, the Company and each Loan Party hereby (i) agree that, for all purposes, including without limitation, in connection with any workout, restructuring, enforcement of remedies, bankruptcy proceedings or litigation among the Administrative Agent, the Lenders, the Company and the Loan Parties, Electronic Signatures transmitted by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page and/or any electronic images of this Credit Agreement, any other Loan Document and/or any Ancillary Document shall have the same legal effect, validity and enforceability as any paper original, (ii) the Administrative Agent and each of the Lenders may, at its option, create one or more copies of this Credit Agreement, any other Loan Document and/or any Ancillary Document in the form of an imaged electronic record in any format, which shall be deemed created in the ordinary course of such Person's business, and destroy the original paper document (and all such electronic records shall be considered an original for all purposes and shall have the same legal effect, validity and enforceability as a paper record), (iii) waives any argument, defense or right to contest the legal effect, validity or enforceability of this Credit Agreement, any other Loan Document and/or any Ancillary Document based solely on the lack of paper original copies of this Credit Agreement, such other Loan Document and/or such Ancillary Document, respectively, including with respect to any signature pages thereto and (iv) waives any claim against any Indemnitee for any Liabilities arising solely from the Administrative Agent's and/or any Lender's reliance on or use of Electronic Signatures and/or transmissions by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page, including any Liabilities arising as a result of the failure of the Company and/or any Loan Party to use any available security measures in connection with the execution, delivery or transmission of any Electronic Signature.

Section 10.10 <u>Survival of Representations and Warranties</u>. All representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof. Such representations and warranties have been or will be relied upon by the Administrative Agent and each Lender, regardless of any investigation made by the Administrative Agent or any Lender or on their behalf and notwithstanding that the Administrative Agent or any Lender may have had notice or knowledge of any Default at the time of any Credit Extension, and shall continue in full force and effect as long as any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied or any Letter of Credit shall remain outstanding.

Section 10.11 <u>Severability</u>. If any provision of this Credit Agreement or the other Loan Documents is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Credit Agreement and the other Loan Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

Section 10.12 <u>Replacement of Lenders</u>. If any Lender requests compensation under <u>Section</u> <u>3.04</u>, or if the Company is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to <u>Section</u> <u>3.01</u>, or if any Lender gives a notice pursuant to <u>Section</u> <u>3.02</u>, or if any Lender is a Defaulting Lender, or if any Lender is a Non-Consenting Lender or if otherwise permitted under <u>Section</u> <u>10.01</u>, then the Company may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, <u>Section</u> <u>10.05</u>), all of its interests, rights and obligations under this Credit Agreement and the related Loan Documents to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment), <u>provided</u> that:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Company shall have paid to the Administrative Agent the assignment fee specified in <u>Section</u> <u>10.06(b)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and L/C Advances, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under <u>Section</u> <u>3.05</u>) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Company (in the case of all other amounts);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in the case of any such assignment resulting from a claim for compensation under <u>Section</u> <u>3.04</u> or payments required to be made pursuant to <u>Section</u> <u>3.01</u>, such assignment will result in a reduction in such compensation or payments thereafter; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) such assignment does not conflict with applicable Laws.

A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Company to require such assignment and delegation cease to apply. Neither the Administrative Agent nor any Lender shall have any obligation to the Company to find a replacement Lender or other such Person.

Each party hereto agrees that (i) an assignment required pursuant to this Section may be effected pursuant to an Assignment and Assumption executed by the Company, the Administrative Agent and the assignee (or, to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to an Approved Electronic Platform as to which the Administrative Agent and such parties are participants), and (ii) the Lender required to make such assignment need not be a party thereto in order for such assignment to be effective and shall be deemed to have consented to an be bound by the terms thereof; <u>provided</u> that, following the effectiveness of any such assignment, the other parties to such assignment agree to execute and deliver such documents necessary to evidence such assignment as reasonably requested by the applicable Lender; <u>provided</u>, <u>further</u>, that any such documents shall be without recourse to or warranty by the parties thereto.

Section 10.13 <u>Governing</u> <u>Law; Jurisdiction; Etc</u><u>.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>GOVERNING LAW</u>. THIS CREDIT AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>SUBMISSION TO JURISDICTION</u>. EACH OF THE PARTIES TO THIS CREDIT AGREEMENT IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND OF THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA SITTING IN THE BOROUGH OF MANHATTAN, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS CREDIT AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING SHALL BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER

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JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS CREDIT AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL (I) AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR ANY L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS CREDIT AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE COMPANY OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION, (II) WAIVE ANY STATUTORY, REGULATORY, COMMON LAW, OR OTHER RULE, DOCTRINE, LEGAL RESTRICTION, PROVISION OR THE LIKE PROVIDING FOR THE TREATMENT OF BANK BREACHES, BANK AGENCIES, OR OTHER BANK OFFICES AS IF THEY WERE SEPARATE JURIDICAL ENTITIES FOR CERTAIN PURPOSES, INCLUDING UNIFORM COMMERCIAL CODE SECTIONS 4-106, 4-A-105(1)(b) AND 5-116(b), UCP 600 ARTICLE 3, ISP98 RULE 2.02 AND URDG 758 ARTICLE 3(a), OR (III) AFFECT WHICH COURTS HAVE OR DO NOT HAVE PERSONAL JURISDICTION OVER THE L/C ISSUER OR BENEFICIARY OF ANY LETTER OF CREDIT OR ANY ADVISING BANK, NOMINATED BANK OR ASSIGNEE OF PROCEEDS THEREUNDER OR PROPER VENUE WITH RESPECT TO ANY LITIGATION ARISING OUT OF OR RELATING TO SUCH LETTER OF CREDIT WITH, OR AFFECTING THE RIGHTS OF, ANY PERSON NOT A PARTY TO THIS CREDIT AGREEMENT, WHETHER OR NOT SUCH LETTER OF CREDIT CONTAINS ITS OWN JURISDICTION SUBMISSION CLAUSE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>WAIVER OF VENUE</u>. EACH OF THE PARTIES TO THIS CREDIT AGREEMENT IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS CREDIT AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN <u>PARAGRAPH</u> <u>(b)</u> OF THIS SECTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>SERVICE OF PROCESS</u>. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN <u>SECTION</u> <u>10.02</u>. NOTHING IN THIS CREDIT AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

Section 10.14 <u>Waiver</u> <u>of</u> <u>Jury</u> <u>Trial</u>. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS CREDIT AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

Section 10.15 <u>No Advisory or</u> <u>Fiduciary</u> <u>Responsibility</u>. In connection with all aspects of each transaction contemplated hereby, the Company acknowledges and agrees that: (i) the credit facilities provided for hereunder and any related arranging or other services in connection therewith (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document) are

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an arm's-length commercial transaction between the Company and its Affiliates, on the one hand, and the Administrative Agent, the Lead Arranger and Lenders on the other hand, and the Company is capable of evaluating and understanding and understands and accepts the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents (including any amendment, waiver or other modification hereof or thereof); (ii) in connection with the process leading to such transaction, the Administrative Agent, the Lead Arranger and Lenders each are and have been acting solely as a principal and are not the financial advisor, agent or fiduciary, for the Company or any of its Affiliates, stockholders, creditors or employees or any other Person; (iii) neither the Administrative Agent, the Lead Arranger nor any Lender has assumed or will assume an advisory, agency or fiduciary responsibility in favor of the Company with respect to any of the transactions contemplated hereby or the process leading thereto, including with respect to any amendment, waiver or other modification hereof or of any other Loan Document (irrespective of whether the Administrative Agent, the Lead Arranger or any Lender has advised or is currently advising the Company or any of its Affiliates on other matters) and neither the Administrative Agent, the Lead Arranger nor any Lender has any obligation to the Company or any of its Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; (iv) the Administrative Agent, the Lead Arranger and Lenders and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Company and its Affiliates, and neither the Administrative Agent, the Lead Arranger nor any Lender has any obligation to disclose any of such interests by virtue of any advisory, agency or fiduciary relationship; and (v) the Administrative Agent, the Lead Arranger and Lenders have not provided and will not provide any legal, accounting, regulatory or tax advice with respect to any of the transactions contemplated hereby (including any amendment, waiver or other modification hereof or of any other Loan Document) and the Company has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate. The Company hereby waives and releases, to the fullest extent permitted by law, any claims that it may have against the Administrative Agent, the Lead Arranger and the Lenders with respect to any breach or alleged breach of agency, advisory or fiduciary duty.

Section 10.16 <u>USA PATRIOT Act Notice</u>. Each Lender that is subject to the USA PATRIOT Act (as hereinafter defined) and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Company and the Guarantors that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the "<u>USA PATRIOT Act</u>"), it is required to obtain, verify and record information that identifies each Loan Party, which information includes the name and address of each Loan Party and other information that will allow such Lender or the Administrative Agent, as applicable, to identify each Loan Party in accordance with the USA PATRIOT Act. The Company shall, promptly following a request by the Administrative Agent or any Lender, provide all documentation and other information that the Administrative Agent or such Lender requests in order to comply with its ongoing obligations under applicable "know your customer" and anti-money laundering rules and regulations, including the USA PATRIOT Act.

Section 10.17 <u>Senior</u> <u>Indebtedness</u>. The Obligations shall constitute "Senior Indebtedness" as such term is defined in all debt instruments to which the Company or any Restricted Subsidiary is a party and which contains such a definition.

Section 10.18 <u>Liability of General Partners and Other Persons</u>. No general partner of any Restricted Subsidiary that is a partnership, joint venture or joint adventure shall have any personal liability in respect of such Restricted Subsidiary's obligation under this Credit Agreement or the Notes by reason of his, her or its status as such general partner. In addition, no limited partner, officer, employee, director, stockholder or other holder of an ownership interest of or in the Company or any Restricted Subsidiary or any partnership, corporation or other entity which is a stockholder or other holder of an ownership interest of or in the Company or any Restricted Subsidiary shall have any personal liability in respect of such obligations by reason of his, her or its status as such limited partner, officer, employee, director, stockholder or holder.

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Section 10.19 <u>Authorization of Third Parties to Deliver Information and Discuss Affairs</u>. The Company hereby confirms that it has authorized and directed each Person whose preparation or delivery to the Administrative Agent or the Lenders of any opinion, report or other information is a condition or covenant under this Credit Agreement (including under <u>Article</u> <u>V</u> and <u>Article</u> <u>VII</u>) to so prepare or deliver such opinions, reports or other information for the benefit of the Administrative Agent and the Lenders. The Company agrees to confirm such authorizations and directions provided for in this <u>Section</u> <u>10.19</u> from time to time as may be requested by the Administrative Agent.

Section 10.20 <u>Treatment of Certain Information; Confidentiality</u>. Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates' respective partners, directors, officers, employees, agents, advisors and representatives on a need to know basis (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority purporting to have jurisdiction over it (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party hereto, (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Credit Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section (other than in the case of a pledge to any Federal Reserve Bank), to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Credit Agreement, (ii) any pledgee referred to in <u>Section</u> <u>10.06(f)</u>, (iii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Company and its obligations or (iv) any actual or prospective funding source or investor, (g) with the written consent of the Company or (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section or (ii) becomes available to the Administrative Agent, any Lender or any of their respective Affiliates on a non-confidential basis from a source other than the Company or any other Loan Party.

For purposes of this Section, "<u>Information</u>" means all information received from any Loan Party or any Subsidiary thereof relating to any Loan Party or any Subsidiary thereof or their respective businesses, other than any such information that is available to the Administrative Agent or any Lender on a non-confidential basis prior to disclosure by any Loan Party or any Subsidiary thereof, <u>provided</u> that, in the case of information received from a Loan Party or any such Subsidiary after the Effective Date, such information is not marked "PUBLIC" or otherwise identified at the time of delivery as confidential.

Each of the Administrative Agent and the Lenders acknowledges that (a) the Information may include material non-public information concerning the Company or a Subsidiary, as the case may be, (b) it has developed compliance procedures regarding the use of material non-public information and (c) it will handle such material non-public information in accordance with applicable Law, including Securities Laws.

Section 10.21 <u>No Fiduciary Duty</u>. The Company hereby acknowledges that neither the Administrative Agent nor any Lender has any fiduciary relationship with or fiduciary duty to the Company arising out of or in connection with this Credit Agreement or any of the other Loan Documents, and the relationship between the Administrative Agent and the Lenders, on the one hand, and the Company, on the other hand, in connection herewith or therewith is solely that of debtor and creditor.

Section 10.22 <u>Acknowledgement</u><u> </u><u>and</u> <u>Consent to Bail-In of Certain Financial Institutions</u>. Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement

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or understanding among any such parties, each party hereto acknowledges and accepts that any liability of any Affected Financial Institution under or in connection with this Credit Agreement may be subject to the Write-Down and Conversion Powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an Affected Financial Institution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the effects of any Bail-In Action on any such liability, including, if applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a reduction in full or in part or cancellation of any such liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Credit Agreement or any other documents or agreements relating to the Advances made hereunder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of the applicable Resolution Authority.

Section 10.23 <u>Acknowledgement</u><u> </u><u>Regarding</u> <u>any Supported QFCs</u>. To the extent that the Loan Documents provide support, through a guarantee or otherwise, for Secured Hedging Agreements or any other agreement or instrument that is a QFC (such support, "<u>QFC Credit Support</u>" and each such QFC, a "<u>Supported QFC</u>"), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the "<u>U.S. Special Resolution Regimes</u>") in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States).

In the event a Covered Entity that is party to a Supported QFC (each, a "<u>Covered Party</u>") becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.

[SIGNATURE PAGES FOLLOW]

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**IN WITNESS WHEREOF**, the parties hereto have caused this Credit Agreement to be duly executed as of the day and year first above written.

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| | |
|:---|:---|
| **MSG NATIONAL PROPERTIES, LLC,**<br> as the Company | **MSG NATIONAL PROPERTIES, LLC,**<br> as the Company |
| By: | /s/ Philip D'Ambrosio |
|  | Name: Philip D'Ambrosio |
|  | Title: Senior Vice President and Treasurer |
| **MSG ENTERTAINMENT GROUP, LLC,**<br> as a Guarantor | **MSG ENTERTAINMENT GROUP, LLC,**<br> as a Guarantor |
| By: | /s/ Philip D'Ambrosio |
|  | Name: Philip D'Ambrosio |
|  | Title: Senior Vice President and Treasurer |
| **MSG BEACON, LLC,**<br> as a Guarantor | **MSG BEACON, LLC,**<br> as a Guarantor |
| By: | /s/ Philip D'Ambrosio |
|  | Name: Philip D'Ambrosio |
| Title: | Senior Vice President and Treasurer |
| **MSG CHICAGO, LLC,**<br> as a Guarantor | **MSG CHICAGO, LLC,**<br> as a Guarantor |
| By: | /s/ Philip D'Ambrosio |
|  | Name: Philip D'Ambrosio |
|  | Title: Senior Vice President and Treasurer |
| **RADIO CITY PRODUCTIONS LLC,**<br> as a Guarantor | **RADIO CITY PRODUCTIONS LLC,**<br> as a Guarantor |
| By: | /s/ Philip D'Ambrosio |
|  | Name: Philip D'Ambrosio |
|  | Title: Senior Vice President and Treasurer |
| **THE GRAND TOUR, LLC,**<br> as a Guarantor | **THE GRAND TOUR, LLC,**<br> as a Guarantor |
| By: | /s/ Philip D'Ambrosio |
|  | Name: Philip D'Ambrosio |
|  | Title: Senior Vice President and Treasurer |

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[Signature Page to Credit Agreement]

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| | |
|:---|:---|
|  **RADIO CITY TRADEMARKS, LLC,**<br> as a Guarantor | **RADIO CITY TRADEMARKS, LLC,**<br> as a Guarantor |
| By: | /s/ Philip D'Ambrosio |
|  | Name: Philip D'Ambrosio |
|  | Title: Senior Vice President and Treasurer |

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[Signature Page to Credit Agreement]

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| | |
|:---|:---|
| **JPMORGAN CHASE BANK, N.A.,**<br> as Administrative Agent | **JPMORGAN CHASE BANK, N.A.,**<br> as Administrative Agent |
| By: | /s/ Anthony Galea |
|  | Name: Anthony Galea |
|  | Title: Executive Director |

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[Signature Page to Credit Agreement]

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| | |
|:---|:---|
|  **JPMORGAN CHASE BANK, N.A.,**<br> as Lender | **JPMORGAN CHASE BANK, N.A.,**<br> as Lender |
| By: | /s/ Anthony Galea |
|  | Name: Anthony Galea |
|  | Title: Executive Director |

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[Signature Page to Credit Agreement]

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| | |
|:---|:---|
|  **BANK OF AMERICA, N.A.**,<br>as Lender | **BANK OF AMERICA, N.A.**,<br>as Lender |
| By: | /s/ Keith T. Erazmus |
|  | Name: Keith T. Erazmus |
|  | Title: Senior Vice President |

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[Signature Page to Credit Agreement]

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| | |
|:---|:---|
|  **U.S. BANK NATIONAL ASSOCIATION,**<br> as Lender | **U.S. BANK NATIONAL ASSOCIATION,**<br> as Lender |
|  By: | /s/ Kevin Behrends |
|  | Name: Kevin Behrends |
|  | Title: Vice President |

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[Signature Page to Credit Agreement]

## Exhibit 10.42

**Exhibit 10.42** 

EXECUTION VERSION

**SECURITY AGREEMENT** 

Dated as of June 30, 2022,

by and among

MSG NATIONAL PROPERTIES, LLC,

and

THE OTHER GRANTORS REFERRED TO HEREIN,

as Grantors,

and

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

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**<u>**TABLE OF CONTENTS**</u>**

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| | | |
|:---|:---|:---|
| **Section** |  | **Page** |
|  Section 1. | Grant of Security | 4 |
|  Section 2. | [Reserved] | 7 |
|  Section 3. | Excluded Assets | 7 |
|  Section 4. | Security for Obligations | 8 |
|  Section 5. | Grantors Remain Liable | 8 |
|  Section 6. | Delivery and Control of Security Collateral | 8 |
|  Section 7. | Representations and Warranties | 9 |
|  Section 8. | Further Assurances | 10 |
|  Section 9. | Covenants | 10 |
|  Section 10. | As to Intellectual Property Collateral | 12 |
|  Section 11. | Voting Rights; Dividends; Etc. | 13 |
|  Section 12. | As to Certain Pledged Agreements | 14 |
|  Section 13. | As to Letter-of-Credit Rights | 14 |
|  Section 14. | [Reserved] | 14 |
|  Section 15. | Administrative Agent Appointed Attorney-in-Fact | 14 |
|  Section 16. | Administrative Agent May Perform | 15 |
|  Section 17. | The Administrative Agent's Duties | 15 |
|  Section 18. | Remedies | 16 |
|  Section 19. | Amendments; Waivers; Additional Grantors; Etc. | 17 |
|  Section 20. | Notices, Etc. | 17 |
|  Section 21. | Continuing Security Interest; Assignments Under the Credit Agreement | 18 |
|  Section 22. | Release; Termination | 18 |
|  Section 23. | Reinstatement | 18 |
|  Section 24. | Security Interest Absolute | 18 |
|  Section 25. | Execution in Counterparts | 19 |
|  Section 26. | Administrative Agent's Expenses; Limitation of Liability; Indemnification | 19 |
|  Section 27. | Governing Law; Jurisdiction; WAIVER OF JURY TRIAL | 19 |

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| | |
|:---|:---|
| <u>Schedules</u> |  |
| Schedule I | Investment Property |
| Schedule II | Intellectual Property |
| Schedule III | Legal Name, Location, Chief Executive Office, Type Of Organization, Jurisdiction Of Organization, Organizational Identification Number And Prior Names |
| <u>Exhibits</u> |  |
| Exhibit A | Form of Security Agreement Supplement |
| Exhibit B | Form of Intellectual Property Security Agreement |

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**SECURITY AGREEMENT** 

THIS SECURITY AGREEMENT, dated as of June 30, 2022 (this "<u>Agreement</u>"), is made by and among MSG NATIONAL PROPERTIES, LLC, a Delaware limited liability company (the "<u>Company</u>"), the other parties listed as "<u>Subsidiary Grantors</u>" on the signature pages hereof (the Company and such Persons so listed being, collectively, the "<u>Grantors</u>"), and JPMORGAN CHASE BANK, N.A., as administrative agent (in such capacity, together with any successor administrative agent appointed pursuant to <u>Article IX</u> of the Credit Agreement (as hereinafter defined), the "<u>Administrative Agent</u>"), for the benefit of the Lenders and the other Secured Parties (each as defined in the Credit Agreement, as defined below).

**PRELIMINARY STATEMENTS:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Company has entered into a Credit Agreement, dated as of June 30, 2022 (such Credit Agreement, as it may hereafter be amended, amended and restated, supplemented or otherwise modified from time to time, being the "<u>Credit Agreement</u>"), with the Lenders and L/C Issuers (each as defined therein), the Parent and the subsidiaries of the Company party thereto as Guarantors (as defined therein) and the Administrative Agent. Capitalized terms not otherwise defined in this Agreement have the same meanings as specified in the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Grantors have guaranteed the obligations of the Company under the Credit Agreement pursuant to the Guaranty (as defined in the Credit Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) As of the Effective Date, each Grantor is the owner of the shares of stock or other Equity Interests (the "<u>Initial Pledged Equity</u>") set forth opposite such Grantor's name on and as otherwise described in Part I of <u>Schedule I</u> hereto and issued by the Persons named therein and the creditor with respect to the indebtedness (the "<u>Initial Pledged Debt</u>") owed to such Grantor set forth opposite the Grantor's name on and as otherwise described in Part II of <u>Schedule I</u> hereto and issued by the obligors named therein. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) It is a condition precedent to the making of the Loans by the Lenders and the issuance of Letters of Credit by the L/C Issuers under the Credit Agreement that the Grantors shall have granted the security interest contemplated by this Agreement. Each Grantor will derive substantial direct and indirect benefit from the transactions contemplated by the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Unless otherwise defined in this Agreement or in the Credit Agreement, terms defined in Article 8 or 9 of the UCC (as defined below) are used in this Agreement as such terms are defined in such Article 8 or 9. "<u>UCC</u>" means the Uniform Commercial Code as in effect from time to time in the State of New York; <u>provided</u> that, if perfection or the effect of perfection or non-perfection or the priority of the security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, "<u>UCC</u>" means the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes of the provisions hereof relating to such perfection, effect of perfection or non-perfection or priority.

NOW, THEREFORE, in consideration of the premises and in order to induce the Lenders to make the Loans and the L/C Issuers to issue Letters of Credit under the Credit Agreement and to induce the Hedge Banks to enter into Secured Hedge Agreements and the Cash Management Banks to enter into Secured Cash Management Agreements from time to time, each Grantor hereby agrees with the Administrative Agent for the ratable benefit of the Secured Parties as follows:

Section 1. <u>Grant of Security</u>. Each Grantor hereby grants to the Administrative Agent, for the benefit of the Secured Parties, a security interest in such Grantor's right, title and interest in and to the following, in each case, as to each type of property described for such Grantor below, whether now owned or hereafter acquired by such Grantor, wherever located, and whether now or hereafter existing or arising (collectively, the "<u>Collateral</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all equipment in all of its forms, including, without limitation, all machinery, tools, furniture and fixtures, and all parts thereof and all accessions thereto, including, without limitation, computer programs and supporting information that constitute equipment within the meaning of the UCC (any and all such property being the "<u>Equipment</u>");

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all inventory in all of its forms, including, without limitation, (i) all raw materials, work in process, finished goods and materials used or consumed in the manufacture, production, preparation or shipping thereof, (ii) goods in which such Grantor has an interest in mass or a joint or other interest or right of any kind (including, without limitation, goods in which such Grantor has an interest or right as consignee) and (iii) goods that are returned to or repossessed or stopped in transit by such Grantor, and all accessions thereto and products thereof and documents therefor, including, without limitation, computer programs and supporting information that constitute inventory within the meaning of the UCC (any and all such property being the "<u>Inventory</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all accounts, chattel paper (including, without limitation, tangible chattel paper and electronic chattel paper), instruments (including, without limitation, promissory notes), deposit accounts (including, without limitation, the Deposit Accounts), letter-of-credit rights, general intangibles (including, without limitation, payment intangibles) and other obligations of any kind, whether or not arising out of or in connection with the sale or lease of goods or the rendering of services and whether or not earned by performance, and all rights now or hereafter existing in and to all supporting obligations and in and to all security agreements, mortgages, Liens, leases, letters of credit and other contracts securing or otherwise relating to the foregoing property (any and all of such accounts, chattel paper, instruments, deposit accounts, letter-of-credit rights, general intangibles and other obligations, to the extent not referred to in <u>clauses (d)</u>, <u>(e)</u> or <u>(f)</u> below, being the "<u>Receivables</u>," and any and all such supporting obligations, security agreements, mortgages, Liens, leases, letters of credit and other contracts being the "<u>Related Contracts</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the following (collectively, as described in <u>clauses (i)-(vi)</u> below, "<u>Security Collateral</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Initial Pledged Equity owned by the Company and each Subsidiary Grantor and the certificates, if any, representing such Initial Pledged Equity, and all dividends, distributions, return of capital, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such Initial Pledged Equity and all warrants, rights or options issued thereon or with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Initial Pledged Debt and the instruments, if any, evidencing the Initial Pledged Debt, and all interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Initial Pledged Debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all additional shares of stock and other Equity Interests from time to time acquired by such Grantor in any manner (such shares and other Equity Interests, together with the Initial Pledged Equity owned by the Company and the Subsidiary Grantors, being the "<u>Pledged Equity</u>"), and the certificates, if any, representing such additional shares or other Equity Interests, and all dividends, distributions, return of capital, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such shares or other Equity Interests and all warrants, rights or options issued thereon or with respect thereto;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all additional indebtedness from time to time owed to such Grantor (such indebtedness, together with the Initial Pledged Debt, being the "<u>Pledged Debt</u>") and the instruments, if any, evidencing such indebtedness, and all interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all security entitlements with respect to all financial assets and all financial assets, and all dividends, distributions, return of capital, interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such security entitlements or financial assets and all warrants, rights or options issued thereon or with respect thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) all other investment property (including, without limitation, all (A) securities, whether certificated or uncertificated, (B) security entitlements, (C) securities accounts, (D) commodity contracts and (E) commodity accounts) and the certificates or instruments, if any, representing or evidencing such investment property, and all dividends, distributions, return of capital, interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such investment property and all warrants, rights or options issued thereon or with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the following (collectively, as described in <u>clauses (i)-(iii)</u> below, the "<u>Account Collateral</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all deposit accounts and all funds and financial assets from time to time credited thereto (including, without limitation, all Cash Equivalents), and all certificates and instruments, if any, from time to time representing or evidencing the deposit accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all promissory notes, certificates of deposit, checks and other instruments from time to time delivered to or otherwise possessed by the Administrative Agent or an Affiliate of the Administrative Agent on its behalf, for or on behalf of such Grantor in substitution for or in addition to any or all of the then existing Account Collateral; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all interest, dividends, distributions, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the then existing Account Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the following (collectively, as described in <u>clauses (i)-(v)</u> below, the "<u>Intellectual Property Collateral</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all patents, patent applications, utility models and statutory invention registrations, all inventions claimed or disclosed therein and all improvements thereto ("<u>Patents</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all trademarks, service marks, domain names, trade dress, logos, designs, slogans, trade names, business names, corporate names and other source identifiers, whether registered or unregistered (<u>provided</u> that for the avoidance of doubt no security interest shall be granted in United States intent-to-use trademark applications to the extent that, and solely during the period in which, the grant of a security interest therein could impair the validity or enforceability, or result in the cancellation, of such intent-to-use trademark applications under applicable law), together, in each case, with the goodwill symbolized thereby ("<u>Trademarks</u>");

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all copyrights and copyrightable works, including, without limitation, such copyrights in Computer Software (as hereinafter defined), and internet website content, whether registered or unregistered and mask works ("<u>Copyrights</u>"); Computer Software shall mean all computer software, programs and databases (including, without limitation, source code, object code and all related copyrightable applications and data files);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all confidential and proprietary information, including, without limitation, confidential and proprietary know-how, trade secrets, confidential manufacturing and production processes and techniques, confidential research and development information and confidential customer and supplier lists (collectively, "<u>Trade Secrets</u>"), and all other intellectual property of any type, to the extent legal protection therefore exists under U.S. law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all registrations and applications for registration for any of the foregoing, including, without limitation, those registrations and applications for registration set forth in <u>Schedule II</u> hereto, together with all reissues, divisions, continuations, continuations-in-part, extensions, renewals and reexaminations thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) all rights in the foregoing provided by international treaties or conventions, if any, and all rights corresponding thereto throughout the world;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) all written agreements granting to any third party the right to use any Intellectual Property Collateral or granting to any Grantor any right to use any Trademark, Copyright, Patent or Trade Secret now or hereafter owned by any third party, to which such Grantor, now or hereafter, is a party (other than those that by their terms prohibit assignment or a grant of security interest by such Grantor thereunder) ("<u>IP Agreements</u>"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) any and all claims for damages and injunctive relief for past, present and future infringement, dilution, misappropriation, breach or other violation with respect to any of the foregoing, with the right, but not the obligation, to sue for and collect, or otherwise recover proceeds arising from such damages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) all books and records (including, without limitation, credit files, printouts and other computer output materials and records) of such Grantor pertaining to any of the property described in the preceding clauses of this <u>Section</u> <u>1</u>, that constitute Collateral; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all proceeds of, collateral for, income, royalties and other payments now or hereafter due and payable with respect to, and supporting obligations relating to, any and all of the property described in the preceding clauses of this <u>Section</u> <u>1</u>, other than Excluded Assets (including, without limitation, proceeds, collateral and supporting obligations that constitute property of the types described in <u>clauses (a)</u> through <u>(h)</u> and this <u>clause (i)</u> of this <u>Section</u> <u>1</u>) and, to the extent not otherwise included, all (A) payments under insurance (whether or not the Administrative Agent is the loss payee thereof), or any indemnity, warranty or guaranty, in each case, payable by reason of loss or damage to or otherwise with respect to any of the foregoing property, (B) the right to sue for past, present, and future damages, and (C) cash.

Section 2. [Reserved].

Section 3. <u>Excluded Assets</u>. Notwithstanding anything contained in this Agreement or any other Loan Document to the contrary, no Grantor shall be required to pledge, and does not pledge hereby, any Excluded Asset, and the term "<u>Collateral</u>" shall not include any Excluded Asset.

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Section 4. <u>Security for Obligations</u>. This Agreement secures, in the case of each Grantor, the payment of all Obligations from time to time of the Company or such Grantor (all such Obligations being the "<u>Secured Obligations</u>"). Without limiting the generality of the foregoing, this Agreement secures, as to each Grantor, the payment of all amounts that constitute part of the Secured Obligations and would be owed by the Company or such Grantor to any Secured Party under the Loan Documents but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving a Loan Party.

Section 5. <u>Grantors Remain Liable</u>. Anything herein to the contrary notwithstanding, (a) each Grantor shall remain liable under the contracts and agreements included in such Grantor's Collateral to the extent set forth therein to perform all of its duties and obligations thereunder to the same extent as if this Agreement had not been executed, (b) the exercise by the Administrative Agent of any of the rights hereunder shall not release any Grantor from any of its duties or obligations under the contracts and agreements included in the Collateral and (c) no Secured Party shall have any obligation or liability under the contracts and agreements included in the Collateral by reason of this Agreement or any other Loan Document, nor shall any Secured Party be obligated to perform any of the obligations or duties of any Grantor thereunder or to take any action to collect or enforce any claim for payment assigned hereunder.

Section 6. <u>Delivery and Control of Security Collateral</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All certificates or instruments representing or evidencing Security Collateral (if certificated) shall be delivered to and held by or on behalf of the Administrative Agent (i) promptly (and in any event within 10 days after the Effective Date), in the case of any such Security Collateral owned by any Grantor on the date hereof and (ii) promptly (and in any event within 60 days after the date of acquisition thereof (or such longer time as the Administrative Agent may agree in its reasonable discretion)), in the case of such items acquired after the Effective Date, pursuant to the terms of and to the extent required under the Credit Agreement and shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance reasonably satisfactory to the Administrative Agent; <u>provided</u> that no Grantor shall be required to deliver any instrument representing (x) Pledged Debt if the face amount of such Pledged Debt is less than $5,000,000, or (y) Pledged Debt other than indebtedness for borrowed money (whether by loan or the issuance and sale of debt securities) owed to a Grantor. After the occurrence and during the continuance of an Event of Default, the Administrative Agent shall have the right to exchange certificates or instruments representing or evidencing Security Collateral for certificates or instruments of smaller or larger denominations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon the request of the Administrative Agent following the occurrence and during the continuance of an Event of Default, each Grantor will notify each issuer of Security Collateral (other than any other Loan Party) granted by it hereunder that such Security Collateral is subject to the security interest granted hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent, on behalf of the Secured Parties, shall have the right (in its sole and absolute discretion) to hold the Security Collateral in its own name as pledgee, the name of its nominee (as pledgee or as sub-agent) or the name of the applicable Grantor, endorsed or assigned in blank or in favor of the Administrative Agent, in each case, if an Event of Default shall occur and be continuing and the Administrative Agent shall give the Company prior written notice of its intent to exercise such rights, and thereafter each Grantor will promptly give to the Administrative Agent copies of any notices or other communications received by it with respect to Security Collateral registered in the name of such Grantor.

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Section 7. <u>Representations and Warranties</u>. Each Grantor represents and warrants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of the Effective Date, such Grantor's exact legal name, location, chief executive office, type of organization, jurisdiction of organization and organizational identification number is as set forth in <u>Schedule III</u> hereto. Other than as listed on <u>Schedule III</u> hereto, such Grantor has not had or used any other legal names on any filings with the Internal Revenue Service, or any trade name or other corporate or organizational names within the past five (5) years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement has been duly executed and delivered by each Grantor that is party hereto. This Agreement constitutes a legal, valid and binding obligation of such Grantor, enforceable against each Grantor that is party hereto in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization and other similar laws relating to or affecting creditors' rights generally and by general principles of equity (whether considered in a proceeding in equity or law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Such Grantor is the record and beneficial owner of the Collateral in which it has purported to grant a security interest hereunder free and clear of any Lien of others, except for the security interest created under this Agreement or Liens permitted under the Credit Agreement and has full power and authority to grant to the Administrative Agent the security interest in such Collateral pursuant hereto and to execute, deliver and perform its obligations in accordance with the terms of this Agreement, without the consent or approval of any other Person other than (i) any consents or approvals that have been obtained and are in full force and effect, (ii) Non-Required Consents and (iii) as set forth on <u>Schedule</u> <u>6.03</u> to the Credit Agreement. No Grantor has filed or consented to the filing of an effective financing statement or other instrument similar in effect covering any part of such Collateral or listing such Grantor or any trade name of such Grantor as debtor in any recording office, except such as may have been filed in favor of the Administrative Agent relating to the Loan Documents or filings which are not prohibited by the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If such Grantor is an issuer of Security Collateral, such Grantor confirms that it has received notice of the security interest granted hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If such Grantor is an issuer of Pledged Equity by another Grantor hereunder, such Pledged Equity constituting common equity stock issued to such Grantor on the Effective Date has been duly authorized and validly issued and is fully paid and non-assessable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) As of the Effective Date, the Initial Pledged Equity pledged by such Grantor constitutes the percentage of the issued and outstanding Equity Interests of the issuers thereof indicated on <u>Schedule I</u> hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) As of the Effective Date, the Initial Pledged Debt constitutes all of the outstanding indebtedness for borrowed money owed to such Grantor by the issuers thereof and is outstanding in the principal amount indicated on <u>Schedule I</u> hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) This Agreement creates in favor of the Administrative Agent for the benefit of the Secured Parties a valid security interest in the Collateral granted by such Grantor (to the extent such matter is governed by the laws of the United States, or a jurisdiction located therein), securing the payment of the Secured Obligations; and such security interest is perfected (to the extent such security interest may be perfected by filing a financing statement in the United States or a jurisdiction located therein pursuant to the UCC) subject to the filing, recording or registering a financing statement in the United States or a jurisdiction located therein pursuant to the UCC, absent the failure of the Administrative Agent to file the financing statements in appropriate form in the relevant filing offices. Such perfected security interest is first priority except for Liens permitted by the Credit Agreement which have priority over the Liens granted hereunder and Liens permitted by <u>Section</u> <u>7.16</u> of the Credit Agreement and automatically having priority over the Administrative Agent's lien without the requirement of affirmative action by the Grantor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) As of the Effective Date, Schedule II hereto contains what is, to the knowledge of the Grantors, a true and correct list of (i) all Patents, Trademarks and Copyrights, in each case, that are issued by or registered with, or pending application before, the U.S. Patent & Trademark Office or U.S. Copyright Office ("<u>Registered IP Collateral</u>"), in each case, that are being pledged by each such Grantor, and indicating for each such item, as applicable, the application and/or registration number and the identity of the current applicant or registered owner, and (ii) material exclusive licenses of third party U.S. registered Copyrights to which a Grantor is an exclusive licensee and that are being pledged by such Grantor, and indicating for each item the name of the agreement, the parties, the date, and a list of U.S. registered copyrights exclusively licensed pursuant thereto. Except as set forth on Schedule II, to the knowledge of the Grantors, each Grantor exclusively owns all right, title and interest in and to the Registered IP Collateral identified on Schedule II.

Section 8. <u>Further Assurances</u>(a) . Each Grantor hereby authorizes, at such Grantor's sole cost and expense, the Administrative Agent to file one or more financing or continuation statements, and amendments thereto, including, without limitation, one or more financing statements indicating that such financing statements cover the Collateral (which financing statements may indicate the Collateral as all assets of such Grantor or words of similar effect or being of an equal or lesser scope or with greater detail), in each case without the signature of such Grantor. A photocopy or other reproduction of this Agreement shall be sufficient as a financing statement where permitted by law. Each Grantor ratifies its authorization for the Administrative Agent to have filed such financing statements, continuation statements or amendments filed prior to the Effective Date. 

Section 9. <u>Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Grantor shall, at its own expense, take any and all commercially reasonable actions necessary to defend title to the Collateral against all Persons and to defend the security interest of the Administrative Agent in the Collateral and the priority thereof against any Lien not permitted pursuant to <u>Section</u> <u>7.16</u> of the Credit Agreement except with respect to Collateral that such Grantor determines in its reasonable business judgment is no longer necessary or beneficial to the conduct of its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Grantor agrees promptly (and, in any event, within 30 days or such later date as the Administrative Agent may approve) to notify the Administrative Agent of any change in its name, type of organization, jurisdiction of organization, organizational identification number or chief executive office. If any Grantor does not have an organizational identification number and later obtains one, it will promptly (and, in any event, within 30 days or such later date as the Administrative Agent may approve) notify the Administrative Agent of such organizational identification number.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company agrees, on its own behalf and on behalf of each other Grantor, at its own expense, to execute, acknowledge, deliver and cause to be duly filed all such further instruments and documents and take all such actions as the Administrative Agent may from time to time reasonably request to abstain, better assure, preserve, protect and perfect the security interests and the rights and remedies created hereby, including the payment of any fees and taxes required in connection with the execution and delivery of this Agreement, the granting of the security interests hereunder and the filing of any financing statements (including fixture filings) or other documents in connection herewith or therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon the occurrence and during the continuance of an Event of Default, at its option, the Administrative Agent may discharge past due taxes, assessments, charges, fees, Liens, security interests or other encumbrances at any time levied or placed on the Collateral, in each case which are not permitted pursuant to <u>Section</u> <u>7.16</u> of the Credit Agreement, and (ii) may pay for the maintenance and preservation of the Collateral to the extent any Grantor fails to do so as required by the Credit Agreement or this Agreement and within a reasonable period of time after the Administrative Agent has requested that it do

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so. Nothing in this paragraph shall be interpreted as excusing any Grantor from the performance of, or imposing any obligation on the Administrative Agent or any Secured Party to cure or perform, any covenants or other promises of any Grantor with respect to taxes, assessments, charges, fees, Liens, security interests or other encumbrances and maintenance as set forth herein or in the other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each Grantor (rather than the Administrative Agent or any Secured Party) shall remain liable (as between itself and any relevant counterparty) to observe and perform all the conditions and obligations to be observed and performed by it under each contract, agreement or instrument relating to the Collateral, all in accordance with the terms and conditions thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding anything to the contrary set forth herein or in any other Loan Document, the Grantors shall not be required:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to perfect pledges or security interests by means other than by (A) filings pursuant to the UCC in the office of the secretary of state (or similar central filing office) of the relevant state(s), (B) customary filings in (i) the United States Trademark Office with respect to U.S. issued and applied for patents and registered and applied for trademarks and (ii) the United States Copyright Office with respect to copyright registrations to U.S. registered copyrights, in each case constituting Intellectual Property Collateral, (C) mortgages in respect of Real Property to the extent required pursuant to the Credit Agreement, (D) delivery to the Administrative Agent to be held in its possession of certificates or instruments representing or evidencing Security Collateral to the extent required by Section 6 hereof and (E) entry into customary control agreements with respect to Deposit Accounts (other than with respect to Excluded Accounts and accounts containing cash and Cash Equivalents in the aggregate not in excess of $5,000,000) to the extent required pursuant to the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To enter into any control agreement, lockbox or similar arrangement with respect to any securities account, commodities account or uncertificated securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To enter into any control agreement, lockbox or similar arrangement with respect to deposit accounts of the Grantors other than with respect to Deposit Accounts (other than with respect to Excluded Accounts and accounts containing cash and Cash Equivalents in the aggregate not in excess of $5,000,000).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) To take any action (other than filings pursuant to the UCC in the office of the secretary of state (or similar central filing office) of the relevant state(s)) (A) with respect to any assets located outside of the United States, (B) in any non-U.S. jurisdiction, or (C) required by the laws of any non-U.S. jurisdiction to create, perfect or maintain any security interest or otherwise (it being understood that there shall be no security agreements or pledge agreements governed by the laws of any non-U.S. jurisdiction);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) To take any action with respect to perfecting a Lien with respect to letter-of-credit rights (other than the filing of UCC-1 financing statements), commercial tort claims, chattel paper or assets subject to a certificate of title (other than the filing of UCC-1 financing statements) or to deliver landlord lien waivers, estoppels, bailee letters or collateral access letters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) To send notices to account debtors or other contractual third parties prior to an Event of Default;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) To provide any notice or obtain the consent of any governmental authorities under the Federal Assignment of Claims Act (or any state equivalent thereof); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) To seek or obtain any consent or approval from any League or other unaffiliated third party.

Notwithstanding anything to the contrary in this Agreement, to the extent any provision of this Agreement or any other Loan Document excludes any assets from the scope of the Collateral, or from any requirement to take any action to perfect any security interest in favor of the Administrative Agent in the Collateral, the representations, warranties and covenants made by the relevant Grantor in this Agreement with respect to the Collateral or the creation, perfection or priority (as applicable) of the security interest granted therein in favor of the Administrative Agent shall be deemed not to apply to such excluded assets.

Section 10. <u>As to Intellectual Property Collateral</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) With respect to the Registered IP Collateral owned by such Grantor, each such Grantor agrees to execute or otherwise authenticate an agreement, in substantially the form set forth in <u>Exhibit B</u> hereto or otherwise in form and substance as reasonably agreed to by the Grantors and the Administrative Agent and requested by the Administrative Agent (an "<u>Intellectual Property Security Agreement</u>"), for recording the security interest granted hereunder to the Administrative Agent in such Registered IP Collateral with the U.S. Patent and Trademark Office and the U.S. Copyright Office to perfect the security interest hereunder in such Registered IP Collateral, to the extent perfection may be achieved by making such recordings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Grantor agrees that, should it obtain an ownership interest in or a license to intellectual property rights of the type included in the definition of any Intellectual Property Collateral that is not on the Effective Date a part of the Intellectual Property Collateral, and that does not constitute an Excluded Asset, and otherwise would be part of the Intellectual Property Collateral if such Grantor had an ownership interest in or license to such item on the Effective Date ("<u>After-Acquired Intellectual Property</u>") any such After-Acquired Intellectual Property shall automatically become part of the Intellectual Property Collateral, subject to the terms and conditions of this Agreement with respect thereto. In addition, such Grantor shall on the date the Company is required to deliver financial statements pursuant to <u>Section</u> <u>7.01(a)</u> and <u>(b)</u> of the Credit Agreement, execute and deliver to the Administrative Agent an Intellectual Property Security Agreement covering such Registered IP Collateral included within such After-Acquired Intellectual Property to be recorded with the U.S. Patent and Trademark Office or the U.S. Copyright Office, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Solely for the purpose of enabling the Administrative Agent, during the continuance of an Event of Default to exercise rights and remedies hereunder, and for no other purpose, each Grantor hereby grants to the Administrative Agent a non-exclusive, fully paid-up, royalty-free, worldwide license to use, license or sublicense (solely as permitted by the terms of any applicable license) any of the intellectual property rights now owned or hereafter acquired by such Grantor, wherever the same may be located; <u>provided</u> that, with respect to Trademarks, such Grantor shall have the right to impose such conditions and quality control standards which are consistent with the quality control standards it applies to such Trademarks (and the goods and services provided in connection with such Trademarks) as of the date such licenses are granted, or which are reasonably necessary under applicable law to maintain the validity and enforceability of such Trademarks. During the continuance of an Event of Default, each Grantor shall use its commercially reasonable efforts to provide the Administrative Agent with access to all physical or tangible media in which any of the licensed items may be recorded or stored and to all computer programs used for the compilation or printout thereof. Notwithstanding anything to the contrary, nothing in this

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 <u>Section</u> <u>10(c)</u> shall require any Grantor to grant any license if it does not have the right to do so or that is prohibited by any rule of law, statute or regulation or is prohibited by, or that would constitute a breach or default under or results in the termination of or gives rise to any right of acceleration, modification or cancellation under any contract, license, agreement, instrument or other document. Any permitted license or sublicense entered into by the Administrative Agent in accordance herewith for the purpose of exercising the Administrative Agent's rights hereunder during and in connection with an Event of Default shall be binding upon the Grantors in accordance with the terms thereof notwithstanding any subsequent cure of an Event of Default, provided that such license or sublicense, as applicable, was entered into in accordance with the terms of this Agreement. For the avoidance of doubt, at the time of the release of the Lien as set forth in <u>Section</u> <u>22</u>, the license granted to the Administrative Agent pursuant to this <u>Section</u> <u>10(c)</u> shall automatically and immediately terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Grantor shall not settle or compromise any pending or future litigation or administrative proceeding with respect to any material Intellectual Property Collateral, except as shall be consistent with such Grantor's reasonable business judgment or otherwise to the extent that such settlement or compromise would not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Except as permitted by the Credit Agreement or except to the extent any of the following actions would not reasonably be expected to result in a Material Adverse Effect, no Grantor shall abandon or allow to lapse any owned Registered IP Collateral unless such Grantor shall have determined in such Grantor's reasonable business judgment that the pursuit or maintenance of such owned Registered IP Collateral is no longer desirable in the conduct of such Grantor's business.

Section 11. <u>Voting Rights; Dividends; Etc</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) So long as no Event of Default shall have occurred and be continuing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Grantor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Security Collateral of such Grantor or any part thereof for any purpose that is not otherwise prohibited by the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each Grantor shall be entitled to receive and retain any and all dividends, interest and other distributions paid in respect of the Security Collateral of such Grantor if and to the extent that the payment thereof is not otherwise prohibited by the terms of the Loan Documents; <u>provided</u>, <u>however</u>, that any such distributions in the form of certificates or instruments will be delivered (with any necessary indorsement) to the Administrative Agent, within 60 days of such distribution, as Security Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Administrative Agent will execute and deliver (or cause to be executed and delivered) to each Grantor all such proxies and other instruments as such Grantor may reasonably request for the purpose of enabling such Grantor to exercise the voting and other rights that it is entitled to exercise pursuant to <u>paragraph (i)</u> above and to receive the dividends or interest payments that it is authorized to receive and retain pursuant to <u>paragraph (ii)</u> above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon the occurrence and during the continuance of an Event of Default:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All rights of each Grantor (x) to exercise or refrain from exercising the voting and other consensual rights that it would otherwise be entitled to exercise pursuant to <u>Section</u> <u>11(a)(i)</u> and (y) to receive the dividends, interest and other distributions that it would otherwise be authorized to receive and retain pursuant to <u>Section</u> <u>11(a)(ii)</u> shall, upon written notice to such Grantor by the Administrative Agent, cease, and all such rights shall thereupon become vested in the Administrative Agent, which shall thereupon have the sole right to exercise or refrain from exercising such voting and other consensual rights and to receive and hold as Security Collateral such dividends, interest and other distributions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) All dividends, interest and other distributions that are received by any Grantor contrary to the provisions of <u>paragraph (i)</u> of this <u>Section</u> <u>11(b)</u> shall be received in trust for the benefit of the Administrative Agent, shall be segregated from other funds of such Grantor and shall be forthwith paid over to the Administrative Agent as Security Collateral in the same form as so received (with any necessary indorsement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) No Grantor shall amend, or permit to be amended, the limited liability company agreement (or operating agreement or similar agreement) or partnership agreement of any Restricted Subsidiary of any Grantor whose Equity Interests are, or are required to be, Security Collateral in a manner to cause such Equity Interests to constitute a security under Section 8-103 of the Uniform Commercial Code or the corresponding code or statute of any other applicable jurisdiction unless such Grantor shall have delivered to the Administrative Agent certificates evidencing such Pledged Equity in accordance with <u>Section</u> <u>6(a)</u>.

Section 12. <u>As to Certain Pledged Agreements</u>. Each Grantor hereby consents to the assignment for security purposes and pledge to the Administrative Agent for the benefit of the Secured Parties of each Pledged Agreement to which it is a party by any other Grantor hereunder.

Section 13. <u>As to Letter-of-Credit Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Grantor, by granting a security interest in its Receivables consisting of letter-of-credit rights to the Administrative Agent, intends to (and hereby does) assign to the Administrative Agent its rights (including its contingent rights) to the proceeds of all letters of credit of which such Grantor is or hereafter becomes a beneficiary or assignee; <u>provided</u> that the Administrative Agent agrees that such proceeds are to be paid to the applicable Grantor unless an Event of Default has occurred and is continuing. Upon the occurrence and during the continuance of an Event of Default, if requested by the Administrative Agent, each Grantor will promptly use commercially reasonable efforts to cause the issuer of such letter of credit and each nominated person (if any) with respect thereto to consent to such Grantor's assignment of the proceeds thereof pursuant to a consent in form and substance reasonably satisfactory to the Administrative Agent and deliver written evidence of such consent to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon the occurrence and during the continuance of an Event of Default, each Grantor will, promptly upon written request by the Administrative Agent, (i) notify (and such Grantor hereby authorizes the Administrative Agent to notify) the issuer and each nominated person with respect to each of the letters of credit of which such Grantor is or hereafter becomes a beneficiary or assignee that the proceeds thereof have been assigned to the Administrative Agent hereunder and any payments due or to become due in respect thereof are to be made directly to the Administrative Agent or its designee and (ii) arrange for the Administrative Agent to become the transferee beneficiary of letter of credit.

Section 14. [<u>Reserved</u>].

Section 15. <u>Administrative Agent Appointed Attorney-in-Fact</u>. Each Grantor hereby irrevocably appoints the Administrative Agent such Grantor's attorney-in-fact solely with respect to the Collateral (such appointment to cease upon the payment in full of all the Secured Obligations) with full authority in the place and stead of such Grantor and in the name of such Grantor or otherwise, from time to time, upon the occurrence and during the continuation of an Event of Default, in the Administrative Agent's reasonable discretion, to take any action and to execute any instrument that the Administrative Agent may deem reasonably necessary or advisable to accomplish the purposes of this Agreement, including, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to ask for, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become due under or in respect of any of the Collateral,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to receive, indorse and collect any drafts or other instruments, documents and chattel paper, in connection with <u>clause (a)</u> above, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to file any claims or take any action or institute any proceedings that the Administrative Agent may deem necessary or desirable for the collection of any of the Collateral or otherwise to enforce compliance with the terms and conditions of any Pledged Agreement or the rights of the Administrative Agent with respect to any of the Collateral.

Section 16. <u>Administrative Agent May Perform</u>. If any Grantor fails to perform any agreement contained herein and the Administrative Agent requests in writing that such Grantor perform such agreement, in the event that the Grantor continues to fail to perform such agreement within a reasonable time following the Administrative Agent's request, the Administrative Agent may, as the Administrative Agent reasonably deems necessary to protect the security interest granted hereunder in the Collateral or to protect the value thereof, but without any obligation to do so and so long as an Event of Default shall have occurred and be continuing, itself perform, or cause performance of, such agreement, and the expenses of the Administrative Agent incurred in connection therewith shall be payable by such Grantor under <u>Section</u> <u>10.04</u> of the Credit Agreement. The Administrative Agent agrees to give notice to such Grantor of such performance; <u>provided</u>, <u>however</u> that any failure by the Administrative Agent to give such notice shall not invalidate such performance or the Administrative Agent's authority to so perform or the Administrative Agent's entitlement to reimbursement of the related expenses.

Section 17. <u>The Administrative Agent</u><u>'</u><u>s Duties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The powers conferred on the Administrative Agent hereunder are solely to protect the Secured Parties' interest in the Collateral and shall not impose any duty upon it to exercise any such powers. Except for the exercise of reasonable care in the safe custody of any Collateral in its possession or in the possession of an Affiliate of the Administrative Agent or any designee (including without limitation, a Subagent) of the Administrative Agent acting on its behalf and the accounting for moneys actually received by it or its Affiliates hereunder, the Administrative Agent shall have no duty as to any Collateral, as to ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any Collateral, whether or not any Secured Party has or is deemed to have knowledge of such matters, or as to the taking of any necessary steps to preserve rights against any parties or any other rights pertaining to any Collateral. The Administrative Agent and any of its Affiliates or any designee (including, without limitation, a Subagent) on its behalf shall be deemed to have exercised reasonable care in the custody and preservation of any Collateral in its possession or in the possession of an Affiliate or any designee (including without limitation, a Subagent) on its behalf if such Collateral is accorded treatment substantially equal to that which it accords its own property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Anything contained herein to the contrary notwithstanding, the Administrative Agent may from time to time, when the Administrative Agent deems it to be necessary, appoint one or more subagents (each, a "<u>Subagent</u>") acceptable to the Company acting reasonably for the Administrative Agent hereunder with respect to all or any part of the Collateral. In the event that the Administrative Agent so appoints any Subagent with respect to any Collateral, (i) the assignment and pledge of such Collateral and the security interest granted in such Collateral by each Grantor hereunder shall be deemed for purposes of this Security Agreement to have been made to such Subagent, in addition to the Administrative Agent, for the ratable

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benefit of the Secured Parties, as security for the Secured Obligations of such Grantor, (ii) such Subagent shall automatically be vested, in addition to the Administrative Agent, with all rights, powers, privileges, interests and remedies of the Administrative Agent hereunder and pursuant to the terms hereof, with respect to such Collateral, and (iii) the term "Administrative Agent," when used herein in relation to any rights, powers, privileges, interests and remedies of the Administrative Agent with respect to such Collateral, shall include such Subagent; <u>provided</u>, <u>however</u>, that no such Subagent shall be authorized to take any action with respect to any such Collateral unless and except to the extent expressly authorized in writing by the Administrative Agent.

Section 18. <u>Remedies</u>. If any Event of Default shall have occurred and be continuing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party upon default under the UCC (whether or not the UCC applies to the affected Collateral) and also may: (i) require each Grantor to, and each Grantor hereby agrees that it will at its expense and upon request of the Administrative Agent forthwith, assemble all or part of the Collateral as directed by the Administrative Agent and make it available to the Administrative Agent at a place and time to be designated by the Administrative Agent that is reasonably convenient to both parties; (ii) without notice except as specified below, sell the Collateral or any part thereof in one or more parcels at public or private sale, at any of the Administrative Agent's offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Administrative Agent may in its reasonable discretion deem commercially reasonable; (iii) occupy any premises owned or leased by any of the Grantors where the Collateral or any part thereof is assembled or located for a reasonable period in order to effectuate its rights and remedies hereunder or under law, without obligation to such Grantor in respect of such occupation; and (iv) exercise any and all rights and remedies of any of the Grantors under or in connection with the Collateral, or otherwise in respect of the Collateral, including, without limitation, (A) any and all rights of such Grantor to demand or otherwise require payment of any amount under, or performance of any provision of, the Pledged Agreements, the Receivables, the Related Contracts and the other Collateral, (B) withdraw, or cause or direct the withdrawal, of all funds with respect to the Account Collateral and (C) exercise all other rights and remedies with respect to the Pledged Agreements, the Receivables, the Related Contracts and the other Collateral, including, without limitation, those set forth in Section 9-607 of the UCC. Each Grantor agrees that, to the extent notice of sale shall be required by law, at least ten Business Days' notice to such Grantor of the time and place of any sale shall constitute reasonable notification of any such sale. The Administrative Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. The Administrative Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any cash held by or on behalf of the Administrative Agent and all cash proceeds received by or on behalf of the Administrative Agent in respect of any sale of, collection from, or other realization upon all or any part of the Collateral may, in the discretion of the Administrative Agent, be held by the Administrative Agent as collateral for, and then or at any time thereafter applied in whole or in part by the Administrative Agent for the ratable benefit of the Secured Parties against, all or any part of the Secured Obligations, in the order of priority specified in <u>Section</u> <u>8.03</u> of the Credit Agreement. Any surplus of such cash or cash proceeds held by or on the behalf of the Administrative Agent and remaining after payment in full of all the Secured Obligations shall be paid over with reasonable promptness to the applicable Grantor or to whomsoever may be lawfully entitled to receive such surplus.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All payments received by any Grantor under or in connection with any Pledged Agreement or otherwise in respect of the Collateral shall be received in trust for the benefit of the Administrative Agent, shall be segregated from other funds of such Grantor and shall be forthwith paid over to the Administrative Agent in the same form as so received (with any necessary indorsement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Administrative Agent may, without notice to any Grantor except as required by law and at any time or from time to time, charge, set-off and otherwise apply all or any part of the Secured Obligations then due and owing against any funds held with respect to the Account Collateral or in any other deposit account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event of any sale or other disposition of any of the Intellectual Property Collateral of any Grantor, the goodwill symbolized by any Trademarks subject to such sale or other disposition shall be included therein.

The Administrative Agent agrees that it shall not take any of the actions specified in this <u>Section</u> <u>18</u> except during the continuance of an Event of Default.

Section 19. <u>Amendments; Waivers; Additional Grantors; Etc.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No amendment or waiver of any provision of this Agreement, and no consent to any departure by any Grantor herefrom, shall in any event be effective unless the same shall be in writing and signed by the Administrative Agent and such Grantor, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. No failure on the part of the Administrative Agent, any other Secured Party or any Grantor to exercise, and no delay in exercising any right hereunder, shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon the execution and delivery by any Person of a security agreement supplement in substantially the form of <u>Exhibit A</u> hereto (each a "<u>Security Agreement Supplement</u>"), such Person shall be referred to as an "<u>Additional Grantor</u>" and shall be and become a Grantor and a Subsidiary Grantor hereunder, and each reference in this Agreement and the other Loan Documents to "Grantor" and "Subsidiary Grantor" shall also mean and be a reference to such Additional Grantor, each reference in this Agreement and the other Loan Documents to the "Collateral" shall also mean and be a reference to the Collateral granted by such Additional Grantor and each reference in this Agreement to a Schedule shall also mean and be a reference to the schedules attached to such Security Agreement Supplement. If applicable, at the time of execution and delivery of such Security Agreement Supplement, such Person shall also execute and deliver to the Administrative Agent an Intellectual Property Security Agreement.

Section 20. <u>Notices, Etc</u>. All notices and other communications provided for hereunder shall be in writing (including telecopier) and mailed, telecopied or otherwise delivered, in the case of the Company or the Administrative Agent, addressed to it at its address specified in the Credit Agreement and, in the case of each Grantor other than the Company, addressed to it at its address set forth opposite such Grantor's name on the signature pages hereto or on the signature page to the Security Agreement Supplement pursuant to which it became a party hereto (and with a copy to the Company); or, as to any party, at such other address as shall be designated by such party in a written notice to the other parties. All such notices and other communications shall, when mailed, telegraphed or telecopied, be effective upon receipt. Delivery by telecopier or electronic mail of an executed counterpart of a signature page to any amendment or waiver of any provision of this Agreement or of any Exhibit hereto to be executed and delivered hereunder shall be effective as delivery of an original executed counterpart thereof. As agreed to by the Company, including as set forth in <u>Section</u> <u>10.02(b)</u> of the Credit Agreement, the Administrative Agent and the applicable Secured Parties from time to time, notices and other communications may also be delivered by e-mail to the e-mail address of a representative of the applicable Person provided from time to time by such Person.

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Section 21. <u>Continuing Security Interest; Assignments Under the Credit Agreement</u>. This Agreement shall create a continuing security interest in the Collateral and shall (a) remain in full force and effect until the latest of (i) the payment in full in cash of the Secured Obligations (other than contingent indemnification obligations as to which (x) no claim has been made or (y) if a claim has been made, such claim is in a determinable amount and has been Cash Collateralized), and (ii) the expiration or termination or Cash Collateralization in accordance with Section 2.03(g) of the Credit Agreement of all Letters of Credit, (b) be binding upon each Grantor, its successors and assigns and (c) inure, together with the rights and remedies of the Administrative Agent hereunder, to the benefit of the Secured Parties and their respective successors, transferees and assigns.

Section 22. <u>Release; Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon any sale, lease, transfer or other disposition of any item of Collateral of any Grantor in accordance with the terms of the Loan Documents or otherwise as specified in <u>Section</u> <u>9.10</u> of the Credit Agreement, the security interest in such Collateral granted hereunder shall be automatically released without and action required on the part of the Administrative Agent or any Secured Party and the Administrative Agent will, at such Grantor's expense, execute and deliver to such Grantor such documents as such Grantor or the applicable transferee shall reasonably request to evidence the release of such item of Collateral from the assignment and security interest granted hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon the latest of (i) the payment in full in cash of the Secured Obligations (other than contingent indemnification obligations as to which (x) no claim has been made or (y) if a claim has been made, such claim is in a determinable amount and has been Cash Collateralized), and (ii) the expiration or termination or Cash Collateralization in accordance with Section 2.03(g) of the Credit Agreement of all Letters of Credit, the pledge and security interest granted hereby shall terminate and all rights to the Collateral shall revert to the applicable Grantor. Upon any such termination, the Administrative Agent will, at the applicable Grantor's expense, execute and deliver to such Grantor such documents as such Grantor shall reasonably request to evidence such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any execution and delivery of documents pursuant to this Section 22 shall be without recourse to or warranty by the Administrative Agent.

Section 23. <u>Reinstatement</u>. The obligations of the Grantors under this Agreement shall be automatically reinstated if and to the extent that for any reason any payment by or on behalf of the Company or other Loan Party in respect of the Secured Obligations is rescinded or must be otherwise restored by any holder of any of the Secured Obligations, whether as a result of any proceedings in bankruptcy or reorganization or otherwise.

Section 24. <u>Security Interest Absolute</u>. All rights of the Administrative Agent hereunder, the grant of a security interest in the Collateral and all obligations of each Grantor hereunder shall be absolute and unconditional irrespective of (a) any lack of validity or enforceability of the Credit Agreement, any other Loan Document, any agreement with respect to any of the Obligations or any other agreement or instrument relating to any of the foregoing, (b) any change in the time, manner or place of payment of, or in any other term of, all or any of the Secured Obligations, or any other amendment or waiver of or any consent to any departure from the Credit Agreement, any other Loan Document or any other agreement or instrument, (c) any exchange, release or non-perfection of any Lien on other collateral, or any release or amendment or waiver of or consent under or departure from any guarantee, securing or guaranteeing all or any of the Secured Obligations or (d) any other circumstance that might otherwise constitute a defense (other than a defense of full payment or performance) available to, or discharge of, any Grantor in respect of the Secured Obligations or this Agreement.

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Section 25. <u>Execution in Counterparts</u>. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by telecopier or electronic mail shall be effective as delivery of an original executed counterpart of this Agreement.

Section 26. <u>Administrative Agent</u><u>'</u><u>s Expenses; Limitation of Liability; Indemnification</u>. The parties hereto agree that the Administrative Agent shall be entitled to reimbursement of its expenses incurred hereunder and the limitation of liability and indemnification provisions as provided in <u>Section</u> <u>10.04</u> of the Credit Agreement as if such section was set out in full herein and references to "the Company" therein were references to each Grantor.

Section 27. <u>Governing Law; Jurisdiction; WAIVER OF JURY TRIAL</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The provisions of <u>Sections 10.13(b)</u>, <u>10.13(c)</u>, <u>10.13(d)</u> and <u>10.14</u> of the Credit Agreement are hereby incorporated by reference, <u>mutatis</u> <u>mutandis</u>.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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**IN WITNESS WHEREOF**, each Grantor has caused this Agreement to be duly executed and delivered by its officer thereunto duly authorized as of the date first above written.

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| | |
|:---|:---|
| **MSG NATIONAL PROPERTIES, LLC,**<br> as a Grantor | **MSG NATIONAL PROPERTIES, LLC,**<br> as a Grantor |
| By: | /s/ Philip D'Ambrosio |
|  | Name: Philip D'Ambrosio |
|  | Title: Senior Vice President and Treasurer |
| **MSG BEACON, LLC,**<br> as a Grantor | **MSG BEACON, LLC,**<br> as a Grantor |
| By: | /s/ Philip D'Ambrosio |
|  | Name: Philip D'Ambrosio |
|  | Title: Senior Vice President and Treasurer |
| **MSG CHICAGO, LLC,**<br> as a Grantor | **MSG CHICAGO, LLC,**<br> as a Grantor |
| By: | /s/ Philip D'Ambrosio |
|  | Name: Philip D'Ambrosio |
|  | Title: Senior Vice President and Treasurer |
| **RADIO CITY PRODUCTIONS LLC,**<br> as a Grantor | **RADIO CITY PRODUCTIONS LLC,**<br> as a Grantor |
| By: | /s/ Philip D'Ambrosio |
|  | Name: Philip D'Ambrosio |
|  | Title: Senior Vice President and Treasurer |
| **THE GRAND TOUR, LLC,**<br> as a Grantor | **THE GRAND TOUR, LLC,**<br> as a Grantor |
| By: | /s/ Philip D'Ambrosio |
|  | Name: Philip D'Ambrosio |
|  | Title: Senior Vice President and Treasurer |

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| | |
|:---|:---|
| **RADIO CITY TRADEMARKS, LLC,**<br> as a Grantor | **RADIO CITY TRADEMARKS, LLC,**<br> as a Grantor |
| By: | /s/ Philip D'Ambrosio |
|  | Name: Philip D'Ambrosio |
|  | Title: Senior Vice President and Treasurer |

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Accepted and agreed to as of the date first above written:

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| | |
|:---|:---|
| **JPMORGAN CHASE BANK, N.A.,**<br> as Administrative Agent | **JPMORGAN CHASE BANK, N.A.,**<br> as Administrative Agent |
| By: | /s/ Anthony Galea |
|  | Name: Anthony Galea |
|  | Title: Executive Director |

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## Exhibit 10.43

**Exhibit 10.43** 

***Execution Version***

**CERTAIN CONFIDENTIAL INFORMATION, IDENTIFIED BY BRACKETED ASTERISKS "[\*\*\*\*\*]", HAS BEEN OMITTED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

**ARENA LICENSE AGREEMENT** 

**between** 

**MSG ARENA, LLC** 

**and** 

**NEW YORK KNICKS, LLC** 

Dated as of April 15, 2020

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| | | |
|:---|:---|:---|
| **<u>**TABLE OF CONTENTS**</u>** | **<u>**TABLE OF CONTENTS**</u>** | **<u>**TABLE OF CONTENTS**</u>** |
|  ARTICLE I DEFINITIONS | ARTICLE I DEFINITIONS | 1 |
|  ARTICLE II TERM | ARTICLE II TERM | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.01 | Term; Commencement Date | 6 |
|  ARTICLE III LICENSE FEE | ARTICLE III LICENSE FEE | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.01 | License Fee | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.02 | Payment of License Fee | 7 |
|  ARTICLE IV USE OF ARENA | ARTICLE IV USE OF ARENA | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.01 | Arena Areas | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.02 | Knicks Use | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.03 | Licensor's Right of Entry | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.04 | Scheduling | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.05 | Alterations | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.06 | Manner of the Knicks' Use | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.07 | Knicks Misuse | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.08 | Surrender | 11 |
|  ARTICLE V TICKETS, SUITES AND CLUBS | ARTICLE V TICKETS, SUITES AND CLUBS | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.01 | Prices | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.02 | Ticket Revenues | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.03 | Suites; Madison Club; The Loft | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.04 | Future Ticket and Premium Products | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.05 | Box Office; Ticket Printing; In-Arena Ticket Sales | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.06 | Ticket Agent | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.07 | Ticket Settlement Process | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.08 | Access to Tickets | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.09 | Credentials and Passes | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.10 | Admission to Arena | 20 |
|  ARTICLE VI CONCESSIONS | ARTICLE VI CONCESSIONS | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.01 | F&B Concessions and Catering | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.02 | Team Merchandise | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.03 | Non-Team Merchandise | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.04 | Third-Party Contracts | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.05 | Operation on a Fair Basis; Standard of Service | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.06 | Settlement | 22 |

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| | | |
|:---|:---|:---|
|  ARTICLE VII SIGNAGE AND SPONSORSHIPS | ARTICLE VII SIGNAGE AND SPONSORSHIPS | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.01 | Definitions | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.02 | Team Sponsorship Assets | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.03 | Arena Game Shared Sponsorship Assets | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.04 | Non-Team Sponsorship Assets | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.05 | Arena Naming Rights | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.06 | Other Revenue | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.07 | Signage and Sponsorship Settlement Process | 26 |
|  ARTICLE VIII BROADCASTING | ARTICLE VIII BROADCASTING | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.01 | Broadcast Rights and Facilities | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.02 | Broadcast Renovations | 27 |
|  ARTICLE IX LICENSOR SERVICES | ARTICLE IX LICENSOR SERVICES | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.01 | General Services | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.02 | Game Day Services | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.03 | Delta Club and JP Morgan Club | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.04 | Staffing Levels for Certain Services | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.05 | Budgeting and Estimates | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.06 | Settlement | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.07 | Provision of Licensor Services | 32 |
|  ARTICLE X PROMOTION; TRADEMARKS; DATA OWNERSHIP | ARTICLE X PROMOTION; TRADEMARKS; DATA OWNERSHIP | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.01 | Promotional Outlets | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.02 | Trademark Licenses | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.03 | Customer Data | 34 |
|  ARTICLE XI EXCLUSIVITY COVENANT | ARTICLE XI EXCLUSIVITY COVENANT | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 11.01 | Covenant | 35 |
|  ARTICLE XII CASUALTY AND CONDEMNATION | ARTICLE XII CASUALTY AND CONDEMNATION | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.01 | Termination or Restoration Due to Condemnation | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.02 | Termination or Restoration Due to Casualty | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.03 | Condemnation Proceeding and Awards | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.04 | Temporary Taking | 42 |

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ii

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---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.05 | Inability to Timely Restore; Estimate of Time and Cost to Restore | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.06 | Replacement Arena | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.07 | Intention of the Parties | 45 |
|  ARTICLE XIII INDEMNIFICATION | ARTICLE XIII INDEMNIFICATION | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 13.01 | General Indemnification | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 13.02 | Notice of Claims and Rights to Defend and Settle Claims | 45 |
|  ARTICLE XIV INSURANCE AND SUBROGATION | ARTICLE XIV INSURANCE AND SUBROGATION | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 14.01 | Knicks Insurance Coverage | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 14.02 | Knicks Insurance Requirements | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 14.03 | Knicks Certificates of Insurance | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 14.04 | Knicks Waiver of Subrogation | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 14.05 | Licensor Insurance Coverage | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 14.06 | Licensor Insurance Requirements | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 14.07 | Licensor Certificates of Insurance | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 14.08 | Licensor Waiver of Subrogation | 49 |
|  ARTICLE XV WORK STOPPAGE | ARTICLE XV WORK STOPPAGE | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 15.01 | Impact on License Fee | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 15.02 | Treatment of Refunds or Credits | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 15.03 | Scheduling | 50 |
|  ARTICLE XVI CERTAIN TAXES | ARTICLE XVI CERTAIN TAXES | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 16.01 | Property Taxes | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 16.02 | Commercial Rent Tax | 50 |
|  ARTICLE XVII KNICKS DEFAULT; LICENSOR'S RIGHTS AND REMEDIES | ARTICLE XVII KNICKS DEFAULT; LICENSOR'S RIGHTS AND REMEDIES | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 17.01 | Knicks Default | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 17.02 | Remedies of Licensor | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 17.03 | Remedies of Licensor for an Exclusivity Breach | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 17.04 | League's Right to Notice of and Cure Knicks Defaults | 52 |
|  ARTICLE XVIII LICENSOR DEFAULT; KNICKS' RIGHTS AND REMEDIES; RIGHTS IN THE EVENT OF REPEAL OF PROPERTY TAX EXEMPTION | ARTICLE XVIII LICENSOR DEFAULT; KNICKS' RIGHTS AND REMEDIES; RIGHTS IN THE EVENT OF REPEAL OF PROPERTY TAX EXEMPTION | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 18.01 | Licensor Default | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 18.02 | Remedies of the Knicks | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 18.03 | Rights in the Event of Repeal of Property Tax Exemption | 53 |

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iii

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---

| | | |
|:---|:---|:---|
|  ARTICLE XIX ASSIGNMENT | ARTICLE XIX ASSIGNMENT | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 19.01 | Licensor Assignment | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 19.02 | Knicks Assignment | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 19.03 | No Other Assignment | 54 |
|  ARTICLE XX MISCELLANEOUS | ARTICLE XX MISCELLANEOUS | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.01 | Force Majeure | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.02 | Consents and Approvals | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.03 | Entire Agreement | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.04 | Notices | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.05 | Successors Bound | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.06 | Governing Law; Disputes | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.07 | Captions and Headings; Certain Rules of Construction | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.08 | Counterparts | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.09 | Confidentiality | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.10 | League Rules | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.11 | Superior Interests | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.12 | Severability | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.13 | Waiver | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.14 | Further Assurances | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.15 | No Third-Party Beneficiary; Enforcement of Third-Party Agreements | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.16 | Books and Records | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.17 | Audit Rights | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 20.18 | Access to Financial Information | 60 |

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**SCHEDULES** 

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**ARENA LICENSE AGREEMENT** 

This ARENA LICENSE AGREEMENT (this "**Agreement**") is made as of April 15, 2020 (the "**Effective Date**") between MSG Arena, LLC, a Delaware limited liability company ("**Licensor**"), and New York Knicks, LLC, a Delaware limited liability company (the "**Knicks**"). Licensor and the Knicks are each referred to individually as a "**Party**" and collectively as the "**Parties**."

**<u>RECITALS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Licensor owns and operates the arena commonly known as Madison Square Garden, which is located at 4
Pennsylvania Plaza, New York, New York 10001 that contains approximately 18,800 seats for basketball games, and is suitable for the exhibition of basketball games and for other purposes (the "**Arena** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. New York Knicks, LLC owns and operates the professional basketball team known as the New York Knicks (the
" **Team**") in the National Basketball Association (the "**NBA**" or the "**League** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Licensor wishes to grant the Knicks, on behalf of the Team, certain rights to use specified parts of the Arena
at specified times, and the Knicks desire to so use the Arena at such times, upon the terms and conditions set forth in this Agreement.

Now, therefore, in consideration of the foregoing, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

**ARTICLE I** 

**DEFINITIONS** 

"**ADA Consent Decree**" means the Consent Decree entered November 5, 2007 in the lawsuit entitled <u>United States of America vs. Madison Square Garden, L.P., et al.</u>, 07 Civ. 9704 (RJH), in the United States District Court for the Southern District of New York.

"**Advertising**" means, collectively, all advertising, sponsorship and promotional activity, signage, messages and displays of every kind and nature at or regarding the Arena, whether audio or visual and whether now existing or developed in the future, including the following: (i) the right to name the Arena or any portion thereof, including identifying such name on the Arena concourses, the entrances to the Arena, premium seating areas or any other areas at the Arena; (ii) permanent, non-permanent and transitory signage or advertising displayed on permanent (e.g., fixed panel) or non permanent (e.g., rotating) advertising panels or on the interior or exterior of the Arena (including Arena marquee boards and other exterior signage); (iii) advertising appearing on fixtures or equipment (such as scoreboard advertising and canopy advertising); (iv) audio or video public address advertising and message board advertising; (iv) electronic insertion, fascia boards, liquid electronic displays, ribbon boards and other forms of electronic signage ("**LED Signage**"); (v) print and display advertising, including advertising on or in game programs, schedules, tickets and yearbooks; (vii) promotional events or activities sponsored by corporate

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partners; (viii) the exhibition and promotion of products and services at the Arena (e.g., kiosks and special areas in the concourse); (ix) advertising worn or carried by concessionaire personnel or other personnel engaged in the operation of any Arena event; (x) advertising affixed to or included with cups, napkins, utensils, plates or other similar items used to consume Concessions at the Arena ("**Concession Items**"); (xi) advertising at concession areas; and (xii) promotional or premium item give-aways.

"**Affiliate**" means, with respect to any specified Person, any other Person directly or indirectly controlling or controlled by, or under direct or indirect common control with, such specified Person, or which is a director, officer, employee, or partner (limited or general) of such specified Person, but with respect to either Party specifically excluding the other Party and the other Party's publicly owned parent and such parent entity's direct and indirect subsidiaries. For the purpose of this definition, "control", when used with respect to any specified Person, means the power to direct or cause, directly or indirectly, the direction of the management and policies of such Person whether through the voting of securities, by contract or otherwise. The terms "controlling" and "controlled" have meanings correlative to the foregoing.

"**Agreement**" has the meaning set forth in the preamble.

"**Arena**" has the meaning set forth in Recital A.

"**Arena Agency Agreements**" has the meaning set forth in <u>Section</u> <u>7.02(b)</u>.

"**Attendance Based Allocation**" has the meaning set forth in <u>Schedule 6.01</u>.

"**Auditing Party**" has the meaning set forth in <u>Section</u> <u>20.17</u>.

"**Books and Records**" has the meaning set forth in <u>Section</u> <u>20.16</u>.

"**Casualty**" shall mean any damage, destruction or other property casualty of any kind or nature, ordinary or extraordinary, foreseen or unforeseen resulting from any cause, including any Force Majeure event.

"**Catering Services**" and "**Catering Gross Receipts**" have the meanings set forth in <u>Schedule 6.01</u>.

"**Commencement Date**" has the meaning set forth in <u>Section</u> <u>2.01</u>.

"**Common Areas**" has the meaning set forth in <u>Schedule 4.01</u>.

"**Concessions**" means F&B Concessions, Team Merchandise sold or provided at the Arena, and Non-Team Merchandise.

"**Condemnation**" means a taking by eminent domain, condemnation or appropriation by any governmental authority or other Person with the power of eminent domain for any public or private use or purpose.

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"**Condemnation Award**" means all sums, amounts or other compensation for the Arena payable to the Knicks or Licensor as a result of or in connection with any Condemnation.

"**Convenience Fees**" has the meaning set forth in <u>Section</u> <u>5.06(a)</u>.

"**Contract Year**" means, other than the Initial Contract Year, each period of the Term from July 1 through the immediately following June 30.

"**Courtside Advertising**" has the meaning set forth in <u>Section</u> <u>7.01</u>.

"**Customer Data**" has the meaning set forth in <u>Section</u> <u>10.03(a)</u>.

"**Effective Date**" has the meaning set forth in the preamble.

"**Exclusivity Breach**" has the meaning set forth in <u>Section</u> <u>17.01(e)</u>.

"**Exhibition and Regular Season Home Games**" means games played by the Team during the exhibition season or regular season of the League where the Team (and not the opposing team) has the right to designate the location of such game or which is considered one of the Team's home games by the League for purposes of League Rules, standings or scheduling.

"**F&B Concessions**" and "**F&B Concessions Gross Receipts**" have the meanings set forth in <u>Schedule 6.01</u>.

"**Facility Ticket Fee**" has the meaning set forth in <u>Section</u> <u>5.02(c)</u>.

"**First Full Contract Year**" means July 1, 2020 through June 30, 2021.

"**Force Majeure**" has the meaning set forth in <u>Section</u> <u>20.01</u>.

"**Game Day Services**" has the meaning set forth in <u>Section</u> <u>9.02</u>.

"**General Services**" has the meaning set forth in <u>Section</u> <u>9.01</u>.

"**Gross Receipts**" has the meaning set forth in <u>Schedule 6.01</u>.

"**Home Date**" means each date on which a Home Game is scheduled.

"**Home Games**" means collectively, Exhibition and Regular Season Home Games and Playoff Home Games.

"**Initial Contract Year**" means the period beginning on the Commencement Date through June 30, 2020.

"**Joint Sponsors**" has the meaning set forth in <u>Section</u> <u>7.02(b)</u>.

"**Knicks**" has the meaning set forth in the preamble.

"**Knicks Default**" has the meaning set forth in <u>Section</u> <u>17.01</u>.

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"**Knicks Event**" means Home Games and Other Knicks Events.

"**Knicks Misuse**" has the meaning set forth in <u>Section</u> <u>4.07</u>.

"**Knicks' Personnel and Guests**" means the personnel, guests and invitees of the Knicks (including holders of tickets of admission to the Arena, holders of press and media credentials, and visiting team personnel).

"**League**" has the meaning set forth in <u>Recital B</u>.

"**League Rules**" means (a) all of the mandates, rules, regulations, policies, bulletins, directives, memoranda, resolutions and agreements of the NBA (or its members generally), the other NBA Entities, their respective governing bodies (including the NBA Board of Governors and the committees thereof), and the NBA Commissioner generally applicable to members of the NBA and (b) all agreements and arrangements to which the Knicks or the Team is (or after the date of this Agreement may become) subject or by which the Knicks or the Team or their assets are (or may become) bound with or in favor of any of the NBA Entities, including without limitation the Transaction Agreement dated as of the date hereof, in each case, as they presently exist or as they may, from time to time, be entered into, created or amended, including the Constitution and By-Laws of the NBA, the operations manual of the NBA, any collective bargaining agreement to which the NBA is a party, trademark and other intellectual property license agreements and all current and future television, radio, and other agreements involving the broadcast of NBA games.

"**License Fee**" has the meaning set forth in <u>Section</u> <u>3.01</u>.

"**Licensor**" has the meaning set forth in the preamble.

"**Licensor Default**" has the meaning set forth in <u>Section</u> <u>18.01</u>.

"**Licensor Promotion**" has the meaning set forth in <u>Section</u> <u>10.01(a)</u>.

"**Licensor Services**" means, collectively, General Services and Game Day Services.

"**Madison Club**" has the meaning set forth in <u>Section</u> <u>5.03(d)</u>.

"**Maximum Credit or Refund**" has the meaning set forth in <u>Section</u> <u>15.02</u>.

"**MSG Sports**" means MSG Sports, LLC, the parent company of the Knicks and the Rangers.

"**NBA**" has the meaning set forth in <u>Recital B</u>.

"**NBA Entities**" means the NBA, NBA Properties, Inc., NBA Media Ventures, LLC, NBA Development League Holdings, LLC, WNBA Holdings, LLC, any other entity formed generally by the NBA members and each direct and indirect subsidiary of any of the foregoing, and each of their respective successors and assigns.

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"**Net Profits**" has the meaning set forth in <u>Schedule 6.01</u>.

"**No Fault Occurrence**" has the meaning set forth in <u>Section</u> <u>18.03</u>.

"**Non-Auditing Party**" has the meaning set forth in <u>Section</u> <u>20.17</u>.

"**Non-Team Merchandise**" means all programs, other publications, and merchandise other than Team Merchandise.

"**Other Arena Event**" has the meaning set forth in <u>Section</u> <u>4.04(c)</u>.

"**Other Knicks Event**" has the meaning set forth in <u>Section</u> <u>4.04(b)</u>.

"**Party**" or "**Parties**" has the meaning set forth in the preamble.

"**Person**" means any individual, corporation, company, voluntary association, partnership, incorporated organization, trust, limited liability company, or any other entity or organization.

"**Playoff Home Games**" means games played after the end of the League's regular season as part of its championship tournament, for which the Team must qualify based on its regular season record, where the Team (and not the opposing team) has the right to designate the location of such game or which is considered one of the Team's home games by the League for purposes of League Rules or scheduling.

"**Property Tax Exemption**" has the meaning set forth in <u>Section</u> <u>16.01</u>.

"**Property Tax Exemption Agreement**" has the meaning set forth in <u>Section</u> <u>16.01</u>.

"**Rangers**" has the meaning set forth in <u>Section</u> <u>4.04(a)</u>.

"**Rangers Games**" has the meaning set forth in <u>Section</u> <u>4.04(a)</u>.

"**Representatives**" has the meaning set forth in <u>Section</u> <u>20.09</u>.

"**Standard**" means, with respect to the applicable requirement, obligation or matter, (a) in compliance with applicable law, (b) in compliance with League Rules (including the NBA Arena Standards) and (c) at a first-class level equal to or better than that at which NBA arenas in major U.S. markets are then operated, maintained and improved for NBA games (in the case of improvements, taking into reasonable consideration the age and location of the Arena and its existing structural limitations), and in no event less than the highest standard of quality and manner in which the Arena (i) was operated, maintained and improved historically (post 2011-2013 transformation) with respect to Home Games and (ii) will be operated, maintained and improved for Other Arena Events.

"**Suite 200**" has the meaning set forth in <u>Section</u> <u>5.03(h)</u>.

"**Suites**" shall mean the premium locations within the Arena currently designated as "Event Level Suites," "Madison Level Suites" and "Signature Level Suites" as more specifically described in <u>Schedule 4.01</u>, and any replacement suites in those locations.

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"**Team**" has the meaning set forth in <u>Recital B</u>.

"**Team Areas**" has the meaning set forth in <u>Schedule 4.01</u>.

"**Team Merchandise**" means merchandise (including programs and other publications) that bears the Team's name, logo(s), or other intellectual property relating to the Team, or any other League intellectual property, including any merchandise relating to or depicting (as the case may be) the League and/or any of its teams, players, and/or events (e.g., the NBA All-Star Game, the NBA Playoffs,), or the logo(s) of any of the foregoing.

"**Team Merchandise Allocation**" has the meaning set forth in <u>Section</u> <u>6.02(d)</u>.

"**Term**" has the meaning set forth in Section 2.01.

"**The Loft**" has the meaning set forth in <u>Section</u> <u>5.03(d)</u>.

"**Ticket**" or "**Tickets**" has the meaning set forth in <u>Section</u> <u>5.01</u>.

"**Ticket Agent**" has the meaning set forth in <u>Section</u> <u>5.06(a)</u>.

"**Ticket Agent Agreement**" has the meaning set forth in <u>Section</u> <u>5.06(a)</u>.

"**Untenantable Condition**" means a condition of the Arena that occurs on account of a Casualty or Condemnation and, as a result of which League Rules or applicable law prohibit the playing of Home Games at the Arena or would entail denial of access to or loss of a material portion of (i) the general seating areas of the Arena or (ii) revenues of the Knicks derived from the Arena.

"**VIP Club Services**" has the meaning set forth in <u>Section</u> <u>9.03</u>.

"**VIP Clubs**" has the meaning set forth in <u>Section</u> <u>9.03</u>.

"**Work Stoppage**" has the meaning set forth in <u>Section</u> <u>15.01</u>.

**ARTICLE II** 

**TERM** 

**Section 2.01 <u>Term; Commencement Date</u>**. The term of this Agreement shall commence on April 17, 2020 (the "**Commencement Date**") and, unless earlier terminated in accordance with the terms of this Agreement, shall end on June 30, 2055 (the "**Term**").

**ARTICLE III** 

**LICENSE FEE** 

**Section 3.01 <u>License Fee</u>**. The Knicks shall pay to Licensor a license fee, without any right of offset, reduction or abatement (except as expressly provided in this Agreement), as

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follows: (a) for the Initial Contract Year, a prorated amount equal to $21,800,000 divided by forty-four (44), multiplied by the number of Exhibition and Regular Season Home games scheduled to be played in the Arena in the Initial Contract Year; (b) for the First Full Contract Year, $22,454,000; and (c) for each subsequent Contract Year, 103% of the license fee for the immediately preceding Contract Year (the "**License Fee**").

**Section 3.02 <u>Payment of License Fee</u>**. For each Contract Year, the Knicks shall pay the License Fee in twelve (12) equal installments on the first business day of each month during the Contract Year, except that the License Fee for the Initial Contract Year shall be paid in equal monthly installments on the first business day of the month following the Commencement Date and the first business day of each remaining month in the Initial Contract Year.

**ARTICLE IV** 

**USE OF ARENA** 

**Section 4.01 <u>Arena</u> <u>Areas</u>**. The Arena includes the areas identified on <u>Schedule 4.01</u> attached hereto. The Parties shall regularly coordinate and discuss with one another and accommodate the other's reasonable requests for adjustment thereto. The Parties acknowledge and agree that the precise locations, square footage, appearance and amenities of the Common Areas and Team Areas set forth therein shall be subject to change from time to time during the Term in accordance with <u>Section</u> <u>4.05</u>.

**Section 4.02 <u>Knicks Use</u>**. Licensor hereby grants to the Knicks and Knicks' Personnel and Guests, and the Knicks hereby accept from Licensor, for itself and the Knicks' Personnel and Guests, a license to use the Arena as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Common Areas and Team Areas</u>. Subject to League Rules, on each Home Date, beginning at approximately the earlier of 10:00 a.m. or three (3) hours prior to the start of any Home Game, until two (2) hours after the completion of such Home Game, the Knicks shall have the exclusive right and license to use the Common Areas and the Team Areas for the purpose of playing of Home Games and conducting related activities, and the presentation thereof by any and all means, live and over radio and television and all other means of communication now existing and hereafter developed, and such other uses expressly permitted in this Agreement or as may be agreed to by the Parties. Notwithstanding the foregoing start time, Licensor may schedule Other Arena Events (as defined below) on Home Dates (each, a "**Shared Date**") in accordance with <u>Section</u> <u>4.04(c)</u>; provided that in no event shall the Knicks have exclusive access to the Common Areas and Team Areas any later than approximately three (3) hours prior to the start of any Home Game (or as otherwise required by League Rules). Licensor shall reimburse the Knicks for any costs incurred by the Knicks solely as a result of a Home Game occurring on a Shared Date (e.g., visiting team relocating a shootaround). In addition, the Knicks shall have reasonable access, on a non-exclusive basis, to the Common Areas and the Team Areas for purposes related to the business or basketball operations of the Knicks at reasonable times on days that are not Home Dates and during periods on Home Dates other than those specified above (but in no case during ticketed Other Arena Events (as defined in <u>Section</u> <u>4.04(c)</u> below)), provided the Knicks' use of the Common Areas may not unreasonably interfere with any use by Licensor or authorized use by its other licensees (including the Rangers).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Access</u>. All rights and licenses set forth in this <u>Section</u> <u>4.02</u> include in favor of the Knicks and the Knicks' Personnel and Guests (including holders of tickets of admission to the Arena, holders of press and media credentials, and visiting team personnel), subject to the Arena's safety and security protocols as provided in <u>Section</u> <u>4.06(b)</u>, (i) rights and licenses of entry, ingress and egress over and across all applicable portions of the Arena, and (ii) the right and license to bring onto the Arena (and to permit the Knicks' Personnel and Guests to bring into the Arena), and retain ownership and control of, items of personal property and equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Grant of License</u>. This Agreement is intended to, and shall be construed as, a grant of a license by Licensor to the Knicks and the Knicks' Personnel and Guests, and shall not operate to vest in the Knicks any ownership or leasehold interest, or other real estate interest, in the Arena or the property of Licensor, whether real or personal, tangible or intangible, or any use or possessory rights other than those rights expressly granted by the license hereunder (and then subject to and in accordance with all of the provisions of this Agreement).

**Section 4.03 <u>Licensor</u><u>'</u><u>s</u> <u>Right of Entry</u>**. Notwithstanding the provisions of <u>Section</u> <u>4.02</u>, but subject to League Rules, Licensor and its agents and representatives shall have the right to enter into and upon any and all parts of the Arena, including the Team Areas and the Common Areas, as necessary for the purpose of carrying out its obligations under this Agreement, to operate the Arena, to perform necessary safety, security and maintenance activities and for other purposes that do not unreasonably interfere with the Knicks' rights hereunder.

**Section 4.04 <u>Scheduling</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Team Games</u>. The scheduling procedure for Home Games shall continue in a manner consistent with past practice, subject to, and at all times in accordance with, League Rules (including, without limitation, with respect to playoff scheduling). It is understood between the Parties that Licensor is entering into a simultaneous license with New York Rangers, LLC (the "**Rangers**"), on behalf of the professional hockey team known as the New York Rangers, to host hockey games ("**Rangers Games**") in the Arena. The Parties will continue to cooperate with each other in good faith recognizing that Licensor has obligations to the Rangers. Consistent with past practice, Licensor will jointly coordinate with the League and the National Hockey League in scheduling Home Games and Rangers Games. In addition, each Party shall (i) use reasonable efforts to avoid material business impacts on the other Party where such Party has the ability to do so and (ii) reasonably cooperate and honor requests for changes to previously scheduled or held dates. For the avoidance of doubt, in the event of any conflict between any of the foregoing and League Rules, League Rules shall control and govern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Other Knicks Events and Usage</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to the terms of this subsection, the Knicks shall be entitled to license the Arena without payment of an incremental license fee on up to two (2) occasions per Contract Year, to present certain Team-related events other than Home Games (e.g., open practices, try-outs; scrimmages; camps, clinics and youth academies; marketing, promotion or other related purposes; press gatherings; Knicks charity events (which may be ticketed); luncheons, meetings, parties ticket sales events, season subscriber events and similar functions as mutually agreed) (each, an "**Other Knicks Event**"). Dates

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for Other Knicks Events may be reserved no earlier than sixty (60) in advance of the proposed event and such reservations shall be subject to any dates previously booked by Licensor for Other Arena Events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Knicks may use such Team Areas and Common Areas, and Licensor shall provide such Licensor Services (for which Game-Day Services the Knicks shall pay or reimburse Licensor as provided herein), as are reasonably requested by the Knicks for such Other Knicks Events. Other Knicks Events shall be subject to any other terms and conditions to be negotiated by the Parties. Unless the Parties agree otherwise with respect to a particular event, all terms of this Agreement applicable to Home Games will apply to Other Knicks Events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) At the Knicks' request, Licensor may, in its discretion, license the Arena and/or other Licensor-owned venues (e.g., Beacon Theater, Radio City, Tao) to the Knicks to the extent available and without payment of an incremental license fee (the Knicks shall pay any expenses). Such events may be in addition to Other Knicks Events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Arena Events</u>. Subject to <u>Section</u> <u>4.04(a)</u>, Licensor shall be entitled to schedule Rangers Games, other sporting events, concerts, and any other types of events in the Arena (each, an "**Other Arena Event**"), including, for the avoidance of doubt, on the same day as a Home Game; provided that: (i) no Other Arena Event shall relieve Licensor of its obligations hereunder, including to deliver the Common Areas and Team Areas to the Knicks in the condition required by ARTICLE IX by or before the times required in <u>Section</u> <u>4.02</u>(a), (ii) no Other Arena Event shall be scheduled if it could reasonably be expected to materially interfere with the presentation, use or operation of the Arena for any previously scheduled Knicks Events (or the revenues derived by the Knicks therefrom) , and (iii) without the Knicks' prior consent, Licensor shall not license use of the Arena to a Competitor Basketball Team. A "Competitor Basketball Team" shall mean a five-on-five men's professional basketball team that plays 10 or more home games in the Arena and specifically excludes any national teams (e.g., Olympics), any college teams and the Harlem Globetrotters, even if members of any of the foregoing are paid to play.

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| | |
|:---|:---|
| **Section** | **4.05 <u>Alterations</u>.**  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Knicks Alterations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) During the Term, and subject to any existing union jurisdictional arrangement relating to the Arena, the Knicks may make non-structural alterations to the Team Areas, subject to Licensor's approval thereof, which approval shall not be unreasonably withheld, conditioned or delayed (it being understood that Licensor may deny its approval if such alterations would reasonably be expected to adversely impact in a material way Licensor or any third party who regularly uses the space (e.g. the Rangers)). Licensor shall reimburse the Knicks for the cost of such alterations to the extent necessary to comply with its obligations under this Agreement, provided that any such cost must be preapproved in writing by Licensor, which approval shall not be unreasonably withheld, conditioned or delayed. To the extent those alterations are not necessary for Licensor to comply with its obligations under this Agreement, those alterations shall be made at the Knicks' sole cost and expense.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) During the Term, the Knicks may also request that Licensor make alterations to the Team Areas or Common Areas. Licensor shall make those alterations to the extent necessary to comply with its obligations under this Agreement, at Licensor's sole cost and expense. To the extent those alterations are not necessary for Licensor to comply with its obligations under this Agreement, those alterations shall be subject to the approval of Licensor, such approval not to be unreasonably withheld, conditioned or delayed, and shall be made at the Knicks' sole cost and expense (subject to the Knicks' approval of Licensor's plans and costs); it being understood that Licensor may deny its approval if such alterations would reasonably be expected to adversely impact in a material way Licensor or any third party who regularly uses the space (e.g. the Rangers).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Licensor Alterations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Licensor shall have the right to make alterations or other changes to the Arena, in its sole discretion and at its sole cost and expense; provided that Licensor shall be required to obtain the prior written consent (not to be unreasonably withheld, conditioned or delayed) of the Knicks to the extent that any such alterations or changes could reasonably be expected to impact the Knicks' rights or obligations hereunder, or the presentation, set-up, use or operation of the Arena for any Knicks Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting ARTICLE IX, Licensor shall be responsible for making alterations, upgrades, modifications and improvements to the Arena (and the components thereof) at Licensor's sole cost and expense (subject to <u>Section</u> <u>4.05(c))</u>, as may be required from time to time in order to maintain the Arena in accordance with the Standard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Alterations intended to generate additional premium seating revenues for both Licensor and the Knicks shall be governed by the terms of <u>Section</u> <u>5.04</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Alterations Pursuant to League Rules</u>. Notwithstanding anything to the contrary contained in this Agreement, any alterations, upgrades, modifications or improvements to the Arena that are made solely to comply with any new or amended League Rules that are enacted after the Commencement Date shall be made at the Knicks' sole expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Parties shall cooperate in good faith to agree on the plans and specifications for alterations made under <u>Sections 4.05(a) - (c)</u> and the time period during which such alterations are expected to be made. All such alterations shall (i) be made by Licensor or its contractors (except for alterations made pursuant to <u>Section</u> <u>4.05(a)(i))</u>, (ii) comply with all applicable laws, ordinances, orders, regulations and League Rules, (iii) be completed in a good and workmanlike manner, using new materials or their equivalent, without unreasonable delay, (iv) not interfere with gameplay in accordance with League Rules and (v) not materially interfere with the presentation, set-up, use or operation of the Arena for any Knicks Event (or the revenues derived by the Knicks therefrom), without the Knicks' prior written approval.

**Section 4.06 <u>Manner of the Knicks</u><u>'</u> <u>Use</u>**. At all times during the Term:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Knicks shall use the Arena in accordance with all League Rules and applicable laws, ordinances, and regulations. Licensor shall operate the Arena in accordance with

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all League Rules, applicable laws, ordinances, and regulations. Without limiting the foregoing, each party shall be responsible, with respect to its functions, rights and obligations under this Agreement, for compliance with the ADA Consent Decree as if it is a party thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Knicks and their guests, invitees, patrons, and designees shall be subject to any reasonable and nondiscriminatory rules and regulations and security procedures that Licensor imposes on the use of the Arena, so long as the same (i) are not inconsistent with the other provisions of this Agreement (including Licensor's requirement to maintain and operate the Arena in accordance with the Standard) or League Rules, and (ii) are uniformly applied to all other occupants and users of the Arena except to the extent necessitated by differing particular event types.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Party shall, at any time and from time to time, upon not less than ten (10) days prior written request from the other Party, execute, acknowledge and deliver to the requesting Party, in a form reasonably satisfactory to the requesting Party and, if applicable, its existing or prospective direct or indirect lender or purchaser, a written estoppel statement certifying, (i) that this Agreement is unmodified and in full force and effect (or, if there have been modifications, that the same is in full force and effect as modified and stating the modifications), (ii) if true (or, if not entirely true, listing any exceptions), that the requesting Party is not in default hereunder, (iii) the date to which the License Fee and other charges have been paid in advance, if any, and (iv) such other accurate certifications as may reasonably be required by the requesting Party or its existing or prospective direct or indirect lender or purchaser, and agreeing to give copies to the requesting Party's existing or prospective direct or indirect lender or purchaser of all material notices by the stating Party to the requesting Party, and agreeing to afford the requesting Party's existing or prospective direct or indirect lender or purchaser an opportunity to cure any default of the stating Party within the applicable cure period afforded to the requesting Party hereunder. It is intended that any such statement delivered pursuant to this subsection may be relied upon by any prospective direct or indirect lender to or purchaser of the Knicks or of the Arena and their respective successors and assigns.

**Section 4.07 <u>Knicks Misuse</u>**. The Knicks shall promptly reimburse Licensor for costs of cleaning, repairs or replacements, net of insurance proceeds received under Article XIV, necessitated by (a) uses by the Knicks not permitted under this Agreement, or (b) grossly negligent, reckless or willful acts of the Knicks or visiting NBA teams for Knicks Events that cause such damage (collectively, "**Knicks Misuse**").

**Section 4.08 <u>Surrender</u>**. Upon the expiration of the Term or earlier termination of this Agreement, the Knicks shall promptly vacate the Arena under the direction of and in the manner reasonably approved by Licensor, and shall surrender all of its keys, access cards, and other credentials and access items for the Arena to Licensor, and shall inform Licensor of all combinations on all of its locks, safes, and vaults, if any, in the Arena. Without limiting the foregoing, the Knicks shall not remove any alterations, improvements, or other property (other than personal property not affixed or attached to the Arena or any elements thereof) from the Arena unless permitted to do so by Licensor, and the Knicks shall promptly reimburse Licensor for the cost of repairing any damage caused by such removal. Any personal property of the Knicks which remains in the Arena after the expiration of the Term or earlier termination of this Agreement may, at the option of Licensor, be deemed to have been abandoned, and, in Licensor's sole discretion, (a) may be retained by Licensor as its property, (b) shall be disposed of by the Knicks at the request of Licensor, or (c) may be disposed of by Licensor.

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**ARTICLE V** 

**TICKETS, SUITES AND CLUBS** 

**Section 5.01 <u>Prices</u>**. As between Licensor and the Knicks, (a) the Knicks shall have sole discretion to control the manifest and determine the prices and fees (subject to <u>Section</u> <u>5.06(a))</u> for all tickets and other indicia authorizing admission (each a "**Ticket**") for general admission seating, standing room and other general admission spectator positions in the Arena for all Knicks Events, and (b) except as provided below, Licensor shall have sole discretion to control the manifest and determine the license fees to be paid for the Suites, The Loft, the Madison Club and similar premium spaces developed in accordance with <u>Section</u> <u>5.03</u> and <u>Section</u> <u>5.04</u> during the Term. There shall be no limit on the number of complimentary Tickets the Knicks may issue.

**Section 5.02 <u>Ticket Revenues</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Ticket Sales</u>. The Knicks shall have the exclusive right to sell and resell all Tickets and retain all revenues from all Ticket sales and resales, including the Facility Ticket Fee (as defined in <u>Section</u> <u>5.02(c))</u>, the Knicks' share of any Convenience Fee (as defined in <u>Section</u> <u>5.06(a))</u>, and any personal seat licenses the Knicks may elect to sell, provided, that the Knicks right to sell personal seat licenses shall be limited to Knicks Events only (and no Other Arena Events) and provided further, that any "form" agreement for the sale or licensing of personal seat licenses shall be subject to Licensor's prior approval, not to be unreasonably withheld, conditioned or delayed and the Knicks shall not make any material alterations to such form agreement that adversely impact Licensor without Licensor's prior written approval, not to be unreasonably withheld, conditioned or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Loaded-Value Tickets</u>. To the extent that the Knicks offer a ticket product where the ticketholder is entitled to gratis Concessions in addition to seating to a Home Game, Licensor shall provide such Concessions and the Knicks shall remit to Licensor the actual retail value of any Concessions redeemed by each such ticketholder, which revenue will be included in Team Merchandise revenue (to the extent that the sale/redemption relates to Team Merchandise) or F&B Concessions Gross Receipts, as applicable. To the extent that the sale/redemption relates to Non-Team Merchandise, Licensor shall retain all such redeemed amounts. For purposes of clarity, any revenue associated with loaded-value tickets that is not redeemed for Concessions shall remain the property of the Knicks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Facility Ticket Fee</u>. The Knicks shall charge to all initial Home Game Ticket purchasers a per-Ticket facility fee (the "**Facility Ticket Fee**"), in an amount determined from time to time by Licensor following consultation with the Knicks. The Facility Ticket Fee will generally be applied consistently to tickets for Other Arena Events and Home Games, provided that (a) the Knicks may charge a higher or lower Facility Ticket Fee for Home Games with Licensor's approval (not to be unreasonably withheld, conditioned or delayed) and (b) the Knicks shall have the option, without Licensor's approval, not to charge a Facility Ticket Fee to season ticketholders (including holders of full and partial season packages), group ticketholders, suite pass holders or with respect to any complimentary tickets.

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**Section 5.03 <u>Suites;</u> <u>Madison Club; The Loft</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Suites</u>. Subject to other provisions of this <u>Section</u> <u>5.03</u>, Licensor shall have the exclusive right to license Suites to third parties for all or a portion of Knicks Events and Other Arena Events and collect license fees for the privilege of using the Suites and related amenities. Licensor shall be responsible for all costs of licensing, operating, servicing and maintaining the Suites in accordance with the Standard. Revenues generated from the licensing of Suites shall be allocated as set forth in <u>Section</u> <u>5.03(b)</u>. All of the terms and conditions of such licenses and appurtenant Arena admission tickets and other rights and obligations related to the occupancy of Suites, shall be governed by separate agreements (each, a "**Suite Agreement**") entered into between Licensor and the licensees of Suites. Licensor's "form" Suite Agreements shall be subject to the prior written approval of the Knicks (not to be unreasonably withheld, conditioned or delayed) and Licensor shall not make any material alterations to the form Suite Agreements or any executed Suite Agreement that adversely impact the Knicks without the Knicks' prior written approval, not to be unreasonably withheld, conditioned or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Suites Revenue</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *All-Event Suites*. For Suites licensed for all or substantially all Arena events including Home Games (other than certain major Other Arena Events, including All-Star Games, awards shows, major college championship events, etc.), including those sold on a half-share, quarter-share or other fractional portion basis, the Knicks shall receive 35% of all revenues collected or received by Licensor from the sale of such Suites (the "**Knicks Suites Revenue Share**"), net of contracted catering credits (if any), taxes and credit card fees, and Licensor shall retain the remaining amounts, except as provided in <u>Section</u> <u>5.03(g)</u> and <u>6.01(a)</u> (e.g., if a Suite Agreement includes a license fee of $1,100,000 and a contracted catering credit of $100,000, Knicks receive as its share of the license fee $350,000 (($1,100,000 -$100,000) x 35%). In the event of a No Fault Occurrence, the Knicks Suites Revenue Share shall be increased to 43%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Team-Only and Single Game Suites*. The Knicks shall receive all revenues collected or received by Licensor from the sale of Suites licensed only for individual or packages of Home Games and/or other Knicks Events, net of the retail value of food and beverage packages included in the license fee ("**Included F&B Packages**"), contracted catering credits (if any), taxes and credit card fees, less a Licensor commission of 25% of such net revenue (provided that, in the event of a No Fault Occurrence, the Parties will agree on an appropriate reduction to such commission to account for any reduction in the additional amount that would have been payable to the Knicks under the last sentence of <u>Section</u> <u>5.03(b)(i)</u> if all Suites were sold for all Arena events).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Custom Team and Non-Team Suite Packages*. For customized Suite packages (*i.e.*, a pre-determined mix of events that include Knicks Events and Other Arena Events), revenues shall be proportionally allocated to each event included in such package based on the then-applicable rate card for the included events. The Knicks shall receive all

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revenues collected or received by Licensor attributable to the Knicks Events included in such package, net of Included F&B Packages, contracted catering credits (if any), taxes and credit card fees, to the extent used during Knicks Events, less a Licensor commission of 25% of such net revenue as so allocated (provided that, in the event of a No Fault Occurrence, the Parties will agree on an appropriate reduction to such commission to account for any reduction in the additional amount that would have been payable to the Knicks under the last sentence of <u>Section</u> <u>5.03(b)(i)</u> if all Suites were sold for all Arena events).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *Suite Passes for Knicks Events*. Notwithstanding the foregoing, all revenues from the sale or license of passes for incremental admission to Suites for Knicks Events (commonly known as "suite passes"), net of taxes and credit card fees, shall be retained by the Knicks. The parties shall agree on the terms and pricing of such suite passes, which shall be sold by Licensor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) *Catering Credits.* Any contracted catering credits or Included F&B Packages granted to a Suite licensee as part of a Suite license shall be included in Catering Gross Receipts as and to the extent used during Knicks Events. Any contracted catering credits or Included F&B Packages granted to a Suite licensee as part of a (x) single-game or Team-only package or (y) customized Suite package including Knicks Events and Other Arena Events (as described in <u>Section</u> <u>5.03(b)(iii))</u> shall be subject to the prior written approval of the Knicks, such approval not to be unreasonably withheld, conditioned or delayed. With respect to any contracted catering credits or Included F&B Packages granted to a Suite licensee as part of any suite package containing a mix of Team and non-Team events, Licensor shall ensure that such contracted catering credits or Included F&B Packages have the same terms and conditions, at the Suite licensee's discretion, at both Knicks Events and Other Arena Events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Suite 16</u>. The Knicks acknowledge that Suite 16 on the tenth floor of the Arena is currently licensed to the TAO Group, in which Licensor's parent company has a majority ownership interest. The Knicks agree that notwithstanding Licensor's ownership interest in the TAO Group, the Knicks' share of the license revenue for this suite shall be calculated based on the fees paid or payable to Licensor by the TAO Group, and not with respect to any membership or other revenue or income generated by the TAO Group, provided that such fees are established and maintained on an arms-length basis (it being acknowledged that the fee payable by the TAO Group to Licensor for the twelve-month period ended June 30, 2019 is arms-length for purposes of this <u>Section</u> <u>5.03(c))</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>The Madison Club and The Loft</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Certain clients will pay Licensor membership fees that entitle them to access (a) the 170-seat defined hospitality and seating space on the west side of the Arena currently known as the "Madison Club" during all Home Games and all Rangers Games, boxing, tennis, and NCAA college basketball events at the Arena (the "**Madison Club**"); and/or (b) the 48-seat defined hospitality and seating space on the east side of the Arena currently known as "The Loft at Madison Square Garden" during all Arena events including Home Games (other than certain major Other Arena Events, including All-Star

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Games, awards shows, major college championship events, etc.) ("**The Loft**"). Licensor shall not sell more than 170 or 48 tickets of admission or memberships to the Madison Club or The Loft, respectively, for any Knicks Events without the prior written consent of the Knicks, not to be unreasonably withheld, conditioned or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Licensor shall be responsible for selling and servicing Madison Club and Loft memberships and operating, maintaining and servicing the Madison Club and The Loft in accordance with the Standard. The Knicks shall receive 35% of all revenues collected or received by Licensor from the sale of memberships to the Madison Club and The Loft, net of taxes and credit card fees (the "**Knicks Hospitality Share**"). The Knicks shall reimburse Licensor for (a) the direct cost of providing complimentary food and beverage, and (b) the cost of other direct event variable labor (e.g., concierge, coat check, etc.), other than labor related to Concessions that are sold, attributable to the Madison Club and The Loft for Home Games, in each case under (a) and (b), which costs shall be consistent for all events and on a basis as determined in consultation with the Knicks. Schedule 5.03(d) sets forth the staffing levels for the Madison Club and The Loft as of the 2019-20 Season (which takes into account the services provided for the Madison Club and The Loft as of the 2019-20 Season). For all Home Games and similar (based on factors including expected attendance) Other Arena Events, Licensor shall maintain substantially similar levels of service and staffing (as set forth on Schedule 5.03(d)), provided that the Parties shall regularly coordinate and discuss with one another the appropriate levels of service and staffing and accommodate the other's reasonable requests for adjustment thereto. In the event of a No Fault Occurrence, the Knicks Hospitality Share shall be increased to 43%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To the extent that Licensor sells specialized packages that are different from those referenced in <u>Sections 5.03(d)(i)-(ii)</u> above, the parties shall coordinate and agree on appropriate pricing, revenue share and/or commissions. To the extent that Licensor provides members of the Madison Club and/or The Loft with limited amount of *gratis* Concessions (e.g., through a loaded ticket) ("**Gratis Concessions**"), the Parties shall coordinate and mutually agree on appropriate terms, costs and revenue allocations for such Gratis Concessions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) All of the terms and conditions of the sale of such memberships shall be governed by separate agreements (the "**Hospitality Agreements**") entered into between Licensor and the members of the Madison Club and The Loft. Licensor's "form" Hospitality Agreements shall be subject to the prior written approval of the Knicks (not to be unreasonably withheld, conditioned or delayed) and Licensor shall not make any alterations to such form Hospitality Agreement or any executed Hospitality Agreement that materially adversely impact the Knicks without the Knicks' prior written approval, not to be unreasonably delayed or withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Sales by the Knicks</u>. Licensor may from time to time authorize the Knicks to attempt to license or sell on Licensor's behalf the Suites or memberships referred to in this Section 5.03. For purposes of clarity, the Parties agree that the revenue sharing referred to in this <u>Section</u> <u>5.03</u> shall apply whether the license or sale is consummated by Licensor, Knicks or MSG Sports' employees; provided that, if the license or sale is of Team-only or single game Suites (as

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described in <u>Section</u> <u>5.03(b)(ii))</u> or custom Team and non-Team Suite packages (as described in <u>Section</u> <u>5.03(b)(iii))</u> and is consummated by the Knicks or MSG Sports, Licensor's commission on such license or sale shall be 20% of the applicable net revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Settlement</u>. Licensor shall remit to the Knicks on a monthly basis a cash payment equal to the Knicks' share of revenues collected or received for the Suites, the Madison Club, The Loft (and any similar premium spaces developed during the Term in accordance with <u>Section</u> <u>5.04</u>), in each case, in accordance with <u>Section</u> <u>9.06</u>. To the extent that Licensor receives value in kind as payment for the sale of licenses or memberships to the Suites, the Madison Club or The Lofts, Licensor shall pay to the Knicks an amount based on the rate card value of such license or membership (e.g., if Licensor receives value in kind as full payment for an all-Event Suite, Licensor shall pay the Knicks the Knicks Hospitality Share of the rate card value of such Suite license). Licensor shall be responsible for the payment of all taxes and credit card fees with respect to all sales made by Licensor or its agents pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Complimentary Suites and Usage</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Knicks shall have the exclusive right to use without payment of a fee or other consideration one (1) Event Level Suite and associated tickets for each Knicks Event. Such suite shall be what is currently designated Event Level Suite 20, or another Event Level Suite as designated by Licensor, subject to Team's approval, not to be unreasonably withheld, conditioned or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Knicks may not license to third parties the Suite or associated tickets referred to in subsection (i), provided that it may request Licensor to attempt to license or sell such Suite or associated tickets for a particular Home Game or Home Games and/or Other Knicks Events. Any resulting revenue, net of Included F&B Packages, contracted catering credits (if any), taxes and credit card fees, will be shared by Licensor and the Knicks as if it were a single-game suite license pursuant to <u>Section</u> <u>5.03(b)(ii)</u>. Licensor may use or license such Suite or associated tickets for Other Arena Events without payment to the Knicks of the revenue share otherwise attributable to the license of Suites set forth in <u>Section</u> <u>5.03(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Upon request by the Knicks, and subject to availability, Licensor shall make available, at no cost, one (1) Madison-level or Signature-level Suite on a Home Game by Home Game basis solely for use by visiting team owners and executives and their guests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Licensor shall have the right to use one (1) Event Level Suite for all Knicks Events and Other Arena Events without payment to the Knicks of the revenue share otherwise attributable to the license of Suites set forth in <u>Section</u> <u>5.03(b)</u>. Notwithstanding the foregoing, to the extent Licensor decides to license such Event Level Suite in whole or in part to a third party and receives a license fee therefor, the Knicks shall receive their applicable revenue share (if any) as provided in <u>Section</u> <u>5.03(b)</u>. Such suite shall be the Suite currently designated Event Level Suite 19, or another Event Level Suite as designated by Licensor, subject to Team's approval, not to be unreasonably withheld, conditioned or delayed.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Unsold Suite, Madison Club and Loft Inventory</u>. Suites and associated tickets related to the Suites, the Madison Club and the Loft that are not licensed or sold for Home Games may be used by Licensor for prospecting for Suite, Madison Club and Loft licensees. Additional unsold Suite, Madison Club and Loft inventory may be used to provide for complimentary attendance by employees of the Knicks, Licensor and their respective Affiliates or for other business relationships in accordance with each company's complimentary ticket program. The Parties shall mutually determine how to allocate unsold suite inventory between the Parties, provided, that if the Parties cannot agree, seventy-five percent (75%) of such inventory shall be available to the Knicks for such purposes and twenty-five percent (25%) of such inventory shall be retained by Licensor for such purposes. In no event may the unused Suites or associated tickets related to Suites, Madison Club or Loft allocated under this <u>Section</u> <u>5.03(g)(v)</u> be licensed or sold by either Party, without the consent of the other Party (not to be unreasonably withheld, conditioned or delayed), in which case the Knicks shall receive their applicable revenue share as provided in <u>Sections 5.03(b)</u> or <u>5.03(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Suite 200</u>. Licensor shall maintain the executive lounge currently designated "Suite 200" (or a private hospitality area of substantially similar size offering substantially similar amenities, in the same or a different location in the Arena) for the use of senior executives and their invited guests ("**Suite 200**"). The Knicks shall have access to Suite 200 during Home Games in a manner consistent with past practice and shall bear or reimburse Licensor for all out-of-pocket costs associated with operating Suite 200 for Home Games. Any annual increase to the aggregate costs charged to the Knicks for operating Suite 200 shall not exceed 3% without the Knicks prior written approval, not to be unreasonably withheld, conditioned or delayed. The Knicks agree that senior executives of Licensor and their invited guests shall have complimentary access to Suite 200 during Home Games on the same basis as senior executives of the Knicks and their invited guests.

**Section 5.04 <u>Future Ticket and Premium Products</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Licensor, after consultation with and receipt of prior written approval from the Knicks, such approval not to be unreasonably withheld, conditioned or delayed, may develop new seating products where the ticket purchaser has the option to purchase seats for multiple event types (e.g., Home Games and Other Arena Events). If the Knicks approve such new seating products, the Knicks shall provide the required ticket inventory, and Licensor shall provide applicable amenities, at prices and other economic terms and splits to be negotiated and agreed upon by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Licensor, after consultation with and receipt of prior written approval from the Knicks, such approval not to be unreasonably withheld, conditioned or delayed, may develop new suites and/or seating products (e.g., new or altered premium spaces) where amenities additional to admission are provided to the ticket purchaser, licensor or member. If the Knicks approve such new seating products, allocation of capital and operating expenses, revenues and obligations shall be determined in a manner to be agreed upon.

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**Section 5.05 <u>Box Office; Ticket Printing; In-Arena Ticket Sales</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Box Office Operations</u>. If Licensor generally operates a box office (including will call support) for Other Arena Events, Licensor will also operate a box office (including will call support) during reasonable business hours, and for all Knicks Events commencing at the earlier of (i) noon and (ii) the opening of the Arena doors for the applicable Knicks Events and ending no earlier than the commencement of the third quarter of the Knicks Events, and shall provide substantially equivalent service and staffing, with respect to the sale of tickets for Home Games and Other Knicks Events to Other Arena Events all in a manner consistent with past practice, provided that the Parties shall regularly coordinate and discuss with one another the appropriate levels of service and staffing and accommodate the other's reasonable requests for adjustment thereto. At the Knicks' request, Licensor shall share with the Knicks all Customer Data (as defined in <u>Section</u> <u>10.03</u>) relating to the Knicks generated through box office operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Full and</u> <u>Partial Season Ticket Packages</u>. If requested by the Knicks and for so long as Licensor is generally printing tickets for Other Arena Events, Licensor shall coordinate, at the Knicks' reasonable direction, cost and expense, the printing of Tickets for full and partial season packages. The Knicks shall sell, invoice and collect all revenues from such Ticket packages in its sole discretion. The Knicks shall be responsible for all credit card fees and other similar charges in connection with the sale of such Tickets. The Knicks shall develop any and all creative content to be included on such Tickets printed by Licensor at the Knicks' request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Group Ticket Packages</u>. If requested by the Knicks and for so long as Licensor is generally printing tickets for Other Arena Events, Licensor shall coordinate, at the Knicks' reasonable direction, cost and expense, the printing of Tickets for group packages. The Knicks shall sell, invoice and collect all revenues from such Ticket packages in its sole discretion. The Knicks shall be responsible for all credit card fees and other similar charges in connection with the sale of such Tickets. The Knicks shall develop any and all creative content to be included on such Tickets printed by Licensor at the Knicks' request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>In-Arena Ticket Sales</u>. During Knicks Events, the Knicks shall be permitted to have tables and kiosks on the concourse for the sole purpose of selling season (including partial) ticket and group ticket packages for the Knicks and its Affiliates. The placement of such tables and kiosks shall be reasonably determined by Licensor consistent with past practice.

**Section 5.06 <u>Ticket Agent</u><u> </u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Ticket Agent Agreements</u>. The Knicks shall be required to utilize and comply with the current primary and secondary ticket provider agreement(s) with Licensor's ticket agent (the "**Ticket Agent**"), and any amendment, modification or replacement of the same in accordance with <u>Section</u> <u>5.06(b)</u>, (the "**Ticket Agent Agreements**") for applicable Ticket transactions for Home Games and any Other Knicks Events to which tickets are sold. It is understood that a portion of any upfront or annual fees received by Licensor from the Ticket Agent during the Term shall be allocated to the Knicks on a pro rata basis on equitable terms (e.g., based on projected ticket sales for the businesses covered by the Ticket Agent Agreements). It is further understood that the Knicks may establish in its discretion, following consultation with Licensor, the level of "convenience fees" or other fees to be imposed on Tickets for Knicks Events pursuant to the Ticket Agent Agreements ("**Convenience Fees**") and to retain as Knicks Ticket revenue hereunder all amounts collected in connection therewith subject to the provisions of the Ticket Agent Agreements that provide for a portion of such fees to be paid to the Ticket Agent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Amended or Replacement Ticket Agent Agreements.</u> Licensor shall have the right to negotiate and administer any amendments to the current Ticket Agent Agreements or any replacement ticket provider agreement with a third party, provided that, (i) any portion of such amendment or replacement agreement that relates to the Knicks or Knicks Events or (ii) any renewal or extension of the current Ticket Agent Agreements or any replacement ticket provider agreement, in each case, shall be subject to the prior written approval of the Knicks. If the Knicks do not grant such approval, the Knicks may enter into its own ticket provider agreement(s), provided that the Knicks or such other ticket provider shall pay all costs needed to implement such other ticketing systems at the Arena.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Access to Systems and Data</u>. Licensor shall use commercially reasonable efforts to (i) include in its Ticket Agent Agreements an obligation to provide the Knicks with substantially similar access to relevant information about the Knicks' customers and sales activity that resides in the Ticket Agent's database and other system components as is provided under Licensor's current agreement with Ticketmaster; (ii) enforce such obligation on behalf of the Knicks at the Knicks' expense and (iii) enforce any other terms of any Ticket Agent Agreements that affect the Knicks at the Knicks' expense; it being understood that, with respect to any agreements where the Knicks are an express party or a third party beneficiary, Licensor shall have no obligations under clauses (ii) or (iii), above.

**Section 5.07 <u>Ticket Settlement Process</u>**. Licensor shall (with respect to box office sales), and shall cause Ticket Agent to, remit to the Knicks all amounts collected in connection with the sale of Tickets on a weekly basis, together with an itemized statement indicating the number and price of each Ticket sold and related fees collected.

**Section 5.08 <u>Access to Tickets</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Complimentary Licensor Tickets for Home Games</u>. Licensor shall be afforded access to a pool of complimentary tickets for Home Games throughout the Term, on the following terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The pool shall include (x) the four (4) tickets ("feet on the floor" baseline tickets) currently used by the Executive Chairman and CEO of The Madison Square Garden Company and (y) ten (10) additional lower-bowl tickets, located in the center 100s sections or lower, or other sections as the Parties may otherwise agree, it being understood that the Parties shall regularly coordinate and discuss with one another and accommodate the other's reasonable requests for adjustment to the number and location of the "additional" complimentary tickets described in clause (y).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Complimentary tickets may be used by Licensor for its and its Affiliates' employees or other business purposes but may not be resold. If such complimentary tickets will not be used, such tickets may be sold by the Knicks and the Knicks may retain all revenue therefrom.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Pools of Tickets for Purchase</u>. In addition, the Knicks shall be afforded access to purchase tickets from a pool of tickets for Other Arena Events and Licensor shall be afforded access to purchase tickets from a pool of tickets for Home Games, in each case subject to availability. Such tickets may be used by the Knicks or Licensor (as applicable) for their Affiliates, employees or other business purposes but may not be resold. Each ticket pool shall also be subject to such other procedures, restraints and limitations as determined by the Party offering access. In both cases, the Parties shall regularly coordinate and discuss with one another and accommodate the other's reasonable requests for adjustment to the number and location of the tickets in the pool.

**Section 5.09 <u>Credentials and Passes</u>**. The Knicks may issue a reasonable number of passes to photo, press and media, staff, visiting teams, performers (e.g., dance teams and halftime performers), League personnel and any other Person, pursuant to the directions of the Knicks from time to time, permitting such selected persons free access to the Arena for Knicks Events and to specified areas of the Arena normally closed to the public; provided, however, any such issuance is in accordance with League Rules, including, without limitation, the then-prevailing NBA Arena Security Standards (including, as of the Commencement Date, Section V(A) therein) and Licensor's Arena safety and security protocols.

**Section 5.10 <u>Admission to Arena</u>**. Licensor shall not grant any spectator admission to the Arena for any Knicks Event unless such spectator has acquired and displays a Ticket or other indicia of admission (e.g., a press or related pass) to such Knicks Event issued by Licensor or the Knicks (or, if applicable, the League) in accordance with this Agreement.

**ARTICLE VI** 

**CONCESSIONS** 

**Section 6.01 <u>F&B Concessions</u> <u>and Catering</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Licensor shall have the exclusive right and obligation to operate and manage the sale of F&B Concessions and Catering Services during all Knicks Events in a manner reasonably calculated to maximize profits but subject to providing a positive customer experience in accordance with the Standard and subject to Schedule 6.01. The Knicks shall receive 50% of the Net Profits (as defined in Schedule 6.01) from the sale of F&B Concessions and Catering Services attributable to Knicks Events (the "**Knicks F&B Concessions and Catering Share**"). To the extent Licensor directly manages and conducts the sale of such F&B Concessions and Catering Services, such sales shall be provided in accordance with Schedule 6.01. In the event of a No Fault Occurrence, the Knicks F&B Concessions and Catering Share shall be increased to 58%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event Licensor retains a third party to provide F&B Concessions and/or Catering Services or enters into a lease, license or operating agreement for food and beverage space, in each case, in accordance with <u>Section</u> <u>6.04</u> the Knicks shall receive 50% of all amounts received by Licensor (including any annual payments, up-front payments, advances, back-end payments, earn-outs, guarantees, allowances, rebates, refunds, discounts or any other payments or revenues retained by Licensor or its Affiliate) attributable to Knicks Events from any such arrangement or agreement (the "**Third Party F&B Share**"); provided that, with respect to

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amounts received that cannot be specifically traced to a Knicks Event as opposed to an Other Arena Event, Licensor shall reasonably and fairly estimate the portion of the total amount that is attributable to Knicks Events (which estimate shall be subject to the review and approval of the Knicks, not to be unreasonably withheld, conditioned or delayed) and shall remit to the Knicks the Third Party F&B Share of the portion of such amount. In the event of a No Fault Occurrence, the Third Party F&B Share shall be increased to 58%.

**Section 6.02 <u>Team Merchandise</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Licensor shall have the exclusive right and obligation, at its sole cost and expense, to operate and manage the sale of Team Merchandise at the Arena (excluding collectibles and game-used items) in a manner reasonably calculated to maximize revenues, but subject to providing a positive customer experience in accordance with the Standard. <u>Schedule 6.02</u> sets forth the service and staffing for the sale of Team Merchandise for Regular Season Home Games as of the 2019-20 Season. Licensor shall maintain at least substantially similar levels of service and staffing for all Home Games provided that the Parties shall regularly coordinate and discuss with one another the appropriate levels of service and staffing and accommodate the other's reasonable requests for adjustment thereto. Notwithstanding anything herein to the contrary, as between the Parties, the Knicks shall have the exclusive right to sell and control the sale of Team Merchandise online and anywhere else (other than at the Arena) and retain all revenue therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Knicks shall source, purchase and own all Team Merchandise it designates for sale at the Arena and consign it to Licensor for sale. Licensor shall be responsible for reasonable storage and inventory control for Team Merchandise. The Knicks shall set the pricing of Team Merchandise. Licensor, at its sole cost, shall offer and sell Team Merchandise, and provide appropriate sales staff and supervision, at points of sale in existing and replacement in-Arena stores and other locations designated or approved by the Knicks (such approval not to be unreasonably withheld, conditioned or delayed), on Home Dates and at other times pursuant to <u>Section</u> <u>6.02(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Licensor shall retain 30% of revenues, net of taxes and credit card fees, collected by Licensor from the sale of Team Merchandise sold at the Arena by or on behalf of Licensor and remit the remainder to the Knicks, provided that the Knicks shall retain all revenue from any collectibles or game-used items received pursuant to any third-party agreement (e.g., Fanatics). Licensor shall be responsible for the payment of all taxes and credit card fees with respect to all such sales.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Licensor shall dedicate to Team Merchandise designated by the Knicks a minimum of 37.5% of the display space designated by Licensor in consultation with the Knicks (the "**Team Merchandise Allocation**") in the Madison Square Garden Store located in Chase Square and other subsequent stores located within the Arena that do not require an individual to have a ticket to access such store. It is understood and agreed that the Knicks and the Rangers (to the extent that they remain affiliated entities) may allocate display space to each other on an event-by-event and day-by-day basis; for the avoidance of doubt, Licensor shall not have access to more than 25% of the display space in the Madison Square Garden Store, except as provided in subsection (e), below.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Licensor and the Knicks agree that no Team Merchandise shall be required to be offered in such stores (or elsewhere in the Arena) while the Arena is being used for Other Arena Events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Parties shall regularly coordinate and discuss with one another the appropriate relative levels and locations of display space and accommodate the other's reasonable requests for adjustment thereto.

**Section 6.03 <u>Non-Team Merchandise</u>**. Subject to <u>Section</u> <u>6.02</u>, Licensor shall have the exclusive right to control the operation and sale of Non-Team Merchandise at the Arena at any time. Licensor shall retain all revenue from the sale of all Non-Team Merchandise. Licensor may use up to 10% of the display space in concourses and other ticketed areas during Home Games for the sale of Non-Team Merchandise, provided that such merchandise and the locations in which it is displayed and sold shall require the approval of the Knicks, not to be unreasonably withheld, conditioned or delayed. The Parties shall regularly coordinate and discuss with one another the appropriate relative levels and locations of display space and accommodate the other's reasonable requests for adjustment thereto.

**Section 6.04 <u>Third-Party Contracts</u>**. Licensor shall have the right to enter into a contract or contracts with one or more third parties pursuant to which such third parties shall conduct and manage the sale of some or all Concessions and/or Catering Services, provided that Licensor shall be required to obtain the prior written approval of the Knicks, not to be unreasonably withheld, conditioned or delayed, for service providers that (i) do not or will not provide similar services during Other Arena Events or (ii) will conduct or manage the sale of a majority of F&B Concessions or Team Merchandise. Notwithstanding the foregoing, Licensor shall reasonably consult with the Knicks regarding the terms of any proposed agreement with any third party that shall conduct or manage the sale of a majority of F&B Concessions or Team Merchandise.

**Section 6.05 <u>Operation on a Fair Basis; Standard of Service</u>**. Licensor shall operate, or contract with a third party for the operation of, Concessions and/or Catering Services on a basis that is fair to both Licensor and the Knicks and equivalent for Knicks Events and Other Arena Events. The quality of the service provided for Knicks Events shall be consistent with the Standard.

**Section 6.06 <u>Settlement</u>**. Licensor shall, or shall cause any third party conducting and managing the sale of Concessions and/or Catering Services to, remit to the Knicks all amounts from the sale of Concessions and/or Catering Services that the Knicks are entitled to under this ARTICLE VI in accordance with <u>Section</u> <u>9.06</u>. 

**ARTICLE VII** 

**SIGNAGE AND SPONSORSHIPS** 

**Section 7.01 <u>Definitions</u>.**

"**Arena Game Shared Sponsorship Assets**" means Advertising (including digital and fixed signage) visible or audible inside the Arena during Home Games and Other Arena Events, but expressly excluding Team Sponsorship Assets and Arena Naming Rights, which includes,

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without limitation, (a) bridge signage and entitlements, (b) vomitorium signage, (c) GardenVision underbelly and other fixed signage and Advertising on fixtures and equipment, (d) Advertising at concession areas and on Concession Items, (e) Advertising worn or carried by concessionaire personnel or other personnel engaged in the operation of Arena events and (f) naming rights and other entitlements of the lobby, concourses, suite levels, clubs and all other spaces in the Arena. For avoidance of doubt, Arena Game Shared Sponsorship Assets shall not include any Advertising (i) outside of the building entrances to the Arena (e.g., marquee spots or signage, outdoor digital board Advertising, breezeway signage or banners, Arena rooftop signage, etc.) which is not visible or audible inside the Arena bowl and sold to be visible or audible by seated Arena patrons, which Licensor shall have the exclusive right to sell and retain all revenue from or (ii) that is a Team Sponsorship Asset, which the Knicks shall have the exclusive right to sell and retain all revenue from in accordance with <u>Section</u> <u>7.02</u>, whether or not such Advertising may also be visible or audible inside the Arena during Other Arena Events.

"**Arena Naming Rights**" means the right of a sponsor to have its brand integrated into the name of the Arena, e.g., the "J.P. Morgan Madison Square Garden".

"**Courtside Advertising**" means electronic, virtual, and static Advertising and other signage displayed at Knicks Events that appears inside the Arena spectator bowl on: (a) seat back sleeves and other signage within the teams' bench areas (e.g., sports drink-branded coolers, cups, squeeze bottles, and towels); (b) the basketball playing floor (both "in-bounds" and "out-of-bounds" surface areas); (c) the basketball stanchions; (d) the backboard; (e) the backboard spine and base; (f) any moving or movable items (e.g., an indoor blimp/drone, t-shirt machines); (g) the scorer's, press, or other tables immediately surrounding the basketball playing floor (e.g., courtside and baseline signage devices); (h) entitlement of "Celebrity Row"; (i) team bench kickplates; (j) presentation of the "Seventh Avenue Squad" and Knicks City Dancers (or other pep squad); (k) seat back sleeves in stands that are present for Home Games or Other Knicks Events only; and (l) any other equipment, fixtures and items used by the Knicks in the vicinity of the basketball playing floor not already covered in the definition of Team Sponsorship Assets (but excluding any Arena Game Shared Sponsorship Assets).

"**In-Bowl Variable Advertising**" means Advertising and other visual signage appearing on, and other audio airing through or in connection with, (a) in-Arena electronic scoreboards, telescreens and any other message boards, (b) in-Arena LED Signage, (c) any part of the Arena spectator bowl through projection technology, augmented reality and/or virtual reality, and (d) Arena audio or visual public address Advertising.

"**Non-Team Sponsorship Assets**" means Advertising controlled by Licensor to the extent that it creates no direct association with the Team, other than Team Sponsorship Assets, Arena Naming Rights and Arena Game Shared Sponsorship Assets.

"**Sponsorship Sales and Service Representation Agreement**" means the agreement between Licensor's affiliate, MSG Entertainment Group, LLC ("MSGE") and the Knicks' parent entity, Knicks Holding, LLC ("Knicks Holding"), entered into approximately contemporaneously herewith, whereby Knicks Holding authorizes MSGE to enter into sponsorship agreements that include Team Sponsorship Assets.

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"**Team Sponsorship Allocation Agreement**" means the agreement between MSGE and MSG Sports, entered into approximately contemporaneously herewith, whereby MSG Sports agrees to deliver certain Team Sponsorship Assets in connection with certain current sponsorship agreements, and MSGE agrees to allocate and pay to Knicks Holding certain amounts with respect to such agreements.

"**Team Sponsorship Assets**" means, with respect to the Knicks or Knicks Events only (in each case, including within three (3) hours before, during and within two (2) hours after each Knicks Event), (a) Courtside Advertising; (b) In-Bowl Variable Advertising; (c) Advertising on Team programs, schedules, yearbooks and tickets; (d) GardenVision underbelly and other fixed signage and Advertising on fixtures and equipment; (e) Advertising relating to the player introduction tunnel (connecting locker room area to court); (f) Advertising relating to Team game day contests and promotions (e.g., bobblehead night, hat night, etc.); (g) Advertising that has been sold specifically with respect to only the Team (e.g., temporary Arena bowl stair signage present only for Knicks Events); (h) concourse activations; (i) Advertising relating to the Team and Knicks Event visiting team player locker rooms, training rooms and interview rooms; (j) the exhibition and promotion of products and services at the Arena (e.g., kiosks and special areas in the concourse) during Knicks Events or on any date in which a Knicks Event is scheduled to the extent pertaining to any Knicks Event (but excluding food and beverage and merchandise otherwise covered by this Agreement); (k) promotional or premium item give-aways at Knicks Events; (l) such other Advertising and sponsorship assets as currently exist or may later be developed that are Team- or Knicks Event-specific; and (m) for the avoidance of doubt, all other advertising, sponsorship and promotional activities relating to the Team that is not related to the Arena (including advertising on Team uniforms, broadcasts, websites, mobile application and social media platforms).

**Section 7.02 <u>Team Sponsorship Assets</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to subsections (b)-(c) of this <u>Section</u> <u>7.02</u>, the Knicks shall have the exclusive right to sell and retain all revenue from, and shall be responsible for all direct out of pocket costs and expenses related to, the operation and sale of Team Sponsorship Assets, including the right to enter into category-exclusive sponsorship agreements with respect to Team Sponsorship Assets. Notwithstanding the foregoing, Licensor shall have the right to (i) alter digital signage platforms at any time (e.g., elimination of LED ring) at Licensor's sole cost and expense, subject to reasonable advance consultation with the Knicks and provided that if such alterations would eliminate or materially alter any Team Sponsorship Assets contained in any agreement under which the Knicks provide or are committed to provide Team Sponsorship Assets as of the date of such alteration, Licensor will provide to the Knicks a replacement asset of equal or greater value (A) reasonably acceptable to the Knicks and (B) if such replacement is not permitted under such agreement, acceptable to the sponsor party to such agreement, and (ii) (x) approve, in its sole discretion, any permanent affixed signage in the Arena by the Knicks or (y) approve, such approval not to be unreasonably withheld, conditioned or delayed, any temporary affixed signage by the Knicks on (1) the Arena bowl stairs, (2) level 7 (currently referred to as the "Lexus Level") or (3) the bridge level (currently referred to as the "Chase Bridges") (clauses (1), (2) and (3) collectively, the "**Restricted Signage Areas**"); provided that (A) subject to 7.02(e), temporary banners and the like shall not require Licensor approval and (B) if at any time during the Term, Licensor includes, sells or permits any temporary signage (including digital or programmable

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signage) in the Restricted Signage Areas during Other Arena Events or otherwise, the Knicks shall have the right to include, sell or permit the same type of temporary signage in such Restricted Signage Areas in connection with Knicks Events without Licensor approval (and, for the avoidance of doubt, any such signage shall be considered Team Sponsorship Assets). For the avoidance of doubt, any concourse, lobby or similar activations shall be subject to <u>Sections 4.06(a)</u> <u>and 4.06(b)</u>. Licensor shall provide and maintain the in-Arena signage, assets and other elements associated with Team Sponsorship Assets (to the extent in the control of Licensor) in accordance with the Standard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Parties acknowledge and agree that their rights and obligations under this <u>Section</u> <u>7.02</u> shall be subject and subordinate to the Sponsorship Sales and Service Representation Agreement and the Team Sponsorship Allocation Agreement (collectively, the "**Arena Agency Agreements**"), as of the Effective Date and throughout the respective terms of such agreements. Pursuant to such Arena Agency Agreements, the Knicks shall be (i) required to provide Team Sponsorship Assets inventory committed to, and to comply with promotional category exclusivities granted to, certain Licensor sponsors ("**Joint Sponsors**") in accordance with such Joint Sponsors' respective agreements (each a "**Joint Sponsorship Agreement**") with Licensor and (ii) entitled to certain allocations of revenue received by Licensor pursuant to such agreements; each of (i) and (ii) as set forth in more detail in the Team Sponsorship Allocation Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to League Rules, the name and logo of any Arena Naming Rights partner or "Marquee"-level sponsor shall be exhibited on Team's home playing surface near Team's mid-court logo at the Arena (with 100% of the allocable revenue therefrom delivered to the Knicks).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Parties shall meet and confer regularly (contemplated to be no less frequently than once per calendar quarter) to discuss in good faith opportunities to maximize the collective value of their sponsorships by combining the sales of Team Sponsorship Assets, Arena Game Shared Sponsorship Assets and/or Non-Team Sponsorship Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything to the contrary contained herein, in no event shall the Knicks cover or interfere with any Arena Game Sponsorship Assets with any temporary, virtual or any other type of signage. Notwithstanding anything to the contrary contained herein, in no event shall Licensor cover or interfere with any Team Sponsorship Assets with any temporary, virtual or any other type of signage.

**Section 7.03 <u>Arena Game Shared Sponsorship Assets</u>** 

Licensor shall have the exclusive right to sell all Arena Game Shared Sponsorship Assets, provided that Licensor shall not, without the Knicks' prior written approval, (a) enter into any agreement that includes any Team Sponsorship Assets or (b) enter into any agreement or modify any arena inventory or signage existing as of the date hereof if such agreement or modification would reasonably be expected to (i) cause a breach under any agreement that includes Team Sponsorship Assets, (ii) eliminate, or substantially impair (i.e. effectively eliminate all or most of the value of) any physical Team Sponsorship Assets inventory in the Arena or (iii) limit or restrict the Knicks' ability to include Team Sponsorship Assets in any exclusive or non-exclusive

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advertising or sponsorship agreements, in each case under clauses (i), (ii) or (iii), unless Licensor provides to the Knicks a replacement asset of equal or greater value (A) reasonably acceptable to the Knicks and (B) if such replacement is not permitted under such agreement, acceptable to the sponsor party to such agreement. The Knicks shall not enter into any agreement (and has not as of the Effective Date) that contains Arena Game Shared Sponsorship Assets or would cause a breach under any agreement that includes Arena Game Shared Sponsorship Assets without Licensor's prior written approval. The Knicks shall be entitled to 25% of net revenue from the sale of Arena Game Shared Sponsorship Assets (the "**Knicks Arena Game Shared Sponsorships Share**"), i.e., gross revenue therefrom less any of the following paid by Licensor: taxes and applicable fees; and actual out-of-pocket costs for signage fabrication, installation and removal costs; provided that, if (a) an Arena Game Shared Sponsorship Asset is not visible, audible or otherwise present during substantially all Other Arena Events, (b) an Arena Game Shared Sponsorship Asset is not visible, audible or otherwise present for a similar length of time during Other Arena Events and Knicks Events, or (c) such Arena Game Shared Sponsorship Assets does not include substantially all Knicks Events, then, in each instance, the revenues shall be proportionally allocated to each event included in such agreement, in a reasonable manner and as mutually agreed by Licensor and the Knicks, and the Knicks shall receive the appropriate proportional amount of revenues attributable to the Knicks Events (e.g., treatment of the JP Morgan Club, as currently operated). In the event of a No Fault Occurrence, the Knicks Arena Game Shared Sponsorships Share shall be increased to 33% (and in the case of any proportional allocation of revenues pursuant to the proviso in the foregoing sentence, the Parties will agree on an appropriate increase in favor of the Knicks to such allocation).

**Section 7.04 <u>Non-Team Sponsorship Assets</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Knicks shall have no rights whatsoever with respect to Non-Team Sponsorship Assets.

**Section 7.05 <u>Arena Naming Rights</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Knicks shall be entitled to 20% of revenue from the sale of any Arena Naming Rights, excluding any amounts already allocable to the Knicks pursuant to the terms of this Agreement or otherwise.

**Section 7.06 <u>Other Revenue</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Parties shall discuss in good faith the allocation of other Advertising income, revenues and fees derived from operations at the Arena that are not otherwise provided herein, to the extent attributable to Knicks Events.

**Section 7.07 <u>Signage and Sponsorship Settlement Process</u>** 

Licensor shall remit to the Knicks a cash payment equal to all amounts collected or received from the sale of Arena Game Shared Sponsorship Assets and Arena Naming Rights that the Knicks are entitled to under this ARTICLE VII in accordance with <u>Section</u> <u>9.06</u>.

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**ARTICLE VIII** 

**BROADCASTING** 

**Section 8.01 <u>Broadcast Rights</u> <u>and Facilities</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As between the Parties, the Knicks shall own and control all rights with respect to the broadcasts and telecasts of each Knicks Event by any means whatsoever (including, without limitation, radio; over the air, pay-per-view, and basic and pay cable television; and streaming and other forms of electronic and digital media now known or hereafter created) (the "**Broadcast Rights**") and shall retain all revenues in connection with such Broadcast Rights. Subject to League Rules, the Knicks may not authorize or purport to authorize their media rightsholder to include in telecasts or broadcasts of Home Games any "virtual signage" in the Restricted Signage Areas without the prior written consent of Licensor, which consent shall not be unreasonably withheld, conditioned or delayed. For the avoidance of doubt, the foregoing sentence shall not apply to any League telecasts or broadcasts (including, without limitation, any national and international telecasts or broadcasts) or any visiting team telecasts or broadcasts, with respect to which the Knicks and Licensor each reserve all rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Licensor shall ensure that the press areas, broadcast areas, playing surfaces, Team Areas and Common Areas continue to be wired or otherwise equipped throughout the Term for the production of such broadcasts and telecasts in accordance with League Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Licensor shall cooperate with the Knicks and provide access for the producers of such broadcasts and telecasts to such truck loading docks, camera positions, and other Arena facilities reasonably required for the production of such broadcasts and telecasts in accordance with League Rules, at the Knicks' or its broadcaster's expense. Subject to League Rules, Licensor shall cooperate with and provide access for broadcast and telecast producers acting on behalf of all other duly authorized parties (e.g., opposing teams and the NBA) at such games.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding the foregoing, Licensor retains the right to assign and reassign facilities, locations and spaces for the conduct of broadcasting in a manner consistent with League Rules; provided that Licensor will consult with the Knicks prior to any proposed changes to the locations and spaces for the conduct of broadcasting during Home Games. For example, and without limiting the previous sentence, Licensor is not obligated to continue to provide the courtside studio, or the studio facilities on the bridge level, in their current locations.

**Section 8.02 <u>Broadcast Renovations</u>**. At the Knicks' written request, Licensor shall make such alterations to the Arena's broadcast facilities and equipment as are reasonably necessary to comply with League Rules, and any broadcast agreements between the Knicks and/or the League and a broadcaster, provided that the Knicks shall be responsible for any upfront and continuing costs related to such alterations.

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**ARTICLE IX** 

**LICENSOR SERVICES** 

**Section 9.01 <u>General Services</u>**. During the Term, Licensor, at its sole cost and expense (except as otherwise expressly provided herein), shall provide the following services, to and for the benefit of the Knicks (and the Arena generally), each in accordance with the Standard ("**General Services**"), provided that the Parties shall regularly coordinate and discuss with one another the appropriate levels and quality of staffing, equipment and service and accommodate the other's reasonable requests for adjustment thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Heating, ventilation, and air-conditioning.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to unavailability due to causes beyond Licensor's reasonable control, utilities, including electricity, gas, steam, chilled water, hot and cold water, lighting, sewer, Wi-Fi (or comparable data delivery pipeline or service) service accessible to Knicks employees and patrons during Knicks Events, telephone and intercommunications equipment, elevators, and escalators.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Lighting equipment and apparatus, including as may be required by League Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Maintenance and repair of the Arena and all of its components in compliance with all applicable governmental laws, ordinances, and regulations and in clean and good condition, subject to ordinary wear and tear, subject to the Knicks' obligation to pay for maintenance and repairs necessitated by Knicks Misuse.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Twenty-four (24) hour per day, year-round protection and security of the Arena and all its facilities (including Team Areas), and all property of the Knicks and Knicks personnel located in the Arena.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Reasonable grounds maintenance and snow and ice removal, including, but not limited to, keeping sidewalks and other areas immediately surrounding the Arena in compliance with all applicable governmental laws, ordinances, and regulations and reasonably free of snow, ice, debris, dirt, litter, and trash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Box office services in accordance with <u>Section</u> <u>5.05(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Repair and maintenance, in each case, in accordance with League Rules, of the playing surfaces and related equipment (including the court, baskets and basket stanchions), and all back-up equipment and to the Knicks' reasonable satisfaction in accordance with League Rules, all such costs to be borne or reimbursed by the Knicks, except to the extent repair or replacement is necessitated by the negligence of Licensor or its agents or other parties permitted by Licensor to use the foregoing (e.g., college teams using basketball court), or required by League Rules.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All other services and functions needed to operate, repair and maintain the Arena in accordance with the Standard, including pest control and obtaining and maintaining all necessary licenses and permits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Without limiting any of the foregoing, Licensor shall operate, maintain and improve the Arena in accordance with the Standard at all times throughout the Term.

**Section 9.02 <u>Game Day Services</u>**. In addition to the General Services provided pursuant to <u>Section</u> <u>9.01</u>, Licensor shall provide to and for the benefit of the Knicks, the following day-of-game services on the dates of all Knicks Events, each in accordance with the Standard ("**Game Day Services**"), for which the Knicks shall reimburse Licensor's actual out-of-pocket operating cost (except as otherwise provided in this Agreement (e.g., operation of Suites, Advertising, Concessions and General Services)) without markup or overhead, as the same may be adjusted pursuant to <u>Section</u> <u>9.04</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Set-up of playing surfaces for the Knicks' use on Home Dates (and for Other Knicks Events), by or before the time required in <u>Section</u> <u>4.02(a)</u>, in accordance with League Rules, and subject to the Knicks' reasonable satisfaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Operating in house broadcast production facilities in the Arena in accordance with Article VIII (currently known as "GardenVision") at a level consistent with past practice, it being understood that the Knicks maintain exclusive rights and remain responsible for providing the direction and production of all game presentation elements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Operating the Arena during and cleaning up the Arena after, Home Games and Other Knicks Events, including the following event-specific personnel and their successors in name or function: security personnel, building security personnel, street patrol personnel (including supervisors), paid NYPD detail, anti-bomb canines and handlers, ushers, ticket takers, concourse "Directors," elevator operators, restroom attendants, event office administrators, guest experience representatives, guest service supervisors, security supervisors, concourse supervisors, concourse managers, laborers/utility workers, carpenters, electricians, custodial porters, telecommunications technicians, spotlight operators and stagehands (as required based on the production elements for such Home Game or Other Knicks Event), and other necessary labor and third-party services, including overnight labor and supervisors, medical and emergency services staff or contractors and rubbish removal, all in a manner consistent with past practice, but not including game officials, referees, or timekeepers. The Knicks shall only be responsible for the costs relating to the foregoing personnel to the extent allocable to Home Games or Other Knicks Events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If requested by the Knicks, Game Day box office personnel incremental to the staffing provided as General Services pursuant to <u>Section</u> <u>9.01(g)</u> in a manner consistent with past practice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any additional services reasonably requested by the Knicks in writing and approved by Licensor, which approval shall not be unreasonably withheld, conditioned or delayed.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) With respect to all Game Day Services, all costs charged to the Knicks shall be nondiscriminatory and consistent with rates incurred by Licensor for all other events at the Arena.

**Section 9.03 <u>Delta Club and JP Morgan Club</u>**. During Knicks Events, the Knicks shall be permitted to provide certain ticketholders (subject to physical capacity constraints) with access to (a) the club currently known as the Delta Sky 360 Club and (b) the club currently known as the JP Morgan Club (collectively, the "**VIP Clubs**"). Ticketholders who have access to the VIP Clubs shall be entitled to a certain amount of complimentary food and beverage. The Knicks shall have the sole discretion in determining the price charged to ticketholders for access to, as well as the menu offered in, the VIP Clubs, and shall retain all revenues therefrom. Licensor shall operate the VIP Clubs in accordance with the Standard (the "**VIP Club Services**"), for which the Knicks shall reimburse Licensor's actual cost, without markup or overhead, attributable to such Knicks Events.

**Section 9.04 <u>Staffing Levels for Certain Services</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Schedule 9.04 sets forth the staffing levels for Game Day Services, VIP Club Services and Suite 200 for Home Games as of the 2019-20 Season. Licensor shall maintain substantially similar levels of staffing for all Home Games, provided that the Parties shall regularly coordinate and discuss with one another the appropriate levels of staffing and accommodate the other's reasonable requests for adjustment thereto. Licensor shall be responsible for retaining, managing and supervising all personnel in Licensor's provision of the General Services, Game Day Services VIP Club Services and Suite 200. Licensor shall use reasonable efforts to accommodate the Knicks reasonable requests with respect to the provision of all Game Day Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Licensor shall not do or fail to do anything that will result in or will cause the Arena not being reasonably fit or otherwise available for use for Home Games in accordance with the League Rules as and when required to enable the Knicks to comply with its obligations under this Agreement.

**Section 9.05 <u>Budgeting and Estimates</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Following reasonable consultation with the Knicks, Licensor shall provide the Knicks with reasonably detailed annual estimates of revenues and expenses by month and Home Game (the "**Annual Budget**") related to Game Day Services, VIP Club Services, Suite 200 and any other revenues to be recouped and expenses to be paid by the Knicks under this Agreement (such costs and expenses, collectively, the "**Knicks Costs**"). The Annual Budget shall be provided at such times as may be reasonably required by the Knicks in accordance with the Knicks' reasonable budgeting and forecasting processes. Upon receipt of the Annual Budget, the Knicks shall have a period of fifteen (15) days to review each estimate and forecast, and identify any objections it has to the Annual Budget. The Knicks and Licensor will then negotiate for a period of fifteen (15) days regarding any disagreements in respect of the Annual Budget. Subject to Section 9.05(b) below, if the Knicks and Licensor are unable to agree with respect to a particular cost within an Annual Budget within such period, the corresponding line item from the most recent approved Annual Budget will control with respect to such line item until such time, if any, that the Knicks and Licensor agree on such proposed line item; provided, that: (1) if such line item in the

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Annual Budget did not appear in the corresponding most recent approved Annual Budget, then Licensor shall not be entitled to payment or reimbursement for expenses in such line item and Licensor shall have no obligation to provide such product or service until the proposed line item is approved by the Knicks (not to be unreasonably withheld, conditioned or delayed); and (2) if such line item appeared in the prior Annual Budget, then Licensor shall be entitled to payment or reimbursement in an amount not to exceed the applicable line item of the prior approved Annual Budget multiplied by 104 %. The Annual Budget for the 2019-20 Contract Year is attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, the Knicks agree that it shall have no approval rights over (i) any collectively bargained labor or employment costs or collectively bargained work rates, (ii) any staff or service that is deemed by Licensor, in its reasonable discretion, as necessary to the safety and/or security of any Knicks Event(s) or (iii) costs of goods for any Product purchased from an unaffiliated third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Knicks Costs shall be consistent with the costs incurred for Other Arena Events, it being understood that costs will differ based on the nature and need of the events and circumstances outside of the reasonable control of Licensor (e.g., Force Majeure). The amount payable by the Knicks to Licensor for Game Day Services and VIP Club Services shall be determined on a monthly basis in accordance with <u>Section</u> <u>9.06</u>. The Knicks' consent shall be required for any deviation from the approved Annual Budget and, without such approval, the Knicks shall not be responsible for any costs or expenses in excess of such line items in the approved Annual Budget.

**Section 9.06 <u>Settlement</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Not later than the fifteenth (15th) day of each calendar month, Licensor shall provide the Knicks a report ("**Monthly Report**") calculating (i) each item of revenue (including any deductions therefrom) that is shared with or allocated or payable to the Knicks in accordance with this Agreement with respect to the immediately preceding calendar month and (ii) each item of cost or expense incurred by Licensor during the immediately preceding calendar month for which Licensor is entitled to payment or reimbursement (in whole or in part) from the Knicks in accordance with this Agreement (clauses (i) and (ii) collectively, the "**Applicable Amounts**"). Each Monthly Report shall include a reasonable amount of detail describing each of the Applicable Amounts and copies of ledgers, invoices or other reasonable evidence of each of the Applicable Amounts. Each Monthly Report delivered by Licensor to the Knicks shall set forth for each Joint Sponsorship Agreement during such Monthly Period, (x) the Revenues under such Joint Sponsorship Agreement allocated to the Knicks, on the one hand, and Licensor, on the other hand and (y) the Team entitlements (including Team Sponsorship Assets, Tickets, ticket banks, etc. provided to such Joint Sponsor) and Arena entitlements (including Non-Team Sponsorship Assets, Arena Game Shared Sponsorship Assets, Suites, etc. provided to such Joint Sponsor) contributed and their respective rate card values or fair market value (as applicable) under such Joint Sponsorship Agreement. Licensor shall pay the Knicks the net amount payable under each Monthly Report on or prior to the fifteenth (15<sup>th</sup>) day of each calendar month (i.e., the date in which the related Monthly Report is required to be provided to the Knicks).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding payment of the net amount under a Monthly Report, the Knicks may reasonably request additional information regarding such Monthly Report and the

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Licensor agrees to provide such additional information. The Knicks may dispute any amount in any Monthly Report, except for the License Fee and the percentage of the Knicks' Tax Share (e.g., 50%). The Parties shall promptly confer to resolve any such areas of disagreement, and each Party shall be entitled to refer any disagreement that cannot be resolved to the Accounting Firm in accordance with <u>Section</u> <u>9.06(c)</u>. Notwithstanding the foregoing, the acceptance of a Monthly Report (or any portion thereof) and the payment of any amounts in accordance therewith shall be without prejudice to the Knicks' rights to subsequently dispute any Applicable Amounts (including pursuant to <u>Section</u> <u>9.06(c)</u> and <u>Section</u> <u>20.17</u>). Licensor shall pay the Knicks any disputed amounts that it is determined to owe in a Monthly Report within five (5) business days after the dispute is resolved by the Parties or by the Accounting Firm in accordance with <u>Section</u> <u>9.06(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding <u>Section</u> <u>20.06</u>, in the event of a dispute between the Parties with respect to the determination of any Applicable Amounts, the Parties shall refer such disputed matters set forth in <u>Sections 9.06(a)</u> and <u>9.06(b)</u> to a mutually agreed upon national independent accounting firm (the "**Accounting Firm**"), and the Parties shall cooperate with the Accounting Firm to enable such Accounting Firm to resolve the dispute as promptly as practicable. The Accounting Firm shall address only those items in dispute and may not assign a value greater than the greatest value for such item claimed by either Party or smaller than the smallest value for such item claimed by either Party. In the absence of manifest error, the resolution of disputed items by the Accounting Firm shall constitute an arbitral award that is final, binding and non-appealable. The costs and expenses of the Accounting Firm incurred pursuant to this <u>Section</u> <u>9.06</u> shall be borne by the Knicks, on the one hand, and the Licensor, on the other hand, in proportion to the allocation by the Accounting Firm of the net dollar amount of disputed matters, such that the prevailing party (or parties) pay a lesser proportion (or none, as applicable) of such costs and expenses. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Licensor will use commercially reasonable efforts to maximize any revenues that are contractually payable to the Knicks hereunder, including using commercially reasonable efforts to collect such revenues. Notwithstanding anything herein to the contrary, if any revenue payable to a Party by an Affiliate of such Party is subject to sharing with the other Party hereunder (including, for example, pursuant to <u>Section</u> <u>5.03(c))</u>, such revenue shall be deemed "collected" by the Party to whom it is payable on the earlier of (i) the date on which such revenue is actually collected and (ii) the date on which such revenue is payable pursuant to the terms of the applicable contract or other arrangement.

**Section 9.07 <u>Provision of Licensor Services</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Licensor shall have the right to delegate, subcontract, or sublicense to a third party, including Licensor's Affiliates, the provision of Licensor Services and no such delegation, subcontract or sublicense shall relieve Licensor of any of its obligations hereunder; provided that, Licensor shall be required to obtain consent of the Knicks (not to be unreasonably withheld, conditioned or delayed) in connection with the delegation, subcontracting, or sublicensing of Licensor Services to any third party service providers that (i) do not or will not provide similar services during Other Arena Events or (ii) will provide, conduct or manage the majority of a particular material Licensor Service. Subject to the preceding sentence, Licensor shall make the final decision regarding the selection of any such third party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Licensor shall make reasonable efforts to minimize interference with the Knicks' use of the Arena, and in no event shall Licensor materially interfere with the Knicks' ability to conduct or broadcast Knicks Events or materially reduce or interfere with the Knicks' permitted use of the Arena or ingress thereto or egress therefrom, subject to Licensor's Arena safety and security protocols in accordance with <u>Section</u> <u>4.06(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For clarity, as between Licensor and the Knicks, the Knicks shall have the right to fully control all Home Game entertainment and basketball operations (including scoreboard and audio operations), with assistance from Licensor's production staff through the applicable General Services and/or Game Day Services.

**ARTICLE X** 

**PROMOTION; TRADEMARKS; DATA OWNERSHIP** 

**Section 10.01 <u>Promotional Outlets</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>In-Game Promotion</u>. The Knicks shall provide in the Knicks' game-night communications outlets (e.g., GardenVision features, announcements, in-crowd and on-court appearances, etc.), reasonable promotion of Other Arena Events, Licensor's and its Affiliates' other events, venues, charities and businesses and overall promotion for Licensor and its Affiliates ("**Licensor Promotion**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Broadcast Promotion</u>. Licensor shall be permitted to use a portion of the in-game commercial spots, in-game announcer drop-ins and "run-of-schedule" commercial spots made available to Team pursuant to its Media Rights Agreement with MSG Networks for purposes of Licensor Promotion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Licensor Promotional Outlets</u>. The Knicks shall have the sole rights and be solely responsible for all publicity, public relations, and promotional campaigns for Knicks Events. Notwithstanding the foregoing, to the extent of available inventory and with no out-of-pocket cost to Licensor, Licensor shall include reasonable promotion of the Team and its Knicks Events on the Arena's marketing and communication outlets, including Licensor's and its Affiliates' websites and applications; in-arena signage; the digital marquee facing Seventh Avenue and other Arena exterior digital and non-digital signage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) At the commencement of the Term, Licensor's use of the Knicks' in-game and broadcast promotional outlets set forth in subparagraphs (a) and (b), and the Knicks' use of the Licensor promotional outlets set forth in subparagraph (c), shall each be generally consistent with the allocations set forth on Schedule 10.01, provided that the Parties shall regularly coordinate and discuss with one another their desired promotional efforts, inventory availability and needs and shall accommodate the other's reasonable requests for adjustment to the number and type of assets (including newly-developed assets) to which the other shall have access, and the manner in which they are used. It is understood and agreed that, to the extent that they remain affiliated entities, the Knicks and the Rangers may share the promotional assets granted to them pursuant to their respective license agreements with Licensor.

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**Section 10.02 <u>Trademark Licenses</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Knicks hereby grant to Licensor for the Term non-exclusive royalty-free licenses by the Knicks and Team of all intellectual property owned or licensed by the Knicks or the Team, including but not limited to images, likenesses, service marks, tradenames and trademarks, for the exclusive purposes of promoting the Arena as the home arena of the Team, operating the Arena and providing the Licensor Services. Licensor's use of such licenses shall be in accordance with and subject to League Rules and subject to the Knicks prior written approval. Licensor shall not have any right to sublicense, or seek or receive any payments from third parties specifically for the use of, the Knicks' intellectual property, except in accordance with ARTICLE VII, it being understood that Licensor may exercise the right to promote the Arena as the home arena of the Team in places and in a manner that may also incorporate in an incidental manner promotion of Licensor's marketing partners and sponsors (including, without limitation, use in connection with the Knicks' intellectual property any overall Arena marketing partner(s) "lock-up logo" or naming rights, sponsored Licensor web pages and upcoming events promotions, etc.).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Knicks shall be permitted to reference the Arena as their home venue on all material promoting the Team and ticket sales (and the Ticket Agent). In connection therewith, Licensor and its Affiliates hereby grant to the Knicks a non-exclusive royalty-free license to use the trademarks "MADISON SQUARE GARDEN," "MSG," "THE WORLD'S MOST FAMOUS ARENA" and related logos solely for such promotional purposes. The Knicks' use of such licenses shall be subject to the Licensor's prior written approval, not to be unreasonably withheld, conditioned or delayed. The Knicks shall not have any right to sublicense, or seek or receive any payments from third parties specifically for the use of, Licensor's intellectual property.

**Section 10.03 <u>Customer Data</u>**. As between the Parties, ownership and access to data relating to customers and prospective customers shall be governed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Team-Owned Data</u>. Data and contact information generated or developed by or on behalf of either Party ("**Customer Data**") collected solely in connection with the sale or marketing of tickets for Home Games and Other Knicks Events and the sale of single-night or multiple-date Suites for Knicks Events only shall, as between the Parties, be owned by the Knicks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Licensor-Owned Data</u>. Customer Data generated, developed or collected solely in connection with Licensor's sale or marketing of (i) non-Team related tickets; (ii) Suites other than Suites for Home Games only; and (iii) memberships to the Madison Club, The Loft and any similar product shall, as between the Parties, be owned by Licensor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Jointly-Owned Data</u>. Customer Data generated, developed or collected in connection with the sale or marketing of any ticket or hospitality product (other than those set forth in subsections (a) and (b) of this <u>Section</u> <u>10.03</u>) that includes admission to Home Games and Other Arena Events shall be owned jointly by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Data Use and Sharing</u>. Each Party shall, to the fullest extent permitted by law, share their owned Customer Data with the other Party for use by the other Party and their affiliates, subject to the prior approval in each case by the Customer Data-owning Party, such approval not to be unreasonably withheld or delayed, provided, that any sale, licensing or disclosure to a third party of Customer Data owned by the other Party is subject to the prior written consent of the Customer Data-owning Party in their sole discretion. Each Party shall use

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commercially reasonable efforts to ensure that all Customer Data is collected in such a manner that it may be shared with the other Party under this <u>Section</u> <u>10.03</u> and applicable law. For purposes of clarity, the Party that is the owner of Customer Data pursuant to this <u>Section</u> <u>10.03</u> or otherwise may use such data for any and all purposes, including the sale, licensing or disclosure of such data to third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Confidentiality and Data Protection</u>. The Parties agree to establish appropriate safeguards to protect the confidentiality of shared Customer Data and to prevent unauthorized use or access. Specifically, each Party shall implement and maintain an information security management policy with standards that are no less rigorous than accepted industry practices, comply with all applicable laws to protect the Customer Data from unauthorized access, destruction, use, modification, or disclosure, as well as comply with the provisions of this Agreement. At a minimum, each Party shall implement physical, technical, and administrative information safeguards that provide for: (a) protection of business facilities, paper files, servers, computing equipment, including all mobile devices and other equipment with information storage capability, and backup systems containing Customer Data; (b) network, application (including databases), and platform security; (c) business systems designed to optimize security; (d) secure, encrypted transmission and secure, encrypted storage of Customer Data; (e) a minimum of two factor authentication and access control mechanisms; and (f) personnel security, including background checks on all such personnel, use of unique, robust passwords, and annual training on how to comply with a Party's physical, technical, and administrative information security safeguards. Each Party shall regularly test and monitor the effectiveness of their security practices and procedures relating to the Customer Data, and will evaluate and adjust their information security program in light of the results of the testing and monitoring, any material changes to their operations or business arrangements, or any other circumstances that a Party knows or reasonably should know may have a material effect on their information security program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Parties shall also share with each other the results of fan and guest surveys, focus groups, etc. to the extent the information relates to guests' experiences in connection with Home Games (including customer service, quality of Concessions, cleanliness, game presentation, arriving and departing, etc.).

**ARTICLE XI** 

**EXCLUSIVITY COVENANT** 

**Section 11.01 <u>Covenant</u>**. Notwithstanding anything to the contrary contained in this Agreement, including <u>Section</u> <u>20.10</u> with respect to League Rules, the Knicks hereby agree that during the Term, the Team shall not play any Home Games in any location other than the Arena, except as provided in ARTICLE XII or <u>Section</u> <u>20.01</u>; provided that if the Property Tax Exemption is no longer in effect, the Knicks may play up to two (2) Home Games each season at other locations outside of the New York metropolitan area in accordance with League Rules. Notwithstanding anything to the contrary contained in this Agreement, the Knicks agree to fully comply with the obligations undertaken by its predecessor Madison Square Garden Center, Inc. under the Property Tax Exemption Agreement as the owner of the Team. Licensor agrees to fully comply and cause full compliance with all other obligations undertaken by its predecessor Madison Square Garden Center, Inc. under the Property Tax Exemption Agreement.

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**ARTICLE XII** 

**CASUALTY AND CONDEMNATION** 

**Section 12.01 <u>Termination or Restoration Due to Condemnation</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that title to all or substantially all of the Arena or the right of Licensor to occupy or possess all or substantially all of the Arena shall be taken by Condemnation (a "**Total Taking**"), Licensor shall provide prompt notice of such Total Taking to the Knicks, and, except in the case of a Temporary Taking, this Agreement shall terminate and be of no further force upon the earlier of (i) the date when the possession of all or such substantial portion of the Arena or right so taken shall be required for such use or purpose or (b) the effective date of the Total Taking.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of a Condemnation other than a Total Taking, this Agreement shall continue in full force and effect; <u>provided</u>, <u>however</u>, that if any such Condemnation results in an Untenantable Condition (including for this purpose a Temporary Taking that results in an Untenantable Condition for a period in excess of (i) 24 months, or (ii) in the case of any such Temporary Taking that occurs during the last five (5) Contract Years of the Term, 12 months) then each Party shall have the right, in its sole discretion, to terminate this Agreement by notice to the other given within 30 days after the date of the Knicks' receipt of the Estimate (as defined in <u>Section</u> <u>12.05(a)</u>) with respect to such Condemnation, without any further liability hereunder, except for any liability hereunder which, by the specific terms of this Agreement survives termination; <u>provided further</u>, <u>however</u>, that neither Party shall have such termination right if (x) the then applicable legal requirements, zoning laws, building regulations and other governmental or quasi-governmental ordinances, rules or regulations (collectively, "**Governmental Rules**") do not prohibit or materially restrict the performance of the Condemnation Restoration Work (as defined in <u>Section</u> <u>12.01(c)</u>), (y) the Estimated Date (as defined in <u>Section</u> <u>12.05(a)</u>) with respect to such Condemnation shall be a date that occurs on or before the date that is (i) 30 months after the date of such Condemnation, or (ii) in the case of any such Condemnation that occurs during the last five (5) Contract Years of the Term, 12 months after the date of such Condemnation and (z) the remaining portions of the Arena can be restored in a manner as shall satisfy the requirements of the definition of Condemnation Restoration Work. Further, and notwithstanding anything to the contrary contained in the foregoing, if the Estimated Restoration Cost with respect to such Condemnation exceeds 30% of the full replacement value of the portions of the Arena that are not subject to such Condemnation, then Licensor shall have the right, in its sole discretion, to terminate this Agreement by notice to the Knicks given within 90 days after the date of the Knicks' receipt of the Estimate with respect to such Condemnation, without any further liability hereunder, except for any liability hereunder which, by the specific terms of this Agreement survives termination. If either Party terminates this Agreement as provided in this Section 12.01(b), then such termination shall be effective on the date specified in such Party's notice of termination, but no earlier than thirty (30) days after the date of such notice and no later than one hundred eighty (180) days after the date of such notice, as if said date were the date fixed for the expiration of the Term

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If neither party has the right to terminate this Agreement, or if neither party shall timely elect to terminate this Agreement, as provided in paragraph (b) above, Licensor shall, at its sole cost and expense, commence as soon as reasonably practicable and with reasonable

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diligence proceed to perform the work (the "**Condemnation Restoration Work**") to and repair and restore the part of the Arena not taken to an architecturally complete unit and, to the extent commercially practicable, to substantially its former condition, as and to the extent necessary to remedy the Untenantable Condition, using materials, equipment and construction techniques which are common at the time of such Condemnation and with such changes as may be required by then applicable Governmental Rules or that Licensor may otherwise deem appropriate in each case, in a manner consistent with and as necessary to maintain the Standard; it being agreed, however, that Licensor shall be required to obtain the prior written consent of the Knicks to any changes that are not required by then applicable Governmental Rules and that could materially adversely impact the Knicks' rights or obligations under this Agreement. Licensor shall (i) keep the Knicks reasonably apprised of the progress and the estimated date of completion of the Condemnation Restoration Work, and (ii) provide such information as may be reasonably requested by the Knicks from time to time with respect to the progress of such Condemnation Restoration Work. Licensor shall use commercially reasonable efforts (which shall not require Licensor to employ overtime labor or otherwise incur overtime charges) to substantially complete such Condemnation Restoration Work as soon as commercially practicable, but in all events, on or before the Condemnation Outside Date (as defined in <u>Section</u> <u>12.01(d)</u>) applicable to such Condemnation (it being agreed that the Knicks' sole remedy on account of Licensor's failure to substantially complete such Condemnation Restoration Work shall be the rights of the Knicks to terminate this Agreement as provided in paragraphs 12.01(d) and 12.05(b)(iv) below). The Condemnation Restoration Work shall not include the repair and restoration of any of the trade fixtures, personal property or equipment of the Knicks (all of which the Knicks shall repair and restore at its sole cost and expense).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary contained herein, the Knicks shall have the right to terminate this Agreement (without any further liability hereunder, except for any liability hereunder which, by the specific terms of this Agreement survives termination) if the Condemnation Restoration Work required as a result of such Condemnation is not substantially completed by the Condemnation Outside Date applicable to such Condemnation (as such Condemnation Outside Date is postponed pursuant to the below provisions of this Section 12.01(d)), which right may be exercised by the Knicks upon written notice to Licensor given within thirty (30) days after such applicable Condemnation Outside Date but before the substantial completion of the Condemnation Restoration Work; <u>provided</u>, <u>however</u>, that if a Final Revised Estimated Date for such Condemnation shall have been determined pursuant to Section 12.05(b) below, then the Knicks shall have the right to terminate this Agreement pursuant to this Section 12.01(d) (without any further liability hereunder, except for any liability hereunder which, by the specific terms of this Agreement survives termination) only if the Condemnation Restoration Work is not substantially completed by the later to occur of the Condemnation Outside Date applicable to such Condemnation (as such Condemnation Outside Date is postponed pursuant to the below provisions of this Section 12.01(d)) and such Final Revised Estimated Date, which right may be exercised by the Knicks upon written notice to Licensor given within thirty (30) days after the later to occur of such Condemnation Outside Date and such Final Revised Estimated Date, but before the substantial completion of the Condemnation Restoration Work. If Licensor has not completed the Condemnation Restoration Work prior to the date that is 30 days after the giving of such notice by the Knicks (which date shall be postponed by one day for each day that Licensor is actually delayed in substantially completing the Condemnation Restoration Work by (i) any acts or omissions of the Knicks, the League or their respective agents, employees or contractors or (ii)

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any one or more events of Force Majeure (provided that the maximum period such date shall be postponed due to events of Force Majeure is an additional 90 days)), then this Agreement shall be terminated automatically effective as of such date, without any further liability hereunder, except for any liability hereunder which, by the specific terms of this Agreement survives termination. For all purposes hereof, the "**Condemnation Outside Date**" applicable to any Condemnation shall be determined as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) If the Estimate with respect to the Condemnation Restoration Work required as a result of such Condemnation provides for an Estimated Date that will occur on or prior to the 180<sup>th</sup> day after the date of such Condemnation, then the "*Condemnation Outside Date*" applicable to such Condemnation shall be the date that is 90 days following such Estimated Date; <u>provided</u>, <u>however</u>, that such date shall be postponed by one day for each day that Licensor is actually delayed in substantially completing the Condemnation Restoration Work by (i) any acts or omissions of the Knicks, the League or their respective agents, employees or contractors or (ii) any one or more events of Force Majeure (provided that the maximum period such Condemnation Outside Date shall be postponed due to events of Force Majeure is an additional 90 days).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) If the Estimate with respect to the Condemnation Restoration Work required as a result of such Condemnation provides for an Estimated Date that will occur during the period commencing on the 181<sup>st</sup> day after the date of such Condemnation and ending on the 365<sup>th</sup> day after the date of such Condemnation, then the "*Condemnation Outside Date*" applicable to such Condemnation shall be the date that is 90 days following such Estimated Date; <u>provided</u>, <u>however</u>, that such date shall be postponed by one day for each day that Licensor is actually delayed in substantially completing the Condemnation Restoration Work by (i) any acts or omissions of the Knicks, the League or their respective agents, employees or contractors or (ii) any one or more events of Force Majeure (provided that the maximum period such Condemnation Outside Date shall be postponed due to events of Force Majeure is an additional 180 days).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) If the Estimate with respect to the Condemnation Restoration Work required as a result of such Condemnation provides for an Estimated Date that will occur during the period commencing on the 366<sup>th</sup> day after the date of such Condemnation and ending on the 540<sup>th</sup> day after the date of such Condemnation, then the "*Condemnation Outside Date*" applicable to such Condemnation shall be the date that is 90 days following such Estimated Date; <u>provided</u>, <u>however</u>, that such date shall be postponed by one day for each day that Licensor is actually delayed in substantially completing the Condemnation Restoration Work by (i) any acts or omissions of the Knicks, the League or their respective agents, employees or contractors or (ii) any one or more events of Force Majeure (provided that the maximum period such Condemnation Outside Date shall be postponed due to events of Force Majeure is an additional 240 days).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) If the Estimate with respect to the Condemnation Restoration Work required as a result of such Condemnation provides for an Estimated Date that will occur on or after the 541<sup>st</sup> day following the date of such Condemnation, then the "*Condemnation Outside Date*" applicable to such Condemnation shall be the date that is 90 days following such Estimated Date; <u>provided</u>, <u>however</u>, that such date shall be

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postponed by one day for each day that Licensor is actually delayed in substantially completing the Condemnation Restoration Work by (i) any acts or omissions of the Knicks, the League or their respective agents, employees or contractors or (ii) any one or more events of Force Majeure (provided that the maximum period such Condemnation Outside Date shall be postponed due to events of Force Majeure is an additional 365 days).

**Section 12.02 <u>Termination or Restoration Due to Casualty</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If all or any material portion of the Arena is damaged or destroyed by Casualty such that an Untenantable Condition exists (each, a "**<u>Total Casualty</u>**"), and the Estimate with respect to such Casualty delivered pursuant to <u>Section</u> <u>12.05</u> below indicates that the Casualty Restoration Work (defined below) would not reasonably be expected to be substantially completed (i) within 24 months after the occurrence of such Casualty, or (ii) in the case of any Casualty that occurs during the last five (5) Contract Years of the Term, within 12 months after the occurrence of such Casualty, then the Knicks shall have the right to terminate this Agreement without any further liability hereunder, except for any liability hereunder which, by the specific terms of this Agreement survives termination. If the Knicks wish to exercise such right of termination, it shall do so by notice to Licensor given not later than the date that is thirty (30) days after the date of the Estimate with respect to such Casualty under <u>Section</u> <u>12.05</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event there shall occur a Total Casualty and (i) Licensor is prohibited or materially restricted by then applicable Governmental Rules from performing the Casualty Restoration Work, or (ii) the Estimate with respect to such Casualty indicates that the Casualty Restoration Work would not reasonably be expected to be substantially completed (x) within 24 months after the occurrence of such Casualty, or (y) in the case of any Casualty that occurs during the last five (5) Contract Years of the Term, within 12 months after the occurrence of such Casualty, or (iii) the Estimated Restoration Cost with respect to such Casualty exceeds 30% of the full replacement value of the Arena immediately prior to such Casualty, then, and in any of such events, Licensor shall have the right, in its sole discretion, to terminate this Agreement without any further liability hereunder, except for any liability hereunder which, by the specific terms of this Agreement survives termination. If Licensor wishes to exercise such right of termination, it shall do so by notice to the Knicks given not later than the date that is thirty (30) days after the date of the Estimate with respect to such Casualty under <u>Section</u> <u>12.05</u>. If either Party terminates this Agreement as provided in this Section 12.02(b) or in Section 12.02(a) above, then such termination shall be effective on the date specified in such Party's notice of termination, but no earlier than thirty (30) days after the date of such notice and no later than one hundred eighty (180) days after the date of such notice, as if said date were the date fixed for the expiration of the Term

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event of a Casualty with respect to which neither party has the right to terminate this Agreement, or neither party timely elects to terminate this Agreement, pursuant to paragraphs (a) or (b) above, Licensor shall, at its sole cost and expense, commence as soon as reasonably practicable and with reasonable diligence proceed to perform the work (the "**Casualty Restoration Work**") to repair and restore the Arena to substantially its former condition, as and to the extent necessary to remedy the Untenantable Condition, using materials, equipment and construction techniques which are common at the time of such Casualty and with such changes as may be required by then applicable Governmental Rules or that Licensor may deem appropriate, in each case, in a manner consistent with and as necessary to maintain the Standard; it being agreed,

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however, that Licensor shall be required to obtain the prior written consent of the Knicks to any changes that are not required by then applicable Governmental Rules and that could materially adversely impact the Knicks' rights or obligations under this Agreement. Licensor shall (i) keep the Knicks reasonably apprised of the progress and the estimated date of completion of the Casualty Restoration Work, and (ii) provide such information as may be reasonably requested by the Knicks from time to time with respect to the progress of the Casualty Restoration Work. Licensor shall use commercially reasonable efforts (which shall not require Licensor to employ overtime labor or otherwise incur overtime charges) to substantially complete such Casualty Restoration Work as soon as commercially practicable, but in all events, on or before the Casualty Outside Date (as defined in <u>Section</u> <u>12.02(d)</u>) applicable to such Casualty (it being agreed that the Knicks' sole remedy on account of Licensor's failure to substantially complete such Casualty Restoration Work shall be the rights of the Knicks to terminate this Agreement as provided in Section 12.02(d) and 12.05(b)(iv) below). The Casualty Restoration Work shall not include the repair and restoration of any of the trade fixtures, personal property or equipment of the Knicks (all of which the Knicks shall repair and restore at its sole cost and expense).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary contained herein, the Knicks shall have the right to terminate this Agreement (without any further liability hereunder, except for any liability hereunder which, by the specific terms of this Agreement survives termination) if the Casualty Restoration Work required as a result of such Casualty shall not be substantially completed by the Casualty Outside Date applicable to such Casualty (as such Casualty Outside Date is postponed pursuant to the below provisions of this Section 12.02(d)), which right may be exercised by the Knicks upon written notice to Licensor given within thirty (30) days after such applicable Casualty Outside Date but before the substantial completion of the Casualty Restoration Work; <u>provided</u>, <u>however</u>, that if a Final Revised Estimated Date for such Casualty shall have been determined pursuant to Section 12.05(b) below, then the Knicks shall have the right to terminate this Agreement pursuant to this Section 12.02(d) (without any further liability hereunder, except for any liability hereunder which, by the specific terms of this Agreement survives termination) only if the Casualty Restoration Work is not substantially completed by the later to occur of the Casualty Outside Date applicable to such Casualty (as such Casualty Outside Date is postponed pursuant to the below provisions of this Section 12.02(d)) and such Final Revised Estimated Date for such Casualty, which right may be exercised by the Knicks upon written notice to Licensor given within thirty (30) days after the later to occur of such Casualty Outside Date and such Final Revised Estimated Date but before the substantial completion of the Casualty Restoration Work. If Licensor has not completed the Casualty Restoration Work prior to the date that is 30 days after the giving of such notice by the Knicks (which date shall be postponed by one day for each day that Licensor is actually delayed in substantially completing the Casualty Restoration Work by (i) any acts or omissions of the Knicks, the League or their respective agents, employees or contractors or (ii) any one or more events of Force Majeure (provided that the maximum period such date shall be postponed due to events of Force Majeure is an additional 90 days)), then this Agreement shall be terminated automatically effective as of such date, without any further liability hereunder, except for any liability hereunder which, by the specific terms of this Agreement survives termination. For all purposes hereof, the "**Casualty Outside Date**" applicable to any Casualty shall be determined as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) If the Estimate with respect to the Casualty Restoration Work required as a result of such Casualty provides for an Estimated Date that will

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occur on or prior to the 180<sup>th</sup> day after the date of such Casualty, then the "*Casualty Outside Date*" applicable to such Casualty shall be the date that is 90 days following such Estimated Date; <u>provided</u>, <u>however</u>, that such date shall be postponed by one day for each day that Licensor is actually delayed in substantially completing the Casualty Restoration Work by (i) any acts or omissions of the Knicks, the League or their respective agents, employees or contractors or (ii) any one or more events of Force Majeure (provided that the maximum period such Casualty Outside Date shall be postponed due to events of Force Majeure is an additional 90 days).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) If the Estimate with respect to the Casualty Restoration Work required as a result of such Casualty provides for an Estimated Date that will occur during the period commencing on the 181<sup>st</sup> day after the date of such Casualty and ending on the 365<sup>th</sup> day after the date of such Casualty, then the "*Casualty Outside Date*" applicable to such Casualty shall be the date that is 90 days following such Estimated Date; <u>provided</u>, <u>however</u>, that such date shall be postponed by one day for each day that Licensor is actually delayed in substantially completing the Casualty Restoration Work by (i) any acts or omissions of the Knicks, the League or their respective agents, employees or contractors or (ii) any one or more events of Force Majeure (provided that the maximum period such Casualty Outside Date shall be postponed due to events of Force Majeure is an additional 180 days).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) If the Estimate with respect to the Casualty Restoration Work required as a result of such Casualty provides for an Estimated Date that will occur during the period commencing on the 366<sup>th</sup> day after the date of such Casualty and ending on the 540<sup>th</sup> day after the date of such Casualty, then the "*Casualty Outside Date*" applicable to such Casualty shall be the date that is 90 days following such Estimated Date; <u>provided</u>, <u>however</u>, that such date shall be postponed by one day for each day that Licensor is actually delayed in substantially completing the Casualty Restoration Work by (i) any acts or omissions of the Knicks, the League or their respective agents, employees or contractors or (ii) any one or more events of Force Majeure (provided that the maximum period such Casualty Outside Date shall be postponed due to events of Force Majeure is an additional 240 days).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) If the Estimate with respect to the Casualty Restoration Work required as a result of such Casualty provides for an Estimated Date that will occur on or after the 541<sup>st</sup> day following the date of such Casualty, then the "*Casualty Outside Date*" applicable to such Casualty shall be the date that is 90 days following such Estimated Date; <u>provided</u>, <u>however</u>, that such date shall be postponed by one day for each day that Licensor is actually delayed in substantially completing the Casualty Restoration Work by (i) any acts or omissions of the Knicks, the League or their respective agents, employees or contractors or (ii) any one or more events of Force Majeure (provided that the maximum period such Casualty Outside Date shall be postponed due to events of Force Majeure is an additional 365 days).

**Section 12.03 <u>Condemnation Proceeding and Awards</u>**. Upon commencement of any Condemnation action or proceeding, Licensor and the Knicks shall cooperate with each other, and

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provide each other with such information and assistance, as each shall reasonably request in connection therewith. Licensor and the Knicks each shall have the right, at its own expense, to appear and to participate in any and all hearings, trials and appeals relating thereto even if this Agreement has been terminated. Subject to the other provisions of this <u>Section</u> <u>12.03</u>, in any Condemnation (x) the Knicks shall have the right to assert a claim against the condemning authority for, and receive from the condemning authority, all Condemnation Awards for, (i) any damage to the Knicks' business or any loss in value of any of the rights granted to the Knicks under this Agreement (if applicable, as if this Agreement had not been terminated), (ii) the value of any of the Knicks' personal property (tangible or intangible) taken or damaged as result of the Condemnation, (iii) any relocation costs of the Knicks' business, and (iv) any other damages to which the Knicks may be entitled under any applicable law, ordinance, order or regulation, and (y) Licensor shall have the right to assert a claim against the condemning authority for, and receive from the condemning authority, all Condemnation Awards for, (i) the loss in value of its ownership of and rights in and to the Arena and its other property (tangible and intangible), (ii) any damage to, or relocation costs of, Licensor's business, and (iii) any other damages to which Licensor may be entitled under any applicable law, ordinance, order or regulation. The Parties shall request that all Condemnation Awards be specifically allocated by the applicable condemning authority (it being agreed that Licensor may direct that any such awards allocated to Licensor be paid to any Superior Interest Holder designated by Licensor for such purpose). If any Condemnation Award is not specifically allocated between the Parties by the applicable condemning authority, the Condemnation Award shall be equitably allocated and distributed to Licensor and the Knicks in such manner as the Parties shall mutually agree.

**Section 12.04 <u>Temporary Taking</u>**. If the whole or any part of the Arena or the right of Licensor to occupy or possess the whole or any part of the Arena shall be taken in any Condemnation for a temporary use or occupancy not to exceed an aggregate of 24 months, or in the case of any such Condemnation that occurs during the last five (5) Contract Years of the Term, one (1) year (a "**Temporary Taking**"), the Term shall not be reduced, extended or affected in any way, and neither Licensor nor the Knicks shall be relieved of its obligations under this Agreement, except that (a) the Knicks shall have the right to make a claim against the condemning authority for, and receive from the condemning authority and retain, an award of any damages sustained by the Knicks as a result of such Temporary Taking, and (b) the Knicks' obligation to pay the License Fee shall be abated during periods that the Arena is unavailable to the Knicks for the playing of Home Games in accordance with the terms and conditions of this Agreement.

**Section 12.05 <u>Inability to Timely Restore; Estimate of Time and Cost to Restore</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The determination of the estimated time and costs that are reasonably expected to be necessary to perform and substantially complete any Condemnation Restoration Work or any Casualty Restoration Work shall be made by an independent architect or construction manager that is experienced in arena construction projects, well-regarded in the industry and selected by Licensor and reasonably approved by the Knicks. In the event of any Condemnation or Casualty resulting in an Untenantable Condition, Licensor shall furnish to the Knicks an estimate (the "**Estimate**"), prepared and certified by such independent architect or construction manager (the "**Estimator**") of (i) the estimated date (the "**Estimated Date**") by which the Condemnation Restoration Work or Casualty Restoration Work, as the case may be, will be substantially completed and (ii) the estimated cost (the "**Estimated Restoration Cost**") to perform the

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Condemnation Restoration Work or Casualty Restoration Work, as the case may be. Licensor shall use commercially reasonable efforts to cause such independent architect or construction manager to make its determination as soon as reasonably practicable (and, in the case of a Casualty, no later than sixty (60) days after the date of such Casualty) and will deliver the Estimate to the Knicks promptly upon Licensor's receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) If, during the performance of the Condemnation Restoration Work or the Casualty Restoration Work required as a result of any Condemnation or Casualty, the Knicks reasonably believe that the substantial completion of such Condemnation Restoration Work or such Casualty Restoration Work, as the case may be, will not, absent extraordinary efforts that Licensor does not agree (if not already obligated to take pursuant to this Agreement), be achieved by the applicable Condemnation Outside Date or applicable Casualty Outside Date therefor (as such Condemnation Outside Date or such Casualty Outside Date may have theretofore been postponed pursuant to the provisions of Section 12.01(d) or Section 12.02(d) above, respectively), then the Knicks, by notice given to Licensor and the Estimator, shall have the right (not to be exercised more than once in any six (6) month period) with respect to such Condemnation or such Casualty to request that the Estimator determine the estimated date (the "**Revised Estimated Date**") by which such Condemnation Restoration Work or such Casualty Restoration Work, as the case may be, is then reasonably expected to be substantially completed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Knicks give such notice pursuant to Section 12.05(b)(i) above, then Licensor, within ten (10) business days after its receipt of such notice, shall have the right to submit to the Knicks and to the Estimator a notice that (x) sets forth any information that Licensor reasonably believes is relevant to the determination of the Revised Estimated Date and/or (y) indicates the measures that Licensor intends and agrees to implement in an effort to cause the substantial completion of such Condemnation Restoration Work or such Casualty Restoration Work, as the case may be, to be achieved by the applicable Condemnation Outside Date or the applicable Casualty Outside Date (as such Condemnation Outside Date or such Casualty Outside Date may have theretofore been postponed pursuant to the provisions of Section 12.01(d) or Section 12.02(d) above, respectively). Within ten (10) business days after the Knicks' receipt of Licensor's notice (or, if Licensor does not give such notice, within twenty (20) business days after Licensor's receipt of the Knicks notice given pursuant to Section 12.05(b)(i) above), the Knicks shall have the right to submit to Licensor and the Estimator a notice that sets forth any information that the Knicks reasonably believes is relevant to the determination of the Revised Estimated Date. In determining the Revised Estimated Date, the Estimator shall take into consideration all information and measures set forth in any notices provided by the Parties pursuant to the two immediately preceding sentences, as well as all other relevant factors. Licensor shall use commercially reasonable efforts to cause the Estimator to make its determination of the Revised Estimated Date as soon as reasonably practicable after receipt of the Knicks' notice given pursuant to Section 12.05(b)(i) above and the notices which each Party is entitled to deliver pursuant to this Section 12.05(b)(ii), and Licensor shall deliver such determination of the Revised Estimated Date to the Knicks promptly upon Licensor's receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Each Party shall have the option (the "**Review Option**"), exercised by notice given to the other within ten (10) business days after Licensor delivers to the Knicks the Estimator's determination of the Revised Estimated Date, to require that the Estimator's determination of the Revised Estimated Date be reviewed by another independent architect or

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construction manager that is experienced in arena construction projects, well-regarded in the industry and mutually selected by the Parties (the "**Second Estimator**"). If the Parties are unable to mutually select the Second Estimator within ten (10) business days after the giving of a notice exercising the Review Option, then either Licensor or the Knicks, by giving ten (10) days' notice to the other, shall have the right to request that the presiding judge of the lowest level court of general jurisdiction for the district in which the Arena is located select the Second Estimator. Licensor shall use commercially reasonable efforts to cause the Second Estimator, as soon as reasonably practicable after the selection thereof, to (x) review the Estimator's determination of the Revised Estimated Date, (y) make its own determination of the Revised Estimated Date (which determination shall be made in accordance with the provisions of Section 12.05 (b)(ii) above) and (z) deliver to Licensor written notice indicating whether the Second Estimator agrees with the determination of the Estimator and, if not, setting forth the Second Estimator's determination of the Revised Estimated Date. For all purposes of this Agreement, the "**Final Revised Estimated Date**" shall mean either (a) the Revised Estimated Date determined by the Estimator, if neither Party timely exercises the Review Option or if a Party exercises the Review Option and the Second Estimator agrees with the Estimator's determination of the Revised Estimated Date; or (b) the Revised Estimated Date determined by the Second Estimator, if a Party exercises the Review Option and the Second Estimator disagrees with the Estimator's determination of the Revised Estimated Date and therefore issues its own determination of the Revised Estimated Date. Licensor shall deliver the Second Estimator's written notice to the Knicks promptly upon Licensor's receipt thereof. The fees and expenses of the Estimator and the Second Estimator for the exercise set forth in this Section 12.05(b)(iii) and in Section 12.05(b)(ii) above shall be borne equally by Licensor and the Knicks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If the Final Revised Estimated Date with respect to any Condemnation or Casualty is later than the date that is 365 days after the applicable Condemnation Outside Date or applicable Casualty Outside Date therefor (each of which, for purposes of this paragraph (iv), shall be deemed to be such applicable Condemnation Outside Date or such applicable Casualty Outside as postponed by the maximum number of days by which same may be postponed due to events of Force Majeure pursuant to Section 12.01(d) or Section 12.02(d) above, respectively), then the Knicks shall have the right to terminate this Agreement without any further liability hereunder, except for any liability hereunder which, by the specific terms of this Agreement survives termination. If the Knicks wish to exercise such right of termination, then it shall do so by notice to Licensor given not later than the date that is sixty (60) days after the date on which the Final Revised Estimated Date is determined (it being agreed that the Final Revised Estimated Date shall be deemed determined either as of the date on which the Parties' right to exercise the Review Option shall have lapsed or, if a Party timely exercises the Review Option, as of the date on which the Second Estimator's notice of determination is given to the Knicks). If the Knicks terminate this Agreement as provided in this Section 12.05(b)(iv), then such termination shall be effective on the date specified in the Knick's notice of termination, but no earlier than thirty (30) days after the date of such notice and no later than one hundred eighty (180) days after the date of such notice, as if said date were the date fixed for the expiration of the Term.

**Section 12.06 <u>Replacement Arena; Rent Abatement</u>**. In the event of the occurrence of a Condemnation or Casualty that results in an Untenantable Condition but does not result in termination of this Agreement, the Knicks, during the continuance of such Untenantable Condition, shall have the right to use an alternate site for Knicks Events while the Arena is being

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restored, provided such use fully complies with the requirements of Paragraph 6 of the Property Tax Exemption Agreement, and the Knicks' obligation to pay the License Fee shall be abated during such periods in accordance with Section 20.01.

**Section 12.07 <u>Intention of the Parties</u>.** The provisions of this Article XII shall be deemed an express agreement governing any case of the Arena or any portion thereof becoming untenantable or unfit for occupancy, and Section 227 of the Real Property Law of the State of New York, providing for such contingency in the absence of an express agreement, and any other legal requirements of like import, now or hereafter in force, shall have no application in such case and are expressly waived by the Parties.<u> </u>

**ARTICLE XIII** 

**INDEMNIFICATION** 

**Section 13.01 <u>General Indemnification</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To the extent permitted by applicable law, and subject to any valid and collectible insurance, Licensor and the Knicks shall indemnify, defend and hold harmless the other and its current and future Affiliates, and each of their respective directors, officers, employees, agents, successors and assigns from and against any and all claims, liability, loss, damages (whether actual, incidental, consequential, punitive or otherwise), judgments, settlement expenses, cost and expenses whatsoever, including court costs, reasonable attorneys' fees and related disbursements, with regard to any action, cause of action or claim of any nature (each, a "**Loss**"), in any way arising out of or related to (i) the indemnifying Party's acts or omissions in or about the Arena (except to the extent caused by the indemnified Party's negligence or misconduct); (ii) the indemnifying Party's failure to fulfill any duty or obligation hereunder or to comply with applicable law or the obligations applicable to the indemnifying Party in the ADA Consent Decree; or (iii) the indemnifying Party's breach of any representations, warranties or covenants contained in this Agreement. Each Party's indemnity hereunder shall include the acts and omissions of its contractors, licensees, agents and employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting the provisions of Subparagraph 13.01(a), Licensor and the Knicks indemnify the other party for any damage to the property (whether in or about the Arena) of the other party caused by the acts or omissions of the indemnifying party's contractors, licensees, agents, employees and invitees, limited however (for purposes of clarity), in the case of the Knicks, to Knicks Misuse. All repairs to the damaged property of Licensor shall be made by firm(s) designated by Licensor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding the foregoing, for so long as Licensor and the Knicks are under common control, the Parties intend for all Losses to be covered, consistent with past practice and the terms and conditions of the applicable insurance policies, by the NBA's master insurance program for the benefit of teams, whether such Loss was caused by Licensor, the Knicks or any third party (including any ticketholders).

**Section 13.02 <u>Notice of Claims and Rights to Defend and Settle Claims</u>**. The indemnified Party agrees to serve the indemnifying Party with prompt written notice of any claims

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which could give rise to the indemnifying Party's indemnity hereunder, and the indemnifying Party and its insurance carrier(s) shall have the right to defend such claims with counsel of their choosing. The indemnified Party shall not settle any claim without the indemnifying Party's (or its insurer's) prior written consent, not to be unreasonably withheld or delayed.

**ARTICLE XIV** 

**INSURANCE AND SUBROGATION** 

**Section 14.01 <u>Knicks Insurance Coverage</u>**. The Knicks shall, from and after the Commencement Date, maintain at its expense in force the following minimum insurance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Property insurance for the full one hundred percent (100%) of replacement cost of all of the Knicks' equipment, improvements, and betterments owned by the Knicks, literary or musical material, and all other properties and materials owned, rented or brought onto the premises by the Knicks. Coverage shall be on an All Risk of physical loss or damage basis and shall include business interruption coverage in reasonable and customary amounts with customary deductibles and coinsurance against physical loss or damage or destruction from such perils;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Commercial general liability insurance covering against bodily injury and property damage having a limit of not less than $1,000,000 for each occurrence and a limit of not less than $5,000,000 in the aggregate for each occurrence. Coverages shall be in accordance with the ISO form or equivalent, for response to any occurrence in and about the Arena in connection with any Knicks Event and covering the Knicks' contractual liability for indemnification under this Agreement, including but not limited to Section 4.07 and Article XIII herein. Such insurance shall include, but not be limited to, premises operations, products and completed operations, personal injury, advertising injury and independent contractors and containing provisions for separation of insureds or severability of interests. Coverage under the Knicks policy shall be on a primary and non-contributory basis with any insurance available to Licensor for claims arising in connection with Knicks' operations. The Knicks GL Policy shall be in such amount and with such policy limits so that the coverage and limits are adequate to maintain the Knicks Excess/Umbrella Policy without gaps in coverage between the Knicks GL Policy and the Knicks Excess/Umbrella Policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Liquor liability insurance coverage having limits of not less than $1,000,000 for each common cause and in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Automobile liability insurance coverage with a combined single limit of no less than $1,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Employer's liability insurance with the following minimum limits: bodily injury by accident – $1,000,000 each accident; bodily injury by disease – $1,000,000 policy limit and $1,000,000 each employee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Umbrella or excess liability coverage, following the terms, conditions, and extensions of coverages, to apply over and above the primary coverages in subsections (b), (c) and (d) and (e), in an amount not less than $200,000,000 in the aggregate;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Statutory worker's compensation coverage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Employment practices liability insurance with minimum limits of $25,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Broad-form Media liability insurance with limits of no less than $5,000,000 per claim/$5,000,000 aggregate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Disability insurance as required by the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The insurance referred to in this <u>Section</u> <u>14.01</u>, with the exception of property insurance, worker's compensation and employer's liability coverage, shall name Licensor and its Affiliates and mortgagees, and each of their respective directors, officers, employees, agents, successors and assigns, and any other parties designated by Licensor, as additional insureds. Licensor shall also have the right to require the Knicks, from time to time, to increase the scope and limits of any insurance coverage required to be carried herein, so long as such increase is commercially reasonable under the circumstances.

**Section 14.02 <u>Knicks Insurance Requirements</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Knicks shall, at its own expense, obtain and maintain during the Term and for three (3) years thereafter, policies of insurance as required herein written by an insurance carrier(s) reasonably acceptable to Licensor that is/are authorized to do business in the State of New York, rated A VII or better in the most current edition of A.M. Best's Insurance Report (or if such report shall cease to be published, such comparable rating system as reasonably determined by Licensor), and with deductible and self-insurance retention amounts that are not in excess of amounts which are commercially reasonable under the circumstances (except that in the event that any maximum deductible or self-insurance retention amounts are mandated either by law, such mandated maximum amounts shall not be exceeded regardless of whether higher amounts may be commercially reasonable under the circumstances).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of cancellation of any policies, the applicable carrier shall provide at least thirty (30) days advance written notice of same to the additional insureds described in <u>Section</u> <u>14.01</u>. If the policies cannot be amended to provide for such cancellation, the Knicks agree to provide written notice of cancellation as described herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that Licensor is in receipt of such notice of non-payment and/or cancellation, Licensor shall have the right, but not the obligation, to pay for any commercially reasonable costs and expenses which shall be required to maintain or reinstate such insurance, and to charge the Knicks for any and all expenses incurred in connection therewith.

**Section 14.03 <u>Knicks Certificates of Insurance</u>**. The Knicks shall provide Licensor with appropriate evidence of insurance setting forth the required coverages not later than ten (10) days prior to the date on which such coverage is required to be obtained hereunder. For each consecutive year, the Knicks shall provide appropriate evidence of insurance no later than ten (10) days before the policies are required to be renewed. At the request of Licensor, the Knicks shall obtain, release, and forward duplicate original copies of any policy or policies for review by Licensor or its agent to determine if all insurance requirements have been met.

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**Section 14.04 <u>Knicks Waiver of Subrogation</u>**. The Knicks shall require each of their carriers to include a waiver of the insurance carriers' claims and rights of subrogation against Licensor.

**Section 14.05 <u>Licensor Insurance Coverage</u>**. Licensor shall, from and after the Commencement Date, maintain at its expense in force the following minimum insurance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Property insurance for the full one hundred percent (100%) of replacement cost of the Arena, including all improvements, and betterments and personal property owned by Licensor. Coverage shall be on an All Risk of physical loss or damage basis, including losses arising out of a terrorism event, and shall include business interruption and loss of rental income coverages in reasonable and customary amounts with customary deductibles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Commercial general liability insurance covering against bodily injury and property damage having a limit of not less than $1,000,000 for each occurrence and a limit of not less than $5,000,000 in the aggregate for each occurrence. Coverages shall be in accordance with the ISO form or equivalent, for response to any occurrence in and about the Arena.. Such insurance shall include, but not be limited to, premises operations, products and completed operations, personal injury, advertising injury and independent contractors and containing provisions for separation of insureds or severability of interests. For so long as Licensor and the Knicks are under common control, coverage under the Licensor's policy shall be in excess to any insurance required of the Knicks. The Licensor's GL Policy shall be in such amount and with such policy limits so that the coverage and limits are adequate to maintain the Licensor's Excess/Umbrella Policy without gaps in coverage between the Licensor's GL Policy and the Licensor's Excess/Umbrella Policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Umbrella or excess liability coverage, following the terms, conditions, and extensions of coverages, to apply over and above the primary coverages in subsection (b), and the employer's liability coverage in subsection (d), in an amount not less than $200,000,000 in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Employer's liability insurance with the following minimum limits: bodily injury by accident – $1,000,000 each accident; bodily injury by disease – $1,000,000 policy limit and $1,000,000 each employee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Statutory worker's compensation coverage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Disability insurance as required by the State of New York.

**Section 14.06 <u>Licensor Insurance Requirements</u>**. Licensor shall, at its own expense, obtain and maintain during the Term and for three (3) years thereafter, policies of insurance as required herein written by an insurance carrier(s) reasonably acceptable to the Knicks that is authorized to do business in the State of New York, rated A VII or better in the most current edition of A.M. Best's Insurance Report (or if such report shall cease to be published, such comparable rating system as reasonably determined by the Knicks), and with deductible and self-insurance retention amounts that are not in excess of amounts which are commercially reasonable under the circumstances (except that in the event that any maximum deductible or self-insurance retention amounts are mandated either by law, such mandated maximum amounts shall not be exceeded

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regardless of whether higher amounts may be commercially reasonable under the circumstances). The insurance referred to in Section 14.05, with the exception of property insurance, worker's compensation and employer's liability coverage, shall name Knicks and its Affiliates, and each of their respective directors, officers, employees, agents, successors and assigns, and any other parties designated by Knicks, as additional insureds.

**Section 14.07 <u>Licensor Certificates of Insurance</u>.** Licensor shall provide the Knicks with appropriate evidence of insurance setting forth the required coverages not later than ten (10) days prior to the date on which such coverage is required to be obtained hereunder. For each consecutive year, Licensor shall provide appropriate evidence of insurance no later than ten (10) days before the policies are required to be renewed. At the request of the Knicks, Licensor shall obtain, release, and forward duplicate original copies of any policy or policies for review by Licensor or its agent to determine if all insurance requirements have been met.

**Section 14.08 <u>Licensor Waiver of Subrogation</u>.** Licensor shall include in each of its policies, a waiver of the insurance carriers' rights of subrogation against the Knicks.

**ARTICLE XV** 

**WORK STOPPAGE** 

**Section 15.01 <u>Impact on License Fee</u>**. If, during any NBA season, any previously scheduled Home Game is cancelled as a result of a strike, work stoppage, lockout, or other suspension or cancellation of NBA play arising out of a labor dispute involving NBA players or referees, or any other League-related labor or other dispute (each a "**Work Stoppage**"), there shall be no reduction in the License Fee, <u>provided</u>, <u>however</u>, that, upon any such cancellation, Licensor shall use commercially reasonable efforts to hold the Arena out for relicense on such Home Date, and in the event that Licensor relicenses the Arena on such Home Date during the time of the previously scheduled Home Game, Licensor will refund to the Knicks the lesser of (i) fifty percent (50%) of any net contribution attributable to the relicense of the Arena and (ii) the pro rata portion of the annual License Fee attributable to such Home Date (i.e. 1/44<sup>th</sup> of the License Fee if there had been 41 home games and 3 preseason games scheduled) (the "**Work Stoppage Abatement**"). If, during any season in which the Knicks receive a Work Stoppage Abatement, any previously scheduled Home Games are cancelled as a result of a Work Stoppage and subsequently rescheduled, any Work Stoppage Abatement received by the Knicks shall be reduced by an amount equal to the Work Stoppage Abatement, divided by the number of Home Games that were cancelled and multiplied by the number of Home Games that were subsequently rescheduled.

**Section 15.02 <u>Treatment of Refunds or Credits</u>.** Any refunds or credits granted to Licensor's suite or other licensees, sponsors, advertisers or other third parties (including any concessionaire or service provider) that relates to the Work Stoppage shall be determined in Licensor's reasonable discretion, but may not exceed the Team's allocable share of such revenue for a full-season work stoppage (pro rata for a partial-season work stoppage) ("**Maximum Credit or Refund**"**)**. Licensor shall retain 25% of the difference, if any, between the Maximum Credit or Refund and the actual credit or refund attributable to such assets. Any refunds or credits shall be deducted from the Knicks' share of revenue under this Agreement for the applicable Arena assets.

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**Section 15.03 <u>Scheduling</u>.** If a Work Stoppage results in the partial cancellation of a season, the Parties shall mutually agree in good faith on the rescheduling of Home Games.

**ARTICLE XVI** 

**CERTAIN TAXES** 

**Section 16.01 <u>Property Taxes.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Knicks shall be responsible for the payment, without demand, counter-claim or offset, of fifty percent (50%) (the "**Knicks' Tax Share**") of any real property or similar taxes applicable to the Arena ("**Arena Property Tax**"). Licensor may notify any jurisdiction imposing (or proposing to impose) any Arena Property Tax that the Knicks have full responsibility for the payment of 50% of any such Arena Property Tax and, to the extent permitted by applicable law, rule or regulation, Licensor shall arrange for such Arena Property Tax to be billed directly to the Knicks. Licensor shall promptly provide to the Knicks copies of all materials relating to any Arena Property Tax that it receives from any government authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Licensor and the Knicks acknowledge that, as of the Commencement Date, Licensor is exempt, pursuant to the laws of the State of New York and that certain agreement between the Mayor of the City of New York, acting as Chief Executive Officer of, and for, the City of New York, and Licensor's and the Knicks' predecessor-in-interest Madison Square Garden Center, Inc., dated July 15, 1982 (the "**Property Tax Exemption Agreement**"), from paying any Arena Property Tax in connection with the Arena (the "**Property Tax Exemption**"). Licensor and the Knicks shall each use all commercially reasonable efforts to cause the Property Tax Exemption to remain in effect at all times during the term of this Agreement.

**Section 16.02 <u>Commercial Rent Tax</u>**. The Knicks shall be responsible for paying directly, and shall timely pay, to the City of New York the "Commercial Rent Or Occupancy Tax" imposed pursuant to Chapter 7 of Title 11 of the New York City Administrative Code, or successor or similar tax assessed or imposed **on a tenant** as a consequence of the Knicks' status as a licensee under this Agreement**.**

**ARTICLE XVII** 

**KNICKS DEFAULT; LICENSOR'S RIGHTS AND REMEDIES** 

**Section 17.01 <u>Knicks Default</u>**. The occurrence of any one or more of the following events shall constitute a default by the Knicks under this Agreement (each, a "**Knicks Default**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Failure by the Knicks to timely pay any amount owed by the Knicks to Licensor pursuant to this Agreement if such failure shall continue for thirty (30) days after notice thereof is received by the Knicks from Licensor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Failure by the Knicks to maintain the Team's membership in the NBA;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The levy upon or other execution or the attachment by legal process of the interest of the Knicks in the Arena herein, or the filing or creation of a lien in respect of such interest, which levy, attachment or lien shall not be released, discharged or bonded against within sixty (60) days from the date of such filing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The making by the Knicks of an assignment for the benefit of creditors; an adjudication that the Knicks are bankrupt, insolvent or unable to pay its debts as they mature; the filing by or against the Knicks of a petition to have the Knicks adjudged bankrupt, or a petition for reorganization or arrangement under any law relating to bankruptcy unless, in the case of a petition filed against the Knicks, the case is dismissed within sixty (60) days after the filing thereof; the appointment of a trustee or receiver to take possession of substantially all of the Knicks' assets or the Knicks' interests in this Agreement unless the appointment is revoked within sixty (60) days after the appointment thereof; or an attachment, execution or levy against substantially all of the Knicks' interests in this Agreement unless the attachment, execution or levy is revoked within sixty (60) days after the attachment, execution or levy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Breach by the Knicks of ARTICLE XI (an "**Exclusivity Breach**"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Failure by the Knicks to observe or perform in any material respect any covenant, agreement, condition, or provision of this Agreement not otherwise specified in this ARTICLE XVII if such failure shall continue for sixty (60) days after notice thereof from Licensor to the Knicks; provided that the Knicks shall not be in a Knicks Default with respect to matters that cannot reasonably be cured within sixty (60) days so long as within sixty (60) days after such notice the Knicks commence such cure and diligently and continuously proceed to complete the same, but in any event, the Knicks shall not have more than ninety (90) days from its receipt of such notice to cure such failure.

**Section 17.02 <u>Remedies of Licensor</u>**. If a Knicks Default occurs, Licensor shall have the following rights and remedies which shall be distinct, separate, and, to the extent not mutually exclusive, cumulative:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In addition to any other legal or equitable damages as may be available to Licensor and subject to clause (b) below, Licensor may enforce this Agreement by seeking specific performance of any Knicks covenant or agreement contained herein or the enforcement of any other appropriate legal or equitable remedy, including self-help (following notice, expiration of any applicable cure period, and failure to cure) and recoupment from the Knicks of the reasonable cost of curing any default on the Knicks' behalf (and the right to offset such cost from any amounts due from Licensor pursuant to this Agreement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Licensor shall be entitled to all reasonable costs, charges, expenses, and attorneys' fees incurred by the Licensor in connection with a Knicks Default; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything in this Agreement to the contrary, Licensor shall not, under any circumstances, have the right to terminate this Agreement, except as set forth in ARTCLE XII.

**Section 17.03 <u>Remedies of Licensor for</u> <u>an Exclusivity Breach</u>.** The Knicks hereby acknowledge that Licensor and its Affiliates will be irreparably and continually harmed by any

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Exclusivity Breach or the threat thereof and that damages for an Exclusivity Breach cannot be estimated with any degree of certainty and that monetary damages cannot fairly or adequately compensate Licensor for an Exclusivity Breach. The Knicks further acknowledge that Licensor does not have an adequate remedy at law for an Exclusivity Breach. Accordingly, the Knicks hereby acknowledge that, in the event of an Exclusivity Breach, Licensor shall, in addition to any other applicable available rights and remedies, be entitled to seek and obtain, and the Knicks hereby consent to the entry of, a temporary restraining order, together with temporary, preliminary and permanent injunctive or other equitable relief, from any court of competent jurisdiction to enjoin any violation or threatened violation of ARTICLE XI and to compel the Knicks to comply with or restrain or cease from breaching or violating the covenants of ARTICLE XI. The Knicks hereby waive any requirement that Licensor post a bond or other security in connection with injunctive or other equitable relief.

**Section 17.04 <u>League</u><u>'</u><u>s Right to Notice of and Cure Knicks Defaults</u>.** Licensor shall simultaneously serve the League, at the addresses set forth in <u>Section</u> <u>20.04</u>, with copies of all notices of Knicks Defaults served upon the Knicks. Licensor shall accept a cure of a Knicks Default by the League within the applicable cure period.

**ARTICLE XVIII** 

**LICENSOR DEFAULT; KNICKS' RIGHTS AND REMEDIES; RIGHTS IN THE EVENT OF REPEAL OF PROPERTY TAX EXEMPTION** 

**Section 18.01 <u>Licensor Default</u>.** The occurrence of any one or more of the following shall constitute a default by Licensor under this Agreement (each, a "**Licensor Default**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Failure by Licensor to timely pay any amount owed by Licensor to the Knicks pursuant to this Agreement if such failure shall continue for thirty (30) days after notice thereof is received by Licensor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The making by Licensor of an assignment for the benefit of creditors; an adjudication that Licensor is bankrupt, insolvent or unable to pay its debts as they mature; the filing by or against Licensor of a petition to have Licensor adjudged bankrupt, or a petition for reorganization or arrangement under any law relating to bankruptcy unless, in the case of a petition filed against the Licensor, the case is dismissed within sixty (60) days after the filing thereof; the appointment of a trustee or receiver to take possession of substantially all of Licensor's assets or Licensor's interests in this Agreement; or an attachment, execution or levy against substantially all of Licensor's interests in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Failure by Licensor to provide the Knicks with any of the Knicks' rights hereunder that interferes with the playing of Home Games in the Arena;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Failure by Licensor to cause the Arena to be maintained and operated in accordance with, or otherwise to meet and observe, the Standard, and such failure shall continue for fifteen (15) days after notice thereof from the Knicks to Licensor; provided that if such failure cannot reasonably be cured within such fifteen (15) days, then Licensor shall have up to an additional fifteen (15) days to cure such failure as long as, within fifteen (15) days after such notice,

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it diligently undertakes and pursues such cure and provides the Knicks with reasonable evidence that it is diligently undertaking and pursuing such cure, but in any event, Licensor shall not have more thirty (30) days from its receipt of notice of such failure from the Knicks to cure such failure; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Failure by Licensor to observe or perform in any material respect any covenant, agreement, condition, or provision of this Agreement not otherwise specified in this ARTICLE XVIII if such failure shall continue for sixty (60) days after notice thereof from the Knicks to Licensor; provided that Licensor shall not be in a Licensor Default with respect to matters that cannot reasonably be cured within sixty (60) days so long as within sixty (60) days after such notice Licensor commences such cure and diligently and continuously proceeds to complete the same, but in any event, Licensor shall not have more than ninety (90) days from its receipt of such notice to cure such failure.

**Section 18.02 <u>Remedies of</u> <u>the Knicks</u>.** If a Licensor Default occurs, the Knicks shall have the following rights and remedies, which shall be distinct, separate, and, to the extent not mutually exclusive, cumulative:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In addition to any other legal or equitable remedies as may be available to the Knicks and subject to clause (b) below, the Knicks may enforce the provisions of this Agreement and may enforce and protect the rights of the Knicks herein by seeking specific performance of any covenant or agreement contained herein, or the enforcement of any other appropriate legal or equitable remedy, including self-help (following notice, expiration of applicable cure period, and failure to cure) and recoupment from Licensor of the reasonable cost of curing any default on Licensor's behalf (and the right to offset such cost, or any amounts due from Licensor pursuant to this Agreement, against any amount then owed by the Knicks to Licensor pursuant to this Agreement), and recovery of all monies due or to become due from Licensor under any provisions of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Knicks shall be entitled to all reasonable costs, charges, expenses, and attorneys' fees incurred by the Knicks in connection with a Licensor Default; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything in this Agreement to the contrary, the Knicks shall not, under any circumstances, have the right to terminate this Agreement, except as set forth in ARTICLE XII.

**Section 18.03 <u>Rights in the Event of Repeal of Property Tax Exemption</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event the Property Tax Exemption is no longer in effect **[\*\*\*\*\*]** (a "No Fault Occurrence"), the Knicks shall remain responsible for fifty percent (50%) of the Arena Property Tax for the remainder of the Term, unless the Parties agree to extend this provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event the Property Tax Exemption is no longer in effect due to a breach of the Property Tax Exemption Agreement by the Knicks that leads to the loss of the Property Tax Exemption, the Knicks shall be responsible for 100% of any Arena Property Tax for the remainder of the Term.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary in Sections 16.01 or 18.03(a), in the event of a loss of the Property Tax Exemption **[\*\*\*\*\*]**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **[\*\*\*\*\*]**.

**ARTICLE XIX** 

**ASSIGNMENT** 

**Section 19.01 <u>Licensor Assignment</u>.** Licensor shall have the right to assign this Agreement upon written notice to the Knicks to any Person that acquires the Arena, provided the assignee agrees in writing to assume all of Licensor's obligations under this Agreement.

**Section 19.02 <u>Knicks Assignment</u>.** The Knicks shall have the right to assign this Agreement upon written notice to Licensor to any Person that acquires the Team in accordance with League Rules, provided the assignee agrees in writing to assume all of the Knicks' obligations under this Agreement. The Knicks shall further have the rights to collaterally assign this Agreement to secure indebtedness of the Knicks incurred in accordance with League Rules.

**Section 19.03 <u>No Other Assignment</u>.** Except as set forth in this ARTICLE XIX, neither Party shall be permitted to assign this Agreement without the prior written consent of the other Party. A change in ownership of either Party shall not be deemed an assignment under this <u>Section</u> <u>19</u>.

**ARTICLE XX** 

**MISCELLANEOUS** 

**Section 20.01 <u>Force Majeure</u>.** Should any fire or other casualty, act of God, earthquake, flood, epidemic, landslide, enemy act, war, riot, act or threat of terrorism, civil commotion, general unavailability of certain materials; a strike, slowdown, boycott or labor dispute (other than a strike, slowdown, boycott or labor dispute involving the League), or any other similar event beyond the reasonable control of the subject Party (each, a "**Force Majeure**") prevent performance of this Agreement by such Party in accordance with its provisions, performance of this Agreement (other than the payment of any sum of money owed hereunder, subject to the final two sentences of this <u>Section</u> <u>20.01</u>) by such Party shall be suspended or excused to the extent commensurate with such interfering occurrence. In the event of a Force Majeure, the Knicks shall be permitted to schedule and play Home Games at an alternate location, provided that playing games in such location fully complies with the requirements of Paragraph 6 of the Property Tax Exemption Agreement. In the event of a Force Majeure (including a governmental action) that results in (a) attendance at Arena events being limited to 1000 attendees or less per event for any period (a "Restricted Attendance Period"), the Knicks shall be permitted to schedule and play Home Games at the Arena during the Restricted Attendance Period; the pro rata License Fee attributable to any Home Games played at the Arena during any Restricted Attendance Period shall be reduced by 80% or (b) attendance at Arena events being materially limited (but greater than 1000 attendees), the parties will negotiate in good faith to agree on an appropriate reduction to the License Fee. Notwithstanding anything herein to the contrary, the Knicks' obligation to pay the License Fee for periods for which the Arena is unavailable for Home Games due to a Force Majeure event (including a governmental action or the occurrence of any Untenantable Condition) shall be abated during such periods.

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**Section 20.02 <u>Consents</u> <u>and Approvals</u>.** Any consents or approvals permitted or required to be given by Licensor or the Knicks under this Agreement shall not be valid unless such consent or approval is in writing, signed by the Party by or on whose behalf such consent or approval is executed.

**Section 20.03 <u>Entire Agreement</u>.** This Agreement, including the schedules and exhibits attached hereto, which are incorporated herein, constitutes the entire agreement between and among the Parties, and supersedes any previous oral or written agreements, representations and covenants, regarding the subject matter hereof and is a binding and enforceable agreement between and among the Parties and their respective successors and permitted assigns. This Agreement may not be amended, modified, supplemented or terminated unless in writing executed by the Parties and, in each case, unless approved in advance in writing by the NBA. Notwithstanding anything herein to the contrary, any agreement, consent, waiver or modification to the terms of this Agreement, whether or not contemplated herein, that would constitute a material modification to the terms of this Agreement that would remain in effect after the Parties are no longer affiliated, shall require the prior written approval of the NBA. Subject to the foregoing obligations to obtain NBA approval, in the event of any proposed change of control or ownership of either Party, the Parties may mutually agree to amend, modify or supplement this Agreement in order to facilitate such change of control or ownership transaction.

**Section 20.04 <u>Notices</u>.** All notices, demands, consents, approvals, statements, requests, and reports to be given under this Agreement shall be in writing, signed by the Party or an officer, agent, or attorney of the Party giving the notice and shall be deemed to be given upon receipt if delivered personally by nationally recognized overnight courier providing a receipt for delivery, by certified or registered mail, postage prepaid with return receipt requested, or by personal delivery at the applicable address set forth below or to such other address as that Party may designate in writing.

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| | |
|:---|:---|
| For the Knicks: | MSG Sports, LLC<br> Two Pennsylvania Plaza<br> New York, New York 10121<br> Attention: President |
| With copies to: | MSG Sports, LLC<br> Two Pennsylvania Plaza<br> New York, New York 10121<br> Attention: General Counsel |
|  | For the NBA: National Basketball Association<br> 645 Fifth Avenue<br> New York, New York 10022<br> Attention: General Counsel |

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| | |
|:---|:---|
| For Licensor: | MSG Arena, LLC<br> c/o MSG Entertainment Group, LLC<br> Two Pennsylvania Plaza<br> New York, New York 10121<br> Attention: President |
| With a copy to: | MSG Arena, LLC<br> c/o MSG Entertainment Group, LLC<br> Two Pennsylvania Plaza<br> New York, New York 10121<br> Attention: General Counsel |

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**Section 20.05 <u>Successors Bound</u>.** The covenants, terms, provisions, and conditions of this Agreement shall be binding upon Licensor and the Knicks and their respective successors and permitted assigns and inure to the benefit of Licensor and the Knicks and their respective successors and, to the extent permitted herein, assigns.

**Section 20.06 <u>Governing Law; Disputes</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to its choice of law provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any disputes arising under this Agreement, shall be submitted to, and resolved exclusively and finally through, the following arbitration process ("**Arbitration**"). Except as set forth below, the Arbitration process shall be administered by the American Arbitration Association ("**AAA**") under the Commercial Arbitration Rules in effect at the time the Dispute or Controversy is submitted to the AAA for Arbitration. The panel (the "**Arbitration Panel**") will consist of three (3) neutral arbitrators (each, an "**Arbitrator**") selected in accordance with applicable AAA procedures. In proposing a list of candidates for Arbitrators, AAA will take into account the Parties' desire to obtain potential Arbitrators with significant experience in the operation of comparable sports or entertainment facilities or in the entertainment and sports business generally, or with specific experience regarding the nature of the dispute. Barring extraordinary circumstances, an initial conference with the Arbitration Panel shall be scheduled to take place in New York, New York within thirty (30) days after the appointment of the third Arbitrator. At such conference, a schedule shall be established for such discovery, if any, as a majority of the Arbitration Panel deems appropriate in light of the nature of the dispute and the Parties' desire to resolve disputes in a prompt and cost-effective manner, and the date of the Arbitration hearing shall be established by vote of a majority of the Arbitration Panel. Barring extraordinary circumstances, the award will be rendered no later than fourteen (14) days from the date of the conclusion of the hearing. Unless the Parties otherwise agree, the Arbitration shall take place in New York, New York. Each Party irrevocably consents to the delivery of service of process with respect to any Arbitration in any manner permitted for the giving of notices under <u>Section</u> <u>20.04</u>. The Arbitration Panel shall not have the authority to alter, change, amend, modify, waive, add to or delete from any provision of this Agreement. If the Parties initiate multiple arbitration proceedings, the subject matters of which are related by common questions of law or fact and that could result in conflicting awards or obligations, such proceedings shall be consolidated into a single arbitral proceeding. Notwithstanding anything contained in the AAA

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rules to the contrary, subject to Article XIII, unless the Arbitration Panel finds that one or more claims or defenses were frivolous or knowingly false when made, each Party shall bear the cost of its own legal representation and expert witness fees, as well as its share of the fees and costs payable to the AAA and the Arbitrators, in any Arbitration under this Agreement. If the Arbitration Panel finds that one or more claims or defenses were frivolous or knowingly false when made, the Arbitration Panel shall be entitled to require the Party that made such frivolous or knowingly false claims or defenses to bear all or a portion of the other Party's legal fees and expert witness fees incurred in connection with such frivolous claims or defenses. All provisions of this Agreement applicable to disputes generally shall apply to the Arbitration. All decisions by the Arbitration Panel shall be (i) decided by majority vote and (ii) final and binding on the Parties and may be enforced by any court of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding any provision of this Agreement to the contrary, each Party may seek injunctive or other equitable relief (but not a declaratory judgment) from a court of law, as described in <u>Section</u> <u>20.06(d)</u>, with respect to any dispute. If a dispute requires emergency relief before the matter may be effectively resolved through arbitration, the Arbitration procedures set forth above will continue to govern the ultimate resolution of the dispute notwithstanding the fact that a court of competent jurisdiction may have entered an order providing for injunctive or other equitable relief.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any action that seeks injunctive or other equitable relief or confirmation of an award rendered in an Arbitration may only be brought by suit, action or proceeding before any federal or state court located in the Borough of Manhattan, City of New York, each of the Parties voluntarily and irrevocably consents and (without waiving service of process) submits to the personal jurisdiction and venue of the courts located in the Borough of Manhattan, City of New York that have subject matter jurisdiction, waives all objections as to venue and any claim that it is not personally subject to such jurisdiction or to seek a change of venue, agrees not to bring any such action or proceeding in any other forum, and waives the right to a trial by jury.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) This <u>Section</u> <u>20.06</u> shall survive any termination or expiration of the Term.

**Section 20.07 <u>Captions and Headings; Certain Rules of Construction</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The captions and headings throughout this Agreement are for convenience and reference only and the words contained therein shall in no way be held or deemed to define, limit, describe, explain, modify, amplify, or add to the interpretation, construction, or meaning of any provisions of this Agreement or the scope or intent thereof, nor in any way affect this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless the context, otherwise requires: (i) a term has the meaning assigned to it, (ii) "or" is not exclusive, (iii) words in the singular include the plural and words in the plural include the singular, (iv) "herein," "hereof " and other words of similar import refer to this Agreement as a whole and not to any particular article, section or other subdivision, (v) all references to "clauses," "sections" or "articles" refer to clauses, sections or articles of this Agreement, (vi) "including" means "including, without limitation" and (vii) the masculine, feminine and neuter adjectives and pronouns include one another.

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**Section 20.08 <u>Counterparts</u>.** This Agreement may be executed by facsimile or PDF signature and in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

**Section 20.09 <u>Confidentiality</u>**. Subject to League Rules and the rights of any mortgagees each Party agrees that, commencing on the Commencement Date and continuing for a period of five (5) years after the expiration or earlier termination of this Agreement, the Parties shall keep confidential the terms and conditions of this Agreement; provided that disclosure may be made (a) to their directors, equity holders, officers, Affiliates, employees, agents, advisors, and representatives (collectively, their "**Representatives**") (b) if disclosure is required by court order, or applicable law or regulation, including disclosures required by any governmental or regulatory body having the authority to regulate or oversee any aspect of the business of either Party (e.g., the Securities and Exchange Commission) (in which case the Party required to disclose such Confidential Information shall notify the other Party and use commercially reasonable efforts to obtain confidential treatment of any information so required to be disclosed), (c) if disclosure is required to comply with a request or requirement of a governmental or administrative entity or agent thereof, (d) to the League and/or any League Representatives, (e) as required by League Rules, (f) for valid business purposes to existing or prospective lenders, investors and employees of partners and Affiliates, (g) to enforce any of a Party's rights pursuant to this Agreement, or (h) to governmental authorities, to the extent necessary to perform a Party's obligations under this Agreement. Each Party shall direct their Representatives to maintain such information in the strictest confidence. No Party shall make any public announcement with respect to this Agreement or the transactions contemplated hereby without the prior written consent of the other Parties, not to be unreasonably withheld, conditioned or delayed.

**Section 20.10 <u>League Rules</u>**. This Agreement is subject to League Rules and Licensor hereby covenants to comply with all League Rules in connection with its performance hereunder and its operation of the Arena for Knicks Events. In the event of any conflict between this Agreement and League Rules with respect to the Parties' rights and obligations hereunder, League Rules shall control and govern in all respects. Nothing in this <u>Section</u> <u>20.10</u> shall affect the Knicks' obligations under <u>Section</u> <u>11.01</u> or <u>Article XIII</u>.

**Section 20.11 <u>Superior Interests</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each mortgagee or similar party named in any mortgage or similar instrument now existing or hereafter made and encumbering an interest in the Arena superior to that of Licensor (each such mortgage and similar instrument being hereinafter collectively referred to as "**Superior Interests**", and the holder of the mortgagee's and similar party's interest being hereinafter collectively referred to as "**Superior Interest Holders**") shall agree in a commercially reasonable form of instrument that, if it succeeds to the interest of Licensor in the Arena by termination of the Superior Interest by any means, it will recognize the rights and interest of the Knicks under this Agreement to use and occupy the Arena if and as long as a Knicks Default has not occurred and is continuing (which agreement may, at such Superior Interest Holder's option require attornment by the Knicks), in consideration of which the rights and interests of the Knicks to use and occupy the Arena shall be subject and subordinate to the Superior Interest and to any and all advances to be made therein, and to the interest thereon, and all renewals, replacements and extensions thereof. The Superior Interest Holder may elect that, instead of making this

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Agreement subject and subordinate to its Superior Interest, the rights and interest of the Knicks under this Agreement shall have priority over the lien of the Superior Interest in question. The Knicks agree that it will, within ten (10) days after demand in writing, execute and deliver such reasonable instruments may be required, either to make this Agreement subject and subordinate to such a Superior Interest (subject to the Superior Interest Holder's agreement as aforesaid to recognize the rights and interest of the Knicks under this Agreement to use and occupy the Arena if and as long as a Knicks Default has not occurred and is continuing), or to give this Agreement priority over the lien of such Superior Interest, whichever alternative may be elected by the respective Superior Interest Holder.

**Section 20.12 <u>Severability</u>.** If any Article, Section, Subsection, Schedule, Exhibit, term, or provision of this Agreement or the application thereof to any Party or circumstance shall, to any extent, be invalid or unenforceable, the remainder of the Article, Section, Subsection, Schedule, Exhibit, term, or provision of this Agreement or the application of same to Parties or circumstances other than those to which it is held invalid or unenforceable shall not be affected thereby and each remaining Article, Section, Subsection, Schedule, Exhibit, term, or provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

**Section 20.13 <u>Waiver</u>.** No waiver of any right, obligation or default shall be implied, but must be in writing, signed by the Party against whom the waiver is sought to be enforced. Any particular waiver of any right, obligation or default shall not be construed as a waiver of any subsequent or other right, obligation or default.

**Section 20.14 <u>Further Assurances</u>.** Licensor and the Knicks shall execute, acknowledge, and deliver, after the date hereof, without additional consideration, such further assurances, instruments, and documents, and shall take such further actions, as Licensor or the Knicks shall reasonably request of the other in order to fulfill the intent of this Agreement and the transactions contemplated thereby.

**Section 20.15 <u>No Third-Party Beneficiary</u><u>; Enforcement of Third-Party Agreements</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The provisions of this Agreement are for the exclusive benefit of the Parties and not for the benefit of any third person, nor shall this Agreement be deemed to have conferred any rights, express or implied, upon any third person unless otherwise expressly provided for herein; <u>provided</u>, that the League is a third party beneficiary of (i) the Knicks cure rights as set forth in Section 17.04, (ii) the obligations of the Parties to obtain the League's written approval prior to any amendment, modification, waiver, supplementation or termination of this Agreement (as set forth in <u>Section</u> <u>20.03</u>), and (iii) the enforcement of <u>Section</u> <u>20.10</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Licensor shall use commercially reasonable efforts to enforce any agreement between Licensor and any third-party (or third-parties) (including, without limitation, the ADA Consent Decree, Ticket Agent Agreements, Suite Agreements, Hospitality Agreements and Joint Sponsor Agreements) that apply to any of the Knicks rights or obligations under this Agreement.

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**Section 20.16 <u>Books and Records</u>.** Licensor and the Knicks shall each keep full, true, and correct contracts, books and records in accordance with generally accepted accounting principles consistently applied (and shall require all of their agents, contractors, and concessionaires to keep such books and records of their transactions to the extent that such transactions would be the subject of the calculation of any payments due from one Party to the other under this Agreement) setting forth the factual, accounting, and legal bases upon which the calculation of payments herein are made (the "**Books and Records**"), and in such detail that would reasonably enable a reasonably qualified third party to readily and independently make such calculations and verify the accuracy of statements of same which are furnished by one Party to the other under this Agreement. Each Party's books and records shall be (a) retained for at least three (3) years following the other Party's receipt of the respective statement(s) to which they apply, and (b) made available for inspections and copying by the other Party's duly authorized representatives at all reasonable times at reasonable office locations in the New York, NY metropolitan area. Each Party shall promptly furnish to the other a complete copy of any report of any such examination or inspection.

**Section 20.17 <u>Audit Rights</u>.** Each Party (the "**Auditing Party**") shall be entitled to audit the relevant Books and Records of the other Party (the "**Non-Auditing Party**") for the sole purpose, and only to the extent, of determining the Non-Auditing Party's compliance with the financial terms of this Agreement. Such audit right shall be exercisable by the Auditing Party by providing the Non-Auditing Party with not less than five (5) business days written notice. Except as otherwise set forth below, all costs and expenses of any such audit shall be paid by the Auditing Party. If the audit discloses that the Non-Auditing Party has failed to pay any amounts due under this Agreement, the Non-Auditing Party shall remit the underpayment to the Auditing Party within thirty (30) days following the Auditing Party's delivery of notice and evidence of underpayment to the Non- Auditing Party. If the audit reveals an underpayment to the Auditing Party of greater than 5%, then the Non- Auditing Party shall pay all costs and expenses associated with such audit, provided that the auditor is an independent certified public accounting firm paid on an hourly (and not contingency) basis.

**Section 20.18 <u>Access to Financial Information</u>.** Licensor acknowledges that existing League Rules on financial reporting under the League's collective bargaining agreements and revenue sharing plans requires the Team, annually and from time to time, to provide the League and auditors for the League and its players' association detailed financial information, including information that is in the possession of Licensor. Licensor agrees to provide the information requested by the League and/or the auditors for these purposes and to use commercially reasonable efforts to provide the staff and other support necessary to comply with these requests and the related process.

***[signatures on next page]***

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IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the date first above written.

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| | |
|:---|:---|
| **<u>LICENSOR</u>:** | **<u>LICENSOR</u>:** |
| MSG ARENA, LLC | MSG ARENA, LLC |
| By: | /s/ Philip D'Ambrosio |
| Name: | Philip D'Ambrosio |
| Title: | Senior Vice President, Treasurer |
| **<u>KNICKS</u>:** | **<u>KNICKS</u>:** |
| NEW YORK KNICKS, LLC | NEW YORK KNICKS, LLC |
| By: | /s/ Victoria M. Mink |
| Name: | Victoria M. Mink |
| Title: | Executive Vice President and |
|  | Chief Financial Officer |

---

[*Signature Page to Arena License Agreement – Knicks*]

## Exhibit 10.44

**Exhibit 10.44** 

***Execution Version*** 

**CERTAIN CONFIDENTIAL INFORMATION, IDENTIFIED BY BRACKETED ASTERISKS "[\*\*\*\*\*]", HAS BEEN OMITTED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

**ARENA LICENSE AGREEMENT** 

**between** 

**MSG ARENA, LLC** 

**and** 

**NEW YORK RANGERS, LLC** 

Dated as of April 15, 2020

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**ARENA LICENSE AGREEMENT** 

This ARENA LICENSE AGREEMENT (this "**Agreement**") is made as of April 15, 2020 (the "**Effective Date**") between MSG Arena, LLC, a Delaware limited liability company ("**Licensor**"), and New York Rangers, LLC, a Delaware limited liability company (the "**Rangers**"). Licensor and the Rangers are each referred to individually as a "**Party**" and collectively as the "**Parties**."

**<u>RECITALS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Licensor owns and operates the arena commonly known as Madison Square Garden, which is located at 4 Pennsylvania Plaza, New York, New York 10001 that contains approximately 17,000 seats for hockey games, and is suitable for the exhibition of ice hockey games and for other purposes (the "**Arena**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. New York Rangers, LLC owns and operates the professional hockey team known as the New York Rangers (the "**Team**") in the National Hockey League (the "**NHL**" or the "**League**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Licensor wishes to grant the Rangers, on behalf of the Team, certain rights to use specified parts of the Arena at specified times, and the Rangers desire to so use the Arena at such times, upon the terms and conditions set forth in this Agreement.

Now, therefore, in consideration of the foregoing, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

**<u>ARTICLE I</u>**

**DEFINITIONS** 

**"ADA Consent Decree"** means the Consent Decree entered November 5, 2007 in the lawsuit entitled <u>United States of America vs. Madison Square Garden, L.P., et al.</u>, 07 Civ. 9704 (RJH), in the United States District Court for the Southern District of New York.

**"Advertising"** means, collectively, all advertising, sponsorship and promotional activity, signage, messages and displays of every kind and nature at or regarding the Arena, whether audio or visual and whether now existing or developed in the future, including the following: (i) the right to name the Arena or any portion thereof, including identifying such name on the Arena concourses, the entrances to the Arena, premium seating areas or any other areas at the Arena; (ii) permanent, non-permanent and transitory signage or advertising displayed on permanent (e.g., fixed panel) or non-permanent (e.g., rotating) advertising panels or on the interior or exterior of the Arena (including Arena marquee boards and other exterior signage); (iii) advertising appearing on fixtures or equipment (such as scoreboard advertising and canopy advertising); (iv) audio or video public address advertising and message board advertising; (v) electronic insertion, fascia boards, liquid electronic displays, ribbon boards and other forms of electronic signage ("**LED Signage**"); (vi) print and display advertising, including advertising on or in game programs,

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schedules, tickets and yearbooks; (vii) promotional events or activities sponsored by corporate partners; (viii) the exhibition and promotion of products and services at the Arena (e.g., kiosks and special areas in the concourse); (ix) advertising worn or carried by concessionaire personnel or other personnel engaged in the operation of any Arena event; (x) advertising affixed to or included with cups, napkins, utensils, plates or other similar items used to consume Concessions at the Arena ("**Concession Items**"); (xi) advertising at concession areas; and (xii) promotional or premium item give-aways.

**"Affiliate"** means, with respect to any specified Person, any other Person directly or indirectly controlling or controlled by, or under direct or indirect common control with, such specified Person, or which is a director, officer, employee, or partner (limited or general) of such specified Person, but with respect to either Party specifically excluding the other Party and the other Party's publicly owned parent and such parent entity's direct and indirect subsidiaries. For the purpose of this definition, "control", when used with respect to any specified Person, means the power to direct or cause, directly or indirectly, the direction of the management and policies of such Person whether through the voting of securities, by contract or otherwise. The terms "controlling" and "controlled" have meanings correlative to the foregoing.

"**Agreement**" has the meaning set forth in the preamble.

"**Arena**" has the meaning set forth in Recital A.

"**Arena Agency Agreements**" has the meaning set forth in <u>Section</u> <u>7.02(b)</u>.

"**Attendance Based Allocation**" has the meaning set forth in <u>Schedule 6.01</u>.

"**Auditing Party**" has the meaning set forth in <u>Section</u> <u>20.17</u>.

"**Books and Records**" has the meaning set forth in <u>Section</u> <u>20.16</u>.

"**Casualty**" shall mean any damage, destruction or other property casualty of any kind or nature, ordinary or extraordinary, foreseen or unforeseen resulting from any cause, including any Force Majeure event.

"**Catering Services**" and **"Catering Gross Receipts"** have the meanings set forth in <u>Schedule 6.01</u>.

"**Commencement Date**" has the meaning set forth in <u>Section</u> <u>2.01</u>.

"**Common Areas**" has the meaning set forth in <u>Schedule 4.01</u>.

"**Concessions**" means F&B Concessions, Team Merchandise sold or provided at the Arena, and Non-Team Merchandise.

"**Condemnation**" means a taking by eminent domain, condemnation or appropriation by any governmental authority or other Person with the power of eminent domain for any public or private use or purpose.

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"**Condemnation Award**" means all sums, amounts or other compensation for the Arena payable to the Rangers or Licensor as a result of or in connection with any Condemnation.

"**Convenience Fees"** has the meaning set forth in <u>Section</u> <u>5.06(a)</u>.

"**Contract Year**" means, other than the Initial Contract Year, each period of the Term from July 1 through the immediately following June 30.

"**Customer Data**" has the meaning set forth in <u>Section</u> <u>10.03(a)</u>.

"**Effective Date**" has the meaning set forth in the preamble.

"**Exclusivity Breach**" has the meaning set forth in <u>Section</u> <u>17.01(e)</u>.

"**Exhibition and Regular Season Home Games**" means games played by the Team during the exhibition season or regular season of the League where the Team (and not the opposing team) has the right to designate the location of such game or which is considered one of the Team's home games by the League for purposes of League Rules, standings or scheduling.

"**F&B Concessions**" and "**F&B Concessions Gross Receipts"** have the meanings set forth in <u>Schedule 6.01</u>.

"**Facility Ticket Fee**" has the meaning set forth in <u>Section</u> <u>5.02(c)</u>.

"**First Full Contract Year**" means July 1, 2020 through June 30, 2021.

"**Force Majeure**" has the meaning set forth in <u>Section</u> <u>20.01</u>.

"**Game Day Services**" has the meaning set forth in <u>Section</u> <u>9.02</u>.

"**General Services**" has the meaning set forth in <u>Section</u> <u>9.01</u>.

"**Gross Receipts**" has the meaning set forth in <u>Schedule 6.01</u>.

"**Home Date**" means each date on which a Home Game is scheduled.

"**Home Games**" means collectively, Exhibition and Regular Season Home Games and Playoff Home Games.

"**Initial Contract Year**" means the period beginning on the Commencement Date through June 30, 2020.

"**Joint Sponsors**" has the meaning set forth in <u>Section</u> <u>7.02(b)</u>.

"**Knicks**" has the meaning set forth in <u>Section</u> <u>4.04(a)</u>.

"**Knicks Games**" has the meaning set forth in <u>Section</u> <u>4.04(a)</u>.

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"**League**" has the meaning set forth in <u>Recital B</u>.

"**League Rules**" means (a) the NHL Constitution, (b) the NHL By-laws, (c) the governing documents of each of the NHL Entities, (d) all other existing or future rules, regulations, interpretations, memoranda, procedures, directives, policies, guidelines, positions, and resolutions of, including, without limitation, positions taken with, and agreements, covenants, representations and warranties made to, any court or governmental or quasi-governmental agency by, each of the NHL Entities, the NHL Board of Governors and the NHL Commissioner, (e) the Transaction Agreement, dated as of the date hereof, among the NHL, the Rangers and certain other parties thereto (the "**Transaction Agreement**") and each Prior Consent Agreement (as defined in Transaction Agreement), (f) the Settlement Documents as defined in the Settlement Agreement dated March 23, 2009, (g) the Lender Letter Agreement (as defined in the Transaction Agreement), (h) the current and future Collective Bargaining Agreements between the NHL and the National Hockey League Players' Association and between the NHL and the National Hockey League Officials' Association and all other agreements, consent agreements, decrees, cooperation agreements and settlement agreements presently or hereafter in effect or entered into between or among any NHL Entity or Entities, on the one hand, and the NHL member clubs generally, on the other hand, or any NHL Entity or Entities and/or the NHL member clubs generally, on the one hand, and other persons, on the other hand, in furtherance of the NHL's (or any other NHL Entity's) business or interests or as otherwise authorized, directly or indirectly, by the NHL Board of Governors, the NHL Commissioner, the applicable NHL Entity, the NHL Constitution or the NHL By-laws and (i) the NHL Commissioner's interpretation of, opinions concerning, and the custom and practice under, any of the foregoing, all as may be amended from time to time.

"**License Fee**" has the meaning set forth in <u>Section</u> <u>3.01</u>.

"**Licensor**" has the meaning set forth in the preamble.

"**Licensor Default**" has the meaning set forth in <u>Section</u> <u>18.01</u>.

"**Licensor Promotion**" has the meaning set forth in <u>Section</u> <u>10.01(a)</u>.

"**Licensor Services**" means, collectively, General Services and Game Day Services.

"**Madison Club**" has the meaning set forth in <u>Section</u> <u>5.03(d)</u>.

"**Maximum Credit or Refund**" has the meaning set forth in <u>Section</u> <u>15.02</u>.

"**MSG Sports**" means MSG Sports, LLC, the parent company of the Rangers and the Knicks.

"**NHL**" has the meaning set forth in <u>Recital B</u>.

"**NHL Entities**" means the NHL, NHL Enterprises, L.P., NHL Enterprises Canada, L.P., NHL Enterprises, Inc., National Hockey League Enterprises Canada, Inc., NHL Enterprises B.V., Intra-Continental Ensurers, Limited, NHL Interactive CyberEnterprises, LLC, NHL Network US, L.P., NHL Network US, Inc., NHL WCH 16, LP, NHL WCH 16, Inc., NHL WCH 16 Canada

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Holdco, Inc., NHL WCH 16 US, LP, NHL WCH 16 US GP, LLC, NHL WCH 16 US Holdco, LLC, NHL China Holdings, LLC, any entity that may be formed by the NHL member clubs generally after the date of this Agreement (but excluding the NHL member clubs), and each of their respective subsidiaries and other present or future affiliates.

"**Net Profits**" has the meaning set forth in <u>Schedule 6.01</u>.

"**No Fault Occurrence**" has the meaning set forth in <u>Section</u> <u>18.03</u>.

"**Non-Auditing Party**" has the meaning set forth in <u>Section</u> <u>20.17</u>.

"**Non-Team Merchandise**" means all programs, other publications, and merchandise other than Team Merchandise.

"**Other Arena Event**" has the meaning set forth in <u>Section</u> <u>4.04(c)</u>.

"**Other Rangers Event**" has the meaning set forth in <u>Section</u> <u>4.04(b)</u>.

"**Party**" or "**Parties**" has the meaning set forth in the preamble.

"**Person**" means any individual, corporation, company, voluntary association, partnership, incorporated organization, trust, limited liability company, or any other entity or organization.

"**Playoff Home Games**" means games played after the end of the League's regular season as part of its championship tournament, for which the Team must qualify based on its regular season record, where the Team (and not the opposing team) has the right to designate the location of such game or which is considered one of the Team's home games by the League for purposes of League Rules or scheduling.

"**Property Tax Exemption**" has the meaning set forth in <u>Section</u> <u>16.01</u>.

"**Property Tax Exemption Agreement**" has the meaning set forth in <u>Section</u> <u>16.01</u>.

"**Rangers**" has the meaning set forth in the preamble.

"**Rangers Default**" has the meaning set forth in <u>Section</u> <u>17.01</u>.

"**Rangers Event"** means Home Games and Other Rangers Events.

"**Rangers Misuse**" has the meaning set forth in <u>Section</u> <u>4.07</u>.

"**Rangers' Personnel and Guests**" means the personnel, guests and invitees of the Rangers (including holders of tickets of admission to the Arena, holders of press and media credentials, and visiting team personnel).

"**Rangers' Promotional Use**" has the meaning set forth in <u>Section</u> <u>10.01(d)</u>.

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"**Representatives**" has the meaning set forth in <u>Section</u> <u>20.09</u>.

"**Rinkside Advertising**" has the meaning set forth in <u>Section</u> <u>7.01</u>.

"**Standard**" means, with respect to the applicable requirement, obligation or matter, (a) in compliance with applicable law, (b) in compliance with League Rules and (c) at a first-class level equal to or better than that at which NHL arenas in major U.S. markets are then operated, maintained and improved for NHL games (in the case of improvements, taking into reasonable consideration the age and location of the Arena and its existing structural limitations), and in no event less than the highest standard of quality and manner in which the Arena (i) was operated, maintained and improved historically (post 2011 - 2013 transformation) with respect to Home Games and (ii) will be operated, maintained and improved for Other Arena Events.

**"Suite 200"** has the meaning set forth in <u>Section</u> <u>5.03(h)</u>.

"**Suites**" shall mean the premium locations within the Arena currently designated as "Event Level Suites," "Madison Level Suites" and "Signature Level Suites" as more specifically described in <u>Schedule 4.01</u>, and any replacement suites in those locations.

"**Team**" has the meaning set forth in <u>Recital B</u>.

"**Team Areas**" has the meaning set forth in <u>Schedule 4.01</u>.

"**Team Merchandise**" means merchandise (including programs and other publications) that bears the Team's name, logo(s), or other intellectual property relating to the Team, or any other League intellectual property, including any merchandise relating to or depicting (as the case may be) the League and/or any of its teams, players, and/or events (e.g., the NHL All-Star Game, the Stanley Cup Playoffs, the NHL Winter Classic), or the logo(s) of any of the foregoing.

"**Team Merchandise Allocation**" has the meaning set forth in <u>Section</u> <u>6.02(d)</u>.

"**Term**" has the meaning set forth in <u>Section</u> <u>2.01</u>.

"**The Loft**" has the meaning set forth in <u>Section</u> <u>5.03(d)</u>.

"**Ticket**" or "**Tickets**" has the meaning set forth in <u>Section</u> <u>5.01</u>.

"**Ticket Agent**" has the meaning set forth in <u>Section</u> <u>5.06(a)</u>.

"**Ticket Agent Agreement**" has the meaning set forth in <u>Section</u> <u>5.06(a)</u>.

"**Untenantable Condition**" means a condition of the Arena that occurs on account of a Casualty or Condemnation and, as a result of which League Rules or applicable law prohibit the playing of Home Games at the Arena or would entail denial of access to or loss of a material portion of (i) the general seating areas of the Arena or (ii) revenues of the Rangers derived from the Arena.

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"**VIP Club Services**" has the meaning set forth in <u>Section</u> <u>9.03</u>.

"**VIP Clubs**" has the meaning set forth in <u>Section</u> <u>9.03</u>.

"**Work Stoppage**" has the meaning set forth in <u>Section</u> <u>15.01</u>.

**<u>ARTICLE II</u>**

**TERM** 

**Section 2.01 <u>Term; Commencement Date</u>**. The term of this Agreement shall commence on April 17, 2020 (the "**Commencement Date**") and, unless earlier terminated in accordance with the terms of this Agreement, shall end on June 30, 2055 (the "**Term**").

**<u>ARTICLE III</u>**

**LICENSE FEE** 

**Section 3.01 <u>License Fee</u>**. The Rangers shall pay to Licensor a license fee, without any right of offset, reduction or abatement (except as expressly provided in this Agreement), as follows: (a) for the Initial Contract Year, a prorated amount equal to $16,200,000 divided by forty-four (44), multiplied by the number of Exhibition and Regular Season Home games scheduled to be played in the Arena in the Initial Contract Year; (b) for the First Full Contract Year, $16,686,000; and (c) for each subsequent Contract Year, 103% of the license fee for the immediately preceding Contract Year (the "**License Fee**").

**Section 3.02 <u>Payment of License Fee</u>**. For each Contract Year, the Rangers shall pay the License Fee in twelve (12) equal installments on the first business day of each month during the Contract Year, except that the License Fee for the Initial Contract Year shall be paid in equal monthly installments on the first business day of the month following the Commencement Date and the first business day of each remaining month in the Initial Contract Year.

**<u>ARTICLE IV</u>**

**USE OF ARENA** 

**Section 4.01 <u>Arena</u> <u>Areas</u>**. The Arena includes the areas identified on <u>Schedule 4.01</u> attached hereto. The Parties shall regularly coordinate and discuss with one another and accommodate the other's reasonable requests for adjustment thereto. The Parties acknowledge and agree that the precise locations, square footage, appearance and amenities of the Common Areas and Team Areas set forth therein shall be subject to change from time to time during the Term in accordance with Section 4.05.

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**Section 4.02 <u>Rangers Use</u>**. Licensor hereby grants to the Rangers and the Rangers' Personnel and Guests, and the Rangers hereby accept from Licensor, for itself and the Rangers' Personnel and Guests, a license to use the Arena as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Common Areas and Team Areas</u>. Subject to League Rules, on each Home Date, beginning at approximately 10:00 a.m., until two (2) hours after the completion of such Home Game, the Rangers shall have the exclusive right and license to use the Common Areas and the Team Areas for the purpose of playing of Home Games and conducting related activities, and the presentation thereof by any and all means, live and over radio and television and all other means of communication now existing and hereafter developed, and such other uses expressly permitted in this Agreement or as may be agreed to by the Parties. Notwithstanding the foregoing start time, Licensor may schedule Other Arena Events (as defined below) on Home Dates (each, a "**Shared Date**") in accordance with Section 4.04(c); provided that in no event shall the Rangers have exclusive access to the Common Areas and Team Areas any later than three (3) hours prior to the start of any Home Game. Licensor shall reimburse the Rangers for any costs incurred by the Rangers solely as a result of a Home Game occurring on a Shared Date (e.g., visiting team relocating a morning skate). In addition, the Rangers shall have reasonable access, on a non-exclusive basis, to the Common Areas and the Team Areas for purposes related to the business or hockey operations of the Rangers at reasonable times on days that are not Home Dates and during periods on Home Dates other than those specified above (but in no case during ticketed Other Arena Events (as defined in Section 4.04(c) below)), provided the Rangers' use of the Common Areas may not unreasonably interfere with any use by Licensor or authorized use by its other licensees (including the Knicks).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Access</u>. All rights and licenses set forth in this <u>Section</u> <u>4.02</u> include in favor of the Rangers and the Rangers Personnel and Guests (including holders of tickets of admission to the Arena, holders of press and media credentials, and visiting team personnel), subject to the Arena's safety and security protocols as provided in Section 4.06(b), (i) rights and licenses of entry, ingress and egress over and across all applicable portions of the Arena, and (ii) the right and license to bring into the Arena (and to permit the Rangers Personnel and Guests into the Arena), and retain ownership and control of, items of personal property and equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Grant of License</u>. This Agreement is intended to, and shall be construed as, a grant of a license by Licensor to the Rangers and the Rangers Personnel and Guests, and shall not operate to vest in the Rangers any ownership or leasehold interest, or other real estate interest, in the Arena or the property of Licensor, whether real or personal, tangible or intangible, or any use or possessory rights other than those rights expressly granted by the license hereunder (and then subject to and in accordance with all of the provisions of this Agreement).

**Section 4.03 <u>Licensor</u><u>'</u><u>s</u> <u>Right of Entry</u>**. Notwithstanding the provisions of Section 4.02, but subject to League Rules, Licensor and its agents and representatives shall have the right to enter into and upon any and all parts of the Arena, including the Team Areas and the Common Areas, as necessary for the purpose of carrying out its obligations under this Agreement, to operate the Arena, to perform necessary safety, security and maintenance activities and for other purposes that do not unreasonably interfere with the Rangers' rights hereunder.

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**Section 4.04 <u>Scheduling</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Team Games</u>. The scheduling procedure for Home Games shall continue in a manner consistent with past practice, subject to, and at all times in accordance with, League Rules. It is understood between the Parties that Licensor is entering into a simultaneous license with New York Knicks, LLC (the "**Knicks**"), on behalf of the professional basketball team known as the New York Knicks, to host basketball games ("**Knicks Games**") in the Arena. The Parties will continue to cooperate with each other in good faith recognizing that Licensor has obligations to the Knicks. Consistent with past practice, Licensor will jointly coordinate with the League and the National Basketball Association in scheduling Home Games and Knicks Games. In addition, each Party shall (i) use reasonable efforts to avoid material business impacts on the other Party where such Party has the ability to do so and (ii) reasonably cooperate and honor requests for changes to previously scheduled or held dates. For the avoidance of doubt, in the event of any conflict between any of the foregoing and League Rules, League Rules shall control and govern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Other Rangers Events and Usage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to the terms of this subsection, the Rangers shall be entitled to license the Arena without payment of an incremental license fee on up to two (2) occasions per Contract Year, to present certain Team-related events other than Home Games (e.g., open practices, ticket sales events, season subscriber events and similar functions as mutually agreed) (each, an "**Other Rangers Event**"). Dates for Other Rangers Events may be reserved no earlier than forty-five (45) days in advance of the proposed event and such reservations shall be subject to any dates previously booked by Licensor for Other Arena Events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Rangers may use such Team Areas and Common Areas, and Licensor shall provide such Licensor Services (for which Game-Day Services the Rangers shall pay or reimburse Licensor as provided herein), as are reasonably necessary or requested by the Rangers for such Other Rangers Events. Other Rangers Events shall be subject to other terms and conditions to be negotiated by the Parties. Unless the Parties agree otherwise with respect to a particular event, all terms of this Agreement applicable to Home Games will apply to Other Rangers Events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) At the Rangers' request, Licensor may, in its discretion, license the Arena and/or other Licensor-owned venues (e.g., Beacon Theater, Radio City, Tao) to the Rangers to the extent available and without payment of an incremental license fee (the Rangers shall pay any expenses). Such events may be in addition to Other Rangers Events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Arena Events</u>. Subject to Section 4.04(a), Licensor shall be entitled to schedule Knicks Games, other sporting events, concerts, and any other types of events in the Arena (each, an "**Other Arena Event**"), including, for the avoidance of doubt, on the same day as a Home Game; provided that: (i) no Other Arena Event shall relieve Licensor of its obligations hereunder, including to deliver the Common Areas and Team Areas to the Rangers in the condition required by ARTICLE IX by or before the times required in Section 4.02(a), and (ii) no Other Arena Event shall be scheduled if it could reasonably be expected to materially interfere with the presentation, use or operation of the Arena for any previously scheduled Rangers Events (or the revenues derived by the Rangers therefrom).

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**Section 4.05 <u>Alterations</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Rangers Alterations</u>. During the Term, the Rangers may request that Licensor make alterations to the Team Areas and/or Common Areas. Licensor shall make those alterations to the extent necessary to comply with its obligations under this Agreement, at Licensor's sole cost and expense. To the extent those alterations are not necessary for Licensor to comply with its obligations under this Agreement, those alterations shall be subject to the approval of Licensor, such approval not to be unreasonably withheld, conditioned or delayed, and shall be made at the Rangers' sole cost and expense (subject to the Rangers' approval of Licensor's plans and costs); it being understood that Licensor may deny its approval if it reasonably determines that such alterations would materially adversely impact Licensor or any third party who regularly uses the space (e.g., the Knicks).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Licensor Alterations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Licensor shall have the right to make alterations or other changes to the Arena, in its sole discretion and at
its sole cost and expense; provided that Licensor shall be required to obtain the prior written consent (not to be unreasonably withheld, conditioned or delayed) of the Rangers to the extent that any such alterations or changes could reasonably be
expected to impact the Rangers' rights or obligations hereunder, or the presentation, set-up, use or operation of the Arena for any Rangers Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting ARTICLE IX, Licensor shall be responsible for making alterations, upgrades, modifications and
improvements to the Arena (and the components thereof) at Licensor's sole cost and expense (subject to Section 4.05(c)), as may be required from time to time in order to maintain the Arena in accordance with the Standard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Alterations intended to generate additional premium seating revenues for both Licensor and the Rangers shall be
governed by the terms of Section 5.04.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Alterations Pursuant to League Rules</u>. Notwithstanding anything to the contrary contained in this Agreement, any alterations, upgrades, modifications or improvements to the Arena that are made solely to comply with any new or amended League Rules that are enacted after the Commencement Date shall be made at the Rangers' sole expense.

The Parties shall cooperate in good faith to agree on the plans and specifications for alterations made under Sections 4.05(a) – (c) and the time period during which such alterations are expected to be made. All such alterations shall (i) be made by Licensor or its contractors, (ii) comply with all applicable laws, ordinances, orders, regulations and League Rules, (iii) be completed in a good and workmanlike manner, using new materials or their equivalent, without unreasonable delay, (iv) not interfere with gameplay in accordance with League Rules and (v) not materially interfere with the presentation, set-up, use or operation of the Arena for any Rangers Event (or the revenues derived by the Rangers therefrom), without the Rangers' prior written approval.

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**Section 4.06 <u>Manner of the Rangers</u><u>'</u> <u>Use</u>.** At all times during the Term:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Rangers shall use the Arena in accordance with all League Rules and applicable laws, ordinances, and regulations. Licensor shall operate the Arena in accordance with all League Rules, applicable laws, ordinances, and regulations. Without limiting the foregoing, each party shall be responsible, with respect to its functions, rights and obligations under this Agreement, for compliance with the ADA Consent Decree as if it is a party thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Rangers and their guests, invitees, patrons, and designees shall be subject to any reasonable and nondiscriminatory rules and regulations and security procedures that Licensor imposes on the use of the Arena, so long as the same (i) are not inconsistent with the other provisions of this Agreement (including Licensor's requirement to maintain and operate the Arena in accordance with the Standard) or League Rules, and (ii) are uniformly applied to all other occupants and users of the Arena except to the extent necessitated by differing particular event types.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Party shall, at any time and from time to time, upon not less than ten (10) days prior written request from the other Party, execute, acknowledge and deliver to the requesting Party, in a form reasonably satisfactory to the requesting Party and, if applicable, its existing or prospective direct or indirect lender or purchaser, a written estoppel statement certifying, (i) that this Agreement is unmodified and in full force and effect (or, if there have been modifications, that the same is in full force and effect as modified and stating the modifications), (ii) if true (or, if not entirely true, listing any exceptions), that the requesting Party is not in default hereunder, (iii) the date to which the License Fee and other charges have been paid in advance, if any, and (iv) such other accurate certifications as may reasonably be required by the requesting Party or its existing or prospective direct or indirect lender or purchaser, and agreeing to give copies to the requesting Party's existing or prospective direct or indirect lender or purchaser of all material notices by the stating Party to the requesting Party, and agreeing to afford the requesting Party's existing or prospective direct or indirect lender or purchaser an opportunity to cure any default of the stating Party within the applicable cure period afforded to the requesting Party hereunder. It is intended that any such statement delivered pursuant to this subsection may be relied upon by any prospective direct or indirect lender to or purchaser of the Rangers or of the Arena and their respective successors and assigns.

**Section 4.07 <u>Rangers Misuse</u>**. The Rangers shall promptly reimburse Licensor for costs of cleaning, repairs or replacements, net of insurance proceeds received under Article XIV, necessitated by (a) uses by the Rangers not permitted under this Agreement, or (b) grossly negligent, reckless or willful acts of the Rangers or visiting NHL teams for Rangers Events that cause such damage (collectively, **"Rangers Misuse"**).

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**Section 4.08 <u>Surrender</u>**. Upon the expiration of the Term or earlier termination of this Agreement, the Rangers shall promptly vacate the Arena under the direction of and in the manner reasonably approved by Licensor, and shall surrender all of its keys, access cards, and other credentials and access items for the Arena to Licensor, and shall inform Licensor of all combinations on all of its locks, safes, and vaults, if any, in the Arena. Without limiting the foregoing, the Rangers shall not remove any alterations, improvements, or other property (other than personal property not affixed or attached to the Arena or any elements thereof) from the Arena unless permitted to do so by Licensor, and the Rangers shall promptly reimburse Licensor for the cost of repairing any damage caused by such removal. Any personal property of the Rangers which remains in the Arena after the expiration of the Term or earlier termination of this Agreement may, at the option of Licensor, be deemed to have been abandoned, and, in Licensor's sole discretion, (a) may be retained by Licensor as its property, (b) shall be disposed of by the Rangers at the request of Licensor, or (c) may be disposed of by Licensor.

**<u>ARTICLE V</u>**

**TICKETS, SUITES AND CLUBS** 

**Section 5.01 <u>Prices</u>**. As between Licensor and the Rangers, (a) the Rangers shall have sole discretion to control the manifest and determine the prices and fees (subject to Section 5.06(a)) for all tickets and other indicia authorizing admission (each a "**Ticket**") for general admission seating, standing room and other general admission spectator positions in the Arena for all Rangers Events, and (b) except as provided below, Licensor shall have sole discretion to control the manifest and determine the license fees to be paid for the Suites, The Loft, the Madison Club and similar premium spaces developed in accordance with Section 5.03 and Section 5.04 during the Term. There shall be no limit on the number of complimentary Tickets the Rangers may issue.

**Section 5.02 <u>Ticket Revenues</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Ticket Sales</u>. The Rangers shall have the exclusive right to sell and resell all Tickets and retain all revenues from all Ticket sales and resales, including the Facility Ticket Fee (as defined in Section 5.02(c)), the Rangers' share of any Convenience Fee (as defined in Section 5.06(a)), and any personal seat licenses the Rangers may elect to sell, provided, that the Rangers right to sell personal seat licenses shall be limited to Rangers Events only (and no Other Arena Events) and provided further, that any "form" agreement for the sale or licensing of personal seat licenses shall be subject to Licensor's prior approval, not to be unreasonably withheld, conditioned or delayed, and the Rangers shall not make any material alterations to such form agreement that adversely impact Licensor without Licensor's prior written approval, not to be unreasonably withheld, conditioned or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Loaded-Value Tickets</u>. To the extent that the Rangers offer a ticket product with which the ticketholder is entitled to *gratis* Concessions in addition to seating to a Home Game, Licensor shall provide such Concessions and the Rangers shall remit to Licensor the actual retail value of any Concessions redeemed by each such ticketholder, which revenue will be included in Team Merchandise revenue (to the extent that the sale/redemption relates to Team Merchandise) or F&B Concessions Gross Receipts, as applicable. To the extent that the sale/redemption relates

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to Non-Team Merchandise, Licensor shall retain all such redeemed amounts. For purposes of clarity, any revenue associated with loaded-value tickets that is not redeemed for Concessions shall remain the property of the Rangers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Facility Ticket Fee</u>. The Rangers shall charge to all primary Home Game Ticket purchasers a per-Ticket facility fee (the "**Facility Ticket Fee**"), in an amount determined from time to time by Licensor following consultation with the Rangers. The Facility Ticket Fee will generally be applied consistently to tickets for Other Arena Events and Home Games, provided that (a) the Rangers may charge a higher or lower Facility Ticket Fee for Home Games with Licensor's approval (not to be unreasonably withheld, conditioned or delayed), and (b) the Rangers shall have the option, without Licensor's approval, not to charge a Facility Ticket Fee to season ticketholders (including holders of full and partial season packages), group ticketholders, suite pass holders or with respect to any complimentary tickets.

**Section 5.03 <u>Suites;</u> <u>Madison Club; The Loft</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Suites</u>. Subject to other provisions of this Section 5.03, Licensor shall have the exclusive right to license Suites to third parties for all or a portion of Rangers Events and Other Arena Events and collect license fees for the privilege of using the Suites and related amenities. Licensor shall be responsible for all costs of licensing, operating, servicing and maintaining the Suites in accordance with the Standard. Revenues generated from the licensing of Suites shall be allocated as set forth in Section 5.03(b). All of the terms and conditions of such licenses and appurtenant Arena admission tickets and other rights and obligations related to the occupancy of Suites shall be governed by separate agreements (each, a "Suite Agreement") entered into between Licensor and the licensees of Suites. Licensor's "form" Suite Agreements shall be subject to the prior written approval of the Rangers (not to be unreasonably withheld, conditioned or delayed), and Licensor shall not make any material alterations to the form Suite Agreements or any executed Suite Agreement that adversely impact the Rangers without the Rangers' prior written approval, not to be unreasonably withheld, conditioned or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Suites Revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *All-Event Suites*. For Suites licensed for all or substantially
all Arena events including Home Games (other than certain major Other Arena Events, including All-Star Games, awards shows, major college championship events, etc.), including those sold on a half-share,
quarter-share or other fractional portion basis, the Rangers shall receive 32.5% of all revenues collected or received by Licensor from the sale of such Suites (the "**Rangers Suites Revenue Share** "), net of contracted catering credits
(if any), taxes and credit card fees, and Licensor shall retain the remaining amounts, except as provided in Section 5.03(g) and 6.01(a) (e.g., if a Suite Agreement includes a license fee of $1,100,000 and a contracted catering credit of
$100,000, Rangers receive as its share of the license fee $325,000 (($1,100,000 -$100,000) x 32.5%). In the event of a No Fault Occurrence, the Rangers Suites Revenue Share shall be increased to 40.5%.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Team-Only and Single Game Suites*. The Rangers shall receive all revenues collected or received by
Licensor from the sale of Suites licensed only for individual or packages of Home Games and/or other Rangers Events, net of the retail value of food and beverage packages included in the license fee ("Included F&B Packages"),
contracted catering credits (if any), taxes and credit card fees, less a Licensor commission of 25% of such net revenue (provided that, in the event of a No Fault Occurrence, the Parties will agree on an appropriate reduction to such commission to
account for any reduction in the additional amount that would have been payable to the Rangers under the last sentence of <u>Section</u> <u>5.03(b)(i)</u> if all Suites were sold for all Arena events).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Custom Team and Non-Team Suite Packages*. For customized Suite
packages (*i.e.*, a pre-determined mix of events that include Rangers Events and Other Arena Events), revenues shall be proportionally allocated to each event included in such package based on the
then-applicable rate card for the included events. The Rangers shall receive all revenues collected or received by Licensor attributable to the Rangers Events included in such package, net of Included F&B Packages, contracted catering credits
(if any), taxes and credit card fees, to the extent used during Rangers Events, less a Licensor commission of 25% of such net revenue as so allocated (provided that, in the event of a No Fault Occurrence, the Parties will agree on an appropriate
reduction to such commission to account for any reduction in the additional amount that would have been payable to the Rangers under the last sentence of <u>Section</u> <u>5.03(b)(i)</u> if all Suites were sold for all Arena events).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *Suite Passes for Rangers Events*. Notwithstanding the foregoing, all revenues from the sale or license of
passes for incremental admission to Suites for Rangers Events (commonly known as "suite passes"), net of taxes and credit card fees, shall be retained by the Rangers. The parties shall agree on the terms and pricing of such suite passes,
which shall be sold by Licensor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) *Catering Credits.* Any contracted catering credits or Included F&B Packages granted to a Suite
licensee as part of a Suite license shall be included in Catering Gross Receipts as and to the extent used during Rangers Events. Any contracted catering credits or Included F&B Packages granted to a Suite licensee as part of a
(x) single-game or Team-only package or (y) customized Suite package including Rangers Events and Other Arena Events (as described in Section 5.03(b)(iii)) shall be subject to the prior written approval of the Rangers, such approval
not to be unreasonably withheld, conditioned or delayed. With respect to any contracted catering credits or Included F&B Packages granted to a Suite licensee as part of any suite package containing a mix of Team and
non-

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Team events, Licensor shall ensure that such contracted catering credits or Included F&B Packages have the same terms and conditions, at the Suite licensee's discretion, at both Team Events and Other Arena Events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Suite 16</u>. The Rangers acknowledge that Suite 16 on the tenth floor of the Arena is currently licensed to the TAO Group, in which Licensor's parent company has a majority ownership interest. The Rangers agree that notwithstanding Licensor's ownership interest in the TAO Group, the Rangers' share of the license revenue for this suite shall be calculated based on the fees paid or payable to Licensor by the TAO Group, and not with respect to any membership or other revenue or income generated by the TAO Group, provided that such fees are established and maintained on an arms-length basis (it being acknowledged that the fee payable by the TAO Group to Licensor for the twelve-month period ended June 30, 2019 is arms-length for purposes of this Section 5.03(c)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Madison Club and The Loft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Certain clients will pay Licensor membership fees that entitle them to access (a) the 170-seat defined hospitality and seating space on the west side of the Arena currently known as the "Madison Club" during all Home Games and all Knicks Games, boxing, tennis, and NCAA college basketball
events at the Arena (the "**Madison Club** "); and/or (b) the 48-seat defined hospitality and seating space on the east side of the Arena currently known as "The Loft at Madison Square
Garden" during all Arena events including Home Games (other than certain major Other Arena Events, including All-Star Games, awards shows, major college championship events, etc.) ()"**The Loft** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Licensor shall be responsible for selling and servicing Madison Club and Loft memberships and operating,
maintaining and servicing the Madison Club and The Loft in accordance with the Standard. The Rangers shall receive 32.5% of all revenues collected or received by Licensor from the sale of memberships to the Madison Club and The Loft, net of taxes
and credit card fees (the "**Rangers Hospitality Share** "). The Rangers shall reimburse Licensor for (a) the direct cost of providing complimentary food and beverage, and (b) the cost of other direct event variable labor
(e.g., concierge, coat check, etc.), other than labor related to Concessions that are sold, attributable to the Madison Club and The Loft for Home Games, in each case under (a) and (b), which costs shall be consistent for all events and on a
basis as determined in consultation with the Rangers. Schedule 5.03(d) sets forth the staffing levels for the Madison Club and The Loft as of the 2019-20 Season (which takes into account the services provided
for the Madison Club and The Loft as of the 2019-20 Season). For all Home Games and similar (based on factors including expected attendance) Other Arena Events, Licensor shall maintain substantially similar
levels of service and staffing (as set forth on Schedule 5.03(d)), provided that the Parties

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shall regularly coordinate and discuss with one another the appropriate levels of service and staffing and accommodate the other's reasonable requests for adjustment thereto. In the event of a No Fault Occurrence, the Rangers Hospitality Share shall be increased to 40.5%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To the extent that Licensor sells specialized packages that are different from those referenced in Sections
5.03(d)(i)-(ii) above, the parties shall coordinate and agree on appropriate pricing, revenue share and/or commissions. To the extent that Licensor provides members of the Madison Club and/or The Loft with limited amount of *gratis* Concessions
(e.g., through a loaded ticket) ()"**Gratis Concessions** "), the Parties shall coordinate and mutually agree on appropriate terms, costs and revenue allocations for such Gratis Concessions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) All of the terms and conditions of the sale of such memberships shall be governed by separate agreements (the
"Hospitality Agreements") entered into between Licensor and the members of the Madison Club and The Loft. Licensor's "form" Hospitality Agreements shall be subject to the prior written approval of the Rangers (not to be
unreasonably withheld, conditioned or delayed) and Licensor shall not make any alterations to such form Hospitality Agreement or any executed Hospitality Agreement that materially adversely impact the Rangers without the Rangers' prior written
approval, not to be unreasonably delayed or withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Sales by the Rangers</u>. Licensor may from time to time authorize the Rangers to attempt to license or sell on Licensor's behalf the Suites or memberships referred to in this Section 5.03. For purposes of clarity, the Parties agree that the revenue sharing referred to in this Section 5.03 shall apply whether the license or sale is consummated by Licensor, Rangers or MSG Sports' employees; provided that, if the license or sale is of Team-only or single game Suites (as described in <u>Section</u> <u>5.03(b)(ii))</u> or custom Team and non-Team Suite packages (as described in <u>Section</u> <u>5.03(b)(iii))</u> and is consummated by the Rangers or MSG Sports, Licensor's commission on such license or sale shall be 20% of the applicable net revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Settlement</u>. Licensor shall remit to the Rangers on a monthly basis a cash payment equal to the Rangers' share of revenues collected or received for the Suites, the Madison Club, The Loft (and any similar premium spaces developed during the Term in accordance with Section 5.04), in each case, in accordance with Section 9.06. To the extent that Licensor receives value in kind as payment for the sale of licenses or memberships to the Suites, the Madison Club or The Lofts, Licensor shall pay to the Rangers an amount based on the rate card value of such license or membership (e.g., if Licensor receives value in kind as full payment for an all-Event Suite, Licensor shall pay the Rangers the Rangers Hospitality Share of the rate card value of such Suite license). Licensor shall be responsible for the payment of all taxes and credit card fees with respect to all sales made by Licensor or its agents pursuant to this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Complimentary Suites and Usage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Rangers shall have the right to use without payment of a license fee one (1) Event Level Suite or a
comparable suite product for each Rangers Event. Licensor shall determine the location of such Suite based on availability and sales levels and prospects, provided that the Rangers shall initially be permitted to use what is currently designated
Event Level Suite 20.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Rangers may not license to third parties the Suite or associated tickets referred to in subsection (i),
provided that it may request Licensor to attempt to license or sell such Suite or associated tickets for a particular Home Game or Home Games and/or Other Rangers Events. Any resulting revenue, net of Included F&B Packages, contracted catering
credits (if any), taxes and credit card fees, will be shared by Licensor and the Rangers as if it were a single-game suite license pursuant to Section 5.03(b)(ii). Licensor may use or license such Suite or associated tickets for Other Arena
Events without payment to the Rangers of the revenue share otherwise attributable to the license of Suites set forth in Section 5.03(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Upon request by the Rangers, and subject to availability, Licensor shall make available, at no cost, one
(1) Madison-level or Signature-level Suite on a Home Game by Home Game basis solely for use by visiting team owners, executives and their guests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Licensor shall have the right to use one (1) Event Level Suite for all Rangers Events and Other Arena
Events without payment to the Rangers of the revenue share otherwise attributable to the license of Suites set forth in Section 5.03(b). Notwithstanding the foregoing, to the extent Licensor decides to license such Event Level Suite in whole or
in part to a third party and receives a license fee therefor, the Rangers shall receive their applicable revenue share (if any) as provided in Section 5.03(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Unsold Suite, Madison Club and Loft Inventory</u>. Suites and associated tickets related to the Suites, the
Madison Club and the Loft that are not licensed or sold for Home Games may be used by Licensor for prospecting for Suite, Madison Club and Loft licensees. Additional unsold Suite, Madison Club and Loft inventory may be used to provide for
complimentary attendance by employees of the Rangers, Licensor and their respective Affiliates or for other business relationships in accordance with each company's complimentary ticket program. The Parties shall mutually determine how to
allocate unsold suite inventory between the Parties, provided, that if the Parties cannot agree, seventy-five percent (75%) of such inventory shall be available to the Rangers for such purposes and twenty-five percent (25%) of such inventory shall
be retained by Licensor for such purposes. In no event may the unused Suites or associated tickets related to Suites, Madison Club or Loft allocated under this <u>Section</u> <u>5.03(g)(v)</u> be licensed or sold by either Party, without
the consent of the

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other Party (not to be unreasonably withheld, conditioned or delayed), in which case the Rangers shall receive their applicable revenue share as provided in <u>Sections 5.03(b)</u> or <u>5.03(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Suite 200</u>. Licensor shall maintain the executive lounge currently designated "Suite 200" (or a private hospitality area of substantially similar size offering substantially similar amenities, in the same or a different location in the Arena) for the use of senior executives and their invited guests ("**Suite 200**"). The Rangers shall have access to Suite 200 during Home Games in a manner consistent with past practice and shall bear or reimburse Licensor for all out-of-pocket costs associated with operating Suite 200 for Home Games. Any annual increase to the aggregate costs charged to the Rangers for operating Suite 200 shall not exceed 3% without the Rangers prior written approval, not to be unreasonably withheld, conditioned or delayed. The Rangers agree that senior executives of Licensor and their invited guests shall have complimentary access to Suite 200 during Home Games on the same basis as senior executives of the Rangers and their invited guests.

**Section 5.04 <u>Future Ticket and Premium Products</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Licensor, after consultation with and receipt of prior written approval from the Rangers (such approval not to be unreasonably withheld, conditioned or delayed), may develop after the Commencement Date new seating products where the ticket purchaser has the option to purchase seats for multiple event types (e.g., Home Games and Other Arena Events). If the Rangers approve such new seating products, the Rangers shall provide the required ticket inventory, and Licensor shall provide applicable amenities, at prices and other economic terms and splits to be negotiated and agreed upon by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Licensor, after consultation with and receipt of prior written approval from the Rangers, such approval not to be unreasonably withheld, conditioned or delayed, may develop after the Commencement Date new suites and/or seating products (e.g., new or altered premium spaces) where amenities additional to admission are provided to the ticket purchaser, licensor or member. In such event, allocation of capital and operating expenses, revenues and obligations shall be determined in a manner to be agreed upon.

**Section 5.05 <u>Box Office; Ticket Printing; In-Arena Ticket Sales</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Box Office Operations</u>. If Licensor generally operates a box office (including will call support) for Other Arena Events, Licensor will also operate a box office (including will call support) during reasonable business hours, and for all Rangers Events commencing at the earlier of (i) noon and (ii) the opening of the Arena doors for the applicable Rangers Events and ending no earlier than the commencement of the third period of the Rangers Events, and shall provide substantially equivalent service and staffing, with respect to the sale of tickets for Home Games and Other Rangers Events as to Other Arena Events all in a manner consistent with past practice, provided that the Parties shall regularly coordinate and discuss with one another the appropriate levels of service and staffing, sales strategies and priorities and accommodate the other's reasonable requests for adjustment thereto. At the Rangers' request, Licensor shall share with the Rangers all Customer Data (as defined in Section 10.03) relating to the Rangers that is generated through box office operations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Full and Partial Season Ticket Packages</u>. If requested by the Rangers, and for so long as Licensor is generally printing tickets for Other Arena Events, Licensor shall coordinate, at the Rangers' reasonable direction, cost and expense, the printing of Tickets for full and partial season packages. The Rangers shall sell, invoice and collect all revenues from such Ticket packages, in its sole discretion. The Rangers shall be responsible for all credit card fees and other similar charges in connection with the sale of such Tickets. The Rangers shall develop any and all creative content to be included on such Tickets printed by Licensor at the Rangers' request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Group Ticket Packages</u>. If requested by the Rangers, and for so long as Licensor is generally printing tickets for Other Arena Events, Licensor shall coordinate, at the Rangers' reasonable direction, cost and expense, the printing of Tickets for group packages. The Rangers shall sell, invoice and collect all revenues from such Ticket packages, in its sole discretion. The Rangers shall be responsible for all credit card fees and other similar charges in connection with the sale of such Tickets. The Rangers shall develop any and all creative content to be included on such Tickets printed by Licensor at the Rangers' request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>In-Arena Ticket Sales</u>. During Rangers Events, the Rangers shall be permitted to have tables and kiosks on the concourse for the sole purpose of selling season (including partial) ticket and group ticket packages for the Rangers and its Affiliates. The placement of such tables and kiosks shall be reasonably determined by Licensor consistent with past practice.

**Section 5.06 <u>Ticket Agent</u>**.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Ticket Agent Agreements</u>. The Rangers shall be required to utilize and comply with the current primary and secondary ticket provider agreement(s) with Licensor's ticket agent (the "**Ticket Agent**"), and any amendment, modification or replacement of the same in accordance with Section 5.06(b), (the "**Ticket Agent Agreements**") for applicable Ticket transactions for Home Games and any Other Rangers Events to which tickets are sold. It is understood that a portion of any upfront or annual fees received by Licensor from the Ticket Agent during the Term shall be allocated to the Rangers on a pro rata basis on equitable terms (e.g., based on projected ticket sales for the businesses covered by the Ticket Agent Agreements). It is further understood that the Rangers may establish in its discretion, following consultation with Licensor, the level of "convenience fees" or other fees to be imposed on Tickets for Rangers Events pursuant to the Ticket Agent Agreements ("**Convenience Fees**") and to retain as Rangers Ticket revenue hereunder all amounts collected in connection therewith subject to the provisions of the Ticket Agent Agreements that provide for a portion of such fees to be paid to the Ticket Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Amended or Replacement Ticket Agent Agreements</u>. Licensor shall have the right to negotiate and administer any amendments to the current Ticket Agent Agreements or any replacement ticket provider agreement with a third party, provided that, (i) any portion of such amendment or replacement agreement that relates to the Rangers or Rangers Events or (ii) any renewal or extension of the current Ticket Agent Agreements or any replacement ticket provider

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agreement, in each case, shall be subject to the prior written approval of the Rangers. If the Rangers do not grant such approval, the Rangers may enter into its own ticket provider agreement(s), provided that the Rangers or such other ticket provider shall pay all costs needed to implement such other ticketing systems at the Arena.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Access to Systems and Data</u>. Licensor shall use commercially reasonable efforts to (i) include in its Ticket Agent Agreements an obligation to provide the Rangers with substantially similar access to relevant information about the Rangers' customers and sales activity that resides in the Ticket Agent's database and other system components as are provided under Licensor's current agreement with Ticketmaster, (ii) enforce such obligation on behalf of the Rangers at the Rangers' expense and (iii) enforce any other terms of any Ticket Agent Agreements that affect the Rangers at the Rangers' expense; it being understood that, with respect to any agreements where the Rangers are an express party or a third party beneficiary, Licensor shall have no obligations under clauses (ii) or (iii), above.

**Section 5.07 <u>Ticket Settlement Process</u>**. Licensor shall, or shall cause Ticket Agent to, remit to the Rangers all amounts collected in connection with the sale of Tickets on a weekly basis, together with an itemized statement indicating the number and price of each Ticket sold and related fees collected.

**Section 5.08 <u>Access to Tickets</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Complimentary Tickets for Home Games</u>. Licensor shall be afforded access to a pool of complimentary tickets for Home Games throughout the Term, on the following terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The pool shall include (x) the four (4) tickets (lower bowl center) currently used by the Executive
Chairman and CEO of The Madison Square Garden Company and (y) ten (10) additional lower-bowl tickets located in the center 100s sections or lower, or other sections as the Parties may otherwise agree, it being understood that the Parties shall
regularly coordinate and discuss with one another and accommodate the other's reasonable requests for adjustment to the number and location of the "additional" complimentary tickets described in clause (y).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Complimentary tickets may be used by Licensor for its and its Affiliates' employees or other business
purposes but may not be resold. If such complimentary tickets will not be used, such tickets may be sold by the Rangers and the Rangers may retain all revenue therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Pools of Tickets for Purchase</u>. The Rangers shall be afforded access to purchase tickets from a pool of tickets for Other Arena Events, and Licensor shall be afforded access to purchase tickets from a pool of tickets for Home Games, in each case subject to availability. Such tickets may be used by the Rangers or Licensor (as applicable) for their Affiliates, employees or other business purposes but may not be resold. Each ticket pool shall also be subject to such other procedures, restraints and limitations as may be determined by the Party offering access. In both cases, the Parties shall regularly coordinate and discuss with one another and accommodate the other's reasonable requests for adjustment to the number and locations of the tickets in the pool.

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**Section 5.10 <u>Credentials and Passes</u>**. The Rangers may issue a reasonable number of passes to photo, press and media, staff, visiting teams, performers (e.g., dance teams and intermission performers), League personnel and any other Person, pursuant to the directions of the Rangers from time to time, permitting such selected persons free access to the Arena for Rangers Events and to specified areas of the Arena normally closed to the public; provided, however, that any such issuance is in accordance with League Rules, including, without limitation, the then-prevailing NHL Recommendations for Arena Security and Licensor's Arena safety and security protocols.

**Section 5.11 <u>Admission to Arena</u>**. Licensor shall not grant any spectator admission to the Arena for any Rangers Event unless such spectator has acquired and displays a Ticket or other indicia of admission (e.g., a press or related pass) to such Rangers Event issued by Licensor or the Rangers (or, if applicable, the League) in accordance with this Agreement.

**<u>ARTICLE VI</u>**

**CONCESSIONS** 

**Section 6.01 <u>F&B Concessions</u> <u>and Catering</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Licensor shall have the exclusive right and obligation to operate and manage the sale of F&B Concessions and Catering Services during all Rangers Events in a manner reasonably calculated to maximize profits but subject to providing a positive customer experience in accordance with the Standard and subject to Schedule 6.01. The Rangers shall receive 50% of the Net Profits (as defined in Schedule 6.01) from the sale of F&B Concessions and Catering Services attributable to Rangers Events (the "**Rangers F&B Concessions and Catering Share**"). To the extent Licensor directly manages and conducts the sale of such F&B Concessions and Catering Services, such sales shall be provided in accordance with Schedule 6.01. In the event of a No Fault Occurrence, the Rangers F&B Concessions and Catering Share shall be increased to 58%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event Licensor retains a third party to provide F&B Concessions and/or Catering Services or enters into a lease, license or operating agreement for food and beverage space, in each case, in accordance with Section 6.04 the Rangers shall receive 50% of all amounts received by Licensor (including any annual payments, up-front payments, advances, back-end payments, earn-outs, guarantees, allowances, rebates, refunds, discounts or any other payments or revenues retained by Licensor or its Affiliate) attributable to Rangers Events from any such arrangement or agreement (the "**Third Party F&B Share**"); provided that, with respect to amounts received that cannot be specifically traced to a Rangers Event as opposed to an Other Arena Event, Licensor shall reasonably and fairly estimate the portion of the total amount that is attributable to Rangers Events (which estimate shall be subject to the review and approval of the Rangers, not to be unreasonably withheld, conditioned or delayed) and shall remit to the Rangers the Third Party F&B Share of the portion of such amount. In the event of a No Fault Occurrence, the Third Party F&B Share shall be increased to 58%.

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**Section 6.02 <u>Team Merchandise</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Licensor shall have the exclusive right and obligation, at its sole cost and expense, to operate and manage the sale of Team Merchandise at the Arena (excluding collectibles and game-used items) in a manner reasonably calculated to maximize revenues, but subject to providing a positive customer experience in accordance with the Standard. <u>Schedule 6.02</u> sets forth the service and staffing for the sale of Team Merchandise for Regular Season Home Games as of the 2019-20 Season. Licensor shall maintain at least substantially similar levels of service and staffing for all Home Games provided that the Parties shall regularly coordinate and discuss with one another the appropriate levels of service and staffing and accommodate the other's reasonable requests for adjustment thereto. Notwithstanding anything herein to the contrary, as between the Parties, the Rangers shall have the exclusive right to sell and control the sale of Team Merchandise online and anywhere else (other than at the Arena) and retain all revenue therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Rangers shall source, purchase and own all Team Merchandise it designates for sale at the Arena and consign it to Licensor for sale. Licensor shall be responsible for reasonable storage and inventory control for Team Merchandise. The Rangers shall set the pricing of Team Merchandise. Licensor, at its sole cost, shall offer and sell Team Merchandise, and provide appropriate sales staff and supervision, at points of sale in existing and replacement in-Arena stores and other locations designated or approved by the Rangers (such approval not to be unreasonably withheld, conditioned or delayed), on Home Dates and at other times pursuant to Section 6.02(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Licensor shall retain 30% of revenues, net of taxes and credit card fees, collected by Licensor from the sale of Team Merchandise sold at the Arena by or on behalf of Licensor and remit the remainder to the Rangers, provided that the Rangers shall retain all revenue from any collectibles or game-used items received pursuant to any third-party agreement (e.g., Fanatics). Licensor shall be responsible for the payment of all taxes and credit card fees with respect to all such sales.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Licensor shall dedicate to Team Merchandise designated by the Rangers a minimum of 37.5% of the display space designated by Licensor in consultation with the Rangers (the "**Team Merchandise Allocation**") in the Madison Square Garden Store located in Chase Square and other subsequent stores located within the Arena that do not require an individual to have a ticket to access such store. It is understood and agreed that the Rangers and the Knicks (to the extent that they remain affiliated entities) may allocate display space to each other on an event-by-event and day-by-day basis; for the avoidance of doubt, Licensor shall not have access to more than 25% of the display space in the Madison Square Garden Store, except as provided in subsection (e), below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Licensor and the Rangers agree that no Team Merchandise shall be required to be offered in such stores (or elsewhere in the Arena) while the Arena is being used for Other Arena Events.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Parties shall regularly coordinate and discuss with one another the appropriate relative levels and locations of display space and accommodate the other's reasonable requests for adjustment thereto.

**Section 6.03 <u>Non-Team Merchandise</u>**. Subject to Section 6.02, Licensor shall have the exclusive right to control the operation and sale of Non-Team Merchandise at the Arena at any time. Licensor shall retain all revenue from the sale of all Non-Team Merchandise. Licensor may use up to 10% of the display space in concourses and other ticketed areas during Home Games for the sale of Non-Team Merchandise, provided that such merchandise and the locations in which it is displayed and sold shall require the approval of the Rangers, not to be unreasonably withheld, conditioned or delayed. The Parties shall regularly coordinate and discuss with one another the appropriate relative levels and locations of display space and accommodate the other's reasonable requests for adjustment thereto.

**Section 6.04 <u>Third-Party Contracts</u>**. Licensor shall have the right to enter into a contract or contracts with one or more third parties pursuant to which such third parties shall conduct and manage the sale of some or all Concessions and/or Catering Services, provided that Licensor shall be required to obtain the prior written approval of the Rangers, not to be unreasonably withheld, conditioned or delayed, for service providers that (i) do not or will not provide similar services during Other Arena Events or (ii) will conduct or manage the sale of a majority of F&B Concessions or Team Merchandise. Notwithstanding the foregoing, Licensor shall reasonably consult with the Rangers regarding the terms of any proposed agreement with any third party that shall conduct or manage the sale of a majority of F&B Concessions or Team Merchandise.

**Section 6.05 <u>Operation on a Fair Basis; Standard of Service</u>**. Licensor shall operate, or contract with a third party for the operation of, Concessions and/or Catering Services on a basis that is fair to both Licensor and the Rangers and equivalent for Rangers Events and Other Arena Events. The quality of the service provided for Rangers Events shall be consistent with the Standard.

**Section 6.06 <u>Settlement</u>**. Licensor shall, or shall cause any third party conducting and managing the sale of Concessions and/or Catering Services to, remit to the Rangers all amounts from the sale of Concessions and/or Catering Services that the Rangers are entitled to under this <u>ARTICLE VI</u> in accordance with Section 9.06.

**<u>ARTICLE VII</u>**

**SIGNAGE AND SPONSORSHIPS** 

**Section 7.01 <u>Definitions</u>**.

"**Arena Game Shared Sponsorship Assets**" means Advertising (including digital and fixed signage) visible or audible inside the Arena during Home Games and Other Arena Events, but expressly excluding Team Sponsorship Assets, and Arena Naming Rights, which includes,

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without limitation, (a) bridge signage and entitlements, (b) vomitorium signage, (c) GardenVision underbelly and other fixed signage and Advertising on fixtures and equipment, (d) Advertising at concession areas and on Concession Items, (e) Advertising worn or carried by concessionaire personnel or other personnel engaged in the operation of Arena events and (f) naming rights and other entitlements of the lobby, concourses, suite levels, clubs and all other spaces in the Arena. For avoidance of doubt, Arena Game Shared Sponsorship Assets shall not include any Advertising (i) outside of the building entrances to the Arena (e.g., marquee spots or signage, outdoor digital board Advertising, breezeway signage or banners, Arena rooftop signage, etc.) which is not visible or audible inside the Arena bowl and sold to be visible or audible by seated Arena patrons, which Licensor shall have the exclusive right to sell and retain all revenue from or (ii) that is a Team Sponsorship Asset, which the Rangers shall have the exclusive right to sell and retain all revenue from in accordance with Section 7.02, whether or not such Advertising may also be visible or audible inside the Arena during Other Arena Events.

"**Arena Naming Rights**" means the right of a sponsor to have its brand integrated into the name of the Arena, e.g., the "J.P. Morgan Madison Square Garden".

"**In-Bowl Variable Advertising**" means Advertising and other visual signage appearing on, and other audio airing through or in connection with, (a) in-Arena electronic scoreboards, telescreens and any other message boards, (b) in-Arena LED Signage, (c) any part of the Arena spectator bowl through projection technology, augmented reality and/or virtual reality, and (d) Arena audio or visual public address Advertising.

"**Non-Team Sponsorship Assets**" means Advertising controlled by Licensor to the extent that it creates no direct association with the Team, other than Team Sponsorship Assets, Arena Naming Rights and Arena Game Shared Sponsorship Assets.

"**Rinkside Advertising**" means electronic, virtual, and static Advertising displayed at Rangers Events that appears inside the Arena spectator bowl on: (a) seat back sleeves and other signage within the teams' bench areas (e.g., sports drink-branded coolers, cups, squeeze bottles, and towels); (b) on or under the ice; (c) on dasherboards and plexiglass surrounding the ice hockey rink; (d) any moving or movable items (e.g., shovels, brooms and other ice-cleaning equipment, an indoor blimp/drone, t-shirt machines, the Zamboni ice machine); (e) within the penalty box; (f) between the team benches; (g) presentation of the "Rangers Blue Crew" (or other pep squad); (h) seat back sleeves in stands that are present for Home Games or Other Rangers Events only; (i) any other Advertising provided under and subject to the NHL's "Line of Sight Guidelines" and any other applicable League Rules; and (j) any other equipment, fixtures and items used by the Rangers in the vicinity of the ice hockey rink not already covered in the definition of Team Sponsorship Assets.

"**Sponsorship Sales and Service Representation Agreement**" means the agreement between Licensor's affiliate, MSG Entertainment Group, LLC ("MSGE") and the Rangers, entered into approximately contemporaneously herewith, whereby the Rangers authorizes MSGE to enter into sponsorship agreements that include Team Sponsorship Assets.

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"**Team Sponsorship Allocation Agreement**" means the agreement between MSGE and MSG Sports, entered into approximately contemporaneously herewith, whereby MSG Sports agrees to deliver certain Team Sponsorship Assets in connection with certain current sponsorship agreements, and MSGE agrees to allocate and pay to the Rangers certain amounts with respect to such agreements.

"**Team Sponsorship Assets**" means, with respect to the Rangers or Rangers Events only (in each case, including within three (3) hours before, during and within two (2) hours after each Rangers Event), (a) Rinkside Advertising; (b) In-Bowl Variable Advertising; (c) Advertising on Team programs, schedules, yearbooks and tickets; (d) GardenVision underbelly and other fixed signage and Advertising on fixtures and equipment; (e) Advertising relating to the player introduction tunnel (connecting locker room area to rink); (f) Advertising relating to Team game day contests and promotions (e.g., bobblehead night, hat night, puck-night, etc.); (g) Advertising that has been sold specifically with respect to only the Team (e.g., temporary Arena bowl stair signage present only for Rangers Events); (h) concourse activations (i) Advertising relating to the Team and visiting team player locker rooms, training rooms and interview rooms; (j) the exhibition and promotion of products and services at the Arena (e.g., kiosks and special areas in the concourse) during Rangers Events or on any date in which a Rangers Event is scheduled to the extent pertaining to any Rangers Event (but excluding food and beverage and merchandise otherwise covered by this Agreement); (k) promotional or premium item give-aways at Rangers Events; (l) such other Advertising and sponsorship assets as currently exist or may later be developed that are Team- or Rangers Event-specific; and (m) for the avoidance of doubt, all other advertising, sponsorship and promotional activity relating to the Team that is not related to the Arena (including advertising on Team uniforms, broadcasts, websites, mobile applications and social media platforms).

**Section 7.02 <u>Team Sponsorship Assets</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to subsections (b)-(e) of this <u>Section</u> <u>7.02</u>, the Rangers shall have the exclusive right to sell and retain all revenue from, and shall be responsible for all direct out of pocket costs and expenses related to, the operation and sale of Team Sponsorship Assets, including the right to enter into category-exclusive sponsorship agreements with respect to Team Sponsorship Assets. Notwithstanding the foregoing, Licensor shall have the right to (i) alter digital signage platforms at any time (e.g., elimination of LED ring) at Licensor's sole cost and expense, subject to reasonable advance consultation with the Rangers and provided that if such alterations would eliminate or materially alter any Team Sponsorship Assets contained in any agreement under which the Rangers provide or are committed to provide Team Sponsorship Assets as of the date of such alteration, Licensor will provide to the Rangers a replacement asset of equal or greater value (A) reasonably acceptable to the Rangers and (B) if such replacement is not permitted under such agreement, acceptable to the sponsor party to such agreement and (ii) (x) approve, in its sole discretion, any permanent affixed signage in the Arena by the Rangers or (y) approve, such approval not to be unreasonably withheld, conditioned or delayed, any temporary affixed signage by the Rangers on (1) the Arena bowl stairs, (2) level 7 (currently referred to as the "Lexus Level") or (3) the bridge level (currently referred to as the "Chase Bridges") (clauses (1), (2) and (3) collectively, the "**Restricted Signage Areas**"); provided that (A) subject to 7.02(e), temporary

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banners and the like shall not require Licensor approval and (B) if at any time during the Term, Licensor includes, sells or permits any temporary signage (including digital or programmable signage) in the Restricted Signage Areas during Other Arena Events or otherwise, the Rangers shall have the right to include, sell or permit the same type of temporary signage in such Restricted Signage Areas in connection with Rangers Events without Licensor approval (and, for the avoidance of doubt, any such signage shall be considered Team Sponsorship Assets). For the avoidance of doubt, any concourse, lobby or similar activations shall be subject to <u>Sections 4.06(a)</u> <u>and 4.06(b)</u>. Licensor shall provide and maintain the in-Arena signage, assets and other elements associated with Team Sponsorship Assets (to the extent in the control of Licensor) in accordance with the Standard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Parties acknowledge and agree that their rights and obligations under this Section 7.02 shall be subject and subordinate to the Sponsorship Sales and Service Representation Agreement and the Team Sponsorship Allocation Agreement (collectively, the **"Arena Agency Agreements"**), as of the Effective Date and throughout the respective terms of such agreements. Pursuant to such Arena Agency Agreements, the Rangers shall be (i) required to provide Team Sponsorship Assets inventory committed to, and to comply with promotional category exclusivities granted to, certain Licensor sponsors (**"Joint Sponsors"**) in accordance with such Joint Sponsors' respective agreements (each, a "**Joint Sponsorship Agreement**") with Licensor and (ii) entitled to certain allocations of revenue received by Licensor pursuant to such agreements; each of (i) and (ii) as set forth in more detail in the Team Sponsorship Allocation Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to League Rules, the name and logo of any Arena Naming Rights partner or "Marquee"-level sponsor shall be exhibited on Team's home playing surface near Team's center-ice logo at the Arena (with 100% of the allocable revenue therefrom delivered to the Rangers).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Parties shall meet and confer regularly (contemplated to be no less frequently than once per calendar quarter) to discuss in good faith opportunities to maximize the collective value of their sponsorships by combining the sales of Team Sponsorship Assets, Arena Game Shared Sponsorship Assets and/or Non-Team Sponsorship Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything to the contrary contained herein, in no event shall the Rangers cover or interfere with any Arena Game Sponsorship Assets with any temporary, virtual or any other type of signage. Notwithstanding anything to the contrary contained herein, in no event shall Licensor cover or interfere with any Team Sponsorship Assets with any temporary, virtual or any other type of signage.

**Section 7.03 <u>Arena Game Shared Sponsorship Assets</u>**. Licensor shall have the exclusive right to sell all Arena Game Shared Sponsorship Assets, provided that Licensor shall not, without the Rangers' prior written approval, (a) enter into any agreement that includes any Team Sponsorship Assets or (b) enter into any agreement or modify any arena inventory or signage existing as of the date hereof if such agreement or modification would reasonably be expected to (i) cause a breach under any agreement that includes Team Sponsorship Assets, (ii) eliminate, or substantially impair (i.e. effectively eliminate all or most of the value of) any physical Team

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Sponsorship Assets in the Arena or (iii) limit or restrict the Rangers' ability to include Team Sponsorship Assets in any exclusive or non-exclusive advertising or sponsorship agreements, in each case under clauses (i), (ii) or (iii), unless Licensor provides to the Rangers a replacement asset of equal or greater value (A) reasonably acceptable to the Rangers and (B) if such replacement is not permitted under such agreement, acceptable to the sponsor party to such agreement. The Rangers shall not enter into any agreement (and has not as of the Effective Date) that contains Arena Game Shared Sponsorship Assets or would cause a breach under any agreement that includes Arena Game Shared Sponsorship Assets without Licensor's prior written approval. The Rangers shall be entitled to (i) 22.5% of net revenue from the sale of Arena Game Shared Sponsorship Assets (the "**Rangers Arena Game Sponsorships Share**"), i.e., gross revenue therefrom less any of the following paid by Licensor: taxes and applicable fees; and actual out-of-pocket costs for signage fabrication, installation and removal costs; provided that, if (a) an Arena Game Shared Sponsorship Asset is not visible, audible or otherwise present during substantially all Other Arena Events, (b) an Arena Game Shared Sponsorship Asset is not visible, audible or otherwise present for a similar length of time during Other Arena Events and Rangers Events, or (c) such Arena Game Shared Sponsorship Assets does not include substantially all Rangers Events, then, in each instance, the revenues shall be proportionally allocated to each event included in such agreement, in a reasonable manner and as mutually agreed by Licensor and the Rangers, and the Rangers shall receive the appropriate proportional amount of revenues attributable to the Rangers Events (e.g., treatment of the JP Morgan Club, as currently operated). In the event of a No Fault Occurrence, the Rangers Arena Game Shared Sponsorships Share shall be increased to 30.5% (and in the case of any proportional allocation of revenues pursuant to the proviso in the foregoing sentence, the Parties will agree on an appropriate increase in favor of the Rangers to such allocation).

**Section 7.04 <u>Non-Team Sponsorship Assets</u>.** The Rangers shall have no rights whatsoever with respect to Non-Team Sponsorship Assets.

**Section 7.05 <u>Arena Naming Rights</u>.** The Rangers shall be entitled to 17.5% of revenue from the sale of any Arena Naming Rights, excluding any amounts already allocable to the Rangers pursuant to the terms of this Agreement or otherwise.

**Section 7.06 <u>Other Revenue</u>.** The Parties shall discuss in good faith the allocation of other Advertising income, revenues and fees derived from operations at the Arena that are not otherwise provided herein, to the extent attributable to Rangers Events.

**Section 7.07 <u>Signage and Sponsorship Settlement Process</u>.** Licensor shall remit to the Rangers a cash payment equal to all amounts collected or received from the sale of Arena Game Shared Sponsorship Assets and Arena Naming Rights that the Rangers are entitled to under this ARTICLE VII in accordance with Section 9.06.

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**<u>ARTICLE VIII</u>**

**BROADCASTING** 

**Section 8.01 <u>Broadcast Rights</u> <u>and Facilities</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As between the Parties, the Rangers shall own and control all rights with respect to the broadcasts and telecasts of each Rangers Event by any means whatsoever (including, without limitation, radio; over the air, pay-per-view, and basic and pay cable television; and streaming and other forms of electronic and digital media now known or hereafter created) (the "**Broadcast Rights**") and shall retain all revenues in connection with such Broadcast Rights. The Rangers may not authorize or purport to authorize their media rightsholder to include in telecasts or broadcasts of Home Games any "virtual signage" in the Restricted Signage Areas without the prior written consent of Licensor, which consent shall not be unreasonably withheld, conditioned or delayed. For the avoidance of doubt, the foregoing sentence shall not apply to (i) any virtual signage being used as of the 2019-20 Season (i.e., one (1) position on the glass at each end of the ice and one (1) position between the benches) without the prior written consent of Licensor, which consent shall not be unreasonably withheld or delayed or (ii) any League telecasts or broadcasts (including, without limitation, any national and international telecasts or broadcasts) or any visiting team telecasts or broadcasts, with respect to which the Rangers and Licensor each reserve all rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Licensor shall ensure that the press areas, broadcast areas, playing surfaces, Team Areas and Common Areas continue to be wired or otherwise equipped throughout the Term for the production of such broadcasts and telecasts in accordance with League Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Licensor shall cooperate with the Rangers and provide access for the producers of such broadcasts and telecasts to such truck loading docks, camera positions, and other Arena facilities reasonably required for the production of such broadcasts and telecasts in accordance with League Rules, at the Rangers' or its broadcaster's expense. Subject to League Rules, Licensor shall cooperate with and provide access for broadcast and telecast producers acting on behalf of all other duly authorized parties (e.g., opposing teams and the NHL) at such games.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding the foregoing, Licensor retains the right to assign and reassign facilities, locations and spaces for the conduct of broadcasting in a manner consistent with League Rules; provided that Licensor will consult with the Rangers prior to any proposed changes to the locations and spaces for the conduct of broadcasting during Home Games. For example, and without limiting the previous sentence, Licensor is not obligated to continue to provide the rinkside studio, or the studio facilities on the bridge level, in their current locations.

**Section 8.02 <u>Broadcast Renovations</u>**. At the Rangers' written request, Licensor shall make such alterations to the Arena's broadcast facilities and equipment as are reasonably necessary to comply with League Rules, and any broadcast agreements between the Rangers and/or the League and a broadcaster, provided that the Rangers shall be responsible for any upfront and continuing costs related to such alterations.

**<u>ARTICLE IX</u>**

**LICENSOR SERVICES** 

**Section 9.01 <u>General Services</u>**. During the Term, Licensor, at its sole cost and expense (except as otherwise expressly provided herein), shall provide the following services, to and for

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the benefit of the Rangers (and the Arena generally), each in accordance with the Standard ("**General Services**"), provided that the Parties shall regularly coordinate and discuss with one another the appropriate levels and quality of staffing, equipment and service and accommodate the other's reasonable requests for adjustment thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Heating, ventilation, and air-conditioning.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to unavailability due to causes beyond Licensor's reasonable control, utilities, including electricity, gas, steam, chilled water, hot and cold water, lighting, sewer, Wi-Fi (or comparable data delivery pipeline or service) service accessible to Rangers employees and patrons during Rangers Events, telephone and intercommunications equipment, elevators, and escalators.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Lighting equipment and apparatus, including as may be required by League Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Maintenance and repair of the Arena and all of its components in compliance with all applicable governmental laws, ordinances, and regulations and in clean and good condition, subject to ordinary wear and tear, subject to the Rangers' obligation to pay for maintenance and repairs necessitated by Rangers Misuse.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Twenty-four (24) hour per day, year-round protection and security of the Arena and all its facilities (including Team Areas), and all property of the Rangers and Rangers personnel located in the Arena.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Reasonable grounds maintenance and snow and ice removal, including, but not limited to, keeping sidewalks and other areas immediately surrounding the Arena in compliance with all applicable governmental laws, ordinances, and regulations and reasonably free of snow, ice, debris, dirt, litter, and trash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Box office services in accordance with Section 5.05(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Repair and maintenance, in each case in accordance with League Rules, of the playing surfaces and related equipment (including the ice surface, Zambonis, goals, dasherboards, and glass), and all back-up equipment and to the Rangers' reasonable satisfaction in accordance with League Rules, all such costs to be borne or reimbursed by the Rangers, except to the extent repair or replacement is necessitated by the negligence of Licensor or its agents or other parties permitted by Licensor to use the foregoing (e.g., college teams using hockey rink), or required by League Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Without limiting the generality of Section 9.01(h), the Parties agree that Licensor shall own and maintain the "ice plant" and "ice floor" and related equipment supporting the operation of the ice rink but that the Rangers shall bear or reimburse Licensor for the cost of the labor, supplies and equipment required for such operation, including for cleaning the pipes and other ice-system elements and for purchasing and recycling the brine used in the ice system.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) All other services and functions needed to operate, repair and maintain the Arena in accordance with the Standard, including pest control and obtaining and maintaining all necessary licenses and permits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Without limiting any of the foregoing, Licensor shall operate, maintain and improve the Arena in accordance with the Standard at all times throughout the Term.

**Section 9.02 <u>Game Day Services</u>**. In addition to the General Services provided pursuant to <u>Section</u> <u>9.01</u>, Licensor shall provide to and for the benefit of the Rangers, the following day-of-game services on the dates of all Rangers Events, each in accordance with the Standard ("**Game Day Services**"), for which the Rangers shall reimburse Licensor's actual out-of-pocket operating cost (except as otherwise provided in this Agreement (e.g., operation of Suites, Advertising, Concessions and General Services)) without markup or overhead, as the same may be adjusted pursuant to Section 9.04:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Set-up of playing surfaces for the Rangers' use on Home Dates (and for Other Rangers Events), by or before the time required in Section 4.02(a), in accordance with League Rules, and subject to the Rangers' reasonable satisfaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Operating in-house broadcast production facilities in the Arena in accordance with Article VIII (currently known as "GardenVision") at a level consistent with past practice, it being understood that the Rangers maintain exclusive rights and remain responsible for providing the direction and production of all game presentation elements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Operating the Arena during and cleaning up the Arena after, a Home Game and Other Rangers Events, including the following event-specific personnel and their successors in name or function: security personnel, building security personnel, street patrol personnel (including supervisors), paid NYPD detail, anti-bomb canines and handlers, ushers, ticket takers, concourse "Directors," elevator operators, restroom attendants, event office administrators, guest experience representatives, guest service supervisors, security supervisors, concourse supervisors, concourse managers, laborers/utility workers, carpenters, electricians, custodial porters, telecommunications technicians, spotlight operators and stagehands (as required based on the production elements for such Home Game or Other Rangers Event), and other necessary labor and third-party services, including overnight labor and supervisors, medical and emergency services staff or contractors and rubbish removal, all in a manner consistent with past practice, but not including game officials, referees, or timekeepers. The Rangers shall only be responsible for the costs relating to the foregoing personnel to the extent allocable to Rangers Events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If requested by the Rangers, Game Day box office personnel incremental to the staffing provided as General Services pursuant to Section 9.01(g) in a manner consistent with past practice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any additional services reasonably requested by the Rangers in writing and approved by Licensor, which approval shall not be unreasonably withheld, conditioned or delayed.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) With respect to all Game Day Services, all costs charged to the Rangers shall be nondiscriminatory and consistent with rates incurred by Licensor for all other events at the Arena.

**Section 9.03 <u>Delta Club and JP Morgan Club</u>**. During Rangers Events, the Rangers shall be permitted to provide certain ticketholders (subject to physical capacity constraints) with access to (a) the club currently known as the Delta Sky 360 Club and (b) the club currently known as the JP Morgan Club (collectively, the "**VIP Clubs**"). Ticketholders who have access to the VIP Clubs shall be entitled to a certain amount of complimentary food and beverage. The Rangers shall have the sole discretion in determining the price charged to ticketholders for access to, as well as the menu offered in, the VIP Clubs, and shall retain all revenues therefrom. Licensor shall operate the VIP Clubs in accordance with the Standard (the "**VIP Club Services**"), for which the Rangers shall reimburse Licensor's actual cost, without markup or overhead, attributable to such Rangers Events.

**Section 9.04 <u>Staffing Levels for Certain Services</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Schedule 9.04 sets forth the staffing levels for Game Day Services, VIP Club Services and Suite 200 for Home Games as of the 2019-20 Season. Licensor shall maintain substantially similar levels of staffing for all Home Games, provided that the Parties shall regularly coordinate and discuss with one another the appropriate levels of staffing and accommodate the other's reasonable requests for adjustment thereto. Licensor shall be responsible for retaining, managing and supervising all personnel in Licensor's provision of the General Services, Game Day Services, VIP Club Services and Suite 200. Licensor shall use reasonable efforts to accommodate the Rangers' reasonable requests with respect to the provision of all Game Day Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Licensor shall not do or fail to do anything that will result in or will cause the Arena not being reasonably fit or otherwise available for use for Home Games in accordance with the League Rules as and when required to enable the Rangers to comply with its obligations under this Agreement.

**Section 9.05 <u>Budgeting and Estimates</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Following reasonable consultation with the Rangers, Licensor shall provide the Rangers with reasonably detailed annual estimates of revenues and expenses by month and Home Game (the "**Annual Budget**") related to Game Day Services, VIP Club Services, Suite 200 and any other revenues to be recouped and expenses to be paid by the Rangers under this Agreement (such costs and expenses, collectively, the "**Rangers Costs**"). The Annual Budget shall be provided at such times as may be reasonably required by the Rangers in accordance with the Rangers' reasonable budgeting and forecasting processes. Upon receipt of the Annual Budget, the Rangers shall have a period of fifteen (15) days to review each estimate and forecast, and identify any objections it has to the Annual Budget. The Rangers and Licensor will then negotiate for a period of fifteen (15) days regarding any disagreements in respect of the Annual Budget. Subject to Section 9.05(b) below, if the Rangers and Licensor are unable to agree with respect to a particular cost within an Annual Budget within such period, the corresponding line item from the most recent approved Annual Budget will control with respect to such line item until such time,

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if any, that the Rangers and Licensor agree on such proposed line item; provided, that: (1) if such line item in the Annual Budget did not appear in the corresponding most recent approved Annual Budget, then Licensor shall not be entitled to payment or reimbursement for expenses in such line item and Licensor shall have no obligation to provide such product or service until the proposed line item is approved by the Rangers (not to be unreasonably withheld, conditioned or delayed); and (2) if such line item appeared in the prior Annual Budget, then Licensor shall be entitled to payment or reimbursement in an amount not to exceed the applicable line item of the prior approved Annual Budget multiplied by 104%. The Annual Budget for the 2019-20 Contract Year is attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, the Rangers agree that it shall have no approval rights over (i) any collectively bargained labor or employment costs or collectively bargained work rates, (ii) any staff or service that is deemed by Licensor, in its reasonable discretion, as necessary to the safety and/or security of any Rangers Event(s) or (iii) costs of goods for any Product purchased from an unaffiliated third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Rangers Costs shall be consistent with the costs incurred for Other Arena Events, it being understood that costs will differ based on the nature and need of the events and circumstances outside of the reasonable control of Licensor (e.g., Force Majeure). The amount payable by the Rangers to Licensor for Game Day Services and VIP Club Services shall be determined on a monthly basis in accordance with <u>Section</u> <u>9.06</u>. The Rangers' consent shall be required for any deviation from the approved Annual Budget and, without such approval, the Rangers shall not be responsible for any costs or expenses in excess of such line items in the approved Annual Budget.

**Section 9.06 <u>Settlement</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Not later than the fifteenth (15th) day of each calendar month, Licensor shall provide the Rangers a report
(" **Monthly Report**") calculating (i) each item of revenue (including any deductions therefrom) that is shared with or allocated or payable to the Rangers in accordance with this Agreement with respect to the immediately preceding
calendar month and (ii) each item of cost or expense incurred by Licensor during the immediately preceding calendar month for which Licensor is entitled to payment or reimbursement (in whole or in part) from the Rangers in accordance with this
Agreement (clauses (i) and (ii) collectively, the "**Applicable Amounts** "). Each Monthly Report shall include a reasonable amount of detail describing each of the Applicable Amounts and copies of ledgers, invoices or other
reasonable evidence of each of the Applicable Amounts. Each Monthly Report delivered by Licensor to the Rangers shall set forth for each Joint Sponsorship Agreement during such Monthly Period, (x) the Revenues under such Joint Sponsorship
Agreement allocated to the Rangers, on the one hand, and Licensor, on the other hand and (y) the Team entitlements (including Team Sponsorship Assets, Tickets, ticket banks, etc. provided to such Joint Sponsor) and Arena entitlements (including Non-Team Sponsorship Assets, Arena Game Shared Sponsorship Assets, Suites, etc. provided to such Joint Sponsor) contributed and their respective rate card values or fair market value (as applicable) under such
Joint Sponsorship Agreement. Licensor shall pay the Rangers the net amount payable under each Monthly Report on or prior to the fifteenth (15<sup>th</sup>) day of each calendar month (i.e., the date in which
the related Monthly Report is required to be provided to the Rangers).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding payment of the net amount under a Monthly Report, the Rangers may reasonably request additional
information regarding such Monthly Report and the Licensor agrees to provide such additional information. The Rangers may dispute any amount in any Monthly Report, except for the License Fee and the percentage of the Rangers' Tax Share (e.g.,
50%). The Parties shall promptly confer to resolve any such areas of disagreement, and each Party shall be entitled to refer any disagreement that cannot be resolved to the Accounting Firm in accordance with Section 9.06(c). Notwithstanding the
foregoing, the acceptance of a Monthly Report (or any portion thereof) and the payment of any amounts in accordance therewith shall be without prejudice to the Rangers' rights to subsequently dispute any Applicable Amounts (including pursuant
to Section 9.06(c) and Section 20.17). Licensor shall pay the Rangers any disputed amounts that it is determined to owe in a Monthly Report within five (5) business days after the dispute is resolved by the Parties or by the
Accounting Firm in accordance with Section 9.06(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding Section 20.06, in the event of a dispute between the Parties with respect to the
determination of any Applicable Amounts, the Parties shall refer such disputed matters set forth in Sections 9.06(a) and 9.06(b) to a mutually agreed upon national independent accounting firm (the "**Accounting Firm** "), and the Parties
shall cooperate with the Accounting Firm to enable such Accounting Firm to resolve the dispute as promptly as practicable. The Accounting Firm shall address only those items in dispute and may not assign a value greater than the greatest value for
such item claimed by either Party or smaller than the smallest value for such item claimed by either Party. In the absence of manifest error, the resolution of disputed items by the Accounting Firm shall constitute an arbitral award that is final,
binding and non-appealable. The costs and expenses of the Accounting Firm incurred pursuant to this Section 9.06 shall be borne by the Rangers, on the one hand, and the Licensor, on the other hand, in
proportion to the allocation by the Accounting Firm of the net dollar amount of disputed matters, such that the prevailing party (or parties) pay a lesser proportion (or none, as applicable) of such costs and expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Licensor will use commercially reasonable efforts to maximize any revenues that are contractually payable to
the Rangers hereunder, including using commercially reasonable efforts to collect such revenues. Notwithstanding anything herein to the contrary, if any revenue payable to a Party by an Affiliate of such Party is subject to sharing with the other
Party hereunder (including, for example, pursuant to <u>Section</u> <u>5.03(c))</u>, such revenue shall be deemed "collected" by the Party to whom it is payable on the earlier of (i) the date on which such revenue is
actually collected and (ii) the date on which such revenue is payable pursuant to the terms of the applicable contract or other arrangement.

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**Section 9.07 <u>Provision of Licensor Services</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Licensor shall have the right to delegate, subcontract, or sublicense to a third party, including Licensor's Affiliates, the provision of Licensor Services and no such delegation, subcontract or sublicense shall relieve Licensor of any of its obligations hereunder; provided that Licensor shall be required to obtain consent of the Rangers (not to be unreasonably withheld, conditioned or delayed) in connection with the delegation, subcontracting, or sublicensing of Licensor Services to any third party service providers that (i) do not or will not provide similar services during Other Arena Events or (ii) will provide, conduct or manage the majority of a particular material Licensor Service. Subject to the preceding sentence, Licensor shall make the final decision regarding the selection of any such third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Licensor shall make reasonable efforts to minimize interference with the Rangers' use of the Arena, and in no event shall Licensor materially interfere with the Rangers' ability to conduct or broadcast Rangers Events or materially reduce or interfere with the Rangers' permitted use of the Arena or ingress thereto or egress therefrom, subject to Licensor's Arena safety and security protocols in accordance with Section 4.06(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For clarity, as between Licensor and the Rangers, the Rangers shall have the right to fully control all Home Game entertainment and hockey operations (including scoreboard and audio operations), with assistance from Licensor's production staff through the applicable General Services and/or Game Day Services.

**<u>ARTICLE X</u>**

**PROMOTION; TRADEMARKS; DATA OWNERSHIP** 

**Section 10.01 <u>Promotional Outlets</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>In-Game Promotion</u>. The Rangers shall provide in the Rangers' game-night communications outlets (e.g., GardenVision features, announcements, in-crowd appearances, etc.), reasonable promotion of Other Arena Events, Licensor's and its Affiliates' other events, venues, charities and businesses and overall promotion for Licensor and its Affiliates ("**Licensor Promotion**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Broadcast Promotion</u>. Licensor shall be permitted to use a portion of the in-game commercial spots, in-game announcer drop-ins and "run-of-schedule" commercial spots made available to Team pursuant to its Media Rights Agreement with MSG Networks for purposes of Licensor Promotion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Licensor Promotional Outlets</u>. The Rangers shall have the sole rights and be solely responsible for, all publicity, public relations, and promotional campaigns for Rangers Events. Notwithstanding the foregoing, to the extent of available inventory and with no out-of-pocket cost to Licensor, Licensor shall include reasonable promotion of the Team and its Rangers Events on the Arena's marketing and communication outlets, including Licensor's and its Affiliates' websites and applications; in-arena signage; the digital marquee facing Seventh Avenue and other Arena exterior digital and non-digital signage.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) At the commencement of the Term, Licensor's use of the Rangers' in-game and broadcast promotional outlets set forth in subparagraphs (a) and (b), and the Rangers' use of the Licensor promotional outlets (the "**Rangers' Promotional Use**") set forth in subparagraph (c), shall each be generally consistent with the allocations set forth on Schedule 10.01, provided that the Parties shall regularly coordinate and discuss with one another their desired promotional efforts, inventory availability and needs and shall accommodate the other's reasonable requests for adjustment to the number and type of assets (including newly-developed assets) to which the other shall have access, and the manner in which they are used. It is understood and agreed that, to the extent that they remain affiliated entities, the Rangers and the Knicks may share the promotional assets granted to them pursuant to their respective license agreements with Licensor.

**Section 10.02 <u>Trademark Licenses</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Rangers hereby grant to Licensor for the Term a non-exclusive royalty-free license to use all Team-related intellectual property owned or licensed by the Rangers, including but not limited to images, likenesses, service marks, tradenames and trademarks (the "**Rangers IP**"), for the purposes of (i) promoting the Arena as the home arena of the Team, (ii) operating the Arena, and (iii) providing the Licensor Services. In all instances Licensor's use of such Rangers IP shall be in accordance with League Rules. Licensor is solely responsible for clearing any third-party rights that may be used in connection with the Rangers IP. Licensor shall not have any right to sublicense, or seek or receive any payments from third parties specifically for the use of, the Rangers IP, except in accordance with ARTICLE VII, it being understood that the license granted hereunder shall include the right for Licensor to promote the Arena as the home arena of the Team in places and in a manner that may also incorporate in an incidental manner promotion of Licensor's marketing partners and sponsors (including, without limitation, use in connection with the Rangers IP any overall Arena marketing partner(s) "lock-up logo" or naming rights, sponsored Licensor web pages and upcoming events promotions, etc.) so long as no association is created between the Rangers and any third party, except in accordance with League Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Rangers shall be required and permitted to reference the Arena as their home venue on all material promoting the Team and ticket sales. In connection therewith, Licensor and its Affiliates hereby grant to the Rangers a non-exclusive royalty-free license to use the trademarks "MADISON SQUARE GARDEN," "MSG," "THE WORLD'S MOST FAMOUS ARENA" and related logos solely for such promotional purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Parties shall mutually agree on an appropriate approval process regarding the use of the other Party's intellectual property in order to maintain quality control standards.

**Section 10.03 <u>Customer Data</u>**. As between the Parties, ownership and access to data relating to customers and prospective customers shall be governed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Team-Owned Data</u>. Any and all customer data and information (including contact information and any other personally identifiable information) ("**Customer Data**") generated,

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developed or collected solely in connection with the sale or marketing of tickets for Home Games and Other Rangers Events and the sale of single-night or multiple-date Suites for Home Games and Other Rangers Events shall, as between the Parties, be owned by the Rangers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Licensor-Owned Data</u>. Customer Data generated, developed or collected solely in connection with Licensor's sale or marketing of (i) non-Team related tickets; (ii) Suites other than Suites for Home Games and Other Rangers Events only; and (iii) memberships to the Madison Club, The Loft and any similar product shall, as between the Parties, be owned by Licensor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Jointly-Owned Data</u>. Customer Data generated, developed or collected in connection with the sale or marketing of any ticket or hospitality product (other than those set forth in subsections (a) and (b) of this Section 10.03) that includes admission to Home Games and Other Arena Events shall be owned jointly by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Data Use and Sharing</u>. Each Party shall, to the fullest extent permitted by law and its privacy policy, share their owned Customer Data with the other Party for use by the other Party and their affiliates, subject to the prior approval in each case by the Customer Data-owning Party, such approval not to be unreasonably withheld or delayed, provided, that any sale or licensing to a third party of Customer Data owned by the other Party is subject to the prior written consent of the Customer Data-owning Party in their sole discretion. Each Party shall use commercially reasonable efforts to ensure that all Customer Data is collected in such a manner that it may be shared with the other Party under this Section 10.03 and applicable law. For purposes of clarity, the Party that is the owner of Customer Data pursuant to this Section 10.03 or otherwise may use such data for any and all purposes, including the sale or licensing of such data to third parties, subject to compliance with applicable law and such Party's privacy policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Confidentiality and Data Protection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Parties agree to establish appropriate safeguards to protect the confidentiality of shared Customer Data
and to prevent unauthorized use, disclosure or access. Specifically, each Party shall implement and maintain an information security management policy with standards that are no less rigorous than accepted industry practices, comply with all
applicable laws to protect the Customer Data from unauthorized access, destruction, use, modification, or disclosure, and comply with the provisions of this Agreement. At a minimum, each Party shall implement physical, technical, and administrative
information safeguards that provide for: (a) protection of business facilities, paper files, servers, computing equipment, including all mobile devices and other equipment with information storage capability, and backup systems containing
Customer Data; (b) network, application (including databases), and platform security; (c) business systems designed to optimize security; (d) secure, encrypted transmission and secure, encrypted storage of Customer Data; (e) a
minimum of two factor authentication and access control mechanisms; and (f) personnel security, including background checks on all such personnel, use of unique, robust

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passwords, and annual training on how to comply with a Party's physical, technical, and administrative information security safeguards. Each Party shall regularly test and monitor the effectiveness of their security practices and procedures relating to the Customer Data, and will evaluate and adjust their information security program in light of the results of the testing and monitoring, any material changes to their operations or business arrangements, or any other circumstances that a Party knows or reasonably should know may have a material effect on their information security program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) As of and following the Effective Date, each Party (the " <u>Affected Party</u> ") shall provide
immediate written notice to the other Party upon discovery or notification (either of the foregoing, " <u>Discovery</u> ") of any (i) unauthorized or unlawful access to, or acquisition, use or disclosure of, Customer Data or
(ii) event which, after Discovery, would lead a reasonable person to conclude that there was, or likely was, unauthorized or unlawful access to, or acquisition, use or disclosure of, Customer Data (either of the foregoing, a " <u>Data Breach</u> "). Such notice shall include (and be supplemented in writing to the other Party on an ongoing basis as reasonably requested by the other Party), to the extent known by the Affected Party and reasonably relevant to such breach:
(i) the general circumstances and extent of any Data Breach or intrusion into the Affected Party's systems that are used to protect, store, process or use Customer Data; (ii) the types and volume of Customer Data involved in the Data
Breach; (iii) the Affected Party's plans for corrective actions to respond to the Data Breach; (iv) the identities of all individuals whose Customer Data was or may have been affected by the Data Breach; (v) steps taken to secure
Customer Data and preserve information for any necessary investigation; and (vi) any other related information reasonably requested by the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Affected Party shall, at its own expense, reasonably cooperate with the other Party in connection with any
notice to third parties of such Data Breach and any other remediation efforts required by applicable law. Without limiting the foregoing, the Affected Party shall, at its own expense, promptly reimburse the other Party for all costs and expenses
(including legal fees) reasonably incurred by the other Party in connection with the Data Breach, including without limitation costs and expenses (including legal fees) reasonably incurred in connection with any notices to third parties or other
remediation efforts required by applicable law. Neither Party will name the other in any press release or other public disclosure without prior written approval, except to the extent required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Affected Party shall use commercially reasonable efforts to detect, respond to and contain vulnerabilities,
activities and other circumstances

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that caused or gave rise to the Data Breach as promptly as reasonably practicable after Discovery and in accordance with industry standards, the provisions of this Agreement and applicable law. Without limiting the foregoing, the Affected Party shall promptly take commercially reasonable corrective actions, and will reasonably cooperate with the other Party in reasonable and lawful efforts to prevent, eradicate, mitigate and rectify such Data Breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Affected Party shall, at its own expense, reasonably cooperate with the other Party in investigating and
responding to each Data Breach, including by (i) providing information and responding to inquiries and (ii) obtaining copies of information, data and records, in each case as reasonably requested by the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To the extent permitted by applicable law and each Party's respective privacy policy, the Parties shall also share with each other the results of fan and guest surveys, focus groups, etc. to the extent the information relates to guests' experiences in connection with Home Games (including customer service, quality of Concessions, cleanliness, game presentation, arriving and departing, etc.).

**<u>ARTICLE XI</u>**

**EXCLUSIVITY COVENANT** 

**Section 11.01 <u>Covenant</u>**. Notwithstanding anything to the contrary contained in this Agreement, including <u>Section</u> <u>20.10</u> with respect to League Rules, the Rangers hereby agree during the Term that the Team shall not play any Home Games in any location other than the Arena, except as provided in <u>ARTICLE XII</u> or <u>Section</u> 20.01. Notwithstanding anything to the contrary contained in this Agreement, the Rangers agree to fully comply with the obligations undertaken by its predecessor Madison Square Garden Center, Inc. under the Property Tax Exemption Agreement as the owner of the Team. Licensor agrees to fully comply and cause full compliance with all other obligations undertaken by its predecessor Madison Square Garden Center, Inc. under the Property Tax Exemption Agreement.

**<u>ARTICLE XII</u>**

**CASUALTY AND CONDEMNATION** 

**Section 12.01 <u>Termination or Restoration Due to Condemnation</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that title to all or substantially all of the Arena or the right of Licensor to occupy or possess all or substantially all of the Arena shall be taken by Condemnation (a "**Total Taking**"), Licensor shall provide prompt notice of such Total Taking to the Rangers, and, except in the case of a Temporary Taking, this Agreement shall terminate and be of no further force upon the earlier of (i) the date when the possession of all or such substantial portion of the Arena or right so taken shall be required for such use or purpose or (b) the effective date of the Total Taking.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of a Condemnation other than a Total Taking, this Agreement shall continue in full force and effect; <u>provided</u>, <u>however</u>, that if any such Condemnation results in an Untenantable Condition (including for this purpose a Temporary Taking that results in an Untenantable Condition for a period in excess of (i) 24 months, or (ii) in the case of any such Temporary Taking that occurs during the last five (5) Contract Years of the Term, 12 months) then each Party shall have the right, in its sole discretion, to terminate this Agreement by notice to the other given within 30 days after the date of the Rangers' receipt of the Estimate (as defined in <u>Section</u> <u>12.05(a)</u>) with respect to such Condemnation, without any further liability hereunder, except for any liability hereunder which, by the specific terms of this Agreement survives termination; <u>provided further</u>, <u>however</u>, that neither Party shall have such termination right if (x) the then applicable legal requirements, zoning laws, building regulations and other governmental or quasi-governmental ordinances, rules or regulations (collectively, "**Governmental Rules**") do not prohibit or materially restrict the performance of the Condemnation Restoration Work (as defined in <u>Section</u> <u>12.01(c)</u>), (y) the Estimated Date (as defined in <u>Section</u> <u>12.05(a)</u>) with respect to such Condemnation shall be a date that occurs on or before the date that is (i) 30 months after the date of such Condemnation, or (ii) in the case of any such Condemnation that occurs during the last five (5) Contract Years of the Term, 12 months after the date of such Condemnation and (z) the remaining portions of the Arena can be restored in a manner as shall satisfy the requirements of the definition of Condemnation Restoration Work. Further, and notwithstanding anything to the contrary contained in the foregoing, if the Estimated Restoration Cost with respect to such Condemnation exceeds 30% of the full replacement value of the portions of the Arena that are not subject to such Condemnation, then Licensor shall have the right, in its sole discretion, to terminate this Agreement by notice to the Rangers given within 90 days after the date of the Rangers' receipt of the Estimate with respect to such Condemnation, without any further liability hereunder, except for any liability hereunder which, by the specific terms of this Agreement survives termination. If either Party terminates this Agreement as provided in this <u>Section</u> <u>12.01(b)</u>, then such termination shall be effective on the date specified in such Party's notice of termination, but no earlier than thirty (30) days after the date of such notice and no later than one hundred eighty (180) days after the date of such notice, as if said date were the date fixed for the expiration of the Term

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If neither party has the right to terminate this Agreement, or if neither party shall timely elect to terminate this Agreement, as provided in paragraph (b) above, Licensor shall, at its sole cost and expense, commence as soon as reasonably practicable and with reasonable diligence proceed to perform the work (the "**Condemnation Restoration Work**") to and repair and restore the part of the Arena not taken to an architecturally complete unit and, to the extent commercially practicable, to substantially its former condition, as and to the extent necessary to remedy the Untenantable Condition, using materials, equipment and construction techniques which are common at the time of such Condemnation and with such changes as may be required by then applicable Governmental Rules or that Licensor may otherwise deem appropriate in each case, in a manner consistent with and as necessary to maintain the Standard; it being agreed, however, that Licensor shall be required to obtain the prior written consent of the Rangers to any changes that are not required by then applicable Governmental Rules and that could materially adversely impact the Rangers' rights or obligations under this Agreement. Licensor shall (i) keep the Rangers reasonably apprised of the progress and the estimated date of completion of the Condemnation

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Restoration Work, and (ii) provide such information as may be reasonably requested by the Rangers from time to time with respect to the progress of such Condemnation Restoration Work. Licensor shall use commercially reasonable efforts (which shall not require Licensor to employ overtime labor or otherwise incur overtime charges) to substantially complete such Condemnation Restoration Work as soon as commercially practicable, but in all events, on or before the Condemnation Outside Date (as defined in <u>Section</u> <u>12.01(d)</u>) applicable to such Condemnation (it being agreed that the Rangers' sole remedy on account of Licensor's failure to substantially complete such Condemnation Restoration Work shall be the rights of the Rangers to terminate this Agreement as provided in paragraphs 12.01(d) and 12.05(b)(iv) below). The Condemnation Restoration Work shall not include the repair and restoration of any of the trade fixtures, personal property or equipment of the Rangers (all of which the Rangers shall repair and restore at its sole cost and expense).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary contained herein, the Rangers shall have the right to terminate this Agreement (without any further liability hereunder, except for any liability hereunder which, by the specific terms of this Agreement survives termination) if the Condemnation Restoration Work required as a result of such Condemnation is not substantially completed by the Condemnation Outside Date applicable to such Condemnation (as such Condemnation Outside Date is postponed pursuant to the below provisions of this Section 12.01(d)), which right may be exercised by the Rangers upon written notice to Licensor given within thirty (30) days after such applicable Condemnation Outside Date but before the substantial completion of the Condemnation Restoration Work; <u>provided</u>, <u>however</u>, that if a Final Revised Estimated Date for such Condemnation shall have been determined pursuant to Section 12.05(b) below, then the Rangers shall have the right to terminate this Agreement pursuant to this Section 12.01(d) (without any further liability hereunder, except for any liability hereunder which, by the specific terms of this Agreement survives termination) only if the Condemnation Restoration Work is not substantially completed by the later to occur of the Condemnation Outside Date applicable to such Condemnation (as such Condemnation Outside Date is postponed pursuant to the below provisions of this Section 12.01(d)) and such Final Revised Estimated Date, which right may be exercised by the Rangers upon written notice to Licensor given within thirty (30) days after the later to occur of such Condemnation Outside Date and such Final Revised Estimated Date, but before the substantial completion of the Condemnation Restoration Work. If Licensor has not completed the Condemnation Restoration Work prior to the date that is 30 days after the giving of such notice by the Rangers (which date shall be postponed by one day for each day that Licensor is actually delayed in substantially completing the Condemnation Restoration Work by (i) any acts or omissions of the Rangers, the League or their respective agents, employees or contractors or (ii) any one or more events of Force Majeure (provided that the maximum period such date shall be postponed due to events of Force Majeure is an additional 90 days)), then this Agreement shall be terminated automatically effective as of such date, without any further liability hereunder, except for any liability hereunder which, by the specific terms of this Agreement survives termination. For all purposes hereof, the "**Condemnation Outside Date**" applicable to any Condemnation shall be determined as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) If the Estimate with respect to the Condemnation Restoration Work required as a result of such Condemnation provides for an Estimated Date that will occur on or prior to the 180<sup>th</sup>

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day after the date of such Condemnation, then the "*Condemnation Outside Date*" applicable to such Condemnation shall be the date that is 90 days following such Estimated Date; <u>provided</u>, <u>however</u>, that such date shall be postponed by one day for each day that Licensor is actually delayed in substantially completing the Condemnation Restoration Work by (i) any acts or omissions of the Rangers, the League or their respective agents, employees or contractors or (ii) any one or more events of Force Majeure (provided that the maximum period such Condemnation Outside Date shall be postponed due to events of Force Majeure is an additional 90 days).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) If the Estimate with respect to the Condemnation Restoration Work required as a result of such Condemnation provides for an Estimated Date that will occur during the period commencing on the 181<sup>st</sup> day after the date of such Condemnation and ending on the 365<sup>th</sup> day after the date of such Condemnation, then the "*Condemnation Outside Date*" applicable to such Condemnation shall be the date that is 90 days following such Estimated Date; <u>provided</u>, <u>however</u>, that such date shall be postponed by one day for each day that Licensor is actually delayed in substantially completing the Condemnation Restoration Work by (i) any acts or omissions of the Rangers, the League or their respective agents, employees or contractors or (ii) any one or more events of Force Majeure (provided that the maximum period such Condemnation Outside Date shall be postponed due to events of Force Majeure is an additional 180 days).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) If the Estimate with respect to the Condemnation Restoration Work required as a result of such Condemnation provides for an Estimated Date that will occur during the period commencing on the 366<sup>th</sup> day after the date of such Condemnation and ending on the 540<sup>th</sup> day after the date of such Condemnation, then the "*Condemnation Outside Date*" applicable to such Condemnation shall be the date that is 90 days following such Estimated Date; <u>provided</u>, <u>however</u>, that such date shall be postponed by one day for each day that Licensor is actually delayed in substantially completing the Condemnation Restoration Work by (i) any acts or omissions of the Rangers, the League or their respective agents, employees or contractors or (ii) any one or more events of Force Majeure (provided that the maximum period such Condemnation Outside Date shall be postponed due to events of Force Majeure is an additional 240 days).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) If the Estimate with respect to the Condemnation Restoration Work required as a result of such Condemnation provides for an Estimated Date that will occur on or after the 541<sup>st</sup> day following the date of such Condemnation, then the "*Condemnation Outside Date*" applicable to such Condemnation shall be the date that is 90 days following such Estimated Date; <u>provided</u>, <u>however</u>, that such date shall be postponed by one day for each day that Licensor is actually delayed in substantially completing the Condemnation Restoration Work by (i) any acts or omissions of the Rangers, the League or their respective agents, employees or contractors or (ii) any one or more events of Force Majeure (provided that the maximum period such Condemnation Outside Date shall be postponed due to events of Force Majeure is an additional 365 days).

**Section 12.02 <u>Termination or Restoration Due to Casualty</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If all or any material portion of the Arena is damaged or destroyed by Casualty such that an Untenantable Condition exists (each, a "**<u>Total Casualty</u>**"), and the Estimate with respect to such Casualty delivered pursuant to <u>Section</u> <u>12.05</u> below indicates that the Casualty Restoration

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Work (defined below) would not reasonably be expected to be substantially completed (i) within 24 months after the occurrence of such Casualty, or (ii) in the case of any Casualty that occurs during the last five (5) Contract Years of the Term, within 12 months after the occurrence of such Casualty, then the Rangers shall have the right to terminate this Agreement without any further liability hereunder, except for any liability hereunder which, by the specific terms of this Agreement survives termination. If the Rangers wish to exercise such right of termination, it shall do so by notice to Licensor given not later than the date that is thirty (30) days after the date of the Estimate with respect to such Casualty under <u>Section</u> <u>12.05</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event there shall occur a Total Casualty and (i) Licensor is prohibited or materially restricted by then applicable Governmental Rules from performing the Casualty Restoration Work, or (ii) the Estimate with respect to such Casualty indicates that the Casualty Restoration Work would not reasonably be expected to be substantially completed (x) within 24 months after the occurrence of such Casualty, or (y) in the case of any Casualty that occurs during the last five (5) Contract Years of the Term, within 12 months after the occurrence of such Casualty, or (iii) the Estimated Restoration Cost with respect to such Casualty exceeds 30% of the full replacement value of the Arena immediately prior to such Casualty, then, and in any of such events, Licensor shall have the right, in its sole discretion, to terminate this Agreement without any further liability hereunder, except for any liability hereunder which, by the specific terms of this Agreement survives termination. If Licensor wishes to exercise such right of termination, it shall do so by notice to the Rangers given not later than the date that is thirty (30) days after the date of the Estimate with respect to such Casualty under <u>Section</u> <u>12.05</u>. If either Party terminates this Agreement as provided in this Section 12.02(b) or in Section 12.02(a) above, then such termination shall be effective on the date specified in such Party's notice of termination, but no earlier than thirty (30) days after the date of such notice and no later than one hundred eighty (180) days after the date of such notice, as if said date were the date fixed for the expiration of the Term

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event of a Casualty with respect to which neither party has the right to terminate this Agreement, or neither party timely elects to terminate this Agreement, pursuant to paragraphs (a) or (b) above, Licensor shall, at its sole cost and expense, commence as soon as reasonably practicable and with reasonable diligence proceed to perform the work (the "**Casualty Restoration Work**") to repair and restore the Arena to substantially its former condition, as and to the extent necessary to remedy the Untenantable Condition, using materials, equipment and construction techniques which are common at the time of such Casualty and with such changes as may be required by then applicable Governmental Rules or that Licensor may deem appropriate, in each case, in a manner consistent with and as necessary to maintain the Standard; it being agreed, however, that Licensor shall be required to obtain the prior written consent of the Rangers to any changes that are not required by then applicable Governmental Rules and that could materially adversely impact the Rangers' rights or obligations under this Agreement. Licensor shall (i) keep the Rangers reasonably apprised of the progress and the estimated date of completion of the Casualty Restoration Work, and (ii) provide such information as may be reasonably requested by the Rangers from time to time with respect to the progress of the Casualty Restoration Work. Licensor shall use commercially reasonable efforts (which shall not require Licensor to employ overtime labor or otherwise incur overtime charges) to substantially complete such Casualty Restoration Work as soon as commercially practicable, but in all events, on or before the Casualty

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Outside Date (as defined in <u>Section</u> <u>12.02(d)</u>) applicable to such Casualty (it being agreed that the Rangers' sole remedy on account of Licensor's failure to substantially complete such Casualty Restoration Work shall be the rights of the Rangers to terminate this Agreement as provided in Section 12.02(d) and 12.05(b)(iv) below). The Casualty Restoration Work shall not include the repair and restoration of any of the trade fixtures, personal property or equipment of the Rangers (all of which the Rangers shall repair and restore at its sole cost and expense).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary contained herein, the Rangers shall have the right to terminate this Agreement (without any further liability hereunder, except for any liability hereunder which, by the specific terms of this Agreement survives termination) if the Casualty Restoration Work required as a result of such Casualty shall not be substantially completed by the Casualty Outside Date applicable to such Casualty (as such Casualty Outside Date is postponed pursuant to the below provisions of this Section 12.02(d)), which right may be exercised by the Rangers upon written notice to Licensor given within thirty (30) days after such applicable Casualty Outside Date but before the substantial completion of the Casualty Restoration Work; <u>provided</u>, <u>however</u>, that if a Final Revised Estimated Date for such Casualty shall have been determined pursuant to Section 12.05(b) below, then the Rangers shall have the right to terminate this Agreement pursuant to this Section 12.02(d) (without any further liability hereunder, except for any liability hereunder which, by the specific terms of this Agreement survives termination) only if the Casualty Restoration Work is not substantially completed by the later to occur of the Casualty Outside Date applicable to such Casualty (as such Casualty Outside Date is postponed pursuant to the below provisions of this Section 12.02(d)) and such Final Revised Estimated Date for such Casualty, which right may be exercised by the Rangers upon written notice to Licensor given within thirty (30) days after the later to occur of such Casualty Outside Date and such Final Revised Estimated Date but before the substantial completion of the Casualty Restoration Work. If Licensor has not completed the Casualty Restoration Work prior to the date that is 30 days after the giving of such notice by the Rangers (which date shall be postponed by one day for each day that Licensor is actually delayed in substantially completing the Casualty Restoration Work by (i) any acts or omissions of the Rangers, the League or their respective agents, employees or contractors or (ii) any one or more events of Force Majeure (provided that the maximum period such date shall be postponed due to events of Force Majeure is an additional 90 days)), then this Agreement shall be terminated automatically effective as of such date, without any further liability hereunder, except for any liability hereunder which, by the specific terms of this Agreement survives termination. For all purposes hereof, the "**Casualty Outside Date**" applicable to any Casualty shall be determined as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) If the Estimate with respect to the Casualty Restoration Work required as a result of such Casualty provides for an Estimated Date that will occur on or prior to the 180<sup>th</sup> day after the date of such Casualty, then the "*Casualty Outside Date*" applicable to such Casualty shall be the date that is 90 days following such Estimated Date; <u>provided</u>, <u>however</u>, that such date shall be postponed by one day for each day that Licensor is actually delayed in substantially completing the Casualty Restoration Work by (i) any acts or omissions of the Rangers, the League or their respective agents, employees or contractors or (ii) any one or more events of Force Majeure (provided that the maximum period such Casualty Outside Date shall be postponed due to events of Force Majeure is an additional 90 days).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) If the Estimate with respect to the Casualty Restoration Work required as a result of such Casualty provides for an Estimated Date that will occur during the period commencing on the 181<sup>st</sup> day after the date of such Casualty and ending on the 365<sup>th</sup> day after the date of such Casualty, then the "*Casualty Outside Date*" applicable to such Casualty shall be the date that is 90 days following such Estimated Date; <u>provided</u>, <u>however</u>, that such date shall be postponed by one day for each day that Licensor is actually delayed in substantially completing the Casualty Restoration Work by (i) any acts or omissions of the Rangers, the League or their respective agents, employees or contractors or (ii) any one or more events of Force Majeure (provided that the maximum period such Casualty Outside Date shall be postponed due to events of Force Majeure is an additional 180 days).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) If the Estimate with respect to the Casualty Restoration Work required as a result of such Casualty provides for an Estimated Date that will occur during the period commencing on the 366<sup>th</sup> day after the date of such Casualty and ending on the 540<sup>th</sup> day after the date of such Casualty, then the "*Casualty Outside Date*" applicable to such Casualty shall be the date that is 90 days following such Estimated Date; <u>provided</u>, <u>however</u>, that such date shall be postponed by one day for each day that Licensor is actually delayed in substantially completing the Casualty Restoration Work by (i) any acts or omissions of the Rangers, the League or their respective agents, employees or contractors or (ii) any one or more events of Force Majeure (provided that the maximum period such Casualty Outside Date shall be postponed due to events of Force Majeure is an additional 240 days).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) If the Estimate with respect to the Casualty Restoration Work required as a result of such Casualty provides for an Estimated Date that will occur on or after the 541<sup>st</sup> day following the date of such Casualty, then the "*Casualty Outside Date*" applicable to such Casualty shall be the date that is 90 days following such Estimated Date; <u>provided</u>, <u>however</u>, that such date shall be postponed by one day for each day that Licensor is actually delayed in substantially completing the Casualty Restoration Work by (i) any acts or omissions of the Rangers, the League or their respective agents, employees or contractors or (ii) any one or more events of Force Majeure (provided that the maximum period such Casualty Outside Date shall be postponed due to events of Force Majeure is an additional 365 days).

**Section 12.03 <u>Condemnation Proceeding and Awards</u>**. Upon commencement of any Condemnation action or proceeding, Licensor and the Rangers shall cooperate with each other, and provide each other with such information and assistance, as each shall reasonably request in connection therewith. Licensor and the Rangers each shall have the right, at its own expense, to appear and to participate in any and all hearings, trials and appeals relating thereto even if this Agreement has been terminated. Subject to the other provisions of this <u>Section</u> <u>12.03</u>, in any Condemnation (x) the Rangers shall have the right to assert a claim against the condemning authority for, and receive from the condemning authority, all Condemnation Awards for, (i) any damage to the Rangers' business or any loss in value of any of the rights granted to the Rangers under this Agreement (if applicable, as if this Agreement had not been terminated), (ii) the value of any of the Rangers' personal property (tangible or intangible) taken or damaged as result of the Condemnation, (iii) any relocation costs of the Rangers' business, and (iv) any other damages to

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which the Rangers may be entitled under any applicable law, ordinance, order or regulation, and (y) Licensor shall have the right to assert a claim against the condemning authority for, and receive from the condemning authority, all Condemnation Awards for, (i) the loss in value of its ownership of and rights in and to the Arena and its other property (tangible and intangible), (ii) any damage to, or relocation costs of, Licensor's business, and (iii) any other damages to which Licensor may be entitled under any applicable law, ordinance, order or regulation. The Parties shall request that all Condemnation Awards be specifically allocated by the applicable condemning authority (it being agreed that Licensor may direct that any such awards allocated to Licensor be paid to any Superior Interest Holder designated by Licensor for such purpose). If any Condemnation Award is not specifically allocated between the Parties by the applicable condemning authority, the Condemnation Award shall be equitably allocated and distributed to Licensor and the Rangers in such manner as the Parties shall mutually agree.

**Section 12.04 <u>Temporary Taking</u>**. If the whole or any part of the Arena or the right of Licensor to occupy or possess the whole or any part of the Arena shall be taken in any Condemnation for a temporary use or occupancy not to exceed an aggregate of 24 months, or in the case of any such Condemnation that occurs during the last five (5) Contract Years of the Term, one (1) year (a "**Temporary Taking**"), the Term shall not be reduced, extended or affected in any way, and neither Licensor nor the Rangers shall be relieved of its obligations under this Agreement, except that (a) the Rangers shall have the right to make a claim against the condemning authority for, and receive from the condemning authority and retain, an award of any damages sustained by the Rangers as a result of such Temporary Taking, and (b) the Rangers' obligation to pay the License Fee shall be abated during periods that the Arena is unavailable to the Rangers for the playing of Home Games in accordance with the terms and conditions of this Agreement.

**Section 12.05 <u>Inability to Timely Restore; Estimate of Time and Cost to Restore</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The determination of the estimated time and costs that are reasonably expected to be necessary to perform and substantially complete any Condemnation Restoration Work or any Casualty Restoration Work shall be made by an independent architect or construction manager that is experienced in arena construction projects, well-regarded in the industry and selected by Licensor and reasonably approved by the Rangers. In the event of any Condemnation or Casualty resulting in an Untenantable Condition, Licensor shall furnish to the Rangers an estimate (the "**Estimate**"), prepared and certified by such independent architect or construction manager (the "**Estimator**") of (i) the estimated date (the "**Estimated Date**") by which the Condemnation Restoration Work or Casualty Restoration Work, as the case may be, will be substantially completed and (ii) the estimated cost (the "**Estimated Restoration Cost**") to perform the Condemnation Restoration Work or Casualty Restoration Work, as the case may be. Licensor shall use commercially reasonable efforts to cause such independent architect or construction manager to make its determination as soon as reasonably practicable (and, in the case of a Casualty, no later than sixty (60) days after the date of such Casualty) and will deliver the Estimate to the Rangers promptly upon Licensor's receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) If, during the performance of the Condemnation Restoration Work or the Casualty Restoration Work required as a result of any Condemnation or Casualty, the Rangers

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reasonably believe that the substantial completion of such Condemnation Restoration Work or such Casualty Restoration Work, as the case may be, will not, absent extraordinary efforts that Licensor does not agree (if not already obligated to take pursuant to this Agreement), be achieved by the applicable Condemnation Outside Date or applicable Casualty Outside Date therefor (as such Condemnation Outside Date or such Casualty Outside Date may have theretofore been postponed pursuant to the provisions of Section 12.01(d) or Section 12.02(d) above, respectively), then the Rangers, by notice given to Licensor and the Estimator, shall have the right (not to be exercised more than once in any six (6) month period) with respect to such Condemnation or such Casualty to request that the Estimator determine the estimated date (the "**Revised Estimated Date**") by which such Condemnation Restoration Work or such Casualty Restoration Work, as the case may be, is then reasonably expected to be substantially completed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Rangers give such notice pursuant to Section 12.05(b)(i) above, then Licensor, within ten (10) business days after its receipt of such notice, shall have the right to submit to the Rangers and to the Estimator a notice that (x) sets forth any information that Licensor reasonably believes is relevant to the determination of the Revised Estimated Date and/or (y) indicates the measures that Licensor intends and agrees to implement in an effort to cause the substantial completion of such Condemnation Restoration Work or such Casualty Restoration Work, as the case may be, to be achieved by the applicable Condemnation Outside Date or the applicable Casualty Outside Date (as such Condemnation Outside Date or such Casualty Outside Date may have theretofore been postponed pursuant to the provisions of Section 12.01(d) or Section 12.02(d) above, respectively). Within ten (10) business days after the Rangers' receipt of Licensor's notice (or, if Licensor does not give such notice, within twenty (20) business days after Licensor's receipt of the Rangers notice given pursuant to Section 12.05(b)(i) above), the Rangers shall have the right to submit to Licensor and the Estimator a notice that sets forth any information that the Rangers reasonably believes is relevant to the determination of the Revised Estimated Date. In determining the Revised Estimated Date, the Estimator shall take into consideration all information and measures set forth in any notices provided by the Parties pursuant to the two immediately preceding sentences, as well as all other relevant factors. Licensor shall use commercially reasonable efforts to cause the Estimator to make its determination of the Revised Estimated Date as soon as reasonably practicable after receipt of the Rangers' notice given pursuant to Section 12.05(b)(i) above and the notices which each Party is entitled to deliver pursuant to this Section 12.05(b)(ii), and Licensor shall deliver such determination of the Revised Estimated Date to the Rangers promptly upon Licensor's receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Each Party shall have the option (the "**Review Option**"), exercised by notice given to the other within ten (10) business days after Licensor delivers to the Rangers the Estimator's determination of the Revised Estimated Date, to require that the Estimator's determination of the Revised Estimated Date be reviewed by another independent architect or construction manager that is experienced in arena construction projects, well-regarded in the industry and mutually selected by the Parties (the "**Second Estimator**"). If the Parties are unable to mutually select the Second Estimator within ten (10) business days after the giving of a notice exercising the Review Option, then either Licensor or the Rangers, by giving ten (10) days' notice to the other, shall have the right to request that the presiding judge of the lowest level court of general jurisdiction for the district in which the Arena is located select the Second Estimator. Licensor shall use commercially

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reasonable efforts to cause the Second Estimator, as soon as reasonably practicable after the selection thereof, to (x) review the Estimator's determination of the Revised Estimated Date, (y) make its own determination of the Revised Estimated Date (which determination shall be made in accordance with the provisions of Section 12.05 (b)(ii) above) and (z) deliver to Licensor written notice indicating whether the Second Estimator agrees with the determination of the Estimator and, if not, setting forth the Second Estimator's determination of the Revised Estimated Date. For all purposes of this Agreement, the "**Final Revised Estimated Date**" shall mean either (a) the Revised Estimated Date determined by the Estimator, if neither Party timely exercises the Review Option or if a Party exercises the Review Option and the Second Estimator agrees with the Estimator's determination of the Revised Estimated Date; or (b) the Revised Estimated Date determined by the Second Estimator, if a Party exercises the Review Option and the Second Estimator disagrees with the Estimator's determination of the Revised Estimated Date and therefore issues its own determination of the Revised Estimated Date. Licensor shall deliver the Second Estimator's written notice to the Rangers promptly upon Licensor's receipt thereof. The fees and expenses of the Estimator and the Second Estimator for the exercise set forth in this Section 12.05(b)(iii) and in Section 12.05(b)(ii) above shall be borne equally by Licensor and the Rangers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If the Final Revised Estimated Date with respect to any Condemnation or Casualty is later than the date that is 365 days after the applicable Condemnation Outside Date or applicable Casualty Outside Date therefor (each of which, for purposes of this paragraph (iv), shall be deemed to be such applicable Condemnation Outside Date or such applicable Casualty Outside as postponed by the maximum number of days by which same may be postponed due to events of Force Majeure pursuant to Section 12.01(d) or Section 12.02(d) above, respectively), then the Rangers shall have the right to terminate this Agreement without any further liability hereunder, except for any liability hereunder which, by the specific terms of this Agreement survives termination. If the Rangers wish to exercise such right of termination, then it shall do so by notice to Licensor given not later than the date that is sixty (60) days after the date on which the Final Revised Estimated Date is determined (it being agreed that the Final Revised Estimated Date shall be deemed determined either as of the date on which the Parties' right to exercise the Review Option shall have lapsed or, if a Party timely exercises the Review Option, as of the date on which the Second Estimator's notice of determination is given to the Rangers). If the Rangers terminate this Agreement as provided in this Section 12.05(b)(iv), then such termination shall be effective on the date specified in the Knick's notice of termination, but no earlier than thirty (30) days after the date of such notice and no later than one hundred eighty (180) days after the date of such notice, as if said date were the date fixed for the expiration of the Term.

**Section 12.06 <u>Replacement Arena</u><u>; Rent Abatement</u>**. In the event of the occurrence of a Condemnation or Casualty that results in an Untenantable Condition but does not result in termination of this Agreement, the Rangers, during the continuance of such Untenantable Condition, shall have the right to use an alternate site for Rangers Events while the Arena is being restored, provided such use fully complies with the requirements of Paragraph 6 of the Property Tax Exemption Agreement, and the Rangers' obligation to pay the License Fee shall be abated during such periods in accordance with Section 20.01.

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**Section 12.07 <u>Intention of the Parties</u>.** The provisions of this Article XII shall be deemed an express agreement governing any case of the Arena or any portion thereof becoming untenantable or unfit for occupancy, and Section 227 of the Real Property Law of the State of New York, providing for such contingency in the absence of an express agreement, and any other legal requirements of like import, now or hereafter in force, shall have no application in such case and are expressly waived by the Parties.

**<u>ARTICLE XIII</u>**

**INDEMNIFICATION** 

**Section 13.01 <u>General Indemnification</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To the extent permitted by applicable law, Licensor and the Rangers shall indemnify, defend and hold harmless the other and its current and future Affiliates, and each of their respective directors, officers, employees, agents, successors and assigns from and against any and all claims, liability, loss, damages (whether actual, incidental, consequential, punitive or otherwise), judgments, settlement expenses, cost and expenses whatsoever, including court costs, reasonable attorneys' fees and related disbursements, with regard to any action, cause of action or claim of any nature (each, a "**Loss**"), in any way arising out of or related to (i) the indemnifying Party's acts or omissions in or about the Arena (except to the extent solely caused by the indemnified Party's negligence or misconduct); (ii) the indemnifying Party's failure to fulfill any duty or obligation hereunder or to comply with applicable law or the obligations applicable to the indemnifying Party in the ADA Consent Decree; or (iii) the indemnifying Party's breach of any representations, warranties or covenants contained in this Agreement. Each Party's indemnity hereunder shall include the acts and omissions of its contractors, licensees, agents and employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting the provisions of Subparagraph 13.01(a), Licensor and the Rangers indemnify the other party for any damage to the property (whether in or about the Arena) of the other party caused by the acts or omissions of the indemnifying party's contractors, licensees, agents, employees and invitees, limited however (for purposes of clarity), in the case of the Rangers, to Rangers Misuse. All repairs to the damaged property of Licensor shall be made by firm(s) designated by Licensor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) While the Parties are Affiliates, Sections 13.01(a) and 13.01(b) shall not restrict the Parties' access to the League's leaguewide insurance policies, to the extent they would otherwise be covered by the terms of such policies.

**Section 13.02 <u>Notice of Claims and Rights to Defend and Settle Claims</u>**. The indemnified Party agrees to serve the indemnifying Party with prompt written notice of any claims which could give rise to the indemnifying Party's indemnity hereunder, and the indemnifying Party and its insurance carrier(s) shall have the right to defend such claims with counsel of their choosing. The indemnified Party shall not settle any claim without the indemnifying Party's (or its insurer's) prior written consent, not to be unreasonably withheld or delayed.

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**<u>ARTICLE XIV</u>**

INSURANCE AND SUBROGATION

**Section 14.01 <u>Rangers Insurance</u> <u>Coverage</u>**. The Rangers shall, from and after the Commencement Date, maintain at its expense in force the following insurance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Property insurance for the full one hundred percent (100%) of replacement cost of all of the Rangers' equipment, improvements, and betterments owned by the Rangers, literary or musical material, and all other properties and materials owned, rented or brought onto the premises by the Rangers. Coverage shall be on an All Risk of physical loss or damage basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Commercial general liability insurance covering against bodily injury and property damage having a limit of not less than $1,000,000 for each occurrence and a limit of not less than $5,000,000 in the aggregate for each occurrence. Coverages shall be in accordance with the ISO form or equivalent. Such insurance shall include, but not be limited to, contractual liability, premises operations, products, completed operations, personal injury, advertising injury, bodily injury and property damage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Liquor liability insurance coverage having limits of not less than $1,000,000 for each common cause and in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Automobile liability insurance coverage for bodily injury and property damage with a combined single limit of no less than $1,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Employer's liability insurance with the following minimum limits: bodily injury by accident - $1,000,000 each accident; bodily injury by disease - $1,000,000 policy limit and $1,000,000 each employee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Umbrella or excess liability coverage, following the terms, conditions, and extensions of coverages, to apply over and above the primary coverages in subsections (b), (c), (d), and (e), in an amount not less than $200,000,000 in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Statutory worker's compensation coverage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Employment practices liability insurance with minimum limits of $10,000,000 per claim;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Media liability policy with limits of no less than $5,000,000 per claim/$5,000,000 aggregate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Disability insurance as required by the State of New York.

The insurance referred to in this Section 14.01, with the exception of property insurance, employment practices liability insurance, worker's compensation and employer's liability coverage, shall name Licensor and its Affiliates and mortgagees, and each of their respective directors, officers, employees, agents, successors and assigns, as additional insureds for claims

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arising in connection with Rangers' operations. Licensor shall also have the right to require the Rangers, from time to time, to increase the scope and limits of any insurance coverage required to be carried herein, so long as such increase is commercially reasonable under the circumstances.

**Section 14.02 <u>Rangers Insurance Requirements</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Rangers shall, at its own expense, obtain and maintain during the Term and if written on a claims made basis for three (3) years thereafter, policies of insurance as required herein written by an insurance carrier(s) reasonably acceptable to Licensor that is authorized to do business in the State of New York, rated A-VII or better in the most current edition of A.M. Best's Insurance Report (or if such report shall cease to be published, such comparable rating system as reasonably determined by Licensor), and with deductible and self-insurance retention amounts that are not in excess of amounts which are commercially reasonable under the circumstances (except that in the event that any maximum deductible or self-insurance retention amounts are mandated either by law, such mandated maximum amounts shall not be exceeded regardless of whether higher amounts may be commercially reasonable under the circumstances). All liability insurance policies must provide Cross Liability coverage (separation of insureds or severability of interest provisions). Further, coverage for the additional insureds shall apply on a primary and non-contributory basis irrespective of any other insurance maintained by the additional insureds, whether collectible or not, for claims arising in connection with the Rangers' operations. Policies written on a claims made basis shall be maintained for a period of at least three (3) years after termination of the Term. The insurance requirements set forth will in no way modify, reduce, or limit the indemnification herein made by the Rangers. Receipt of a certificate of insurance, endorsement or policy of insurance which is more restrictive than the contracted for insurance shall not be construed as a waiver or modification of the insurance requirements above or an implied agreement to modify same, nor is any verbal agreement to modify same permissible or binding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of cancellation of any policies with respect to non-payment of any premium or premiums, the Rangers shall provide at least ten (10) days advance written notice of same to the Licensor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that Licensor is in receipt of such notice of non-payment and/or cancellation, Licensor shall have the right, but not the obligation, to pay for any commercially reasonable costs and expenses which shall be required to maintain or reinstate such insurance, and to charge the Rangers for any and all expenses incurred in connection therewith.

**Section 14.03 <u>Rangers Certificates of Insurance</u>.** The Rangers shall provide Licensor with appropriate evidence of insurance setting forth the required coverages not later than ten (10) days prior to the date on which such coverage is required to be obtained hereunder. For each consecutive year, the Rangers shall provide appropriate evidence of insurance no later than ten (10) days before the policies are required to be renewed.

**Section 14.04 <u>Rangers Waiver of Subrogation</u>.** The Rangers shall include in each of their policies insuring against (a) loss, damage or destruction by fire or any other peril covering any property owned, borrowed, or in the Rangers' care, custody, or control, or (b) injuries to any

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employee or agent of the Rangers, a waiver of the insurance carriers' rights of subrogation against Licensor. If such waiver is unobtainable from any of the Rangers' insurance carriers, the Rangers shall obtain (i) an express agreement that such policy shall not be invalidated if the Rangers waive or had waived the right of recovery against Licensor, or (ii) any other form of permission of release of Licensor.

**Section 14.05 <u>Licensor Insurance Coverage</u>**. Licensor shall, from and after the Commencement Date, maintain at its expense in force the following minimum insurance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Property insurance for the replacement cost of the Arena, including all equipment, improvements and betterments owned by Licensor. Coverage shall be on an All Risk of physical loss or damage basis, including losses arising out of a terrorism event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Employer's liability insurance with the following minimum limits: bodily injury by accident - $1,000,000 each accident; bodily injury by disease - $1,000,000 policy limit and $1,000,000 each employee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Statutory worker's compensation coverage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disability insurance as required by the State of New York;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Commercial general liability insurance covering against bodily injury and property damage having a limit of not less than $1,000,000 for each occurrence and a limit of not less than $5,000,000 in the aggregate for each occurrence. Coverages shall be in accordance with the ISO form or equivalent. Such insurance shall include, but not be limited to, contractual liability, premises operations, products, completed operations, personal injury, advertising injury, bodily injury and property damage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Liquor liability insurance coverage having limits of not less than $1,000,000 for each common cause and in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Automobile liability insurance coverage for bodily injury and property damage with a combined single limit of no less than $1,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Umbrella or excess liability coverage, following the terms, conditions, and extensions of coverages, to apply over the employer's liability coverage in subsection (b) and above the primary coverages (e), (f) and (g), in an amount not less than $200,000,000 in the aggregate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Employment practices liability insurance with minimum limits of $10,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Media liability policy with limits of no less than $5,000,000 per claim/$5,000,000 aggregate.

The liability insurance referred to in this Section 14.05, in paragraphs (e) and (h), shall include the Rangers and its Affiliates, and each of their respective directors, officers, employees, agents, successors and assigns, as additional insureds for claims arising in connection with Licensor's

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operations. However, the insurance referred to in this Section 14.05 will be in excess of any insurance purchased and maintained by the Rangers. The Rangers shall also have the right to require Licensor, from time to time, to increase the scope and limits of any insurance coverage required to be carried herein, so long as such increase is commercially reasonable under the circumstances.

**Section 14.06 <u>Licensor Insurance Requirements</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Licensor shall, at its own expense, obtain and maintain during the Term and if written on a claims made basis for three (3) years thereafter, policies of insurance as required herein written by an insurance carrier(s) reasonably acceptable to the Rangers that are authorized to do business in the State of New York, rated A VII or better in the most current edition of A.M. Best's Insurance Report (or if such report shall cease to be published, such comparable rating system as reasonably determined by the Rangers), and with deductible and self-insurance retention amounts that are not in excess of amounts which are commercially reasonable under the circumstances (except that in the event that any maximum deductible or self-insurance retention amounts are mandated either by law, such mandated maximum amounts shall not be exceeded regardless of whether higher amounts may be commercially reasonable under the circumstances). All liability insurance policies must provide Cross Liability coverage (separation of insureds or severability of interest provisions). Policies written on a claims made basis shall be maintained for a period of three (3) years after termination of the Term. The insurance requirements set forth will in no way modify, reduce, or limit the indemnification herein made by Licensor. Receipt of a certificate of insurance, endorsement or policy of insurance which is more restrictive than the contracted for insurance shall not be construed as a waiver or modification of the insurance requirements above or an implied agreement to modify same, nor is any verbal agreement to modify same permissible or binding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of cancellation of any policies with respect to non-payment of any premium or premiums, Licensor shall provide at least ten (10) days advance written notice of same to the Rangers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that the Rangers are in receipt of such notice of non-payment and/or cancellation, the Rangers shall have the right, but not the obligation, to pay for any commercially reasonable costs and expenses which shall be required to maintain or reinstate such insurance, and to charge Licensor for any and all expenses incurred in connection therewith.

**Section 14.07 <u>Licensor Certificates of Insurance</u>.** Licensor shall provide the Rangers with appropriate evidence of insurance setting forth the required coverages not later than ten (10) days prior to the date on which such coverage is required to be obtained hereunder. For each consecutive year, Licensor shall provide appropriate evidence of insurance no later than ten (10) days before the policies are required to be renewed.

**Section 14.08 <u>Licensor Waiver of Subrogation</u>**. Licensor shall include in each of its policies insuring against (a) loss, damage or destruction by fire or any other peril covering any owned property or (b) injuries to any employee or agent of Licensor, a waiver of the insurance carriers' rights of subrogation against the Rangers. If such waiver is unobtainable from any of

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Licensor's insurance carriers, Licensor shall obtain (i) an express agreement that such policy shall not be invalidated if Licensor waives or had waived the right of recovery against the Rangers, or (ii) any other form of permission of release of the Rangers.

**<u>ARTICLE XV</u>**

**WORK STOPPAGE** 

**Section 15.01 <u>Impact on License Fee</u>.** If, during any NHL season, any previously scheduled Home Game is cancelled as a result of a strike, work stoppage, lockout, or other suspension or cancellation of NHL play arising out of a labor dispute involving NHL players or referees, or any other League-related labor or other dispute (each a "**Work Stoppage**"), there shall be no reduction in the License Fee; provided, however, that, upon any such cancellation, Licensor shall use commercially reasonable efforts to hold the Arena out for relicense on such Home Date, and in the event that Licensor relicenses the Arena on such Home Date during the time of the previously scheduled Home Game, Licensor will refund to the Rangers the lesser of (i) fifty percent (50%) of any net contribution attributable to the relicense of the Arena and (ii) the pro rata portion of the annual License Fee attributable to such Home Date (i.e. 1/44<sup>th</sup> of the License Fee if there had been 41 home games and 3 preseason games scheduled) (the "**Work Stoppage Abatement**"). If, during any season in which the Rangers receive a Work Stoppage Abatement, any previously scheduled Home Games are cancelled as a result of a Work Stoppage and subsequently rescheduled, any Work Stoppage Abatement received by the Rangers shall be reduced by an amount equal to the Work Stoppage Abatement, divided by the number of Home Games that were cancelled and multiplied by the number of Home Games that were subsequently rescheduled.

**Section 15.02 <u>Treatment of Refunds or Credits</u>.** Any refunds or credits granted to Licensor's suite or other licensees, sponsors, advertisers or other third parties (including any concessionaire or service provider) that relates to the Work Stoppage shall be determined in Licensor's reasonable discretion, but may not exceed the Team's allocable share of such revenue for a full-season work stoppage (pro rata for a partial-season work stoppage) ("**Maximum Credit or Refund**"**)**. Licensor shall retain 25% of the difference, if any, between the Maximum Credit or Refund and the actual credit or refund attributable to such assets. Any refunds or credits shall be deducted from the Rangers' share of revenue under this Agreement for the applicable Arena assets.

**Section 15.03 <u>Scheduling</u>.** Upon the occurrence of a Work Stoppage, Licensor may schedule events on previously scheduled Home Dates during the period for which the League has cancelled games. If a Work Stoppage results in the partial cancellation of a season, the Parties shall mutually agree in good faith on the rescheduling of Home Games.

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**<u>ARTICLE XVI</u>**

**CERTAIN TAXES** 

**Section 16.01 <u>Property Taxes</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Rangers shall be responsible for the payment, without demand, counter-claim or offset, of fifty percent (50%) (the "**Rangers' Tax Share**") of any real property or similar taxes applicable to the Arena ("**Arena Property Tax**"). Licensor may notify any jurisdiction imposing (or proposing to impose) any Arena Property Tax that the Rangers have full responsibility for the payment of 50% of any such Arena Property Tax and, to the extent permitted by applicable law, rule or regulation, Licensor shall arrange for such Arena Property Tax to be billed directly to the Rangers. Licensor shall promptly provide to the Rangers copies of all materials relating to any Arena Property Tax that it receives from any government authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Licensor and the Rangers acknowledge that, as of the Commencement Date, Licensor is exempt, pursuant to the laws of the State of New York and that certain agreement between the Mayor of the City of New York, acting as Chief Executive Officer of, and for, the City of New York, and Licensor's and the Rangers' predecessor-in-interest Madison Square Garden Center, Inc., dated July 15, 1982 (the "**Property Tax Exemption Agreement**"), from paying any Arena Property Tax in connection with the Arena (the "**Property Tax Exemption**"). Licensor and the Rangers shall each use all commercially reasonable efforts to cause the Property Tax Exemption to remain in effect at all times during the term of this Agreement.

**Section 16.02 <u>Commercial Rent Tax</u>.** The Rangers shall be responsible for paying directly, and shall timely pay, to the City of New York the "Commercial Rent Or Occupancy Tax" imposed pursuant to Chapter 7 of Title 11 of the New York City Administrative Code, or successor or similar tax assessed or imposed on a tenant as a consequence of the Rangers' status as a licensee under this Agreement.

**<u>ARTICLE XVII</u>**

**RANGERS DEFAULT; LICENSOR'S RIGHTS AND REMEDIES** 

**Section 17.01 <u>Rangers Default</u>.** The occurrence of any one or more of the following events shall constitute a default by the Rangers under this Agreement (each, a "**Rangers Default**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Failure by the Rangers to timely pay any amount owed by the Rangers to Licensor pursuant to this Agreement if such failure shall continue for fourteen (14) days after notice thereof is received by the Rangers from Licensor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Failure by the Rangers to maintain the Team's membership in the NHL;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The levy upon or other execution or the attachment by legal process of the interest of the Rangers in the Arena herein, or the filing or creation of a lien in respect of such interest, which levy, attachment or lien shall not be released, discharged or bonded against within sixty (60) days from the date of such filing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The making by the Rangers of an assignment for the benefit of creditors; an adjudication that the Rangers are bankrupt, insolvent or unable to pay its debts as they mature; the filing by or against the Rangers of a petition to have the Rangers adjudged bankrupt, or a petition

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for reorganization or arrangement under any law relating to bankruptcy unless, in the case of a petition filed against the Rangers, the case is dismissed within sixty (60) days after the filing thereof; the appointment of a trustee or receiver to take possession of substantially all of the Rangers' assets or the Rangers' interests in this Agreement unless the appointment is revoked within sixty (60) days after the appointment thereof; or an attachment, execution or levy against substantially all of the Rangers' interests in this Agreement unless the attachment, execution or levy is revoked within sixty (60) days after the attachment, execution or levy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Breach by the Rangers of ARTICLE XI (an "**Exclusivity Breach**"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Failure by the Rangers to observe or perform in any material respect any covenant, agreement, condition, or provision of this Agreement not otherwise specified in this ARTICLE XVII if such failure shall continue for sixty (60) days after notice thereof from Licensor to the Rangers; provided that the Rangers shall not be in a Rangers Default with respect to matters that cannot reasonably be cured within sixty (60) days so long as within sixty (60) days after such notice the Rangers commence such cure and diligently and continuously proceed to complete the same, but in any event, the Rangers shall not have more than ninety (90) days from its receipt of such notice to cure such failure.

**Section 17.02 <u>Remedies of Licensor</u>.** If a Rangers Default occurs, Licensor shall have the following rights and remedies which shall be distinct, separate, and, to the extent not mutually exclusive, cumulative:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In addition to any other legal or equitable damages as may be available to Licensor and subject to clause (b) below, Licensor may enforce this Agreement by seeking specific performance of any Rangers covenant or agreement contained herein or the enforcement of any other appropriate legal or equitable remedy, including self-help (following notice, expiration of any applicable cure period, and failure to cure) and recoupment from the Rangers of the reasonable cost of curing any default on the Rangers' behalf (and the right to offset such cost from any amounts due from Licensor pursuant to this Agreement); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything in this Agreement to the contrary, Licensor shall not, under any circumstances, have the right to terminate this Agreement.

**Section 17.03 <u>Remedies of Licensor for</u> <u>an Exclusivity Breach</u>.** The Rangers hereby acknowledge that Licensor and its Affiliates will be irreparably and continually harmed by any Exclusivity Breach or the threat thereof and that damages for an Exclusivity Breach cannot be estimated with any degree of certainty and that monetary damages cannot fairly or adequately compensate Licensor for an Exclusivity Breach. The Rangers further acknowledge that Licensor does not have an adequate remedy at law for an Exclusivity Breach. Accordingly, the Rangers hereby acknowledge that, in the event of an Exclusivity Breach, Licensor shall, in addition to any other applicable available rights and remedies, be entitled to seek and obtain, and the Rangers hereby consent to the entry of, a temporary restraining order, together with temporary, preliminary and permanent injunctive or other equitable relief, from any court of competent jurisdiction to enjoin any violation or threatened violation of ARTICLE XI and to compel the Rangers to comply

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with or restrain or cease from breaching or violating the covenants of ARTICLE XI. The Rangers hereby waive any requirement that Licensor post a bond or other security in connection with injunctive or other equitable relief.

**Section 17.04 <u>League's Right to Notice of and Cure Rangers Defaults</u>.** Licensor shall simultaneously serve the League, at the addresses set forth in <u>Section</u> <u>20.04</u>, with copies of all notices of Rangers Defaults served upon the Rangers. Licensor shall accept a cure of a Rangers Default by the League within the applicable cure period.

**<u>ARTICLE XVIII</u>**

**LICENSOR DEFAULT; RANGERS' RIGHTS AND REMEDIES; RIGHTS IN THE EVENT OF REPEAL OF PROPERTY TAX EXEMPTION** 

**Section 18.01 <u>Licensor Default</u>.** The occurrence of any one or more of the following shall constitute a default by Licensor under this Agreement (each, a "**Licensor Default**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Failure by Licensor to timely pay any amount owed by Licensor to the Rangers pursuant to this Agreement if such failure shall continue for fourteen (14) days after notice thereof is received by Licensor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The making by Licensor of an assignment for the benefit of creditors; an adjudication that Licensor is bankrupt, insolvent or unable to pay its debts as they mature; the filing by or against Licensor of a petition to have Licensor adjudged bankrupt, or a petition for reorganization or arrangement under any law relating to bankruptcy unless, in the case of a petition filed against the Licensor, the case is dismissed within sixty (60) days after the filing thereof; the appointment of a trustee or receiver to take possession of substantially all of Licensor's assets or Licensor's interests in this Agreement; or an attachment, execution or levy against substantially all of Licensor's interests in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Failure by Licensor to provide the Rangers with any of the Rangers' rights hereunder that interferes with the playing of Home Games in the Arena;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Failure by Licensor to cause the Arena to be maintained and operated in accordance with, or otherwise to meet and observe, the Standard, and such failure shall continue for fifteen (15) days after notice thereof from the Rangers to Licensor; provided that if such failure cannot reasonably be cured within such fifteen (15) days, then Licensor shall have up to an additional fifteen (15) days to cure such failure as long as, within fifteen (15) days after such notice, it diligently undertakes and pursues such cure and provides the Rangers with reasonable evidence that it is diligently undertaking and pursuing such cure, but in any event, Licensor shall not have more thirty (30) days from its receipt of notice of such failure from the Rangers to cure such failure; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Failure by Licensor to observe or perform in any material respect any covenant, agreement, condition, or provision of this Agreement not otherwise specified in this ARTICLE XVIII

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if such failure shall continue for sixty (60) days after notice thereof from the Rangers to Licensor; provided that Licensor shall not be in a Licensor Default with respect to matters that cannot reasonably be cured within sixty (60) days so long as within sixty (60) days after such notice Licensor commences such cure and diligently and continuously proceeds to complete the same, but in any event, Licensor shall not have more than ninety (90) days from its receipt of such notice to cure such failure.

**Section 18.02 <u>Remedies of</u> <u>the Rangers</u>.** If a Licensor Default occurs, the Rangers shall have the following rights and remedies, which shall be distinct, separate, and, to the extent not mutually exclusive, cumulative:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In addition to any other legal or equitable remedies as may be available to the Rangers and subject to clause (b) below, the Rangers may enforce the provisions of this Agreement and may enforce and protect the rights of the Rangers herein by seeking specific performance of any covenant or agreement contained herein, or the enforcement of any other appropriate legal or equitable remedy, including self-help (following notice, expiration of applicable cure period, and failure to cure) and recoupment from Licensor of the reasonable cost of curing any default on Licensor's behalf (and the right to offset such cost, or any amounts due from Licensor pursuant to this Agreement, against any amount then owed by the Rangers to Licensor pursuant to this Agreement), and recovery of all monies due or to become due from Licensor under any provisions of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything in this Agreement to the contrary, the Rangers shall not, under any circumstances, have the right to terminate this Agreement, except as set forth in ARTICLE XII.

**Section 18.03 <u>Rights in the Event of Repeal of Property Tax Exemption</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event the Property Tax Exemption is no longer in effect **[\*\*\*\*\*]** (a "No Fault Occurrence"), the Rangers shall remain responsible for fifty percent (50%) of the Arena Property Tax for the remainder of the Term, unless the Parties agree to extend this provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event the Property Tax Exemption is no longer in effect due to a breach of the Property Tax Exemption Agreement by the Rangers that leads to the loss of the Property Tax Exemption, the Rangers shall be responsible for 100% of any Arena Property Tax for the remainder of the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary in Sections 16.01 or 18.03(a), in the event of a loss of the Property Tax Exemption **[\*\*\*\*\*]**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **[\*\*\*\*\*]**.

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**<u>ARTICLE XIX</u>**

**ASSIGNMENT** 

**Section 19.01 <u>Licensor Assignment</u>.** Licensor shall have the right to assign this Agreement upon written notice to the Rangers to any Person that acquires the Arena, provided the assignee agrees in writing to assume all of Licensor's obligations under this Agreement.

**Section 19.02 <u>Rangers Assignment</u>.** The Rangers shall have the right to assign this Agreement upon written notice to Licensor to any Person that acquires the Team in accordance with League Rules, provided the assignee agrees in writing to assume all of the Rangers' obligations under this Agreement. The Rangers shall further have the rights to collaterally assign this Agreement to secure indebtedness of the Rangers incurred in accordance with League Rules.

**Section 19.03 <u>No Other Assignment</u>.** Except as set forth in this <u>ARTICLE XIX</u>, neither Party shall be permitted to assign this Agreement without the prior written consent of the other Party, not to be unreasonably withheld, conditioned or delayed. A change in ownership of either Party shall not be deemed an assignment under this Section 19.

**<u>ARTICLE XX</u>**

**MISCELLANEOUS** 

**Section 20.01 <u>Force Majeure</u>.** Should any fire or other casualty, act of God, earthquake, flood, epidemic, landslide, enemy act, war, riot, act or threat of terrorism, civil commotion, general unavailability of certain materials; a strike, slowdown, boycott or labor dispute (other than a strike, slowdown, boycott or labor dispute involving the League), or any other similar event beyond the reasonable control of the subject Party (each, a "**Force Majeure**") prevent performance of this Agreement by such Party in accordance with its provisions, performance of this Agreement (other than the payment of any sum of money owed hereunder, subject to the final two sentences of this Section 20.01) by such Party shall be suspended or excused to the extent commensurate with such interfering occurrence. In the event of a Force Majeure, the Rangers shall be permitted to schedule and play Home Games at an alternate location, provided that playing games in such location fully complies with the requirements of Paragraph 6 of the Property Tax Exemption Agreement. In the event of a Force Majeure (including a governmental action) that results in (a) attendance at Arena events being limited to 1000 attendees or less per event for any period (a "Restricted Attendance Period"), the Rangers shall be permitted to schedule and play Home Games at the Arena during the Restricted Attendance Period; the pro rata License Fee attributable to any Home Games played at the Arena during any Restricted Attendance Period shall be reduced by 80% or (b) attendance at Arena events being materially limited (but greater than 1000 attendees), the parties will negotiate in good faith to agree on an appropriate reduction to the License Fee. Notwithstanding anything herein to the contrary, the Rangers' obligation to pay the License Fee for periods for which the Arena is unavailable for Home Games due to a Force Majeure event (including a governmental action or the occurrence of any Untenantable Condition) shall be abated during such periods.

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**Section 20.02 <u>Consents</u> <u>and Approvals</u>.** Any consents or approvals permitted or required to be given by Licensor or the Rangers under this Agreement shall not be valid unless such consent or approval is in writing, signed by the Party by or on whose behalf such consent or approval is executed.

**Section 20.03 <u>Entire Agreement</u>.** This Agreement, including the schedules and exhibits attached hereto, which are incorporated herein, constitutes the entire agreement between and among the Parties, and supersedes any previous oral or written agreements, representations and covenants, regarding the subject matter hereof and is a binding and enforceable agreement between and among the Parties and their respective successors and permitted assigns. This Agreement may not be amended, modified or supplemented unless in writing executed by the Parties.

**Section 20.04 <u>Notices</u>.** All notices, demands, consents, approvals, statements, requests, and reports to be given under this Agreement shall be in writing, signed by the Party or an officer, agent, or attorney of the Party giving the notice and shall be deemed to be given upon receipt if delivered personally by nationally recognized overnight courier providing a receipt for delivery, by certified or registered mail, postage prepaid with return receipt requested, or by personal delivery at the applicable address set forth below or to such other address as that Party may designate in writing.

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| | |
|:---|:---|
| For the Rangers: | MSG Sports, LLC |
|  | Two Pennsylvania Plaza |
|  | New York, New York 10121 |
|  | Attention: President |
| With copies to: | MSG Sports, LLC |
|  | Two Pennsylvania Plaza |
|  | New York, New York 10121 |
|  | Attention: General Counsel |
| For Licensor: | MSG Arena, LLC |
|  | c/o MSG Entertainment Group, LLC |
|  | Two Pennsylvania Plaza |
|  | New York, New York 10121 |
|  | Attention: President |
| With a copy to: | MSG Arena, LLC |
|  | c/o MSG Entertainment Group, LLC |
|  | Two Pennsylvania Plaza |
|  | New York, New York 10121 |
|  | Attention: General Counsel |

---

**Section 20.05 <u>Successors Bound</u>.** The covenants, terms, provisions, and conditions of this Agreement shall be binding upon Licensor and the Rangers and their respective successors and permitted assigns and inure to the benefit of Licensor and the Rangers and their respective successors and, to the extent permitted herein, assigns.

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**Section 20.06 <u>Governing Law; Disputes</u>**. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to its choice of law provisions. In connection with any disputes arising under this Agreement, each of the Parties voluntarily and irrevocably consents and (without waiving service of process) submits to the personal jurisdiction and venue of the courts located in the Borough of Manhattan, City of New York that have subject matter jurisdiction, waives all objections as to venue and any claim that it is not personally subject to such jurisdiction or to seek a change of venue, agrees not to bring any action or proceeding in any other forum, and waives the right to a trial by jury.

**Section 20.07 <u>Captions and Headings; Certain Rules of Construction</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The captions and headings throughout this Agreement are for convenience and reference only and the words contained therein shall in no way be held or deemed to define, limit, describe, explain, modify, amplify, or add to the interpretation, construction, or meaning of any provisions of this Agreement or the scope or intent thereof, nor in any way affect this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless the context, otherwise requires: (i) a term has the meaning assigned to it, (ii) "or" is not exclusive, (iii) words in the singular include the plural and words in the plural include the singular, (iv) "herein," "hereof "and other words of similar import refer to this Agreement as a whole and not to any particular article, section or other subdivision, (v) all references to "clauses," "sections" or "articles" refer to clauses, sections or articles of this Agreement, (vi) "including" means "including, without limitation" and (vii) the masculine, feminine and neuter adjectives and pronouns include one another.

**Section 20.08 <u>Counterparts</u>**. This Agreement may be executed by facsimile or PDF signature and in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

**Section 20.09 <u>Confidentiality</u>**. Subject to League Rules and the rights of any mortgagees each Party agrees that, commencing on the Commencement Date and continuing for a period of five (5) years after the expiration or earlier termination of this Agreement, the Parties shall keep confidential the terms and conditions of this Agreement; provided that disclosure may be made (a) to their directors, equity holders, officers, Affiliates, employees, agents, advisors, and representatives (collectively, their "**Representatives**") (b) if disclosure is required by court order, or applicable law or regulation, including disclosures required by any governmental or regulatory body having the authority to regulate or oversee any aspect of the business of either Party (e.g., the Securities and Exchange Commission) (in which case the Party required to disclose such Confidential Information shall notify the other Party and use commercially reasonable efforts to obtain confidential treatment of any information so required to be disclosed), (c) if disclosure is required to comply with a request or requirement of a governmental or administrative entity or agent thereof, (d) to the League and/or any League Representatives, (e) as required by League Rules, (f) for valid business purposes to existing or prospective lenders, investors and employees of partners and Affiliates, (g) to enforce any of a Party's rights pursuant to this Agreement, or (h)

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to governmental authorities, to the extent necessary to perform a Party's obligations under this Agreement. Each Party shall direct their Representatives to maintain such information in the strictest confidence. No Party shall make any public announcement with respect to this Agreement or the transactions contemplated hereby without the prior written consent of the other Parties, not to be unreasonably withheld, conditioned or delayed.

**Section 20.10 <u>League Rules</u>**. This Agreement is subject to League Rules and Licensor hereby covenants to comply with all League Rules in connection with its performance hereunder and its operation of the Arena for Rangers Events. In the event of any conflict between this Agreement and League Rules with respect to the Parties' rights and obligations hereunder, League Rules shall control and govern in all respects. Nothing in this <u>Section</u> <u>20.10</u> shall affect the Rangers' obligations under <u>Section</u> <u>11.01</u> or <u>Article XIII</u>.

**Section 20.11 <u>Superior Interests</u>**

Each mortgagee or similar party named in any mortgage or similar instrument now existing or hereafter made and encumbering an interest in the Arena superior to that of Licensor (each such mortgage and similar instrument being hereinafter collectively referred to as "**Superior Interests**", and the holder of the mortgagee's and similar party's interest being hereinafter collectively referred to as "**Superior Interest Holders**") shall agree in a commercially reasonable form of instrument that, if it succeeds to the interest of Licensor in the Arena by termination of the Superior Interest by any means, it will recognize the rights and interest of the Rangers under this Agreement to use and occupy the Arena if and as long as no Rangers Default has occurred and is continuing (which agreement may, at such Superior Interest Holder's option require attornment by the Rangers), in consideration of which the rights and interests of the Rangers to use and occupy the Arena shall be subject and subordinate to the Superior Interest and to any and all advances to be made therein, and to the interest thereon, and all renewals, replacements and extensions thereof. The Superior Interest Holder may elect that, instead of making this Agreement subject and subordinate to its Superior Interest, the rights and interest of the Rangers under this Agreement shall have priority over the lien of the Superior Interest in question. The Rangers agree that it will, within ten (10) days after demand in writing, execute and deliver such reasonable instruments may be required, either to make this Agreement subject and subordinate to such a Superior Interest (subject to the Superior Interest Holder's agreement as aforesaid to recognize the rights and interest of the Rangers under this Agreement to use and occupy the Arena if and as long as a Rangers Default has not occurred and is continuing), or to give this Agreement priority over the lien of such Superior Interest, whichever alternative may be elected by the respective Superior Interest Holder.

**Section 20.12 <u>Severability</u>**. If any Article, Section, Subsection, Schedule, Exhibit, term, or provision of this Agreement or the application thereof to any Party or circumstance shall, to any extent, be invalid or unenforceable, the remainder of the Article, Section, Subsection, Schedule, Exhibit, term, or provision of this Agreement or the application of same to Parties or circumstances other than those to which it is held invalid or unenforceable shall not be affected thereby and each remaining Article, Section, Subsection, Schedule, Exhibit, term, or provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

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**Section 20.13 <u>Waiver</u>**. No waiver of any right, obligation or default shall be implied, but must be in writing, signed by the Party against whom the waiver is sought to be enforced. Any particular waiver of any right, obligation or default shall not be construed as a waiver of any subsequent or other right, obligation or default.

**Section 20.14 <u>Further Assurances</u>**. Licensor and the Rangers shall execute, acknowledge, and deliver, after the date hereof, without additional consideration, such further assurances, instruments, and documents, and shall take such further actions, as Licensor or the Rangers shall reasonably request of the other in order to fulfill the intent of this Agreement and the transactions contemplated thereby.

**Section 20.15 <u>No Third-Party Beneficiary: Enforcement of Third Party</u> <u>Agreements</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The provisions of this Agreement are for the exclusive benefit of the Parties and not for the benefit of any third person, nor shall this Agreement be deemed to have conferred any rights, express or implied, upon any third person unless otherwise expressly provided for herein <u>provided</u>, that the League is a third party beneficiary of (i) the Rangers cure rights as set forth in Section 17.04, and (ii) the enforcement of Section 20.10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Licensor shall use commercially reasonable efforts to enforce any agreement between Licensor and any third-party (or third-parties) (including, without limitation, the ADA Consent Decree, Ticket Agent Agreements, Suite Agreements, Hospitality Agreement and Joint Sponsor Agreements) that apply to any of the Rangers rights or obligations under this Agreement.

**Section 20.16 <u>Books and Records</u>**. Licensor and the Rangers shall each keep full, true, and correct contracts, books and records in accordance with generally accepted accounting principles consistently applied (and shall require all of their agents, contractors, and concessionaires to keep such books and records of their transactions to the extent that such transactions would be the subject of the calculation of any payments due from one Party to the other under this Agreement) setting forth the factual, accounting, and legal bases upon which the calculation of payments herein are made (the "**Books and Records**"), and in such detail that would reasonably enable a reasonably qualified third party to readily and independently make such calculations and verify the accuracy of statements of same which are furnished by one Party to the other under this Agreement. Each Party's books and records shall be (a) retained for at least three (3) years following the other Party's receipt of the respective statement(s) to which they apply, and (b) made available for inspections and copying by the other Party's duly authorized representatives at all reasonable times at reasonable office locations in the New York, NY metropolitan area. Each Party shall promptly furnish to the other a complete copy of any report of any such examination or inspection.

**Section 20.17 <u>Audit Rights</u>**. Each Party (the "**Auditing Party**") shall be entitled to audit the relevant Books and Records of the other Party (the "**Non-Auditing Party**") for the sole purpose, and only to the extent, of determining the Non-Auditing Party's compliance with the financial terms of this Agreement. Such audit right shall be exercisable by the Auditing Party by

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providing the Non-Auditing Party with not less than five (5) business days written notice. Except as otherwise set forth below, all costs and expenses of any such audit shall be paid by the Auditing Party. If the audit discloses that the Non-Auditing Party has failed to pay any amounts due under this Agreement, the Non-Auditing Party shall remit the underpayment to the Auditing Party within thirty (30) days following the Auditing Party's delivery of notice and evidence of underpayment to the Non- Auditing Party. If the audit reveals an underpayment to the Auditing Party of greater than 5%, then the Non- Auditing Party shall pay all costs and expenses associated with such audit, provided that the auditor is an independent certified public accounting firm paid on an hourly (and not contingency) basis.

**Section 20.18 <u>Access to Financial Information</u>**. Licensor acknowledges that existing League Rules on financial reporting under the League's collective bargaining agreements and revenue sharing plans requires the Team, annually and from time to time, to provide the League and auditors for the League and its players' association detailed financial information, including information that is in the possession of Licensor. Licensor agrees to provide the information requested by the League and/or the auditors for these purposes and to use commercially reasonable efforts to provide the staff and other support necessary to comply with these requests and the related process.

***[signatures on next page]***

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IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the date first above written.

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| | |
|:---|:---|
| **<u>LICENSOR</u>:** | **<u>LICENSOR</u>:** |
| MSG ARENA, LLC | MSG ARENA, LLC |
| By: | /s/ Philip D'Ambrosio |
| Name: | Philip D'Ambrosio |
| Title: | Senior Vice President, Treasurer |
| **<u>RANGERS</u>:** | **<u>RANGERS</u>:** |
| NEW YORK RANGERS, LLC | NEW YORK RANGERS, LLC |
| By: | /s/ Victoria M. Mink |
| Name: | Victoria M. Mink |
| Title: | Executive Vice President and Chief Financial Officer |

---

[*Signature Page to Arena License Agreement (Rangers)*]

## Exhibit 10.45

**Exhibit 10.45** 

**SPONSORSHIP SALES AND SERVICE REPRESENTATION AGREEMENT** 

**THIS SPONSORSHIP SALES AND SERVICE REPRESENTATION AGREEMENT** (this "<u>Agreement</u>") is made and entered into as of April 15, 2020 (the "<u>Effective Date</u>") by and between New York Rangers, LLC ("<u>Rangers, LLC</u>"), a Delaware limited liability company with offices at 2 Penn Plaza, New York, NY 10121, and MSG Entertainment Group, LLC (formerly MSG Sports & Entertainment, LLC), a Delaware limited liability company with offices at 2 Penn Plaza, New York, NY 10121 ("<u>Representative</u>").

**WHEREAS**, Representative directly or indirectly owns and operates, *inter alia*, the sports and entertainment complex known as Madison Square Garden (the "Arena"); and

**WHEREAS**, Rangers, LLC owns and operates the New York Rangers (the "<u>Rangers</u>"); and

**WHEREAS**, Rangers, LLC desires to appoint Representative as sales and service representative for sponsorships with respect to the Rangers, and Representative desires to be so appointed and to perform the services described herein, each on the terms and conditions set forth in this Agreement.

**NOW, THEREFORE**, in consideration of the mutual covenants and promises hereinafter set forth, the parties agree as follows:

**1. <u>Appointment</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Appointment</u>. Subject to the terms of this Agreement, Rangers, LLC hereby appoints Representative as its exclusive (except as otherwise provided in this Agreement) sales and service representative for all sponsorship benefits available for sale in connection with the Rangers (such sponsorship benefits, the "<u>Team Sponsorship Assets</u>") to be sold in accordance with the terms and conditions set forth herein, which shall include, but not be limited to, the items listed on Schedule A hereto, as well as such other sellable sponsorship assets as the parties agree, after good faith consideration and discussion, are later developed and/or appropriately deemed to relate primarily to the Rangers. As clarification, Team Sponsorship Assets hereunder shall not include Arena Game Shared Sponsorship Assets (as defined in that certain Arena License Agreement between Rangers, LLC and Representative's subsidiary MSG Arena, LLC (collectively, the "Arena License Parties") of even date herewith (the "<u>Arena License</u>")), Tickets for Rangers Events (each as defined in the Arena License) ("<u>Tickets</u>"), hospitality at Rangers Events (e.g., suite licenses, memberships to the Madison Club and The Loft, newly-created hospitality space sales) ("<u>Hospitality</u>") or Broadcast Advertising Inventory (as defined below), with respect to all of which Rangers, LLC shall have the exclusive rights or receive an agreed-upon allocation pursuant to that Arena License. "<u>Broadcast Advertising Inventory</u>" means any audio-visual, audio-only, video-only, graphical, text or any other form of advertising units or sponsorship rights, regardless of the medium (now known or hereafter developed) in which such advertising units or sponsorship rights are available or promoted, whether displayed or distributed via billboards, studio signage, tickers, "double-box commercials," banners, links, bugs, fly-outs, overlays, companion banners, or in-stream, pre-roll or post-roll and, for clarity, including promotional spots, product/service placement, designations, integrations and the like, in each case, associated with any Broadcast Rights (as defined in the Arena License) of the Rangers. Notwithstanding anything set forth herein, the parties acknowledge that various rights with respect to the Broadcast Advertising Inventory have been granted to MSG Networks Holdings, L.P. ("<u>MSGN</u>") via a certain Broadcast Rights Agreement between Rangers, LLC and MSGN, and that MSGN has, in turn, via a certain advertising sales representation agreement (the "<u>Network Rep Agreement</u>"), granted to Representative the exclusive right to sell such Broadcast Advertising Inventory; nothing contained herein is intended to affect such grants of rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Exclusivity</u>. The exclusivity granted above means that, except as provided in Section 5.4, Rangers, LLC shall not (a) sell on its own behalf Team Sponsorship Assets without the prior written approval of Representative, such approval not to be unreasonably withheld, conditioned or delayed, or (b) appoint a third party to sell Team Sponsorship Assets on Rangers, LLC's behalf without the prior written approval of Representative.

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Notwithstanding anything to the contrary in this Agreement, Rangers, LLC may include Team Sponsorship Assets in agreements that Rangers, LLC or any of its affiliates enters into independently of Representative that are principally related to non-sponsorship matters (e.g., ticketing and Broadcast Rights agreements), as long as such inclusion does not violate the terms of a then-existing Sponsorship Agreement (as defined below), and (x) no revenue from such agreements shall be included in Gross Revenue (as defined below) and (y) no Commissions shall be received by Representative for such agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 (a) <u>Contracting Process</u>. Representative shall negotiate, on behalf of Rangers, LLC, sponsorship agreements that provide for the sale of, payment for and delivery of Team Sponsorship Assets. Such agreements, as well as any sponsorship agreements in existence as of the Effective Date that include Team Sponsorship Assets shall hereinafter be referred to as "<u>Sponsorship Agreements</u>." Representative shall make commercially reasonable, good faith efforts to ensure that Rangers, LLC is the direct contracting party with all sponsors with respect to whom the sponsorship assets purchased are exclusively or primarily Team Sponsorship Assets, and payments shall be made directly from the sponsor to Rangers, LLC in such instances, subject to the final sentence of this subsection (a). Where Representative is unable to effect that outcome, or where Team Sponsorship Assets are included in multi-property deals that do not consist exclusively or primarily of Team Sponsorship Assets, Representative shall make commercially reasonable, good faith efforts to include Rangers, LLC as an express third-party beneficiary in any such agreements entered into during the Term. It is agreed and acknowledged that Sponsorship Agreements that are entered into by Rangers, LLC, MSG Sports, LLC or any other Rangers-specific entity that include Arena Game Shared Sponsorship Assets, Non-Team Sponsorship Assets and/or, during the term of the Network Rep Agreement, Broadcast Advertising Inventory shall be subject to the payment of appropriate allocations with respect to all revenue related to such assets, which allocations shall be agreed upon by the parties in advance of Rangers, LLC's approval of any such Sponsorship Agreement and set forth in Schedule 2 of the Team Sponsorship Allocation Agreement (defined in Section 3.3 below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Rangers Approval</u>. Notwithstanding anything herein to the contrary, Sponsorship Agreements that include Team Sponsorship Assets (and any amendment thereto or termination, extension or renewal thereof) shall be subject to the prior written approval of Rangers, LLC, which shall not be unreasonably withheld, conditioned or delayed; provided, however, that, in any instance in which Team Sponsorship Assets are not included in a potential Sponsorship Agreement, or an agreement is not reached, in either case by virtue of Rangers, LLC's failure to approve of such inclusion, the parties will discuss in good faith a downward adjustment to that Contract Year's Annual Sales Target (as defined in Section 4.3 below).

**2. <u>Term</u>.** Subject to the terms of this Agreement (including without limitation Section 7 hereof), the term of this Agreement shall commence as of the Effective Date and expire on June 30, 2030 (the "<u>Initial Term</u>"). The term of this Agreement shall automatically extend for one-year periods after the expiration of the Initial Term and any subsequent one-year renewal terms (each, a "<u>Renewal Term</u>" and, collectively with the Initial Term, the "<u>Term</u>"), unless either party delivers written notice to the other party at least twelve (12) months prior to the expiration of the Initial Term or six (6) months prior to the expiration of any Renewal Term that it wishes to terminate the Agreement effective as of the expiration of the then-applicable Term. As used herein, "<u>Contract Year</u>" means each twelve-month period during the Term commencing on July 1 and ending on the immediately-succeeding June 30; provided, however, that the period beginning on the Effective Date and ending June 30, 2020 (the "<u>Stub Year</u>") shall be deemed a Contract Year.

**3. <u>Team Sponsorship Assets</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Availability of Assets</u>. Subject to League Rules (as defined in the Arena License), Rangers, LLC and Representative, in each case, to the extent within its control, shall at all times maintain availability of Team Sponsorship Assets that are included in any then-active Sponsorship Agreements, as well as such other Team Sponsorship Assets as Rangers, LLC may otherwise commit to a third party sponsor, unless either Rangers, LLC or Representative is able to provide one or more "make good" assets that are acceptable to the affected sponsor or elimination of the asset(s) is otherwise agreed upon by the parties. Representative shall comply, and ensure that other applicable parties comply, with each Sponsorship Agreement in all respects.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Elimination and Addition of Assets</u>. With respect to any currently-available Team Sponsorship Assets that are not, at any given time, included in any then-active Sponsorship Agreements, Rangers, LLC may elect to eliminate such Team Sponsorship Assets with respect to any Contract Year (an "<u>Asset Reduction</u>"); provided that, to the extent that such elimination has or is expected to materially affect sales of Team Sponsorship Assets, the Annual Sales Target for such Contract Year will be adjusted pursuant to Section 4.4(a) below. Any addition of new Team Sponsorship Assets with respect to any Contract Year shall be similarly factored in when the parties set the Annual Sales Target, as well as in the contemplation of any mid-year adjustment pursuant to Section 4.4(b) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Make Goods</u>. With respect to all Team Sponsorship Assets sold pursuant to this Agreement, Rangers, LLC and Representative, in each case, to the extent within their respective control, shall use commercially reasonable efforts to provide such Team Sponsorship Assets to Representative or the respective sponsor (as appropriate) in accordance with the terms of the relevant Sponsorship Agreement. If Rangers, LLC is unable to provide such Team Sponsorship Assets at the appointed time or manner for any reason, then Representative, in negotiating refunds or "make good" sponsorship benefits to be delivered to the affected sponsor, shall (a) use commercially reasonable efforts to minimize any refunds or make goods as a result of non-delivery of Team Sponsorship Assets and (b) use commercially reasonable efforts to replace the undelivered Team Sponsorship Assets with alternative Team Sponsorship Assets, which alternative Team Sponsorship Assets Rangers, LLC would then provide (as approved by Rangers, LLC). The parties agree and acknowledge, however, that there may be instances in which make good obligations with respect to such undelivered Team Sponsorship Assets, due to the demands of the affected sponsor, are satisfied with a refund of cash or with sponsorship benefits other than Team Sponsorship Assets, in which case the provisions of Section 4.4(c) shall apply, and the payments due from Representative to Rangers, LLC under Schedule 1 of that certain Team Sponsorship Allocation Agreement between the parties of even date herewith (the "<u>Team Sponsorship Allocation Agreement</u>") shall be adjusted appropriately.

**4. <u>Commissions; Annual Sales Target; Rate Card</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Commissions</u>. Subject to the terms of this Agreement, in consideration of the services of Representative, Representative will, for each Contract Year after the Stub Year, and except as otherwise agreed by the parties, receive commissions with respect to each Contract Year on the sale of Team Sponsorship Assets ("<u>Commissions</u>") based on the following commission structure:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) except as set forth in subsections (c)-(g) and Section 7.1(d) below, with respect to Gross Revenue (as defined below) up to the Annual Sales Target for such Contract Year, the Commission shall be twelve-and-one-half percent (12.5%) of Gross Revenue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) except as set forth in subsection (c)-(g) below, for any Gross Revenue above the Annual Sales Target for such Contract Year, the Commission shall be seventeen-and-one-half percent (17.5%) of such incremental Gross Revenue in excess of such Contract Year's Annual Sales Target;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with respect to Sponsorship Tickets (as defined in Section 4.8) included in any Sponsorship Agreement, Representative shall be entitled to no Commission thereon, unless separately agreed to in writing (email being sufficient) by Rangers, LLC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) with respect to any Sponsorship Hospitality (as defined in Section 4.9) included in any Sponsorship Agreement, Representative shall be entitled to no Commission thereon pursuant to this Agreement, and the parties understand and acknowledge that Representative shall be entitled to compensation therefrom as set forth in Article V of the Arena License;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) with respect to any Team Sponsorship Assets delivered after the Term hereof in accordance with Section 7.1(f) below, the Commission shall be as set forth in such Section; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) with respect to any Team Sponsorship Asset (other than Sponsorship Tickets or Sponsorship Hospitality) for which the Fulfillment Costs (as defined below) exceed thirty (30%) of the value allocated to such asset, the Commission thereon shall be twelve-and-one-half percent (12.5%) of the margin on such asset (*i.e.*, allocated value less Fulfillment Costs, multiplied by 0.125). By way of example, if $100,000 is allocated to an applicable Team Sponsorship Asset in a Sponsorship Agreement, and there are $60,000 of Fulfillment Costs associated with delivering such asset, then Representative's commission with respect to such asset shall be $5,000. For avoidance of doubt, any commissions, fees or other amounts paid to or retained by agencies or other Representative-engaged third parties with respect to the sale of Team Sponsorship Assets shall be borne by Representative without any reduction in the amounts payable to Rangers, LLC from the gross amount of the sale other than the Commissions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Commissions shall be paid by Rangers, LLC to Representative on a monthly basis, via offset against amounts due from Representative to Rangers, LLC under Section 6.2 below or, only to the extent necessary, via wire transfer from Rangers, LLC to Representative. Each such payment shall be consistent with the amount set forth for Commissions for such month in the applicable Monthly Report (as defined in Section 6.2). To the extent that a Commissions payment is to be made by wire payment, such payment will be made within five (5) days following Rangers, LLC's receipt of the applicable Monthly Report; provided, however, that, to the extent that Rangers, LLC has requested additional information or raised a dispute as to a Monthly Report, either pursuant to Section 6.2, such payment shall be made within five (5) days following its receipt of such information and/or the resolution of the dispute in accordance with the process set forth in such Section

"<u>Gross Revenue</u>" shall mean gross sales revenue actually received by Representative, Rangers, LLC or MSG Sports, as applicable, from Team Sponsorship Assets contained in Sponsorship Agreements (and for this purpose, prior to any deduction of the applicable Commission). For avoidance of doubt, sponsorship fees under any Sponsorship Agreement shall count toward Gross Revenue for the purpose of this Agreement in the Sponsorship Agreement contract year to which such fees relate under such Sponsorship Agreement, consistent with Representative's past practice, regardless of any recognition of revenue pursuant to GAAP that is inconsistent therewith. Notwithstanding anything to the contrary contained herein, the parties acknowledge and agree that, with respect to any Contract Year, for purposes of (i) calculating the Commission pursuant to this Section 4.1 and (ii) determining whether or not the Annual Sales Target has been achieved, Gross Revenue shall not include any revenue generated from the sale of Arena Game Shared Sponsorship Assets or Non-Team Sponsorship Assets (each as defined in the Arena License) and/or Team Sponsorship Assets sold incrementally with respect to any playoff games ("<u>Playoff Sponsorship Assets</u>"). Except as otherwise agreed by the parties, the Commission payable on gross revenue generated from the sale of Playoff Sponsorship Assets (other than Sponsorship Tickets and Sponsorship Hospitality) shall be twelve-and-one-half percent (12.5%) of such gross revenue.

4.1A. <u>Sales Operations Payment</u>. With respect to any Contract Year, in addition to any Commission to which Representative is entitled, Rangers, LLC shall also pay to Representative an amount covering a share of the cost of Representative's sales and service staff and overhead (the "<u>Sales Operations Payment</u>"). With respect to the Stub Year, the Sales Operations Payment shall be $775,000; with respect to the 2020-21 Contract Year, the Sales Operations Payment shall be $3,100,000. With respect to the 2021-22 Contract Year and each Contract Year thereafter, the Sales Operations Payment will be 103% of the Sales Operations Payment for the immediately preceding Contract Year. Representative may deduct and retain one-twelfth (1/12) (or, with respect to the Stub Year, the applicable pro-rated monthly amount) (either, a "<u>Monthly SO/OH Payment</u>") of the applicable Contract Year's Sales Operations Payment from each Monthly Net Sponsorship Payment it makes pursuant to Section 6.2 below; provided, however, that, with respect to any shortfall in any month (*i.e.*, any monthly portion of the Sales Operations Payment that is not paid by offset against that month's Monthly Net Sponsorship Payment to Rangers, LLC), Rangers, LLC shall, no more than fifteen (15) days following the end of such month, pay such shortfall to

Representative. Notwithstanding anything herein to the contrary, the Sales Operations Payment shall terminate in the event of any termination of this Agreement, and the Sales Operations Payment for the Contract Year in which such termination occurs shall be reduced on a pro-rata basis.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Fulfillment Costs</u>. "<u>Fulfillment Costs</u>" shall mean the direct incremental out-of-pocket costs incurred by either Representative or Rangers, LLC in fulfilling Sponsorship Agreement obligations or otherwise delivering Team Sponsorship Assets that Representative has sold hereunder (*e.g.*, digital content creation, development of new inventory, costs of T-shirts, etc.); provided, however, that, for avoidance of doubt, "Fulfillment Costs" shall not include Commissions payable to Representative, Representative overhead (including employee compensation) or sales costs (e.g., sales materials, research, travel and entertainment, training, CRM, software, client hospitality, agency commission, etc.). Representative and Rangers, LLC shall regularly discuss and collaborate in good faith to determine the appropriate levels of Fulfillment Costs with respect to Team Sponsorship Assets, taking into account such considerations as sponsor satisfaction, Rangers brand maintenance, etc. Except as otherwise agreed by the parties, Rangers, LLC shall be responsible for paying all such Fulfillment Costs that either party incurs, and Representative may deduct from the payments it makes to Rangers, LLC pursuant to Section 6.2 hereof the amounts of such Fulfillment Costs that it has directly incurred in accordance with this Agreement, provided that, upon any such deduction, it shall provide to Rangers, LLC invoices or receipts reflecting such costs concurrently with its delivery of the relevant payment. Notwithstanding anything herein to the contrary, Representative shall not incur Fulfillment Costs payable by Rangers, LLC without the prior written approval of Rangers, LLC (including approval in any deal budget) in excess of those previously approved by Rangers, LLC including as set forth in any deal budget.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Annual Sales Target</u>. "<u>Annual Sales Target</u>" shall mean, for each Contract Year following the Stub Year, an amount to be mutually agreed by the parties (determination of which, if necessary, will be escalated to a senior executive of each party) following good faith discussions for a reasonable period of time prior to and/or during Rangers, LLC's budget process for the applicable Contract Year; provided, however, that, in the event that the parties are unable to agree on an Annual Sales Target for any Contract Year, the Annual Sales Target will be 103% of the Annual Sales Target for the immediately preceding Contract Year (provided further that the Annual Sales Target for the 2020-21 Contract Year will be no less than the gross sales revenue actually received by Representative, Rangers, LLC, MSG Sports, LLC or the appropriate Rangers-specific entity without duplication, as applicable, from Team Sponsorship Assets contained in Sponsorship Agreements during the 2019-20 fiscal year (*i.e.*, July 1, 2019 through June 30, 2020)). For clarity, the Annual Sales Target amounts shall not include Gross Revenue from the sale of Arena Game Shared Sponsorship Assets, Non-Team Sponsorship Assets and/or Playoff Sponsorship Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Adjustments to Annual Sales Target</u>. The Annual Sales Target for any Contract Year may be adjusted in each of the following instances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event of a material Asset Reduction or if there is any addition of new Team Sponsorship Assets, in each case, as described in Section 3.2 above, the Annual Sales Target for the applicable Contract Year will, if requested by either party, be adjusted upward or downward, as applicable, by the allocated value of the applicable additional undelivered Team Sponsorship Assets or the past or expected value of the affected sales category and/or asset inventory, as mutually agreed by the parties following good faith discussions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of League Rules changes that either newly permit or preclude the sale of certain Team Sponsorship Assets (*e.g.*, the National Hockey League ("<u>NHL</u>") creating new team sponsorship inventory) or sales of advertising in a particular sales category in advance of or within any Contract Year, which changes have or are expected to have a material impact on sales of Team Sponsorship Assets, the Annual Sales Target for such Contract Year may be adjusted upward or downward, as applicable, by the value of the applicable Team Sponsorship Assets or the past or expected value of the affected sales category and/or asset inventory, as applicable, as mutually agreed by the parties following good faith discussions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that, as contemplated in Section 3.3 above, make good obligations with respect to undelivered Team Sponsorship Assets are satisfied with sponsorship benefits other than Team Sponsorship Assets or with a cash refund, the Annual Sales Target for the applicable Contract Year will, if requested by Representative, be adjusted downward by the allocated value of the applicable undelivered Team Sponsorship Assets or cash refund, as applicable, as mutually agreed by the parties following good faith discussions.

If, with respect to good faith discussions as to an adjustment as contemplated above, by the end of thirty (30) days of such discussions (during which, if necessary, such discussions will be escalated to a senior executive of each party), the parties have not agreed on an appropriate adjustment to the Annual Sales Target, then within twenty (20) days of the expiration of such thirty-day period, either party shall have the right to submit to binding arbitration the issue of the appropriate adjustment to the Annual Sales Target. Any such arbitration shall be conducted in accordance with Section 6 below, or such other procedures as the parties agree upon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Shortfalls</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that either (i) the Gross Revenue for any Contract Year is less than 80% of the Annual Sales Target for such Contract Year, or (ii) with respect to the 2021-22 Contract Year and beyond, the sum of the Gross Revenue for any Contract Year (the "<u>Base Year</u>") and the Gross Revenue for the Contract Year immediately preceding the Base Year is less than 85% of the sum of the Annual Sales Target for such immediately-preceding Contract Year and the Annual Sales Target for such Base Year (the difference between the Gross Revenue and the Annual Sales Target for such Contract Year, or between the average Gross Revenue and average Annual Sales Targets for such Contract Year and Base Year, as the case may be, the "<u>Shortfall</u>"), then Rangers, LLC will have the right to request a payment (the "<u>Shortfall Payment</u>") from Representative in an amount equal to the Shortfall (less any Commissions that would have applied if such amount were Gross Revenue) within thirty (30) days following its receipt of the June Monthly Report (as defined in Section 6.2 below). Rangers, LLC shall designate the applicable Shortfall in its request (*i.e.*, if both (i) and (ii) of the first sentence of this Section 4.5 are triggered, Rangers, LLC may choose the Shortfall it wishes to designate in its request to Representative). Except as provided in subsections (b) and (c) below with respect to a Shortfall relating to the final Contract Year of the Agreement alone, Representative may elect as to whether or not to make a requested Shortfall Payment. If Representative does not make such Shortfall Payment to Rangers, LLC within thirty (30) days after receipt of Rangers LLC's request, then, within thirty (30) days of the earlier of Representative's written notice to Rangers, LLC of such fact or the expiration of such thirty (30) day period, Rangers, LLC will have the right, exercisable by written notice to Representative, to terminate this Agreement effective, at Rangers, LLC's election and as set forth in such notice, either (i) sixty (60) days following the receipt of such notice or (ii) at the expiration of the then-current Contract Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If Rangers, LLC requests a Shortfall Payment with respect to a Shortfall in connection with the final Contract Year only, Representative shall pay, within thirty (30) days following the end of such Contract Year, such Shortfall, and may not elect not to make such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For avoidance of doubt, if Representative makes a Shortfall Payment to Rangers, LLC relating to a Contract Year or pair of Contract Years, the Annual Sales Target(s) will be deemed to have been met for such Contract Year(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>Rate Card</u>. Rangers, LLC's budgeted rate card for Team Sponsorship Assets (the "<u>Rate Card</u>") for the 2019-20 Contract Year has been agreed upon by the parties and is attached hereto as Schedule B. For subsequent Contract Years, such Rate Card will be set by Rangers, LLC following consultation with Representative as part of Rangers, LLC's annual budgeting process, and such Rate Card shall in each instance be set at levels that do not impede Representative's ability to meet the Annual Sales Target for the relevant Contract Year. Representative will not sell any Team Sponsorship Assets below such Rate Card by more than twenty percent (20%) without Rangers, LLC's prior written approval.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 <u>Inclusion in Multi</u><u>-Property Sponsorships</u>. Representative may, during the Term, include Team Sponsorship Assets in other multi-property Sponsorship Agreements (*i.e.,* marketing and sponsorship arrangements that include Team Sponsorship Assets as well as Non-Team Sponsorship Assets and/or Arena Game Shared Sponsorship Assets, each as defined in the Arena License), provided that (i) without limiting Rangers, LLC's approval right with respect to all Sponsorship Agreements, Rangers, LLC has approved such inclusion (which approval shall not be unreasonably withheld, conditioned or delayed), (ii) unless otherwise agreed by Rangers, LLC, such Team Sponsorship Assets shall be valued at not less than the fair market value thereof, as such may be adjusted consistent with Representative's methodology for uniformly adjusting elements of multi-element agreements in effect as of the date hereof (i.e., the then-current prices actually recently agreed and paid by third parties for similar type and amount of inventory, if any, subject to any deal-wide discount or premium (historically referred to as a "GAAP adjustment")), (iii) to the extent such agreement is category-exclusive, it shall be deemed reasonable for Rangers, LLC to disapprove any such agreement if the value of such agreement that is allocated to Rangers, LLC (including Rangers, LLC's allocation of Arena Game Shared Sponsorship Assets) represents less than one-hundred-and-fifty percent (150%) of the sum of the NHL average yields in the applicable category in the year prior to such deal and (iv) any in-game integrations will be subject to Rangers, LLC's prior written approval (not to be unreasonably withheld, conditioned or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 <u>Inclusion of Tickets</u>. For avoidance of doubt, Representative may include a reasonable number of Tickets in Sponsorship Agreements ("<u>Sponsorship Tickets</u>"), consistent with past practice and subject to the prior approval of Rangers, LLC, and, subject to Section 4.1(c), Rangers, LLC will receive face value therefor or such lesser amounts as to which Rangers, LLC may agree.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 <u>Inclusion of Hospitality</u>. For avoidance of doubt, Representative may include a reasonable amount of Hospitality in Sponsorship Agreements ("<u>Sponsorship Hospitality</u>"), consistent with past practice and subject to the prior approval of Rangers, LLC, and, subject to Section 4.1(d), Rangers, LLC will receive rate card rates therefor or such lesser amounts as to which Rangers, LLC may agree.

**5. <u>Responsibilities</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Representative</u><u>'</u><u>s Sales and Service Responsibilities</u>. Representative accepts appointment as sales and service representative for the sale of Team Sponsorship Assets and the servicing of relationships with Rangers sponsors, including fulfillment/delivery/activation of Team Sponsorship Assets, efforts to retain and renew Rangers sponsors, collections and dispute resolutions, and all other activities relating to the relationship between Rangers, LLC and the Rangers' sponsors. Representative accepts all obligations attendant thereto hereunder and agrees to comply with the terms and conditions of this Agreement and to use commercially reasonable efforts to maximize the net revenue generated and collected from the sale of the Team Sponsorship Assets in connection with its duties hereunder. Representative shall provide a professional sales and service staff and appropriate resources to perform its duties hereunder. In addition, Representative shall establish (in consultation with Rangers, LLC) and maintain, at Representative's cost, throughout the Term an incentive sales and retention plan that is designed to ensure that Representative's sales and service force is appropriately incentivized to optimize the revenue generated with respect to the sales of Team Sponsorship Assets hereunder. Representative's performance of its duties hereunder shall be conducted in such a manner as to minimize interference with the Rangers' use of the Arena. Without limiting the foregoing, standards of quality and minimum levels of all duties to be performed hereunder by Representative, including staffing, shall be subject to League Rules and Rangers, LLC's reasonable satisfaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Books and Records</u>. Representative shall keep and maintain complete and accurate books and records of all financial and other matters relating to this Agreement. Representative shall provide all necessary internal accounting services related to the sale of the Team Sponsorship Assets hereunder, including accounts payable, billing, accounts receivable and collection, which shall be performed in a manner generally consistent with past practice. Representative shall furnish Rangers, LLC with financial information required to close its books each month promptly following the end of such month and such other information as is reasonably requested by Rangers, LLC for forecasting, budgeting and other business purposes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Content Standards and Approval</u>. All creative materials presented by Representative for use with respect to the Team Sponsorship Assets must comply with League Rules and Rangers, LLC's standards, and such creative materials shall be subject to Rangers, LLC's right to review and/or approve the same. Rangers, LLC reserves the right, in its sole discretion, to reject any creative material in the event of a conflict with Rangers, LLC's standards for such, or in the event that Rangers, LLC deems any such creative material to be defamatory, abusive, obscene or in violation of any Rangers, LLC policy or League Rules, or for reasons of quality. For clarity, Representative shall not present to Rangers, LLC nor propose any sale of Team Sponsorship Assets in connection with any sponsor that was previously rejected hereunder unless otherwise agreed in writing by Rangers, LLC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Sales Support</u>. In support of Representative's sales efforts hereunder, Rangers, LLC shall use commercially reasonable efforts to (a) regularly work with Representative to develop new Team Sponsorship Assets, (b) provide reasonable amounts of Rangers tickets and hospitality to Representative to be used for potential purchasers of Team Sponsorship Assets (such amounts as agreed to by the parties) and (c) otherwise assist and support such sales efforts, consistent with past practice, including provision of access to Rangers events and spaces (*e.g.*, access for tours of the Rangers' training center) for Representative's employees and Rangers sponsors and sponsorship prospects. With respect to the provision of tickets by Rangers, LLC to Representative pursuant to clause (b) of this Section 5.4, (i) the parties shall work in good faith to determine the number of tickets to be provided for any game, and have agreed upon an expected average per-game number of tickets with respect to the 2019-20 Contract Year and (ii) with respect to each Contract Year thereafter, the parties shall, as part of the annual budget process, agree on the appropriate average per-game number of tickets, taking into account such factors as actual utilization during the preceding Contract Year and the extent to which the utilization of such tickets advanced the goals of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Transition Obligations</u>. During the final Contract Year of the Term, Representative and Rangers, LLC shall reasonably cooperate and take all reasonable and appropriate actions to successfully transition the marketing and sale of Team Sponsorship Assets from Representative to Rangers, LLC or a third party designated by Rangers, LLC. Notwithstanding anything contained in Sections 1.1 or 1.2, as of the final Contract Year, the exclusivity granted to Representative herein shall not preclude Rangers, LLC from selling Team Sponsorship Assets with respect to periods following the expiration date, and the parties shall coordinate sales efforts in good faith during such final Contract Year.

**6. <u>Arbitration, Payments, Reporting Requirements, Restrictions</u> <u>& Approval Rights</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Arbitration</u>. Any arbitration brought under Section 4.4 of this Agreement shall be conducted by a single, neutral arbitrator in New York in accordance with the rules of the American Arbitration Association (the "<u>AAA</u>"). The arbitrator shall be mutually agreed upon by the parties or, failing such agreement within fifteen (15) days after the petition for arbitration is filed, such arbitrator shall be promptly selected in accordance with the rules of AAA relating thereto. The arbitrator shall render his/her decision as to the appropriate modification (if any) to the Annual Sales Target within ninety (90) days after his/her selection, and such decision shall be binding upon the parties. The fees and expenses of the arbitrator shall be shared equally by Representative and Rangers, LLC. The parties shall make all reasonable efforts to adhere to, and cause the arbitrator to adhere to, the time limits set forth herein. In the event that such time limits cannot be met despite such reasonable efforts, the validity of the arbitrator's decision shall not be affected as a result thereof and the arbitrator may extend such time limits as necessary.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Monthly Reports</u>. Subject to Section 1.3, during the Term, Representative shall pay Rangers, LLC, no more than ten (10) days after the end of each calendar month (each, a "<u>Monthly Net Sponsorship</u> <u>Payment</u>"), an amount consisting of Gross Revenue that has been received by Representative (including such amounts as are set forth in Sections 2 and 4 of the Team Sponsorship Allocation Agreement), less (a) any Commissions to which Representative is entitled under Section 4.1 hereof, (b) the Monthly SO/OH Payment due pursuant to Section 4.1A, (c) any payment due to Representative from Rangers, LLC pursuant to Section 3 of the Team Sponsorship Allocation Agreement and (d) Fulfillment Costs incurred by Representative. Each such payment shall be accompanied by a reasonably-detailed settlement report (each, a "<u>Monthly Report</u>"), which Monthly Report shall detail Gross Revenue and Commissions due thereon with respect to the applicable month, except that (i) the Monthly Report for June of each Contract Year shall be provided to Rangers, LLC on or before the immediately-following July 10<sup>th</sup> and (ii) if, due to the offsets set forth in (a), (b), (c) and/or (d), no payment from Representative to Rangers, LLC is due with respect to any month, Representative shall nevertheless timely provide a Monthly Report. Notwithstanding payment made in accordance with the foregoing provisions of this Section 6.2, Rangers, LLC may reasonably request additional information regarding such Monthly Report, and Representative agrees to provide such additional information. Rangers, LLC may dispute any amount in any Monthly Report. The parties shall promptly confer to resolve any such areas of disagreement, and each party shall be entitled to refer any disagreement that cannot be resolved to the Accounting Firm (as defined in the Arena License) in accordance with Section 9.06(c) of the Arena License. Notwithstanding the foregoing, the acceptance of a Monthly Report (or any portion thereof) and the payment of any amounts in accordance therewith shall be without prejudice to Rangers, LLC's rights to subsequently dispute any applicable amounts (including pursuant to Section 9.06(c) of the Arena License and Section 6.6 hereto). Representative shall pay Rangers, LLC any disputed amounts agreed upon by the parties or awarded by the Accounting Firm, as applicable, within five (5) business days after the dispute is resolved by the parties or by the Accounting Firm in accordance with Section 9.06(c) of the Arena License.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Data Exchange Obligations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The parties will cooperate in good faith with respect to reasonable requests for sales information and data, including Sponsorship Customer Data, as defined below, relating to the Team Sponsorship Assets during the Term in order to maximize the Gross Revenue from Representative's sale of the Team Sponsorship Assets hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Representative shall promptly provide to Rangers, LLC all consumer data that Representative obtains relating to Team Sponsorship Assets ("<u>Sponsorship Customer Data</u>"), and, subject to the sentence that follows, Rangers, LLC shall solely retain rights in such Sponsorship Customer Data. Notwithstanding the foregoing, Representative shall have the right to use such Sponsorship Customer Data that Representative has obtained in furtherance of its sales efforts under this Agreement, as well as for its own purposes unrelated thereto; provided, however, that Representative may not sell, lease or otherwise convey such Sponsorship Customer Data to any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As to all consumer data other than Sponsorship Customer Data, the rights to such as between the parties shall be the same as those set forth as between the Arena License Parties in Article X of the Arena License.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The obligations set forth in this Section 6.3 are subject to any applicable legal and regulatory requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Services</u>. Unless otherwise agreed to by the parties, Representative shall provide services with respect to accounting, billing and collection efforts in relation to the sale of Team Sponsorship Assets by Representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <u>Asset Inclusion Beyond Term</u>. Notwithstanding anything herein to the contrary, Representative acknowledges and agrees that Rangers, LLC must approve in writing in its sole discretion any inclusion of Team Sponsorship Assets with respect to periods which follow the (i) then-scheduled expiration date of the Term of this

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Agreement (i.e., after June 30, 2030 with respect to the Initial Term, and after the then-upcoming June 30<sup>th</sup> during any Renewal Term) or (ii) termination date for which notice of termination has been given, in each case, in Sponsorship Agreements (multi-element or otherwise) that are scheduled to expire after the conclusion of such Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 <u>Audit Rights</u>. Each party shall permit the other party, at its cost, either itself or through an independent auditor selected by the auditing party, during regular business hours at the offices of the party being audited, to inspect, make copies of and otherwise audit such books and records as are related to the services and sponsorship relationships hereunder upon no less than thirty (30) days' notice; provided, however, that (a) neither party may request an audit more than once per Contract Year and (b) no audit may cover a period covered by a prior audit. If, as a result of any such audit, it is determined that either party has underpaid the other party, such underpaying party shall reimburse the other party within thirty (30) days of its receipt of notice thereof for the underpayment (plus interest thereon). If such underpayment exceeds five percent (5%) of the amount properly due, the costs of such audit shall also be reimbursed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 <u>Collections</u>. Subject to any alternative procedure that may be agreed upon by the parties, Representative shall provide a monthly detailed list of outstanding accounts. Representative shall maintain reasonably detailed records of collection efforts. Rangers, LLC will, upon Representative's request, work with Representative (at the sole cost of Representative) in making collection efforts when the balance is sixty (60) days or more past due. In making its collections efforts, Representative shall use the same degree of diligence that it employs with respect to its own accounts receivable. With respect to the institution of legal proceedings in connection with unpaid invoices under any agreement, the party whose allocation of funds in such agreement is greater may determine whether such legal proceedings shall be instituted, regardless of whether such party is the contracting party, and the contracting party shall comply with such determination. The costs of legal proceedings shall be funded *pro rata* by the parties, regardless of who determined to bring such proceedings; provided that any reimbursement of such costs shall also be distributed *pro rata* among the parties. In the event that either party collects any previously-unpaid amounts directly, it will immediately notify the other party of such collection in writing. In the event of such a collection by Rangers, LLC, Representative may deduct the appropriate Commission attributable to such amount (calculated following deduction of any attorneys' fees incurred by Rangers, LLC) from its next monthly remittance pursuant to Sections 2 and 4 of the Team Sponsorship Allocation Agreement. For the avoidance of doubt, Representative shall have no liability to Rangers, LLC with respect to uncollected amounts, to the extent Representative is in compliance with this Agreement. Notwithstanding anything herein to the contrary, if any revenue payable to Representative by an affiliate of Representative is subject to sharing with Rangers, LLC hereunder, such revenue shall be deemed "collected" by Representative on the earlier of (i) the date on which such revenue is actually collected and (ii) the date on which such revenue is payable pursuant to the terms of the applicable contract or other arrangement.

**7. <u>Termination</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that either party (the "<u>Defaulting Party</u>") has failed to comply with any material provision of this Agreement and has not cured such noncompliance within thirty (30) days after delivery of written notice thereof from the other party (the "<u>Non-Defaulting Party</u>"), then this Agreement, at the option of the Non-Defaulting Party, may be terminated upon the date specified in a notice to the Defaulting Party, which date shall be not less than thirty (30) days after the date such notice is given to the Defaulting Party. The Non-Defaulting Party shall have all of its contractual rights hereunder, in addition to all other rights and remedies to which it may be entitled at law, in equity or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Rangers, LLC shall have the right to terminate this Agreement in accordance with the terms set forth in Section 4.5 above.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Either party shall have the right to terminate this Agreement upon written notice to the other party in the event that the other party becomes insolvent or files or has filed against it any action in the nature of bankruptcy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each party shall have the right to terminate this Agreement as of June 30, 2025 by providing written notice to the other party on or before March 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each party shall have the right to terminate this Agreement upon written notice to the other party within sixty (60) days after a change of control of either party (including a change of control of the terminating party), including any transaction in which any third party acquires substantially all of the assets of Rangers, LLC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In the event of any early termination of this Agreement and/or at the expiration of this Agreement, (i) Rangers, LLC shall continue to honor all Sponsorship Agreements properly entered into by Representative prior to such termination or expiration, and Representative shall continue to pay to Rangers, LLC its share with respect to such Sponsorship Agreements in accordance with the Team Sponsorship Allocation Agreement, (ii) both parties will perform their respective obligations hereunder that relate to periods prior to the effective date of termination but that, by their nature, are necessarily performed subsequent to such effective date (including, without limitation, in the case of Representative, billing, collections, provision of Monthly Reports and payments to Rangers, LLC) and (iii) Representative shall assign to Rangers, LLC (or any other party designated by Rangers, LLC) (A) each Sponsorship Agreement with respect to which the sponsorship assets purchased are exclusively or primarily Team Sponsorship Assets and (B) the rights under each other Sponsorship Agreement to theextent relating to Team Sponsorship Assets. Notwithstanding the foregoing, the post-termination/post-expiration Commissions payable hereunder for Gross Revenue received pursuant to Sponsorship Agreements following the effective date of expiration or termination of this Agreement shall be an amount equal to (x) twelve-and-one-half percent (12.5%) of applicable Gross Revenue, less (y) the reasonable costs incurred by Rangers, LLC and its Affiliates in connection with their performance of services that were previously performed by Representative and its Affiliates hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In the event that Representative properly terminates this Agreement pursuant to Subsection 7.1(a), Rangers, LLC (or its parent entity MSG Sports, LLC) shall, subject to the remainder of this Section 7.1(g), be solely responsible for all severance costs associated with any termination of any employee of Representative as of the effective date of such termination of this Agreement who supports, in whole or in part, Representative in carrying out its responsibilities hereunder that does not become an employee of Rangers, LLC or MSG Sports, LLC prior to, upon or promptly following the effective date of his or her termination. Representative shall use commercially reasonable efforts to minimize any such severance costs, which will (in any event and without limiting the foregoing) be reasonable and generally consistent with Representative's past practice for similarly-situated employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Payments</u>. In the event of termination of this Agreement for any reason, each party shall be obligated for all amounts payable by it pursuant to its terms.

**8. <u>Representations and Warranties</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>Representations and Warranties of Representative</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Representative represents and warrants to Rangers, LLC that (i) Representative is a limited liability company duly organized, validly existing and in good standing under the laws of Delaware, (ii) it has the power and authority to enter into this Agreement and to fully perform its obligations hereunder, (iii) this Agreement constitutes the valid, legal and binding obligation of Representative and is enforceable against Representative in accordance with its terms, and (iv) there are no actions, suits or proceedings of a material nature pending or, to its best knowledge, threatened against Representative that would affect its ability to enter into this Agreement or perform its obligations hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Representative represents, warrants and agrees that it shall not sell any Team Sponsorship Assets for Rangers, LLC (or Non-Team Sponsorship Assets and Arena Game Shared Sponsorship Assets, where sold with Team Sponsorship Assets) if Representative has actual knowledge that (i) Rangers, LLC's exhibition thereof (including, without limitation, any and all visual, literary, dramatic and musical material and software included therein) would infringe any copyright, trademark, patent or any other intellectual property, proprietary or other rights of any nature whatsoever of any person or entity and/or (ii) such assets do not comply (or would not comply, as sold by Representative) with all applicable rules, regulations and laws, including any applicable League Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Representative represents, warrants and agrees that it will use good faith efforts to ensure that every sponsor and agency that purchases Team Sponsorship Assets from Representative shall sign an agreement with Representative that includes an indemnity in favor of Rangers, LLC, its affiliated companies, directors, officers, employees, contractors, agents, successors and assigns relating to any sponsor advertising material to be utilized as part of the Team Sponsorship Assets that is generally consistent with past practice (the "<u>Rangers, LLC Indemnity</u>"). Representative shall provide Rangers, LLC with a copy of any such signed agreement (including the foregoing Rangers, LLC Indemnity) upon Rangers, LLC's request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Representative represents, warrants and agrees that it shall ensure that, unless otherwise approved by Rangers, LLC, each agency and sponsor to whom Representative sells Team Sponsorship Assets shall be subjected to the credit check and customer qualification procedures as are applied to Representatives sales of its own sponsorship assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <u>Representations and</u> <u>W</u><u>arranties of Rangers, LLC</u>. (a) Rangers, LLC represents and warrants to Representative that (i) it is duly organized, validly existing and in good standing under the laws of Delaware, (ii) it has the power and authority to enter into this Agreement and to fully perform its obligations hereunder, (iii) this Agreement constitutes the valid, legal and binding obligation of Rangers, LLC and is enforceable against Rangers, LLC in accordance with its terms and (iv) there are no actions, suits or proceedings of a material nature pending or to its best knowledge, threatened against Rangers, LLC that would affect its ability to enter into this Agreement or perform its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to any agreements that Rangers, LLC enters into directly with a sponsor or agency, as set forth in Section 1.3 above, for the purchase of Team Sponsorship Assets, Rangers, LLC represents, warrants and agrees that it will use good faith efforts to ensure that such sponsors and agencies sign an agreement with Rangers, LLC that includes an indemnity in favor of Representative, its affiliated companies, directors, officers, employees, contractors, agents, successors and assigns relating to any sponsor advertising material to be utilized as part of the Team Sponsorship Assets that is generally consistent with past practice (the "<u>Representative Indemnity</u>"). Rangers, LLC shall provide Representative with a copy of any such signed agreement (including the foregoing Representative Indemnity) upon Representative's request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <u>Survival</u>. The terms of this Section 8 shall survive the expiration or earlier termination of this agreement.

**9. <u>Indemnity</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. <u>Representative Indemnity</u>. Representative shall at all times, when requested, defend, indemnify and hold harmless Rangers, LLC and Rangers, LLC's owners (direct and indirect), related companies and affiliates and their respective directors, officers, employees, contractors, agents, successors and assigns (collectively, the "<u>Rangers, LLC Indemnitees</u>") from and against, and shall reimburse such Rangers, LLC Indemnitees with respect to, any and all claims, actions, liabilities, losses, damages, costs and expenses including, without limitation, reasonable attorneys' fees, disbursements and court costs, incurred by each Rangers, LLC Indemnitee by reason of or arising out of or in connection with any breach by Representative of any covenant, agreement, representation or warranty contained herein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 <u>Rangers, LLC Indemnity</u>. Rangers, LLC shall at all times, when requested, defend, indemnify and hold harmless Representative and Representative's owners (direct and indirect), related companies and affiliates and their respective directors, officers, employees, contractors, agents, successors and assigns (collectively, the "<u>Representative Indemnitees</u>") from and against, and shall reimburse such Representative Indemnitees with respect to, any and all claims, actions, liabilities, losses, damages, costs and expenses including, without limitation, reasonable attorneys' fees, disbursements and court costs, incurred by each Representative Indemnitee by reason of or arising out of or in connection with any breach by Rangers, LLC of any covenant, agreement, representation or warranty contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 <u>Indemnity Procedures</u>. If any complaint, lawsuit or enforcement action is received by or filed against any party entitled to the benefit of indemnification hereunder, or if such party receives notice of any matter for which indemnification is to be given hereunder, written notice thereof shall be given to the indemnifying party. The indemnifying party shall engage attorneys of its own choice at its own cost, risk and expense, subject to approval of the indemnified party, which shall not be unreasonably withheld. The indemnified party shall cooperate in the investigation, trial and defense of such claim, lawsuit or action and any appeal arising therefrom. The indemnified party may, at its own cost, retain its own counsel to participate in the investigation, trial and defense of such lawsuit or action and any appeal arising therefrom. The indemnifying party shall not settle any claim, lawsuit or enforcement action without the written consent of the indemnified party, which shall not be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 <u>Survival</u>. The terms of this Section 9 shall survive the expiration or earlier termination of this agreement.

**10. <u>Miscellaneous</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 <u>Governing Law</u>. This Agreement shall be construed and enforced in accordance with the laws of the State of New York without regard to laws regarding choice of law or jurisdiction. The parties consent to the jurisdiction of the courts located in the state of New York (state or federal, as applicable) for the limited purpose of enforcement of the provisions of this Agreement and related matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 <u>Severability</u>. If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall remain in full force and effect and shall in no way be affected, impaired or invalidated, unless such invalidity, voidness or unenforceability materially alters the purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 <u>Notices</u>. All notices, requests, consents, directions, demands, waivers and other communications provided for herein shall be in writing and shall be deemed given, made or served if personally delivered, sent by express overnight courier service, sent by certified mail, postage prepaid, return receipt requested, or telecopied to the applicable party at the address listed below:

If to Representative:

MSG Entertainment Group, LLC

2 Penn Plaza, 14<sup>th</sup> Floor

New York, NY 10121

Attention: EVP of Marketing Partnerships

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With a copy to:

MSG Entertainment Group, LLC

2 Pennsylvania Plaza, 19<sup>th</sup> Floor

New York, New York 10121

Attention: General Counsel

If to Rangers, LLC:

Rangers, LLC

2 Pennsylvania Plaza

New York, New York 10121

Attention: President

with a copy to:

Rangers, LLC

2 Pennsylvania Plaza

New York, New York 10121

Attention: General Counsel

If to the NHL:

*Prior to March 1, 2020*:

National Hockey League

1185 Avenue of the Americas

New York, NY 10036

Attention: General Counsel

*On or after March 1, 2020*:

National Hockey League

One Manhattan West

395 9th Avenue

New York, New York 10001

or as to each party, at such other addresses as shall be designated by such party in a written notice to the other party. All such notices shall be deemed effective (i) if personally delivered, on the date of delivery, (ii) if mailed, the first business day that is at least three (3) days after the date deposited in the U.S. Mail or (iii) if telecopied or sent by express overnight courier service, one business day after the date transmitted by telecopier or delivered to, or picked up by, a nationally recognized express overnight courier service for next day delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 <u>Assignment; Binding Upon Successors</u>. Representative shall have the right to assign this Agreement upon written notice to Rangers, LLC to any person or entity that acquires the Arena, provided that the assignee agrees in writing to assume all of Representative's obligations under this Agreement. Rangers, LLC shall have the right to assign this Agreement upon written notice to Representative to any person or entity that acquires the Team in accordance with League Rules, provided that the assignee agrees in writing to assume all of Rangers, LLC's obligations under this Agreement. Rangers, LLC shall further have the right to collaterally assign this Agreement to secure indebtedness of the Rangers incurred in accordance with League Rules. Except as set forth in this Section 10.4, neither party shall be permitted to assign this Agreement without the prior written consent of the other party, not to be unreasonably withheld, conditioned or delayed. A change in ownership of either party shall not be deemed an assignment under this Section 10.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 <u>Modifications, Amendments and Waivers</u>. This Agreement may be amended at any time only by the written agreement of both of the parties hereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 <u>Confidentiality</u>. The parties agree that this Agreement (including its existence and all provisions hereof), any and all information related to the business and activities of the other party that may be obtained from any source or may be developed as a result of this Agreement, and any other information of the other party that is designated proprietary or confidential or that any reasonable person would regard as such based on the nature or source of the information (collectively, "<u>Confidential Information</u>"), in each case, shall be kept confidential and shall not be disclosed to third parties, except that each party may disclose such Confidential Information only (a) to its agents, representatives, affiliated entities and employees who need to know and who shall agree to be bound by the terms and conditions of this Agreement (including without limitation the confidentiality obligations of this paragraph), (b) in response to a lawfully-served subpoena, (c) pursuant to any law, rule, regulation or request to produce documentation made by any governmental body (including, but not limited to, the Securities Exchange Commission), national securities exchange or in any administrative or judicial proceeding, (d) to any prospective lender, investor, financing entity or prospective purchaser of a direct or indirect interest in such party or the assets of such party, provided that any such person or entity agrees to be bound by the confidentiality obligations of this paragraph, (e) the NHL and any agents, representatives, affiliated entities and employees of the NHL and/or (f) as required by League Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7 <u>Interpretation</u>. The section headings contained in this Agreement are solely for purpose of convenience and shall neither be deemed a part of this Agreement nor used in any interpretation hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8 <u>Integration</u>. This Agreement contains all of the agreements of the parties hereto with respect to the matters covered hereby, and supersedes in their entirety any prior agreements, oral or written, of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9 <u>No Third-Party Beneficiaries</u>. The execution and delivery of this Agreement shall not be deemed to confer any rights upon, nor obligate either of the parties hereto, to any person or entity not a party to this Agreement; provided that the NHL is a third party beneficiary with respect to Section 10.12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.10 <u>Counterparts</u>. This Agreement may be executed in one or more counterparts, each of which shall constitute an original Agreement, but all of which together shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.11 <u>Limited Recourse</u>. Any recourse, action or claim to which either party is entitled hereunder shall extend only to the other party and not to any direct or indirect owner of such party or any agent of such party, past, present or future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.12 <u>Subordination</u>. This Agreement is subject to and limited by Representative's and Rangers, LLC's agreements with, and the rules, regulations and agreements of, all leagues (including, without limitation, League Rules and any restrictions on the sale of sponsorship assets or categories based on League Rules as a result of the NHL's sponsorship partnerships), associations, individual athletic teams, program suppliers and distributors, as such agreements, rules or regulations may from time to time be amended, entered into, interpreted, enacted, performed or enforced. Rangers, LLC and Representative hereby covenant to comply with all League Rules in connection with their respective performances hereunder. In the event of any conflict between this Agreement and League Rules, League Rules shall control and govern in all respects, and the performance of Rangers, LLC shall be excused to the extent that the same is prohibited by League Rules. Each agreement entered into by either Party in performance of its obligations hereunder (e.g., each Sponsorship Agreement entered into with a third party as described in Section 1.3) shall (a) be subject to League Rules (including any applicable approval rights) and (b) include all NHL-required subordination language.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.13 <u>No Joint Venture</u>. Nothing contained herein shall constitute or be deemed to constitute the parties as partners or joint venturers. The parties hereto are independent contractors responsible for their own obligations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.14 <u>Limitation of Liability</u>. EXCEPT TO THE EXTENT ARISING FROM A PARTY'S INDEMNIFICATION OBLIGATIONS WITH RESPECT TO THIRD PARTY CLAIMS PURSUANT TO SECTION 9 ABOVE, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES OR LOST PROFITS, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.15 <u>No Conflict</u>. Rangers, LLC acknowledges and agrees that, as part of its regular business practices, Representative and its affiliates undertake representations of the type contemplated hereunder for affiliates of Representative including the television networks known as "the MSG Network" and "MSG+," sports teams and venues that may have interests in conflict with those of MSG Sports or the Rangers. Rangers, LLC agrees that such representations by Representative or its affiliates shall not be construed or deemed to be a violation or breach of any obligation on the part of Representative to Rangers, LLC hereunder.

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above.

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| | |
|:---|:---|
| NEW YORK RANGERS, LLC | NEW YORK RANGERS, LLC |
| By: | /s/ Victoria M. Mink |
|  | Name: Victoria M. Mink |
|  | Title: Executive Vice President and Chief Financial Officer |

---

---

| | |
|:---|:---|
| MSG ENTERTAINMENT GROUP, LLC | MSG ENTERTAINMENT GROUP, LLC |
| By: | /s/ Philip D'Ambrosio |
|  | Name: Philip D'Ambrosio |
|  | Title: Senior Vice President, Treasurer |

---

## Exhibit 10.46

**Exhibit 10.46** 

**SPONSORSHIP SALES AND SERVICE REPRESENTATION AGREEMENT** 

**THIS SPONSORSHIP SALES AND SERVICE REPRESENTATION AGREEMENT** (this "<u>Agreement</u>") is made and entered into as of April 15, 2020 (the "<u>Effective Date</u>") by and between Knicks Holdings, LLC ("<u>Knicks, LLC</u>"), a Delaware limited liability company with offices at 2 Penn Plaza, New York, NY 10121, and MSG Entertainment Group, LLC (formerly MSG Sports & Entertainment, LLC), a Delaware limited liability company with offices at 2 Penn Plaza, New York, NY 10121 ("<u>Representative</u>").

**WHEREAS**, Representative directly or indirectly owns and operates, *inter alia*, the sports and entertainment complex known as Madison Square Garden (the "<u>Arena</u>"); and

**WHEREAS**, Knicks, LLC indirectly owns and operates the New York Knicks (the "<u>Knicks</u>"), the Westchester Knicks (the "<u>WCK</u>") and Knicks Gaming (collectively with the Knicks and WCK, the "<u>Teams</u>"); and

**WHEREAS**, Knicks, LLC desires to appoint Representative as sales and service representative for sponsorships with respect to the Teams, and Representative desires to be so appointed and to perform the services described herein, each on the terms and conditions set forth in this Agreement.

**NOW, THEREFORE**, in consideration of the mutual covenants and promises hereinafter set forth, the parties agree as follows:

**1. <u>Appointment</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Appointment</u>. Subject to the terms of this Agreement, Knicks, LLC hereby appoints Representative as its exclusive (except as otherwise provided in this Agreement) sales and service representative for all sponsorship benefits available for sale in connection with the Teams (such sponsorship benefits, the "<u>Team Sponsorship Assets</u>") to be sold in accordance with the terms and conditions set forth herein, which shall include, but not be limited to, the items listed on Schedule A hereto, as well as such other sellable sponsorship assets as the parties agree, after good faith consideration and discussion, are later developed and/or appropriately deemed to relate primarily to one or more of the Teams. As clarification, Team Sponsorship Assets hereunder shall not include Arena Game Shared Sponsorship Assets (as defined in that certain Arena License Agreement between Knicks, LLC's subsidiary New York Knicks, LLC ("<u>NYK, LLC</u>") and Representative's subsidiary MSG Arena, LLC (collectively, the "<u>Arena License Parties</u>") of even date herewith (the "<u>Arena License</u>")), Tickets for Knicks Events (each as defined in the Arena License) ("<u>Tickets</u>"), hospitality at Knicks Events (e.g., suite licenses, memberships to the Madison Club and The Loft, newly-created hospitality space sales) ("<u>Hospitality</u>") or Broadcast Advertising Inventory (as defined below), with respect to all of which Knicks, LLC shall have the exclusive rights or receive an agreed-upon allocation pursuant to that Arena License. "<u>Broadcast Advertising Inventory</u>" means any audio-visual, audio-only, video-only, graphical, text or any other form of advertising units or sponsorship rights, regardless of the medium (now known or hereafter developed) in which such advertising units or sponsorship rights are available or promoted, whether displayed or distributed via billboards, studio signage, tickers, "double-box commercials," banners, links, bugs, fly-outs, overlays, companion banners, or in-stream, pre-roll or post-roll and, for clarity, including promotional spots, product/service placement, designations, integrations and the like, in each case, associated with any Broadcast Rights (as defined in the Arena License) of the Knicks. Notwithstanding anything set forth herein, the parties acknowledge that various rights with respect to the Broadcast Advertising Inventory have been granted to MSG Networks Holdings, L.P. ("<u>MSGN</u>") via a certain Broadcast Rights Agreement between NYK, LLC and MSGN, and that MSGN has, in turn, via a certain advertising sales representation agreement (the "<u>Network Rep Agreement</u>"), granted to Representative the exclusive right to sell such Broadcast Advertising Inventory; nothing contained herein is intended to affect such grants of rights.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Exclusivity</u>. The exclusivity granted above means that, except as provided in Section 5.4, Knicks, LLC shall not (a) sell on its own behalf Team Sponsorship Assets without the prior written approval of Representative, such approval not to be unreasonably withheld, conditioned or delayed, or (b) appoint a third party to sell Team Sponsorship Assets on Knicks, LLC's behalf without the prior written approval of Representative. Notwithstanding anything to the contrary in this Agreement, Knicks, LLC may include Team Sponsorship Assets in agreements that Knicks, LLC or any of its affiliates enters into independently of Representative that are principally related to non-sponsorship matters (e.g., ticketing and Broadcast Rights agreements), as long as such inclusion does not violate the terms of a then-existing Sponsorship Agreement (as defined below), and (x) no revenue from such agreements shall be included in Gross Revenue (as defined below) and (y) no Commissions shall be received by Representative for such agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 (a) <u>Contracting Process</u>. Representative shall negotiate, on behalf of Knicks, LLC, sponsorship agreements that provide for the sale of, payment for and delivery of Team Sponsorship Assets. Such agreements, as well as any sponsorship agreements in existence as of the Effective Date that include Team Sponsorship Assets, shall hereinafter be referred to as "<u>Sponsorship Agreements</u>." Representative shall make commercially reasonable, good faith efforts to ensure that the appropriate Knicks-specific entity is the direct contracting party with all sponsors with respect to whom the sponsorship assets purchased are exclusively such Team's assets, and that NYK, LLC, or its parent, MSG Sports, LLC, is the direct contracting party with all sponsors with respect to whom the sponsorship assets purchased are exclusively or primarily Team Sponsorship Assets of more than one Team, and payments shall be made directly from the sponsor to such Knicks-specific entity, NYK, LLC or MSG Sports, LLC, as applicable, in such instances, subject to the final sentence of this subsection (a). Where Representative is unable to effect that outcome, or where Team Sponsorship Assets are included in multi-property deals that do not consist exclusively or primarily of Team Sponsorship Assets, Representative shall make commercially reasonable, good faith efforts to include applicable Team entities and/or NYK, LLC as express third-party beneficiaries in any such agreements entered into during the Term. It is agreed and acknowledged that Sponsorship Agreements that are entered into by NYK, LLC, MSG Sports, LLC or any other Knicks-specific entity that include Arena Game Shared Sponsorship Assets, Non-Team Sponsorship Assets and/or, during the term of the Network Rep Agreement, Broadcast Advertising Inventory shall be subject to the payment of appropriate allocations with respect to all revenue related to such assets, which allocations shall be agreed upon by the parties in advance of Knicks, LLC's approval of any such Sponsorship Agreement and set forth in Schedule 2 of the Team Sponsorship Allocation Agreement (defined in Section 3.3 below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Knicks Approval</u>. Notwithstanding anything herein to the contrary, Sponsorship Agreements that include Team Sponsorship Assets (and any amendment thereto or termination, extension or renewal thereof) shall be subject to the prior written approval of Knicks, LLC, which shall not be unreasonably withheld, conditioned or delayed; provided, however, that, in any instance in which Team Sponsorship Assets are not included in a potential Sponsorship Agreement, or an agreement is not reached, in either case by virtue of Knicks, LLC's failure to approve of such inclusion, the parties will discuss in good faith a downward adjustment to that Contract Year's Annual Sales Target (as defined in Section 4.3 below).

**2. <u>Term</u>.** Subject to the terms of this Agreement (including without limitation Section 7 hereof), the term of this Agreement shall commence as of the Effective Date and expire on June 30, 2030 (the "<u>Initial Term</u>"). The term of this Agreement shall automatically extend for one-year periods after the expiration of the Initial Term and any subsequent one-year renewal terms (each, a "<u>Renewal Term</u>" and, collectively with the Initial Term, the "<u>Term</u>"), unless either party delivers written notice to the other party at least twelve (12) months prior to the expiration of the Initial Term or six (6) months prior to the expiration of any Renewal Term that it wishes to terminate the Agreement effective as of the expiration of the then-applicable Term. As used herein, "<u>Contract Year</u>" means each twelve-month period during the Term commencing on July 1 and ending on the immediately-succeeding June 30; provided, however, that the period beginning on the Effective Date and ending June 30, 2020 (the "<u>Stub Year</u>") shall be deemed a Contract Year.

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**3. <u>Team Sponsorship Assets</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Availability of Assets</u>. Subject to League Rules (as defined in the Arena License), Knicks, LLC and Representative, in each case, to the extent within its control, shall at all times maintain availability of Team Sponsorship Assets that are included in any then-active Sponsorship Agreements, as well as such other Team Sponsorship Assets as Knicks, LLC may otherwise commit to a third party sponsor, unless either Knicks, LLC or Representative is able to provide one or more "make good" assets that are acceptable to the affected sponsor or elimination of the asset(s) is otherwise agreed upon by the parties. Representative shall comply and ensure that other applicable parties comply, with each Sponsorship Agreement in all respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Elimination and Addition of Assets</u>. With respect to any currently-available Team Sponsorship Assets that are not, at any given time, included in any then-active Sponsorship Agreements, Knicks, LLC may elect to eliminate such Team Sponsorship Assets with respect to any Contract Year (an "<u>Asset Reduction</u>"); provided that, to the extent that such elimination has or is expected to materially affect sales of Team Sponsorship Assets, the Annual Sales Target for such Contract Year will be adjusted pursuant to Section 4.4(a) below. Any addition of new Team Sponsorship Assets with respect to any Contract Year shall be similarly factored in when the parties set the Annual Sales Target, as well as in the contemplation of any mid-year adjustment pursuant to Section 4.4(b) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Make Goods</u>. With respect to all Team Sponsorship Assets sold pursuant to this Agreement, Knicks, LLC and Representative, in each case, to the extent within their respective control, shall use commercially reasonable efforts to provide such Team Sponsorship Assets to Representative or the respective sponsor (as appropriate) in accordance with the terms of the relevant Sponsorship Agreement. If Knicks, LLC is unable to provide such Team Sponsorship Assets at the appointed time or manner for any reason, then Representative, in negotiating refunds or "make good" sponsorship benefits to be delivered to the affected sponsor, shall (a) use commercially reasonable efforts to minimize any refunds or make goods as a result of non-delivery of Team Sponsorship Assets and (b) use commercially reasonable efforts to replace the undelivered Team Sponsorship Assets with alternative Team Sponsorship Assets (of the same Team as the undelivered benefits, if feasible), which alternative Team Sponsorship Assets Knicks, LLC would then provide (as approved by Knicks, LLC). The parties agree and acknowledge, however, that there may be instances in which make good obligations with respect to such undelivered Team Sponsorship Assets, due to the demands of the affected sponsor, are satisfied with a refund of cash or with sponsorship benefits other than Team Sponsorship Assets, in which case the provisions of Section 4.4(c) shall apply, and the payments due from Representative to Knicks, LLC under Schedule 1 of that certain Team Sponsorship Allocation Agreement between the parties of even date herewith (the "<u>Team Sponsorship Allocation Agreement</u>") shall be adjusted appropriately.

**4. <u>Commissions; Annual Sales Target; Rate Card</u>.<u> </u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Commissions</u>. Subject to the terms of this Agreement, in consideration of the services of Representative, Representative will, for each Contract Year after the Stub Year, and except as otherwise agreed by the parties, receive commissions with respect to each Contract Year on the sale of Team Sponsorship Assets ("<u>Commissions</u>") based on the following commission structure:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) except as set forth in subsections (c)-(g) and Section 7.1(d) below, with respect to Gross Revenue (as defined below) up to the Annual Sales Target for such Contract Year, the Commission shall be twelve-and-one-half percent (12.5%) of Gross Revenue;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) except as set forth in subsection (c)-(g) below, for any Gross Revenue above the Annual Sales Target for such Contract Year, the Commission shall be seventeen-and-one-half percent (17.5%) of such incremental Gross Revenue in excess of such Contract Year's Annual Sales Target;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with respect to Sponsorship Tickets (as defined in Section 4.8) included in any Sponsorship Agreement, Representative shall be entitled to no Commission thereon, unless separately agreed to in writing (email being sufficient) by Knicks, LLC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) with respect to any Sponsorship Hospitality (as defined in Section 4.9) included in any Sponsorship Agreement, Representative shall be entitled to no Commission thereon pursuant to this Agreement, and the parties understand and acknowledge that Representative and Knicks, LLC shall be entitled to compensation therefrom as set forth in Article V of the Arena License;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) with respect to any Team Sponsorship Assets delivered after the Term hereof in accordance with Section 7.1(f) below, the Commission shall be as set forth in such Section; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) with respect to any Team Sponsorship Asset (other than Sponsorship Tickets or Sponsorship Hospitality) for which the Fulfillment Costs (as defined below) exceed thirty (30%) of the value allocated to such asset, the Commission thereon shall be twelve-and-one-half percent (12.5%) of the margin on such asset (*i.e.*, allocated value less Fulfillment Costs, multiplied by 0.125). By way of example, if $100,000 is allocated to an applicable Team Sponsorship Asset in a Sponsorship Agreement, and there are $60,000 of Fulfillment Costs associated with delivering such asset, then Representative's commission with respect to such asset shall be $5,000. For avoidance of doubt, any commissions, fees or other amounts paid to or retained by agencies or other Representative-engaged third parties with respect to the sale of Team Sponsorship Assets shall be borne by Representative without any reduction in the amounts payable to Knicks, LLC from the gross amount of the sale other than the Commissions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Commissions shall be paid by Knicks, LLC to Representative on a monthly basis, via offset against amounts due from Representative to Knicks, LLC under Section 6.2 below or, only to the extent necessary, via wire transfer from Knicks, LLC to Representative. Each such payment shall be consistent with the amount set forth for Commissions for such month in the applicable Monthly Report (as defined in Section 6.2). To the extent that a Commissions payment is to be made by wire payment, such payment will be made within five (5) days following Knicks, LLC's receipt of the applicable Monthly Report; provided, however, that, to the extent that Knicks, LLC has requested additional information or raised a dispute as to a Monthly Report, either pursuant to Section 6.2, such payment shall be made within five (5) days following its receipt of such information and/or the resolution of the dispute in accordance with the process set forth in such Section.

"<u>Gross Revenue</u>" shall mean gross sales revenue actually received by Representative, Knicks, LLC, MSG Sports, LLC or the appropriate Knicks-specific entity without duplication, as applicable, from Team Sponsorship Assets contained in Sponsorship Agreements (and for this purpose, prior to any deduction of the applicable Commission). For avoidance of doubt, sponsorship fees under any Sponsorship Agreement shall count toward Gross Revenue for the purpose of this Agreement in the Sponsorship Agreement contract year to which such fees relate under such Sponsorship Agreement, consistent with Representative's past practice, regardless of any recognition of revenue pursuant to GAAP that is inconsistent therewith. Notwithstanding anything to the contrary contained herein, the parties acknowledge and agree that, with respect to any Contract Year, for purposes of (i) calculating the Commission pursuant to this Section 4.1 and (ii) determining whether or not the Annual Sales Target has been achieved, Gross Revenue shall not include any revenue generated from the sale of Arena Game Shared Sponsorship Assets or Non-Team Sponsorship Assets (each as defined in the Arena License) and/or Team

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Sponsorship Assets sold incrementally with respect to any playoff games ("<u>Playoff Sponsorship Assets</u>"). Except as otherwise agreed by the parties, the Commission payable on gross revenue generated from the sale of Playoff Sponsorship Assets (other than Sponsorship Tickets and Sponsorship Hospitality) shall be twelve-and-one-half percent (12.5%) of such gross revenue.

4.1A. <u>Sales Operations Payment</u>. With respect to any Contract Year, in addition to any Commission to which Representative is entitled, Knicks, LLC shall also pay to Representative an amount covering a share of the cost of Representative's sales and service staff and overhead (the "<u>Sales Operations Payment</u>"). With respect to the Stub Year, the Sales Operations Payment shall be $1,250,000; with respect to the 2020-21 Contract Year, the Sales Operations Payment shall be $5,000,000. With respect to the 2021-22 Contract Year and each Contract Year thereafter, the Sales Operations Payment will be 103% of the Sales Operations Payment for the immediately-preceding Contract Year. Representative may deduct and retain one-twelfth (1/12) (or, with respect to the Stub Year, the applicable pro-rated monthly amount) (either, a "<u>Monthly SO/OH Payment</u>") of the applicable Contract Year's Sales Operations Payment from each Monthly Net Sponsorship Payment it makes pursuant to Section 6.2 below; provided, however, that, with respect to any shortfall in any month (*i.e.*, any monthly portion of the Sales Operations Payment that is not paid by offset against that month's Monthly Net Sponsorship Payment to Knicks, LLC), Knicks, LLC shall, no more than fifteen (15) days following the end of such month, pay such shortfall to Representative. Notwithstanding anything herein to the contrary, the Sales Operations Payment shall terminate in the event of any termination of this Agreement, and the Sales Operations Payment for the Contract Year in which such termination occurs shall be reduced on a pro-rata basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Fulfillment Costs</u>. "<u>Fulfillment Costs</u>" shall mean the direct incremental out-of-pocket costs incurred by either Representative or Knicks, LLC in fulfilling Sponsorship Agreement obligations or otherwise delivering Team Sponsorship Assets that Representative has sold hereunder (*e.g.*, digital content creation, development of new inventory, costs of T-shirts, etc.); provided, however, that, for avoidance of doubt, "Fulfillment Costs" shall not include Commissions payable to Representative, Representative overhead (including employee compensation) or sales costs (*e.g.*, sales materials, research, travel and entertainment, training, CRM, software, client hospitality, agency commission, etc.). Representative and Knicks, LLC shall regularly discuss and collaborate in good faith to determine the appropriate levels of Fulfillment Costs with respect to Team Sponsorship Assets, taking into account such considerations as sponsor satisfaction, Team brand maintenance, etc. Except as otherwise agreed by the parties, Knicks, LLC shall be responsible for paying all such Fulfillment Costs that either party incurs, and Representative may deduct from the payments it makes to Knicks, LLC pursuant to Section 6.2 hereof the amounts of such Fulfillment Costs that it has directly incurred in accordance with this Agreement, provided that, upon any such deduction, it shall provide to Knicks, LLC invoices or receipts reflecting such costs concurrently with its delivery of the relevant payment. Notwithstanding anything herein to the contrary, Representative shall not incur Fulfillment Costs payable by Knicks, LLC without the prior written approval of Knicks, LLC (including approval in any deal budget) or any Fulfillment Costs in excess of those previously approved by Knicks, LLC including as expressly set forth in any deal budget.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Annual Sales Target</u>. "<u>Annual Sales Target</u>" shall mean, for each Contract Year following the Stub Year, an amount to be mutually agreed by the parties (determination of which, if necessary, will be escalated to a senior executive of each party) following good faith discussions for a reasonable period of time prior to and/or during Knicks, LLC's budget process for the applicable Contract Year; provided, however, that, in the event that the parties are unable to agree on an Annual Sales Target for any Contract Year, the Annual Sales Target will be 103% of the Annual Sales Target for the immediately-preceding Contract Year (provided further that the Annual Sales Target for the 2020-21 Contract Year will be no less than the gross sales revenue actually received by Representative, Knicks, LLC, MSG Sports, LLC or the appropriate Knicks-specific entity without duplication, as applicable, from Team Sponsorship Assets contained in Sponsorship Agreements during the 2019-20 fiscal year (*i.e.*, July 1, 2019 through June 30, 2020)). For clarity, the Annual Sales Target amounts shall not include Gross Revenue from the sale of Arena Game Shared Sponsorship Assets, Non-Team Sponsorship Assets and/or Playoff Sponsorship Assets.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Adjustments to Annual Sales Target</u>. The Annual Sales Target for any Contract Year may be adjusted in each of the following instances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event of a material Asset Reduction or if there is any addition of new Team Sponsorship Assets, in each case, as described in Section 3.2 above, the Annual Sales Target for the applicable Contract Year will, if requested by either party, be adjusted upward or downward, as applicable by the allocated value of the applicable additional or undelivered Team Sponsorship Assets or the past or expected value of the affected sales category and/or asset inventory, as mutually agreed by the parties following good faith discussions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of League Rules changes that either newly permit or preclude the sale of certain Team Sponsorship Assets (*e.g.*, the National Basketball Association (the "<u>NBA</u>") creating new team sponsorship inventory, NBA termination of a jersey patch program) or sales of advertising in a particular sales category in advance of or within any Contract Year, which changes have or are expected to have a material impact on sales of Team Sponsorship Assets, the Annual Sales Target for such Contract Year may be adjusted upward or downward, as applicable, by the value of the applicable Team Sponsorship Assets or the past or expected value of the affected sales category and/or asset inventory, as applicable, as mutually agreed by the parties following good faith discussions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that, as contemplated in Section 3.3 above, make good obligations with respect to undelivered Team Sponsorship Assets are satisfied with sponsorship benefits other than Team Sponsorship Assets or with a cash refund, the Annual Sales Target for the applicable Contract Year will, if requested by Representative, be adjusted downward by the allocated value of the applicable undelivered Team Sponsorship Assets or cash refund, as applicable, as mutually agreed by the parties following good faith discussions.

If, with respect to good faith discussions as to an adjustment as contemplated above, by the end of thirty (30) days of such discussions (during which, if necessary, such discussions will be escalated to a senior executive of each party), the parties have not agreed on an appropriate adjustment to the Annual Sales Target, then within twenty (20) days of the expiration of such thirty-day period, either party shall have the right to submit to binding arbitration the issue of the appropriate adjustment to the Annual Sales Target. Any such arbitration shall be conducted in accordance with Section 6 below, or such other procedures as the parties agree upon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Shortfalls</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that either (i) the Gross Revenue for any Contract Year is less than 80% of the Annual Sales Target for such Contract Year, or (ii) with respect to the 2021-22 Contract Year and beyond, the sum of the Gross Revenue for any Contract Year (the "<u>Base Year</u>") and the Gross Revenue for the Contract Year immediately-preceding the Base Year is less than 85% of the sum of the Annual Sales Target for such immediately-preceding Contract Year and the Annual Sales Target for such Base Year (the difference between the Gross Revenue and the Annual Sales Target for such Contract Year, or between the average Gross Revenue and average Annual Sales Targets for such Contract Year and Base Year, as the case may be, the "<u>Shortfall</u>"), then Knicks, LLC will have the right to request a payment (the "<u>Shortfall Payment</u>") from Representative in an amount equal to the Shortfall (less any Commissions that would have applied if such amount were Gross Revenue) within thirty (30) days following its receipt of the June Monthly Report (as defined in Section 6.2 below). Knicks, LLC shall designate the applicable Shortfall in its request (*i.e.*, if both (i) and (ii) of the first sentence of this Section 4.5 are triggered, Knicks, LLC may choose the Shortfall it wishes to designate in its request to Representative). Except as provided in subsections (b) and (c) below with respect to a Shortfall relating to the

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final Contract Year of the Agreement alone, Representative may elect as to whether or not to make a requested Shortfall Payment. If Representative does not make such Shortfall Payment to Knicks, LLC within thirty (30) days after receipt of Knicks, LLC's request, then, within thirty (30) days of the earlier of Representative's written notice to Knicks, LLC of such fact or the expiration of such thirty (30) day period, Knicks, LLC will have the right, exercisable by written notice to Representative, to terminate this Agreement effective, at Knicks, LLC's election and as set forth in such notice, either (i) sixty (60) days following the receipt of such notice or (ii) at the expiration of the then-current Contract Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If Knicks, LLC requests a Shortfall Payment with respect to a Shortfall in connection with the final Contract Year only, Representative shall pay, within thirty (30) days following the end of such Contract Year, such Shortfall, and may not elect not to make such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For avoidance of doubt, if Representative makes a Shortfall Payment to Knicks, LLC relating to a Contract Year or pair of Contract Years, the Annual Sales Target(s) will be deemed to have been met for such Contract Year(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>Rate Card</u>. Knicks, LLC's budgeted rate card for Team Sponsorship Assets (the "<u>Rate Card</u>") for the 2019-20 Contract Year has been agreed upon by the parties and is attached hereto as Schedule B. For subsequent Contract Years, such Rate Card will be set by Knicks, LLC following consultation with Representative as part of Knicks, LLC's annual budgeting process, and such Rate Card shall in each instance be set at levels that do not impede Representative's ability to meet the Annual Sales Target for the relevant Contract Year. Representative will not sell any Team Sponsorship Assets below such Rate Card by more than twenty percent (20%) without Knicks, LLC's prior written approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 <u>Inclusion in Multi</u><u>-Property Sponsorships</u>. Representative may, during the Term, include Team Sponsorship Assets in other multi-property Sponsorship Agreements (*i.e.,* marketing and sponsorship arrangements that include Team Sponsorship Assets as well as Non-Team Sponsorship Assets and/or Arena Game Shared Sponsorship Assets, each as defined in the Arena License), provided that, (i) without limiting Knicks, LLC's approval right with respect to all Sponsorship Agreements, Knicks, LLC has approved such inclusion (which approval shall not be unreasonably withheld, conditioned or delayed), (ii) unless otherwise agreed by Knicks, LLC, such Team Sponsorship Assets shall be valued at not less than the fair market value thereof, as such may be adjusted consistent with Representative's methodology for uniformly adjusting elements of multi-element agreements in effect as of the date hereof (*i.e.*, the then-current prices actually recently agreed and paid by third parties for similar type and amount of inventory, if any, subject to any deal-wide discount or premium (historically referred to as a "GAAP adjustment")), (iii) to the extent such agreement is category-exclusive, it shall be deemed reasonable for Knicks, LLC to disapprove any such agreement if the value of such agreement that is allocated to Knicks, LLC (including Knicks, LLC's allocation of Arena Game Shared Sponsorship Assets) represents less than one-hundred-fifty percent (150%) of the sum of the NBA average yields in the applicable category in the year prior to such deal (which yield shall be as reasonably determined by the NBA) and (iv) any in-game integrations will be subject to Knicks, LLC's prior written approval (not to be unreasonably withheld, conditioned or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 <u>Inclusion of Tickets</u>. For avoidance of doubt, Representative may include a reasonable number of Tickets in Sponsorship Agreements ("<u>Sponsorship Tickets</u>"), consistent with past practice and subject to the prior approval of Knicks, LLC, and, subject to Section 4.1(c), Knicks, LLC will receive face value therefor or such lesser amounts as to which Knicks, LLC may agree.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 <u>Inclusion of Hospitality</u>. For avoidance of doubt, Representative may include a reasonable amount of Hospitality in Sponsorship Agreements ("<u>Sponsorship Hospitality</u>"), consistent with past practice and subject to the prior approval of Knicks, LLC, and, subject to Section 4.1(d), Knicks, LLC will receive rate card rates therefor or such lesser amounts as to which Knicks, LLC may agree.

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**5. <u>Responsibilities</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Representative</u><u>'</u><u>s Sales and Service Responsibilities</u>. Representative accepts appointment as sales and service representative for the sale of Team Sponsorship Assets and the servicing of relationships with Team sponsors, including fulfillment/delivery/activation of Team Sponsorship Assets, efforts to retain and renew Team sponsors, collections and dispute resolutions, and all other activities relating to the relationship between Knicks, LLC and the Teams' respective sponsors. Representative accepts all obligations attendant thereto hereunder and agrees to comply with the terms and conditions of this Agreement and to use commercially reasonable efforts to maximize the net revenue generated and collected from the sale of the Team Sponsorship Assets in connection with its duties hereunder. Representative shall provide a professional sales and service staff and appropriate resources to perform its duties hereunder. In addition, Representative shall establish (in consultation with Knicks, LLC) and maintain, at Representative's cost, throughout the Term an incentive sales and retention plan that is designed to ensure that Representative's sales and service force is appropriately incentivized to optimize the revenue generated with respect to the sales of Team Sponsorship Assets hereunder. Representative's performance of its duties hereunder shall be conducted in such a manner as to minimize interference with each Team's use of the Arena. Without limiting the foregoing, standards of quality and minimum levels of all duties to be performed hereunder by Representative, including staffing, shall be subject to League Rules and Knicks, LLC's reasonable satisfaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Books and Records</u>. Representative shall keep and maintain complete and accurate books and records of all financial and other matters relating to this Agreement. Representative shall provide all necessary internal accounting services related to the sale of the Team Sponsorship Assets hereunder, including accounts payable, billing, accounts receivable and collection, which shall be performed in a manner generally consistent with past practice. Representative shall furnish Knicks, LLC with financial information required to close its books each month promptly following the end of such month and such other information as is reasonably requested by Knicks, LLC for forecasting, budgeting and other business purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Content Standards and Approval</u>. All creative materials presented by Representative for use with respect to the Team Sponsorship Assets must comply with League Rules and Knicks, LLC's standards, and such creative materials shall be subject to Knicks, LLC's right to review and/or approve the same. Knicks, LLC reserves the right, in its sole discretion, to reject any creative material in the event of a conflict with Knicks, LLC's standards for such, or in the event that Knicks, LLC deems any such creative material to be defamatory, abusive, obscene or in violation of any Knicks, LLC policy or League Rules, or for reasons of quality. For clarity, Representative shall not present to Knicks, LLC nor propose any sale of Team Sponsorship Assets in connection with any sponsor that was previously rejected hereunder unless otherwise agreed in writing by Knicks, LLC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Sales Support</u>. In support of Representative's sales efforts hereunder, Knicks, LLC shall use commercially reasonable efforts to (a) regularly work with Representative to develop new Team Sponsorship Assets, (b) provide reasonable amounts of Team tickets and hospitality to Representative to be used for potential purchasers of Team Sponsorship Assets (such amounts as agreed to by the parties), and (c) otherwise assist and support such sales efforts, consistent with past practice, including provision of access to Teams events and spaces (*e.g.*, access for tours of Teams' training center) for Representative's employees and Teams sponsors and Teams sponsorship prospects. With respect to the provision of tickets by Knicks, LLC to Representative pursuant to clause (b) of this Section 5.4, (i) the parties shall work in good faith to determine the number of tickets to be provided for any game, and have agreed upon an expected average per-game number of tickets with respect to the 2019-20 Contract Year and (ii) with respect to each Contract Year thereafter, the parties shall, as part of the annual budget process, agree on the appropriate average per-game number of tickets, taking into account such factors as actual utilization during the preceding Contract Year and the extent to which the utilization of such tickets advanced the goals of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Transition Obligations</u>. During the final Contract Year of the Term, Representative and Knicks, LLC shall reasonably cooperate and take all reasonable and appropriate actions to successfully transition the marketing and sale of Team Sponsorship Assets from Representative to Knicks, LLC or a third party designated by Knicks, LLC. Notwithstanding anything contained in Sections 1.1 or 1.2, as of the final Contract Year, the exclusivity granted to Representative herein shall not preclude Knicks, LLC from selling Team Sponsorship Assets with respect to periods following the expiration date, and the parties shall coordinate sales efforts in good faith during such final Contract Year.

**6. <u>Arbitration, Payments, Reporting Requirements, Restrictions</u> <u>& Approval Rights</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Arbitration</u>. Any arbitration brought under Section 4.4 of this Agreement shall be conducted by a single, neutral arbitrator in New York in accordance with the rules of the American Arbitration Association (the "<u>AAA</u>"). The arbitrator shall be mutually agreed upon by the parties or, failing such agreement within fifteen (15) days after the petition for arbitration is filed, such arbitrator shall be promptly selected in accordance with the rules of AAA relating thereto. The arbitrator shall render his/her decision as to the appropriate modification (if any) to the Annual Sales Target within ninety (90) days after his/her selection, and such decision shall be binding upon the parties. The fees and expenses of the arbitrator shall be shared equally by Representative and Knicks, LLC. The parties shall make all reasonable efforts to adhere to, and cause the arbitrator to adhere to, the time limits set forth herein. In the event that such time limits cannot be met despite such reasonable efforts, the validity of the arbitrator's decision shall not be affected as a result thereof and the arbitrator may extend such time limits as necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Monthly Reports</u>. Subject to Section 1.3, during the Term, Representative shall pay Knicks, LLC, no more than ten (10) days after the end of each calendar month (each, a "<u>Monthly Net Sponsorship Payment</u>"), an amount consisting of Gross Revenue that has been received by Representative (including such amounts as are set forth in Sections 2 and 4 of the Team Sponsorship Allocation Agreement), less (a) any Commissions to which Representative is entitled under Section 4.1 hereof, (b) the Monthly SO/OH Payment due pursuant to Section 4.1A, (c) any payment due to Representative from Knicks, LLC pursuant to Section 3 of the Team Sponsorship Allocation Agreement and (d) Fulfillment Costs incurred by Representative. Each such payment shall be accompanied by a reasonably-detailed settlement report (each, a "<u>Monthly Report</u>"), which Monthly Report shall detail Gross Revenue and Commissions due thereon with respect to the applicable month, except that (i) the Monthly Report for June of each Contract Year shall be provided to Knicks, LLC on or before the immediately-following July 10<sup>th</sup> and (ii) if, due to the offsets set forth in (a), (b), (c) and/or (d), no payment from Representative to Knicks, LLC is due with respect to any month, Representative shall nevertheless timely provide a Monthly Report. Notwithstanding payment made in accordance with the foregoing provisions of this Section 6.2, Knicks, LLC may reasonably request additional information regarding such Monthly Report, and Representative agrees to provide such additional information. Knicks, LLC may dispute any amount in any Monthly Report. The parties shall promptly confer to resolve any such areas of disagreement, and each party shall be entitled to refer any disagreement that cannot be resolved to the Accounting Firm (as defined in the Arena License) in accordance with Section 9.06(c) of the Arena License. Notwithstanding the foregoing, the acceptance of a Monthly Report (or any portion thereof) and the payment of any amounts in accordance therewith shall be without prejudice to Knicks, LLC's rights to subsequently dispute any applicable amounts (including pursuant to Section 9.06(c) of the Arena License and Section 6.6 hereto). Representative shall pay Knicks, LLC any disputed amounts agreed upon by the parties or awarded by the Accounting Firm, as applicable, within five (5) business days after the dispute is resolved by the parties or by the Accounting Firm in accordance with Section 9.06(c) of the Arena License.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Data Exchange Obligations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The parties will cooperate in good faith with respect to reasonable requests for sales information and data, including Sponsorship Customer Data, as defined below, relating to the Team Sponsorship Assets during the Term in order to maximize the Gross Revenue from Representative's sale of the Team Sponsorship Assets hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Representative shall promptly provide to Knicks, LLC all consumer data that Representative obtains relating to Team Sponsorship Assets ("<u>Sponsorship Customer Data</u>"), and, subject to the sentence that follows, Knicks, LLC shall solely retain rights in such Sponsorship Customer Data. Notwithstanding the foregoing, Representative shall have the right to use such Sponsorship Customer Data that Representative has obtained in furtherance of its sales efforts under this Agreement, as well as for its own purposes unrelated thereto; provided, however, that Representative may not sell, lease or otherwise convey such Sponsorship Customer Data to any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As to all consumer data other than Sponsorship Customer Data, the rights to such as between the parties shall be the same as those set forth as between the Arena License Parties in Article X of the Arena License.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The obligations set forth in this Section 6.3 are subject to any applicable legal and regulatory requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Services</u>. Unless otherwise agreed to by the parties, Representative shall provide services with respect to accounting, billing and collection efforts in relation to the sale of Team Sponsorship Assets by Representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <u>Asset Inclusion Beyond Term</u>. Notwithstanding anything herein to the contrary, Representative acknowledges and agrees that Knicks, LLC must approve in writing in its sole discretion any inclusion of Team Sponsorship Assets with respect to periods which follow the (i) then-scheduled expiration date of the Term of this Agreement (*i.e.*, after June 30, 2030 with respect to the Initial Term, and after the then-upcoming June 30<sup>th</sup> during any Renewal Term) or (ii) termination date for which notice of termination has been given, in each case, in Sponsorship Agreements (multi-element or otherwise) that are scheduled to expire after the conclusion of such Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 <u>Audit Rights</u>. Each party shall permit the other party, at its cost, either itself or through an independent auditor selected by the auditing party, during regular business hours at the offices of the party being audited, to inspect, make copies of and otherwise audit such books and records as are related to the services and sponsorship relationships hereunder upon no less than thirty (30) days' notice; provided, however, that (a) neither party may request an audit more than once per Contract Year and (b) no audit may cover a period covered by a prior audit. If, as a result of any such audit, it is determined that either party has underpaid the other party, such underpaying party shall reimburse the other party within thirty (30) days of its receipt of notice thereof for the underpayment (plus interest thereon). If such underpayment exceeds five percent (5%) of the amount properly due, the costs of such audit shall also be reimbursed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 <u>Collections</u>. Subject to any alternative procedure that may be agreed upon by the parties, Representative shall provide a monthly detailed list of outstanding accounts. Representative shall maintain reasonably detailed records of collection efforts. Knicks, LLC will, upon Representative's request, work with Representative (at the sole cost of Representative) in making collection efforts when the balance is sixty (60) days or more past due. In making its collections efforts, Representative shall use the same degree of diligence that it

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employs with respect to its own accounts receivable. With respect to the institution of legal proceedings in connection with unpaid invoices under any agreement, the party whose allocation of funds in such agreement is greater may determine whether such legal proceedings shall be instituted, regardless of whether such party is the contracting party, and the contracting party shall comply with such determination. The costs of legal proceedings shall be funded *pro rata* by the parties, regardless of who determined to bring such proceedings; provided that any reimbursement of such costs shall also be distributed *pro rata* among the parties. In the event that either party collects any previously-unpaid amounts directly, it will immediately notify the other party of such collection in writing. In the event of such a collection by Knicks, LLC, Representative may deduct the appropriate Commission attributable to such amount (calculated following deduction of any attorneys' fees incurred by Knicks, LLC) from its next monthly remittance pursuant to Sections 2 and 4 of the Team Sponsorship Allocation Agreement. For the avoidance of doubt, Representative shall have no liability to Knicks, LLC with respect to uncollected amounts to the extent Representative is in compliance with this Agreement. Notwithstanding anything herein to the contrary, if any revenue payable to Representative by an affiliate of Representative is subject to sharing with Knicks, LLC hereunder, such revenue shall be deemed "collected" by Representative on the earlier of (i) the date on which such revenue is actually collected and (ii) the date on which such revenue is payable pursuant to the terms of the applicable contract or other arrangement.

**7. <u>Termination</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that either party (the "<u>Defaulting Party</u>") has failed to comply with any material provision of this Agreement and has not cured such noncompliance within thirty (30) days after delivery of written notice thereof from the other party (the "<u>Non-Defaulting Party</u>"), then this Agreement, at the option of the Non-Defaulting Party, may be terminated upon the date specified in a notice to the Defaulting Party, which date shall be not less than thirty (30) days after the date such notice is given to the Defaulting Party. The Non-Defaulting Party shall have all of its contractual rights hereunder, in addition to all other rights and remedies to which it may be entitled at law, in equity or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Knicks, LLC shall have the right to terminate this Agreement in accordance with the terms set forth in Section 4.5 above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Either party shall have the right to terminate this Agreement upon written notice to the other party in the event that the other party becomes insolvent or files or has filed against it any action in the nature of bankruptcy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each party shall have the right to terminate this Agreement as of June 30, 2025 by providing written notice to the other party on or before March 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each party shall have the right to terminate this Agreement upon written notice to the other party within sixty (60) days after a change of control of either party (including a change of control of the terminating party), including any transaction in which any third party acquires substantially all of the assets of Knicks, LLC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In the event of any early termination of this Agreement and/or at the expiration of this Agreement, (i) Knicks, LLC shall continue to honor all Sponsorship Agreements properly entered into by Representative prior to such termination or expiration, and Representative shall continue to pay to Knicks, LLC its share with respect to such Sponsorship Agreements in accordance with the Team Sponsorship Allocation Agreement, (ii) both parties will perform their respective obligations hereunder that relate to periods prior to the effective date of termination but that, by their nature, are necessarily performed subsequent to such effective date (including, without limitation,

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in the case of Representative, billing, collections, provision of Monthly Reports and payments to Knicks, LLC) and (iii) Representative shall assign to Knicks, LLC (or any other party designated by Knicks, LLC) (A) each Sponsorship Agreement with respect to which the sponsorship assets purchased are exclusively or primarily Team Sponsorship Assets and (B) the rights under each other Sponsorship Agreement to the extent relating to Team Sponsorship Assets. Notwithstanding the foregoing, the post-termination/post-expiration Commissions payable hereunder for Gross Revenue received pursuant to Sponsorship Agreements following the effective date of expiration or termination of this Agreement shall be an amount equal to (x) twelve-and-one-half percent (12.5%) of applicable Gross Revenue, less (y) the reasonable costs incurred by Knicks, LLC and its Affiliates in connection with their performance of services that were previously performed by Representative and its Affiliates hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In the event that Representative properly terminates this Agreement pursuant to Subsection 7.1(a), Knicks, LLC (or its parent entity MSG Sports, LLC) shall, subject to the remainder of this Section 7.1(g), be solely responsible for all severance costs associated with any termination of any employee of Representative as of the effective date of such termination of this Agreement who supports, in whole or in part, Representative in carrying out its responsibilities hereunder that does not become an employee of Knicks, LLC or MSG Sports, LLC prior to, upon or promptly following the effective date of his or her termination. Representative shall use commercially reasonable efforts to minimize any such severance costs, which will (in any event and without limiting the foregoing) be reasonable and generally consistent with Representative's past practice for similarly-situated employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Payments</u>. In the event of termination of this Agreement for any reason, each party shall be obligated for all amounts payable by it pursuant to its terms.

**8. <u>Representations and Warranties</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>Representations and Warranties of Representative</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Representative represents and warrants to Knicks, LLC that (i) Representative is a limited liability company duly organized, validly existing and in good standing under the laws of Delaware, (ii) it has the power and authority to enter into this Agreement and to fully perform its obligations hereunder, (iii) this Agreement constitutes the valid, legal and binding obligation of Representative and is enforceable against Representative in accordance with its terms, and (iv) there are no actions, suits or proceedings of a material nature pending or, to its best knowledge, threatened against Representative that would affect its ability to enter into this Agreement or perform its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Representative represents, warrants and agrees that it shall not sell any Team Sponsorship Assets for Knicks, LLC (or Non-Team Sponsorship Assets and Arena Game Shared Sponsorship Assets, where sold with Team Sponsorship Assets) if Representative has actual knowledge that (i) Knicks, LLC's exhibition thereof (including, without limitation, any and all visual, literary, dramatic and musical material and software included therein) would infringe any copyright, trademark, patent or any other intellectual property, proprietary or other rights of any nature whatsoever of any person or entity and/or (ii) such assets do not comply (or would not comply, as sold by Representative) with all applicable rules, regulations and laws, including any applicable League Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Representative represents, warrants and agrees that it will use good faith efforts to ensure that every sponsor and agency that purchases Team Sponsorship Assets from Representative shall sign an agreement with Representative that includes an indemnity in favor of Knicks, LLC, its affiliated companies, directors, officers, employees, contractors, agents, successors and assigns relating to any sponsor advertising material to be utilized as part of the Team Sponsorship Assets that is generally consistent with past practice (the "<u>Knicks, LLC Indemnity</u>"). Representative shall provide Knicks, LLC with a copy of any such signed agreement (including the foregoing Knicks, LLC Indemnity) upon Knicks, LLC's request.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Representative represents, warrants and agrees that it shall ensure that, unless otherwise approved by Knicks, LLC, each agency and sponsor to whom Representative sells Team Sponsorship Assets shall be subjected to the credit check and customer qualification procedures as are applied to Representatives sales of its own sponsorship assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <u>Representations and</u> <u>W</u><u>arranties of Knicks, LLC</u>. (a) Knicks, LLC represents and warrants to Representative that (i) it is duly organized, validly existing and in good standing under the laws of Delaware, (ii) it has the power and authority to enter into this Agreement and to fully perform its obligations hereunder, (iii) this Agreement constitutes the valid, legal and binding obligation of Knicks, LLC and is enforceable against Knicks, LLC in accordance with its terms and (iv) there are no actions, suits or proceedings of a material nature pending or to its best knowledge, threatened against Knicks, LLC that would affect its ability to enter into this Agreement or perform its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to any agreements that Knicks, LLC enters into directly with a sponsor or agency, as set forth in Section 1.3 above, for the purchase of Team Sponsorship Assets, Knicks, LLC represents, warrants and agrees that it will use good faith efforts to ensure that such sponsors and agencies sign an agreement with Knicks, LLC that includes an indemnity in favor of Representative, its affiliated companies, directors, officers, employees, contractors, agents, successors and assigns relating to any sponsor advertising material to be utilized as part of the Team Sponsorship Assets that is generally consistent with past practice (the "<u>Representative Indemnity</u>"). Knicks, LLC shall provide Representative with a copy of any such signed agreement (including the foregoing Representative Indemnity) upon Representative's request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <u>Survival</u>. The terms of this Section 8 shall survive the expiration or earlier termination of this agreement.

**9. <u>Indemnity</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. <u>Representative Indemnity</u>. Representative shall at all times, when requested, defend, indemnify and hold harmless Knicks, LLC and Knicks, LLC's owners (direct and indirect), related companies and affiliates and their respective directors, officers, employees, contractors, agents, successors and assigns (collectively, the "<u>Knicks, LLC Indemnitees</u>") from and against, and shall reimburse such Knicks, LLC Indemnitees with respect to, any and all claims, actions, liabilities, losses, damages, costs and expenses including, without limitation, reasonable attorneys' fees, disbursements and court costs, incurred by each Knicks, LLC Indemnitee by reason of or arising out of or in connection with any breach by Representative of any covenant, agreement, representation or warranty contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 <u>Knicks, LLC Indemnity</u>. Knicks, LLC shall at all times, when requested, defend, indemnify and hold harmless Representative and Representative's owners (direct and indirect), related companies and affiliates and their respective directors, officers, employees, contractors, agents, successors and assigns (collectively, the "<u>Representative Indemnitees</u>") from and against, and shall reimburse such Representative Indemnitees with respect to, any and all claims, actions, liabilities, losses, damages, costs and expenses including, without limitation, reasonable attorneys' fees, disbursements and court costs, incurred by each Representative Indemnitee by reason of or arising out of or in connection with any breach by Knicks, LLC of any covenant, agreement, representation or warranty contained herein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 <u>Indemnity Procedures</u>. If any complaint, lawsuit or enforcement action is received by or filed against any party entitled to the benefit of indemnification hereunder, or if such party receives notice of any matter for which indemnification is to be given hereunder, written notice thereof shall be given to the indemnifying party. The indemnifying party shall engage attorneys of its own choice at its own cost, risk and expense, subject to approval of the indemnified party, which shall not be unreasonably withheld. The indemnified party shall cooperate in the investigation, trial and defense of such claim, lawsuit or action and any appeal arising therefrom. The indemnified party may, at its own cost, retain its own counsel to participate in the investigation, trial and defense of such lawsuit or action and any appeal arising therefrom. The indemnifying party shall not settle any claim, lawsuit or enforcement action without the written consent of the indemnified party, which shall not be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 <u>Survival</u>. The terms of this Section 9 shall survive the expiration or earlier termination of this agreement.

**10. <u>Miscellaneous</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 <u>Governing Law</u>. This Agreement shall be construed and enforced in accordance with the laws of the State of New York without regard to laws regarding choice of law or jurisdiction. The parties consent to the jurisdiction of the courts located in the state of New York (state or federal, as applicable) for the limited purpose of enforcement of the provisions of this Agreement and related matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 <u>Severability</u>. If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall remain in full force and effect and shall in no way be affected, impaired or invalidated, unless such invalidity, voidness or unenforceability materially alters the purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 <u>Notices</u>. All notices, requests, consents, directions, demands, waivers and other communications provided for herein shall be in writing and shall be deemed given, made or served if personally delivered, sent by express overnight courier service, sent by certified mail, postage prepaid, return receipt requested, or telecopied to the applicable party at the address listed below:

If to Representative:

MSG Entertainment Group, LLC

2 Penn Plaza, 14<sup>th</sup> Floor

New York, NY 10121

Attention: EVP of Marketing Partnerships

With a copy to:

MSG Entertainment Group, LLC

2 Pennsylvania Plaza, 19<sup>th</sup> Floor

New York, New York 10121

Attention: General Counsel

If to Knicks, LLC:

Knicks, LLC

2 Pennsylvania Plaza

New York, New York 10121

Attention: President

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with a copy to:

Knicks, LLC

2 Pennsylvania Plaza

New York, New York 10121

Attention: General Counsel

If to the NBA:

National Basketball Association

645 Fifth Avenue

New York, New York 10022

Attention: General Counsel

or as to each party, at such other addresses as shall be designated by such party in a written notice to the other party. All such notices shall be deemed effective (i) if personally delivered, on the date of delivery, (ii) if mailed, the first business day that is at least three (3) days after the date deposited in the U.S. Mail or (iii) if telecopied or sent by express overnight courier service, one business day after the date transmitted by telecopier or delivered to, or picked up by, a nationally recognized express overnight courier service for next day delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 <u>Assignment; Binding Upon Successors</u>. Representative shall have the right to assign this Agreement upon written notice to Knicks, LLC to any person or entity that acquires the Arena, provided the assignee agrees in writing to assume all of Representative's obligations under this Agreement. Knicks, LLC shall have the right to assign this Agreement upon written notice to Representative to any person or entity that acquires the Team in accordance with League Rules, provided the assignee agrees in writing to assume all of Knicks, LLC's obligations under this Agreement. Knicks, LLC shall further have the right to collaterally assign this Agreement to secure indebtedness of the Knicks incurred in accordance with League Rules. Except as set forth in this Section 10.4, neither party shall be permitted to assign this Agreement without the prior written consent of the other party, not to be unreasonably withheld, conditioned or delayed. Notwithstanding anything herein to the contrary, any agreement, consent, waiver or modification to the terms of this Agreement, whether or not contemplated herein, that would constitute a material modification to the terms of this Agreement that would remain in effect after the parties are no longer affiliated, shall require the prior written approval of the NBA. Subject to the foregoing obligations to obtain NBA approval, a change of control or ownership of either party shall not be deemed an assignment under this Section 10.4, and, in the event of any such proposed change of control or ownership of either party, the parties may mutually agree to amend, modify or supplement this Agreement in order to facilitate such change of control or ownership transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 <u>Modifications, Amendments, Waivers and Termination</u>. This Agreement may not be amended, modified, supplemented or terminated unless in writing executed by the parties hereto and, in each case, unless approved in advance in writing by the NBA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 <u>Confidentiality</u>. The parties agree that this Agreement (including its existence and all provisions hereof), any and all information related to the business and activities of the other party that may be obtained from any source or may be developed as a result of this Agreement, and any other information of the other party that is designated proprietary or confidential or that any reasonable person would regard as such based on the nature or source of the information (collectively, "<u>Confidential Information</u>"), in each case, shall be kept confidential and

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shall not be disclosed to third parties, except that each party may disclose such Confidential Information only (a) to its agents, representatives, affiliated entities and employees who need to know and who shall agree to be bound by the terms and conditions of this Agreement (including without limitation the confidentiality obligations of this paragraph), (b) in response to a lawfully-served subpoena, (c) pursuant to any law, rule, regulation or request to produce documentation made by any governmental body (including, but not limited to, the Securities Exchange Commission), national securities exchange or in any administrative or judicial proceeding, (d) to any prospective lender, investor, financing entity or prospective purchaser of a direct or indirect interest in such party or the assets of such party, provided that any such person or entity agrees to be bound by the confidentiality obligations of this paragraph, (e) the NBA and any agents, representatives, affiliated entities and employees of the NBA and/or (f) as required by League Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7 <u>Interpretation</u>. The section headings contained in this Agreement are solely for purpose of convenience and shall neither be deemed a part of this Agreement nor used in any interpretation hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8 <u>Integration</u>. This Agreement contains all of the agreements of the parties hereto with respect to the matters covered hereby, and supersedes in their entirety any prior agreements, oral or written, of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9 <u>No Third-Party Beneficiaries</u>. The execution and delivery of this Agreement shall not be deemed to confer any rights upon, nor obligate either of the parties hereto, to any person or entity not a party to this Agreement; provided that the NBA is a third party beneficiary with respect to Sections 10.4, 10.5, 10.6 and 10.12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.10 <u>Counterparts</u>. This Agreement may be executed in one or more counterparts, each of which shall constitute an original Agreement, but all of which together shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.11 <u>Limited Recourse</u>. Any recourse, action or claim to which either party is entitled hereunder shall extend only to the other party and not to any direct or indirect owner of such party or any agent of such party, past, present or future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.12 <u>Subordination</u>. This Agreement is subject to and limited by Representative's and Knicks, LLC's agreements with, and the rules, regulations and agreements of, all leagues (including without limitation, League Rules and any restrictions on the sale of sponsorship assets or categories based on League Rules as a result of the National Basketball Association's sponsorship partnerships), associations, individual athletic teams, program suppliers and distributors, as such agreements, rules or regulations may from time to time be amended, entered into, interpreted, enacted, performed or enforced. Knicks, LLC and Representative hereby covenant to comply with all League Rules in connection with their respective performances hereunder. In the event of any conflict between this Agreement and League Rules, League Rules shall control and govern in all respects, and the performance of Knicks, LLC shall be excused to the extent that the same is prohibited by League Rules. Each agreement entered into by either Party in performance of its obligations hereunder (*e.g.*, each Sponsorship Agreement entered into with a third party as described in Section 1.3) shall (a) be subject to League Rules (including any applicable approval rights) and (b) include all NBA-required subordination language.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.13 <u>No Joint Venture</u>. Nothing contained herein shall constitute or be deemed to constitute the parties as partners or joint venturers. The parties hereto are independent contractors responsible for their own obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.14 <u>Limitation of Liability</u>. EXCEPT TO THE EXTENT ARISING FROM A PARTY'S INDEMNIFICATION OBLIGATIONS WITH RESPECT TO THIRD PARTY CLAIMS PURSUANT TO SECTION 9 ABOVE, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES OR LOST PROFITS, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.15 <u>No Conflict</u>. Knicks, LLC acknowledges and agrees that, as part of its regular business practices, Representative and its affiliates undertake representations of the type contemplated hereunder for affiliates of Representative including the television networks known as "the MSG Network" and "MSG+," sports teams and venues that may have interests in conflict with those of Knicks, LLC or one or more of the Teams. Knicks, LLC agrees that such representations by Representative or its affiliates shall not be construed or deemed to be a violation or breach of any obligation on the part of Representative to Knicks, LLC hereunder.

*[Signature page to follow]* 

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above.

---

| | |
|:---|:---|
| KNICKS HOLDINGS, LLC | KNICKS HOLDINGS, LLC |
| By: | /s/ Victoria M. Mink |
|  | Name: Victoria M. Mink |
|  | Title: Executive Vice President and Chief Financial Officer |
| MSG ENTERTAINMENT GROUP, LLC | MSG ENTERTAINMENT GROUP, LLC |
| By: | /s/ Philip D'Ambrosio |
|  | Name: Philip D'Ambrosio |
|  | Title: Senior Vice President, Treasurer |

---

## Exhibit 21.1

**Exhibit 21.1** 

**MSGE Spinco, Inc.** 

**Subsidiaries** 

---

| | |
|:---|:---|
| **ENTITY NAME** | **STATE/COUNTRY**<br> **FORMED** |
| Eden Insurance Company, Inc. | NY |
| Entertainment Ventures, LLC | DE |
| MSG Aircraft Leasing, L.L.C. | DE |
| MSG Arena Holdings, LLC | DE |
| MSG Arena, LLC | DE |
| MSG Aviation, LLC | DE |
| MSG BBLV, LLC | DE |
| MSG BCE, LLC | DE |
| MSG Beacon, LLC | DE |
| MSG Chicago, LLC | DE |
| MSG Eden Realty, LLC | DE |
| MSG Entertainment Holdings, LLC | DE |
| MSG Holdings Music, LLC | DE |
| MSG Interactive, LLC | DE |
| MSG National Properties LLC | DE |
| MSG Publishing, LLC | DE |
| MSG Songs, LLC | DE |
| MSG TE, LLC | DE |
| MSG Theatrical Ventures, LLC | DE |
| MSG Vaudeville, LLC | DE |
| MSG Winter Productions, LLC | DE |
| Radio City Productions LLC | DE |
| Radio City Trademarks, LLC | DE |
| The Grand Tour, LLC | NY |

---

## Exhibit 99.1

##### [**Table of Contents**](#toc)
**Exhibit 99.1** 

**MADISON SQUARE GARDEN ENTERTAINMENT CORP.** 

**TWO PENNSYLVANIA PLAZA** 

**NEW YORK, NY 10121** 

[●], 2023

Dear Stockholder:

I am pleased to report that the previously announced spin-off by Madison Square Garden Entertainment Corp., which we refer to as "MSG Entertainment," of approximately 67% of the common stock of its MSGE Spinco, Inc. subsidiary is expected to become effective on [●], 2023. MSGE Spinco, Inc., a Delaware corporation, which we refer to as "Spinco," will become a public company on that date and will own the Entertainment business segment, excluding MSG Sphere, currently owned and operated by MSG Entertainment, as described in this information statement. We expect that on or prior to the Distribution, Madison Square Garden Entertainment Corp. will change its name to "MSG Sphere Corp." and Spinco will change its name to "Madison Square Garden Entertainment Corp." Spinco's Class A Common Stock will be listed on the New York Stock Exchange, which we refer to as "NYSE", under the symbol "MSGE" and we expect that Madison Square Garden Entertainment Corp. (renamed "MSG Sphere Corp.") will change its symbol on the NYSE to "SPHR" in connection with the spin-off.

Holders of record of MSG Entertainment's Class A Common Stock as of the close of business, New York City time, on [●], 2023, which will be the record date, will receive one share of Spinco Class A Common Stock for every one share of MSG Entertainment's Class A Common Stock held. Holders of record of MSG Entertainment's Class B Common Stock as of the close of business on the record date will receive one share of Spinco Class B Common Stock for every one share of MSG Entertainment Class B Common Stock held. No action is required on your part to receive your Spinco shares. You will not be required either to pay anything for the new shares or to surrender any shares of MSG Entertainment stock.

Immediately following such distribution, MSG Entertainment will retain approximately 33% of the outstanding shares of Spinco common stock in the form of Class A Common Stock. MSG Entertainment will not own any of our Class B Common Stock following the Distribution.

No fractional shares of Spinco stock will be issued. If you otherwise would be entitled to a fractional share, you will receive a check for the cash value thereof, which generally will be taxable to you. In due course you will be provided with information to enable you to compute your tax bases in both MSG Entertainment and Spinco stock. MSG Entertainment expects to obtain an opinion from Sullivan & Cromwell LLP substantially to the effect that, among other things, the distribution by MSG Entertainment of our Class A Common Stock and Class B Common Stock to the holders of MSG Entertainment Class A Common Stock and MSG Entertainment Class B Common Stock, respectively (i.e., the distribution), should qualify as a tax-free distribution for U.S. federal income tax purposes. MSG Entertainment will be required by applicable tax rules to dispose of the retained shares within a fixed period of time, which may occur through a series of steps including sales, exchange offers or pro rata distributions.

The enclosed information statement describes the distribution of shares of Spinco stock and contains important information about Spinco, including financial statements. I suggest that you read it carefully. If you have any questions regarding the Distribution, please contact MSG Entertainment's transfer and distribution agent, EQ Shareowner Services, at 1-800-468-9716 (U.S. toll free) or 651-450-4064 (International).

Sincerely,

James L. Dolan

Executive Chairman and Chief Executive Officer

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##### [**Table of Contents**](#toc)
**Information contained herein is subject to completion or amendment. A Registration Statement on Form 10 relating to these securities has been filed with the U.S. Securities and Exchange Commission.** 

**PRELIMINARY INFORMATION STATEMENT** 

**SUBJECT TO COMPLETION, DATED FEBRUARY 15, 2023** 

**INFORMATION STATEMENT** 

## MSGE Spinco, Inc.
**Distribution of** 

**Class A Common Stock** 

**Par Value, $0.01 Per Share** 

**Class B Common Stock** 

**Par Value, $0.01 Per Share** 

------

This information statement is being furnished in connection with the distribution by Madison Square Garden Entertainment Corp. ("MSG Entertainment") to holders of its common stock of approximately 67% of the outstanding shares of MSGE Spinco, Inc. (collectively, "we," "us," "our," "Spinco," or the "Company") common stock. Immediately following such distribution, MSG Entertainment will retain approximately 33% of the outstanding shares of Spinco common stock in the form of Class A Common Stock. MSG Entertainment will not own any of our Class B Common Stock following the Distribution. Prior to such distribution, we will enter into a series of transactions with MSG Entertainment pursuant to which we will own the Entertainment business segment, excluding MSG Sphere, that was owned and operated by MSG Entertainment, as described in this information statement.

Shares of our Class A Common Stock will be distributed to holders of MSG Entertainment Class A Common Stock of record as of the close of business, New York City time, on [●], 2023, which will be the record date. Each such holder will receive one share of our Class A Common Stock for every one share of MSG Entertainment's Class A Common Stock held on the record date. Shares of our Class B Common Stock will be distributed to holders of MSG Entertainment's Class B Common Stock as of the close of business on the record date. Each holder of MSG Entertainment's Class B Common Stock will receive one share of our Class B Common Stock for every one share of MSG Entertainment's Class B Common Stock held on the record date. We refer to this distribution of securities as the "Distribution." The Distribution will be effective at 11:59 p.m., New York City time, on [●], 2023 (the "Distribution Date"). For MSG Entertainment stockholders who own common stock in registered form, in most cases the transfer and distribution agent will credit their shares of Spinco common stock to book entry accounts established to hold their MSG Entertainment common stock. Our transfer and distribution agent will send these stockholders a statement reflecting their Spinco common stock ownership shortly after [●], 2023. For stockholders who own MSG Entertainment common stock through a broker or other nominee, their shares of Spinco common stock will be credited to their accounts by the broker or other nominee. Stockholders will receive a cash payment in lieu of fractional shares, which generally will be taxable. See "The Distribution — Material U.S. Federal Income Tax Consequences of the Distribution."

The Company will have two classes of common stock. Our Class A Common Stock will be entitled to one vote per share and to collectively elect 25% of our Board of Directors, and our Class B Common Stock will be entitled to ten votes per share and to collectively elect the remaining 75% of our Board of Directors. See "Description of Capital Stock" for more information. As of the Distribution Date, the Dolan family, including trusts for the benefit of members of the Dolan family (the "Dolan Family Group"), will collectively own all of our Class B Common Stock, approximately [●]% of our outstanding Class A Common Stock and approximately [●]% of the total voting power of all our outstanding common stock. As a result, the Company will be a "controlled company" within the meaning of the corporate governance standards of the New York Stock Exchange ("NYSE") and the Dolan Family Group will have the ability to determine all matters requiring approval by stockholders (other than the election of the Class A Directors and any matters requiring a separate vote by the holders of the Class A common stock).

No stockholder approval of the Distribution is required or sought. We are not asking you for a proxy and you are requested not to send us a proxy. MSG Entertainment stockholders will not be required to pay for the shares of our common stock to be received by them in the Distribution, or to surrender or to exchange shares of MSG Entertainment common stock in order to receive our common stock, or to take any other action in connection with the Distribution. There is currently no trading market for our common stock.

We expect that on or prior to the Distribution, Madison Square Garden Entertainment Corp. will change its name to "MSG Sphere Corp." and MSGE Spinco, Inc. will change its name to "Madison Square Garden Entertainment Corp." We will apply to list our Class A Common Stock on the NYSE. Our Class A Common Stock will trade under the symbol "MSGE" and we expect that Madison Square Garden Entertainment Corp. (renamed "MSG Sphere Corp.") will change its symbol on the NYSE to "SPHR" in connection with the Distribution. We will not list our Class B Common Stock on any securities exchange.

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**IN REVIEWING THIS INFORMATION STATEMENT, YOU SHOULD CAREFULLY CONSIDER THE MATTERS DESCRIBED UNDER THE CAPTION "[RISK FACTORS](#rom357108_6)" BEGINNING ON PAGE 26.** 

WE ARE AN EMERGING GROWTH COMPANY AS DEFINED IN THE JUMPSTART OUR BUSINESS STARTUPS ACT OF 2012. REFER TO "RISK FACTORS — *RISKS RELATED TO THE SPIN-OFF TRANSACTION — THE REDUCED DISCLOSURE REQUIREMENTS APPLICABLE TO US AS AN 'EMERGING GROWTH COMPANY' MAY MAKE OUR CLASS A COMMON STOCK LESS ATTRACTIVE TO INVESTORS*" AND "BUSINESS — EMERGING GROWTH COMPANY STATUS."

NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED IF THIS INFORMATION STATEMENT IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

------

THIS INFORMATION STATEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.

------

Stockholders of MSG Entertainment with inquiries related to the Distribution should contact MSG Entertainment's transfer and distribution agent, EQ Shareowner Services, at 1-800-468-9716 (U.S. toll free) or 651-450-4064 (International).

**The date of this information statement is [**●**], 2023.** 

------

##### [**Table of Contents**](#toc)
**TABLE OF CONTENTS** 

---

| | |
|:---|:---|
|  | **Page** |
|  [Summary](#rom357108_1) | 1 |
|  [The Distribution](#rom357108_2) | 10 |
|  [Selected Historical and Unaudited Pro Forma Combined Financial Data](#rom357108_4) | 15 |
|  [Questions and Answers about the Distribution](#rom357108_3) | 19 |
|  [Risk Factors](#rom357108_6) | 26 |
|  [The Distribution](#rom357108_5) | 46 |
|  [Business](#rom357108_7) | 54 |
|  [Dividend Policy](#rom357108_8) | 70 |
|  [Unaudited Pro Forma Condensed Combined Financial Information](#rom357108_9) | 71 |
|  [Management's Discussion and Analysis of Financial Condition and Results of Operations](#rom357108_10) | 80 |
|  [Corporate Governance and Management](#rom357108_11) | 113 |
|  [Executive Compensation](#rom357108_12) | 124 |
|  [Certain Relationships and Related Party Transactions](#rom357108_13) | 164 |
|  [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#rom357108_14) | 175 |
|  [Shares Eligible for Future Sale](#rom357108_15) | 186 |
|  [Description of Capital Stock](#rom357108_16) | 188 |
|  [Indemnification of Directors and Officers](#rom357108_17) | 193 |
|  [Available Information](#rom357108_18) | 194 |
|  [Index to Combined Financial Statements](#rom357108_19) | F-1 |

---

i

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##### [**Table of Contents**](#toc)
**SUMMARY** 

The following is a summary of certain of the information contained in this information statement. This summary is included for convenience only and should not be considered complete. This summary is qualified in its entirety by more detailed information contained elsewhere in this information statement, which should be read in its entirety.

Unless the context otherwise requires, all references to "we," "us," "our," "Spinco" or the "Company" refer to MSGE Spinco, Inc., together with its direct and indirect subsidiaries. Where we describe in this information statement our business activities, we do so as if the transfer of the Entertainment business segment, excluding MSG Sphere, owned and operated by MSG Entertainment, to Spinco has already occurred.

On or prior to the Distribution, Madison Square Garden Entertainment Corp. will change its name to "MSG Sphere Corp." and MSGE Spinco, Inc. will change its name to "Madison Square Garden Entertainment Corp."

The Company reports on a fiscal year basis ending on June 30. The fiscal years ended June 30, 2022, 2021 and 2020 are referred to as "Fiscal Year 2022," "Fiscal Year 2021," and "Fiscal Year 2020," respectively, and the fiscal year ending June 30, 2023 is referred to as "Fiscal Year 2023."

**Our Company** 

We are a leader in live entertainment experiences, comprised of iconic venues and marquee entertainment content. Utilizing our powerful brands and live entertainment expertise, the Company delivers unique experiences that set the standard for excellence and innovation while forging deep connections with diverse and passionate audiences.

Our company includes (i) our portfolio of venues: Madison Square Garden ("The Garden"), The Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre, and The Chicago Theatre, (ii) the original production, the *Christmas Spectacular Starring the Radio City Rockettes* ("*Christmas Spectacular*"), and (iii) our entertainment and sports bookings business, which showcases a broad array of compelling concerts, family shows and special events, as well as a diverse mix of sporting events, for millions of guests annually.

We manage our business through a single reportable segment.

**Impact of the COVID-19 Pandemic on Our Business** 

The Company's operations and operating results were materially impacted by the COVID-19 pandemic (including COVID-19 variants) and actions taken in response by governmental authorities and certain professional sports leagues during Fiscal Years 2020, 2021 and 2022. For the majority of Fiscal Year 2021, substantially all of our business operations were suspended. Fiscal Year 2022 was also impacted by the pandemic, with fewer ticketed events at our venues in the first half of the fiscal year as compared with Fiscal Year 2019 (the last full fiscal year not impacted by COVID-19) due to the lead-time required to book touring acts and artists, and an increase in COVID-19 cases due to a new variant, which resulted in a number of events at our venues being cancelled or postponed in the fiscal second and third quarters.

As a result of government-mandated assembly limitations and closures, all of our venues were closed beginning in March 2020. Use of The Garden resumed for home games of the New York Knicks (the "Knicks") and the New York Rangers (the "Rangers") without fans in December 2020 and January 2021, respectively, and was available at 10% seating capacity from February through May 2021 subject to certain safety protocols and social distancing. Beginning in May 2021, all of our New York venues were permitted to host guests at full capacity, subject to certain restrictions, and effective June 2021, The Chicago Theatre was permitted to host events without restrictions. Guests of our Chicago and New York venues were also subject to certain vaccination

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##### [**Table of Contents**](#toc)
requirements until February and March 2022, respectively. Our venues no longer require guests to provide proof of COVID-19 vaccination before entering (although specific performers may require enhanced protocols).

For Fiscal Year 2021, the majority of ticketed events at our venues were postponed or cancelled. For Fiscal Year 2022 and as of the date of this filing, live events have been permitted to be held at all of our venues and we are continuing to host and book new events. As a result of an increase in cases of a COVID-19 variant, select bookings were postponed or cancelled at our venues in the second and third quarters of Fiscal Year 2022. Variants of COVID-19 that arise in the future may result in additional postponements or cancellations of bookings at our venues.

The impact of the COVID-19 pandemic on our operations also included the partial cancellation of the 2021 production of the *Christmas Spectacular* and the cancellation of the 2020 production of the *Christmas Spectacular*.

The Company has long-term arena license agreements (the "Arena License Agreements") with Madison Square Garden Sports Corp. ("MSG Sports"), formerly known as The Madison Square Garden Company, that require the Knicks and Rangers to play their home games at The Garden. As discussed above, capacity restrictions, use limitations and social distancing requirements were in place for the entirety of the Knicks and Rangers 2020-21 regular seasons, which materially impacted the payments we received under the Arena License Agreements for Fiscal Year 2021. On July 1, 2021, the Knicks and Rangers began paying the full amounts provided for under their respective Arena License Agreements. The Knicks and the Rangers each completed their 2021-2022 82-game regular seasons, with the Rangers advancing to the playoffs.

It is unclear to what extent COVID-19 concerns, including with respect to new variants, could result in new government- or league-mandated capacity restrictions or vaccination/mask requirements or impact the use of and/or demand for our venues, demand for our sponsorship and signage assets, deter our employees and vendors from working at our venues (which may lead to difficulties in staffing) or otherwise materially impact our operations.

**Our Strengths** 

• Strong position in live entertainment through:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A portfolio of world-renowned venues; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Marquee live entertainment brands and content;

• Significant presence in the New York market – the nation's number one Designated Market Area
("DMA");

• Deep industry relationships that drive top-tier performers and a wide
variety of events to the Company's venues;

• Proven track record of delivering significant value for partners through innovative sponsorships and premium
hospitality;

• Reputation for world-class customer experience driven by decades of expertise in sales and marketing, and venue
operations;

• Expertise in utilizing data to drive decisions to maximize revenue and the experience of our guests;

• Long-term agreements to host home games at The Garden for two of the most recognized franchises in professional
sports — the Knicks and the Rangers; and a

• Strong and seasoned management team.

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##### [**Table of Contents**](#toc)
**Our Strategy** 

Our strategy is to create world-class live experiences for our guests and partners by leveraging (i) our Company's unique portfolio of live entertainment assets and brands; (ii) our expertise in venue management, bookings and productions, sponsorship, ticketing, marketing and premium hospitality, and content development; (iii) our deep relationships across the entertainment and sports industries; and (iv) our strong connection with diverse and passionate audiences. We believe this strategy will enable us to generate long-term value creation for our shareholders.

Key components of our strategy include:

• *Maximizing the live entertainment experience for our customers.* We use the strength of our venues,
expertise and relationships to attract top talent and deliver unforgettable experiences for our guests. We have a track record of designing world-class facilities with top-quality amenities, including our
renovations of The Garden, Radio City Music Hall, and the Beacon Theatre. We also continue to explore new ways to use technology to improve the guest experience. From the way our customers buy food, beverage and merchandise, to how we market and
process their tickets, to utilizing next-generation audio technology in our venues, we strive to give our customers the best experience in the industry. We believe this approach will enable us to drive improvements in per-event revenue and profitability at our venues and help create a seamless and memorable guest experience that will help drive repeat visitation to our venues.

• *Increasing the utilization of our venues.* Part of what drives our success is our "artist first"
approach. Through dedicated artist areas and top-tier service, our talent-friendly environment not only attracts artists to our venues, but also brings them back for repeat performances. Another part of this
approach is how we use our diverse collection of venues. With seating capacities and configurations that range from 2,800 to 21,000, our venue portfolio enables us to shepherd artists through the growth in their careers, helping us develop deeper
industry relationships. We will continue to use this "artist first" approach to attract the industry's top talent with the goal of increasing utilization across all our venues through more multi-night concerts, as well as more marquee
special events. We also plan to continue exploring opportunities for new events that would be unique to our venues, including high-profile residencies that would help build our base of events.

• *Delivering unrivaled marketing exposure for our partners.* Our assets are highly sought after by companies
that value the popularity of our venues and entertainment brands. Our value proposition is further strengthened by our sponsorship sales representation agreement with MSG Sports which enables us to deliver broad-based marketing platforms that
combine our assets with MSG Sports' professional sports brands. We plan to continue utilizing this integrated approach to both renew and extend our relationships with existing partners, as well as to form partnerships with leading companies in
emerging industries and in industry verticals where we are currently underpenetrated. We also offer our partners expanded reach through outdoor signage around the Madison Square Garden Complex and Pennsylvania Station ("Penn Station"), a
major commuter hub in Manhattan. We plan to selectively explore additional opportunities to grow our external signage portfolio, which could increase our existing marketing partnerships packages as well as attract new partners.

• *Offering best-in-class premium hospitality products*. The Company offers a wide array of premium corporate hospitality offerings that cater to a variety of audiences. For example, The Garden has a range of suite and club products, including 21 Event Level suites, 58 Lexus
Level suites, 18 Infosys Level suites, the Caesars Sportsbook Lounge, Suite Sixteen and the HUB Loft. These suites and clubs — which provide exclusive private spaces, first-class amenities and some of the best seats in The Garden — are
primarily licensed to corporate customers with the majority being multi-year agreements with annual escalators. Through our Arena License Agreements with the Knicks and Rangers, we also offer suite holders access to MSG Sports' premium live
sporting events. We believe the strength of our product and content offerings, along with the continued importance of corporate hospitality to our partners, position us well with regard to

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##### [**Table of Contents**](#toc)
ongoing renewal and new sales activity. We also plan to explore enhancing and expanding our premium hospitality offerings, which would create new monetization opportunities for the Company.

• *Understanding our customers.* We continue to forge direct relationships with customers and fans, with a
focus on understanding how consumers interact with every aspect of the Company. A key component of this strategy is our large and growing proprietary database of millions of customers. The data we collect from our venues and digital products
provides the Company with significant insights into our customers, including who is utilizing our digital assets and attending events at our venues. In addition to providing value for our marketing partners, these insights are leveraged to help
drive revenue and engagement across our assets, providing us with an opportunity to tailor offerings and cross-promote our products and services, introducing customers to our wide range of assets and brands. We also plan to increasingly use data to
proactively identify potential bookings for our venues.

• *Exploring opportunities to expand proprietary entertainment content.* We plan to selectively explore
opportunities to create new live entertainment content, including by leveraging owned intellectual property like the Radio City Rockettes (the "Rockettes"). This would enable us to benefit from the economics of being both content owner and
venue operator. Additional owned content would also make us less reliant on third-party events to drive utilization of our venues.

**Key Challenges** 

Following the Distribution, we may face a number of challenges, both pre-existing and as a result of the Distribution, including:

• Intense competition in the market and industry in which we operate, including with other leisure-time activities
such as television, motion pictures and sporting events and other live performances, and concert venues;

• Dependence upon the continued popularity of the entertainment and sporting events presented in our venues and our
existing brands (including the *Christmas Spectacular* and the National Basketball Association's ("NBA") New York Knicks and the National Hockey League's ("NHL") New York Rangers), which are sensitive to customer
tastes, and our ability to attract popular artists, groups and events to our venues;

• Effectively managing any impacts of the COVID-19 pandemic (including COVID-19 variants) as well as renewed actions taken in response by governmental authorities or certain professional sports leagues, including ensuring compliance with rules and regulations imposed upon our venues,
to the extent applicable;

• Significantly levered balance sheet and liquidity restraints imposed by interest and principal payments as well
as a high cost of capital;

• Lack of an operating history as a stand-alone public company;

• Strength or weakness of, as well as volatility and less predictability in, our operating results and cash flow
because the Company's results will no longer include cash flows from MSG Networks Inc. ("MSG Networks") and Tao Group Hospitality; and

• Volatility in the market price and trading volume of our common stock. The market price for our common stock
could fluctuate significantly for many reasons following the Distribution, including the lack of an existing public market for our stock, the information set forth under "Risk Factors" and other reasons unrelated to our performance.

See the section entitled "Risk Factors" for more information on each of these key challenges.

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**Organizational Structure** 

The following charts depict a simplified graphical representation of the Company's corporate structure before and after the Distribution. The shares issued in the Distribution will represent approximately 67% of our common stock and MSG Entertainment (to be renamed "MSG Sphere Corp.") will retain approximately 33% of our common stock immediately following the Distribution in the form of Class A Common Stock. MSG Entertainment will not own any of our Class B Common Stock following the Distribution. The shares issued in the Distribution will include approximately 62% of the outstanding shares of Class A Common Stock (the holders of which will have the right to collectively elect 25% of our Board of Directors, rounded up to the nearest whole number of directors) and 100% of the outstanding shares of Class B Common Stock (the holders of which will have the right to collectively elect the remaining 75% of our Board of Directors). As a result, the shares issued in the Distribution will represent at least 90% of the combined voting power of the outstanding common stock with respect to the election of directors. The Dolan family, including trusts for the benefit of members of the Dolan family (collectively, the "Dolan Family Group") will collectively own all of our Class B Common Stock, approximately [●]% of our outstanding Class A Common Stock and approximately [●]% of the total voting power of all our outstanding common stock.

*Before the Distribution:*![LOGO](g357108g12j09.jpg)

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*After the Distribution:*![LOGO](g357108g13a01.jpg)

![LOGO](g357108g13a02.jpg)

**Company Information** 

We are a Delaware corporation with our principal executive offices at Two Pennsylvania Plaza, New York, NY 10121. Our telephone number is +1 (212) 465-6000, our website is www.msgentertainment.com. Spinco is a holding company and conducts substantially all of its operations through its subsidiaries.

Spinco was incorporated on September 15, 2022 and is a direct, wholly-owned subsidiary of MSG Entertainment. MSG Entertainment's board of directors approved the Distribution on [●], 2023. Prior to the Distribution, the Company will acquire the subsidiary of MSG Entertainment that owns, directly and indirectly, the subsidiaries, businesses and other assets described in this information statement. Where we describe in this information statement our business activities, we do so as if these transfers have already occurred.

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We expect that on or prior to the Distribution, Madison Square Garden Entertainment Corp. will change its name to "MSG Sphere Corp." and MSGE Spinco, Inc. will change its name to "Madison Square Garden Entertainment Corp." We will apply for our Class A Common Stock to be listed on the NYSE under the symbol "MSGE" and we expect that Madison Square Garden Entertainment Corp. (renamed "MSG Sphere Corp.") will change its symbol on the NYSE to "SPHR" in connection with the Distribution. We will not list our Class B Common Stock on any securities exchange.

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**SUMMARY OF RISK FACTORS** 

Ownership of our common stock is subject to numerous risks, including the Distribution, that could adversely affect our business, operations and financial results. The following list of risk factors is not exhaustive. Please read the information in the section entitled "Risk Factors" for a more thorough description of these and other risks.

***Risks Related to Our Business***

• Our business faces intense and wide-ranging competition that may have a material negative effect on our business
and results of operations.

• The success of our business depends on the continued popularity of the *Christmas Spectacular* production,
and the entertainment and sporting events we host at our venues.

• Our operations and operating results were, and may in the future be, materially impacted by the COVID-19 pandemic and actions taken in response by governmental authorities and certain professional sports leagues.

• We depend on licenses from third parties for the performance of musical works at our venues.

• Our properties are subject to, and benefit from, certain easements, the availability of which may not continue on
terms favorable to us or at all.

• A change to or withdrawal of a New York City real estate tax exemption for the Madison Square Garden Complex may
have a material negative effect on our business and results of operations.

***Economic and Operational Risks***

• Our business has been adversely impacted and may, in the future, be materially adversely impacted by an economic
downturn, recession, financial instability, inflation or changes in consumer tastes and preferences.

• We do not own all of our venues and our failure to renew our leases on economically attractive terms may have a
material negative effect on our business and results of operations.

• The geographic concentration of our business could subject us to greater risk than our competitors and have a
material negative effect on our business and results of operations.

• Our business could be adversely affected by terrorist activity or the threat of terrorist activity, weather and
other conditions that discourage congregation at prominent places of public assembly.

• We are subject to extensive governmental regulation and our failure to comply with these regulations may have a
material negative effect on our business and results of operations.

• Labor matters may have a material negative effect on our business and results of operations.

***Risks Related to Indebtedness; Financial Condition; Internal Control; Cybersecurity and Intellectual Property***

• We have substantial indebtedness and are highly leveraged, which could adversely affect our business.

• We have and could in the future incur substantial operating losses, adjusted operating losses and negative cash
flow.

• We face continually evolving cybersecurity and similar risk, which could result in loss, disclosure, theft,
destruction or misappropriation of, or access to, our confidential information and cause disruption of our business, damage to our brands and reputation, legal exposure and financial losses.

• Theft of our intellectual property may have a material negative effect on our business and results of operations.

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***Risks Related to the Spin-off Transaction***

• Because there has not been any public market for our common stock, the market price and trading volume of our
common stock may be volatile and you may not be able to resell your shares at or above the initial market price of our stock following the distribution. In addition, future stock sales, including as a result of the exercise of registration rights by
certain of our stockholders, could adversely affect the trading price of our Class A Common Stock.

• The combined post-distribution value of MSG Entertainment and Spinco shares may not equal or exceed the pre-distribution value of MSG Entertainment shares, and we may incur material costs and expenses as a result of our separation from MSG Entertainment.

• The distribution could result in significant tax liability, and we may have a significant indemnity obligation to
MSG Entertainment if the distribution is treated as a taxable transaction.

• The tax rules applicable to the distribution may restrict us from engaging in certain corporate transactions or
from raising equity capital beyond certain thresholds for a period of time after the distribution.

• Certain adverse U.S. federal income tax consequences might apply to non-U.S. holders that hold our Class A Common Stock and Class B Common Stock after the distribution if we are treated as a "United States real property holding corporation"
("USRPHC").

• We do not have an operating history as a stand-alone public company and our historical financial results and our
unaudited pro forma condensed combined financial statements may not be representative of our results as a separate, stand-alone company.

• If applicable, following the Distribution, if we are unable to satisfy the requirements of Section 404 of
the Sarbanes-Oxley Act of 2002, as amended (the "Sarbanes-Oxley Act"), or our internal control over financial reporting is not effective, the reliability of our financial statements may be questioned and our stock price may suffer.

• We will share certain key directors and officers with MSG Entertainment, MSG Sports and/or AMC Networks, which
means those officers will not devote their full time and attention to our affairs and the overlap may give rise to conflicts. These overlaps may result in the diversion of corporate opportunities and other conflicts, and provisions in our amended
and restated certificate of incorporation may provide us no remedy in that circumstance.

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**THE DISTRIBUTION** 

Please see "The Distribution" for a more detailed description of the matters described below.

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| Distributing Company  | MSG Entertainment, a live entertainment and media company, which is comprised of iconic venues, marquee entertainment content, award-winning regional sports and entertainment networks. In addition to the Entertainment business that is being transferred to Spinco, MSG Entertainment also owns and operates the MSG Sphere business under its Entertainment business segment, the MSG Networks business segment and the Tao Group Hospitality business segment. |

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| Distributed Company  | Spinco, a wholly-owned subsidiary of MSG Entertainment, which will own and operate the Entertainment business segment, excluding MSG Sphere, currently owned and operated by MSG Entertainment, as described in this information statement. Please see "Business" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" for information concerning this business. |

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|:---|:---|
| Distribution Ratio  | Each holder of MSG Entertainment Class A Common Stock will receive a distribution of one share of our Class A Common Stock for every one share of MSG Entertainment Class A Common Stock held on the record date and each holder of MSG Entertainment Class B Common Stock will receive a distribution of one share of our Class B Common Stock for every one share of MSG Entertainment Class B Common Stock held on the record date. |

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| Securities to be Distributed  | Based on [●] shares of MSG Entertainment Class A Common Stock and [●] shares of MSG Entertainment Class B Common Stock outstanding on [●], 2023, approximately [●] shares of our Class A Common Stock and [●] shares of our Class B Common Stock will be distributed. The shares issued in the Distribution will represent approximately 67% of our common stock and MSG Entertainment will retain approximately 33% of our common stock immediately following the Distribution in the form of Class A Common Stock. MSG Entertainment will not own any of our Class B Common Stock following the Distribution. The shares issued in the Distribution will include approximately 62% of the outstanding shares of Class A Common Stock (the holders of which will have the right to collectively elect 25% of our Board of Directors, rounded up to the nearest whole number of directors) and 100% of the outstanding shares of Class B Common Stock (the holders of which will have the right to collectively elect the remaining 75% of our Board of Directors). As a result, the shares issued in the Distribution will represent at least 90% of the combined voting power of the outstanding common stock with respect to the election of directors. MSG Entertainment stockholders will not be required to pay for the shares of our common stock to be received by them in the Distribution, or to surrender or exchange shares of MSG Entertainment common stock in order to receive our common stock, or to take any other action in connection with the Distribution. |

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| Fractional Shares  | Fractional shares of our common stock will not be distributed. Fractional shares of our Class A Common Stock will be aggregated and sold in the public market by the transfer and distribution agent and stockholders will receive a cash payment in lieu of a fractional share. Similarly, fractional shares of our Class B Common Stock will be aggregated, converted to Class A Common Stock, and sold in the public market by the transfer and distribution agent. The aggregate net cash proceeds of these sales will be distributed ratably to the stockholders who would otherwise have received fractional interests. These proceeds generally will be taxable to those stockholders. |

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Distribution Agent, Transfer Agent and Registrar for the Shares EQ Shareowner Services will be the distribution agent, transfer agent and registrar for the shares of our common stock.

Record Date The record date is the close of business, New York City time, on [●], 2023.

Distribution Date 11:59 p.m., New York City time, on [●], 2023.

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|:---|:---|
| Material U.S. Federal Income Tax Consequences of the Distribution  | MSG Entertainment expects to obtain an opinion from Sullivan & Cromwell LLP substantially to the effect that, among other things, the distribution by MSG Entertainment of our Class A Common Stock and Class B Common Stock to the holders of MSG Entertainment Class A Common Stock and MSG Entertainment Class B Common Stock, respectively (i.e., the Distribution), should qualify as a tax-free distribution under the Internal Revenue Code of 1986, as amended (the "Code"). For U.S. federal income tax purposes, the Distribution is not expected to result in the recognition of gain to MSG Entertainment with respect to the distribution of our Class A Common Stock or our Class B Common Stock to the MSG Entertainment stockholders and, except to the extent a stockholder receives cash in lieu of fractional shares of our common stock, no income, gain or loss will be recognized by, and no amount will be included in the income of, such holder upon the receipt of shares of our common stock pursuant to the Distribution. The opinion will not be binding on the Internal Revenue Service ("IRS") or the courts. See "The Distribution — Material U.S. Federal Income Tax Consequences of the Distribution" below. Certain transactions related to the Distribution that are not addressed (or expected to be addressed) by the opinion could result in the recognition of income or gain by MSG Entertainment. The opinion will rely on factual representations and reasonable assumptions, which, if incorrect or inaccurate, may jeopardize the ability to rely on such opinion. MSG Entertainment will be required by applicable tax rules to dispose of the retained shares within a fixed period of time, which may occur through a series of steps including sales, exchange offers or pro rata distributions. |

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| Stock Exchange Listing  | There is not currently a public market for our common stock. We will apply for our Class A Common Stock to be listed on the NYSE under the symbol "MSGE" and we expect that Madison Square Garden Entertainment Corp. (renamed "MSG Sphere Corp.") will change its symbol on the NYSE to "SPHR" in connection with the Distribution. It is anticipated that trading will commence on a when-issued basis prior to the Distribution. On the first trading day following the date of the Distribution, when-issued trading in respect of our Class A Common Stock will end and regular way trading will begin. Our Class B Common Stock will not be listed on any securities exchange. |

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|:---|:---|
| Relationship Between MSG Entertainment and Us After the Distribution  | Following the Distribution, we will be a separate public company. MSG Entertainment will initially own approximately 38% of the outstanding Class A Common Stock, representing an approximately 33% economic interest in us. MSG Entertainment will not own any of our Class B Common Stock following the Distribution. Prior to the Distribution, we and MSG Entertainment will enter into a distribution agreement (the "Distribution Agreement") and several ancillary agreements for the purpose of accomplishing the distribution of our common stock to MSG Entertainment's common stockholders. These agreements also will govern our relationship with MSG Entertainment subsequent to the Distribution and provide for the allocation of employee benefit, tax and some other liabilities and obligations attributable to periods prior to, at and after the Distribution. These agreements also will include arrangements with respect to transition services (the "Transition Services Agreement") and a number of on-going commercial relationships. The Distribution Agreement includes an agreement that we and MSG Entertainment will provide each other with appropriate indemnities with respect to liabilities arising out of the business being transferred to us by MSG Entertainment. We will also be party to other arrangements with MSG Sports, MSG Entertainment and each entity's subsidiaries. See "Certain Relationships and Related Party Transactions — Relationship Between MSG Entertainment and Us After the Distribution." |

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| Overlapping Directors and Officers and Potential Conflicts of Interest  | Following the Distribution, there will be an overlap between an officer of the Company, MSG Sports and MSG Entertainment. James L. Dolan will serve as the Executive Chairman and Chief Executive Officer of both the Company and MSG Entertainment and as the Executive Chairman of MSG Sports. James L. Dolan also currently serves as Interim Executive Chairman of AMC Networks Inc. ("AMC Networks"), a company controlled by the Dolan family. In addition, Gregg G. Seibert will serve as a Vice Chairman of the Company, MSG Sports, MSG Entertainment and AMC Networks and Charles F. Dolan will serve as Chairman Emeritus of AMC Networks concurrently with his service on our Board. Furthermore,  |

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immediately following the Distribution, nine of the members of the Board of Directors of the Company (the "Board of Directors" or the "Board") will also serve as directors of MSG Entertainment, nine will serve as directors of MSG Sports and five will serve as directors of AMC Networks (each of MSG Entertainment, MSG Sports and AMC Networks is referred to as an "Other Entity"), including our Executive Chairman and Chief Executive Officer, who is expected to serve as Non-Executive Chairman of AMC Networks when he completes his service as Interim Executive Chairman of AMC Networks. <br>

There will be no overlap of Class A Directors as between MSG Entertainment and the Company.

The overlapping directors and officers may have actual or apparent conflicts of interest with respect to matters involving or affecting each company. In addition, after the Distribution, certain of our directors and officers will continue to own stock and/or stock options or other equity awards of an Other Entity. These ownership interests could create actual, apparent or potential conflicts of interest when these individuals are faced with decisions that could have different implications for our Company and an Other Entity.

The Company's amended and restated certificate of incorporation will acknowledge that directors and officers of the Company may also be serving as directors, officers, employees or agents of an Other Entity (the "Overlap Persons"), and that the Company may engage in material business transactions with such Other Entities. The Company will renounce its rights to certain business opportunities and the Company's amended and restated certificate of incorporation will provide that no Overlap Person will be liable to the Company or its stockholders for breach of any fiduciary duty that would otherwise occur by reason of the fact that any such individual directs a corporate opportunity (other than certain limited types of opportunities set forth in our amended and restated certificate of incorporation) to one or more of the Other Entities instead of the Company, or does not refer or communicate information regarding such corporate opportunities to the Company. These provisions in our amended and restated certificate of incorporation will also expressly validate certain contracts, agreements, arrangements and transactions (and amendments, modifications or terminations thereof) between the Company and the Other Entities and, to the fullest extent permitted by law, will provide that the actions of the Overlap Persons in connection therewith are not breaches of fiduciary duties owed to the Company, any of its subsidiaries or their respective stockholders.

See "Certain Relationships and Related Party Transactions — Certain Relationships and Potential Conflicts of Interest" and "Description of Capital Stock — Certain Corporate Opportunities and Conflicts."

Control by Dolan Family Following the Distribution, we will be controlled by the Dolan Family Group. We have been informed that the Dolan Family Group will

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enter into a stockholders agreement (the "Stockholders Agreement") relating, among other things, to the voting of its shares of our Class B Common Stock. As a result, following the Distribution, we will be a "controlled company" under the corporate governance rules of the NYSE. Our Board of Directors has elected not to comply with the NYSE requirements for a majority-independent board of directors and an independent corporate governance and nominating committee because of our status as a controlled company. The Dolan Family Group also controls MSG Entertainment, MSG Sports and AMC Networks. See "Risk Factors — Risks Related to the Spin-off Transaction — *We Are Controlled by the Dolan Family. As a Result of Their Control, the Dolan Family Has the Ability to Prevent or Cause a Change in Control or Approve, Prevent or Influence Certain Actions by the Company.*" Immediately following the Distribution, nine of the members of our Board of Directors will be members of the Dolan family. <br>

Post-Distribution Dividend Policy We do not expect to pay any cash dividends on our common stock in the foreseeable future. All decisions regarding the payment of dividends will be made by our Board of Directors from time to time in accordance with applicable law.

Risk Factors Stockholders should carefully consider the matters discussed under "Risk Factors."

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**SELECTED HISTORICAL AND UNAUDITED PRO FORMA COMBINED FINANCIAL DATA** 

The historical operating and balance sheet data included in the following selected financial data table have been derived from the unaudited combined financial statements as of December 31, 2022 and June 30, 2022 and for the six months ended December 31, 2022 and 2021 and the audited combined financial statements as of June 30, 2022 and 2021 and for the three years ended June 30, 2022, 2021 and 2020 included elsewhere in this information statement. The historical financial information presented below does not necessarily reflect what our results of operations and financial position would have been if we had operated as a separate publicly-traded entity during those periods. The selected historical financial data presented below should be read in conjunction with the combined financial statements included elsewhere in this information statement and with "Management's Discussion and Analysis of Financial Condition and Results of Operations."

Also set forth below are summary unaudited pro forma combined balance sheet data as of December 31, 2022 and summary unaudited pro forma combined statements of operations data for the six months ended December 31, 2022 and the year ended June 30, 2022. The unaudited pro forma condensed combined balance sheet information has been prepared giving effect to the distribution as if this transaction had occurred as of December 31, 2022. The unaudited pro forma condensed combined statements of operations have been prepared giving effect to the distribution as if this transaction had occurred on July 1, 2021. The unaudited pro forma condensed combined financial information also reflects certain assumptions that we believe are reasonable given the information currently available. The unaudited pro forma financial information does not purport to represent what the Company's financial position and results of operations actually would have been had the Distribution occurred on the dates indicated, or to project the Company's financial performance for any future period. See "Unaudited Pro Forma Condensed Combined Financial Information" for more information.

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|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Pro Forma Combined** | **Pro Forma Combined** | **Historical** | **Historical** | **Historical** | **Historical** | **Historical** |
|  | **Six Months<br>Ended<br>December 31,**<br>**2022** | **Year Ended<br>June 30,**<br>**2022** | **Six Months Ended<br>December 31,** | **Six Months Ended<br>December 31,** | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** |
|  | **Six Months<br>Ended<br>December 31,**<br>**2022** | **Year Ended<br>June 30,**<br>**2022** | **2022** | **2021** | **2022** | **2021** | **2020** |
|  | **(in thousands, except per share information)** | **(in thousands, except per share information)** | **(in thousands, except per share information)** | **(in thousands, except per share information)** | **(in thousands, except per share information)** | **(in thousands, except per share information)** | **(in thousands, except per share information)** |
|  **Operating Data:** |  |  |  |  |  |  |  |
|  Revenues | $502332 | $653490 | $502332 | $281162 | $653490 | $81812 | $584601 |
|  Operating income (loss) | 76846 | (70162) | 102134 | (15931) | (5648) | (237288) | 225332 |
|  Net income (loss) | 52466 | (202831) | 78807 | (58369) | (136200) | (219308) | 170659 |
|  Less: Net loss attributable to nonredeemable noncontrolling interests | (553) | (2864) | (553) | (367) | (2864) | (694) | (1071) |
|  Net income (loss) attributable to Spinco's stockholders | 53019 | (199967) | 79360 | (58002) | (133336) | (218614) | 171730 |
|  **Balance Sheet Data:** |  |  |  |  |  |  |  |
|  Total assets | 1398847 |  | 1548961 |  | 1526701 | 1697289 |  |
|  Total debt, net of deferred financing costs | 664647 |  | 664647 |  | 663674 | 617785 |  |
|  Total Spinco divisional equity (deficit) | (51225) |  | 98889 |  | (1475) | 495902 |  |
|  Pro forma earnings (loss) per share: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | $1.03 | $(3.91) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | $1.03 | $(3.91) |  |  |  |  |  |
|  Pro forma weighted-average common shares outstanding: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | 51558 | 51127 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | 51624 | 51127 |  |  |  |  |  |
|  **Non-GAAP Financial measures <sup>(a)</sup>** |  |  |  |  |  |  |  |
|  Adjusted operating income (loss) | $110649 | $11637 | $137798 | $26418 | $79095 | $(123384) | $92250 |

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*<sup>(a)</sup>* *See "Adjusted operating income (loss) ("AOI")" below.* 

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|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Pro Forma Combined** | **Pro Forma Combined** | **Historical** | **Historical** | **Historical** | **Historical** | **Historical** |
|  | **Six Months<br>Ended<br>December 31,**<br>**2022** | **Year<br>Ended<br>June 30,**<br>**2022** | **Six Months Ended<br>December 31,** | **Six Months Ended<br>December 31,** | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** |
|  | **Six Months<br>Ended<br>December 31,**<br>**2022** | **Year<br>Ended<br>June 30,**<br>**2022** | **2022** | **2021** | **2022** | **2021** | **2020** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  **Other Financial Data:** |  |  |  |  |  |  |  |
|  Reconciliation of Operating income (loss) to Adjusted operating income (loss): |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating income (loss) | $76846 | $(70162) | $102134 | $(15931) | $(5648) | $(237288) | $225332 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash portion of arena license fees from MSG Sports <sup>(a)</sup> | (12929) | (27754) | (12929) | (11889) | (27754) | (13026) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation expense | 12104 | 34802 | 13965 | 21079 | 37746 | 40663 | 26110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 31571 | 69534 | 31571 | 33159 | 69534 | 71576 | 81591 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring charges | 7359 | 5171 | 7359 |  | 5171 | 14691 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains, net on dispositions | (4412) |  | (4412) |  |  |  | (240783) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization for capitalized cloud computing arrangement costs | 104 |  | 104 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurement of deferred compensation plan liabilities | 6 | 46 | 6 |  | 46 |  |  |
|  Adjusted operating income (loss) | $110649 | $11637 | $137798 | $26418 | $79095 | $(123384) | $92250 |

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*<sup>(a)</sup>* *This adjustment represents the non-cash portion of operating lease revenue related to the Company's Arena License Agreements with MSG Sports. Pursuant to GAAP, recognition of operating lease revenue is recorded on a straight-line basis over the term of the agreement based upon the value of total future payments under the arrangement. As a result, operating lease revenue is comprised of a contractual cash component plus or minus a non-cash component for each period presented. Operating income on a GAAP basis includes lease income of (i) $20,220 and $17,293 of revenue collected in cash for the six months ended December 31, 2022 and 2021, respectively, and (ii) a non-cash portion of $12,929 and $11,889 for the six months ended December 31, 2022 and 2021, respectively. For Fiscal Years 2022, 2021 and 2020, operating income on a GAAP basis includes lease income of (i) $40,319, $8,319 and nil, respectively, collected in cash, and (ii) a non-cash portion of $27,754, $13,026 and nil, respectively.* 

*Adjusted operating income (loss) ("AOI")* 

The Company evaluates performance based on several factors, of which the key financial measure is adjusted operating income (loss), a non-GAAP financial measure. We define adjusted income (loss) as operating income (loss) excluding:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the impact of non-cash straight-line leasing revenue associated with
the Arena License Agreements with MSG Sports,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) depreciation, amortization and impairments of property and equipment, goodwill and intangible assets,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) amortization for capitalized cloud computing arrangement costs,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) share-based compensation expense,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) restructuring charges or credits,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) merger and acquisition-related costs, including litigation expenses,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) gains or losses on sales or dispositions of businesses and associated settlements,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the impact of purchase accounting adjustments related to business acquisitions, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) gains and losses related to the remeasurement of liabilities under MSG Entertainment's Executive Deferred
Compensation Plan (which was established in November 2021).

The Company believes that given the length of the Arena License Agreements and resulting magnitude of the difference in leasing revenue recognized and cash revenue received, the exclusion of non-cash leasing revenue provides investors with a clearer picture of the Company's operating performance. Management believes that this adjustment is beneficial for other incremental reasons as well. This adjustment provides senior management, investors and analysts with important information regarding a long-term related party agreement with MSG Sports. In addition, this adjustment is included under the Company's debt covenant compliance calculations and is a component of the performance measures used to evaluate, and compensate, senior management of the Company. The Company believes that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of the Company's business without regard to the settlement of an obligation that is not expected to be made in cash. The Company eliminates merger and acquisition-related costs, when applicable, because the Company does not consider such costs to be indicative of the ongoing operating performance of the Company as they result from an event that is of a non-recurring nature, thereby enhancing comparability. In addition, management believes that the exclusion of gains and losses related to the remeasurement of liabilities under the MSG Entertainment's Executive Deferred Compensation Plan, which were included for the first time in Fiscal Year 2022, provides investors with a clearer picture of the Company's operating performance given that, in accordance with GAAP, gains and losses related to the remeasurement of liabilities under the MSG Entertainment's Executive Deferred Compensation Plan are recognized in Operating (income) loss whereas gains and losses related to the remeasurement of the assets under the MSG Entertainment's Executive Deferred Compensation Plan, which are equal to and therefore fully offset the gains and losses related to the remeasurement of liabilities, are recognized in Other income (expense), net, which is not reflected in Operating income (loss).

The Company believes AOI is an appropriate measure for evaluating the operating performance of the Company on a combined basis. AOI and similar measures with similar titles are common performance measures used by investors and analysts to analyze the Company's performance. The Company uses revenues and AOI measures as the most important indicators of its business performance and evaluates management's effectiveness with specific reference to these indicators.

AOI should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with GAAP. Since AOI is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. The Company has presented the components that reconcile operating income (loss), the most directly comparable GAAP financial measure, to AOI.

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**QUESTIONS AND ANSWERS ABOUT THE DISTRIBUTION** 

The following is a brief summary of the terms of the Distribution. Please see "The Distribution" for a more detailed description of the matters described below.

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| **Q:** | **What is the Distribution?**  |

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| A: | The Distribution is the method by which MSG Entertainment will separate the business of our Company from MSG Entertainment's other business, creating two separate, publicly traded companies. In the Distribution, MSG Entertainment will distribute to its stockholders shares of our Class A Common Stock and Class B Common Stock that it owns. Following the Distribution, we will be a separate company from MSG Entertainment. MSG Entertainment will continue to own approximately 38% of our outstanding Class A Common Stock (approximately 33% of our total outstanding common stock). The number of shares of MSG Entertainment common stock you own will not change as a result of the Distribution.  |

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| **Q:** | **What is being distributed in the Distribution?**  |

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| A: | Approximately [●] shares of our Class A Common Stock and [●] shares of our Class B Common Stock will be distributed in the Distribution, based upon the number of shares of MSG Entertainment Class A Common Stock and MSG Entertainment Class B Common Stock outstanding on the record date. The shares of our Class A Common Stock and Class B Common Stock to be distributed by MSG Entertainment will constitute approximately 62% of the issued and outstanding shares of our Class A Common Stock and all of the Class B Common Stock immediately after the Distribution. For more information on the shares being distributed in the Distribution, see "Description of Capital Stock — Class A Common Stock and Class B Common Stock."  |

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| **Q:** | **Which business and assets will remain with MSG Entertainment and which business and assets will transfer to the Company?**  |

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A: Following the Distribution, the Company will include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A diverse collection of venues: The Garden, The Theater at Madison Square Garden, Radio City Music Hall, the
Beacon Theatre, and The Chicago Theatre;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The entertainment and sports bookings business, which showcases a broad array of compelling concerts, family
shows and special events, as well as a diverse mix of sporting events, for millions of guests annually;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Long-term Arena License Agreements with the New York Knicks and New York Rangers, which require both teams to
play their home games exclusively at The Garden;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Radio City Rockettes and *Christmas Spectacular* production; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approximately $[●] in cash.

Following the Distribution, MSG Entertainment will include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• MSG Sphere, which are planned state-of-the-art venues that will employ cutting-edge technology and multi-sensory storytelling to deliver immersive experiences on an unparalleled scale. The first MSG Sphere is under construction in
Las Vegas and is expected to open in the second half of calendar 2023;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• MSG Networks, which owns two regional sports and entertainment networks, MSG Network and MSG Sportsnet, as well
as a companion streaming service, MSG GO, and other digital properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Majority interest in Tao Group Hospitality, a global entertainment dining and nightlife provider;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an approximately 33% economic interest in the Company (for the avoidance of doubt, MSG Entertainment will not own
any of the Company's Class B Common Stock following the Distribution); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approximately $[●] in cash.

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| **Q:** | **What will I receive in the Distribution?**  |

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| A: | Holders of MSG Entertainment Class A Common Stock will receive a distribution of one share of our Class A Common Stock for every one share of MSG Entertainment Class A Common Stock held by them on the record date, and holders of MSG Entertainment Class B Common Stock will receive a distribution of one share of our Class B Common Stock for every one share of MSG Entertainment Class B Common Stock held by them on the record date. As a result of the Distribution, your proportionate interest in MSG Entertainment will not change. For a more detailed description, see "The Distribution."  |

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| **Q:** | **What is the record date for the Distribution?**  |

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| A: | Record ownership will be determined as of the close of business, New York City time, on [●], 2023, which we refer to as the "record date." The person in whose name shares of MSG Entertainment common stock are registered as of the close of business on the record date is the person to whom shares of the Company's common stock will be issued in the Distribution. As described below, if a record holder of MSG Entertainment Class A Common Stock sells those shares regular way after the record date and on or prior to the Distribution date, the seller will be obligated to deliver to the purchaser the shares of our common stock that are issued in respect of the transferred MSG Entertainment Class A Common Stock.  |

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| **Q:** | **When will the Distribution occur?**  |

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A: Shares of our Class A Common Stock and Class B Common Stock will be distributed by the transfer and distribution agent, on behalf of MSG Entertainment, effective at 11:59 p.m., New York City time, on [●], 2023, which we refer to as the "Distribution date."

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| **Q:** | **What will the relationship between MSG Entertainment and us be following the Distribution?**  |

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| A: | Following the Distribution, we will be a separate public company. MSG Entertainment will initially own approximately 38% of the outstanding Class A Common Stock, representing an approximately 33% economic interest in us. In connection with the Distribution, we and MSG Entertainment have entered into a Distribution Agreement and several other agreements for the purpose of accomplishing the Distribution of our common stock to MSG Entertainment's common stockholders. These agreements also govern our relationship with MSG Entertainment subsequent to the Distribution and provide for the allocation of employee benefit, tax and some other liabilities and obligations attributable to periods prior to, at and after the Distribution. These agreements also include arrangements with respect to transition services under the Transition Services Agreement and a number of ongoing commercial relationships. The Distribution Agreement provides that we and MSG Entertainment will provide each other with appropriate indemnities with respect to liabilities arising out of the business being transferred to us by MSG Entertainment. We will also be party to other arrangements with MSG Entertainment and its subsidiaries. See "Certain Relationships and Related Party Transactions." Following the Distribution, we and MSG Entertainment will both be controlled by the Dolan Family Group.  |

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Following the Distribution, there will be an overlap between an officer of the Company and MSG Entertainment. James L. Dolan will serve as the Executive Chairman and Chief Executive Officer of both the Company and MSG Entertainment and as the Executive Chairman of MSG Sports. James L. Dolan also

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currently serves as Interim Executive Chairman of AMC Networks. In addition, Gregg G. Seibert will serve as a Vice Chairman of the Company, MSG Sports, MSG Entertainment and AMC Networks and Charles F. Dolan will serve as Chairman Emeritus of AMC Networks concurrently with his service on our Board. Furthermore, immediately following the Distribution, nine of the members of the Board of Directors of the Company will also serve as directors of MSG Entertainment, nine will serve as directors of MSG Sports and five will serve as directors of AMC Networks, including our Executive Chairman and Chief Executive Officer, who is expected to serve as Non-Executive Chairman of AMC Networks when he completes his service as Interim Executive Chairman of AMC Networks. There will be no overlap of Class A Directors as between MSG Entertainment and the Company.

See "Certain Relationships and Related Party Transactions — Certain Relationships and Potential Conflicts of Interest" for a discussion of the policy that will be in place for dealing with potential conflicts of interest that may arise from our ongoing relationships with MSG Entertainment, MSG Sports and AMC Networks.

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| **Q:** | **What voting power will current MSG Entertainment shareholders (including the Dolan Family Group) and others hold in the Company immediately following the Distribution?**  |

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| A: | In the Distribution, holders of MSG Entertainment Class A Common Stock will receive a distribution of one share of our Class A Common Stock for every one share of MSG Entertainment Class A Common Stock held by them on the record date, and holders of MSG Entertainment Class B Common Stock will receive a distribution of one share of our Class B Common Stock for every one share of MSG Entertainment Class B Common Stock held by them on the record date. The Company's Class A Common Stock is entitled to one vote per share and to collectively elect 25% of our Board of Directors, and the Company's Class B Common Stock will be entitled to ten votes per share and to collectively elect the remaining 75% of our Board of Directors. See "Description of Capital Stock" for more information. The Dolan Family Group will collectively own all of our Class B Common Stock, approximately [●]% of our outstanding Class A Common Stock and approximately [●]% of the total voting power of all our outstanding common stock. As a result, the Company will be a "controlled company" within the meaning of the corporate governance standards of the NYSE and the Dolan Family Group will have the ability to determine all matters requiring approval by stockholders (other than the election of the Class A Directors and any matters requiring a separate vote by the holders of the Class A common stock).  |

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| **Q:** | **What do I have to do to participate in the Distribution?**  |

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| A: | No action is required on your part. Stockholders of MSG Entertainment on the record date for the Distribution are not required to pay any cash or deliver any other consideration, including any shares of MSG Entertainment common stock, for the shares of our common stock distributable to them in the Distribution.  |

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| **Q:** | **If I sell, on or before the Distribution date, shares of MSG Entertainment Class A Common Stock that I held on the record date, am I still entitled to receive shares of Spinco Class A Common Stock distributable with respect to the shares of MSG Entertainment Class A Common Stock I sold?**  |

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| A: | It depends on the market in which you sell your shares. Beginning on [●], 2023 and continuing until the occurrence of the Distribution, MSG Entertainment expects that the MSG Entertainment Class A Common Stock will trade in two markets on the NYSE: in the "regular way" market under the symbol "MSGE" and in the "ex-distribution" market under the symbol "[●]". If you own shares of MSG Entertainment Class A Common Stock on the record date and thereafter sell those shares regular way on or prior to the Distribution date, you will also be selling the shares of our Class A Common Stock that would have been distributed to you in the Distribution with respect to the shares of MSG Entertainment Class A Common Stock you sell.  |

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Conversely, a person who purchases shares of MSG Entertainment Class A Common Stock after the record date and on or prior to the Distribution date will be entitled to receive from the seller of those shares the shares of our Class A Common Stock issued in the Distribution with respect to the transferred MSG Entertainment Class A Common Stock.

However, if you own shares of MSG Entertainment Class A Common Stock on the record date and thereafter sell those shares in the ex-distribution market on or prior to the Distribution date, you will not be selling the shares of our Class A Common Stock that will be distributed to you in the Distribution with respect to the shares of MSG Entertainment Class A Common Stock you sell. Conversely, a person who purchases shares of MSG Entertainment Class A Common Stock in the ex-distribution market after the record date and on or prior to the Distribution date will not be entitled to receive from the seller of those shares the shares of our Class A Common Stock issued in the Distribution with respect to the transferred MSG Entertainment Class A Common Stock.

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| **Q:** | **How will fractional shares be treated in the Distribution?**  |

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| A: | If you would be entitled to receive a fractional share of our common stock in the Distribution, you will instead receive a cash payment. See "The Distribution — Manner of Effecting the Distribution" for an explanation of how the cash payments will be determined and "The Distribution — Material U.S. Federal Income Tax Consequences of the Distribution" for an explanation of the tax consequences of such cash payments.  |

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| **Q:** | **How will MSG Entertainment distribute shares of Spinco common stock to me?**  |

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A: Holders of shares of MSG Entertainment Class A Common Stock or MSG Entertainment Class B Common Stock on the record date will receive shares of the same class of our common stock in book entry form. See "The Distribution — Manner of Effecting the Distribution" for a more detailed explanation.

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| **Q:** | **What is the reason for the Distribution?**  |

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A: The potential benefits considered by MSG Entertainment's board of directors in making the determination to consummate the Distribution included the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to provide each of MSG Entertainment and the Company with increased flexibility to fully pursue and fund its
business plan, including capital expenditures, investments and acquisitions that would be more difficult to consider or effectuate in the absence of the Distribution. This increased financial flexibility reflects the belief that investors in a
company with the mix of assets that each of MSG Entertainment and the Company will own following the Distribution will be more receptive to strategic initiatives that MSG Entertainment and the Company may respectively pursue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to increase the aggregate value of the stock of MSG Entertainment and the Company above the value that the stock
of MSG Entertainment would have had if it had continued to represent an interest in both the businesses of MSG Entertainment and the Company, so as to: (i) allow each company to use its stock to pursue and achieve strategic objectives,
including evaluating and effectuating acquisitions and increasing the long-term attractiveness of equity compensation programs in a significantly more efficient and effective manner with significantly less dilution to existing stockholders; and
(ii) allow each company to offer a more focused investment profile to investors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to provide MSG Entertainment, through the retained equity interest, with the opportunity to raise cash proceeds
for corporate purposes, including capital expenditures, and/or to use such shares for other transactions that would be advantageous for MSG Entertainment and its stockholders. These capital expenditures will include funds that will be utilized to
pursue growth opportunities associated with

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MSG Entertainment's Sphere initiative. In addition, upon the Distribution, MSG Entertainment will pledge the entire retained equity interest to secure the $275 million senior secured term loan facility of MSG Las Vegas, LLC, an indirect wholly-owned subsidiary of MSG Entertainment, which was entered into on December 22, 2022. This pledge will be released once the Las Vegas Sphere has been substantially completed and certain of its systems are ready to be used in live, immersive events. The Company will have no interest, contractual or otherwise, in the Sphere venues. <br>

MSG Entertainment's board of directors also considered several factors that might have a negative effect on MSG Entertainment as a result of the Distribution. MSG Entertainment's common stock may come under initial selling pressure as certain MSG Entertainment stockholders sell their shares because they are not interested in holding an investment in MSG Entertainment's remaining business. Moreover, certain factors, such as a lack of comparable public companies, may limit investors' ability to appropriately value MSG Entertainment's common stock. In addition, the Distribution would separate from MSG Entertainment the business and assets of the Company, which represent significant value. Because the Company will no longer be part of MSG Entertainment, the Distribution will also affect the terms upon which MSG Entertainment can pursue cross-company business transactions and initiatives with the Company. In addition, after the Distribution, MSG Entertainment's results will not reflect the generally more predictable cash flow from the Entertainment business segment, which may result in more volatile and less predictable operating results and cash flow for MSG Entertainment. Finally, following the Distribution, MSG Entertainment and its remaining business will need to absorb certain corporate and administrative costs previously allocated to its Entertainment business segment.

MSG Entertainment's board of directors considered certain aspects of the Distribution that may be adverse to the Company. The Company's common stock may come under initial selling pressure as certain MSG Entertainment stockholders sell their shares in the Company because they are not interested in holding an investment in the Company's business. Moreover, certain factors, such as a lack of comparable public companies, may limit investors' ability to appropriately value the Company's common stock. Because the Company will no longer be part of MSG Entertainment, the Distribution will also affect the terms upon which the Company can pursue cross-company business transactions and initiatives with MSG Entertainment's other businesses. In addition, after the Distribution, the Company's results will not reflect cash flow from the MSG Networks and Tao Group Hospitality businesses. As a result of the Distribution, the Company will bear significant incremental costs associated with being a publicly held company and will need to absorb certain corporate and operational support costs previously allocated to MSG Entertainment. This cost increase will be partially offset by payments that the Company will receive from MSG Entertainment resulting from the establishment of the Transition Services Agreement, which will be recorded as a reduction of operating expenses. Refer to the "Unaudited Pro Forma Condensed Combined Financial Information" section for further details.

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| **Q:** | **What are the federal income tax consequences to me of the Distribution?**  |

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| A: | MSG Entertainment expects to obtain an opinion from Sullivan & Cromwell LLP substantially to the effect that, among other things, the distribution by MSG Entertainment of our Class A Common Stock and Class B Common Stock to the holders of MSG Entertainment Class A Common Stock and MSG Entertainment Class B Common Stock, respectively (i.e., the Distribution), should qualify as a tax-free distribution under the Code. For U.S. federal income tax purposes, the Distribution is not expected to result in the recognition of gain to MSG Entertainment with respect to the distribution of our Class A Common Stock or our Class B Common Stock to the MSG Entertainment stockholders and, except to the extent that you receive cash in lieu of fractional shares of our common stock, you will not recognize income, gain or loss, and no amount will be included in your income upon the receipt of shares of our common stock pursuant to the Distribution. The opinion will not be binding on the IRS or the courts. See "The Distribution — Material  |

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U.S. Federal Income Tax Consequences of the Distribution." Certain transactions related to the Distribution that are not addressed (or expected to be addressed) by the opinion could result in the recognition of income or gain by MSG Entertainment. The opinion will rely on factual representations and reasonable assumptions, which, if incorrect or inaccurate, may jeopardize the ability to rely on such opinion. MSG Entertainment does not intend to request any ruling from the IRS as to the U.S. federal income tax consequences of the Distribution. MSG Entertainment will be required by applicable tax rules to dispose of the retained shares within a fixed period of time, which may occur through a series of steps, including sales, exchange offers or pro rata distributions.

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| **Q:** | **Does Spinco intend to pay cash dividends?**  |

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A: No. We do not expect to pay any cash dividends on our common stock in the foreseeable future. All decisions regarding the payment of dividends will be made by our Board of Directors from time to time in accordance with applicable law.

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| **Q:** | **How will Spinco common stock trade?**  |

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| A: | Currently, there is no public market for our common stock. We will apply for our Class A Common Stock to be listed on the NYSE under the symbol "MSGE" (and we will change our name to "Madison Square Garden Entertainment Corp.") and we expect that Madison Square Garden Entertainment Corp. will change its symbol on the NYSE to "SPHR" (and be renamed "MSG Sphere Corp.") in connection with the Distribution. It is anticipated that trading will commence on a when-issued basis prior to the Distribution. On the first trading day following the Distribution date, when-issued trading in respect of our Class A Common Stock will end and regular way trading will begin. Our Class B Common Stock will not be listed on a securities exchange.  |

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| **Q:** | **Will the Distribution affect the trading price of my MSG Entertainment Class A Common Stock?**  |

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|:---|:---|
| A: | Yes. After the initial distribution of our Class A Common Stock, the trading price of MSG Entertainment Class A Common Stock may be lower than the trading price of the MSG Entertainment Class A Common Stock immediately prior to the Distribution. Moreover, until the market has evaluated the operations of MSG Entertainment without the operations of the Entertainment business segment (except for MSG Sphere) that was owned and operated by MSG Entertainment, the trading price of MSG Entertainment Class A Common Stock may fluctuate significantly. MSG Entertainment believes that the separation of the Company from MSG Entertainment offers its stockholders the greatest long-term value. However, the combined trading prices of MSG Entertainment Class A Common Stock and Spinco Class A Common Stock after the Distribution may be lower than the trading price of MSG Entertainment Class A Common Stock prior to the Distribution. See "Risk Factors" beginning on page 26.  |

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|:---|:---|
| **Q:** | **Can MSG Entertainment decide to cancel the Distribution?**  |

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|:---|:---|
| A: | Yes. The occurrence of the Distribution will be subject to certain conditions, including the final approval of the MSG Entertainment board of directors. The MSG Entertainment board of directors may, in its sole and absolute discretion, determine to impose or waive conditions to the Distribution or abandon the Distribution. If the MSG Entertainment board of directors decides to cancel the Distribution or otherwise materially amend the terms of the Distribution, MSG Entertainment will notify stockholders of such decision by issuing a press release and/or filing a current report on Form 8-K.  |

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| **Q:** | **Do I have appraisal rights?**  |

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A: No. Holders of MSG Entertainment common stock are not entitled to appraisal rights in connection with the Distribution.

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| **Q:** | **Who is the transfer and distribution agent for Spinco common stock?**  |

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A: EQ Shareowner Services, P.O. Box 64874, St. Paul, Minnesota 55164-0854. Telephone: 1-800-468-9716 (U.S. toll free) or 651-450-4064 (International). Corporate website: www.shareowneronline.com.

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|:---|:---|
| **Q:** | **Where can I get more information?**  |

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A: If you have questions relating to the mechanics of the Distribution of shares of Spinco common stock, you should contact the transfer and distribution agent:

EQ Shareowner Services, P.O. Box 64874, St. Paul, Minnesota 55164-0854. Telephone: 1-800-468-9716 (U.S. toll free) or 651-450-4064 (International). Corporate website: www.shareowneronline.com.

If you have questions relating to the Distribution or Spinco, you should contact:

Madison Square Garden Entertainment Corp.

Investor Relations Department

Two Pennsylvania Plaza

New York, NY 10121

Telephone: 1-212-631-5422

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**RISK FACTORS** 

You should carefully consider the following risk factors and all the other information contained in this information statement in evaluating us and our common stock.

**Risks Related to Our Business** 

*Our Business Faces Intense and Wide-Ranging Competition That May Have a Material Negative Effect on Our Business and Results of Operations.* 

Our business competes, in certain respects and to varying degrees, with other leisure-time activities such as television, radio, motion pictures, sporting events and other live performances, the Internet, social media and social networking platforms, and online and mobile services, including sites for online content distribution, video on demand and other alternative sources of entertainment and information, in addition to competing for concerts with other event venues, for total entertainment dollars in our marketplace.

The success of our business is largely dependent on the continued success of the *Christmas Spectacular*, and the availability of, and our venues' ability to attract, concerts, family shows, sporting events and other events, competition for which is intense, and the ability of performers to attract strong attendance at our venues. For example, The Garden, The Theater at Madison Square Garden, Radio City Music Hall and the Beacon Theatre all compete with other entertainment options in the New York City metropolitan area. The Chicago Theatre faces similar competition from other entertainment options in its market and elsewhere.

In addition, our business is highly sensitive to customer tastes and depends on our ability to attract artists and events. The success of our business depends in part upon our ability to offer live entertainment that is popular with customers. We contract with promoters and others to provide performers and events at our venues. There may be a limited number of popular artists, groups or events that can attract audiences to our venues, and our business would suffer to the extent that we are unable to continue to attract such artists, groups and events to perform at our venues. See "— Risks Related to Our Business — *Our Operations and Operating Results Were, and May in the Future be, Materially Impacted by the COVID-19 Pandemic and Actions Taken in Response by Governmental Authorities and Certain Professional Sports Leagues.*"

In order to maintain the competitive positions of The Garden and our other venues, we must invest on a continuous basis in state-of-the-art technology. In addition, we must maintain a competitive pricing structure for events that may be held in our venues, many of which have alternative venue options available to them in New York and other cities. We invest a substantial amount in our *Christmas Spectacular* to continue to attract audiences. We cannot be assured that such investments will generate revenues that are sufficient to justify our investment or even that exceed our expenses.

*The Success of Our Business Depends on the Continued Popularity of the Christmas Spectacular Production, and the Sporting Events We Host at Our Venues, the Decline of Which Could Have a Material Negative Effect on Our Business and Results of Operations.* 

The financial results of our business are dependent on the *Christmas Spectacular* production, for which the 2019 production (the last production presented prior to the impact of the COVID-19 pandemic) represented 22% of our revenues in Fiscal Year 2020. Fan and consumer tastes also change frequently and it is a challenge to anticipate what will be successful at any point in time. Should the popularity of the *Christmas Spectacular* decline (including, for example, due to customer unwillingness to travel to New York City, purchase tickets to a full-capacity indoor event, comply with safety protocols or satisfy vaccination requirements to the extent applicable, all as a result of the COVID-19 pandemic), our revenues from ticket sales and concession and merchandise sales would likely decline, and we might not be able to replace the lost revenue with revenues from other sources.

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As a result of our commercial agreements with MSG Sports, the success of our business is also impacted in part by the popularity of MSG Sports' Knicks and Rangers franchises with their fan bases and, in varying degrees, the teams achieving on-court and on-ice success, which can generate fan enthusiasm, resulting in additional suite, sponsorship, food and beverage and merchandise sales during the teams' regular seasons. Furthermore, success in the regular season may qualify the Knicks and Rangers for participation in post-season playoffs, which provides us with additional revenue by increasing the number of games played by the teams at The Garden, potentially helping improve attendance in subsequent seasons and increasing the popularity of our suites and sponsorships.

*Our Operations and Operating Results Were, and May in the Future be, Materially Impacted by the COVID-19 Pandemic and Actions Taken in Response by Governmental Authorities and Certain Professional Sports Leagues.* 

The Company's operations and operating results were materially impacted by the COVID-19 pandemic (including COVID-19 variants) and actions taken in response by governmental authorities and certain professional sports leagues during Fiscal Years 2020, 2021 and 2022.

As a result of government-mandated assembly limitations and closures, all of our venues were closed beginning in March 2020 and substantially all of our business operations were suspended for the majority of Fiscal Year 2021. Use of The Garden resumed for Knicks and Rangers home games without fans in December 2020 and January 2021, respectively, and was available at 10% seating capacity from February through May 2021 subject to certain safety protocols and social distancing. As a result, the payments we received under the Arena License Agreements during this period were materially impacted. Beginning in May 2021, all of our New York venues were permitted to host guests at full capacity, subject to certain restrictions, and effective June 2021, The Chicago Theatre was permitted to host events without restrictions. Guests of our Chicago and New York venues were also subject to certain vaccination requirements until February and March 2022, respectively. During Fiscal Year 2022, we had fewer ticketed events at our venues in the first half of the fiscal year as compared with Fiscal Year 2019 (the last full fiscal year not impacted by COVID-19) due to the lead-time required to book touring acts and artists, and an increase in COVID-19 cases due to a new variant, which resulted in a number of events at our venues being cancelled or postponed in the second and third fiscal quarters. The impact of the COVID-19 pandemic on our operations also included (i) the partial cancellation of the 2021 production of the *Christmas Spectacular* and (ii) the cancellation of the 2020 production of the *Christmas Spectacular*. As a direct response to this disruption, during Fiscal Years 2020 and 2021, the Company implemented cost savings initiatives in order to streamline operations and preserve liquidity, including furloughing our venue employees while activities were limited, reducing our full-time workforce and implementing additional comprehensive cost reduction measures, such as terminating certain third-party services, negotiating reduced rates and/or reduced service levels with third parties, pursuing targeted savings and reductions in spending on marketing and travel and entertainment, and deferring or limiting non-essential operating or other discretionary expenses. During Fiscal Years 2021 and 2020, over 90% and over 70% of the respective overall declines in our revenues were the result of the COVID-19 pandemic, in each case compared to the prior year period. While the Company substantially recovered from the COVID-19 pandemic during Fiscal Year 2022, the Company still experienced some softness in bookings and attendance, most notably at the beginning of the year along with certain event postponements and cancellations throughout the year, although not at the level of the prior two fiscal years. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Factors Affecting Results of Operations."

It is unclear to what extent COVID-19 concerns, including with respect to new variants, could result in renewed government or league-mandated capacity restrictions or vaccination/mask requirements or impact the use of and/or demand for our venues, demand for our sponsorship and signage assets, deter our employees and vendors from working at our venues (which may lead to difficulties in staffing) or otherwise materially impact our operations. Governmental regulations enacted in response to the COVID-19 pandemic may impact the revenue we derive and/or the expenses we incur from events that we choose to host such that events that were historically profitable would instead result in losses. Concerns about the COVID-19 pandemic could deter artists from touring and/or substantially decrease the use of and demand for our venues. Both the NBA and NHL

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determined to complete their 2019-20 seasons with games away from home arenas, reduce the number of regular season games for the 2020-21 seasons, and conduct the majority of the shortened 2020-21 seasons without fans in attendance, and it is possible that concerns related to COVID-19 could cause professional sports teams in the United States to play games without an audience during future seasons or to suspend, cancel or otherwise reduce the number of games scheduled in the regular reason or playoffs, which could have a material impact on the payments we receive under the Arena License Agreements. See "— Economic and Operational Risks — *We Are Subject to Extensive Governmental Regulation and Our Failure to Comply with These Regulations May Have a Material Negative Effect on Our Business and Results of Operations*."

Our business is particularly sensitive to reductions in travel and discretionary consumer spending. A pandemic, such as COVID-19, could also impede economic activity in impacted regions and globally over the long term, potentially causing a global recession and leading to a further decline in discretionary spending on sports and entertainment events and other leisure activities, which could result in long-term effects on our business. To the extent the COVID-19 pandemic adversely affects our business and financial results, it may also have the effect of heightening many of the other risks described in this "Risk Factors" section, such as those relating to our liquidity, indebtedness and our ability to comply with the covenants contained in the agreements that govern our indebtedness.

*Our Business Strategy Includes the Development of New Productions, Which Could Require Us to Make Considerable Investments for Which There Can Be No Guarantee of Success.* 

As part of our business strategy, we intend to develop new productions for our existing venues, which may include expansions or enhancements of our existing productions or the creation of entirely new productions. Expansion or enhancement of productions and/or the development of new productions could require significant upfront expense that may never result in a viable show, as well as investment in sets, staging, creative processes, commissioning and/or licensing of intellectual property, casting and advertising, and may lead to dislocation of other alternative sources of entertainment that may have played in our venues absent these productions. To the extent that any efforts at expanding or enhancing productions or creating new productions do not result in a viable show, or to the extent that any such productions do not achieve expected levels of popularity among audiences, we may not recover the substantial expenses we previously incurred for non-capitalized investments, or may need to write-off all or a portion of capitalized investments. In addition, any delay in launching such productions or enhancements could result in the incurrence of operating costs which may not be recouped. For example, we wrote off approximately $75.4 million of deferred production costs across Fiscal Years 2016 and 2017 related to the *New York Spectacular Starring the Radio City Rockettes.*

*Our Business is Highly Sensitive to Customer Tastes and Depends on Our Ability to Attract Artists and Events.* 

The success of our business depends in part upon our ability to offer live entertainment that is popular with customers. We contract with promoters and others to provide performers and events at our venues. There may be a limited number of popular artists, groups or events that can attract audiences to our venues, and our business would suffer to the extent that we are unable to continue to attract such artists, groups and events to perform at our venues.

*We Depend on Licenses from Third Parties for the Performance of Musical Works at Our Venues, the Loss of Which or Renewal of Which on Less Favorable Terms May Have a Negative Effect on Our Business and Results of Operations.* 

We are required to obtain public performance licenses from music performing rights organizations, commonly known as "PROs," in connection with the performance of musical works at concerts and certain other live events held at our venues. In exchange for public performance licenses, PROs are paid a per-event royalty, traditionally calculated either as a percentage of ticket revenue or a per-ticket amount. The PRO royalty obligation of any individual event is generally paid by, or charged to, the promoter of the event.

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If we are unable to obtain these licenses, or are unable to obtain them on favorable terms consistent with past practice, it may have a negative effect on our business and results of operations. An increase in the royalty rate and/or the revenue base on which the royalty rate is applied could substantially increase the cost of presenting concerts and certain other live events at our venues. If we are no longer able to pass all or a portion of these royalties on to promoters (or other venue licensees), it may have a negative effect on our business and results of operations.

*Our Properties Are Subject to, and Benefit from, Certain Easements, the Availability of Which May Not Continue on Terms Favorable to Us or at All.* 

Our properties are subject to, and benefit from, certain easements. For example, the "breezeway" into the Madison Square Garden Complex from Seventh Avenue in New York City is a significant easement that we share with other property owners. Our ability to continue to utilize these and other easements, including for advertising and promotional purposes, requires us to comply with a number of conditions. Certain adjoining property owners have easements over our property, which we are required to maintain so long as those property owners meet certain conditions. It is possible that we will be unable to continue to access or maintain any easements on terms favorable to us, or at all, which could have a material negative effect on our business and results of operations.

*A Change to or Withdrawal of a New York City Real Estate Tax Exemption for the Madison Square Garden Complex May Have a Material Negative Effect on Our Business and Results of Operations.* 

Many arenas, ballparks and stadiums nationally and in New York City have received significant public support, such as tax exempt financing, other tax benefits, direct subsidies and other contributions, including for public infrastructure critical to the facilities such as parking lots and transit improvements. Our Madison Square Garden Complex benefits from a more limited real estate tax exemption pursuant to an agreement with the City of New York, subject to certain conditions, and legislation enacted by the State of New York in 1982. For Fiscal Year 2022, the tax exemption was $41.9 million. From time to time, there have been calls to repeal or amend the tax exemption. For example, in January 2023, a number of elected representatives issued a public letter noting the tax exemption status should be reexamined. Notwithstanding the suggestion in the public letter, any repeal or amendment of the tax exemption status would require legislative action by New York State.

We are party to Arena License Agreements with subsidiaries of MSG Sports that require two of MSG Sports' professional sports teams — the Knicks and Rangers — to play all of their home games at The Garden. Under the Arena License Agreements, which each have a term of 35 years (unless extended), the Knicks and the Rangers pay an annual license fee in connection with their respective use of The Garden. In addition, the Arena License Agreements provide us with additional revenue opportunities. Under the Arena License Agreements, the teams are responsible for 100% of any real property or similar taxes applicable to The Garden.

If the tax exemption is repealed or the teams are otherwise subject to the property tax due to no fault of the teams, the revenue that we generate from team events will be reduced on a percentage basis as set forth in the Arena License Agreements. The value of any such revenue reduction could be significant but is expected to be substantially less than the property tax paid by the teams. There can be no assurance that the tax exemption will not be amended in a manner that imposes property tax or repealed in its entirety, either of which could have a material negative effect on our business and results of operations.

**Economic and Operational Risks** 

*Our Business Has Been Adversely Impacted and May, in the Future, Be Materially Adversely Impacted by an Economic Downturn, Recession, Financial Instability, Inflation or Changes in Consumer Tastes and Preferences.* 

Our business depends upon the ability and willingness of consumers and businesses to purchase tickets at our venues, license suites and club memberships at The Garden, spend on food and beverages and merchandise,

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and drive continued sponsorship and signage revenues, and these revenues are sensitive to general economic conditions, recession, fears of recession and consumer behavior. For example, following the 2008 financial crisis, we experienced a lower level of event bookings and reduced renewals of certain of our suite licenses, which adversely affected the Company's results of operations. Further, the industry is often affected by changes in consumer tastes, national, regional and local economic conditions, discretionary spending priorities, demographic trends, traffic patterns and the type, number and location of competing businesses.

Consumer and corporate spending may decline at any time for reasons beyond our control, and the risks associated with our businesses may become more acute in periods of a slowing economy or recession, which may be accompanied by reductions in corporate sponsorship and signage and decreases in attendance at live events, among other things. In addition, inflation, which has significantly risen, has and may continue to increase operational costs, including labor costs, and continued increases in interest rates in response to concerns about inflation may have the effect of further increasing economic uncertainty and heightening these risks. As a result, instability and weakness of the U.S. and global economies, including due to the effects caused by disruptions to financial markets, inflation, recession, high unemployment, geopolitical events and other effects caused by the COVID-19 pandemic and the negative effects on consumers' and businesses' discretionary spending, have and may continue to materially negatively affect our business and results of operations. A prolonged period of reduced consumer or corporate spending, including with respect to sponsorship, such as during the COVID-19 pandemic, could have an adverse effect on our business and our results of operations. See "— Risks Related to Our Business — *Our Operations and Operating Results Were, and May in the Future be, Materially Impacted by the COVID-19 Pandemic and Actions Taken in Response by Governmental Authorities and Certain Professional Sports Leagues*."

*We Do Not Own All of Our Venues and Our Failure to Renew Our Leases on Economically Attractive Terms May Have a Material Negative Effect on Our Business and Results of Operations.* 

We lease the Beacon Theatre and Radio City Music Hall under long-term leases that expire in 2036 and 2038, respectively. MSG Entertainment Group, LLC ("MSG Entertainment Group"), the entity that guarantees the lease for Radio City Music Hall is required to maintain a certain net worth that if not maintained would require the entity to post a letter of credit or provide cash collateral. In connection with the Distribution, we expect MSG Entertainment Holdings, LLC ("MSG Entertainment Holdings") to become the entity that guarantees the lease.

*The Geographic Concentration of Our Business Could Subject Us to Greater Risk Than Our Competitors and Have a Material Negative Effect on Our Business and Results of Operations.*

The Company primarily operates in New York City and, as a result, is subject to greater degrees of risk than competitors with more operating properties or that operate in more markets. The Garden, The Theater at Madison Square Garden, Radio City Music Hall and the Beacon Theatre are all located in New York City. Therefore, the Company is particularly vulnerable to adverse events (including acts of terrorism, natural disasters, epidemics, pandemics, weather conditions, labor market disruptions and government actions) and economic conditions in New York City and surrounding areas. For example, our operations and operating results were materially impacted by the COVID-19 pandemic. See "— Risks Related to Our Business — *Our Operations and Operating Results Were, and May in the Future be, Materially Impacted by the COVID-19 Pandemic and Actions Taken in Response by Governmental Authorities and Certain Professional Sports Leagues*."

*Our Business Could Be Adversely Affected by Terrorist Activity or the Threat of Terrorist Activity, Weather and Other Conditions That Discourage Congregation at Prominent Places of Public Assembly.* 

The success of our business is dependent upon the willingness and ability of patrons to attend events at our venues. The venues we operate, like all prominent places of public assembly, could be the target of terrorist activities, including acts of domestic terrorism, or other actions that discourage attendance. Any such activity or threatened activity at or near one of our venues or other similar venues, including those located elsewhere, could

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result in reduced attendance at our venues and a material negative effect on our business and results of operations. Similarly, a major epidemic or pandemic, such as the COVID-19 pandemic, or the threat or perceived threat of such an event, could adversely affect attendance at our events and venues by discouraging public assembly at our events and venues. Moreover, the costs of protecting against such incidents, including the costs of implementing additional protective measures for the health and safety of our guests, could reduce the profitability of our operations. See "— Risks Related to Our Business — *Our Operations and Operating Results Were, and May in the Future be, Materially Impacted by the COVID-19 Pandemic and Actions Taken in Response by Governmental Authorities and Certain Professional Sports Leagues*."

Weather or other conditions, including natural disasters, in locations where we own or operate venues may affect patron attendance as well as sales of food and beverages and merchandise, among other things. Weather conditions may also require us to cancel or postpone events. Any of these events may have a material negative effect on our business and results of operations, and any such events may harm our ability to obtain or renew insurance coverage on favorable terms or at all.

*We May Pursue Acquisitions and Other Strategic Transactions and/or Investments to Complement or Expand Our Business That May Not Be Successful.* 

From time to time, we may continue to explore opportunities to purchase or invest in other businesses, venues or assets that we believe will complement, enhance or expand our current business or that might otherwise offer us growth opportunities, including opportunities that may differ from the Company's current business. Any transactions that we are able to identify and complete may involve risks, including the commitment of significant capital, the incurrence of indebtedness, the payment of advances, the diversion of management's attention and resources from our existing business to develop and integrate the acquired or combined business, the inability to successfully integrate such business or assets into our operations, litigation or other claims in connection with acquisitions or against companies we invest in or acquire, our lack of control over certain companies, including joint ventures and other minority investments, the risk of not achieving the intended results and the exposure to losses if the underlying transactions or ventures are not successful. At times, we have had significant investments in businesses that we account for under the equity method of accounting, and we may again in the future. Certain of these investments have generated operating losses in the past and certain have required additional investments from us in the form of equity or loans. There can be no assurance that these investments will become profitable individually or in the aggregate or that they will not require material additional funding from us in the future.

We may not control the day-to-day operations of these investments. We have in the past written down and, to the extent that these investments are not successful in the future, we may write down all or a portion of such investments. Additionally, these businesses may be subject to laws, rules and other circumstances, and have risks in their operations, which may be similar to, or different from, those to which we are subject. Any of the foregoing risks could result in a material negative effect on our business and results of operations or adversely impact the value of our investments.

*We Are Subject to Extensive Governmental Regulation and Our Failure to Comply with These Regulations May Have a Material Negative Effect on Our Business and Results of Operations.* 

Our business is subject to the general powers of federal, state and local governments, as well as foreign governmental authorities. We are also subject to the rules, regulations and decisions of the NBA and NHL.

• *Public Health and Safety.* As a result of government mandated assembly limitations and closures implemented
in response to the COVID-19 pandemic, our venues were unable to host events for the substantial majority of Fiscal Year 2021. There can be no assurance that some or all of these restrictions will not be
imposed again in the future due to increased infection rates of COVID-19 or another pandemic. We are unable to predict what the long-term effects of these events, including renewed government regulations or
requirements, will be. For example, future governmental regulations adopted in response to the COVID-19 pandemic may impact the revenue we derive and/or the expenses we incur from the events that we choose to
host, such that events that were historically profitable would instead result in losses. See "— Risks Related to Our Business — *Our* 

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 *Operations and Operating Results Have Been, and May in the Future be, Materially Impacted by the COVID-19 Pandemic and Actions Taken in Response by Governmental Authorities and Certain Professional Sports Leagues.*"

• *Hospitality-related Permits/Licenses*. We hold liquor licenses at each of our venues and are subject to
licensing requirements with respect to the sale of alcoholic beverages in the jurisdictions in which we serve those beverages. Failure to receive or retain, or the suspension of, liquor licenses or permits could interrupt or terminate our ability to
serve alcoholic beverages at the applicable venue and could have a material negative effect on our business and our results of operations. Additional regulation relating to liquor licenses may limit our activities in the future or significantly
increase the cost of compliance, or both. In the jurisdictions in which our venues are located, we are subject to statutes that generally provide that serving alcohol to a visibly intoxicated or minor patron is a violation of the law and may provide
for strict liability for certain damages arising out of such violations. Our liability insurance coverage may not be adequate or available to cover any potential liability.

• *Environmental Laws*. We and our venues are subject to environmental laws and regulations relating to the
use, disposal, storage, emission and release of hazardous and non-hazardous substances, as well as zoning and noise level restrictions which may affect, among other things, the operations of our venues.
Compliance with these regulations and the associated costs may be heightened as a result of the purchase, construction or renovation of a venue. Additionally, certain laws and regulations could hold us strictly, jointly and severally responsible for
the remediation of hazardous substance contamination at our facilities or at third-party waste disposal sites, as well as for any personal injury or property damage related to any contamination.

• *Zoning and Building Regulations.* Our venues are subject to zoning and building regulations including
permits relating to the operation of The Garden. The Garden requires a special zoning permit, which was originally granted by the New York City Planning Commission in 1963 and renewed in July 2013 for 10 years. Certain government officials and
special interest groups sought to use the renewal process to pressure us to improve Penn Station or to relocate The Garden. There can be no assurance regarding the future renewal of the permit or the terms thereof, and the failure to obtain such
renewal or to do so on favorable terms could have a negative effect on our business.

• *Data Privacy*. We are subject to various data privacy and protection laws, regulations, policies and
contractual obligations that apply to the collection, transmission, storage, processing and use of personal information or personal data, which, among other things, impose certain requirements relating to the privacy and security of personal
information. The variety of laws and regulations governing data privacy and protection, and the use of the internet as a commercial medium, are rapidly evolving, extensive and complex, and may include provisions and obligations that are inconsistent
with one another or uncertain in their scope or application.

The data protection landscape is rapidly evolving in the United States. As our operations and business grow, we may become subject to or affected by new or additional data protection laws and regulations and face increased scrutiny or attention from regulatory authorities. For example, California has passed a comprehensive data privacy law, the California Consumer Privacy Act of 2018 (the "CCPA"), and other states, including Virginia and Colorado, have also passed similar laws. Additionally, the California Privacy Rights Act (the "CPRA") imposed additional data protection obligations on covered businesses, including additional consumer rights procedures and obligations, limitations on data uses, new audit requirements for higher-risk data, and constraints on certain uses of sensitive data. The majority of the CPRA provisions went into effect on January 1, 2023, and additional compliance investment and potential business process changes may be required. Further, there are several legislative proposals in the United States, at both the federal and state level, that could impose new privacy and security obligations. We cannot yet determine the impact that these future laws and regulations may have on our business.

In addition, governmental authorities and private litigants continue to bring actions against companies for online collection, use, dissemination and security practices that are unfair or deceptive.

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Our business is, and may in the future be, subject to a variety of other laws and regulations, including licensing, permitting, and historic designation and similar requirements; working conditions, labor, immigration and employment laws; health, safety and sanitation requirements; and compliance with the Americans with Disabilities Act (and related state and local statutes).

Any changes to the legal and regulatory framework applicable to our business could have an adverse impact on our business and our failure to comply with applicable governmental laws and regulations, or to maintain necessary permits or licenses, could result in liability or government actions that could have a material negative effect on our business and results of operations.

*Our Business Is Subject to Seasonal Fluctuations, and Our Operating Results and Cash Flow Could Vary Substantially from Period to Period.* 

Our revenues and expenses have been seasonal and we expect they will continue to be seasonal. For example, 22% of our revenues in Fiscal Year 2020 were derived from the *Christmas Spectacular* (the last production presented prior to the impact of the COVID-19 pandemic). Our revenues are highest in the second quarter of our fiscal year when these performances primarily occur. As a result, our business earns a disproportionate amount of its revenue and operating income in the second quarter of each fiscal year. Therefore, our operating results and cash flow reflect significant variation from period to period and will continue to do so in the future. Consequently, period-to-period comparisons of our operating results may not necessarily be meaningful and the operating results of one period are not indicative of our financial performance during a full fiscal year. This variability may adversely affect our business, results of operations and financial condition.

*Labor Matters May Have a Material Negative Effect on Our Business and Results of Operations.* 

As a result of ongoing labor market disruptions due to the COVID-19 pandemic and otherwise, we have faced difficulty in maintaining staffing at our venues and retaining talent in our corporate departments. As a result, we have had to scale back hours and days of operations in certain markets and venues. If we are unable to attract and retain qualified people or to do so on reasonable terms, our venues could be short staffed or become more expensive to operate and affect our ability to meet our customers' demand, any of which could materially adversely affect our business and results of operations.

Our business is dependent upon the efforts of unionized workers. As of December 31, 2022, approximately 4,900 full-time and part-time employees, who represent approximately 70% of the Company's workforce, were subject to collective bargaining agreements ("CBAs"). Approximately 3% were subject to CBAs that expired as of December 31, 2022 and approximately 38% were subject to CBAs that will expire by June 30, 2023, if they are not extended prior thereto. Any labor disputes, such as strikes or lockouts, with the unions with which we have CBAs could have a material negative effect on our business and results of operations (including our ability to produce or present concerts, programming, theatrical productions, sporting events and other events).

Additionally, NBA and NHL players are covered by CBAs. Both leagues have experienced labor difficulties in the past and may have labor issues in the future, such as player strikes or management lockouts. If any Knicks or Rangers games are cancelled because of any such labor difficulties, the loss of revenue, including from customers who would have attended home games at The Garden would have a negative impact on our business and results of operations.

*The Unavailability of Systems Upon Which We Rely May Have a Material Negative Effect on Our Business and Results of Operations.* 

We rely upon various internal and third-party software or systems in the operation of our business, including, with respect to ticket sales, credit card processing, email marketing, point of sale transactions, database, inventory, human resource management and financial systems. From time to time, certain of these arrangements may not be covered by long-term agreements. The failure or unavailability of these internal or

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third-party services or systems, depending upon its severity and duration, could have a material negative effect on our business and results of operations.

*There Is a Risk of Injuries and Accidents in Connection with Our Venues, Which Could Subject Us to Personal Injury or Other Claims; We Are Subject to the Risk of Adverse Outcomes in Other Types of Litigation.* 

There are inherent risks associated with producing and hosting events and operating, maintaining, renovating or constructing our venues. As a result, personal injuries, accidents and other incidents have occurred and may occur from time to time, which could subject us to claims and liabilities.

These risks may not be covered by insurance or could involve exposures that exceed the limits of any applicable insurance policy. Incidents in connection with events at any of our venues could also reduce attendance at our events and may have a negative impact on our revenue and results of operations. We seek to obtain contractual indemnities for events at our venues that we do not promote, and under the Arena License Agreements, MSG Sports and the Company have reciprocal indemnity obligations to each other in connection with the home games of the Knicks and Rangers held at The Garden. While we also maintain insurance policies that provide coverage for incidents in the ordinary course of business, there can be no assurance that such indemnities or insurance will be adequate at all times and in all circumstances.

From time to time, the Company and its subsidiaries are involved in various legal proceedings, including proceedings or lawsuits brought by governmental agencies, stockholders, customers, employees, private parties and other stakeholders. The outcome of litigation is inherently unpredictable and, regardless of the merits of the claims, litigation may be expensive, time-consuming, disruptive to our operations, harmful to our reputation and distracting to management. As a result, we may incur liability from litigation (including in connection with settling such litigation) which could be material and for which we may not have available or adequate insurance coverage, or be subject to other forms of non-monetary relief which may adversely affect the Company. By its nature, the outcome of litigation is difficult to assess and quantify, and its continuing defense is costly. The liabilities and any defense costs we incur in connection with any such litigation could have an adverse effect on our business and results of operations.

**Risks Related to Indebtedness and Financial Condition** 

*We Have Substantial Indebtedness and Are Highly Leveraged, Which Could Adversely Affect Our Business.* 

The Company will be highly leveraged with a significant amount of debt and may continue to incur additional debt in the future. On June 30, 2022, MSG National Properties, LLC ("MSG National Properties") and certain other subsidiaries entered into a five-year $650 million senior secured term loan facility (the "National Properties Term Loan Facility") and a five-year $100 million revolving credit facility (the "National Properties Revolving Credit Facility" and, together with the National Properties Term Loan Facility, the "National Properties Facilities"), which are guaranteed by MSG Entertainment Group, to fund working capital needs, for general corporate purposes of MSG National Properties and its subsidiaries, and to make distributions to MSG Entertainment Group (the "National Properties Credit Agreement"). As of December 31, 2022, outstanding letters of credit were $7.9 million and the remaining balance available under the National Properties Revolving Credit Facility was $63.0 million. The National Properties Facilities will mature on June 30, 2027. The principal obligations under the National Properties Term Loan Facility are to be repaid in quarterly installments beginning with the fiscal quarter ending March 31, 2023, in an aggregate amount equal to 2.50% per annum (0.625% per quarter), stepping up to 5.0% per annum (1.25% per quarter) in the fiscal quarter ending September 30, 2025, with the balance due at the maturity of the facility. The principal obligations under the National Properties Revolving Credit Facility are due at the maturity of the facility. The National Properties Credit Agreement also includes financial covenants requiring MSG National Properties and its restricted subsidiaries to maintain a specified minimum liquidity level, a specified minimum debt service coverage ratio and specified maximum total leverage ratio. In connection with the Distribution, we expect MSG Entertainment Holdings to become the entity that guarantees the National Properties Credit Agreement on the same terms.

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As a result of this indebtedness, we will be required to make interest and principal payments on our borrowings that are significant in relation to our revenues and cash flows. These payments reduce our earnings and cash available for other potential business purposes. Furthermore, our interest expense could increase if interest rates increase (including in connection with rising inflation) because our indebtedness bears interest at floating rates or to the extent we have to refinance existing debt with higher cost debt.

In addition, the ability of MSG National Properties to draw on its revolving credit facility will depend on its ability to meet certain financial covenants and other conditions. This leverage also exposes us to significant risk by limiting our flexibility in planning for, or reacting to, changes in our business (whether through competitive pressure or otherwise), the entertainment and hospitality industries and the economy at large. Although our cash flows could decrease in these scenarios, our required payments in respect of indebtedness would not decrease.

In addition, our ability to make payments on, or repay or refinance, such debt, and to fund our operating and capital expenditures, depends largely upon our future operating performance. Our future operating performance, to a certain extent, is subject to general economic conditions, recession, fears of recession, and financial, competitive, regulatory and other factors that are beyond our control. The failure to satisfy the covenants, including any inability to attain a covenant waiver, and other requirements under the credit agreement could trigger a default thereunder, acceleration of outstanding debt thereunder and a demand for payment under the guarantee provided by MSG Entertainment Group, or, following the distribution, MSG Entertainment Holdings, as applicable, which would negatively impact our liquidity and could have a negative effect on our business.

In addition, MSG Entertainment has made investments in, or otherwise extended loans to, one or more of its joint ventures or other parties and we may make additional investments in, or otherwise extend loans to, one or more of such parties in the future. To the extent that such parties do not perform as expected, including with respect to repayment of such loans, it could impair such assets or create losses related to such loans, and, as a result, have a negative effect on our business and results of operations.

*Our Variable Rate Indebtedness Subjects Us to Interest Rate Risk, Which Could Cause Our Debt Service Obligations to Increase Significantly.* 

Borrowings under our facilities are at variable rates of interest and expose us to interest rate risk. If interest rates increase (including in connection with rising inflation), our debt service obligations on certain of our variable rate indebtedness will increase even though the amount borrowed remains the same, and our net income and cash flows, including cash available for servicing our indebtedness, will correspondingly decrease.

The United Kingdom's Financial Conduct Authority, which regulates the London Interbank Offered Rate ("LIBOR"), has announced that it will not compel banks to contribute to LIBOR after 2021. In November 2020, the ICE Benchmark Administration Limited announced a plan to extend the date as of which most U.S. LIBOR values would cease being computed from December 31, 2021 to June 30, 2023. On July 29, 2021 the Alternative Reference Rates Committee announced that it was formally recommending the forward-looking Secured Overnight Financing Rate ("SOFR") term rate. Our National Properties Facilities have been amended to adjust to SOFR-based rates. The consequences of these developments with respect to LIBOR cannot be entirely predicted but may affect the level of interest payments on the portion of our indebtedness that bears interest at variable rates, which may adversely impact the amount of our interest payments under such debt.

*We Have Incurred Substantial Operating Losses, Adjusted Operating Losses and Negative Cash Flow and There is No Assurance We Will Have Operating Income, Positive Adjusted Operating Income or Positive Cash Flow in the Future.* 

We incurred operating losses of $5.6 million and $237.3 million for Fiscal Years 2022 and 2021, respectively, and operating income of $225.3 million for Fiscal Year 2020. In addition, we have in prior periods incurred operating losses and negative cash flow and there is no assurance that we will have operating income,

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adjusted operating income, or positive cash flow in the future. Significant operating losses may limit our ability to raise necessary financing, or to do so on favorable terms, as such losses could be taken into account by potential investors, lenders and the organizations that issue investment ratings on indebtedness. See "Management's Discussion and Analysis of Financial Condition and Results of Operations — Factors Affecting Results of Operations."

*MSG Entertainment's Management Identified a Material Weakness During Fiscal Year 2022, Which Has Now Been Remediated. If We Identify Other Material Weaknesses or Adverse Findings in the Future, Our Ability to Report Our Financial Condition or Results of Operations Accurately or Timely May Be Adversely Affected, Which May Result in a Loss of Investor Confidence in Our Financial Reports, Significant Expenses to Remediate Any Internal Control Deficiencies, and Ultimately Have an Adverse Effect on the Market Price of Our Common Stock.* 

Pursuant to Section 404 of the Sarbanes-Oxley Act, our management will be required to report on, and our independent registered public accounting firm will be required to attest to, the effectiveness of our internal control over financial reporting. Currently, we are an emerging growth company, and are exempt from complying with the auditor attestation requirements of Section 404, but we will be subject to the requirements in the future. The rules governing the standards that must be met for management to assess internal control over financial reporting are complex and require significant documentation, testing and possible remediation. In addition, if we fail to maintain the adequacy of our internal control over financial reporting, we will not be able to conclude on an ongoing basis that we have effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act. If we fail to achieve and maintain an effective internal control environment, we could suffer misstatements in our financial statements and fail to meet our reporting obligations, which would likely cause investors to lose confidence in our reported financial information. This could result in significant expenses to remediate any internal control deficiencies and lead to a decline in our stock price.

Subsequent to the filing of the Fiscal Year 2021 Form 10-K, MSG Entertainment management evaluated an immaterial accounting error related to interest costs that should have been capitalized for the MSG Sphere in Las Vegas in Fiscal Years 2021, 2020 and 2019 and in the fiscal quarter ended September 30, 2021, as prescribed by Accounting Standards Codification ("ASC") Topic 835-20 — *Capitalization of Interest*. As a result of the accounting error, MSG Entertainment re-evaluated the effectiveness of its internal control over financial reporting and identified a material weakness as of June 30, 2021, September 30, 2021, December 31, 2021 and March 31, 2022. MSG Entertainment undertook certain remediation efforts by implementing additional controls which were operating effectively as of June 30, 2022, and as a result, MSG Entertainment's management has concluded that the material weakness has been remediated and its internal control over financial reporting was effective as of June 30, 2022. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of a company's annual or interim financial statements will not be prevented or detected on a timely basis.

Once we are subject to these requirements, our management may be unable to conclude in future periods that our disclosure controls and procedures are effective due to the effects of various factors, which may, in part, include unremediated material weaknesses in internal controls over financial reporting. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in those reports is accumulated and communicated to the company's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. In addition, we may not be able to identify and remediate other control deficiencies, including material weaknesses, in the future.

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**Risks Related to Cybersecurity and Intellectual Property** 

*We Face Continually Evolving Cybersecurity and Similar Risks, Which Could Result in Loss, Disclosure, Theft, Destruction or Misappropriation of, or Access to, Our Confidential Information and Cause Disruption of Our Business, Damage to Our Brands and Reputation, Legal Exposure and Financial Losses.* 

Through our operations, we may collect and store, including by electronic means, certain personal, proprietary and other sensitive information, including payment card information, that is provided to us through purchases, registration on our websites, mobile applications, or otherwise in communication or interaction with us. These activities require the use of online services and centralized data storage, including through third-party service providers. Data maintained in electronic form is subject to the risk of security incidents, including breach, compromise, intrusion, tampering, theft, destruction, misappropriation or other malicious activity. Our ability to safeguard such personal and other sensitive information, including information regarding the Company and our customers, sponsors, partners and employees, independent contractors and vendors, is important to our business. We take these matters seriously and take significant steps to protect our stored information, including the implementation of systems and processes to thwart malicious activity. These protections are costly and require ongoing monitoring and updating as technologies change and efforts to overcome security measures become more sophisticated. See *"*— Economic and Operational Risks — *We Are Subject to Extensive Governmental Regulation and Our Failure to Comply with These Regulations May Have a Material Negative Effect on Our Business and Results of Operations."*

Despite our efforts, the risks of a security incident cannot be entirely eliminated and our information technology and other systems that maintain and transmit consumer, sponsor, partner, Company, employee and other confidential and proprietary information may be compromised due to employee error or other circumstances such as malware or ransomware, viruses, hacking and phishing attacks, denial-of-service attacks, business email compromises, or otherwise. Such compromise could affect the security of information on our network or that of a third-party service provider. Additionally, outside parties may attempt to fraudulently induce employees, vendors or users to disclose sensitive, proprietary or confidential information in order to gain access to data and systems. As a result, such sensitive, proprietary and/or confidential information may be lost, disclosed, accessed or taken without consent. For example, in November 2016, a payment card issue that affected cards used at merchandise and food and beverage locations at several of our New York venues and The Chicago Theatre was identified and addressed with the assistance of security firms. The issue was promptly fixed and enhanced security measures were implemented.

The Company also continues to review and enhance our security measures in light of the constantly evolving techniques used to gain unauthorized access to networks, data, software and systems. The Company may be required to incur significant expenses in order to address any actual or potential security incidents that arise and we may not have insurance coverage for any or all of such expenses. If we experience an actual or perceived security incident, our ability to conduct business may be interrupted or impaired, we may incur damage to our systems, we may lose profitable opportunities or the value of those opportunities may be diminished and we may lose revenue as a result of unlicensed use of our intellectual property. Unauthorized access to or security breaches of our systems could result in the loss of data, loss of business, severe reputational damage adversely affecting customer or investor confidence, diversion of management's attention, regulatory investigations and orders, litigation, indemnity obligations, damages for contract breach, penalties for violation of applicable laws or regulations and significant costs for remediation that may include liability for stolen or lost assets or information and repair of system damage that may have been caused, incentives offered to customers or other business partners in an effort to maintain business relationships after a breach and other liabilities. In addition, in the event of a security incident, changes in legislation may increase the risk of potential litigation. For example, the CCPA, which provides a private right of action (in addition to statutory damages) for California residents whose sensitive personal information is breached as a result of a business' violation of its duty to reasonably secure such information, took effect on January 1, 2020 and was expanded by the CPRA, which took effect in January 2023. Our insurance coverage may not be adequate to cover the costs of a data breach, indemnification obligations or other liabilities.

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In addition, in some instances, we may have obligations to notify relevant stakeholders of security breaches. Such mandatory disclosures are costly, could lead to negative publicity, may cause our customers to lose confidence in the effectiveness of our security measures and require us to expend significant capital and other resources to respond to or alleviate problems caused by an actual or perceived security breach.

*We May Become Subject to Infringement or Other Claims Relating to Our Content or Technology.* 

From time to time, third parties may assert against us alleged intellectual property infringement claims (e.g., copyright, trademark and patent) or other claims relating to our productions, venues and brands, technologies, digital content or other content or material, some of which may be important to our business. In addition, our productions could potentially subject us to claims of defamation, violation of rights of privacy or publicity or similar types of allegations. Any such claims, regardless of their merit or outcome, could cause us to incur significant costs that could harm our results of operations. We may not be indemnified against, or have insurance coverage for, claims or costs of these types. In addition, if we are unable to continue the use of certain intellectual property rights, our business and results of operations could be materially negatively impacted.

*Theft of Our Intellectual Property May Have a Material Negative Effect on Our Business and Results of Operations.* 

The success of our business depends in part on our ability to maintain and monetize our intellectual property rights, including our brand logos, our technologies, digital content and other content that is material to our business. Theft of our intellectual property, including content, could have a material negative effect on our business and results of operations because it may reduce the revenue that we are able to receive from the legitimate exploitation of such intellectual property, undermine lawful distribution channels and limit our ability to control the marketing of our content and inhibit our ability to recoup or profit from the costs incurred to create such content. Litigation may be necessary to enforce our intellectual property rights or protect our trade secrets. Any litigation of this nature, regardless of the outcome, could cause us to incur significant costs.

**Risks Related to the Spin-off Transaction** 

*Following the Distribution, We Will Be Materially Dependent on Affiliated Entities' Performances Under Various Agreements.* 

Following the Distribution, we will enter into various agreements with MSG Entertainment and MSG Sports that will govern our ongoing commercial relationship subsequent to the Distribution, including sponsorship agency agreements in connection with the sale of sponsorships for the Knicks and Rangers, as well as MSG Sports' other teams, and a trademark license agreement regarding the use of the "MSG" name. These agreements will each be subject to potential termination in the event MSG Entertainment or MSG Sports and the Company are no longer affiliates.

The Company will provide to MSG Entertainment certain business services that were performed by MSG Entertainment prior to the Distribution, such as information technology, accounts payable, payroll, tax, certain legal functions, human resources, insurance and risk management, government affairs, investor relations, corporate communications, benefit plan administration and reporting, and internal audit functions as well as certain marketing functions. These services include the collection and storage of certain personal information regarding employees and/or customers as well as information regarding the Company, MSG Entertainment and our sponsors and partners. See also "— Risks Related to Cybersecurity and Intellectual Property — *We Face Continually Evolving Cybersecurity and Similar Risks, Which Could Result in Loss, Disclosure, Theft, Destruction or Misappropriation of, or Access to, Our Confidential Information and Cause Disruption of Our Business, Damage to Our Brands and Reputation, Legal Exposure and Financial Losses*."

The Company and its affiliated entities will each rely on the other to perform its obligations under all of these agreements. If one of the affiliated entities were to breach, be unable to satisfy its material obligations

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under these agreements, including a failure to satisfy its indemnification or other financial obligations, or these agreements otherwise terminate or expire and we do not enter into replacement agreements, we could suffer operational difficulties and/or significant losses.

*Because There Has Not Been Any Public Market for Our Common Stock, the Market Price and Trading Volume of Our Common Stock May Be Volatile and You May Not Be Able to Resell Your Shares at or Above the Initial Market Price of Our Stock Following the Distribution.* 

Prior to the Distribution, there will have been no regular way trading market for our common stock. We cannot predict the extent to which investors' interest will lead to a liquid trading market or whether the market price of our common stock will be volatile. The market price of our common stock could fluctuate significantly for many reasons, including in response to the risk factors listed in this information statement or for reasons unrelated to our specific performance, such as reports by industry analysts, investor perceptions or negative developments for our customers, competitors or suppliers, as well as general economic and industry conditions.

*The Combined Post-Distribution Value of MSG Entertainment and Spinco Shares May Not Equal or Exceed the Pre-Distribution Value of MSG Entertainment Shares.* 

After the Distribution, MSG Entertainment Class A Common Stock will continue to be listed and traded on the NYSE. We cannot assure you that the combined trading prices of MSG Entertainment Class A Common Stock and Spinco Class A Common Stock after the Distribution, as adjusted for any changes in the combined capitalization of these companies, will be equal to or greater than the trading price of MSG Entertainment Class A Common Stock prior to the Distribution. Until the market has fully evaluated the business of MSG Entertainment without the business of Spinco, the price at which MSG Entertainment Class A Common Stock trades may fluctuate significantly. Similarly, until the market has fully evaluated the business of Spinco, the price at which shares of Spinco Class A Common Stock trade may fluctuate significantly.

*A Significant Amount of Our Total Outstanding Shares May Be Sold Freely into the Market. This Could Cause the Market Price of Our Common Shares to Drop Significantly, Even if Our Business is Doing Well.* 

MSG Entertainment is required by applicable tax rules to dispose of all retained shares as soon as practicable consistent with the business purposes for the retention, and expects to dispose of such retained shares within one year, subject to market conditions. Sales of the approximately 33% of our common shares to be retained by MSG Entertainment in the public market, or the perception that these sales might occur, could depress the market price of our common shares and could impair our ability to raise capital through the sale of additional equity securities. Immediately following the Distribution, this significant amount of our common shares will be freely tradable, without restrictions or further registration under the Securities Act, subject to certain restrictions applicable to shares held by our affiliates as defined in Rule 144.

*The Distribution is Subject to Various Risks and Uncertainties and May Not Be Completed in Accordance With the Expected Plans or Anticipated Timeline, or At All, and Will Involve Significant Time and Expense, Which Could Disrupt or Adversely Affect Our Business.* 

In August 2022, MSG Entertainment announced its plan to separate the Company into an independent, publicly-traded company by way of a tax free spin-off. The Distribution is subject to the satisfaction of certain conditions, including final approval by MSG Entertainment's Board of Directors of the final terms of the Distribution and certain other conditions. Furthermore, the Distribution is complex in nature, and unanticipated developments or changes, including changes in the law, the macroeconomic environment, competitive conditions of MSG Entertainment's markets, regulatory approvals or clearances, the uncertainty of the financial markets and challenges in executing the Distribution, could delay or prevent the completion of the proposed Distribution, or cause the Distribution to occur on terms or conditions that are different or less favorable than expected.

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Until the Distribution occurs, MSG Entertainment will have the discretion to determine and change the terms of the Distribution. For example, in December 2022, MSG Entertainment announced its plan to revise the structure of the proposed transaction and no longer include the MSG Networks business in the Company.

In addition, MSG Entertainment may decide at any time not to proceed with the Distribution. The process of completing the proposed Distribution has been and is expected to continue to require management's attention and involves significant costs and expenses. The Distribution costs may be significantly higher than what we currently anticipate and may not yield a discernible benefit if the Distribution is not completed, or if the expected benefits of the Distribution are not realized. We cannot predict the extent to which MSG Entertainment's investors' interest in the Distribution and the Company will impact the market price of its stock if the Distribution is not completed.

*The Distribution Could Result in Significant Tax Liability.* 

MSG Entertainment expects to obtain an opinion from Sullivan & Cromwell LLP substantially to the effect that, among other things, the distribution by MSG Entertainment of our Class A Common Stock and Class B Common Stock to the holders of MSG Entertainment Class A Common Stock and MSG Entertainment Class B Common Stock, respectively (i.e., the Distribution), should qualify as a tax-free distribution under the Code. Accordingly, for U.S. federal income tax purposes, the Distribution is not expected to result in the recognition of gain to MSG Entertainment with respect to the distribution of our Class A Common Stock or our Class B Common Stock to the MSG Entertainment stockholders and, except to the extent a stockholder receives cash in lieu of fractional shares of our common stock, no income, gain or loss will be recognized by, and no amount will be included in the income of such holder upon the receipt of shares of our common stock pursuant to the Distribution. The opinion will not be binding on the IRS or the courts. See "The Distribution — Material U.S. Federal Income Tax Consequences of the Distribution." Certain transactions related to the Distribution that are not addressed (or expected to be addressed) by the opinion could result in the recognition of income or gain by MSG Entertainment. The opinion will rely on factual representations and reasonable assumptions, which, if incorrect or inaccurate, may jeopardize the ability to rely on such opinion. MSG Entertainment does not intend to request any ruling from the IRS as to the U.S. federal income tax consequences of the Distribution.

If the Distribution does not qualify for tax-free treatment for U.S. federal income tax purposes, then, in general, MSG Entertainment would recognize taxable gain in an amount equal to the excess of the fair market value of our common stock distributed in the Distribution over MSG Entertainment's tax basis therein (i.e., as if it had sold such common stock in a taxable sale for its fair market value). In addition, the receipt by MSG Entertainment stockholders of common stock of our Company would be a taxable distribution, and each U.S. holder that receives our common stock in the Distribution would be treated as if the U.S. holder had received a distribution equal to the fair market value of our common stock that was distributed to it, which generally would be treated first as a taxable dividend to the extent of such holder's pro rata share of MSG Entertainment's earnings and profits, then as a non-taxable return of capital to the extent of the holder's tax basis in its MSG Entertainment common stock, and thereafter as capital gain with respect to any remaining value. It is expected that the amount of any such taxes to MSG Entertainment stockholders and MSG Entertainment would be substantial. See "The Distribution — Material U.S. Federal Income Tax Consequences of the Distribution."

*We May Have a Significant Indemnity Obligation to MSG Entertainment if the Distribution Is Treated as a Taxable Transaction.* 

We will enter into a Tax Disaffiliation Agreement with MSG Entertainment, which will set out each party's rights and obligations with respect to federal, state, local or foreign taxes for periods before and after the Distribution and related matters such as the filing of tax returns and the conduct of IRS and other audits. Pursuant to the Tax Disaffiliation Agreement, we will be required to indemnify MSG Entertainment for losses and taxes of MSG Entertainment resulting from the breach of certain covenants and for certain taxable gain recognized by MSG Entertainment, including as a result of certain acquisitions of our stock or assets. If we are required to indemnify MSG Entertainment under the circumstances set forth in the Tax Disaffiliation Agreement, we may be subject to substantial liabilities, which could materially adversely affect our financial position.

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*The Tax Rules Applicable to the Distribution May Restrict Us from Engaging in Certain Corporate Transactions or from Raising Equity Capital Beyond Certain Thresholds for a Period of Time After the Distribution.* 

To preserve the tax-free treatment of the Distribution to MSG Entertainment and its stockholders, under the Tax Disaffiliation Agreement with MSG Entertainment, for the two-year period following the Distribution, we will be subject to restrictions with respect to:

• entering into any transaction pursuant to which 50% or more of our shares or assets would be acquired, whether by
merger or otherwise, unless certain tests are met;

• issuing equity securities, if any such issuances would, in the aggregate, constitute 50% or more of the voting
power or value of our capital stock;

• certain repurchases of our common shares;

• ceasing to actively conduct our business;

• amendments to our organizational documents (i) affecting the relative voting rights of our stock or
(ii) converting one class of our stock to another;

• liquidating or partially liquidating; and

• taking any other action that prevents the Distribution and certain related transactions from being tax-free.

These restrictions may limit our ability during such period to pursue strategic transactions of a certain magnitude that involve the issuance or acquisition of our stock or engage in new businesses or other transactions that might increase the value of our business. These restrictions may also limit our ability to raise significant amounts of cash through the issuance of stock, especially if our stock price were to suffer substantial declines, or through the sale of certain of our assets. For more information, see the sections entitled "The Distribution — Material U.S. Federal Income Tax Consequences of the Distribution" and "Certain Relationships and Related Party Transactions — Relationship Between MSG Entertainment and Us After the Distribution — Tax Disaffiliation Agreement."

*Certain Adverse U.S. Federal Income Tax Consequences Might Apply to Non-U.S. Holders That Hold Our Class A Common Stock and Class B Common Stock After the Distribution If We Are Treated as a USRPHC.* 

The Company has not made a determination as to whether we will be deemed to be a USRPHC, as defined in section 897(c)(2) of the Code. In general, we will be a USRPHC if 50% or more of the fair market value of our assets constitute "United States real property interests" within the meaning of the Code. However, the determination of whether we are a USRPHC turns on the relative fair market value of our United States real property interests and our other assets, and because the USRPHC rules are complex and the determination of whether we are a USRPHC depends on facts and circumstances that may be beyond our control, we can give no assurance as to our USRPHC status after the Distribution. If we are treated as a USRPHC, certain adverse U.S. federal income tax consequences might apply to non-U.S. holders that hold our Class A Common Stock and Class B Common Stock after the Distribution. A beneficial owner of MSG Entertainment common stock that is a non-U.S. holder should consult its tax advisor as to the particular tax consequences that would be applicable to such holder if we are treated as a USRPHC after the Distribution. For more information, see the section entitled "The Distribution — Material U.S. Federal Income Tax Consequences of the Distribution."

*We Do Not Have an Operating History as a Stand-Alone Public Company.* 

In the past, our operations have been a part of MSG Entertainment and MSG Entertainment provided us with various financial, operational and managerial resources for conducting our business. Following the Distribution, we will maintain our own credit and banking relationships and perform certain of our own financial and operational functions. We cannot assure you that we will be able to successfully put in place the financial, operational and managerial resources necessary to operate as a public company or that we will be able to be profitable doing so.

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*Our Historical Financial Results and Our Unaudited Pro Forma Condensed Combined Financial Statements May Not Be Representative of Our Results as a Separate, Stand-Alone Company.* 

The historical financial information we have included in this information statement has been derived from the consolidated financial statements and accounting records of MSG Entertainment and does not necessarily reflect what our financial position, results of operations or cash flows would have been had we been a separate, stand-alone company during the periods presented. Although MSG Entertainment did account for the Entertainment business (with the addition of MSG Sphere) as a separate business segment, we were not operated as a separate, stand-alone company for the historical periods presented. The historical costs and expenses reflected in our combined financial statements include an allocation for certain corporate functions historically provided by MSG Entertainment, including general corporate expenses and employee benefits and incentives. These allocations were based on what we and MSG Entertainment considered to be reasonable reflections of the historical utilization levels of these services required in support of our business. The historical information does not necessarily indicate what our results of operations, financial position, cash flows or costs and expenses will be in the future. Our pro forma financial information set forth under "Unaudited Pro Forma Condensed Combined Financial Information" reflects changes to our operations as a result of the separation. However, there can be no assurances that this unaudited pro forma combined financial information will appropriately reflect our financial position or results of operations as a separate, stand-alone company.

*We May Incur Material Costs and Expenses as a Result of Our Separation from MSG Entertainment.* 

We may incur costs and expenses greater than those we currently incur as a result of our separation from MSG Entertainment. These increased costs and expenses may arise from various factors, including financial reporting and costs associated with complying with federal securities laws (including compliance with the Sarbanes-Oxley Act). In addition, we expect to either maintain similar or have increased corporate and administrative costs and expenses to those we incurred while part of MSG Entertainment, even though following the Distribution we will be a smaller, stand-alone company. We cannot assure you that these costs will not be material to our business.

*If, Following the Distribution, We Are Unable to Satisfy the Requirements of Section 404 of the Sarbanes-Oxley Act, or Our Internal Control Over Financial Reporting is Not Effective, the Reliability of Our Financial Statements May Be Questioned and Our Stock Price May Suffer.* 

Section 404 of the Sarbanes-Oxley Act requires any company subject to the reporting requirements of the U.S. securities laws to do a comprehensive evaluation of its and its consolidated subsidiaries' internal control over financial reporting. To comply with this statute, we will eventually be required to document and test our internal control procedures, our management will be required to assess and issue a report concerning our internal control over financial reporting, and our independent auditors will be required to issue an opinion on the Company's internal controls over financial reporting. The rules governing the standards that must be met for management to assess our internal control over financial reporting are complex and require significant documentation, testing and possible remediation to meet the detailed standards under the rules. During the course of its testing, our management may identify material weaknesses or deficiencies which may not be remedied in time to meet the deadline imposed by the Sarbanes-Oxley Act. If our management cannot favorably assess the effectiveness of our internal control over financial reporting or our auditors identify material weaknesses in our internal controls, investor confidence in our financial results may weaken, and our stock price may suffer.

*The Reduced Disclosure Requirements Applicable to Us as an "Emerging Growth Company" May Make Our Class A Common Stock Less Attractive to Investors.* 

We are an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"), and we may avail ourselves of certain exemptions from various reporting requirements of public companies that are not "emerging growth companies," including, but not limited to, an exemption from complying with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, and, like smaller

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reporting companies, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirement of holding a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. We may remain an emerging growth company for up to five full fiscal years following the Distribution. We would cease to be an emerging growth company, and, therefore, become ineligible to rely on the above exemptions, if we: (a) have more than $1.235 billion in annual revenue in a fiscal year; (b) issue more than $1 billion of non-convertible debt over a three-year period; or (c) become a "large accelerated filer" as defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the "Exchange Act") which would generally occur after: (i) we have filed at least one annual report; (ii) we have been a Securities and Exchange Commission ("SEC") reporting company for at least 12 months; and (iii) the market value of our common stock that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter. We cannot predict if investors will find our common stock less attractive because we may rely on these exemptions.

If some investors find our common stock less attractive as a result of the exemptions available to us as an emerging growth company, there may be a less active trading market for our common stock and our value may be more volatile than that of an otherwise comparable company that does not avail itself of the same or similar exemptions.

*We Are Controlled by the Dolan Family. As a Result of Their Control, the Dolan Family Has the Ability to Prevent or Cause a Change in Control or Approve, Prevent or Influence Certain Actions by the Company.* 

We have two classes of common stock:

• Class A Common Stock, par value $0.01 per share, which is entitled to one vote per share and is entitled
collectively to elect 25% of our Board of Directors; and

• Class B Common Stock, par value $0.01 per share, which is entitled to 10 votes per share and is entitled
collectively to elect the remaining 75% of our Board of Directors.

As of the Distribution date, the Dolan Family Group will collectively own all of our Class B Common Stock, approximately [●]% of our outstanding Class A Common Stock and approximately [●]% of the total voting power of all our outstanding common stock. The members of the Dolan Family Group holding Class B Common Stock will execute a Stockholders Agreement prior to the Distribution that will have the effect of causing the voting power of the holders of our Class B Common Stock to be cast as a block with respect to all matters to be voted on by holders of Class B Common Stock. Under the Stockholders Agreement, the shares of Class B Common Stock owned by members of the Dolan Family Group (representing all of the outstanding Class B Common Stock) are to be voted on all matters in accordance with the determination of the Dolan Family Committee (as defined below), except that the decisions of the Dolan Family Committee are non-binding with respect to the Class B Common Stock owned by certain Dolan family trusts that collectively own [●]% of the outstanding Class B Common Stock ("Excluded Trusts"). The "Dolan Family Committee" will consist of Charles F. Dolan and his six children, James L. Dolan, Thomas C. Dolan, Patrick F. Dolan, Kathleen M. Dolan, Marianne Dolan Weber and Deborah A. Dolan-Sweeney. The Dolan Family Committee generally acts by majority vote, except that approval of a going-private transaction must be approved by a two-thirds vote and approval of a change-in-control transaction must be approved by not less than all but one vote. The voting members of the Dolan Family Committee will be James L. Dolan, Thomas C. Dolan, Kathleen M. Dolan, Deborah A. Dolan-Sweeney and Marianne Dolan Weber, with each member having one vote other than James L. Dolan, who has two votes. Because James L. Dolan has two votes, he will have the ability to block Dolan Family Committee approval of any Company change in control transaction. Shares of Class B Common Stock owned by Excluded Trusts will on all matters be voted on in accordance with the determination of the Excluded Trusts holding a majority of the Class B Common Stock held by all Excluded Trusts, except in the case of a vote on a going-private transaction or a change in control transaction, in which case a vote of trusts holding two-thirds of the Class B Common Stock owned by Excluded Trusts will be required.

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The Dolan Family Group is able to prevent a change in control of our Company and no person interested in acquiring us will be able to do so without obtaining the consent of the Dolan Family Group. The Dolan Family Group, by virtue of its stock ownership, has the power to elect all of our directors subject to election by holders of Class B Common Stock, and is able collectively to control stockholder decisions on matters on which holders of all classes of our common stock vote together as a single class. These matters could include the amendment of some provisions of our certificate of incorporation and the approval of fundamental corporate transactions.

In addition, the affirmative vote or consent of the holders of at least 66 <sup>2</sup>/<sub>3</sub>% of the outstanding shares of the Class B Common Stock, voting separately as a class, is required to approve:

• the authorization or issuance of any additional shares of Class B Common Stock, and

• any amendment, alteration or repeal of any of the provisions of our certificate of incorporation that adversely
affects the powers, preferences or rights of the Class B Common Stock.

As a result, the Dolan Family Group has the power to prevent such issuance or amendment.

The members of the Dolan Family Group will enter into an agreement with the Company in which they agree that, during the 12-month period beginning on the Distribution date, the Dolan Family Group must obtain the prior approval of a majority of the Company's Independent Directors prior to acquiring common stock of the Company through a tender offer that results in members of the Dolan Family Group owning more than 50% of the total number of outstanding shares of common stock of the Company. For purposes of this agreement, the term "Independent Directors" means the directors of the Company who have been determined by our Board of Directors to be independent directors for purposes of NYSE corporate governance standards.

Following the Distribution, the Company and MSG Entertainment will still be controlled by the Dolan Family Group. The Dolan Family Group also controls MSG Sports and AMC Networks.

*We Have Elected to Be a "Controlled Company" for NYSE Purposes Which Allows Us Not to Comply with Certain of the Corporate Governance Rules of the NYSE.* 

We have been informed that, prior to the Distribution, the members of the Dolan Family Group will enter into a Stockholders Agreement relating, among other things, to the voting of their shares of our Class B Common Stock. As a result, following the Distribution, we will be a "controlled company" under the corporate governance rules of the NYSE. As a controlled company, we will have the right to elect not to comply with the corporate governance rules of the NYSE requiring: (i) a majority of independent directors on our Board of Directors; (ii) an independent corporate governance and nominating committee; and (iii) an independent compensation committee. Our Board of Directors has elected for the Company to be treated as a "controlled company" under NYSE corporate governance rules and not to comply with the NYSE requirement for a majority-independent board of directors and for an independent corporate governance and nominating committee because of our status as a controlled company. Nevertheless, we expect our Board of Directors to elect to comply with the NYSE requirement for an independent compensation committee.

*Future Stock Sales, Including as a Result of the Exercise of Registration Rights by Certain of Our Stockholders, Could Adversely Affect the Trading Price of Our Class A Common Stock.* 

All of the shares of Class A Common Stock will be freely tradable without restriction or further registration under the Securities Act unless the shares are owned by our "affiliates" as that term is defined in the rules under the Securities Act. Shares held by "affiliates" may be sold in the public market only if registered or if they qualify for an exemption from registration under Rule 144 which is summarized under "Shares Eligible for Future Sale." Further, we plan to file a registration statement to cover the shares issued under our equity-based benefit plans.

As described under "Shares Eligible for Future Sale — Registration Rights Agreements," certain parties have registration rights covering a portion of our shares.

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We expect to enter into registration rights agreements with Charles F. Dolan, members of his family, certain Dolan family interests and the Dolan Family Foundation that provide them with "demand" and "piggyback" registration rights with respect to approximately [●] million shares of Class A Common Stock, including shares issuable upon conversion of shares of Class B Common Stock.

Sales of a substantial number of shares of Class A Common Stock, including sales pursuant to these registration rights agreements, could adversely affect the market price of the Class A Common Stock and could impair our future ability to raise capital through an offering of our equity securities.

*We Will Share Certain Directors and Officers with MSG Entertainment, MSG Sports and/or AMC Networks, Which Means Those Officers Will Not Devote Their Full Time and Attention to Our Affairs and the Overlap May Give Rise to Conflicts.* 

James L. Dolan will serve as the Executive Chairman and Chief Executive Officer of both the Company and MSG Entertainment and as the Executive Chairman of MSG Sports. James L. Dolan also currently serves as Interim Executive Chairman of AMC Networks. In addition, Gregg G. Seibert will serve as a Vice Chairman of the Company, MSG Sports, MSG Entertainment and AMC Networks and Charles F. Dolan will serve as Chairman Emeritus of AMC Networks concurrently with his service on our Board. Furthermore, immediately following the Distribution, nine of the members of the Board of Directors of the Company will also serve as directors of MSG Entertainment, nine will serve as directors of MSG Sports and five will serve as directors of AMC Networks, including our Executive Chairman and Chief Executive Officer, who is expected to serve as Non-Executive Chairman of AMC Networks when he completes his service as Interim Executive Chairman of AMC Networks. There will be no overlap of Class A Directors as between MSG Entertainment and the Company. The Overlap Persons may have actual or apparent conflicts of interest with respect to matters involving or affecting each company. For example, there will be the potential for a conflict of interest when we on the one hand, and MSG Entertainment, MSG Sports, and/or AMC Networks and their respective subsidiaries and successors on the other hand, look at certain acquisitions and other corporate opportunities that may be suitable for more than one of the companies. Also, conflicts may arise if there are issues or disputes under the commercial arrangements that will exist between an Other Entity and us. In addition, after the Distribution, certain of our directors and officers will continue to own stock and/or stock options or other equity awards of an Other Entity. These ownership interests could create actual, apparent or potential conflicts of interest when these individuals are faced with decisions that could have different implications for our Company and an Other Entity. See "Certain Relationships and Related Party Transactions — Certain Relationships and Potential Conflicts of Interest" for a discussion of certain procedures we will institute to help ameliorate such potential conflicts that may arise.

*Our Overlapping Directors and Officers with MSG Entertainment, MSG Sports and/or AMC Networks May Result in the Diversion of Corporate Opportunities to MSG Entertainment, MSG Sports and/or AMC Networks and Other Conflicts and Provisions in Our Amended and Restated Certificate of Incorporation May Provide Us No Remedy in That Circumstance.* 

The Company's amended and restated certificate of incorporation will acknowledge that directors and officers of the Company may also be serving as directors, officers, employees or agents of an Other Entity, and that the Company may engage in material business transactions with such Other Entities. The Company will renounce its rights to certain business opportunities and the Company's amended and restated certificate of incorporation will provide that no Overlap Person will be liable to the Company or its stockholders for breach of any fiduciary duty that would otherwise occur by reason of the fact that any such individual directs a corporate opportunity (other than certain limited types of opportunities set forth in our amended and restated certificate of incorporation) to one or more of the Other Entities instead of the Company, or does not refer or communicate information regarding such corporate opportunities to the Company. These provisions in our amended and restated certificate of incorporation will also expressly validate certain contracts, agreements, arrangements and transactions (and amendments, modifications or terminations thereof) between the Company and the Other Entities and, to the fullest extent permitted by law, provide that the actions of the Overlap Person in connection therewith are not breaches of fiduciary duties owed to the Company, any of its subsidiaries or their respective stockholders. See "Description of Capital Stock — Certain Corporate Opportunities and Conflicts."

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**THE DISTRIBUTION** 

**General** 

MSG Entertainment will distribute approximately 67% of our outstanding stock to the holders of MSG Entertainment's Class A Common Stock and Class B Common Stock and will retain approximately 33% of our outstanding common stock in the form of Class A Common Stock. MSG Entertainment will not own any of our Class B Common Stock following the Distribution. We refer to this distribution of securities as the "Distribution," the Class A Common Stock distributed as the "Distributed Class A Common Stock," the Class B Common Stock distributed as the "Distributed Class B Common Stock" (and, together with the Distributed Class A Common Stock, the "Distributed Common Stock") and the shares retained by MSG Entertainment as the "Retained Common Stock." The Distributed Common Stock will include approximately 62% of the outstanding shares of Class A Common Stock (the holders of which will have the right to collectively elect 25% of our Board of Directors, rounded up to the nearest whole number of directors) and 100% of the outstanding shares of Class B Common Stock (the holders of which will have the right to collectively elect the remaining 75% of our Board of Directors). As a result, the Distributed Common Stock will represent at least 90% of the combined voting power of the outstanding common stock with respect to the election of directors.

In the Distribution, each holder of MSG Entertainment common stock will receive a distribution of one share of our common stock for every one share of MSG Entertainment common stock held as of the close of business, New York City time, on [●], 2023, which will be the record date. Immediately following the Distribution, MSG Entertainment will own approximately 38% of our Class A Common Stock (representing approximately 33% of our common stock), the Class A Common Stockholders of MSG Entertainment will own approximately 62% of our Class A Common Stock (representing approximately 53% of our common stock), and the Class B Common Stockholders of MSG Entertainment will own 100% of our Class B Common Stock (representing approximately 13% of our common stock).

**Manner of Effecting the Distribution** 

The general terms and conditions relating to the Distribution are set forth in the Distribution Agreement between us and MSG Entertainment. Under the Distribution Agreement, the Distribution will be effective at 11:59 p.m., New York City time, on [●], 2023. For most MSG Entertainment stockholders who own MSG Entertainment common stock in registered form on the record date, our transfer and distribution agent will credit their shares of our common stock to book entry accounts established to hold these shares. Our transfer and distribution agent will send these stockholders a statement reflecting their ownership of our common stock. Book entry refers to a method of recording stock ownership in our records in which no physical certificates are used. For stockholders who own MSG Entertainment common stock through a broker or other nominee, their shares of our common stock will be credited to these stockholders' accounts by the broker or other nominee. As further discussed below, fractional shares will not be distributed. Following the Distribution, stockholders whose shares are held in book entry form may request that their shares of our common stock be transferred to a brokerage or other account at any time, as well as delivery of physical stock certificates for their shares, in each case without charge.

MSG ENTERTAINMENT STOCKHOLDERS WILL NOT BE REQUIRED TO PAY FOR SHARES OF OUR COMMON STOCK RECEIVED IN THE DISTRIBUTION, OR TO SURRENDER OR EXCHANGE SHARES OF MSG ENTERTAINMENT COMMON STOCK IN ORDER TO RECEIVE OUR COMMON STOCK, OR TO TAKE ANY OTHER ACTION IN CONNECTION WITH THE DISTRIBUTION. NO VOTE OF MSG ENTERTAINMENT STOCKHOLDERS IS REQUIRED OR SOUGHT IN CONNECTION WITH THE DISTRIBUTION, AND MSG ENTERTAINMENT STOCKHOLDERS HAVE NO APPRAISAL RIGHTS IN CONNECTION WITH THE DISTRIBUTION.

Fractional shares of our common stock will not be issued to MSG Entertainment stockholders as part of the Distribution or credited to book entry accounts. In lieu of receiving fractional shares, each holder of MSG Entertainment common stock who would otherwise be entitled to receive a fractional share of our common stock

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will receive cash for the fractional interest, which generally will be taxable to such holder. An explanation of the tax consequences of the Distribution can be found below in the subsection captioned "— Material U.S. Federal Income Tax Consequences of the Distribution." The transfer and distribution agent will, as soon as practicable after the Distribution date, aggregate fractional shares of our Class A Common Stock into whole shares and sell them in the open market at the prevailing market prices and distribute the aggregate proceeds, net of brokerage fees, ratably to stockholders otherwise entitled to fractional interests in our Class A Common Stock. Similarly, fractional shares of our Class B Common Stock will be aggregated, converted to Class A Common Stock, and sold in the public market by the transfer and distribution agent. The amount of such payments will depend on the prices at which the aggregated fractional shares are sold by the transfer and distribution agent in the open market shortly after the Distribution date.

See "Executive Compensation — Treatment of Outstanding Awards," for a discussion of how outstanding MSG Entertainment options, restricted stock units and performance stock units will be affected by the Distribution.

In order to be entitled to receive shares of our common stock in the Distribution, MSG Entertainment stockholders must be stockholders of record of MSG Entertainment common stock at the close of business, New York City time, on the record date, [●], 2023.

**Reasons for the Distribution** 

MSG Entertainment's board of directors has determined that separation of our business from MSG Entertainment's other business is in the best interests of MSG Entertainment and its stockholders. The potential benefits considered by MSG Entertainment's board of directors in making the determination to consummate the Distribution included the following:

• to provide each of MSG Entertainment and the Company with increased flexibility to fully pursue and fund its
business plan, including capital expenditures, investments and acquisitions that would be more difficult to consider or effectuate in the absence of the Distribution. This increased financial flexibility reflects the belief that investors in a
company with the mix of assets that each of MSG Entertainment and the Company will own following the Distribution will be more receptive to strategic initiatives that MSG Entertainment and the Company may respectively pursue;

• to increase the aggregate value of the stock of MSG Entertainment and the Company above the value that the stock
of MSG Entertainment would have had if it had continued to represent an interest in both the businesses of MSG Entertainment and the Company, so as to: (i) allow each company to use its stock to pursue and achieve strategic objectives,
including evaluating and effectuating acquisitions and increasing the long-term attractiveness of equity compensation programs in a significantly more efficient and effective manner with significantly less dilution to existing stockholders; and
(ii) allow each company to offer a more focused investment profile to investors; and

• to provide MSG Entertainment, through the retained equity interest, with the opportunity to raise cash proceeds
for corporate purposes, including capital expenditures, and/or to use such shares for other transactions that would be advantageous for MSG Entertainment and its stockholders. These capital expenditures will include funds utilized to pursue growth
opportunities associated with MSG Entertainment's Sphere initiative. In addition, upon the Distribution, MSG Entertainment will pledge the entire retained equity interest to secure the $275 million senior secured term loan facility of MSG Las
Vegas, LLC, an indirect wholly-owned subsidiary of MSG Entertainment, which was entered into on December 22, 2022. This pledge will be released once the Las Vegas Sphere has been substantially completed and certain of its systems are ready to be
used in live, immersive events. The Company will have no interest, contractual or otherwise, in the Sphere venues.

MSG Entertainment's board of directors also considered several factors that might have a negative effect on MSG Entertainment as a result of the Distribution. MSG Entertainment's common stock may come under initial selling pressure as certain MSG Entertainment stockholders sell their shares because they are not interested in

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holding an investment in MSG Entertainment's remaining business. Moreover, certain factors, such as a lack of comparable public companies, may limit investors' ability to appropriately value MSG Entertainment's common stock. In addition, the Distribution would separate from MSG Entertainment the business and assets of the Company, which represent significant value. Because the Company will no longer be part of MSG Entertainment, the Distribution will also affect the terms upon which MSG Entertainment can pursue cross-company business transactions and initiatives with the Company. In addition, after the Distribution, MSG Entertainment's results will not reflect the generally more predictable cash flow from the Entertainment business segment, which may result in more volatile and less predictable operating results and cash flow for MSG Entertainment. Finally, following the Distribution, MSG Entertainment and its remaining business will need to absorb certain corporate and administrative costs previously allocated to its Entertainment business segment.

MSG Entertainment's board of directors considered certain aspects of the Distribution that may be adverse to the Company. The Company's common stock may come under initial selling pressure as certain MSG Entertainment stockholders sell their shares in the Company because they are not interested in holding an investment in the Company's business. Moreover, certain factors, such as a lack of comparable public companies, may limit investors' ability to appropriately value the Company's common stock. Because the Company will no longer be part of MSG Entertainment, the Distribution will also affect the terms upon which the Company can pursue cross-company business transactions and initiatives with MSG Entertainment's other business. In addition, after the Distribution, the Company's results will not reflect cash flow from the MSG Networks and Tao Group Hospitality business segments. As a result of the Distribution, the Company will bear significant incremental costs associated with being a publicly held company and will need to absorb certain corporate and operational support costs previously allocated to MSG Entertainment. This cost increase will be partially offset by payments that the Company will receive from MSG Entertainment resulting from the establishment of the Transition Services Agreement, which will be recorded as a reduction of operating expenses. Refer to the "Unaudited Pro Forma Condensed Combined Financial Information" section for further details.

**Results of the Distribution** 

After the Distribution, we will be a public company owning and operating the Entertainment business segment, excluding the MSG Sphere business, currently owned and operated by MSG Entertainment. Immediately after the Distribution, we expect to have approximately [●] holders of record of our Class A Common Stock and [●] holders of record of our Class B Common Stock and approximately [●] shares of Class A Common Stock and [●] shares of Class B Common Stock outstanding, based on the number of stockholders of record and outstanding shares of MSG Entertainment common stock on [●], 2023 and after giving effect to the delivery to stockholders of cash in lieu of fractional shares of our common stock. The actual number of shares to be distributed will be determined on the record date. You can find information regarding options, restricted stock units and performance stock units that will be outstanding after the Distribution in the section captioned, "Executive Compensation — Treatment of Outstanding Awards." We and MSG Entertainment will both be controlled by the Dolan Family Group.

In connection with the Distribution, we have entered or will enter into a number of other agreements with MSG Entertainment and MSG Sports (and certain of their subsidiaries) to provide for an orderly transition and to govern the ongoing relationships between the Company, MSG Entertainment and MSG Sports after the Distribution. These agreements are summarized below, and described in more detail in the "Certain Relationships and Related Party Transactions" section below.

*Agreements between MSG Entertainment and the Company* ****

• *Distribution Agreement*. We will enter into a Distribution Agreement with MSG Entertainment as part of a
series of transactions pursuant to which we have acquired or will acquire prior to the Distribution the subsidiaries, businesses and other assets of MSG Entertainment that constitute our business.

• *Transition Services Agreement*. We will enter into a Transition Services Agreement with MSG Entertainment
under which, in exchange for the fees specified in such agreement, the Company will agree to

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provide certain corporate and other services to MSG Entertainment, including with respect to such areas as information technology, accounts payable, payroll, tax, certain legal functions, human resources, insurance and risk management, government affairs, investor relations, corporate communications, benefit plan administration and reporting, and internal audit functions as well as certain marketing functions. MSG Entertainment similarly will agree to provide certain transition services to the Company. <br>

• *Tax Disaffiliation Agreement*. We will enter into a Tax Disaffiliation Agreement with MSG Entertainment
that will govern MSG Entertainment's and our respective rights, responsibilities and obligations with respect to taxes and tax benefits, the filing of tax returns, the control of audits and other tax matters.

• *Employee Matters Agreement*. We will enter into an employee matters agreement with MSG Entertainment that
allocates assets, liabilities and responsibilities with respect to certain employee compensation and benefit plans and programs and certain other related matters upon completion of the Distribution.

• *Stockholder and Registration Rights Agreement*. The Company will enter into stockholder and registration
rights agreements with MSG Entertainment.

• *Two Pennsylvania Plaza*. Following the Distribution, the Company will sublease approximately 20,000 square
feet of office space at Two Pennsylvania Plaza in New York City to MSG Entertainment.

• *Aircraft Arrangements*. We will enter into various arrangements with MSG Entertainment, pursuant to which
MSG Entertainment will have the right to lease on a "time-sharing" basis certain aircraft to which we have access.

*Agreements with MSG Sports and/or AMC Networks* ****

• *Arena License Agreements*. In connection with the Distribution, MSG Entertainment will assign its Arena
License Agreements with subsidiaries of MSG Sports that require the Knicks and Rangers to play their home games at The Garden to the Company.

• *Sponsorship Sales and Service Representative Agreements*. In connection with the Distribution, MSG
Entertainment expects to assign its sponsorship sales and service representation agreements with the Knicks and the Rangers, under which MSG Entertainment is the exclusive sales and service representative for all sponsorship benefits available for
sale in connection with the Knicks and Rangers, as well as the Knicks' development team, the Westchester Knicks, and Knicks Gaming, the official NBA 2K esports franchise of the Knicks, subject to certain exceptions.

• *Team Sponsorship Allocation Agreement*. In connection with the Distribution, MSG Entertainment will assign
its team sponsorship allocation agreement with MSG Sports that memorializes certain agreements to distribute payments received under third-party sponsorship agreements that include the assets of both companies, with either MSG Entertainment or MSG
Sports serving as the contracting party, and payments being allocated generally in accordance with the relative value of the assets provided by each company.

• *Group Ticket Sales and Service Representation Agreement*. In connection with the Distribution, MSG
Entertainment will assign its group ticket sales and service representation agreement with MSG Sports, pursuant to which MSG Sports is MSG Entertainment's sales and service representative to sell group tickets and ticket packages.

• *Two Pennsylvania Plaza Sublease.* In connection with the Distribution, the Company will sublease
approximately 47,000 square feet of office space at Two Pennsylvania Plaza in New York City to MSG Sports.

The Distribution will not affect the number of outstanding shares of MSG Entertainment common stock or any rights of MSG Entertainment stockholders.

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**Material U.S. Federal Income Tax Consequences of the Distribution** 

The following is a summary of the material U.S. federal income tax consequences of the Distribution to us, MSG Entertainment and MSG Entertainment stockholders. This summary is based on the Code, the regulations promulgated under the Code by the Department of the Treasury, and interpretations of such authorities by the courts and the IRS, all as of the date of this information statement and all of which are subject to change at any time, possibly with retroactive effect. This summary is limited to holders of MSG Entertainment common stock that are U.S. holders, as defined below, that hold their shares of MSG Entertainment common stock as capital assets, within the meaning of Section 1221 of the Code. Further, this summary does not discuss all tax considerations that may be relevant to holders of MSG Entertainment common stock in light of their particular circumstances, nor does it address the consequences to holders of MSG Entertainment common stock subject to special treatment under the U.S. federal income tax laws, such as tax-exempt entities, partnerships (including arrangements treated as partnerships for U.S. federal income tax purposes), persons who acquired such shares of MSG Entertainment common stock pursuant to the exercise of employee stock options or otherwise as compensation, financial institutions, insurance companies, dealers in securities or currencies, traders in securities that elect to use a mark-to-market method of accounting for their securities holdings, persons liable for the alternative minimum tax, persons who hold their shares of MSG Entertainment common stock as part of a straddle, hedge, conversion, constructive sale, synthetic security, integrated investment or other risk-reduction transaction for U.S. federal income tax purposes, and persons whose functional currency is not the U.S. dollar. This summary does not address any U.S. federal estate, gift or other non-income tax consequences or any applicable state, local, foreign, or other tax consequences. Each stockholder's individual circumstances may affect the tax consequences of the Distribution.

For purposes of this summary, a "U.S. holder" is a beneficial owner of MSG Entertainment common stock that is, for U.S. federal income tax purposes:

• an individual who is a citizen or a resident of the United States;

• a corporation, or other entity taxable as a corporation for U.S. federal income tax purposes, created or
organized under the laws of the United States or any state or political subdivision thereof;

• an estate, the income of which is subject to United States federal income taxation regardless of its source; or

• a trust, if (i) a court within the United States is able to exercise primary jurisdiction over its
administration and one or more U.S. persons have the authority to control all of its substantial decisions, or (ii) it has a valid election in place under applicable U.S. Department of Treasury regulations to be treated as a U.S. person.

A "non-U.S. holder" is a beneficial owner of MSG Entertainment common stock that is not a U.S. holder for U.S. federal income tax purposes.

If a partnership (including any arrangement treated as a partnership for U.S. federal income tax purposes) holds shares of MSG Entertainment common stock, the tax treatment of a partner in the partnership generally will depend upon the status of the partner and the activities of the partnership. A partner of a partnership holding shares of MSG Entertainment common stock should consult its tax advisor regarding the tax consequences of the Distribution.

MSG Entertainment expects to obtain an opinion from Sullivan & Cromwell LLP substantially to the effect that, among other things, the distribution by MSG Entertainment of our Class A Common Stock and Class B Common Stock to the holders of MSG Entertainment Class A Common Stock and MSG Entertainment Class B Common Stock, respectively (i.e., the Distribution), should qualify as a tax-free distribution under the Code. The opinion will not be binding on the IRS or the courts. Certain transactions related to the Distribution that are not addressed (or expected to be addressed) by the opinion could result in the recognition of income or gain by MSG Entertainment. The opinion will rely on factual representations and reasonable assumptions, which, if incorrect or inaccurate, may jeopardize the ability to rely on such opinion. MSG Entertainment does not intend to request any ruling from the IRS as to the U.S. federal income tax consequences of the Distribution.

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On the basis of the opinion we expect to receive, and assuming that MSG Entertainment common stock is a capital asset in the hands of an MSG Entertainment stockholder on the Distribution date:

• Except for any cash received in lieu of a fractional share of our common stock, an MSG Entertainment stockholder
will not recognize any income, gain or loss as a result of the receipt of our common stock in the Distribution.

• An MSG Entertainment stockholder's holding period for our common stock received (including, for this
purpose, any fractional share of our common stock for which cash is received) in the Distribution will include the period for which that stockholder's MSG Entertainment common stock was held.

• An MSG Entertainment stockholder's tax basis for our common stock received in the Distribution will be
determined by allocating to that common stock, on the basis of the relative fair market values of MSG Entertainment common stock and our common stock at the time of the Distribution, a portion of the stockholder's tax basis in its MSG
Entertainment common stock. An MSG Entertainment stockholder's tax basis in its MSG Entertainment common stock will be decreased by the portion allocated to our common stock. Within a reasonable period of time after the Distribution, MSG
Entertainment will provide its stockholders who receive our common stock pursuant to the Distribution with a worksheet for calculating their tax bases in our common stock and their MSG Entertainment common stock.

• The receipt of cash in lieu of a fractional share of our common stock generally will be treated as a sale of the
fractional share of our common stock, and an MSG Entertainment stockholder will recognize gain or loss equal to the difference between the amount of cash received and the stockholder's tax basis in the fractional share of our common
stock, as determined above. The gain or loss will be long-term capital gain or loss if the holding period for the fractional share of our common stock, as determined above, is more than one year.

• The Distribution will not be a taxable transaction to us or MSG Entertainment. However, certain transactions
related to the Distribution that are not expected to be addressed by the opinion could result in the recognition of income or gain by MSG Entertainment.

MSG Entertainment is required by applicable tax rules to dispose of all retained shares as soon as practicable consistent with the business purposes for the retention, and expects to dispose of such retained shares within one year, subject to market conditions. If the Distribution does not qualify for tax-free treatment for U.S. federal income tax purposes, then, in general, MSG Entertainment would recognize taxable gain in an amount equal to the excess of the fair market value of our common stock distributed in the Distribution over MSG Entertainment's tax basis therein (i.e., as if it had sold such common stock in a taxable sale for its fair market value). In addition, the receipt by MSG Entertainment stockholders of our common stock would be a taxable distribution, and each U.S. holder that receives our common stock in the Distribution would be treated as if the U.S. holder had received a distribution equal to the fair market value of our common stock that was distributed to it, which generally would be treated first as a taxable dividend to the extent of such holder's pro rata share of MSG Entertainment's earnings and profits, then as a non-taxable return of capital to the extent of the holder's tax basis in its MSG Entertainment common stock, and thereafter as capital gain with respect to any remaining value.

Even if the Distribution otherwise qualifies for tax-free treatment under the Code, the Distribution may be taxable to MSG Entertainment and would result in a significant U.S. federal income tax liability to MSG Entertainment (but not to the MSG Entertainment stockholders) under Section 355(e) of the Code if the Distribution were deemed to be part of a plan (or series of related transactions) pursuant to which one or more persons acquire, directly or indirectly, stock representing a 50% or greater interest by vote or value, in MSG Entertainment or us. For this purpose, any acquisitions of MSG Entertainment's stock or our stock within the period beginning two years before the Distribution and ending two years after the Distribution are presumed to be part of such a plan, although MSG Entertainment or we may be able to rebut that presumption. The process for determining whether a prohibited acquisition has occurred under the rules described in this paragraph is complex, inherently factual and subject to interpretation of the facts and circumstances of a particular case. MSG Entertainment or we might inadvertently cause or permit a prohibited change in the ownership of MSG Entertainment or us to occur, thereby triggering tax to MSG Entertainment, which could have a material adverse effect. If such an acquisition of our stock or MSG

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Entertainment's stock triggers the application of Section 355(e) of the Code, MSG Entertainment would recognize taxable gain equal to the excess of the fair market value of our common stock distributed in the Distribution over MSG Entertainment's tax basis therein, but the Distribution would be tax-free to each MSG Entertainment stockholder. In certain circumstances, under the tax disaffiliation agreement between MSG Entertainment and us (the "Tax Disaffiliation Agreement"), we would be required to indemnify MSG Entertainment against certain taxes imposed on MSG Entertainment if they resulted from certain actions by us after the Distribution. Please see "Certain Relationships and Related Party Transactions — Relationship Between MSG Entertainment and Us After the Distribution — Tax Disaffiliation Agreement" for a more detailed discussion of the Tax Disaffiliation Agreement between MSG Entertainment and us.

Payments of cash in lieu of a fractional share of our common stock made in connection with the Distribution may, under certain circumstances, be subject to backup withholding, unless a holder provides proof of an applicable exception or a correct taxpayer identification number, and otherwise complies with the applicable requirements of the backup withholding rules. Any amounts withheld under the backup withholding rules are not additional tax and may be refunded or credited against the holder's U.S. federal income tax liability, provided that the holder furnishes the required information to the IRS.

U.S. Treasury regulations require certain MSG Entertainment stockholders with significant ownership in MSG Entertainment that receive shares of our stock in the Distribution to attach to their U.S. federal income tax return for the year in which such stock is received a detailed statement setting forth such data as may be appropriate to show that the Distribution is tax-free under the Code. Within a reasonable period of time after the Distribution, MSG Entertainment will provide its stockholders who receive our common stock pursuant to the Distribution with the information necessary to comply with such requirement.

The Company has not made a determination as to whether we will be deemed to be a "United States real property holding corporation" as defined in section 897(c)(2) of the Code. In general, we will be a USRPHC if 50% or more of the fair market value of our assets constitute "United States real property interests" within the meaning of the Code. However, the determination of whether we are a USRPHC turns on the relative fair market value of our United States real property interests and our other assets, and because the USRPHC rules are complex and the determination of whether we are a USRPHC depends on facts and circumstances that may be beyond our control, we can give no assurance as to our USRPHC status after the Distribution.

If we are treated as a USRPHC, certain adverse U.S. federal income tax consequences might apply to non-U.S. holders that hold our Class A Common Stock and Class B Common Stock after the Distribution. Specifically, a non-U.S. holder that holds a class of shares that is traded on an established securities market will be subject to the Foreign Investment in Real Property Tax Act of 1980, as amended ("FIRPTA"), in respect of a sale or disposition of such shares if the holder owned more than 5% of the shares of such class at any time during the shorter of the period that the non-U.S. holder owned such shares or the five-year period ending on the date when the holder sold or disposed of the shares. We expect that our Class A Common Stock, but not our Class B Common Stock, will be traded on an established securities market after the Distribution, but there can be no assurance that our Class A Common Stock will in fact be traded on an established securities market after the Distribution. A non-U.S. holder that holds our Class B Common Stock will be subject to FIRPTA in respect of a sale or disposition of such stock if on the date the stock was acquired by the holder, it had a fair market value greater than the fair market value on that date of 5% of our Class A Common Stock. If a non-U.S. holder holds our Class B Common Stock, and subsequently acquires additional interests of the same class, then all such interests must be aggregated and valued as of the date of the subsequent acquisition for purposes of the 5% test that is described in the preceding sentence. If tax under FIRPTA applies to the gain on the sale or disposition of shares, non-U.S. holders will be taxed at the normal capital gain rates applicable to U.S. holders, subject to any applicable alternative minimum tax in the case of nonresident alien individuals. For purposes of determining the amount of shares owned by a holder, complex constructive ownership rules apply.

Furthermore, if we are treated as a USRPHC, we could potentially be required to withhold at least 15% of any distribution in excess of our current and accumulated earnings and profits, even if the non-U.S. holder is not

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liable for U.S. tax on the receipt of that distribution. However, a non-U.S. holder may seek a refund of these amounts from the IRS if the non-U.S. holder's tax liability with respect to the distribution is less than the amount withheld. Such withholding should generally not be required if a non-U.S. holder would not be taxed under FIRPTA upon a sale or disposition of our shares, as discussed in the previous paragraph.

A beneficial owner of MSG Entertainment common stock that is a non-U.S. holder should consult its tax advisor as to the particular tax consequences that would be applicable to such holder if we are treated as a USRPHC after the Distribution.

EACH MSG ENTERTAINMENT STOCKHOLDER SHOULD CONSULT ITS TAX ADVISOR ABOUT THE PARTICULAR CONSEQUENCES OF THE DISTRIBUTION TO SUCH STOCKHOLDER, INCLUDING THE APPLICATION OF STATE, LOCAL AND FOREIGN TAX LAWS, AND POSSIBLE CHANGES IN TAX LAW THAT MAY AFFECT THE TAX CONSEQUENCES DESCRIBED ABOVE.

**Listing and Trading of Our Common Stock** 

There is not currently a public market for our common stock. We will apply for our Class A Common Stock to be listed on the NYSE under the symbol "MSGE" (and we will change our name to "Madison Square Garden Entertainment Corp.") and we expect that Madison Square Garden Entertainment Corp. will change its symbol on the NYSE to "SPHR" (and be renamed "MSG Sphere Corp.") in connection with the Distribution. It is anticipated that trading will commence on a when-issued basis prior to the Distribution. On the first trading day following the Distribution date, when-issued trading in our Class A Common Stock will end and regular-way trading will begin. "When-issued trading" refers to trading which occurs before a security is actually issued. These transactions are conditional with settlement to occur if and when the security is actually issued and NYSE determines transactions are to be settled. "Regular way trading" refers to normal trading transactions, which are settled by delivery of the securities against payment on the third business day after the transaction.

We cannot assure you as to the price at which our Class A Common Stock will trade before, on or after the Distribution date. Until our Class A Common Stock is fully distributed and an orderly market develops in our Class A Common Stock, the price at which such stock trades may fluctuate significantly. In addition, the combined trading prices of our Class A Common Stock and MSG Entertainment Class A Common Stock held by stockholders after the Distribution may be less than, equal to, or greater than the trading price of the MSG Entertainment Class A Common Stock prior to the Distribution. Our Class B Common Stock will not be listed on a securities exchange or publicly traded.

The shares of our common stock distributed to MSG Entertainment stockholders will be freely transferable, except for shares received by people who may have a special relationship or affiliation with us or shares subject to contractual restrictions. People who may be considered our affiliates after the Distribution generally include individuals or entities that control, are controlled by, or are under common control with us. This may include certain of our officers, directors and significant stockholders, including MSG Entertainment. Persons who are our affiliates will be permitted to sell their shares only pursuant to an effective registration statement under the Securities Act of 1933, as amended (the "Securities Act"), or an exemption from the registration requirements of the Securities Act, or in compliance with Rule 144 under the Securities Act ("Rule 144"). As described under "Shares Eligible for Future Sale — Registration Rights Agreements," we expect that certain persons will have registration rights with respect to our stock.

**Reason for Furnishing this Information Statement** 

This information statement is being furnished by MSG Entertainment solely to provide information to stockholders of MSG Entertainment who will receive shares of our common stock in the Distribution. It is not, and is not to be construed as, an inducement or encouragement to buy or sell any of our securities. We and MSG Entertainment will not update the information in this information statement except in the normal course of our and MSG Entertainment's respective public disclosure obligations and practices.

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**BUSINESS** 

We are a Delaware corporation with our principal executive offices at Two Pennsylvania Plaza, New York, NY 10121. Our telephone number is +1 (212) 465-6000. Spinco is a holding company and conducts substantially all of its operations through its subsidiaries.

Spinco was incorporated on September 15, 2022 and is a direct, wholly-owned subsidiary of MSG Entertainment. MSG Entertainment's board of directors approved the Distribution on [●], 2023. Prior to the Distribution, the Company will acquire the subsidiary of MSG Entertainment that owns, directly and indirectly, the subsidiaries, businesses and other assets described in this information statement. Where we describe in this information statement our business activities, we do so as if these transfers have already occurred.

We expect that on or prior to the Distribution, Madison Square Garden Entertainment Corp. will change its name to "MSG Sphere Corp." and MSGE Spinco, Inc. will change its name to "Madison Square Garden Entertainment Corp." We will apply for our Class A Common Stock to be listed on the NYSE under the symbol "MSGE" and we expect that Madison Square Garden Entertainment Corp. (renamed "MSG Sphere Corp.") will change its symbol on the NYSE to "SPHR" in connection with the Distribution. We will not list our Class B Common Stock on any securities exchange.

**General** 

We are a leader in live entertainment experiences, comprised of iconic venues and marquee entertainment content. Utilizing our powerful brands and live entertainment expertise, the Company delivers unique experiences that set the standard for excellence and innovation while forging deep connections with diverse and passionate audiences.

Our company includes (i) our portfolio of venues: The Garden, The Theater at Madison Square Garden (formerly the Hulu Theater), Radio City Music Hall, the Beacon Theatre, and The Chicago Theatre, (ii) the original production, the *Christmas Spectacular*, and (iii) our entertainment and sports bookings business, which showcases a broad array of compelling concerts, family shows and special events, as well as a diverse mix of sporting events, for millions of guests annually.

We manage our business through a single reportable segment.

**Impact of the COVID-19 Pandemic on Our Business** 

The Company's operations and operating results were materially impacted by the COVID-19 pandemic (including COVID-19 variants) and actions taken in response by governmental authorities and certain professional sports leagues during Fiscal Years 2020, 2021 and 2022. For the majority of Fiscal Year 2021, substantially all of our business operations were suspended. Fiscal Year 2022 was also impacted by the pandemic, with fewer ticketed events at our venues in the first half of the fiscal year as compared with Fiscal Year 2019 (the last full fiscal year not impacted by COVID-19) due to the lead-time required to book touring acts and artists, and an increase in COVID-19 cases due to a new variant, which resulted in a number of events at our venues being cancelled or postponed in the fiscal second and third quarters.

As a result of government-mandated assembly limitations and closures, all of our venues were closed beginning in March 2020. Use of The Garden resumed for Knicks and Rangers home games without fans in December 2020 and January 2021, respectively, and was available at 10% seating capacity from February through May 2021 subject to certain safety protocols and social distancing. Beginning in May 2021, all of our New York venues were permitted to host guests at full capacity, subject to certain restrictions, and effective June 2021, The Chicago Theatre was permitted to host events without restrictions. Guests of our Chicago and New York venues were also subject to certain vaccination requirements until February and March 2022, respectively. Our venues no longer require guests to provide proof of COVID-19 vaccination before entering, but

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specific performers may require enhanced protocols. We continue to monitor risks related to COVID-19 and prepare so that we can respond to any increased safety protocols that may be needed in response to a change in circumstances, request from a performer or new governmental or league mandates. However, existing or prior procedures may not be sufficient as COVID-19 continues to evolve, including through new case levels or variants.

For Fiscal Year 2021, the majority of ticketed events at our venues were postponed or cancelled. For Fiscal Year 2022 and as of the date of this filing, live events have been permitted to be held at all of our venues and we are continuing to host and book new events. As a result of an increase in cases of a COVID-19 variant, select bookings were postponed or cancelled at our venues in the second and third quarters of Fiscal Year 2022. Variants of COVID-19 that arise in the future may result in additional postponements or cancellations of bookings at our venues.

The impact of the COVID-19 pandemic on our operations also included the partial cancellation of the 2021 production of the *Christmas Spectacular* and the cancellation of the 2020 production of the *Christmas Spectacular*.

The Company has Arena License Agreements with MSG Sports that require the Knicks and Rangers to play their home games at The Garden. As discussed above, capacity restrictions, use limitations and social distancing requirements were in place for the entirety of the Knicks and Rangers 2020-21 regular seasons, which materially impacted the payments we received under the Arena License Agreements for Fiscal Year 2021. On July 1, 2021, the Knicks and Rangers began paying the full amounts provided for under their respective Arena License Agreements. The Knicks and the Rangers each completed their 2021-2022 82-game regular seasons, with the Rangers advancing to the playoffs.

It is unclear to what extent COVID-19 concerns, including with respect to new variants, could result in new government or league-mandated capacity restrictions or vaccination/mask requirements or impact the use of and/or demand for our venues, demand for our sponsorship and signage assets, deter our employees and vendors from working at our venues (which may lead to difficulties in staffing) or otherwise materially impact our operations.

**Our Strengths** 

• Strong position in live entertainment through:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A portfolio of world-renowned venues; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Marquee live entertainment brands and content.

• Significant presence in the New York market – the nation's number one DMA;

• Deep industry relationships that drive top-tier performers and a wide
variety of events to the Company's venues;

• Proven track record of delivering significant value for partners through innovative sponsorships and premium
hospitality;

• Reputation for world-class customer experience driven by decades of expertise in sales and marketing, and venue
operations;

• Expertise in utilizing data to drive decisions to maximize revenue and the experience of our guests;

• Long-term agreements to host home games at The Garden for two of the most recognized franchises in professional
sports — the Knicks and the Rangers; and a

• Strong and seasoned management team.

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**Our Strategy** 

Our strategy is to create world-class live experiences for our guests and partners by leveraging (i) our Company's unique portfolio of live entertainment assets and brands; (ii) our expertise in venue management, bookings and productions, sponsorship, ticketing, marketing and premium hospitality and content development; (iii) our deep relationships across the entertainment and sports industries; and (iv) our strong connection with diverse and passionate audiences. We believe this strategy will enable us to generate long-term value creation for our shareholders.

Key components of our strategy include:

• *Maximizing the live entertainment experience for our customers.* We use the strength of our venues,
expertise and relationships to attract top talent and deliver unforgettable experiences for our guests. We have a track record of designing world-class facilities with top-quality amenities, including our
renovations of The Garden, Radio City Music Hall, and the Beacon Theatre. We also continue to explore new ways to use technology to improve the guest experience. From the way our customers buy food, beverage and merchandise, to how we market and
process their tickets, to utilizing next-generation audio technology in our venues, we strive to give our customers the best experience in the industry. We believe this approach will enable us to drive improvements in per-event revenue and profitability at our venues and help create a seamless and memorable guest experience that will help drive repeat visitation to our venues.

• *Increasing the utilization of our venues.* Part of what drives our success is our "artist first"
approach. Through dedicated artist areas and top-tier service, our talent-friendly environment not only attracts artists to our venues, but also brings them back for repeat performances. Another part of this
approach is how we use our diverse collection of venues. With seating capacities and configurations that range from 2,800 to 21,000, our venue portfolio enables us to shepherd artists through the growth in their careers, helping us develop deeper
industry relationships. We will continue to use this "artist first" approach to attract the industry's top talent with the goal of increasing utilization across all our venues through more multi-night concerts, as well as more marquee
special events. We also plan to continue exploring opportunities for new events that would be unique to our venues, including high-profile residencies that would help build our base of events.

• *Delivering unrivaled marketing exposure for our partners.* Our assets are highly sought after by companies
that value the popularity of our venues and entertainment brands. Our value proposition is further strengthened by our sponsorship sales representation agreement with MSG Sports which enables us to deliver broad-based marketing platforms that
combine our assets with MSG Sports' professional sports brands. We plan to continue utilizing this integrated approach to both renew and extend our relationships with existing partners, as well as to form partnerships with leading companies in
emerging industries and in industry verticals where we are currently underpenetrated. We also offer our partners expanded reach through outdoor signage around the Madison Square Garden Complex and Penn Station, a major commuter hub in Manhattan. We
plan to selectively explore additional opportunities to grow our external signage portfolio which could increase our existing marketing partnerships packages as well as attract new partners.

• *Offering best-in-class premium hospitality products*. The Company offers a wide array of premium corporate hospitality offerings that cater to a variety of audiences. For example, The Garden has a range of suite and club products, including 21 Event Level suites, 58 Lexus
Level suites, 18 Infosys Level suites, the Caesars Sportsbook Lounge, Suite Sixteen and the HUB Loft. These suites and clubs — which provide exclusive private spaces, first-class amenities and some of the best seats in The Garden — are
primarily licensed to corporate customers with the majority being multi-year agreements with annual escalators. Through our Arena License Agreements with the Knicks and Rangers, we also offer suite holders access to MSG Sports' premium live
sporting events. We believe the strength of our product and content offerings, along with the continued importance of corporate hospitality to our partners, position us well with regard to ongoing renewal and new sales activity. We also plan to
explore enhancing and expanding our premium hospitality offerings, which would create new monetization opportunities for the Company.

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• *Understanding our customers.* We continue to forge direct relationships with customers and fans, with a
focus on understanding how consumers interact with every aspect of the Company. A key component of this strategy is our large and growing proprietary database of millions of customers. The data we collect from our venues and digital products
provides the Company with significant insights into our customers, including who is utilizing our digital assets and attending events at our venues. In addition to providing value for our marketing partners, these insights are leveraged to help
drive revenue and engagement across our assets, providing us with an opportunity to tailor offerings and cross-promote our products and services, introducing customers to our wide range of assets and brands. We also plan to increasingly use data to
proactively identify potential bookings for our venues.

• *Exploring opportunities to expand proprietary entertainment content.* We plan to selectively explore
opportunities to create new live entertainment content, including by leveraging owned intellectual property like the Rockettes. This would enable us to benefit from the economics of being both content owner and venue operator. Additional owned
content would also make us less reliant on third-party events to drive utilization of our venues.

**Our Business** 

Our Company delivers unforgettable live experiences — all in extraordinary settings, with a substantial presence in the New York market, our nation's largest DMA. This creates significant demand for our brands by a wide selection of artists, sporting events, premier companies and the public. And with a foundation of iconic venues, our Company has a proven ability to leverage the strength of our industry relationships, marketing assets, customer database and live event expertise to create compelling performance, promotion and distribution opportunities for artists, events and productions.

Specifically, the Company produces, presents and hosts a variety of live entertainment events, such as concerts, sporting events, family shows, performing arts events, special events and the wholly-owned *Christmas Spectacular* production which features the world-famous Rockettes. In addition, the Company hosts two of the most recognized franchises in professional sports — the NBA's Knicks and the NHL's Rangers. These live events are held at the Company's venues: The Garden, The Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre, and The Chicago Theatre. With seating capacities and configurations that range from 2,800 to 21,000, our diverse collection of venues enables us to showcase a multitude of acts and events that cover a wide spectrum of genres to diverse audiences.

Prior to December 2, 2022, the Company also owned a controlling interest in Boston Calling Events, LLC ("BCE"), the entertainment production company that owns and operates the Boston Calling Music Festival. The Company disposed of its controlling interest in BCE in Fiscal Year 2023.

***Our Bookings Business***

*Live Entertainment* 

Our Company is an established industry leader that books a wide variety of live entertainment events in our venues, which perennially include some of the biggest names in music and entertainment. Over the last several years, our venues have been key destinations for artists such as the Eagles, U2, Foo Fighters, Paul McCartney, Drake, Bruno Mars, Justin Bieber, Harry Styles, Dead and Company, Phish, Fleetwood Mac, Kacey Musgraves, Eric Clapton, Josh Groban, Andrea Boccelli, Jennifer Lopez, Carrie Underwood, Justin Timberlake, P!nk, Chris Stapleton, Radiohead, Barbra Streisand, Olivia Rodrigo, Ariana Grande, Sebastian Maniscalco, Trevor Noah, John Mulaney and Dave Chappelle.

In addition, we have successfully developed new ways to increase the utilization of our venues, while creating unique experiences for artists and fans with our various residencies — including The Garden's first music franchise: Billy Joel at The Garden. This extraordinary residency is at a historic 85 performances and counting since it began in January 2014, bringing Billy Joel's lifetime performances at The World's Most Famous Arena to 132 (through January 2023). The Company's other current residencies include the multi-year, dual-city residency of Tedeschi

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Trucks Band at both the Beacon Theatre and The Chicago Theatre. The Company has also in recent years successfully created other unique bookings and residencies across its portfolio of venues, including Jerry Seinfeld at the Beacon Theatre, Dave Chappelle at Radio City Music Hall, Phish's 13-night "Baker's Dozen" run at The Garden, Ali Wong at the Beacon Theatre, Josh Groban's "Great Big Radio City Show," Trey Anastasio's eight-week virtual residency at the Beacon Theatre — a first for the Company — and Harry Styles' 15-night run at The Garden.

Our venues also attract family shows and theatrical productions, which have included: *'Twas the Night Before… by Cirque du Soleil* at both The Chicago Theatre and The Theater at Madison Square Garden, as well as *Peppa Pig Live!, Paw Patrol Live!* and *Sesame Street Live!*. Other significant events that have taken place at our venues include the Tony Awards, the MTV Video Music Awards, New York Comic Con, Tribeca Festival events and the final season premieres of both HBO's *Game of Thrones* and STARZ's *POWER*. We have also hosted appearances by luminaries such as His Holiness Pope Francis, His Holiness the Dalai Lama and the Prime Minister of India, Narendra Modi, along with graduations, television upfronts, product launches and film premieres.

Although we primarily license our venues to third-party promoters for a fee, we also promote or co-promote shows. If we serve as promoters or co-promoters of a show, we have economic risk relating to the event.

*Sports* 

MSG Sports' professional sports teams, the Knicks and Rangers, are two of the most recognized franchises in sports, with passionate, multi-generational fanbases. The Company has long-term Arena License Agreements with MSG Sports that require the Knicks and the Rangers to play their home games at The Garden, allowing us to continue hosting their long-time fans at The World's Most Famous Arena.

Our Company also promotes, produces and/or presents a broad array of other live sporting events, including professional boxing, college basketball, college hockey, professional bull riding, mixed martial arts, esports and wrestling. Many of these events are among the most popular in our history and are perennial highlights on our annual calendar, as well as some of The Garden's longest-running associations.

Professional boxing has had a long history with The Garden. The Garden famously hosted Muhammad Ali and Joe Frazier's 1971 "Fight of the Century," considered among the greatest sporting events in modern history, as well as numerous other boxing greats, including: Joe Louis, Rocky Marciano, Sugar Ray Robinson, Willie Pep, Emile Griffith, George Foreman, Roberto Duran, Oscar De La Hoya, Sugar Ray Leonard, Lennox Lewis, Roy Jones, Jr., Mike Tyson, Evander Holyfield, Miguel Cotto and Wladimir Klitschko. In recent years, boxing's top fighters have called The Garden home, including former unified lightweight world champion Teofimo Lopez, former three weight class champion Vasiliy Lomachenko, former unified middleweight champion Gennadiy Golovkin and boxing superstar Canelo Alvarez. In 2022, for the first-time in The Garden's history, two women headlined a boxing event when Katie Taylor faced off against Amanda Serrano in front of a sold-out crowd for the undisputed lightweight championship.

Since the return of professional mixed martial arts in New York State in 2016, The Garden regularly hosts top UFC events, as well as Bellator MMA events and the Professional Fighters League, which has held events at The Theater at Madison Square Garden, including its inaugural World Championships.

College sports have been a mainstay at The Garden for decades, with college basketball being featured at The World's Most Famous Arena for nearly 90 years. The Garden hosted the annual Big East Tournament in March 2022 for the 40th straight year. It is the longest-running conference tournament at one site in all of college basketball and will celebrate its 41st anniversary at The Garden in March 2023. In addition, St. John's University has called The Garden its "home away from home" for decades. The Garden also continues to build its college hockey tradition, with a popular biennial event featuring Cornell University vs. Boston University, as well as recent visits from top national teams such as Boston College, North Dakota, Harvard, Yale, Michigan and Minnesota.

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For the first time in venue history, the Madison Square Garden Complex hosted professional darts when the US Darts Masters and the North American Championship took place at The Theater at Madison Square Garden in 2022, which also marked the first time a professional darts championship was held in New York City.

Other world-class sporting events have included the NBA All-Star Game in 2015, and the NCAA Division I Men's Basketball East Regional Finals, which The Garden hosted in 2014 and 2017. The widely popular season-ending tournament is set to return to The Garden in 2023.

***Our Productions***

One of the Company's core properties, the *Christmas Spectacular* — which runs exclusively at Radio City Music Hall and features the world-famous Rockettes — has been performed at the Music Hall since 1933. This production has become a tradition for many, creating a holiday touchstone that generations of fans want to return to, time and again. The show's enduring popularity is driven by the incomparable Rockettes, the longest-running precision dance company in America, admired for their iconic style of dance, talent and athleticism, as well as their unity both on and off the stage.

In 2021, the production returned for a shortened run — a result of the COVID-19 pandemic — welcoming over 400,000 guests across 101 performances and serving as a source of joy and inspiration for many fans. The Rockettes perform in nine numbers throughout the 90-minute production — with more technically complex and different styles of dance than ever before.

We acquired the rights to the *Christmas Spectacular* in 1997, and those rights are separate from, and do not depend on the continuation of, our lease of Radio City Music Hall. We also hold rights to the Rockettes brand in the same manner. We lease Radio City Music Hall pursuant to a long-term lease agreement. See "— Our Business — Our Venues — *Radio City Music Hall.*"

The Company believes it has a significant and unique asset in the Rockettes and continues to strengthen and broaden the Rockettes brand by targeting the most prominent and effective vehicles that elevate their visibility and underscore their reputation as beloved American cultural icons. The Rockettes have appeared or performed at high-profile events and award shows, including Presidential Inaugurations, Macy's Thanksgiving Day Parade, Macy's 4th of July Fireworks event, the Rockefeller Center Tree Lighting, New Year's Eve Times Square Ball Drop, Tony Awards, MTV Video Music Awards, World Pride events, and television shows and holiday specials (*Saturday Night Live, America's Got Talent, Project Runway, The Kacey Musgraves Christmas Show, The Today Show, Live with Kelly and Ryan* and *The Tonight Show Starring Jimmy Fallon*), among many others. In November 2022, the Rockettes were featured in Hallmark Channel's movie, "A Holiday Spectacular," which was shot in part on location at Radio City Music Hall and will debut as part of the network's Countdown to Christmas programming.

We continue to pursue opportunities to generate greater brand awareness, including through television and public appearances and dance education offerings. We are also committed to ensuring that the best dancers from all backgrounds, cultures, races, religions and ethnicities can become Rockettes, and are actively strengthening our relationships within the dance community, expanding where we hold auditions and scouting sessions, and eliminating financial barriers to entry, including for Rockettes Conservatory, our dancer development program. Rockettes Conservatory is an invite-only, week-long intensive training program held at Radio City Music Hall and offered at no cost to participants. The program was designed as an investment in promising dancers' futures, and in addition to becoming an inclusive talent pipeline for future Rockettes, conservatory ensures the dance company continues to evolve by attracting the best dancers. Additionally, to create a more inclusive line by broadening the number of dancers eligible to become Rockettes, the organization announced an expanded height requirement beginning with the April 2022 audition. The dance company continues to foster relationships with diverse dance organizations, including Dance Theatre of Harlem, Harlem School of the Arts, The Ailey School, International Association of Blacks in Dance and The Chloé and Maud Foundation, to provide program support,

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introduce staff and students to the unique world of precision dance and actively engage with dancers for Rockettes Conservatory.

***Our Venues***

The Company operates a mix of iconic venues that continue to build on their historic prominence as destinations for unforgettable experiences and events.

We own or operate under long-term leases a total of five venues in New York City and Chicago. These venues are: The Garden, The Theater at Madison Square Garden, Radio City Music Hall and the Beacon Theatre in New York City; and The Chicago Theatre.

*The Garden* 

The Garden has been a celebrated center of New York life since it first opened its doors in 1879. Over its 143-year history, there have been four Garden buildings, each known for showcasing the best of the era's live sports and entertainment offerings. We believe that The Garden has come to epitomize the power and passion of live sports and entertainment to people around the world, with an appearance at The Garden often representing a pinnacle of an athlete's or performer's career. Known as "The World's Most Famous Arena," The Garden has been the site of some of the most memorable events in sports and entertainment, and together with The Theater at Madison Square Garden, has hosted hundreds of events and millions of visitors each year. In 2009, *Billboard* magazine ranked The Garden the number-one venue of the decade in its respective class based upon gross ticket sales. Music industry subscribers to the trade magazine *Pollstar* have voted The Garden "Arena of the Year" 23 times since the inception of the awards in 1989. The Garden also regularly ranks as the highest-grossing entertainment venue of its size in the world based on *Billboard* magazine's mid-year and year-end rankings. The venue was ranked number one worldwide four times in the last five years for venues with a capacity over 15,001, according to *Billboard's* year-end rankings.

Over The Garden's history, it has been the setting for countless "big events," inspired performances and one-of-a-kind moments that have helped define sports, entertainment and culture. Highlights include "The Fight of the Century" between Muhammad Ali and Joe Frazier in 1971, the 1970 Knicks' NBA Championship, the Rangers' 1994 Stanley Cup Championship, three Democratic National Conventions and one Republican National Convention, Marilyn Monroe's famous birthday serenade to President John F. Kennedy, Frank Sinatra's "Main Event" concert in 1974, the only U.S. concerts from the reunited Cream, the 25th Anniversary Rock and Roll Hall of Fame concerts, the 60th Annual Grammy Awards, and Billy Joel's record-breaking 132 total performances at The Garden (through January 2023). In September 2015, His Holiness Pope Francis celebrated Mass at The Garden as part of his successful U.S. visit, which marked the first time a current pope has visited The Garden since Pope John Paul II in 1979. The Garden has also hosted four prominent benefit concerts, which galvanized the public to respond to national and global crises, including the first of its kind, "The Concert for Bangladesh" in 1972, as well as "The Concert for New York City," following the events of 9/11, "From the Big Apple to the Big Easy," held after Hurricane Katrina in 2005, and "12-12-12, The Concert for Sandy Relief" in 2012. And in February 2020, *To Kill a Mockingbird* became the first-ever Broadway play to perform at The Garden with an entirely free performance for 18,000 New York City public school students. The Garden also continues to be home to two of MSG Sports' professional sports franchises – the Knicks and Rangers.

The current Madison Square Garden Complex, located between 31st and 33rd Streets and Seventh and Eighth Avenues on Manhattan's West Side, opened on February 11, 1968 with a salute to the United Service Organizations hosted by Bob Hope and Bing Crosby. From a structural standpoint, the construction of the current Garden was considered an engineering wonder for its time, including its famous circular shape and unique, cable supported ceiling, which contributes to its intimate feel. It was the first large structure built over an active railroad track. The builder, R.E. McKee, had a national reputation and was later recognized as a "Master Builder" by the construction industry. Architect Charles Luckman had one of the largest firms in the country and designed such buildings as the Prudential Tower in Boston, NASA's flight center in Houston and the Forum in Inglewood, CA.

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Following a three-year, top-to-bottom renovation, in October 2013, The Garden was fully transformed, featuring improved sightlines, additional entertainment and dining options, new concourses, upgraded hospitality areas, new technology, unique historic exhibits, and a completely transformed interior, where the intimacy of the arena bowl and The Garden's world-famous ceiling were maintained. Focused on the total fan experience, the renovation was designed to benefit everyone in attendance, whether first-time visitors, season ticket subscribers, athletes, artists, suite holders or marketing partners. The Garden's transformation ensured that attending an event at "The World's Most Famous Arena" remained unlike anywhere else.

We own the Madison Square Garden Complex, the platform on which it is built and development rights (including air rights) above our property. Madison Square Garden sits atop Penn Station, a major commuter hub in Manhattan, which is owned by the National Railroad Passenger Corporation (Amtrak). While the development rights we own would permit us to expand in the future, any such use of development rights would require various approvals from the City of New York. The Garden seats up to approximately 21,000 spectators for entertainment and sporting events and, along with The Theater at Madison Square Garden, contains approximately 1,100,000 square feet of floor space over 11 levels.

*The Theater at Madison Square Garden* 

The Theater at Madison Square Garden, which has approximately 5,600 seats, opened as part of the fourth Madison Square Garden Complex in 1968. Since then, some of the biggest names in live entertainment have performed at The Theater at Madison Square Garden, including The Who, Diana Ross, Elton John, James Taylor, Mary J. Blige, Pentatonix, John Legend, Karol G, Ellie Goulding, Chris Rock, Neil Young, Bill Maher, Jerry Seinfeld, Tyler, the Creator, J Balvin, Ricky Gervais, Nicky Jam, Aziz Ansari, Alejandro Sanz, Bert Kreischer and Van Morrison. The Theater at Madison Square Garden has also been the site for several boxing events including the inaugural World Championships of the Professional Fighters League as well as the NBA and NFL Drafts. In addition, it has hosted various product launches, upfronts, award shows, and other special events such as *Wheel of Fortune* and audition shows for *America's Got Talent*, as well as a variety of theatrical productions and family shows, including '*Twas the Night Before… by Cirque du Soleil, A Christmas Story, Elf The Musical, Paw Patrol Live!* and *Sesame Street Live!*. The Theater at Madison Square Garden regularly ranks as one of the highest-grossing entertainment venues of its size in the world, based on *Billboard* magazine's mid-year and year-end rankings.

*Radio City Music Hall* 

Radio City Music Hall has a rich history as a national theatrical and cultural mecca since it was first built by theatrical impresario S.L. "Roxy" Rothafel in 1932. Known as "The Showplace of the Nation," it was the first building in the Rockefeller Center complex and, at the time, the largest indoor theater in the world. Radio City Music Hall, a venue with approximately 6,000 seats, hosts concerts, family shows and special events, and is home to the *Christmas Spectacular*. See "— Our Business — Our Productions." Over its history, entertainers who have graced the Great Stage include: Aretha Franklin, Lady Gaga, Brian Wilson, Harry Styles, Diana Ross, Lizzo, Olivia Rodrigo, Josh Groban, Mariah Carey, Lorde, Nine Inch Nails, Trey Anastasio, Christina Aguilera, Britney Spears, Tony Bennett, Hasan Minhaj, Billie Eilish, Sebastian Maniscalco, Jim Gaffigan, David Gilmour and Dave Chappelle. Radio City Music Hall was recognized by *Pollstar* magazine as Theatre of the Decade for 2009-2019 and regularly ranks as the highest-grossing entertainment venue of its size in the world, based on *Billboard* magazine's mid-year and year-end rankings. The venue has ranked number one worldwide nine of the last ten years for venues with capacities of 5,001 to 10,000, according to *Billboard's* year-end rankings.

In 1978, Radio City Music Hall was designated a New York City landmark by the NYC Landmarks Preservation Commission and a national landmark on the National Register of Historic Places. We acquired the lease in 1997, and in 1999, performed a complete restoration that returned the legendary theater to its original grandeur. The acclaimed restoration touched all aspects of the venue, including burnishing the ceilings of Radio City Music Hall with 720,000 sheets of gold and aluminum leaf, replacing the existing stage curtain with a new 112-foot wide golden silk curtain, and cleaning the three-story tall mural "The Fountain of Youth," by Ezra

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Winter, which looms above the grand staircase. State-of-the-art sound systems, lighting and HDTV capabilities were also installed.

We lease Radio City Music Hall, located at Sixth Avenue and 50th Street in Manhattan, pursuant to a long-term lease agreement. In July 2021, the Company extended the term of the lease, previously set to expire in 2023, until August 31, 2038 with an option to renew for an additional 10 years by providing two years' notice prior to expiration.

*Beacon Theatre* 

In November 2006, we entered into a long-term lease agreement to operate the legendary Beacon Theatre, a venue with approximately 2,800 seats, which sits on the corner of Broadway and 74th Street in Manhattan. The Beacon Theatre was conceived by S. L. "Roxy" Rothafel and is considered the "older sister" to Radio City Music Hall. Designed by Chicago architect Walter Ahlschlager, the Beacon Theatre opened in 1929 as a forum for vaudeville acts, musical productions, drama, opera and movies. The Beacon Theatre was designated a New York City landmark by the NYC Landmarks Preservation Commission in 1979 and a national landmark on the National Register of Historic Places in 1982. Over its history, the Beacon Theatre has been a venerable rock and roll room for some of the greatest names in music, including: Steely Dan, Coldplay, Alice Cooper, Dave Matthews Band, Crosby Stills & Nash, Elton John, Hozier, Tom Petty and the Heartbreakers, Tedeschi Trucks Band, Eddie Vedder, John Mellencamp, Widespread Panic and Bob Dylan, as well as The Allman Brothers Band, which played their 238th show at the Beacon Theatre in October 2014, marking their final concert as a band. In recent years, the venue has become a comedy haven, hosting a monthly Jerry Seinfeld residency and multi-night stands from comedians including Ali Wong, Sebastian Maniscalco, Chelsea Handler, Eddie Izzard, Nate Bargatze and Russell Peters. The venue has also hosted special events, such as film premieres for the Tribeca Festival, along with numerous luminaries such as His Holiness the Dalai Lama in 2009 and 2013, and President Bill Clinton in 2006, when the Rolling Stones played a private concert in honor of his 60th birthday. In Fall 2020, the Company and Trey Anastasio presented *The Beacon Jams*, the venue's first-ever virtual residency which included eight weekly shows that were streamed live to hundreds of thousands of fans and raised more than $1 million for charity.

In August 2008, the Beacon Theatre was closed for a seven-month restoration project to return the theater to its original 1929 grandeur. The restoration of the Beacon Theatre focused on all historic, interior public spaces of the building, backstage and back-of-house areas, and was based on extensive historic research, as well as detailed, on-site examination of original, decorative painting techniques that had been covered by decades-old layers of paint. The Beacon Theatre has won several architectural awards recognizing its outstanding restoration. The widely acclaimed, comprehensive restoration was similar to our restoration of Radio City Music Hall and reflects our commitment to New York City. The Beacon Theatre regularly ranks as one of the highest-grossing entertainment venues of its size in the world, based on *Billboard* magazine's mid-year and year-end rankings.

In August 2022, the Beacon Theatre debuted a groundbreaking new sound system — Sphere Immersive Sound — which was developed for MSG Sphere at The Venetian, substantially improving the audio experience at the venue and providing greater programming control and flexibility for artists and engineers.

In December 2021, the Company extended the term of our lease on the Beacon Theatre, previously set to expire in 2026, until December 31, 2036 with an option to renew for an additional 10 years by providing notice prior to expiration.

*The Chicago Theatre* 

In October 2007, to provide us with an anchor for content and distribution in a key market in the Midwest, we purchased the legendary The Chicago Theatre, a venue with approximately 3,600 seats. The Chicago Theatre, which features its famous six-story-high "C-H-I-C-A-G-O" marquee, was built in 1921 and designed in the

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French Baroque style by architects Cornelius W. Rapp and George L. Rapp. It is the oldest surviving example of this architectural style in Chicago today, and was designated a Chicago landmark building in 1983.

The Chicago Theatre has become a highly attractive destination for concerts, comedy shows and other live events, hosting a wide range of entertainers, including Bob Dylan, Mumford & Sons, David Byrne, Neil Young, Diana Ross, Madonna, Jerry Seinfeld, Janet Jackson, Elvis Costello, Bob Weir, Jim Gaffigan, Conan O'Brien, Amy Schumer, Steely Dan and Brett Eldredge. The venue has also hosted theatrical tours such as *'Twas the Night Before… by Cirque du Soleil, A Christmas Story, The Wizard of Oz, Paw Patrol Live!* and *Dr. Seuss' How The Grinch Stole Christmas! The Musical*. The Chicago Theatre regularly ranks as one of the highest-grossing entertainment venues of its size in the world, based on *Billboard* magazine's mid-year and year-end rankings.

**Intellectual Property** 

We create, own and license intellectual property in the countries in which we operate, have operated or intend to operate, and it is our practice to protect our trademarks, brands, copyrights, inventions and other original and acquired works. We have registered many of our trademarks and have filed applications for certain others. Additionally, we have filed for patent protection in the United States. Our registrations and applications relate to trademarks and inventions associated with, among other of our brands, Madison Square Garden and the Radio City Rockettes brands. We believe our ability to maintain and monetize our intellectual property rights, including our brand logos, are important to our business, our brand-building efforts and the marketing of our products and services. We cannot predict, however, whether steps taken by us to protect our proprietary rights will be adequate to prevent misappropriation of these rights or protect against vulnerability to oppositions or cancellation actions due to non-use. See "— Risk Factors — Risks Related to Cybersecurity and Intellectual Property — *We May Become Subject to Infringement or Other Claims Relating to Our Content or Technology*" and "— Risk Factors — Risks Related to Cybersecurity and Intellectual Property — *Theft of Our Intellectual Property May Have a Material Negative Effect on Our Business and Results of Operations*."

**Other Investments** 

Our Company explores investment opportunities that strengthen its existing position within the entertainment landscape and/or allow us to exploit our assets and core competencies for growth.

**Our Community** 

The Company actively engages with and supports the communities we serve through a variety of important initiatives.

We are proud to play a leadership role organizing extraordinary events such as opening The Garden to the "12-12-12" benefit concert organized post-Superstorm Sandy, which raised more than $50 million for hurricane victims. In February 2020, The Garden opened its doors to 18,000 New York City public school students for an exclusive, free performance of the Broadway production of *To Kill a Mockingbird*. In addition to these events, the Company provides funding annually to various non-profit organizations across the country, as well as in-kind contributions such as tickets, promotional items and food to schools, charities and community-based organizations in the local area. During the COVID-19 pandemic, the Company worked with dozens of local restaurants and charities to donate approximately 200,000 meals to families in need. In addition, the Company is a long-time supporter of the Lustgarten Foundation for Pancreatic Cancer Research, the nation's largest private supporter of pancreatic cancer research, which has directed more than $225 million to research and assembled the best scientific minds to help find a cure.

Our Company also has a close association with The Garden of Dreams Foundation (the "Foundation"), a non-profit charity dedicated to bringing life changing opportunities to young people in need. In partnership with the Company and MSG Sports, the Foundation provides young people in our communities with access to

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educational and skills opportunities, mentoring programs, and memorable experiences that enhance their lives, help shape their futures and create lasting joy. Specific initiatives include the Inspire Scholarship program, which has committed since its inception over $5.8 million in aid to high school seniors to provide financial assistance related to college and trade school expenses. All of the Foundation's activities target young people facing illness or financial challenges, as well as children of uniformed personnel who have been lost or injured while serving our communities. Since its inception in 2006, the Foundation has impacted more than 400,000 young people and their families.

**Regulation** 

The rules, regulations, policies and procedures affecting our business are subject to change. The following paragraphs describe the existing legal and regulatory requirements that are most significant to our business today; they do not purport to describe all present and proposed laws and regulations affecting our business.

Our business is subject to the general powers of federal, state and local government, as well as foreign governmental authorities, to deal with matters of health and public safety.

*Venue Licenses* 

Our venues, like all public spaces, are subject to building and health codes and fire regulations imposed by the state and local governments in the jurisdictions in which they are located. Our venues are also subject to zoning and outdoor advertising regulations, and, with respect to Radio City Music Hall, the Beacon Theatre and The Chicago Theatre, landmark regulations which restrict us from making certain modifications to our facilities as of right or from operating certain types of businesses. Our venues also require a number of licenses to operate, including occupancy permits, exhibition licenses, food and beverage permits, liquor licenses and other authorizations and, with respect to The Garden, a zoning special permit granted by the New York City Planning Commission. In the jurisdictions in which these venues are located, the operator is subject to statutes that generally provide that serving alcohol to a visibly intoxicated or minor guest is a violation of the law and may provide for strict liability for certain damages arising out of such violations. In addition, our venues are subject to the federal Americans with Disabilities Act (and related state and local statutes), which requires us to maintain certain accessibility features at each of our facilities. We and our venues are also subject to environmental laws and regulations. See "— Risk Factors — Economic and Operational Risks — *We Are Subject to Extensive Governmental Regulation and Our Failure to Comply with These Regulations May Have a Material Negative Effect on Our Business and Results of Operations.*"

*Labor* 

Our business is also subject to regulation regarding working conditions, overtime and minimum wage requirements. See "— Risk Factors — Economic and Operational Risks — *Labor Matters May Have a Material Negative Effect on Our Business and Results of Operations.*"

*Ticket Sales* 

Our business is subject to legislation governing the sale and resale of tickets and consumer protection statutes generally.

*Data and Privacy* 

We are subject to data privacy and protection laws, regulations, policies and contractual obligations that apply to the collection, transmission, storage, processing and use of personal information or personal data, which among other things, impose certain requirements relating to the privacy and security of personal information. The variety of laws and regulations governing data privacy and protection, and the use of the internet as a commercial medium are rapidly evolving, extensive and complex, and may include provisions and obligations that are inconsistent with one another or uncertain in their scope or application.

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The data protection landscape is rapidly evolving in the United States. For example, California passed a comprehensive data privacy law, the CCPA, and other states including Virginia and Colorado have also passed similar laws. Additionally, the CPRA imposed additional data protection obligations on covered businesses, including additional consumer rights procedures and obligations, limitations on data uses, new audit requirements for higher risk data, and constraints on certain uses of sensitive data. The majority of the CPRA provisions went into effect on January 1, 2023, and additional compliance investment and potential business process changes may be required. Further, there are several legislative proposals in the United States, at both the federal and state level, that could impose new privacy and security obligations.

In addition, governmental authorities and private litigants continue to bring actions against companies for online collection, use, dissemination and security practices that are unfair or deceptive.

*Website and Mobile Application Requirements* 

Our business is also subject to certain regulations applicable to our Internet websites and mobile applications. We maintain various websites and mobile applications that provide information and content regarding our business, offer merchandise and tickets for sale, make available sweepstakes and/or contests and offer hospitality services. The operation of these websites and applications may be subject to third-party application store requirements, as well as a range of federal, state and local laws including those related to privacy and protection of personal information, accessibility for persons with disabilities and consumer protection regulations. In addition, to the extent any of our websites seek to collect information from children under 13 years of age, they may be subject to the Children's Online Privacy Protection Act, which places restrictions on websites' and online services' collection and use of personally identifiable information online from children under age 13 without parental consent.

**Competition** 

Our business competes, in certain respects and to varying degrees, with other live performances, sporting events, movies, home entertainment (including the Internet and online services, social media and social networking platforms, television, video and gaming devices), and the large number of other entertainment and public attraction options available to members of the public. Our business typically represents alternative uses for the public's entertainment dollars. The primary geographic area in which we operate, New York City, is among the most competitive entertainment markets in the world, with the world's largest live theater industry and extensive performing arts venues, 12 major professional sports teams, numerous museums, galleries and other attractions, and numerous movie theaters available to the public. Our venues and live offerings outside of New York City similarly compete with other entertainment options in their respective markets and elsewhere. We compete with these other entertainment options on the basis of the quality of our offerings, the public's interest in our content and the price of our tickets.

We compete for bookings with a large number of other venues both in the cities in which our venues are located and in alternative locations capable of booking the same productions and events. Generally, we compete for bookings on the basis of the size, quality, expense and nature of the venue required for the booking. Some of our competitors may have a larger network of venues and/or greater financial resources.

In addition to competition for bookings and ticket sales, we also compete to varying degrees with other productions and sporting events for sponsorship dollars.

**Human Capital Resources** 

We believe the strength of our workforce is one of the significant contributors to our success. Our key human capital management objectives are to invest in and support our employees in order to attract, develop and retain a high performing and diverse workforce. ****

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***Diversity and Inclusion ("D&I")***

We aim to create an employee experience that fosters the Company's culture of respect and inclusion. By welcoming the diverse perspectives and experiences of our employees, we all share in the creation of a more vibrant, unified, and engaging place to work. To advance these efforts, we maintain a Diversity and Inclusion Council (the "D&I Council") comprised of employees from the Company, MSG Entertainment and MSG Sports who have demonstrated a high level of passion and commitment to diversity and inclusion.

Several D&I Council initiatives have furthered these objectives under the expanded Talent Management, Diversity and Inclusion function led by MSG Entertainment's VP, Talent Management and Chief Diversity Officer, including:

*Workforce: Embedding Diversity and Inclusion through Talent Actions* 

• Introduced bi-annual workforce demographic dashboards to the extended
management team and facilitated four diversity and inclusion content-specific working sessions to advise leaders on strategies to build and retain inclusive teams.

• Revisited our mandatory Inclusive Selection Training for managers and developed guidelines to de-bias talent review conversations with an aim to increase objectivity and consistency around leadership potential.

• Developed an Emerging Talent List to expand our talent pool to better identify and develop high performing
diverse talent for expanded roles and promotion opportunities.

*Workplace: Building an Inclusive and Accessible Community* 

• In fiscal year 2022, MSG Entertainment launched the MSG Diversity & Inclusion Heritage Month enterprise
calendar to acknowledge and celebrate culturally relevant days and months of recognition, anchored by our six employee resource groups: Asian Americans and Pacific Islanders (AAPI), Black, LatinX, PRIDE, Veterans, and Women. Viewership of D&I
related content on our internal employee communications portal by MSG Entertainment and MSG Sports personnel more than doubled year-over-year.

• Introduced a Paid Military Leave benefit to support our employees who are called to military service,
demonstrating our commitment to be a military-friendly employer.

• Launched our first employer-branded campaign, "We Are MSG", reflecting the values of the Company, MSG
Entertainment and MSG Sports and the diversity that unites our community. The first video, Faces of MSG, was publicly released on internal and external platforms, anchoring our careers website and LinkedIn page.

*Community: Bridging the Divide through Expansion to Diverse Stakeholders* 

• Focused on connecting with minority-owned businesses to increase the diversity of our vendors and suppliers by
leveraging employee resource groups and our community, which creates revenue generating opportunities for diverse suppliers to promote their businesses and products. In Fiscal Year 2022, MSG Entertainment and MSG Sports hosted the Black Fashion Pop-Up Shop and Pride Fest for Black and LGBTQ+ entrepreneurs, respectively.

• Invested in an external facing supplier diversity portal on our website, which we expect to launch in Fiscal Year
2023. The portal is intended to expand opportunities for MSG Entertainment to do business with diverse suppliers, including minority-, women-, LGBTQ+- and veteran-owned businesses.

• Strengthened our commitment to higher education institutions to increase campus recruitment pipelines. In
partnership with the Knicks and our social impact team, MSG Entertainment and MSG Sports hosted the 1st

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Annual Historically Black Colleges and Universities ("HBCU") Night highlighting the important contributions of these institutions. In partnership with Chase, MSG Entertainment and MSG Sports awarded a twenty-five-thousand-dollar scholarship to a Spelman College student. Additionally, we hosted HBCU SpringComing Innovation Lab for select HBCU alumni and students, leveraging their insights to strengthen our recruitment outreach strategy. We also partnered with select City University of New York students to host resume workshops curated and sponsored by the PRIDE employee resource group. <br>

***Talent***

As of December 31, 2022, we had approximately 970 full-time union and non-union employees and 6,021 part-time union and non-union employees.

We aim to attract top talent through our prestigious brands and venues, as well as through the many benefits we offer. We aim to retain and develop our talent by emphasizing our competitive rewards, offering opportunities that support employees both personally and professionally, and our commitment to fostering career development in a positive corporate culture.

Our performance management practice includes ongoing feedback and conversations between managers and team members, and talent reviews designed to identify potential future leaders and inform succession plans. We value continuous learning and development opportunities for our employees, which include a career development tool, leadership development programs, a learning platform, and tuition assistance.

Our benefit offerings are designed to meet the range of needs of our diverse workforce and include: domestic partner coverage, an employee assistance program which also provides assistance with child and elder care resources, legal support, pet insurance, wellness programs and financial planning seminars. These resources are intended to support the physical, emotional and financial well-being of our employees.

As of December 31, 2022, approximately 4,900 full-time and part-time employees, who represent approximately 70% of the Company's workforce, were subject to CBAs. Approximately 3% were subject to CBAs that expired as of December 31, 2022 and approximately 38% were subject to CBAs that will expire by June 30, 2023, if they are not extended prior thereto. Labor relations can be volatile, though our current relationships with our unions taken as a whole are positive. We have from time to time faced labor action or had to make contingency plans because of threatened or potential labor actions.

***COVID-19***

The health and safety of our employees, contractors, performing artists, athletes and guests at our venues is our top priority. In response to COVID-19, measures were taken to ensure that health and safety protocols were in place and enforced throughout our offices and our venues, to the extent applicable. We also supported our employees through our relief fund, wellness programming and remote working capabilities. At times this included capacity restrictions and social distancing and vaccination and mask requirements. Although these policies are not currently required, we continue to monitor the evolving risks related to COVID-19 so that we can reintroduce these or other policies as needed. We believe we have been able to resume our business operations without sacrificing this commitment to keeping our employees and contractors safe while working on-site.

**Properties** 

We own the Madison Square Garden Complex, which includes The Garden (with a maximum capacity of approximately 21,000 seats) and The Theater at Madison Square Garden (approximately 5,600 seats) in New York City, comprising approximately 1,100,000 square feet; and The Chicago Theatre (approximately 3,600 seats) in Chicago comprising approximately 72,600 square feet.

Significant properties that are leased in New York City include approximately 373,000 square feet housing Madison Square Garden Entertainment Corp.'s administrative and executive offices with approximately 47,000

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square feet of space that is subleased to MSG Sports, approximately 577,000 square feet comprising Radio City Music Hall (approximately 6,000 seats) and approximately 57,000 square feet comprising the Beacon Theatre (approximately 2,800 seats). For more information on our venues, see "— Our Business — Our Venues."

Our Madison Square Garden Complex is subject to and benefits from various easements, including over the "breezeway" into Madison Square Garden from Seventh Avenue in New York City (which we share with other property owners). Our ability to continue to utilize easements requires us to comply with certain conditions. Moreover, certain adjoining property owners have easements over our property, which we are required to maintain so long as those property owners meet certain conditions.

**Legal Proceedings** 

Fifteen complaints were filed in connection with MSG Entertainment's acquisition of MSG Networks Inc. (the "Networks Merger") by purported stockholders of MSG Entertainment and MSG Networks Inc. Nine of these complaints involved allegations of materially incomplete and misleading information set forth in the joint proxy statement/prospectus filed by MSG Entertainment and MSG Networks Inc. in connection with the Networks Merger. These disclosure actions were subsequently voluntarily dismissed with prejudice. Six complaints involved allegations of fiduciary breaches in connection with the negotiation and approval of the Networks Merger and have since been consolidated into two remaining litigations. MSG Entertainment and MSG Networks Inc. will retain all rights and obligations with respect to these claims, as applicable, and MSG Entertainment will indemnify the Company from and release the Company from all present and future costs, expenses, and liabilities, if any, related to these claims.

The Company is a defendant in various lawsuits. Although the outcome of these lawsuits cannot be predicted with certainty (including the extent of available insurance, if any), management does not believe that resolution of these lawsuits will have a material adverse effect on the Company.

**Financial Information about Geographic Areas** 

All revenues and assets of the Company are attributed to or located in the United States. A majority of the Company's revenues and assets are concentrated in the New York City metropolitan area.

**Emerging Growth Company Status**

We are an "emerging growth company," as defined in the JOBS Act and we are eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies." These exemptions generally include, but are not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Although we are still evaluating the JOBS Act, we may take advantage of some or all of the reduced regulatory and reporting requirements that will be available to us as long as we qualify as an emerging growth company, except that we have irrevocably elected not to take advantage of the extension of time to comply with new or revised financial accounting standards available under Section 102(b) of the JOBS Act.

We will, in general, remain as an emerging growth company for up to five full fiscal years following the Distribution. We would cease to be an emerging growth company and, therefore, become ineligible to rely on the above exemptions, if we:

• have more than $1.235 billion in annual revenue in a fiscal year;

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• issue more than $1 billion of non-convertible debt during the preceding three-year period; or

• become a "large accelerated filer" as defined in Exchange Act Rule 12b-2, which would occur after:
(i) we have filed at least one annual report pursuant to the Exchange Act; (ii) we have been an SEC-reporting company for at least 12 months; and (iii) the market value of our common stock that is held by
non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter.

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**DIVIDEND POLICY** 

We do not expect to pay any cash dividends on our common stock in the foreseeable future. All decisions regarding the payment of dividends will be made by our Board of Directors from time to time in accordance with applicable law.

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**UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION** 

All amounts included in the Unaudited Pro Forma Condensed Combined Financial Information are presented in thousands, except per share data or as otherwise noted.

On December 6, 2022, the board of directors of Madison Square Garden Entertainment Corp. ("MSG Entertainment") authorized MSG Entertainment management to explore a potential tax-free spin-off of the traditional live entertainment business from the MSG Sphere, MSG Networks, and Tao Group Hospitality businesses.

MSGE Spinco, Inc. ("we", "us", "our", "Spinco" or the "Company") was incorporated in the state of Delaware on September 15, 2022 to be the company to hold the traditional live entertainment business of MSG Entertainment. In the first step of the transaction, record holders of MSG Entertainment Class A and Class B common stock would receive a pro-rata distribution expected to be equivalent, in the aggregate, to approximately 67% of the economic interest in the Company (the "Distribution"). The remaining approximately 33% economic interest in the Company would be retained by MSG Entertainment, subject to completion of the Distribution. These transfers to us by MSG Entertainment are treated as a contribution to our capital at MSG Entertainment's historical cost.

The following unaudited pro forma condensed combined balance sheet as of December 31, 2022 and the unaudited pro forma condensed combined statements of operations for the six months ended December 31, 2022 and the year ended June 30, 2022 have been derived from the historical annual and interim combined financial statements of the Company, including the unaudited condensed combined balance sheet as of December 31, 2022, the unaudited condensed combined statement of operations for the six months ended December 31, 2022, and the audited combined statement of operations for the year ended June 30, 2022, included elsewhere in this information statement. The unaudited pro forma condensed combined financial information presented below should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our historical annual and interim combined financial statements and corresponding notes thereto included elsewhere in this information statement. The unaudited pro forma combined financial information reflects certain known impacts as a result of the Distribution to separate the Company from MSG Entertainment.

The following unaudited pro forma condensed combined financial information gives effect to the Distribution and related adjustments in accordance with Article 11 of Regulation S-X under the Exchange Act.

The unaudited pro forma condensed combined balance sheet has been prepared giving effect to the Distribution as if this transaction had occurred as of December 31, 2022. The unaudited pro forma condensed combined statements of operations have been prepared giving effect to the Distribution as if this transaction had occurred on July 1, 2021. The unaudited pro forma condensed combined financial information also reflects certain assumptions that we believe are reasonable given the information currently available.

The unaudited pro forma condensed combined balance sheet as of December 31, 2022 and the unaudited pro forma condensed combined statements of operations for the six months ended December 31, 2022 and the year ended June 30, 2022, respectively, have been prepared to reflect transaction accounting and autonomous entity adjustments to the Company's historical combined financial statements to present the financial condition and results of operations as if we were a separate stand-alone entity. The unaudited pro forma condensed combined financial information has been adjusted to give effect to the following items (collectively, the "Pro Forma Adjustments"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjustments for differences between the historical combined balance sheet prepared on a carve-out basis and assets and liabilities expected to be transferred between MSG Entertainment and the Company. Adjustments also give effect to the related impacts to the unaudited pro forma condensed combined
statements of operations;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The distribution of approximately 67% of the Company's issued and outstanding common stock by MSG
Entertainment in connection with the Distribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The impact of transactions contemplated by the Transition Services Agreement (the "TSA");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The impact of and transactions contemplated by other contracts entered into between MSG Entertainment and the
Company at the time of Distribution, such as the Employee Matters Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other adjustments as described in the notes to this unaudited pro forma condensed combined financial information;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Income tax impacts of the adjustments described above.

In preparing the pro forma condensed combined financial information, we did not include adjustments for the following item:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's historical combined financial statements reflect net operating loss ("NOL")
carryforwards calculated on a separate return basis. These NOL carryforwards were calculated as if the Company operated as a separate stand-alone entity for the periods presented in the historical annual and interim combined financial statements of
the Company included elsewhere in this Information Statement. Because the Distribution involves a spin-off of the Company, these NOLs do not carry over to the Company in connection with the reorganization
transactions related to the Distribution. Historically, amounts that we collected for sponsorships and suite rentals in advance were recorded as deferred revenue and were recognized as revenues when earned for both accounting and tax purposes. In
connection with the reorganization transactions related to the Distribution, the tax recognition for certain of these deferred revenues will be accelerated to the date of the Distribution, rather than recognized over the course of one year. Assuming
the Distribution occurred on December 31, 2022, the estimated tax on the acceleration of such deferred revenue is 58,000. Such tax will be the responsibility of MSG Entertainment, however MSG Entertainment will fully offset the deferred revenue
income with their NOLs. The Company will not reimburse MSG Entertainment for such taxes. This one-time benefit will not recur in the future.

Our historical combined financial statements, which were the basis for the unaudited pro forma condensed combined financial information, were prepared on a carve-out basis as we did not operate as a stand-alone entity for the periods presented. As part of the Distribution, certain corporate and operational support functions are being transferred to the Company and therefore, allocations of corporate overhead and shared services expense to MSG Entertainment from the Company were recorded for corporate and operational functions as a reduction of either direct operating expenses or selling, general and administrative expense in the historical combined financial statements. The allocations and estimates in such historical financial statements are based on assumptions that management believes are reasonable. See Note 1, "Description of the Business and Basis of Presentation", Note 19, "Related Party Transactions" to the audited combined financial statements included elsewhere in this Information Statement for further information on the allocation of corporate costs.

We expect to experience changes in our ongoing cost structure when we become an independent, publicly-traded company. Our historical combined financial statements include allocations of certain corporate expenses to MSG Entertainment, including certain public company costs incurred as a combined entity, of $73,967 for the six months ended December 31, 2022 and $161,189 for the year ended June 30, 2022. Following the Distribution, the Company will bear substantially all corporate overhead and support costs, including amounts previously allocated to MSG Entertainment. The Company will continue to provide support services to MSG Entertainment pursuant to the TSA. Payments received by the Company for transition services provided will be presented as a reduction of direct operating expense or selling, general and administrative expense. Refer to note (f) for further details related to the pro forma impact of these adjustments.

As discussed above, the costs to operate our business as an independent public entity are expected to vary from the historical allocations, including corporate and administrative charges from MSG Entertainment for the

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six months ended December 31, 2022 and for the year ended June 30, 2022 reflected in the accompanying historical annual and interim combined financial statements included elsewhere within this information statement. The accompanying unaudited pro forma condensed combined statements of operations are not adjusted for these expenses as many of the costs are estimates based on projections and are not quantifiable at this time. Such costs principally relate to areas that include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• corporate personnel overhead expenses as a result of the Company operating on a stand-alone basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• professional fees associated with internal and external audits including compliance with Sarbanes-Oxley Act of
2002, tax, legal and other services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• anticipated executive compensation costs related to existing and new executive management and excluding future
share-based compensation expense; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• stock market listing fees, investor relations costs and fees for preparing and distributing periodic filings with
the SEC.

This unaudited pro forma condensed combined financial information reflects other adjustments that, in the opinion of management, are necessary to present fairly the pro forma condensed combined results of operations and combined financial position of the Company as of and for the periods indicated. The unaudited pro forma condensed combined financial information is subject to the assumptions and adjustments described in the accompanying notes. This unaudited pro forma condensed combined financial information is subject to change as MSG Entertainment and the Company finalize the terms of the separation and distribution agreement and other agreements and transactions related to the separation. The unaudited pro forma condensed combined financial information is for illustrative and informational purposes only and is not intended to represent or be indicative of what our financial condition or results of operations would have been had the Company operated historically as a company independent of MSG Entertainment, or if the Distribution had occurred on the dates indicated. The unaudited pro forma condensed combined financial information also should not be considered representative of our future condensed combined financial condition or combined results of operations.

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**MSG ENTERTAINMENT SPINCO, INC.** 

**UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET** 

**As of December 31, 2022 (in thousands)** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Historical<br>Spinco <sup>(a)</sup>** | **Transaction<br>Accounting<br>Adjustments** | **Notes** | **Autonomous<br>Entity<br>Adjustments** | **Pro Forma** |
|  **ASSETS** |  |  |  |  |  |
|  Current Assets: |  |  |  |  |  |
|  Cash, cash equivalents and restricted cash | $153746 | $(103746) | (b) | $— | $50000 |
|  Accounts receivable, net | 100820 |  |  |  | 100820 |
|  Related party receivables, current | 95064 | (52513) | (c) | 6145 (g) | 48696 |
|  Prepaid expenses and other current assets | 69686 |  |  |  | 69686 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 419316 | (156259) |  | 6145 | 269202 |
|  Property and equipment, net | 649962 |  |  |  | 649962 |
|  Right-of-use lease assets | 255024 |  |  |  | 255024 |
|  Goodwill | 69041 |  |  |  | 69041 |
|  Intangible assets, net | 63801 |  |  |  | 63801 |
|  Other non-current assets | 91817 |  |  |  | 91817 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $1548961 | $(156259) |  | $6145 | $1398847 |
|  **LIABILITIES AND DIVISIONAL EQUITY (DEFICIT)** | **LIABILITIES AND DIVISIONAL EQUITY (DEFICIT)** |  |  |  |  |
|  Current Liabilities: |  |  |  |  |  |
|  Accounts payable, accrued and other current liabilities | $176287 | $— |  | $— | $176287 |
|  Related party payables, current | 70379 |  |  |  | 70379 |
|  Current portion of long-term debt | 16250 |  |  |  | 16250 |
|  Operating lease liabilities, current | 36623 |  |  |  | 36623 |
|  Deferred revenue | 188842 |  |  |  | 188842 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 488381 |  |  |  | 488381 |
|  Long-term debt, net of deferred financing costs | 648397 |  |  |  | 648397 |
|  Operating lease liabilities, non-current | 238015 |  |  |  | 238015 |
|  Deferred tax liabilities, net | 23386 |  |  |  | 23386 |
|  Other non-current liabilities | 51893 |  |  |  | 51893 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 1450072 |  |  |  | 1450072 |
|  Commitments and contingencies |  |  |  |  |  |
|  Spinco Divisional Equity (Deficit): |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MSG Entertainment investment | 133018 | (133018) | (d) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A Common Stock |  | 447 | (d) |  | 447 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B Common Stock |  | 69 | (d) |  | 69 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit |  | (23757) | (b), (c), (d) | 6145 (g) | (17612) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (34129) |  |  |  | (34129) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Spinco divisional equity (deficit) | 98889 | (156259) |  | 6145 | (51225) |
|  Nonredeemable noncontrolling interest |  |  |  |  |  |
|  Total liabilities and divisional equity (deficit) | $1548961 | $(156259) |  | $6145 | $1398847 |

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**MSG ENTERTAINMENT SPINCO, INC.** 

**UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS** 

**For the Six Months Ended December 31, 2022** 

**(in thousands, except per share data)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Historical<br>Spinco <sup>(a)</sup>** | **Transaction<br>Accounting<br>Adjustments** | **Autonomous<br>Entity<br>Adjustments** | **Pro Forma** |
|  Revenues | $502332 | $— | $— | $502332 |
|  Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct operating expenses | 282265 |  | 1145 (f) | 283410 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selling, general and administrative expenses | 83415 |  | 24143 (f) | 107558 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 31571 |  |  | 31571 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains, net on dispositions | (4412) |  |  | (4412) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring charges | 7359 |  |  | 7359 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating income (loss) | 102134 |  | (25288) | 76846 |
|  Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income | 3322 | (1804) (c) |  | 1518 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (24632) |  |  | (24632) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other income (expense), net | (1286) |  |  | (1286) |
|  | (22596) | (1804) |  | (24400) |
|  Income (loss) from operations before income taxes | 79538 | (1804) | (25288) | 52446 |
|  Income tax (expense) benefit | (731) | 54 (e) | 697 (h) | 20 |
|  Net income (loss) | 78807 | (1750) | (24591) | 52466 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Net loss attributable to nonredeemable noncontrolling interest | (553) |  |  | (553) |
|  Net income (loss) attributable to Spinco's stockholders | $79360 | $(1750) | $(24591) | $53019 |
|  Pro Forma earnings per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic |  |  | (i) | $1.03 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted |  |  | (i) | $1.03 |
|  Pro forma weighted-average common shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic |  |  | (i) | 51558 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted |  |  | (i) | 51624 |

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##### [**Table of Contents**](#toc)
**MSG ENTERTAINMENT SPINCO, INC.** 

**UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS** 

**For the Year Ended June 30, 2022** 

**(in thousands, except per share data)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Historical<br>Spinco <sup>(a)</sup>** | **Transaction<br>Accounting<br>Adjustments** | **Notes** | **Autonomous<br>Entity<br>Adjustments** | **Notes** | **Pro Forma** |
|  Revenues | $653490 | $— |  | $— |  | $653490 |
|  Operating expenses: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct operating expenses | 417301 |  |  | 2514 | (f) | 419815 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selling, general and administrative expenses | 167132 |  |  | 62000 | (f) | 229132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 69534 |  |  |  |  | 69534 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on disposal of assets held for sale and associated settlements |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring charges | 5171 |  |  |  |  | 5171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating income (loss) | (5648) |  |  | (64514) |  | (70162) |
|  Other income (expense): |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income | 7150 | (2117) | (c) |  |  | 5033 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (53110) |  |  |  |  | (53110) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt | (35629) |  |  |  |  | (35629) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other income (expense), net | (49033) |  |  |  |  | (49033) |
|  | (130622) | (2117) |  |  |  | (132739) |
|  Income (loss) from operations before income taxes | (136270) | (2117) |  | (64514) |  | (202901) |
|  Income tax (expense) benefit | 70 |  | (e) |  | (h) | 70 |
|  Net income (loss) | (136200) | (2117) |  | (64514) |  | (202831) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Net loss attributable to nonredeemable noncontrolling interest | (2864) |  |  |  |  | (2864) |
|  Net income (loss) attributable to Spinco's stockholders | $(133336) | $(2117) |  | $(64514) |  | $(199967) |
|  Pro Forma earnings per share: |  |  |  |  |  |  |
|  Basic |  |  |  |  | (i) | $(3.91) |
|  Diluted |  |  |  |  | (i) | $(3.91) |
|  Pro forma weighted-average common shares outstanding: |  |  |  |  |  |  |
|  Basic |  |  |  |  | (i) | 51127 |
|  Diluted |  |  |  |  | (i) | 51127 |

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##### [**Table of Contents**](#toc)
**NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION** 

(a) Represents Spinco's unaudited condensed combined balance sheet as of December 31, 2022, unaudited
condensed combined statement of operations for the six months ended December 31, 2022 and audited combined statement of operations for the year ended June 30, 2022.

**Adjustments Related to the Distribution Transaction:** 

(b) Adjustment reflects assets attributed to Spinco in the historical condensed combined balance sheet as of
December 31, 2022 that will not be transferred from MSG Entertainment to Spinco in connection with the Distribution. To reflect this impact, an adjustment to Cash, cash equivalents and restricted cash of $103,746 was recorded. Refer to Note 1.
Description of Business and Basis of Presentation of our annual historical audited combined financial statements for further discussion of the Company's attribution of assets and liabilities.

(c) Adjustment reflects the transfer from MSG Entertainment to Spinco of the loan payable to the Company's
wholly-owned captive insurance subsidiary, Eden Insurance Company Inc. ("Eden"), which will occur prior to the Distribution. This results in a reduction of Spinco's loan receivable from MSG Entertainment of $52,513. The unaudited pro
forma condensed combined statements of operations reflect an adjustment of $1,804 and $2,117 to reflect the removal of interest income related to the aforementioned loan receivable from MSG Entertainment for the six months ended December 31,
2022 and for the year ended June 30, 2022, respectively.

(d) Adjustment reflects the pro forma recapitalization of our equity. As of the Distribution date, MSG
Entertainment's net investment in the Company will be distributed to MSG Entertainment's stockholders through the distribution of approximately 67% of Spinco's common stock with the remaining approximately 33% held by MSG
Entertainment as a retained interest. As the unaudited pro forma condensed combined financial information are presented for the Company on a standalone basis, the entire balance of historical MSG Entertainment investment has been recorded as common
stock and accumulated deficit, respectively, as a result of this adjustment. The par value of Spinco's stock was recognized as a component of common stock, with the remaining balance recorded as accumulated deficit in the unaudited pro forma
condensed combined balance sheet as of December 31, 2022.

Common stock reflects approximately 44.7 million shares of Class A Common Stock, par value $0.01 per share, and approximately 6.9 million shares of Class B Common Stock, par value $0.01 per share. The number of shares of common stock assumes each MSG Entertainment Class A and Class B common stockholder will receive one Spinco Class A or Class B common share for each MSG Entertainment Class A or Class B common share held on the record date for the Distribution. We expect approximately 33% of our common stock to be owned by MSG Entertainment immediately following the spin-off, representing approximately 1.5 shares of Spinco for every 1 outstanding share of MSG Entertainment.

This adjustment is based on MSG Entertainment's December 31, 2022 issued and outstanding Class A and Class B common shares, although the actual number of shares issued will not be known until the record date for the Distribution. The adjustments to accumulated deficit including assets transferred between MSG Entertainment and Spinco as described in notes (b) and (c) are summarized below:

---

| | |
|:---|:---|
|  | **($ in thousands)** |
|  Reduction of Cash, cash equivalents and restricted cash <sup>(b)</sup> | $103746 |
|  Elimination of loan receivable from MSG Entertainment <sup>(c)</sup> | 52513 |
|  Recapitalization of MSG Entertainment investment <sup>(d)</sup> | (133018) |
|  Establishment of Class A Common Stock <sup>(d)</sup> | 447 |
|  Establishment of Class B Common Stock <sup>(d)</sup> | 69 |
|  Accumulated deficit | $23757 |

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(e) The income tax effects of the pro forma adjustments are fully offset by the valuation allowance for the year
ended June 30, 2022.

The income tax effects of the pro forma adjustments are recorded at the applicable federal statutory tax rate for the six months ended December 31, 2022, net of adjustments to the Company's valuation allowance and the limitation on the utilization of net operating loss carryforwards. This resulted in an overall tax benefit of $54 for the six months ended December 31, 2022 on the unaudited pro forma condensed combined statement of operations.

**Autonomous Entity Adjustments:** 

(f) Reflects the impact of the TSA and related agreements entered into in connection with the Distribution, which
resulted in incremental corporate and administrative costs not included in the Company's historical combined financial statements.

Following the Distribution, the Company will bear substantially all corporate overhead and support costs, including amounts previously charged back to MSG Entertainment. The Company will continue to provide support services to MSG Entertainment pursuant to the TSA. Payments received by the Company for transition services provided will be presented as a reduction of direct operating expenses or selling, general, and administrative expenses. The adjustment was derived by comparing contractual payments required by the TSA and related agreements to amounts historically allocated by the Company to MSG Entertainment on the basis of direct usage when identifiable, with the remainder allocated on a pro rata basis of certain measures of the Company or MSG Entertainment in the Company's historical combined financial statements.

(g) Adjustment reflects the effect of the Employee Matters Agreement, which entitles the Company to receive
reimbursement for services provided to MSG Entertainment prior to the Distribution. An adjustment of $6,145 was recorded to recognize a Net receivable balance from MSG Entertainment to the Company in the unaudited pro forma condensed combined
balance sheet as of December 31, 2022.

(h) The income tax effects of the pro forma adjustments are fully offset by the valuation allowance for the year
ended June 30, 2022.

The income tax effects of the pro forma adjustments are recorded at the applicable federal statutory tax rate for the six months ended December 31, 2022, net of adjustments to the Company's valuation allowance and the limitation on the utilization of net operating loss carryforwards. This resulted in an overall tax benefit of $697 for the six months ended December 31, 2022 on the unaudited pro forma condensed combined statement of operations.

**Earnings (Loss) Per Share:** 

(i) Pro forma earnings per share and pro forma weighted-average basic shares outstanding are based on the
weighted-average number of shares of MSG Entertainment Class A Common Stock and MSG Entertainment Class B Common Stock outstanding of 51.6 million during the six months ended December 31, 2022 and 51.1 million during the
year ended June 30, 2022. Spinco's weighted average shares outstanding assumes a distribution ratio of one share of our common stock for each share of MSG Entertainment Class A Common Stock and MSG Entertainment Class B Common
Stock held on the record date of the Distribution for the approximately 67% to be distributed to shareholders. In addition, the approximately 33% interest in the outstanding shares of our common stock that will be owned by MSG Entertainment at the
time of the spin-off is reflected in the weighted-average share counts presented herein. As a result, the Company's pro forma weighted-average basic shares outstanding, after giving effect to the
Distribution and the approximately 33% retained interest held by MSG Entertainment, represents approximately 1.5 shares of Spinco for every 1 outstanding share of MSG Entertainment.

Pro forma diluted weighted-average shares outstanding reflect potential dilution from the issuance of Spinco common shares from MSG Entertainment equity plans, giving effect to the distribution ratio and conversion

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of certain MSG Entertainment equity awards into Spinco equity awards. Potentially dilutive shares for the unaudited pro forma condensed combined statements of operations for the year ended June 30, 2022 are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. While the actual impact on a go-forward basis will depend on various factors, including employees who may change employment from one company to another, we believe the estimate provided yields a reasonable approximation of the dilutive impact of MSG Entertainment equity plans. We expect that the actual amounts will differ from these estimates.

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**MANAGEMENT'S DISCUSSION AND ANALYSIS OF** 

**FINANCIAL CONDITION AND RESULTS OF OPERATIONS** 

*This Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In this MD&A, there are statements concerning the future operating and future financial performance of Spinco, including our potential spin-off from MSG Entertainment, and the impact of the COVID-19 pandemic and COVID-19 variants on our future operations. Words such as "expects," "anticipates," "believes," "estimates," "may," "will," "should," "could," "potential," "continue," "intends," "plans," and similar words and terms used in the discussion of future operating and future financial performance identify forward-looking statements. Investors are cautioned that such forward-looking statements are not guarantees of future performance, results or events and involve risks and uncertainties and that actual results or developments may differ materially from the forward-looking statements as a result of various factors. References to "Spinco" or the "Company" include the subsidiaries of MSG Entertainment that will be subsidiaries of the Company at the time of the Distribution. Factors that may cause such differences to occur include, but are not limited to:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the level of our expenses, including our corporate expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the level of our revenues, which depends in part on the popularity of the *Christmas Spectacular*, the
sports teams whose games are played at The Garden, and other events which are presented in our venues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to effectively manage any impacts of the COVID-19 pandemic
(including COVID-19 variants) as well as renewed actions taken in response by governmental authorities or certain professional sports leagues, including ensuring compliance with rules and regulations imposed
upon our venues, to the extent applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effect of any postponements or cancellations by third-parties or the Company as a result of the COVID-19 pandemic due to operational challenges and other health and safety concerns (such as the partial cancellation of the 2021 production of the *Christmas Spectacular*);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the extent to which attendance at our venues may be impacted by government actions, continuing health concerns by
potential attendees and reduced tourism;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact on the payments we receive under the Arena License Agreements as a result of government-mandated
capacity restrictions, league restrictions and/or social-distancing or vaccination requirements, if any, at games of the Knicks of the NBA and the Rangers of the NHL;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• lack of operating history as a stand-alone public company and costs associated with being an independent public
company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the on-ice and on-court performance of the professional sports teams whose games we host in our venues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the level of our capital expenditures and other investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic conditions, especially in the New York City and Chicago metropolitan areas where we have
business activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the demand for sponsorship arrangements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• competition, for example, from other venues and sports and entertainment options, including new competing venues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in laws, guidelines, bulletins, directives, policies and agreements, and regulations under which we
operate;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any economic, social or political actions, such as boycotts, protests, work stoppages or campaigns by labor
organizations, including the unions representing players and officials of the NBA and NHL, or other work stoppage due to COVID-19 or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• seasonal fluctuations and other variations in our operating results and cash flow from period to period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the successful development of new live productions, enhancements or changes to existing productions and the
investments associated with such development, enhancements, or changes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• business, reputational and litigation risk if there is a cyber or other security incident resulting in loss,
disclosure or misappropriation of stored personal information, or disclosure of confidential information or other breaches of our information security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• activities or other developments (such as pandemics, including the COVID-19 pandemic) that discourage or may discourage congregation at prominent places of public assembly, including our venues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the acquisition or disposition of assets or businesses and/or the impact of, and our ability to successfully
pursue, acquisitions or other strategic transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to successfully integrate acquisitions, new venues or new businesses into our operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our internal control environment and our ability to identify and remedy any future material weaknesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the costs associated with, and the outcome of, litigation and other proceedings to the extent uninsured,
including litigation or other claims against companies we invest in or acquire;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of governmental regulations or laws, changes in how those regulations and laws are interpreted, as
well as the continued benefit of certain tax exemptions and the ability to maintain necessary permits or licenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of any government plans to redesign New York City's Penn Station;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of sports league rules, regulations and/or agreements and changes thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the substantial amount of debt incurred, the ability of our subsidiaries to make payments on, or repay or
refinance, such debt under the National Properties Credit Agreement and our ability to obtain additional financing, to the extent required;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• financial community perceptions of our business, operations, financial condition and the industries in which we
operate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the performance by MSG Sports of its obligations under various agreements with the Company and ongoing commercial
arrangements, including the Arena License Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the tax-free treatment of the Distribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to achieve the intended benefits of the Distribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure of the Company or MSG Entertainment to satisfy its obligations under transition services agreements or
other agreements entered into in connection with the Distribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our status as an emerging growth company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the additional factors described under "Risk Factors" in this information statement.

We disclaim any obligation to update or revise the forward-looking statements contained herein, except as otherwise required by applicable federal securities laws.

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**All dollar amounts included in the following MD&A are presented in thousands, except as otherwise noted.** 

**Introduction** 

This MD&A is provided as a supplement to, and should be read in conjunction with the Company's combined financial statements as of December 31, 2022 (unaudited) and June 30, 2022, and for the six months ended December 31, 2022 and 2021 (unaudited) and footnotes thereto ("Unaudited Combined Interim Financial Statements") and the Company's combined financial statements as of June 30, 2022 and 2021 and for the three years ended June 30, 2022, 2021, and 2020 and footnotes thereto ("Audited Combined Annual Financial Statements") included elsewhere in this information statement to help provide an understanding of our financial condition, changes in financial condition and results of operations. The information included in this MD&A should also be read in conjunction with the financial data set forth under the pro forma condensed combined financial information. See "Unaudited Pro Forma Condensed Combined Financial Information" for further details. The Company reports on a fiscal year basis ending on June 30<sup>th</sup> ("Fiscal Year"). In this MD&A, the years ended on June 30, 2023, 2022, 2021 and 2020 are referred to as "Fiscal Year 2023", "Fiscal Year 2022", "Fiscal Year 2021", and "Fiscal Year 2020", respectively.

Our MD&A is organized as follows:

*Proposed Distribution and Basis of Presentation*. This section provides a general description of the proposed spin-off that would separate the traditional live entertainment business from the MSG Sphere, MSG Networks, and Tao Group Hospitality businesses of MSG Entertainment.

*Business Overview.* This section provides a general description of our business, as well as other matters that we believe are important in understanding our results of operations and financial condition and in anticipating future trends.

*Results of Operations.* This section provides an analysis of our results of operations for the six months ended December 31, 2022 and 2021, and for Fiscal Years 2022, 2021, and 2020 on a combined basis.

*Liquidity and Capital Resources.* This section provides a discussion of our financial condition and liquidity, as well as an analysis of our cash flows for the six months ended December 31, 2022 and 2021, and Fiscal Years 2022, 2021, and 2020. The discussion of our financial condition and liquidity includes summaries of our primary sources of liquidity, our contractual obligations and off-balance sheet arrangements that existed at December 31, 2022 and June 30, 2022.

*Seasonality of Our Business.* This section discusses the seasonal performance of our business.

*Recently Issued Accounting Pronouncements and Critical Accounting Estimates.* This section cross-references a discussion of accounting policies considered to be important to our financial condition and results of operations and which require significant judgment and estimates on the part of management in their application*.* In addition, all of our significant accounting policies, including our critical accounting policies and recently issued accounting pronouncements, are discussed in the notes to our combined financial statements included elsewhere in this information statement.

**Proposed Distribution and Basis of Presentation** 

On December 6, 2022, the board of directors of Madison Square Garden Entertainment Corp. ("MSG Entertainment") authorized MSG Entertainment management to explore a potential tax-free spin-off of the traditional live entertainment business from the MSG Sphere, MSG Networks, and Tao Group Hospitality businesses, and approved the filing of a Form 10 registration statement and amendments thereto.

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MSGE Spinco, Inc. was incorporated in the state of Delaware on September 15, 2022 to be the company to hold the traditional live entertainment business of MSG Entertainment. The spin-off is expected to be completed through a tax-free pro rata distribution of approximately 67% of the common stock of the Company to MSG Entertainment stockholders (the "Distribution"). The remaining approximately 33% economic interest in the Company would be retained by MSG Entertainment, subject to completion of the Distribution. MSG Entertainment is required by applicable tax rules to dispose of the retained interest within a fixed period of time, which may occur through a series of steps including sales, exchange offers or pro rata distributions. MSG Entertainment expects to dispose of such retained shares within one year of the date of the Distribution, subject to market conditions.

Completion of the Distribution is subject to various conditions, including final approval by the board of directors of MSG Entertainment, receipt of a tax opinion from counsel and the filing and effectiveness of the registration statement with the SEC.

The combined financial statements of the Company were prepared on a stand-alone basis derived from the consolidated financial statements and accounting records of MSG Entertainment. These financial statements reflect the combined historical results of operations, financial position and cash flows of the Company in accordance with U.S. generally accepted accounting principles ("GAAP") and SEC Staff Accounting Bulletin Topic 1-B, *Allocation of Expenses and Related Disclosure in Financial Statements of Subsidiaries, Divisions or Lesser Business Components of Another Entity*. References to U.S. GAAP issued by the Financial Accounting Standards Board ("FASB") in this MD&A are to the *FASB Accounting Standards Codification,* also referred to as "ASC."

Historically, separate financial statements have not been prepared for the Company and it has not operated as a stand-alone business from MSG Entertainment. The combined financial statements include certain assets and liabilities that have historically been held by MSG Entertainment or by other MSG Entertainment subsidiaries but are specifically identifiable or otherwise attributable to the Company. The combined financial statements are presented as if the Company's businesses had been combined for all periods presented. The assets and liabilities in the combined financial statements have been reflected on a historical cost basis, as immediately prior to the Distribution of all of the assets and liabilities presented are wholly owned by MSG Entertainment and are being transferred to the Company at a carry-over basis.

Fiscal Year 2020 includes additional carve-out allocations as the combined financial statements for the period from July 1, 2019 to April 17, 2020 were prepared on a stand-alone basis derived from the consolidated financial statements and accounting records of MSG Sports. This was a result of a distribution of all the outstanding common stock of MSG Entertainment to MSG Sports stockholders (referred herein as the "2020 Entertainment Distribution").

All significant intracompany accounts and balances within the Company's combined businesses have been eliminated. Certain historical intercompany transactions between MSG Entertainment and the Company have been included as components of MSG Entertainment investment in the combined financial statements, as they are to be considered effectively settled upon effectiveness of the Distribution and were not historically settled in cash. Certain other historical intercompany transactions between MSG Entertainment and the Company have been classified as related party, rather than intercompany, in the combined financial statements as they were historically settled in cash. See Note 14, Related Party Transactions to the Unaudited Combined Interim Financial Statements, and Note 19, Related Party Transactions to the Audited Combined Annual Financial Statements included elsewhere in this information statement for additional information.

The combined statements of operations include allocations for certain support functions that are provided on a centralized basis and not historically recorded at the business unit level by MSG Entertainment, such as expenses related to executive management, finance, legal, human resources, government affairs, and information technology among others. As part of the Distribution, certain corporate and operational support functions are

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being transferred to Spinco and therefore, charges were reflected in order to properly burden all business units comprising MSG Entertainment's historical operations. These expenses have been allocated to MSG Entertainment on the basis of direct usage when identifiable, with the remainder allocated on a pro-rata basis of combined assets, headcount or other measures of Spinco or MSG Entertainment, which is recorded as a reduction of either direct operating expenses or selling, general & administrative ("SG&A") expense. See Note 14, Related Party Transactions to the Unaudited Combined Interim Financial Statements, and Note 19, Related Party Transactions to the Audited Combined Annual Financial Statements included elsewhere in this information statement for additional information.

Management believes the assumptions underlying the combined financial statements, including the assumptions regarding allocating general corporate expenses, are reasonable. Nevertheless, the combined financial statements may not include all of the actual expenses that would have been incurred by the Company and may not reflect its combined results of operations, financial position and cash flows had it been a stand-alone company during the periods presented. Actual costs that would have been incurred if the Company had been a stand-alone company would depend on multiple factors, including organizational structure and strategic decisions made in various areas, including information technology and infrastructure. The Company is unable to quantify the amounts that it would have recorded during the historical periods on a stand-alone basis as it is not practicable to do so. See "Unaudited Pro Forma Condensed Combined Financial Information — Notes to Unaudited Pro Forma Condensed Combined Financial Information", Note 2, Summary of Significant Accounting Policies to the Unaudited Combined Interim Financial Statements, and Note 2, Summary of Significant Accounting Policies to the Audited Combined Annual Financial Statements included elsewhere within this information statement for additional information.

**Business Overview** 

We are a live entertainment company comprised of iconic venues and marquee entertainment content. Utilizing the Company's powerful brands and live entertainment expertise, the Company delivers unique experiences that set the standard for excellence and innovation while forging deep connections with diverse and passionate audiences.

We manage our business through one reportable segment. The Company's portfolio of venues includes: The Garden, The Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre, and The Chicago Theatre. The Company also includes the original production, the *Christmas Spectacular*, and our entertainment and sports bookings business, which showcases a broad array of compelling concerts, family shows and special events, as well as a diverse mix of sporting events, for millions of guests annually.

The Company conducts a significant portion of its operations at venues that it either owns or operates under long-term leases. The Company owns The Garden, The Theater at Madison Square Garden and The Chicago Theatre, and leases Radio City Music Hall and the Beacon Theatre.

All of the Company's revenues and assets are attributed to or located in the United States and are primarily concentrated in the New York City metropolitan area.

*Impact of the COVID-19 Pandemic on Our Business* 

The Company's operations and operating results were materially impacted by the COVID-19 pandemic (including COVID-19 variants) and actions taken in response by governmental authorities and certain professional sports leagues during Fiscal Years 2020, 2021 and 2022. For the majority of Fiscal Year 2021, substantially all of our business operations were suspended. Fiscal Year 2022 was also impacted by the pandemic, with fewer ticketed events at our venues in the first half of the fiscal year as compared with Fiscal Year 2019 (the last full fiscal year not impacted by COVID-19) due to the lead-time required to book touring acts and artists, and an increase in COVID-19 cases due to a new variant, which resulted in a number of events at our venues being cancelled or postponed in the fiscal second and third quarters.

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The Company's operations and operating results were not materially impacted by the COVID-19 pandemic during the six months ended December 31, 2022, as compared to the prior year period, which was impacted by fewer ticketed events at our venues due to the lead-time required to book touring acts and artists, and the postponement or cancellation of select events (including the partial cancellation of the 2021 production of the *Christmas Spectacular*) as a result of an increase in COVID-19 cases during the fiscal second quarter.

As a result of government-mandated assembly limitations and closures, all of our venues were closed beginning in March 2020. Use of The Garden resumed for Knicks and Rangers home games without fans in December 2020 and January 2021, respectively, and was available at 10% seating capacity from February through May 2021 subject to certain safety protocols and social distancing. Beginning in May 2021, all of our New York venues were permitted to host guests at full capacity, subject to certain restrictions, and effective June 2021, The Chicago Theatre was permitted to host events without restrictions. Guests of our Chicago and New York venues were also subject to certain vaccination requirements until February and March 2022, respectively. Our venues no longer require guests to provide proof of COVID-19 vaccination before entering (although specific performers may require enhanced protocols).

For Fiscal Year 2021, the majority of ticketed events at our venues were postponed or cancelled. For Fiscal Year 2022 and as of the date of this filing, live events have been permitted to be held at all of our venues and we are continuing to host and book new events. As a result of an increase in cases of a COVID-19 variant, select bookings were postponed or cancelled at our venues in the second and third quarters of Fiscal Year 2022. Variants of COVID-19 that arise in the future may result in additional postponements or cancellations of bookings at our venues.

The impact of the COVID-19 pandemic on our operations also included the partial cancellation of the 2021 production of the *Christmas Spectacular* and the cancellation of the 2020 production of the *Christmas Spectacular*.

The Company has long-term Arena License Agreements with MSG Sports that require the Knicks and Rangers to play their home games at The Garden. As discussed above, capacity restrictions, use limitations and social distancing requirements were in place for the entirety of the Knicks and Rangers 2020-21 regular seasons, which materially impacted the payments we received under the Arena License Agreements for Fiscal Year 2021. On July 1, 2021, the Knicks and Rangers began paying the full amounts provided for under their respective Arena License Agreements. The Knicks and the Rangers each completed their 2021-2022 82-game regular seasons, with the Rangers advancing to the playoffs.

It is unclear to what extent COVID-19 concerns, including with respect to new variants, could result in new government or league-mandated capacity restrictions or vaccination/mask requirements or impact the use of and/or demand for our venues, demand for our sponsorship and advertising assets, deter our employees and vendors from working at our venues (which may lead to difficulties in staffing) or otherwise materially impact our operations.

For more information about the risks to the Company as a result of the COVID-19 pandemic and its impact on our operating results, see "Risk Factors" included elsewhere in this information statement for further details.

**Description of Our Business** 

The Company produces, presents and hosts live entertainment events, including (i) concerts, (ii) sports events, and (iii) other live events such as family shows, performing arts events and special events, in our diverse collection of venues. The scope of our collection of venues enables us to showcase acts that cover a wide spectrum of genres and popular appeal.

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Although we primarily license our venues to third-party promoters for a fee, we also promote or co-promote shows. If we serve as promoters or co-promoters of a show, we have economic risk relating to the event.

The Company also creates, produces and/or presents live productions that are performed in the Company's venues. This includes the *Christmas Spectacular* production, which features the world-famous Rockettes and which has been performed at Radio City Music Hall for 89 years.

The Company also historically owned a controlling interest in BCE, the entertainment production company that owns and operates the Boston Calling Music Festival. The Company disposed of its controlling interest in BCE on December 2, 2022.

***Revenue Sources***

The Company earns revenue from several primary sources: ticket sales to our audiences for live events that we produce or promote/co-promote, license fees for our venues paid by third-party promoters or licensees in connection with events that we do not produce or promote/co-promote, facility and ticketing fees, concessions, sponsorships and signage, suite license fees at The Garden, merchandising and tours at certain of our venues. The amount of revenue and expense recorded by the Company for a given event depends to a significant extent on whether the Company is promoting or co-promoting the event or is licensing a venue to a third party or MSG Sports. See "— Description of Our Business — Revenue Sources — Venue License Fees" below for further discussion of our venue licensing arrangements with MSG Sports.

*Ticket Sales and Suite Licenses* 

For our productions and for entertainment events in our venues that we promote, we recognize revenues from the sale of tickets to our audiences. We sell tickets to the public through our box office, via our websites and ticketing agencies and through group sales. The amount of revenue we earn from ticket sales depends on the number of shows and the mix of events that we promote, the capacity of the venue used, the extent to which we can sell to fully utilize the capacity, and our ticket prices.

The Garden has 21 Event Level suites, 58 Lexus Level suites, 18 Infosys Level suites, the Caesars Sportsbook Lounge, Suite Sixteen and the Hub Loft. Suite licenses at The Garden are generally sold to corporate customers with the majority being multi-year licenses with annual escalators. The Company licenses Suite Sixteen to Tao Group Hospitality in exchange for license fee payments.

Under standard suite licenses, the licensees pay an annual license fee, which varies depending on the location of the suite. The license fee includes, for each seat in the suite, tickets for events at The Garden for which tickets are sold to the general public, subject to certain exceptions. In addition, suite holders separately pay for food and beverage service in their suites at The Garden. Revenues from the sale of suite licenses are shared between the Company and MSG Sports. Revenues for the Company's suite license arrangements are recorded on a gross basis, as the Company is the principal in such transactions and controls the related goods or services until transfer to the customer. MSG Sports' share of the Company's suite license revenue is recognized in the combined statements of operations as a component of direct operating expenses. The revenue sharing expense recognized by the Company for MSG Sports' share of suite license revenue at The Garden is based on a 67.5% allocation to MSG Sports pursuant to the Arena License Agreements.

*Venue License Fees* 

For entertainment events held at our venues that we do not produce, promote or co-promote, we typically earn revenue from venue license fees charged to the third-party promoter or producer of the event. The amount of license fees we charge varies by venue, as well as by the size of the production and the number of days utilized, among other factors. Our fees typically include both the cost of renting space in our venues and costs for

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providing event staff, such as front-of-house and back-of-house staff, including stagehands, electricians, laborers, box office staff, ushers and security as well as production services such as staging, lighting and sound.

In connection with the 2020 Entertainment Distribution, the Company entered into Arena License Agreements with MSG Sports that, among other things, require the Knicks and the Rangers to play their home games at The Garden in exchange for fixed annual license fees scheduled to be paid monthly over the term of the agreement. The Company accounts for these license fees as operating lease revenue given that the Company provides MSG Sports with the right to direct the use of and obtain substantially all of the economic benefit from The Garden during Knicks and Rangers home games. Operating lease revenue is recognized on a straight-line basis over the term, adjusted pursuant to the terms of the Arena License Agreements, which is comprised of non-consecutive periods of use when MSG Sports uses The Garden generally for their professional sports teams' preseason and regular season home games. As such, operating lease revenue is recognized ratably as events occur.

The Arena License Agreements allow for certain reductions in the license fees during periods when The Garden is not available for use due to a force majeure event. As a result of the government-mandated suspension of events at The Garden due to the impact of the COVID-19 pandemic, at the beginning of Fiscal Year 2021, The Garden was not available for use. Capacity restrictions, use limitations and social distancing requirements were in place for the entirety of the Knicks and Rangers 2020— 21 regular seasons, which materially impacted the payments we received under the Arena License Agreements for Fiscal Year 2021. On July 1, 2021, the Knicks and Rangers began paying the full amounts provided for under their respective Arena License Agreements. The Knicks and the Rangers each completed their 2021—2022 82-game regular seasons, with the Rangers advancing to the playoffs.

*Facility and Ticketing Fees* 

For all public and ticketed events held in our venues aside from MSG Sports home games, we also earn additional revenues on substantially all tickets sold, whether we promote/co-promote the event or license the venue to a third party. These revenues are earned in the form of certain fees and assessments, including the facility fees we charge, and vary by venue.

*Concessions* 

We sell food and beverages during substantially all events held at our venues. In addition to concession-style sales of food and beverages, which represent the majority of our concession revenues, we also generate revenue from catering for our suites at The Garden. Pursuant to the Arena License Agreements related to the use of The Garden by MSG Sports, the Company shares with MSG Sports revenues and related expenses associated with sales of food and beverages (including suite catering) during Knicks and Rangers games at The Garden.

Revenue generated from in-venue food and beverage sales at MSG Sports' events is recognized by the Company on a gross basis, with a corresponding revenue sharing expense for MSG Sports' share of such sales recorded within direct operating expense. The Arena License Agreements require the Company to pay 50% of the net proceeds generated from in-venue food and beverage sales to MSG Sports.

*Merchandise* 

We earn revenues from the sale of merchandise related to our proprietary productions and other live entertainment events that take place at our venues. The majority of our merchandise revenues are generated through on-site sales during performances of our productions and other live events. We also generate revenues from the sales of our *Christmas Spectacular* merchandise, such as ornaments and apparel, through traditional retail channels. Revenues associated with *Christmas Spectacular* merchandise are generally recorded on gross basis (as principal). Typically, revenues from our merchandise sales at our non-proprietary events relate to sales

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of merchandise provided by the artist, the producer or promoter of the event and are generally subject to a revenue sharing arrangement and are generally recorded on a net basis (as agent).

Pursuant to the Arena License Agreements, the Company receives 30% of revenues, net of taxes and credit card fees, recorded on a net basis (agent), from the sale of MSG Sports teams merchandise sold at The Garden.

*Signage and Sponsorship* 

We earn revenues through the sale of signage space and sponsorship rights in connection with our venues, productions and other live entertainment events. Signage revenues generally involve the sale of advertising space at The Garden during entertainment events and otherwise in our venues. We also earn our revenues through the sale of outdoor signage around the Madison Square Garden complex and Penn Station.

Sponsorship agreements may require us to use the name, logos and other trademarks of sponsors in our advertising and in promotions for our venues, productions and other live entertainment events. Sponsorship arrangements may be exclusive within a particular sponsorship category or non-exclusive and generally permit a sponsor to use the name, logos and other trademarks of our productions, events and venues in connection with their own advertising and in promotions in our venues or in the community.

Prior to the 2020 Entertainment Distribution, for sponsorship agreements entered into by the Company or for arrangements that had performance obligations satisfied solely by the Company, revenue was generally recorded on a gross basis as the Company was the principal in such arrangements and controlled the related goods or services until transfer to the customer. MSG Sports' share of the Company's sponsorship and signage revenue was recognized in the combined statements of operations as a component of direct operating expenses. The revenue sharing expense was specifically identified where possible, with the remainder allocated proportionally based upon revenue.

Under the Arena License Agreements, the Company shares certain sponsorship and signage revenues with MSG Sports. Pursuant to these agreements, MSG Sports has the rights to sponsorship and signage revenue that is specific to Knicks and Rangers events. The Company and MSG Sports also entered into sponsorship sales representation agreements, under which the Company has the right and obligation to sell and service sponsorships for the sports teams of MSG Sports, in exchange for a commission.

*Advertising Sales ("Ad Sales") Commission* 

The Company is a party to an advertising sales representation agreement with MSG Networks. Pursuant to the agreement, the Company has the exclusive right and obligation to sell advertising availabilities of MSG Networks. The Company is entitled to, and earns, commission revenue on such sales. The expense associated with advertising personnel is recognized in selling, general and administrative expenses. The Company recorded revenues under the advertising sales representation agreement with MSG Networks of $8,802 and $7,395 for the six months ended December 31, 2022 and 2021, respectively. For Fiscal Years 2022, 2021, and 2020, the Company recognized $20,878, $13,698 and $12,653 of revenues, respectively, under the advertising sales representation agreement with MSG Networks.

***Expenses***

Our principal expenses are payments made to performers of our productions, staging costs and day-of-event costs associated with events, and advertising costs. In addition, our expenses include costs associated with the ownership, lease, maintenance and operation of our venues, along with our corporate and other supporting functions.

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*Performer Payments* 

Our proprietary productions are performed by talented actors, dancers, singers, musicians and entertainers. In order to attract and retain this talent, we are required to pay our performers an amount that is commensurate with both their abilities and the demand for their services from other entertainment companies. Our productions typically feature ensemble casts (such as the Rockettes), where most of our performers are paid based on a standard "scale," pursuant to collective bargaining agreements we negotiate with the performers' unions. Certain performers, however, have individually negotiated contracts.

*Staging Costs* 

Staging costs for our proprietary events as well as other events that we promote include the costs of sets, lighting, display technologies, special effects, sound and all of the other technical aspects involved in presenting a live entertainment event. These costs vary substantially depending on the nature of the particular show, but tend to be highest for large-scale theatrical productions, such as the *Christmas Spectacular*. For concerts we promote, the performer usually provides a fully produced show. Along with performer salaries, the staging costs associated with a given production are an important factor in the determination of ticket prices.

*Day-of-Event Costs* 

For days in which the Company stages its productions, promotes an event or provides one of our venues to a third-party promoter under a license fee arrangement, the event is charged the variable costs associated with such event, including box office staff, stagehands, ticket takers, ushers, security, and other similar expenses. In situations where we provide our venues to a third-party promoter under a license fee arrangement, day-of-event costs are typically included in the license fees charged to the promoter. Under the Arena License Agreements related to the use of The Garden by MSG Sports, the Company is reimbursed for day-of-event costs (as defined under the Arena License Agreements). The Company records such reimbursements as reductions to direct operating expenses.

*Venue Usage* 

The Company's combined financial statements include expenses associated with the ownership, maintenance and operation of The Garden, which the Company and MSG Sports use in their respective operations. Prior to the 2020 Entertainment Distribution, the Company did not charge rent expense to MSG Sports for use of The Garden. However, for purposes of the Company's combined financial statements, a portion of the historical depreciation expense as well as other non-event related venue operations costs are allocated to MSG Sports, in order to properly burden all business units comprising MSG Sports' historical operations, related to use of The Garden. This allocation is based on event count and revenue, which the Company's management believes is a reasonable allocation methodology. This allocation is reported as a reduction of direct operating expense in the combined statements of operations. This allocation is reflected for the portion of Fiscal Year 2020 prior to the 2020 Entertainment Distribution.

*Revenue Sharing Expenses* 

As discussed above, MSG Sports' share of the Company's suites licenses, venue signage and certain sponsorship and concessions revenue is reflected within direct operating expense as revenue sharing expenses. For periods prior to the 2020 Entertainment Distribution, such amounts were either specifically identified where possible, or allocated proportionally within the combined financial statements.

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*Marketing and Advertising Costs* 

We incur significant costs promoting our productions and other events through various advertising campaigns, including advertising on social and digital platforms, television, outdoor platforms and radio, and in newspapers. In light of the intense competition for entertainment events, such expenditures are a necessity to drive interest in our productions and encourage members of the public to purchase tickets to our shows.

*Other Expenses* 

The Company's selling, general and administrative expenses primarily consist of administrative costs, including compensation, professional fees, advertising sales commissions, as well as sales and marketing costs, including non-event related advertising expenses. Operating expenses also include corporate overhead costs and venue operating expenses. Venue operating expenses include the non-event related costs of operating the Company's venues, and include such costs as rent for the Company's leased venues, real estate taxes, insurance, utilities, repairs and maintenance, and labor related to the overall management of the venues.

**Factors Affecting Results of Operations** 

In addition the discussion under the section " — Business Overview — Impact of the COVID-19 Pandemic on Our Business" above, our operating results are largely dependent on our ability to attract concerts and other events to our venues, revenues under various agreements entered into with MSG Sports, and the continuing popularity of the *Christmas Spectacular at Radio City Music Hall.* Certain of these factors in turn depend on the popularity and/or performance of the professional sports teams whose games we host in our venues.

Our Company's future performance is dependent in part on general economic conditions and the effect of these conditions on our customers. Weak economic conditions may lead to lower demand for suite licenses and tickets to our live productions, concerts, family shows and other events, which would also negatively affect concession and merchandise sales, and lower levels of sponsorship and venue signage. These conditions may also affect the number of concerts, family shows and other events that take place in the future. An economic downturn could adversely affect our business and results of operations.

***Factors Affecting Comparability***

Due to the impact of the COVID-19 pandemic discussed above, each of Fiscal Year 2021 and Fiscal Year 2022 results are not comparable to the prior year and are not indicative of future results.

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**Combined Results of Operations** 

***Comparison of the Six Months Ended December 31, 2022 versus the Six Months Ended December 31, 2021***

The table below sets forth, for the periods presented, certain historical financial information.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six Months Ended**<br>**December 31,** | **Six Months Ended**<br>**December 31,** | **Change** | **Change** |
|  | **2022** | **2021** | **Amount** | **Percentage** |
|  Revenues | $502332 | $281162 | $221170 | 79% |
|  Direct operating expenses | 282265 | 182236 | 100029 | 55% |
|  Selling, general and administrative expenses | 83415 | 81698 | 1717 | 2% |
|  Depreciation and amortization | 31571 | 33159 | (1588) | (5)% |
|  Gains, net on dispositions | (4412) |  | (4412) | NM |
|  Restructuring charges | 7359 |  | 7359 | NM |
|  Operating income (loss) | 102134 | (15931) | 118065 | NM |
|  Interest income | 3322 | 3604 | (282) | (8)% |
|  Interest expense | (24632) | (26795) | 2163 | (8)% |
|  Other expense, net | (1286) | (19247) | 17961 | (93)% |
|  Income (loss) from operations before income taxes | 79538 | (58369) | 137907 | NM |
|  Income tax (expense) benefit | (731) |  | (731) | NM |
|  Net income (loss) | 78807 | (58369) | 137176 | NM |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Net loss attributable to nonredeemable noncontrolling interests | (553) | (367) | (186) | 51% |
|  Net income (loss) attributable to Madison Square Garden Entertainment Corp.'s stockholders | 79360 | (58002) | 137362 | NM |

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NM — Absolute percentages greater than 200% and comparisons from positive to negative values or to zero values are considered not meaningful.

*<u>Revenues</u>*

Revenues for the six months ended December 31, 2022 increased $221,170 as compared to the prior year period. The change in revenues was attributable to the following:

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|:---|:---|:---|:---|
| | **Six Months Ended**<br>**December 31, 2022** |  |  |
| | **Six Months Ended**<br>**December 31, 2022** | Increase in event-related revenues, as discussed below | $88214.0 |
|  Increase in revenues from the presentation of the *Christmas Spectacular* | 71414 |  |  |
|  Increase in revenues subject to the sharing of economics with MSG Sports pursuant to the Arena License Agreements | 35404 |  |  |
|  Increase in venue-related sponsorship, signage and suite license fee revenues | 16643 |  |  |
|  Increase in arena license fees from MSG Sports pursuant to the Arena License Agreements | 3968 |  |  |
|  Other net increases | 5527 |  |  |
|  | $221170 |  |  |

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For the six months ended December 31, 2022, the increase in event-related revenues primarily reflects higher revenues from concerts of $88,072. The increase in revenues for the six months ended December 31, 2022 was primarily due to the return of live events at the Company's venues as compared to limited live events held during the first six months of Fiscal Year 2022 (due to the COVID-19 pandemic). See " — Business Overview — *Impact of the COVID-19 Pandemic on Our Business*" for more information.

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The Company had 181 *Christmas Spectacular* performances during this year's holiday season, of which 174 took place in the second quarter of Fiscal Year 2023, as compared to 101 performances in the prior year's holiday season (due to the partial cancellation of the 2021 production as a result of an increase in COVID-19 cases), all of which took place in the second quarter of Fiscal Year 2022. For this year's holiday season, more than 930,000 tickets were sold, representing an over 25% increase in attendance on a per-show basis as compared to the prior year.

For the six months ended December 31, 2022, the increase in revenues subject to the sharing of economics with MSG Sports pursuant to the Arena License Agreements primarily reflected higher suite license fee revenues and, to a lesser extent, higher food, beverage and merchandise sales at Knicks and Rangers games.

For the six months ended December 31, 2022, the increase in venue-related sponsorship, signage and suite license fee revenues primarily reflects higher suite license fee revenues, which was mainly due to the return of live events at the Company's venues as compared to limited live events held during the first six months of Fiscal Year 2022 (due to the COVID-19 pandemic).

*<u>Direct operating expenses</u>*

Direct operating expenses for the six months ended December 31, 2022 increased $100,029 as compared to the prior year period. The change in direct operating expenses was attributable to the following:

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|:---|:---|:---|:---|
| | **Six Months Ended**<br>**December 31, 2022** |  |  |
| | **Six Months Ended**<br>**December 31, 2022** | Increase in event-related direct operating expenses as discussed below | $47644.0 |
|  Increase in expenses associated with the sharing of economics with MSG Sports pursuant to the Arena License Agreements | 28693 |  |  |
|  Increase in direct operating expenses associated with the *Christmas Spectacular* | 9854 |  |  |
|  Increase in venue operating costs | 6627 |  |  |
|  Increase in direct operating expenses associated with the Arena License Agreements | 4732 |  |  |
|  Other net increases | 2479 |  |  |
|  | $100029 |  |  |

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For the six months ended December 31, 2022, the increase in event-related direct operating expenses primarily reflects higher direct operating expenses from concerts of $46,422, which was primarily due to the increase in the number of events held at the Company's venues as compared to the prior year period.

For the six months ended December 31, 2022, the increase in direct operating expenses associated with the sharing of economics with MSG Sports pursuant to the Arena License Agreements primarily reflects the increase in suite license fees and, to a lesser extent, the increase in Knicks' and Rangers' food and beverage sales.

For the six months ended December 31, 2022, the increase in direct operating expenses associated with the *Christmas Spectacular* production was primarily due to the increase in the number of performances as compared to the prior year period.

For the six months ended December 31, 2022, the increase in expenses associated with the Arena License Agreements primarily reflects an increase in food and beverage costs associated with the increase in Knicks' and Rangers' food and beverage sales.

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*<u>Selling, general and administrative expenses</u>*

For the six months ended December 31, 2022, selling, general and administrative expenses increased $1,717, or 2%, to $83,415 as compared to the prior year period. The increase primarily reflects higher advertising and general administrative expenses.

*<u>Gains, net on dispositions</u>*

For the six months ended December 31, 2022, the Company recorded net gains of $4,412 primarily due to the gain on sale of the company's controlling interest in BCE, partially offset by the net loss on the disposal of a corporate aircraft.

*<u>Restructuring Charges</u>*

For the six months ended December 31, 2022, the Company recorded total restructuring charges of $7,359 related to termination benefits provided for a workforce reduction of certain executives and employees as part of the Company's cost reduction program implemented in Fiscal Year 2023. No amounts were recorded as restructuring charges during the comparative prior period.

*<u>Operating income (loss)</u>*

Operating income for the six months ended December 31, 2022 was $102,134 as compared to a loss of $15,931 in the prior year period, an improvement of $118,065. The improvement in operating income (loss) was primarily due to an increase in revenues, partially offset by higher direct operating expenses, as discussed above.

*<u>Interest income</u>*

Interest income for the six months ended December 31, 2022 decreased $282 as compared to the prior year period primarily due to lower related party interest of $1,660 as a result of MSG Entertainment's repayment of the TAO Subordinated Credit Agreement (defined below) on June 9, 2022, partially offset by higher interest income of $1,378 due to higher rates and average investment balances.

*<u>Interest expense</u>*

Interest expense for the six months ended December 31, 2022 decreased $2,163 as compared to the prior year period primarily due to lower amortization of deferred financing costs of $1,774 as a result of the extinguishment of MSG National Properties' prior term loan facility in June 2022.

*<u>Other expense, net</u>*

Other expense, net for the six months ended December 31, 2022 decreased $17,961 as compared to the prior year period primarily due to lower unrealized losses of approximately $21,300 associated with the Company's investments in DraftKings Inc., partially offset by the realized gain of $1,489 on shares sold of DraftKings.

*<u>Income tax (expense) benefit</u>*

Income tax expense for the six months ended December 31, 2022 of $731 reflected an effective income tax rate of 1% and differs from the income tax expense derived from applying the statutory federal rate of 21% to the pretax income primarily due to (i) tax expense related to state and local taxes of $11,769, (ii) tax expense of $5,103 related to share-based payment awards and (iii) tax expense of $1,993 related to nondeductible officers' compensation, partially offset by (i) tax benefit of $33,001 resulting from a decrease in the valuation allowance and (ii) a tax benefit of $2,066 related to a federal income tax refund.

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Income tax expense for the six months ended December 31, 2021 of nil reflected an effective income tax rate of 0% and differs from income tax benefit derived from applying the statutory federal rate of 21% to the pretax loss primarily due to (i) tax expense of $13,741 resulting from an increase in the valuation allowance and (ii) tax expense of $3,527 related to nondeductible officers' compensation, partially offset by state income tax benefit of $4,926.

*<u>Adjusted operating income (loss) ("AOI")</u>*

The Company evaluates performance based on several factors, of which the key financial measure is adjusted operating income (loss), a non-GAAP financial measure. We define adjusted income (loss) as operating income (loss) excluding:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the impact of non-cash straight-line leasing revenue associated with
the Arena License Agreements with MSG Sports,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) depreciation, amortization and impairments of property and equipment, goodwill and intangible assets,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) amortization for capitalized cloud computing arrangement costs,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) share-based compensation expense,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) restructuring charges or credits,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) merger and acquisition-related costs, including litigation expenses,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) gains or losses on sales or dispositions of businesses and associated settlements,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the impact of purchase accounting adjustments related to business acquisitions, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) gains and losses related to the remeasurement of liabilities under MSG Entertainment's Executive Deferred
Compensation Plan (which was established in November 2021).

The Company believes that given the length of the Arena License Agreements and resulting magnitude of the difference in leasing revenue recognized and cash revenue received, the exclusion of non-cash leasing revenue provides investors with a clearer picture of the Company's operating performance. Management believes that this adjustment is beneficial for other incremental reasons as well. This adjustment provides senior management, investors and analysts with important information regarding a long-term related party agreement with MSG Sports. In addition, this adjustment is included under the Company's debt covenant compliance calculations and is a component of the performance measures used to evaluate, and compensate, senior management of the Company. The Company believes that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of the Company's business without regard to the settlement of an obligation that is not expected to be made in cash. The Company eliminates merger and acquisition-related costs, when applicable, because the Company does not consider such costs to be indicative of the ongoing operating performance of the Company as they result from an event that is of a non-recurring nature, thereby enhancing comparability. In addition, management believes that the exclusion of gains and losses related to the remeasurement of liabilities under the MSG Entertainment's Executive Deferred Compensation Plan, which were included for the first time in Fiscal Year 2022, provides investors with a clearer picture of the Company's operating performance given that, in accordance with GAAP, gains and losses related to the remeasurement of liabilities under the MSG Entertainment's Executive Deferred Compensation Plan are recognized in Operating (income) loss whereas gains and losses related to the remeasurement of the assets under the MSG Entertainment's Executive Deferred Compensation Plan, which are equal to and therefore fully offset the gains and losses related to the remeasurement of liabilities, are recognized in Other income (expense), net, which is not reflected in Operating income (loss).

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The Company believes AOI is an appropriate measure for evaluating the operating performance of the Company on a combined basis. AOI and similar measures with similar titles are common performance measures used by investors and analysts to analyze the Company's performance. The Company uses revenues and AOI measures as the most important indicators of its business performance and evaluates management's effectiveness with specific reference to these indicators.

AOI should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with GAAP. Since AOI is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. The Company has presented the components that reconcile operating income (loss), the most directly comparable GAAP financial measure, to AOI.

The following is a reconciliation of operating income (loss) to adjusted operating income for the six months ended December 31, 2022 as compared to the prior year period:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** | **Change** | **Change** |
|  | **2022** | **2021** | **Amount** | **Percentage** |
|  Operating income (loss) | 102134 | (15931) | 118065 | NM |
|  Non-cash portion of arena license fees from MSG Sports | (12929) | (11889) |  |  |
|  Share-based compensation expense | 13965 | 21079 |  |  |
|  Depreciation and amortization | 31571 | 33159 |  |  |
|  Gains, net on dispositions | (4412) |  |  |  |
|  Restructuring charges | 7359 |  |  |  |
|  Amortization for capitalized cloud computing arrangement costs | 104 |  |  |  |
|  Remeasurement of deferred compensation plan liabilities | 6 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted operating income | 137798 | 26418 | 111380 | NM |

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NM — Absolute percentages greater than 200% and comparisons from positive to negative values or to zero values are considered not meaningful.

*<sup>(a)</sup>* *This adjustment represents the non-cash portion of operating lease revenue related to the Company's Arena License Agreements with MSG Sports. Pursuant to GAAP, recognition of operating lease revenue is recorded on a straight-line basis over the term of the agreement based upon the value of total future payments under the arrangement. As a result, operating lease revenue is comprised of a contractual cash component plus or minus a non-cash component for each period presented. Operating income on a GAAP basis includes lease income of (i) $20,220 and $17,293 of revenue collected in cash for the six months ended December 31, 2022, and 2021, respectively and (ii) a non-cash portion of $12,929 and $11,889 for the six months ended December 31, 2022 and 2021, respectively.* 

*<u>Net income (loss) attributable to redeemable and nonredeemable noncontrolling interests</u>*

For the six months ended December 31, 2022, the Company recorded $553 of net loss attributable to nonredeemable noncontrolling interests as compared to $367 of net loss attributable to nonredeemable noncontrolling interests for the six months ended December 31, 2021. These amounts represent the share of net loss of BCE that is not attributable to the Company.

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***Comparison of the Fiscal Year Ended June 30, 2022 versus the Fiscal Year Ended June 30, 2021***

**Combined Results of Operations** 

The table below sets forth, for the periods presented, certain historical financial information.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Years Ended June 30,** | **Years Ended June 30,** | **Change** | **Change** |
|  | **2022** | **2021** | **Amount** | **Percentage** |
|  Revenues | $653490 | $81812 | $571678 | NM |
|  Direct operating expenses | 417301 | 96236 | 321065 | NM |
|  Selling, general and administrative expenses | 167132 | 136597 | 30535 | 22% |
|  Depreciation and amortization | 69534 | 71576 | (2042) | (3)% |
|  Restructuring charges | 5171 | 14691 | (9520) | (65)% |
|  Operating loss | (5648) | (237288) | 231640 | 98% |
|  Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net | (45960) | (27293) | (18667) | (68)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt | (35629) |  | (35629) | NM |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other income (expense), net | (49033) | 50622 | (99655) | NM |
|  Loss from operations before income taxes | (136270) | (213959) | 77689 | 36% |
|  Income tax (expense) benefit | 70 | (5349) | 5419 | NM |
|  Net loss | (136200) | (219308) | 83108 | 38% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Net loss attributable to nonredeemable noncontrolling interests | (2864) | (694) | (2170) | NM |
|  Net loss attributable to Spinco's stockholders | $(133336) | $(218614) | $85278 | 39% |

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*NM (not meaningful) — Absolute percentages greater than 200% and comparisons from positive to negative values or to zero values are considered not meaningful.* 

The Company's operating results were materially impacted during Fiscal Years 2022 and 2021 by the COVID-19 pandemic and government actions taken in response. See "— Business Overview — Impact of the COVID-19 Pandemic on Our Business" for more information.

*<u>Revenues</u>*

Revenues increased $571,678 from $81,812 for Fiscal Year 2021 to $653,490 for Fiscal Year 2022. The net increase was attributable to the following:

---

| | |
|:---|:---|
|  Increase in event-related revenues, as discussed below | $239574.0 |
|  Increase in revenues from signage, suite licenses, and sales of food, beverage and merchandise subject to revenue or profit sharing with MSG Sports pursuant to the Arena License Agreements | 130238.0 |
|  Increase in revenues from the shortened *Christmas Spectacular* 2021 holiday season run as compared to the cancellation of the 2020 production in Fiscal Year 2021 as a result of the COVID-19 pandemic | 55454.0 |
|  Increase in arena license fees from MSG Sports pursuant to the Arena License Agreements, as discussed below | 46727.0 |
|  Increase in suite license fee revenues, due to the return of live events at the Company's venues during Fiscal Year 2022 as compared to limited live events held in Fiscal Year 2021 due to the COVID-19 pandemic | 34904.0 |
|  Increase in venue-related signage and sponsorship revenues primarily due to the return of live events at the Company's venues during Fiscal Year 2022 as compared to limited live events held in Fiscal Year 2021 due to the COVID-19 pandemic | 29940.0 |
|  Increase in revenues from the Boston Calling Music Festival as compared to the cancellation of the festival in Fiscal Year 2021 as a result of the COVID-19 pandemic | 18313.0 |
|  Other net increases | 16528.0 |
|  | $571678.0 |

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##### [**Table of Contents**](#toc)
The increase in event-related revenues reflects (i) higher revenues from concerts of $179,892 during Fiscal Year 2022 and (ii) higher revenues from live entertainment and other sporting events of $59,682 during Fiscal Year 2022. These increases were due to the return of live events to the Company's venues during Fiscal Year 2022 as compared to limited live events held in Fiscal Year 2021 due to the COVID-19 pandemic. See "— Business Overview — Impact of the COVID-19 Pandemic on Our Business" for more information.

In Fiscal Year 2022, the Knicks and Rangers played a combined 98 pre-season, regular season, and post-season games at The Garden without any capacity restrictions. As a result, the Company recorded $68,072 in arena license fees under the Arena License Agreements for Fiscal Year 2022. In Fiscal Year 2021, capacity restrictions, use limitations and social distancing requirements were in place for the entirety of the Knicks and Rangers 2020-21 regular seasons, which materially impacted the payments we received under the Arena License Agreements during Fiscal Year 2021.

*<u>Direct operating expenses</u>*

Direct operating expenses increased $321,065 from $96,236 for Fiscal Year 2021 to $417,301 for Fiscal Year 2022. The net increase was attributable to the following:

---

| | |
|:---|:---|
|  Increase in event-related direct operating expenses, as discussed below | $125931.0 |
|  Increase in direct operating expenses associated with revenue or profit sharing expense from signage, suite licenses and sales of food, beverage and merchandise with MSG Sports pursuant to the Arena License Agreements | 94226.0 |
|  Increase in direct operating expenses from the shortened *Christmas Spectacular* 2021 holiday season run as compared to the cancellation of the 2020 production in Fiscal Year 2021 as a result of the COVID-19 pandemic | 39029.0 |
|  Increase in direct operating expenses associated with the Boston Calling Music Festival as compared to the cancellation of the festival in Fiscal Year 2021 as a result of the COVID-19 pandemic | 19003.0 |
|  Increase in direct operating expenses associated with the Arena License Agreements | 17645.0 |
|  Increase in direct operating expenses associated with venue operating costs | 15445.0 |
|  Other net increases | 9786.0 |
|  | $321065.0 |

---

For Fiscal Year 2022, the increase in event-related direct operating expenses reflects (i) higher direct operating expenses from concerts of $91,938, and (ii) higher direct operating expenses from live entertainment and other sporting events of $33,993, primarily due to the return of events to the Company's venues during Fiscal Year 2022 as compared to limited live events in Fiscal Year 2021 due to the COVID-19 pandemic.

*<u>Selling, general and administrative expenses</u>*

SG&A expenses for Fiscal Year 2022 increased $30,535, or 22%, to $167,132 as compared to Fiscal Year 2021 primarily due to a net increase in employee compensation and related benefits, which included the impact of severance-related costs attributable to separation agreements in Fiscal Year 2022.

*<u>Depreciation and amortization</u>*

Depreciation and amortization for Fiscal Year 2022 decreased $2,042, or 3%, to $69,534 as compared to Fiscal Year 2021 primarily due to certain assets in The Garden being fully depreciated and amortized.

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*<u>Restructuring charges</u>*

Restructuring charges for Fiscal Year 2022 were $5,171 as compared to $14,691 in Fiscal Year 2021, a decrease of $9,520, or 65%. The Company's operations have been disrupted since March 2020 due to the COVID-19 pandemic. As a direct response to this disruption, the Company implemented cost savings initiatives to reduce labor costs. For Fiscal Year 2021, the Company recorded total restructuring charges of $14,691 related to termination benefits provided to employees associated with a full-time workforce reduction in August 2020 and November 2020. For Fiscal Year 2022, the Company underwent additional organizational changes to further streamline operations related to the elimination of certain executive and management level functions, resulting in additional restructuring charges but of a lesser amount.

*<u>Operating loss</u>*

Operating loss for Fiscal Year 2022 improved $231,640 to $5,648 as compared to an operating loss of $237,288 in Fiscal Year 2021. The improvement in operating loss was primarily due to the increase in revenues, and, to a lesser extent, the decrease in restructuring charges, offset by higher direct operating expenses and SG&A expenses.

*<u>Interest expense, net</u>*

Interest expense, net for Fiscal Year 2022 was $45,960 as compared to $27,293 in Fiscal Year 2021, an increase of $18,667, or 68%. The increase in net interest expense in Fiscal Year 2022 was primarily due to an increase in interest expense of $18,787 on the MSG National Properties, LLC facilities as a result of the balance of MSG National Properties' prior term loan facility being outstanding for almost the full year of Fiscal Year 2022 (refinanced on June 30, 2022) compared to a partial year for Fiscal Year 2021, given the Company entered into the prior term loan facility on November 12, 2020. The increase in interest expense was partially offset by an increase in interest income from a related party.

*<u>Loss on extinguishment of debt</u>*

For Fiscal Year 2022, the Company incurred a loss on extinguishment of debt of $35,629 in connection with the extinguishment of MSG National Properties' prior term loan facility.

*<u>Other income (expense), net</u>*

For Fiscal Year 2022, net other expense was $49,033 as compared to net other income of $50,622 for Fiscal Year 2021, a decrease of $99,655. The decrease was primarily due to an increase in unrealized losses of $62,155 and $41,192 associated with the investments in DraftKings Inc. ("DraftKings") and Townsquare Media, Inc. ("Townsquare"), respectively, partially offset by (i) the absence of a $2,327 realized loss on the Company's sale of investments in DraftKings in Fiscal Year 2021 and (ii) a $1,073 decrease in other pension costs.

*<u>Income taxes</u>*

Income tax benefit for Fiscal Year 2022 of $70 differs from income tax benefit derived from applying the statutory federal rate of 21% to the pretax loss primarily due to (i) an increase in the valuation allowance of $31,679 and (ii) tax expense of $8,125 related to nondeductible officers' compensation, partially offset by state income tax benefit of $12,141.

Income tax expense for Fiscal Year 2021 of $5,349 differs from income tax benefit derived from applying the statutory federal rate of 21% to the pretax loss primarily due to (i) an increase in the valuation allowance of $70,501 and (ii) tax expense of $5,209 related to nondeductible officers' compensation, partially offset by (i) state income tax benefit of $22,882 and (ii) tax benefit of $2,545 related to a change in the estimated applicable tax rate used to determine deferred taxes.

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See Note 18, Income Taxes to the Audited Combined Annual Financial Statements included elsewhere in this information statement for further details on the components of income tax and a reconciliation of the statutory federal rate to the effective tax rate.

The following is a reconciliation of operating loss to adjusted operating income (loss):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Years Ended June 30,** | **Years Ended June 30,** | **Change** | **Change** |
|  | **2022** | **2021** | **Amount** | **Percentage** |
|  Operating loss | $(5648) | $(237288) | $231640 | 98% |
|  Non-cash portion of arena license fees from MSG Sports *<sup>(a)</sup>* | (27754) | (13026) |  |  |
|  Share-based compensation expense | 37746 | 40663 |  |  |
|  Depreciation and amortization | 69534 | 71576 |  |  |
|  Restructuring charges | 5171 | 14691 |  |  |
|  Remeasurement of deferred compensation plan liabilities | 46 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted operating income (loss) | $79095 | $(123384) | $202479 | NM |

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*NM (not meaningful) — Absolute percentages greater than 200% and comparisons from positive to negative values or to zero values are considered not meaningful.* 

*<sup>(a)</sup>* *This adjustment represents the non-cash portion of operating lease revenue related to the Company's Arena License Agreements with MSG Sports. Pursuant to GAAP, recognition of operating lease revenue is recorded on a straight-line basis over the term of the agreement based upon the value of total future payments under the arrangement. As a result, operating lease revenue is comprised of a contractual cash component plus or minus a non-cash component for each period presented. Operating income on a GAAP basis includes lease income of (i) $40,319 and $8,319 collected in cash for Fiscal Years 2022 and 2021, respectively, and (ii) a non-cash portion of $27,754 and $13,026 for Fiscal Years 2022 and 2021, respectively.* 

*<u>Net loss attributable to nonredeemable noncontrolling interests</u>*

For Fiscal Year 2022, the Company posted a net loss attributable to nonredeemable noncontrolling interests of $2,864 in comparison to a net loss attributable to nonredeemable noncontrolling interests of $694 for Fiscal Year 2021. These amounts represent the share of net loss of BCE that is not attributable to the Company.

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***Comparison of the Fiscal Year Ended June 30, 2021 versus the Fiscal Year Ended June 30, 2020***

See below for a discussion of the comparison of Fiscal Year 2021 versus Fiscal Year 2020 for the combined Company.

***Combined Results of Operations***

The table below sets forth, for the periods presented, certain historical financial information.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Years Ended June 30,** | **Years Ended June 30,** | **Change** | **Change** |
|  | **2021** | **2020** | **Amount** | **Percentage** |
|  Revenues | $81812 | $584601 | $(502789) | (86)% |
|  Direct operating expenses | 96236 | 380526 | (284290) | (75)% |
|  Selling, general and administrative expenses | 136597 | 137935 | (1338) | (1)% |
|  Depreciation and amortization | 71576 | 81591 | (10015) | (12)% |
|  Gain on disposal of assets held for sale and associated settlements |  | (240783) | 240783 | 100% |
|  Restructuring charges | 14691 |  | 14691 | NM |
|  Operating income (loss) | (237288) | 225332 | (462620) | NM |
|  Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net | (27293) | 8380 | (35673) | NM |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other income, net | 50622 | 37129 | 13493 | 36% |
|  Income (loss) from operations before income taxes | (213959) | 270841 | (484800) | NM |
|  Income tax expense | (5349) | (100182) | 94833 | 95% |
|  Net income (loss) | (219308) | 170659 | (389967) | NM |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Net loss attributable to nonredeemable noncontrolling interests | (694) | (1071) | 377 | 35% |
|  Net income (loss) attributable to Spinco's stockholders | $(218614) | $171730 | $(390344) | NM |

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*NM (not meaningful) — Absolute percentages greater than 200% and comparisons from positive to negative values or to zero values are considered not meaningful.* 

*<u>Revenues</u>*

Revenues for Fiscal Year 2021 decreased $502,789, or 86%, to $81,812 as compared to Fiscal Year 2020. The net decrease was attributable to the following:

---

| | |
|:---|:---|
|  Decrease in event-related revenues from concerts, as discussed below | $(212899) |
|  Decrease in revenues from the *Christmas Spectacular* due to the cancellation of the 2020 holiday season production as a result of the COVID-19 pandemic | (128488) |
|  Decrease in suite license fee revenues due to the government-mandated closures and restrictions on the use of our venues beginning in March 2020 as a result of the COVID-19 pandemic | (85900) |
|  Decrease in venue-related signage and sponsorship revenues as well as the impact of government-mandated closures and restrictions on the use of our venues beginning in March 2020 as a result of the COVID-19 pandemic | (65196) |
|  Absence of revenues from the Forum due to its disposition in May 2020 | (45719) |
|  Increase in arena license fees from MSG Sports pursuant to the Arena License Agreements, as discussed below | 21345 |
|  Increase in revenues from sponsorship sales and service representation agreements with MSG Sports, as discussed below | 11280 |
|  Other net increases | 2788 |
|  | $(502789) |

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##### [**Table of Contents**](#toc)
The decrease in event-related revenues reflects (i) lower revenues from concerts of $158,580 during Fiscal Year 2021 and (ii) lower revenues from live entertainment and other sporting events of $54,319 during Fiscal Year 2021. Both of these declines were due to government-mandated closures and restrictions on the use of our venues beginning in March 2020 as a result of the COVID-19 pandemic. See "— Business Overview — Impact of the COVID-19 Pandemic on Our Business " for more information.

The arena license fee revenues from MSG Sports in Fiscal Year 2021 were due to The Garden reopening for the Knicks games in December 2020 and the Rangers games in January 2021 with limited or no fans. There were no arena license fees recorded prior to the 2020 Entertainment Distribution.

The increase in revenues from the Company's sponsorship sales and service representation agreements and Arena License Agreements with MSG Sports reflects the impact of entering into these agreements in connection with, and effective as of, the 2020 Entertainment Distribution.

*<u>Direct operating expenses</u>*

Direct operating expenses for Fiscal Year 2021 decreased $284,290, or 75%, to $96,236 as compared to Fiscal Year 2020. The net decrease was attributable to the following:

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| | |
|:---|:---|
|  Decrease in event-related direct operating expenses from (i) concerts of $85,449 during Fiscal Year 2021 and (ii) live entertainment and other sporting events of $39,057, both due to government-mandated closures and restrictions on the use of our venues beginning in March 2020 as a result of the COVID-19 pandemic | $(124506) |
|  Decrease in direct operating expenses associated with suite license operations primarily due to the impact of lower revenue sharing expenses with MSG Sports corresponding to the lower suite revenue during Fiscal Year 2020 due to government-mandated closures and restrictions on the use of our venues beginning in March 2020 as a result of the COVID-19 pandemic | (58096) |
|  Decrease in direct operating expenses associated with venue-related signage and sponsorship primarily due to the impact of lower revenue sharing expense with MSG Sports of $52,052 | (53392) |
|  Decrease in direct operating expenses associated with the *Christmas Spectacular* due to the cancellation of the 2020 holiday season production as a result of the COVID-19 pandemic | (50714) |
|  Decrease in direct operating expenses associated with the Forum due to its disposition in May 2020 | (26576) |
|  Other net increases, primarily due to the absence of carve-out allocations to MSG Sports related to the 2020 Entertainment Distribution | 28994 |
|  | $(284290) |

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*<u>Selling, general and administrative expenses</u>*

SG&A expenses for Fiscal Year 2021 decreased $1,338, or 1%, to $136,597 as compared to Fiscal Year 2020. The decrease was primarily due to a net decrease in employee compensation and related benefits as a result of the Company's full-time workforce reduction in August 2020 as well as other net decreases in professional fees. The decrease was partially offset by an incremental expense for share-based compensation associated with the cancellation of certain awards pursuant to a settlement agreement.

*<u>Depreciation and amortization</u>*

Depreciation and amortization for Fiscal Year 2021 decreased $10,015, or 12%, to $71,576 as compared to Fiscal Year 2020 primarily due to certain assets in The Garden being fully depreciated and amortized, resulting in a decrease of $3,013, and lower depreciation and amortization of $5,827 associated with the Forum as the recording of depreciation ceased on March 24, 2020 when the venue was classified as assets held for sale.

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##### [**Table of Contents**](#toc)
*<u>Gain on disposal of assets held for sale and associated settlements</u>*

In May 2020, the Company sold the Forum for cash consideration in the amount of $400,000 (including the settlement of related litigation). In connection with this transaction, the Company recorded a gain of $240,783 in the fourth quarter of Fiscal Year 2020, which included $140,495 attributable to the Forum associated settlement.

*<u>Restructuring charges</u>*

The Company's operations were disrupted in March 2020 due to the COVID-19 pandemic and those disruptions have continued. As a direct response to this disruption, in Fiscal Year 2021, the Company implemented cost savings initiatives in order to streamline operations and preserve liquidity. For Fiscal Year 2021, the Company recorded total restructuring charges of $14,691 related to termination benefits provided to employees associated with a full-time workforce reduction in August 2020 and November 2020. No restructuring charges were incurred in Fiscal Year 2020.

*<u>Operating income (loss)</u>*

Operating income for Fiscal Year 2021 decreased $462,620 to an operating loss of $237,288 as compared to Fiscal Year 2020 primarily due to (i) the decrease in revenues, (ii) the gain on disposal of the Forum in Inglewood and associated settlement recorded in Fiscal Year 2020, and (iii) restructuring charges incurred in Fiscal Year 2021 as a response to the disruptions caused by the COVID-19 pandemic. The decrease in operating income was partially offset by the decrease in direct operating expenses.

*<u>Interest expense, net</u>*

Net interest expense for Fiscal Year 2021 increased $35,673 to $27,293 as compared to net interest income of $8,380 for Fiscal Year 2020. The increase was primarily due to (i) higher interest expense in Fiscal Year 2021 associated with the National Properties Term Loan Facility (as defined below) of $33,481, which was entered into in November 2020, (ii) lower interest income of $2,363 mainly due to the absence of $1,400 of interest income earned on a loan extended to Azoff Music as compared to Fiscal Year 2020 since the loan was repaid during the second quarter of Fiscal Year 2020, and (iii) lower interest income of $910 earned on the Eden Loan Agreement, as defined below.

*<u>Other income, net</u>*

Other income, net for Fiscal Year 2021 increased by $13,493 to $50,622 as compared to $37,129 for Fiscal Year 2020. The increase was primarily due to the net realized and unrealized gains of $13,550 recognized on the Company's investments in DraftKings and Townsquare.

*<u>Income taxes</u>*

Income tax expense for Fiscal Year 2021 of $5,349 differs from income tax benefit derived from applying the statutory federal rate of 21% to the pretax loss primarily due to (i) an increase in the valuation allowance of $70,501 and (ii) tax expense of $5,209 related to nondeductible officers' compensation, offset partially by (i) state income tax benefit of $22,882 and (ii) tax benefit of $2,545 related to a change in the estimated applicable tax rate used to determine deferred taxes.

Income tax expense for Fiscal Year 2020 of $100,182 differs from income tax expense derived from applying the statutory federal rate of 21% to the pretax income primarily due to (i) state income tax expense of $33,345, (ii) tax expense of $7,120 related to nondeductible transaction costs associated with the 2020 Entertainment Distribution, and (iii) tax expense of $4,407 related to nondeductible officers' compensation, partially offset by an excess tax benefit related to share-based payment awards of $2,322.

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See Note 18, Income Taxes to the Audited Combined Annual Financial Statements included elsewhere in this information statement for further details on the components of income tax and a reconciliation of the statutory federal rate to the effective tax rate.

*<u>Adjusted operating income (loss)</u>* 

The following is a reconciliation of operating income (loss) to adjusted operating income (loss):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Years Ended June 30,** | **Years Ended June 30,** | **Change** | **Change** |
|  | **2021** | **2020** | **Amount** | **Percentage** |
|  Operating income (loss) | $(237288) | $225332 | $(462620) | (205)% |
|  Non-cash portion of arena license fees from MSG Sports <sup>(a)</sup> | (13026) |  |  |  |
|  Share-based compensation expense | 40663 | 26110 |  |  |
|  Depreciation and amortization | 71576 | 81591 |  |  |
|  Restructuring charges | 14691 |  |  |  |
|  Gain on disposal of assets held for sale, including legal settlement |  | (240783) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted operating income (loss) | $(123384) | $92250 | $(215634) | (234)% |

---

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*<sup>(a)</sup>* *This adjustment represents the non-cash portion of operating lease revenue related to the Company's Arena License Agreements with MSG Sports. Pursuant to GAAP, recognition of operating lease revenue is recorded on a straight-line basis over the term of the agreement based upon the value of total future payments under the arrangement. As a result, operating lease revenue is comprised of a contractual cash component plus or minus a non-cash component for each period presented. Operating income on a GAAP basis includes lease income of (i) $8,319 and nil collected in cash for Fiscal Years 2021 and 2020, respectively, and (ii) a non-cash portion of $13,026 and nil for Fiscal Years 2021 and 2020, respectively.* 

*<u>Net loss attributable to nonredeemable noncontrolling interests</u>* 

For Fiscal Year 2021, the Company recorded a net loss attributable to nonredeemable noncontrolling interests of $694 as compared to $1,071 for Fiscal Year 2020. These amounts represent the share of net loss of BCE that is not attributable to the Company.

**<u>Liquidity and Capital Resources</u>**

***Overview***

*Impact of the COVID-19 Pandemic* 

The Company's operations and operating results were materially impacted by the COVID-19 pandemic (including COVID-19 variants) and actions taken in response by governmental authorities and certain professional sports leagues during Fiscal Years 2020, 2021 and 2022. For the majority of Fiscal Year 2021, substantially all of our business operations were suspended. Fiscal Year 2022 was also impacted by the pandemic, with fewer ticketed events at our venues in the first half of the fiscal year as compared with Fiscal Year 2019 (the last full fiscal year not impacted by COVID-19) due to the lead-time required to book touring acts and artists, and an increase in COVID-19 cases due to a new variant, which resulted in a number of events at our venues being cancelled or postponed in the fiscal second and third quarters.

The Company's operations and operating results were not materially impacted by the COVID-19 pandemic during the six months ended December 31, 2022, as compared to the prior year period, which was impacted by fewer ticketed events at our venues due to the lead-time required to book touring acts and artists, and the postponement or cancellation of select events (including the partial cancellation of the 2021 production of the *Christmas Spectacular*) as a result of an increase in COVID-19 cases during the fiscal second quarter.

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As a result of government-mandated assembly limitations and closures, all of our venues were closed beginning in March 2020. Use of The Garden resumed for Knicks and Rangers home games without fans in December 2020 and January 2021, respectively, and was available at 10% seating capacity from February through May 2021 subject to certain safety protocols and social distancing. Beginning in May 2021, all of our New York venues were permitted to host guests at full capacity, subject to certain restrictions, and effective June 2021, The Chicago Theatre was permitted to host events without restrictions. Guests of our Chicago and New York venues were also subject to certain vaccination requirements until February and March 2022, respectively. As a result, our venues no longer require guests to provide proof of COVID-19 vaccination before entering (although specific performers may require enhanced protocols).

For Fiscal Year 2021, the majority of ticketed events at our venues were postponed or cancelled. For Fiscal Year 2022 and as of the date of this filing, live events have been permitted to be held at all of our venues and we are continuing to host and book new events. As a result of an increase in cases of a COVID-19 variant, select bookings were postponed or cancelled at our venues in the second and third quarters of Fiscal Year 2022. Variants of COVID-19 that arise in the future may result in additional postponements or cancellations of bookings at our venues.

The impact of the COVID-19 pandemic on our operations also included the partial cancellation of the 2021 production of the *Christmas Spectacular* and the cancellation of the 2020 production of the *Christmas Spectacular*.

The Company has long-term Arena License Agreements with MSG Sports that require the Knicks and Rangers to play their home games at The Garden. As discussed above, capacity restrictions, use limitations and social distancing requirements were in place for the entirety of the Knicks and Rangers 2020-21 regular seasons, which materially impacted the payments we received under the Arena License Agreements for Fiscal Year 2021. On July 1, 2021, the Knicks and Rangers began paying the full amounts provided for under their respective Arena License Agreements. The Knicks and the Rangers each completed their 2021-2022 82-game regular seasons, with the Rangers advancing to the playoffs.

It is unclear to what extent COVID-19 concerns, including with respect to new variants, could result in new government or league-mandated capacity restrictions or vaccination/mask requirements or impact the use of and/or demand for our venues, demand for our sponsorship and advertising assets, deter our employees and vendors from working at our venues (which may lead to difficulties in staffing) or otherwise materially impact our operations.

For more information about the risks to the Company as a result of the COVID-19 pandemic and its impact on our operating results, see "Risk Factors" included in this information statement for further details.

***Sources of Liquidity***

Our primary sources of liquidity are cash and cash equivalents, cash flows from the operations of our businesses and available borrowing capacity under the National Properties Credit Agreement (as defined below). Our principal uses of cash include working capital-related items (including funding our operations), capital spending, and debt service. Our decisions as to the use of our available liquidity will be based upon the ongoing review of the funding needs of the business, the optimal allocation of cash resources, and the timing of cash flow generation. To the extent that we desire to access alternative sources of funding through the capital and credit markets, challenging U.S. and global economic and market conditions could adversely impact our ability to do so at that time.

We regularly monitor and assess our ability to meet our net funding and investing requirements. As of December 31, 2022, the Company's unrestricted cash and cash equivalents balance was $153,496 as compared to $58,102 as of June 30, 2022. As of December 31, 2022 the Company's restricted cash and cash equivalents

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balance was $250 as compared to $4,471 as of June 30, 2022. The principal balance of the Company's total debt outstanding as of December 31, 2022 was $679,100, compared to $679,737 as of June 30, 2022. We believe we have sufficient liquidity from cash and cash equivalents as of December 31, 2022 and future cash flows from operations (including savings generated by the Company's cost reduction program) to fund our operations, and service the National Properties Credit Agreement for the foreseeable future.

See Note 10, Credit Facilities to the Unaudited Combined Interim Financial Statements, and Note 14, Credit Facilities to the Audited Combined Annual Financial Statements included elsewhere in this information statement for a discussion of the National Properties Facilities.

***Financing Agreements***

*National Properties Credit Facilities* 

On June 30, 2022, MSG National Properties, LLC ("MSG National Properties"), MSG Entertainment Group, LLC ("MSG Entertainment Group") and certain subsidiaries of MSG National Properties entered into a credit agreement with JP Morgan Chase Bank, N.A., as administrative agent and the lenders and L/C issuers party thereto (the "National Properties Credit Agreement"), providing for a five-year, $650,000 senior secured term loan facility (the "National Properties Term Loan Facility") and a five-year, $100,000 revolving credit facility (the "National Properties Revolving Credit Facility" and, together with the National Properties Term Loan Facility, the "National Properties Facilities").

Up to $25,000 of the National Properties Revolving Credit Facility is available for the issuance of letters of credit. As of December 31, 2022, outstanding letters of credit were $7,860 and the remaining balance available under the National Properties Revolving Credit Facility was $63,040. As of June 30, 2022, outstanding letters of credit were $6,631 and the remaining balance available under the National Properties Revolving Credit Facility was $70,900.

The principal obligations under the National Properties Term Loan Facility amortizes quarterly in accordance with its terms beginning March 31, 2023 through March 31, 2027, with the balance due at the maturity of the facility on June 30, 2027. The principal obligations under the National Properties Revolving Credit Facility are due at the maturity of the facility. Under certain circumstances, MSG National Properties is required to make mandatory prepayments on loans outstanding, including prepayments in an amount equal to the net cash proceeds of certain sales of assets or casualty insurance and/or condemnation recoveries (subject to certain reinvestment, repair or replacement rights), subject to certain exceptions.

The National Properties Credit Agreement includes financial covenants requiring MSG National Properties and its restricted subsidiaries to maintain a specified minimum liquidity level, a specified minimum debt service coverage ratio and specified maximum total leverage ratio. The minimum liquidity level is set at $50,000, and is tested based on the level of average daily liquidity, consisting of cash and cash equivalents and available revolving commitments, over the last month of each quarter over the life of the National Properties Facilities. The debt service coverage ratio covenant began testing in the fiscal quarter ending December 31, 2022, and is set at a ratio of 2:1 before stepping up to 2.5:1 in the fiscal quarter ending September 30, 2024. The leverage ratio covenant begins testing in the fiscal quarter ending June 30, 2023. It is tested based on the ratio of MSG National Properties and its restricted subsidiaries' consolidated total indebtedness to adjusted operating income, with an initial maximum ratio of 6:1, stepping down to 5.5:1 in the fiscal quarter ending June 30, 2024 and 4.5:1 in the fiscal quarter ending June 30, 2026. As of December 31, 2022 and June 30, 2022, MSG National Properties and its restricted subsidiaries were in compliance with the covenants of the National Properties Credit Agreement.

See Note 10, Credit Facilities to the Unaudited Combined Interim Financial Statements, and Note 14, Credit Facilities to the Audited Combined Annual Financial Statements included elsewhere in this information statement for additional information regarding the National Properties Credit Agreement.

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*<u>Loans receivable from MSG Entertainment</u>*

The Company's captive insurance entity, Eden Insurance Company, Inc. ("Eden"), entered into a loan agreement with MSG Entertainment (the "Eden Loan Agreement"), under which Eden granted MSG Entertainment an unsecured loan bearing interest at a rate of LIBOR plus 350 basis points with a principal amount not exceeding $60,000. This loan is in the form of a demand promissory note, payable immediately upon order from Eden. As of December 31, 2022, June 30, 2022 and June 30, 2021, Eden had an outstanding loan receivable from MSG Entertainment of $52,513, $56,060 and $57,962, respectively, inclusive of accrued interest. During the six months ended December 31, 2022 and Fiscal Year 2022, Eden declared dividends to MSG Entertainment through a reduction of the loan receivable from MSG Entertainment. During the six months ended December 31, 2021 and Fiscal Year 2021, no interest or principal payments were received by Eden and instead the accrued but unpaid interest was added to the outstanding principal amount of the loan. The cash flows related to this loan receivable are reflected as investing activities, as these balances represent amounts loaned by the Company to MSG Entertainment. The Company recorded related party interest income of $1,804, $1,062, $2,117, $1,888 and $2,798 related to the Eden Loan Agreement during the six months ended December 31, 2022 and 2021, and in Fiscal Years 2022, 2021 and 2020, respectively. See Note 14, Related Party Transactions to the Unaudited Combined Interim Financial Statements, and Note 19, Related Party Transactions to the Audited Combined Annual Financial Statements included elsewhere in this information statement for additional information.

**<u>Contractual Obligations</u>**

As of June 30, 2022, the approximate future payments under our contractual obligations are as follows:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Payments Due by Period <sup>(c)</sup>** | **Payments Due by Period <sup>(c)</sup>** | **Payments Due by Period <sup>(c)</sup>** | **Payments Due by Period <sup>(c)</sup>** | **Payments Due by Period <sup>(c)</sup>** |
|  | **Total** | **Year**<br>**1** | **Years**<br>**2-3** | **Years**<br>**4-5** | **More Than**<br>**5 Years** |
|  Leases *<sup>(a)</sup>* | $404502 | $40730 | $75998 | $34075 | $253699 |
|  Debt repayments *<sup>(b)</sup>* | 679737 | 8762 | 32500 | 638475 |  |
|  | $1084239 | $49492 | $108498 | $672550 | $253699 |

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*<sup>(a)</sup>* *Includes contractually obligated minimum lease payments for operating leases having an initial noncancellable term in excess of one year for the Company's venues, including various corporate offices. These commitments are presented exclusive of the imputed interest used to reflect the payment's present value. See Note 10, Leases to the Audited Combined Annual Financial Statements included elsewhere in this information statement for more information.* 

*<sup>(b)</sup>* *See Note 14, Credit Facilities to the Audited Combined Annual Financial, and Note 10, to the Unaudited Combined Interim Financial Statements included elsewhere in this information statement for more information regarding the principal repayments required under the National Properties Credit Agreement.* 

*<sup>(c)</sup>* *Pension obligations have been excluded from the table above as the timing of the future cash payments is uncertain. See Note 15, Pension Plans and Other Postretirement Benefit Plans to the Audited Combined Annual Financial Statements, and Note 11, Pension Plans and Other Postretirement Benefit Plans to the Unaudited Combined Interim Financial Statements included elsewhere in this information statement for more information on the future funding requirements under our pension obligations.* 

As of December 31, 2022, the Company did not have any material changes in its non-cancelable contractual obligations (other than activities in the ordinary course of business). See Note 9, Commitments and Contingencies to the Unaudited Combined Interim Financial Statements, and Note 13, Commitments and Contingencies to the Audited Combined Annual Financial Statements included elsewhere in this information statement for further details on the timing and amount of payments under various agreements.

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**<u>Cash Flow Discussion</u>**

As of December 31, 2022 and June 30, 2022, 2021 and 2020, cash, cash equivalents and restricted cash totaled $153,746, $62,573, $318,069 and $3,038, respectively. The following table summarizes the Company's cash flow activities for the six months ended December 31, 2022 and 2021, and Fiscal Years 2022, 2021 and 2020:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended**<br>**December 31,** | **Six Months Ended**<br>**December 31,** | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** |
|  | **2022** | **2021** | **2022** | **2021** | **2020** |
|  Net income (loss) | $78807 | $(58369) | $(136200) | $(219308) | $170659 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | 53200 | 80574 | 209669 | 65952 | 1861 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in working capital assets and liabilities | (62671) | 35972 | 21882 | 5238 | (140992) |
|  Net cash provided by (used in) operating activities | $69336 | $58177 | $95351 | $(148118) | $31528 |
|  Net cash provided by (used in) investing activities | 22390 | (2791) | 45440 | (10339) | 276388 |
|  Net cash provided by (used in) financing activities | (553) | (141696) | (396287) | 473488 | (315379) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) in cash, cash equivalents and restricted cash | $91173 | $(86310) | $(255496) | $315031 | $(7463) |

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*<u>Operating Activities</u>*

Net cash provided by operating activities for the six months ended December 31, 2022 increased by $11,159 to $69,336 as compared to the prior year period, primarily due to the increase in net income, partially offset by (i) changes in working capital assets and liabilities, which included a decrease in accounts payable, accrued and other current and non-current liabilities, a decrease in deferred revenue associated with customers' advanced payments, a decrease in accounts receivable, net, and an increase in related party receivables, net of payables, (ii) a decrease in net unrealized loss on equity investments with readily determinable fair value, (iii) lower share-based compensation expense, and (iv) gains, net on dispositions recognized in the current year period.

Net cash provided by operating activities for Fiscal Year 2022 increased by $243,469 to $95,351 as compared to Fiscal Year 2021 primarily due to higher positive adjustments in reconciling net income (loss) to net cash provided by (used in) operating activities, which include (i) the add back of net unrealized loss on equity investments with readily determinable fair value in Fiscal Year 2022 compared to an unrealized gain in Fiscal Year 2021, (ii) the add back of the loss on extinguishment of debt in connection with the extinguishment of MSG National Properties' prior term loan facility in Fiscal Year 2022, and (iii) a lower net loss in Fiscal Year 2022 compared to Fiscal Year 2021.

Net cash provided by operating activities for Fiscal Year 2021 decreased by $179,646 to net cash used in operating activities of $148,118 as compared to Fiscal Year 2020 primarily due to (i) a net loss in Fiscal Year 2021 compared to net income in Fiscal Year 2020 and (ii) a higher net unrealized gain on equity investments with readily determinable fair value in Fiscal Year 2021 compared to Fiscal Year 2020, partially offset by the gain on the sale of the Forum in Fiscal Year 2020.

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*<u>Investing Activities</u>*

Net cash provided by investing activities for the six months ended December 31, 2022 increased by $25,181 to $22,390 as compared to the prior year period primarily due to (i) proceeds received from the dispositions of BCE and the corporate aircraft and (ii) proceeds received from the sale of investments, partially offset by the absence of proceeds received from a related party loan receivable in the current year period.

Net cash provided by investing activities for Fiscal Year 2022 increased by $55,779 to $45,440 as compared to Fiscal Year 2021 primarily due to higher proceeds received from related party loans in Fiscal Year 2022 and lower amounts loaned to a related party in Fiscal Year 2022, partially offset by the absence of proceeds from sale of securities investments in Fiscal Year 2022.

Net cash used in investing activities for Fiscal Year 2021 decreased by $286,727 to $10,339 as compared to Fiscal Year 2020 primarily due to (i) proceeds received in Fiscal Year 2020 from the sale of Forum, (ii) proceeds from a loan receivable in Fiscal Year 2020, and (iii) an increase in loans to related parties and decrease in repayments from related parties in Fiscal Year 2021 compared to Fiscal Year 2020, partially offset by a decrease in capital expenditures.

*<u>Financing Activities</u>*

Net cash provided by financing activities for the six months ended December 31, 2022 increased by $141,143 to $553 as compared to the prior year period primarily due to lower net transfers to MSG Entertainment and MSG Entertainment's subsidiaries in the current year period as compared to the prior year period.

Net cash used in financing activities for Fiscal Year 2022 increased by $869,775 to $396,287 as compared to Fiscal Year 2021 primarily due to (i) higher principal repayments for the National Properties Term Loan Facility in Fiscal Year 2022 and (ii) higher net transfers to MSG Entertainment and MSG Entertainment's subsidiaries in Fiscal Year 2022 as compared to Fiscal Year 2021.

Net cash provided by financing activities for Fiscal Year 2021 increased by $788,867 to $473,488 as compared to Fiscal Year 2020 primarily due to (i) proceeds received in Fiscal Year 2021 from the National Properties Term Loan Facility and (ii) lower net transfers to MSG Entertainment and MSG Entertainment's subsidiaries.

**<u>Seasonality of Our Business</u>**

The revenues the Company earns from the *Christmas Spectacular* and arena license fees from MSG Sports in connection with the Knicks' and Rangers' use of The Garden generally means the Company earns a disproportionate share of its revenues and operating income in the second and third quarters of the Company's fiscal year, with the first fiscal quarter being disproportionally lower.

**<u>Recently Issued Accounting Pronouncements and Critical Accounting Estimates</u>**

*Recently Issued and Adopted Accounting Pronouncements* 

See Note 2, Summary of Significant Accounting Policies, to the Audited Combined Annual Financial Statements, and Note 2, Summary of Significant Accounting Policies, to the Unaudited Combined Interim Financial Statements included elsewhere in this information statement for discussion of recently issued accounting pronouncements.

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*Critical Accounting Estimates* 

Critical accounting estimates are those that management believes are the most important to the portrayal of our financial condition and results and require the most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain, especially in light of the current economic environment due to the COVID-19 pandemic. Judgments and uncertainties may result in materially different amounts being reported under different conditions or using different assumptions. In addition to the critical accounting estimates disclosed below, refer to the section above entitled *Proposed Distribution and Basis of Presentation* for further details on corporate allocations recorded in the combined financial statements.

The preparation of the Company's combined financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Management believes its use of estimates in the combined financial statements to be reasonable. The significant accounting policies which we believe are the most critical to aid in fully understanding and evaluating our reported financial results include the following:

*Revenue Recognition — Arrangements with Multiple Performance Obligations* 

The Company enters into arrangements with multiple performance obligations, such as multi-year sponsorship agreements which may derive revenues for both the Company as well as MSG Sports within a single arrangement. The Company also derives revenue from similar types of arrangements which are entered into by MSG Sports. Payment terms for such arrangements can vary by contract, but payments are generally due in installments throughout the contractual term. The performance obligations included in each sponsorship agreement vary and may include advertising and other benefits such as, but not limited to, signage at The Garden and the Company's other venues, digital advertising, and event or property specific advertising, as well as non-advertising benefits such as suite licenses and event tickets. To the extent the Company's multi-year arrangements provide for performance obligations that are consistent over the multi-year contractual term, such performance obligations generally meet the definition of a series as provided for under the accounting guidance. If performance obligations are concluded to meet the definition of a series, the contractual fees for all years during the contract term are aggregated and the related revenue is recognized proportionately as the underlying performance obligations are satisfied.

The timing of revenue recognition for each performance obligation is dependent upon the facts and circumstances surrounding the Company's satisfaction of its respective performance obligation. The Company allocates the transaction price for such arrangements to each performance obligation within the arrangement based on the estimated relative standalone selling price of the performance obligation. The Company's process for determining its estimated standalone selling prices involves management's judgment and considers multiple factors including company specific and market specific factors that may vary depending upon the unique facts and circumstances related to each performance obligation. Key factors considered by the Company in developing an estimated standalone selling price for its performance obligations include, but are not limited to, prices charged for similar performance obligations, the Company's ongoing pricing strategy and policies, and consideration of pricing of similar performance obligations sold in other arrangements with multiple performance obligations.

The Company may incur costs such as commissions to obtain its multi-year sponsorship agreements. The Company assesses such costs for capitalization on a contract by contract basis. To the extent costs are capitalized, the Company estimates the useful life of the related contract asset which may be the underlying contract term or the estimated customer life depending on the facts and circumstances surrounding the contract. The contract asset is amortized over the estimated useful life.

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*Impairment of Long-Lived and Indefinite-Lived Assets* 

The Company's long-lived and indefinite-lived assets accounted for approximately 67% and 72% of the Company's combined total assets as of December 31, 2022 and June 30, 2022, respectively, and consisted of the following:

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| | | |
|:---|:---|:---|
|  | **December 31,<br>2022** | **June 30,<br>2022** |
|  Goodwill | $69041 | $69041 |
|  Indefinite-lived intangible assets | 63801 | 63801 |
|  Amortizable intangible assets, net of accumulated amortization |  | 1638 |
|  Property and equipment, net | 649962 | 696079 |
|  Right-of-use lease assets | 255024 | 271154 |
|  | $1037828 | $1101713 |

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In assessing the recoverability of the Company's long-lived and indefinite-lived assets when there is an indicator of potential impairment, the Company must make estimates and assumptions regarding future cash flows and other factors to determine the fair value of the respective assets. These estimates and assumptions could have a significant impact on whether an impairment charge is recognized as well as the magnitude of any such charge. Fair value estimates are made at a specific point in time, based on relevant information. These estimates are subjective in nature and involve significant uncertainties and judgments and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. If these estimates or material related assumptions change in the future, the Company may be required to record impairment charges related to its long-lived and/or indefinite-lived assets.

*Goodwill* 

Goodwill is tested annually for impairment as of August 31 and at any time upon the occurrence of certain events or substantive changes in circumstances. The Company performs its goodwill impairment test at the reporting unit level. As of December 31, 2022, the Company has one reportable segment, consistent with the way management makes decisions and allocates resources to the business.

The Company has the option to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred. If the Company can support the conclusion that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company would not need to perform a quantitative impairment test for that reporting unit. If the Company cannot support such a conclusion or the Company does not elect to perform the qualitative assessment, the first step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill.

The estimate of the fair value of the Company's reporting unit is primarily determined using discounted cash flows, comparable market transactions or other acceptable valuation techniques, including the cost approach. These valuations are based on estimates and assumptions including projected future cash flows, discount rates, cost-based assumptions, determination of appropriate market comparables and the determination of whether a premium or discount should be applied to comparables. Significant judgments inherent in a discounted cash flow analysis include the selection of the appropriate discount rate, the estimate of the amount and timing of projected future cash flows and identification of appropriate continuing growth rate assumptions. The discount rates used in the analysis are intended to reflect the risk inherent in the projected future cash flows. The amount of an impairment loss is measured as the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill.

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The Company elected to perform the qualitative assessment of impairment for the Company's reporting unit for the periods presented in the Combined Financial Statements. This assessment considered factors such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• macroeconomic conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• industry and market considerations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cost factors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• overall financial performance of the reporting unit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other relevant company-specific factors such as changes in management, strategy or customers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• relevant reporting unit specific events such as changes in the carrying amount of net assets.

On August 31, 2022, the Company performed its most recent annual impairment test of goodwill and determined that there was no impairment of goodwill identified for its reporting unit as of the impairment test date. Based on this impairment test, the Company's reporting unit had a sufficient safety margin, representing the excess of the estimated fair value of the reporting unit, derived from the most recent quantitative assessment, less its respective carrying value (including goodwill). The Company believes that if the fair value of the reporting unit exceeds its carrying value by greater than 10%, a sufficient safety margin has been realized.

Amortizable intangible assets and other long-lived assets are grouped and evaluated for impairment at the lowest level for which there are identifiable cash flows that are independent from cash flows from other assets and liabilities. In determining whether an impairment of long-lived assets has occurred, the Company considers both qualitative and quantitative factors. The quantitative analysis involves estimating the undiscounted future cash flows directly related to that asset group and comparing the resulting value against the carrying value of the asset group. If the carrying value of the asset group is greater than the sum of the undiscounted future cash flows, an impairment loss is recognized for the difference between the carrying value of the asset group and its estimated fair value.

*Identifiable Indefinite-Lived Intangible Assets* 

Identifiable indefinite-lived intangible assets are tested annually for impairment as of August 31st and at any time upon the occurrence of certain events or substantive changes in circumstances. The following table sets forth the amount of identifiable indefinite-lived intangible assets reported in the Company's combined balance sheets as of December 31, 2022 and June 30, 2022:

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| | | |
|:---|:---|:---|
|  | **December 31,<br>2022** | **June 30,<br>2022** |
|  Trademarks | $61881 | $61881 |
|  Photographic related rights | 1920 | 1920 |
|  | $63801 | $63801 |

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The Company has the option to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred. In the qualitative assessment, the Company must evaluate the totality of qualitative factors, including any recent fair value measurements, that impact whether an indefinite-lived intangible asset other than goodwill has a carrying amount that more likely than not exceeds its fair value. The Company must proceed to conducting a quantitative analysis, if the Company (i) determines that such an impairment is more likely than not to exist, or (ii) forgoes the qualitative assessment entirely. Under the quantitative assessment, the impairment test for identifiable indefinite-lived intangible assets consists of a comparison of the estimated fair value of the intangible asset with its carrying value. If the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. For all periods presented, the Company elected to perform the qualitative assessment of impairment for the photographic

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related rights and the trademarks. These assessments considered the events and circumstances that could affect the significant inputs used to determine the fair value of the intangible asset. Examples of such events and circumstances include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cost factors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• financial performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• legal, regulatory, contractual, business or other factors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other relevant company-specific factors such as changes in management, strategy or customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• industry and market considerations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• macroeconomic conditions.

On August 31, 2022, the Company performed its most recent annual impairment test of identifiable indefinite-lived intangible assets, and there were no impairments identified. Based on these impairment tests, the Company's indefinite-lived intangible assets had sufficient safety margins, representing the excess of each identifiable indefinite-lived intangible asset's estimated fair value over its respective carrying value. The Company believes that if the fair value of an indefinite-lived intangible asset exceeds its carrying value by greater than 10%, a sufficient safety margin has been realized.

*Other Long-Lived Assets* 

For other long-lived assets, including intangible assets that are amortized, the Company evaluates assets for recoverability when there is an indication of potential impairment. If the undiscounted cash flows from a group of assets being evaluated is less than the carrying value of that group of assets, the fair value of the asset group is determined and the carrying value of the asset group is written down to fair value.

The estimated useful lives and net carrying values of the Company's intangible assets subject to amortization as of December 31, 2022 and June 30, 2022 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Estimated<br>Useful Lives** | **December 31,**<br>**2022** | **June 30,<br>2022** |
|  Trade names | 7 years | $– $| 361 |
|  Festival rights | 7 years | – | 1154 |
|  Other intangibles | 15 years | – | 123 |
|  |  | $– $| 1638 |

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The Company has recognized intangible assets for trade names, festival rights and other intangibles as a result of purchase accounting. The Company has determined that these intangible assets have finite lives.

The useful lives of the Company's long-lived assets are based on estimates of the period over which the Company expects the assets to be of economic benefit to the Company. In estimating the useful lives, the Company considers factors such as, but not limited to, risk of obsolescence, anticipated use, plans of the Company, and applicable laws and permit requirements. In light of these facts and circumstances, the Company has determined that its estimated useful lives are appropriate.

See Note 1, Description of Business and Basis of Presentation to the Unaudited Combined Interim Financial Statements, and Note 1, Description of Business and Basis of Presentation to the Audited Combined Annual Financial Statements included elsewhere in this information statement for discussion of additional consideration related to the preparation of the combined financial statements.

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**CORPORATE GOVERNANCE AND MANAGEMENT** 

**Corporate Governance** 

*General* 

We will apply to list our Class A Common Stock on the NYSE under the symbol "MSGE" (and change our name to "Madison Square Garden Entertainment Corp.") and we expect that Madison Square Garden Entertainment Corp. will change its symbol on the NYSE to "SPHR" (and be renamed "MSG Sphere Corp.") in connection with the Distribution. As a result, we are generally subject to NYSE corporate governance listing standards.

A listed company that meets NYSE's definition of a "controlled company" may elect not to comply with certain of these requirements. Holders of MSG Entertainment Class B Common Stock who are members of the Dolan Family Group entered into a Stockholders Agreement relating to, among other things, the voting of their shares of MSG Entertainment Class B Common Stock and filed a Schedule 13D with the SEC as a "group" under the rules of the SEC. We have been informed that prior to the Distribution, the members of the Dolan Family Group will enter into a similar Stockholders Agreement with respect to the voting of their shares of the Class B Common Stock that will be issued in the Distribution. As a result, following the Distribution, we will be a "controlled company." As a controlled company, we will have the right to elect not to comply with the corporate governance rules of the NYSE requiring: (i) a majority of independent directors on our Board, (ii) an independent corporate governance and nominating committee and (iii) an independent compensation committee. Our Board of Directors has elected for the Company to be treated as a "controlled company" under NYSE corporate governance rules and not to comply with the NYSE requirement for a majority-independent board of directors and for a corporate governance and nominating committee because of our status as a controlled company. Nevertheless, we expect our Board of Directors to elect to comply with the NYSE requirement for an independent compensation committee.

*Corporate Governance Guidelines* 

Our Board of Directors will adopt our Corporate Governance Guidelines ("Governance Guidelines"). These guidelines set forth our practices and policies with respect to Board composition and selection, Board meetings, executive sessions of the Board, Board committees, the expectations we have of our directors, selection of the Executive Chairman and the Chief Executive Officer, management succession, Board and executive compensation, and Board self-assessment requirements. The full text of our Governance Guidelines may be viewed at our website at www.msgentertainment.com under Investors — Governance — Corporate Governance. A copy may be obtained by writing to MSGE Spinco, Inc., Two Pennsylvania Plaza, New York, NY 10121; Attention: Corporate Secretary.

*Executive Sessions of Non-Management and Independent Board Members* 

Under our Governance Guidelines, either our directors who are not also executive officers of our Company (the "non-management directors") or our directors who are independent under the NYSE rules are required to meet regularly in executive sessions with no members of management present. If non-management directors who are not independent participate in these executive sessions, the independent directors under the NYSE rules are required to meet separately in executive sessions at least once each year. The non-management or independent directors may specify the procedure to designate the director who may preside at any such executive session.

*Communicating with Our Directors* 

Our Board will adopt policies designed to allow our stockholders and other interested parties to communicate with our directors. Any interested party who wishes to communicate directly with the Board or any director or the non-management directors as a group should send communications in writing to the Chairman of

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the Audit Committee, MSGE Spinco, Inc., Two Pennsylvania Plaza, New York, NY 10121. Any person, whether or not an employee, who has a concern with respect to our accounting, internal accounting controls, auditing issues or other matters, may, in a confidential or anonymous manner, communicate those concerns to our Audit Committee by contacting the MSG Entertainment Integrity Hotline, which is operated by a third-party service provider, at 1-877-756-4306 or www.msg.ethicspoint.com.

*Code of Conduct and Ethics* 

Our Board will adopt a Code of Conduct and Ethics for our directors, officers and employees. A portion of this Code of Conduct and Ethics also serves as a code of conduct and ethics for our senior financial officers, including our principal accounting officer and controller. Among other things, our Code of Conduct and Ethics covers conflicts of interest, disclosure responsibilities, legal compliance, reporting and compliance with the Code of Conduct and Ethics, confidentiality, corporate opportunities, fair dealing, protection and proper use of Company assets and equal employment opportunity and harassment. The full text of the Code of Conduct and Ethics is available on our website at investor.msgentertainment.com under Investors — Governance — Corporate Governance. In addition, a copy may be obtained by writing to MSGE Spinco, Inc., Two Pennsylvania Plaza, New York, NY 10121; Attention: Corporate Secretary.

**Our Directors** 

The following individuals are expected to be elected to serve as directors of the Company commencing on the Distribution date:

*Directors Elected by Class A Common Stockholders* 

In connection with the Distribution, it is expected that Messrs. Bandier and Salerno will resign as directors of MSG Entertainment elected by holders of MSG Entertainment's Class A Common Stock effective as of, and contingent upon the occurrence of, the Distribution. We expect the following individuals to be elected, prior to the Distribution, as directors of the Company, and to be designated as directors elected by the Class A Common Stockholders.

MARTIN BANDIER, 81, has served as the President and Chief Executive Officer of Bandier Ventures LP, a music publishing and recorded music acquisition company, since 2019, and a director of MSG Entertainment since 2020. It is expected that Mr. Bandier will no longer serve as a director of MSG Entertainment following the Distribution. Previously, Mr. Bandier served as Chairman and Chief Executive Officer of Sony/ATV Music Publishing, a music publishing company, from 2007 to 2019, Chairman and Chief Executive Officer of EMI Music Publishing Worldwide, a music publishing company, from 1991 to 2006 and Vice Chairman from 1989 to 1991. Mr. Bandier has served as a director of the Songwriters Hall of Fame since 1975 and as a trustee of Syracuse University since 2006 and is a 1994 Arents Award winner. In 2006, Mr. Bandier founded The Bandier Program for Music and Entertainment Industries, a music and entertainment industry degree program, at Syracuse University that has become a leading music business program. Mr. Bandier previously served as a director and Vice President of the National Music Publishers' Association from 1992 to 2019, as a director of the American Society of Composers, Authors, and Publishers (ASCAP) from 2007 to 2018 and as a trustee of the T.J. Martell Foundation from 1993 to 1998. His civic and industry commitments also include extensive involvement with the City of Hope. Mr. Bandier brings to the Board his more than 30 years in the entertainment industry, including his leadership roles in music publishing companies and recognition with many industry awards including numerous Publisher of the Year awards from ASCAP and BMI, the GRAMMY's President's Merit Award in 2015 and the Visionary Leadership Award from the Songwriter's Hall of Fame in 2019.

DONNA COLEMAN, 66, was the Interim Chief Financial Officer of AMC Networks from October 2020 to January 2021. Previously, Ms. Coleman was Executive Vice President and Chief Financial Officer of MSG

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Sports from October 2015 to December 2019, the Interim Chief Financial Officer of MSG Networks from May 2015 until September 2015, and Executive Vice President, Corporate Financial Planning and Control of Cablevision 2012 to 2014. Prior to that, she was Senior Vice President, Corporate Financial Planning and Control of Cablevision from 2011 to 2012 and Senior Vice President, Planning and Operations of Cablevision from 2000 to 2011. Ms. Coleman served as a director of the Garden of Dreams Foundation from 2016 to 2019 and as a Director of Tribeca Enterprises LLC from 2015 to 2019. Ms. Coleman brings to the Board her prior experiences as Executive Vice President and Chief Financial Officer of The Madison Square Garden Company, and as Interim Chief Financial Officer of AMC Networks and MSG Networks, as well as experience in various financial positions with Cablevision.

FREDERIC V. SALERNO, 79, has served as a director of MSG Entertainment since 2020 and Associated Capital Group, Inc., an alternative investment management business, since 2017. It is expected that Mr. Salerno will no longer serve as a director of MSG Entertainment following the Distribution. Mr. Salerno previously served as a director of Intercontinental Exchange, Inc., which owns and operates exchanges for financial and commodity markets, from 2002 to May 2022, and Lead Independent Director from 2008 to May 2022, and as a director of Akamai Technologies, Inc., a provider of web-based technology services, from 2002 to 2021, Chairman of the Board from 2018 to 2021 and Lead Independent Director from 2013 to 2018. Mr. Salerno also served as Vice Chairman and Chief Financial Officer of Verizon Communications, Inc., a provider of communications services, from 1991 to 2002, and in various other senior management positions with Verizon and its predecessors prior to that time. Mr. Salerno previously served as a director of MSG Sports from 2019 to 2020, National Fuel Gas Company from 2008 to 2013, CBS Corporation from 2007 to 2016, Viacom, Inc. from 1996 to 2017 and FCB Financial Holdings, Inc. from 2010 to 2019. Mr. Salerno brings to the Board his experience as a senior executive and director of other public companies and his knowledge of the media and entertainment industry.

*Directors Elected by Class B Common Stockholders* 

The following individual is currently a director of the Company and is expected to continue to serve as a director elected by the Class B Common Stockholders at the time of the Distribution:

JAMES L. DOLAN, 67, has been a director of the Company since December 20, 2022 and the Executive Chairman and Chief Executive Officer of the Company since December 21, 2022. Mr. Dolan has served as a director, the Executive Chairman and Chief Executive Officer of MSG Entertainment since November 2019, as a director and the Executive Chairman of MSG Sports since 2015 and as Interim Executive Chairman (since December 2022) and a director (since 2011) of AMC Networks. He served as Non-Executive Chairman of AMC Networks from September 2020 to December 2022. Mr. Dolan was a director and the Executive Chairman of MSG Networks from 2009 until the Networks Merger in July 2021, the Chief Executive Officer of MSG Sports from 2017 to April 2020, and the Chief Executive Officer of Cablevision Systems Corporation ("Cablevision") from 1995 to 2016. He was President of Cablevision from 1998 to 2014; Chief Executive Officer of Rainbow Media Holdings, Inc., a former programming subsidiary of Cablevision that spun off in 2011 to become AMC Networks, from 1992 to 1995; and Vice President of Cablevision from 1987 to 1992. In addition, Mr. Dolan previously served as a director of Cablevision from 1991 to 2016. James L. Dolan is the son of Charles F. Dolan, the father of Charles P. Dolan, Quentin F. Dolan and Ryan T. Dolan, the brother of Marianne Dolan Weber and Thomas C. Dolan, the brother-in-law of Brian G. Sweeney and the cousin of Paul J. Dolan. Mr. Dolan brings to the Board his experience as Executive Chairman and Chief Executive Officer of MSG Entertainment, as Executive Chairman and former Chief Executive Officer of MSG Sports, as well as experience in various positions with Cablevision, including as its Chief Executive Officer, and in various positions with MSG Networks and its predecessors since 1999, including as Executive Chairman, as well as the knowledge and experience he has gained about MSG Entertainment's businesses and contributions he has made during his tenure as a director of MSG Entertainment, MSG Sports, MSG Networks, AMC Networks and Cablevision.

We expect the following individuals to be elected, prior to the Distribution, as directors of the Company, and to be designated as directors elected by the Class B Common Stockholders.

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CHARLES F. DOLAN, 96, has served as a director and Chairman Emeritus of AMC Networks since 2011 and 2020, respectively. He served as Executive Chairman of AMC Networks from 2011 to September 2020 and Chairman of Cablevision from 1985 to 2016. He was Chief Executive Officer of Cablevision from 1985 to 1995. Mr. Dolan founded and acted as the General Partner of Cablevision's predecessor from 1973 to 1985 and established Manhattan Cable Television in 1961 and Home Box Office in 1971. In addition to AMC Networks, Mr. Dolan has served as a director of MSG Entertainment since 2020, MSG Sports since 2015, and previously served as a director of MSG Networks from 2009 until the Networks Merger in July 2021 and Cablevision from 1985 to 2016. Charles F. Dolan is the father of James L. Dolan, Marianne Dolan Weber and Thomas C. Dolan, the father-in-law of Brian G. Sweeney, the uncle of Paul J. Dolan and the grandfather of Charles P. Dolan, Quentin F. Dolan and Ryan T. Dolan. Mr. Dolan brings to the Board his experience in the cable television and cable programming industries, as well as his experience as founder of Cablevision, his previous service as Chairman and Chief Executive Officer of Cablevision and its predecessors, his service as Executive Chairman and Chairman Emeritus of AMC Networks, as well as the knowledge and experience he has gained about MSG Entertainment's businesses and contributions he has made during his tenure as a director of MSG Entertainment, MSG Sports, MSG Networks, AMC Networks and Cablevision.

CHARLES P. DOLAN, 35, has been an employee of Knickerbocker Group LLC since 2010. Mr. Dolan has served as a director of MSG Entertainment since 2020 and MSG Sports since 2015, and previously served as a director of MSG Networks from 2010 to 2015. He is a graduate of New York University and has significant familiarity with the business of the Company as a member of the third generation of Cablevision's founding family. Mr. Dolan is the son of James L. Dolan, the brother of Quentin F. Dolan and Ryan T. Dolan, the grandson of Charles F. Dolan, the nephew of Marianne Dolan Weber, Thomas C. Dolan and Brian G. Sweeney and the cousin of Paul J. Dolan. Mr. Dolan brings to the Board his familiarity with the MSG Entertainment's businesses, being a member of the third generation of Cablevision's founding family, as well as the knowledge and experience he has gained and the contributions he has made during his tenure as a director of MSG Entertainment, MSG Sports and MSG Networks.

MARIANNE DOLAN WEBER, 65, has been President of Heartfelt Wings Foundation Inc. since 2015, and a Member of the Board of Green Mountain Foundation Inc. since 2015. Ms. Dolan Weber currently serves as the manager of MLC Ventures LLC and served as Chairman of both the Dolan Family Foundation and the Dolan Children's Foundation from 1999 to 2011 and Vice Chairman and Director of the Dolan Family Office, LLC from 1997 to 2011. Ms. Dolan Weber has served as a director of AMC Networks since June 2022, MSG Entertainment since 2020 and MSG Sports since 2016. She previously served as a director of AMC Networks from 2011 to June 2021, Cablevision from 2005 to 2016 and MSG Networks from 2010 to 2014. Marianne Dolan Weber is the daughter of Charles F. Dolan, the sister of James L. Dolan and Thomas C. Dolan, the sister-in-law of Brian G. Sweeney, the cousin of Paul J. Dolan and the aunt of Charles P. Dolan, Quentin F. Dolan and Ryan T. Dolan. Ms. Dolan Weber brings to the Board her experience as a member of Cablevision's founding family and as former Chairman of the Dolan Family Foundation and her experience as the former Vice Chairman of the Dolan Family Office, LLC, as well as the knowledge and experience she has gained about MSG Entertainment's businesses and contributions she has made during her tenure as a director of MSG Entertainment, MSG Sports, MSG Networks, AMC Networks and Cablevision.

PAUL J. DOLAN, 64, is the Chairman and Chief Executive Officer of the Cleveland Guardians Major League Baseball ("MLB") team since 2010. Mr. Dolan was President of the Cleveland Guardians from 2004 to 2010 and Vice President and General Counsel from 2000 to 2004. Mr. Dolan has served on multiple committees of the MLB and is currently serving on the MLB's Long Range Planning Committee, Ownership Committee and Diversity and Inclusion Committee as well as serving on the Executive Council. Mr. Dolan has been a director and member of the Executive Compensation Committee of The J.M. Smucker Company since 2006 and served as the Chair of the Executive Compensation Committee from 2017 until August 2022. Additionally, Mr. Dolan has served as a director of MSG Entertainment since 2020, MSG Sports since 2019 and Dix & Eaton, a privately-owned communications and public relations firm, since 2014. Mr. Dolan previously served as a director of MSG Networks from 2015 until the Networks Merger in July 2021 and Cablevision from 2015 to 2016. Mr. Dolan was

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Chairman and Chief Executive Officer of Fast Ball Sports Productions, a sports media company, from 2006 through 2012. Paul J. Dolan is the nephew of Charles F. Dolan, the cousin of James L. Dolan, Thomas C. Dolan, Marianne Dolan Weber, Charles P. Dolan, Quentin F. Dolan and Ryan T. Dolan and the cousin by marriage of Brian G. Sweeney. Mr. Dolan brings to the Board his extensive business and management experience in the sports and media industries, his experience as a member of Cablevision's founding family, the experience he has gained during his tenure as a director of MSG Entertainment, MSG Sports, MSG Networks and of Cablevision, and his service on the board of other public and private companies.

QUENTIN F. DOLAN, 28, has been Investment Director of MSG Sports since 2022 and has served as a director of MSG Sports since 2021 and MSG Entertainment since 2020. Mr. Dolan is a graduate of New York University. Mr. Dolan previously served as a director of MSG Networks from 2015 to June 2020 and has held internship positions at Grubman Shire & Meiselas, P.C. and Azoff MSG Entertainment, LLC. Quentin F. Dolan is the son of James L. Dolan, the brother of Charles P. Dolan and Ryan T. Dolan, the grandson of Charles F. Dolan, the nephew of Marianne Dolan Weber, Thomas C. Dolan and Brian G. Sweeney, and the cousin of Paul J. Dolan. Mr. Dolan brings to the Board his familiarity with MSG Entertainment's businesses as a member of the third generation of Cablevision's founding family, as well as the knowledge and experience he has gained and the contributions he has made during his tenure as a director of MSG Sports and MSG Networks.

RYAN T. DOLAN, 33, has served as Vice President, Interactive Experiences of MSG Ventures, a wholly-owned subsidiary of MSG Entertainment, since June 2019, and previously served as its Director, Interactive Experiences from 2016 to June 2019. Mr. Dolan has played an integral role in the growth and development of MSG Ventures' interactive gaming initiatives and has significant familiarity with the business of MSG Entertainment as a member of the third generation of Cablevision's founding family. Mr. Dolan has served as a director of MSG Entertainment since 2020 and MSG Sports since 2019. Mr. Dolan is the son of James L. Dolan, the brother of Charles P. Dolan and Quentin F. Dolan, the grandson of Charles F. Dolan, the nephew of Marianne Dolan Weber, Thomas C. Dolan and Brian G. Sweeney and the cousin of Paul J. Dolan. Mr. Dolan brings to the Board his familiarity with MSG Entertainment's businesses as a member of the third generation of Cablevision's founding family, as well as the knowledge and experience he has gained about MSG Entertainment's businesses as an employee of MSG Ventures and a key contributor to MSG Entertainment's growth strategy, and his service as a director of MSG Sports.

THOMAS C. DOLAN, 70, served as Executive Vice President — Strategy and Development, Office of the Chairman of Cablevision from 2008 to 2016. He was Chief Executive Officer of Rainbow Media Corp. from 2004 to 2005; and previously served in various roles at Cablevision, including: Executive Vice President and Chief Information Officer from 2001 until 2005, Senior Vice President and Chief Information Officer from 1996 to 2001, Vice President and Chief Information Officer from 1994 to 1996, General Manager of Cablevision's East End Long Island cable system from 1991 to 1994, and System Manager of Cablevision's East End Long Island cable system from 1987 to 1991. Mr. Dolan has served as a director of MSG Entertainment since 2020, MSG Sports since 2015 and AMC Networks since 2011, and previously served as a director of MSG Networks from 2010 until the Networks Merger in July 2021 and Cablevision from 2007 to 2016. Mr. Dolan is the son of Charles F. Dolan, the brother of James L. Dolan and Marianne Dolan Weber, the brother-in-law of Brian G. Sweeney, the cousin of Paul J. Dolan and the uncle of Charles P. Dolan, Quentin F. Dolan and Ryan T. Dolan. Mr. Dolan brings to the Board his experience as a member of Cablevision's founding family and in various positions with Cablevision, as well as the knowledge and experience he has gained about MSG Entertainment's businesses and contributions he has made during his tenure as a director of MSG Entertainment, MSG Sports, MSG Networks, AMC Networks and Cablevision.

BRIAN G. SWEENEY, 58, served as the President of Cablevision from 2014 and President and Chief Financial Officer of Cablevision from 2015 to 2016. Previously, Mr. Sweeney served in various other roles at Cablevision, including: Senior Executive Vice President, Strategy and Chief of Staff from 2013 to 2014; Senior Vice President — Strategic Software Solutions from 2012 to 2013; and Senior Vice President — eMedia from January 2000 to 2012. Mr. Sweeney has served as a director of MSG Entertainment since 2020, MSG Sports

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since 2015 and AMC Networks since 2011 and previously served as a director of MSG Networks from 2010 until the Networks Merger in July 2021 and Cablevision from 2005 to 2016. Brian G. Sweeney is the son-in-law of Charles F. Dolan, the brother-in-law of James L. Dolan, Marianne Dolan Weber, and Thomas C. Dolan, the cousin by marriage of Paul J. Dolan and the uncle of Charles P. Dolan, Quentin F. Dolan and Ryan T. Dolan. Mr. Sweeney brings to the Board his experience in various positions with Cablevision, as well as the knowledge and experience he has gained about MSG Entertainment's businesses and contributions he has made during his tenure as a director of MSG Entertainment, MSG Sports, MSG Networks, AMC Networks, and Cablevision.

The term of office of our directors will expire at the next annual meeting of stockholders and until their successors have been elected and qualified and at each succeeding annual meeting after that. The business address for each director is c/o MSGE Spinco, Inc., Two Pennsylvania Plaza, New York, NY 10121 and each director is a citizen of the United States. We will encourage our directors to attend annual meetings of stockholders and believe that attendance at annual meetings is just as important as attendance at meetings of the Board.

Because we did not have any operations in fiscal year 2022, our Board did not hold any meetings during that year.

*Overlapping Directors* 

Immediately following the Distribution, there will be certain overlap between members of the Company's Board of Directors who also hold positions at MSG Entertainment, MSG Sports and AMC Networks. Nine of the members of the Board of Directors including James L. Dolan, Charles F. Dolan, Charles P. Dolan, Paul J. Dolan, Thomas C. Dolan, Brian G. Sweeney, Ryan T. Dolan, Quentin F. Dolan, and Marianne Dolan Weber will also serve as directors of MSG Entertainment, nine members of the Board including James L. Dolan, Charles F. Dolan, Charles P. Dolan, Paul J. Dolan, Thomas C. Dolan, Brian G. Sweeney, Ryan T. Dolan, Quentin F. Dolan, and Marianne Dolan Weber will serve as directors of MSG Sports and five members of the Board, including James L. Dolan, Charles F. Dolan, Thomas C. Dolan, Brian G. Sweeney, and Marianne Dolan Weber will serve as directors of AMC Networks. In addition, Charles F. Dolan will serve as Chairman Emeritus of AMC Networks concurrently with his service on our Board. There will be no overlap of Class A Directors as between MSG Entertainment and the Company.

*Director Compensation* 

A director who is a Company employee will receive no extra compensation for serving as a director. Each non-employee director will receive a base cash retainer of $75,000 per year, $15,000 annually per committee membership and $25,000 annually per committee chairmanship. In addition, we will reimburse our directors for reasonable expenses in connection with attendance at Board, committee and stockholder meetings.

We will also pay our non-employee directors additional compensation in restricted stock units. Each year, each non-employee director will receive a grant of restricted stock units for the number of shares of common stock equal to $160,000 divided by the average closing price over the twenty-trading-day period concluding on the date immediately preceding the grant date. The restricted stock units the non-employee directors will receive will be fully vested on the date of grant but will remain subject to a holding requirement until the first business day following 90 days after service on the Board ceases (other than in the event of a director's death, in which case the restricted stock units will be settled as soon as practicable). Such compensation will be made pursuant to our Stock Plan for Non-Employee Directors. Please see "Executive Compensation — Our Equity Compensation Plan Information — Our Stock Plan for Non-Employee Directors" for information concerning our Director Stock Plan.

Non-employee directors have the ability to make a non-revocable annual election to defer all cash compensation (annual cash retainer and, if applicable, committee fees) to be earned in the next calendar year into restricted stock units. Grants of restricted stock units in lieu of cash compensation are determined by dividing the value of the applicable director's total annual cash compensation by the average closing price over the twenty-trading-day period

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concluding on the date immediately preceding the grant date (February 15 or the next succeeding business day). Restricted stock units are fully vested on the date of grant but remain subject to a holding requirement until the first business day following 90 days after service on the Board ceases (other than in the event of a director's death, in which case they are settled as soon as practicable), at which time they are settled in stock or, at the Compensation Committee's election, in cash. Such equity grants are made pursuant to the Company's 2023 Stock Plan for Non-Employee Directors (the "Director Stock Plan").

*Board Committees* 

The Board has two permanent committees: the Audit Committee and the Compensation Committee.

*Audit Committee* 

At the time of the Distribution, our Audit Committee will consist of three members. The primary purposes and responsibilities of our Audit Committee are to: (a) assist the Board (i) in its oversight of the integrity of our financial statements, (ii) in its oversight of our compliance with legal and regulatory requirements, (iii) in assessing our independent registered public accounting firm's qualifications and independence, and (iv) in assessing the performance of our internal audit function and independent registered public accounting firm; (b) appoint, compensate, retain, oversee and terminate the Company's independent registered public accounting firm and pre-approve, or adopt appropriate procedures to pre-approve, all audit and non-audit services, if any, to be provided by the independent registered public accounting firm; (c) review the appointment and replacement of the head of our internal audit department and to review and coordinate the agenda, scope, priorities, plan and authority of the internal audit department; (d) establish procedures for the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls or auditing matters and for the confidential, anonymous submission by Company employees or any provider of accounting-related services of concerns regarding questionable accounting and auditing matters and review of submissions and the treatment of any such complaints; (e) review and approve related party transactions that are required to be disclosed under SEC rules or that require such approval under the Company's Related Party Transaction Approval Policy (if the Audit Committee is then serving as the Independent Committee under such policy); (f) conduct and review with the Board an annual self-assessment of the Audit Committee; (g) prepare any report of the Audit Committee required by the rules and regulations of the SEC for inclusion in our annual proxy statement; (h) review and reassess the Audit Committee charter at least annually; (i) report to the Board on a regular basis; and (j) oversee corporate risks, including cybersecurity and venue security, and provide periodic updates to the Board on such oversight activities. The text of our Audit Committee charter is available on our website at investor.msgentertainment.com under Investors — Corporate Governance. A copy may be obtained by writing to MSGE Spinco, Inc., Two Pennsylvania Plaza, New York, NY 10121; Attention: Corporate Secretary.

We expect our Board of Directors to determine that each member of our Audit Committee is "independent" within the meaning of the rules of both the NYSE and the SEC, and that each has not participated in the preparation of the financial statements of the Company or any current subsidiary of the Company at any time during the past three years and is able to read and understand fundamental financial statements, including balance sheets, income statements and cash flow statements. All directors we add to the Audit Committee in the future will also meet those standards. We expect our Board to also determine that at least one member of our Audit Committee is an "audit committee financial expert" within the meaning of the rules of the SEC.

Our Board has established a procedure whereby complaints or concerns with respect to accounting, internal controls, auditing and other matters may be submitted to the Audit Committee. This procedure is described under "Communicating with Our Directors" above.

Our Audit Committee did not exist in fiscal year 2022.

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*Compensation Committee* 

At the time of the Distribution, our Compensation Committee will consist of not less than two members. The primary purposes of our Compensation Committee are to: (a) establish our general compensation philosophy and, in consultation with management, oversee the development and implementation of compensation programs; (b) review and approve corporate goals and objectives relevant to the compensation of our Chief Executive Officer and our other executive officers who are required to file reports with the SEC under Section 16 of the Exchange Act (together with the Chief Executive Officer, the "Senior Employees"), evaluate their performance in light of these goals and objectives and determine and approve their compensation based upon that evaluation; (c) approve any new equity compensation plan or material changes to an existing plan; (d) oversee the activities of the committee or committees administering our retirement and benefit plans; (e) in consultation with management, oversee regulatory compliance with respect to compensation matters including overseeing the Company's policies on structuring compensation programs to preserve tax deductibility; (f) determine and approve any severance or similar termination payments to be made to Senior Employees (current or former); (g) determine the components and amount of Board compensation and review such determinations from time to time in relation to other similarly situated companies; (h) prepare any reports of the Compensation Committee to be included in the Company's annual proxy statement in accordance with the applicable rules and regulations of the SEC; (i) conduct and review with the Board an annual self-assessment of the Compensation Committee; and (j) report to the Board on a regular basis, but not less than annually.

The Compensation Committee will review the performance of the Senior Employees, evaluate their performance in light of those goals and objectives and, either as a committee or together with any other independent directors (as directed by the Board), will determine and approve the Senior Employees' compensation level based on this evaluation. In determining the long-term incentive component of our Chief Executive Officer's compensation, the Compensation Committee will consider, among other factors, the Company's performance and relative stockholder return, the value of similar incentive awards to Chief Executive Officers at comparable companies and the awards given to the Chief Executive Officer in past years.

The Compensation Committee may, in its discretion, delegate a portion of its duties and responsibilities to one or more subcommittees of the Compensation Committee. For example, the Compensation Committee may delegate the approval of certain transactions to a subcommittee consisting solely of members of the Compensation Committee who are "non-employee directors" for the purposes of Rule 16b-3 issued by the SEC under the Exchange Act. The Compensation Committee may also engage outside compensation consultants to assist in the performance of its duties and responsibilities. The text of our Compensation Committee charter is available on our website at investor.msgentertainment.com under Investors — Governance — Corporate Governance. A copy may be obtained by writing to MSGE Spinco, Inc., Two Pennsylvania Plaza, New York, NY 10121; Attention: Corporate Secretary.

We expect our Board of Directors to determine that each member of our Compensation Committee is "independent" under the rules of the NYSE.

Our Compensation Committee did not exist in fiscal year 2022.

*Absence of Nominating Committee* 

We will not have a nominating committee. We believe that it is appropriate not to have a nominating committee because of our stockholder voting structure. Under the terms of our amended and restated certificate of incorporation, the holders of our Class B Common Stock will have the right to elect 75% of the members of our Board. Our Governance Guidelines provide a mechanism for the selection of nominees for election as directors by the holders of our Class A Common Stock ("Class A Directors") and by the holders of our Class B Common Stock ("Class B Directors"). The holders of our Class A Common Stock are currently entitled to elect 25% of the members of our Board. Under our Governance Guidelines, nominees for election as Class A Directors

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shall be recommended to the Board by the Class A Directors then in office who were elected by the holders of our Class A Common Stock. Nominees for election as Class B Directors shall be recommended to our Board by the Class B Directors then in office who were elected by the holders of the Class B Common Stock.

Our directors have not set specific, minimum qualifications that nominees must meet in order for them to be nominated for election to the Board, but rather believe that each nominee should be evaluated based on his or her individual merits, taking into account, among other matters, the factors set forth in our Governance Guidelines under "Board Composition" and "Selection of Directors." Those factors include:

• The desire to have a Board that encompasses a broad range of skills, expertise, industry knowledge, diversity of
viewpoints, opinions, background and experience, and contacts relevant to our business;

• Personal qualities and characteristics, accomplishments and reputation in the business community;

• Ability and willingness to commit adequate time to Board and committee matters; and

• The fit of the individual's skill and personality with those of other directors and potential directors in
building a Board that is effective, collegial and responsive to the needs of our Company.

The Class A Directors will evaluate possible candidates to recommend to the Board for nomination as Class A Directors and suggest individuals for the Board. The Board will consider nominees for Class A Directors recommended by our stockholders. Nominees recommended by stockholders will be given appropriate consideration in the same manner as other nominees. Stockholders who wish to submit nominees for consideration by the Board for election at our annual meeting of stockholders may do so by submitting in writing such nominees' names, in compliance with the procedures and along with the other information required by our by-laws. Any such nominee must be submitted to the Corporate Secretary of the Company, at MSGE Spinco, Inc., Two Pennsylvania Plaza, New York, NY 10121 not less than 60 or more than 90 days prior to the date of our annual meeting of stockholders, provided that if the date of the meeting is publicly announced or disclosed less than 70 days prior to the date of the meeting, such notice must be given not more than 10 days after such date is first announced or disclosed.

The Class B Directors will consult from time to time with one or more of the holders of Class B Common Stock to ensure that all Class B Director nominees recommended to the Board are individuals who will make a meaningful contribution as Board members and will be individuals likely to receive the approving vote of the holders of a majority of the outstanding Class B Common Stock. The Class B Directors do not intend to consider unsolicited suggestions of nominees by holders of our Class A Common Stock. We believe that this is appropriate in light of the voting provisions of our amended and restated certificate of incorporation which vest exclusively in the holders of our Class B Common Stock the right to elect our Class B Directors.

*Other Committees* 

In addition to standing committees, the Company has adopted a policy whereby a committee of our Board of Directors consisting entirely of independent directors (an "Independent Committee") will review and approve transactions with Other Entities in which the value or expected value of the transaction or arrangement exceeds $1,000,000. The Independent Committee will also review and approve or take such other action as it may deem appropriate with respect to transactions involving the Company and its subsidiaries, on the one hand, and in which any director, executive officer, greater than 5% stockholder of the Company or any other "related person" as defined in Item 404 of Regulation S-K adopted by the SEC ("Item 404") has or will have a direct or indirect material interest. This approval requirement covers any transaction that meets the related party disclosure requirements of the SEC as set forth in Item 404, which currently apply to any transaction (or any series of similar transactions) in which the amount involved exceeds $120,000. The policy does not cover decisions on compensation or benefits or the hiring or retention of executive officers. The hiring or retention of executive officers is determined by our full Board of Directors. Compensation of executive officers is subject to the approval of our Compensation Committee. This policy also does not cover any pro rata distributions to all

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Company stockholders, including a pro rata distribution of our Class A Common Stock to holders of our Class A Common Stock and our Class B Common Stock to holders of our Class B Common Stock. No director on an Independent Committee will participate in the consideration of a related party transaction with that director or any related person of that director.

Our amended by-laws will provide for the formation of an Executive Committee of the Board of Directors which would have the power to exercise all of the powers and authority of the Board in the management of the business and affairs of the Company, except as limited by the Delaware General Corporation Law. Our Board has not formed an Executive Committee, although it could do so in the future.

Our by-laws also permit the Board of Directors to appoint other committees of the Board from time to time which would have such powers and duties as the Board properly determines.

**Our Executive Officers** 

The following individuals are executive officers of the Company and are expected to continue to serve as our executive officers at the time of the Distribution. Additional executive officers may be appointed prior to the Distribution. It is expected that in connection with the Distribution, Messrs. Byrnes, Haughton and D'Ambrosio, and Ms. Zeppetella, will cease to serve as executive officers of MSG Entertainment.

JAMES L. DOLAN, 67, has been a director of the Company since December 20, 2022 and the Executive Chairman and Chief Executive Officer of the Company since December 21, 2022. Mr. Dolan has served as a director, the Executive Chairman and Chief Executive Officer of MSG Entertainment since November 2019, as a director and the Executive Chairman of MSG Sports since 2015 and as Interim Executive Chairman (since December 2022) and a director (since 2011) of AMC Networks. He served as Non-Executive Chairman of AMC Networks from September 2020 to December 2022. Mr. Dolan was a director and the Executive Chairman of MSG Networks from 2009 until the Networks Merger in July 2021, the Chief Executive Officer of MSG Sports from 2017 to April 2020, and the Chief Executive Officer of Cablevision from 1995 to 2016. He was President of Cablevision from 1998 to 2014; Chief Executive Officer of Rainbow Media Holdings, Inc., a former subsidiary of Cablevision that spun off in 2011 to become AMC Networks, from 1992 to 1995; and Vice President of Cablevision from 1987 to 1992. In addition, Mr. Dolan previously served as a director of Cablevision from 1991 until its sale in 2016.

DAVID F. BYRNES, 52, has served as the Executive Vice President and Chief Financial Officer of the Company since February 13, 2023 and has been the Executive Vice President and Chief Financial Officer of MSG Entertainment since January 2022. It is expected that he will no longer serve as the Executive Vice President and Chief Financial Officer of MSG Entertainment following the Distribution. Mr. Byrnes previously served as Executive Vice President, Corporate Finance of ViacomCBS (now known as Paramount Global), a media and entertainment company, from December 2019 to January 2022, where he was primarily responsible for the company's budgeting, forecasting and long-range strategic planning processes and oversaw the corporate, technology and finance integration and transformation finance teams. From 2008 through the merger of CBS and Viacom in 2019, Mr. Byrnes held various financial leadership positions at CBS, including Senior Vice President, Controller and Chief Accounting Officer; Senior Vice President, Internal Audit; Senior Vice President, Finance, CBS Technology; Vice President, Finance at Simon & Schuster; and Vice President, Corporate Development. Prior to joining CBS, Mr. Byrnes held various financial leadership positions at Automatic Data Processing, including Divisional CFO and Vice President of Financial Reporting and Policy. Mr. Byrnes began his career in the audit practice at KPMG LLP ("KPMG"), a U.S. professional services firm providing audit, tax and advisory services, where he worked for 11 years.

JAMAL H. HAUGHTON, 48, has served as the Executive Vice President, General Counsel and Secretary of the Company since February 13, 2023 and has been the Executive Vice President and General Counsel of MSG Entertainment since December 2021. It is expected that he will no longer serve as the Executive Vice

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President and General Counsel of MSG Entertainment following the Distribution. Mr. Haughton previously served as the Senior Vice President and General Counsel of Samsung Electronics America, Inc. ("Samsung"), a global leader in consumer electronics and technology, as Samsung's chief legal officer for the U.S. from March 2016 to December 2021. As a member of Samsung's executive management team, he was responsible for providing counsel to the Chief Executive Officer and other senior leadership on all legal matters affecting Samsung and its subsidiaries, including commercial transactions, regulatory matters, litigation, risk management and employment issues, among others. Prior to Samsung, Mr. Haughton served in various roles at Cablevision, including Senior Vice President, Associate General Counsel and Assistant Secretary from 2014 to 2016, Senior Vice President and Associate General Counsel from 2011 to 2013 and Vice President and Associate General Counsel from 2006 to 2010. At Cablevision, Mr. Haughton provided ongoing legal counsel to the Board of Directors and senior executive management on corporate governance, public company reporting, corporate finance and major strategic company-wide corporate transactions. Before serving at Cablevision, Mr. Haughton was a corporate associate at Cravath, Swaine & Moore LLP from 1999 to 2006, where he specialized in domestic and cross-border mergers and acquisitions, corporate finance and securities law matters.

PHILIP G. D'AMBROSIO, 55, has served as the Senior Vice President and Treasurer of the Company since February 13, 2023 and has been the Senior Vice President and Treasurer of MSG Entertainment since 2019. It is expected that he will no longer serve as the Senior Vice President and Treasurer of MSG Entertainment following the Distribution. He also served as Secretary of MSG Entertainment from March 2020 to December 2020 and as Interim Chief Financial Officer from March 2020 to April 2020. Mr. D'Ambrosio previously served as Senior Vice President, Treasurer, of MSG Sports from October 2018 to April 2020 and Senior Vice President, Tax and Treasury, of MSG Sports from 2016 through October 2018. Prior to joining MSG Sports, Mr. D'Ambrosio was Senior Vice President, Tax, of Cablevision from 2002 through 2016. Prior to that, Mr. D'Ambrosio was a partner at Ernst & Young. Mr. D'Ambrosio has served as a director of the Broadband Tax Institute since 2005 and the Bucknell University Parents Association since February 2019, and as a trustee of the Rye Historical Society since 2018.

COURTNEY M. ZEPPETELLA, 46, has served as the Senior Vice President, Controller and Chief Accounting Officer of the Company since February 13, 2023 and has been the Senior Vice President, Controller and Chief Accounting Officer of MSG Entertainment since May 2022. It is expected that she will no longer serve as the Senior Vice President, Controller and Chief Accounting Officer of MSG Entertainment following the Distribution. Prior to joining MSG Entertainment, Ms. Zeppetella served as Partner at KPMG from 2012 to April 2022. In that role, she was primarily responsible for the global coordination and execution of financial statement audits and audits of internal control over financial reporting for SEC registrants. She also led the resolution of highly technical, complex accounting and financial reporting issues and provided strategic input to senior executives, audit committees and board members with respect to regulatory updates, cybersecurity and risk management. Ms. Zeppetella has substantial experience with SEC rules, U.S. generally accepted accounting principles, and Sarbanes-Oxley 404 internal controls. Prior to her role as Audit Partner, Ms. Zeppetella served in numerous roles at KPMG.

*Overlapping Officers* 

Immediately following the Distribution, James L. Dolan will also serve as the Executive Chairman and Chief Executive Officer of both the Company and MSG Entertainment and as the Executive Chairman of MSG Sports. James L. Dolan also currently serves as Interim Executive Chairman of AMC Networks.

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**EXECUTIVE COMPENSATION** 

**Introduction** 

This section presents information concerning compensation arrangements for our named executive officers. We present historical and current fiscal year information concerning the compensation from MSG Entertainment of Mr. James L. Dolan, our Executive Chairman and Chief Executive Officer; David F. Byrnes, our Executive Vice President and Chief Financial Officer; Jamal H. Haughton, our Executive Vice President and General Counsel; Philip G. D'Ambrosio, our Senior Vice President and Treasurer; and Courtney M. Zeppetella, our Senior Vice President, Controller and Chief Accounting Officer for the fiscal year ended June 30, 2022.

**The historical compensation information, including in particular the information set forth below under "— Historical Compensation Information," is not directly relevant to the compensation that these officers will receive from the Company.** 

Each of our named executive officers holds various long-term incentive awards that were granted by MSG Entertainment. Treatment of these in the Distribution is described under "— Treatment of Outstanding Awards."

**Compensation Discussion & Analysis** 

This Compensation Discussion & Analysis provides a discussion of MSG Entertainment's compensation philosophy and 2022 fiscal year compensation from MSG Entertainment for our NEOs (as defined below). MSG Entertainment's compensation philosophy may be relevant to the Company because it is anticipated that the elements of our compensation will be similar to the elements of MSG Entertainment's compensation. Our Compensation Committee will review the impact of the Distribution and will review all aspects of compensation and make any appropriate adjustments.

For purposes of this Compensation Discussion & Analysis, the Company's named executive officers are James L. Dolan, David F. Byrnes, Jamal H. Haughton, Philip G. D'Ambrosio, and Courtney M. Zeppetella. These individuals are referred to as Named Executive Officers ("NEOs"). Mr. Dolan is also a named executive officer of MSG Entertainment and will continue as an officer of MSG Entertainment following the Distribution.

**Executive Summary** 

***MSG Entertainment's Executive Compensation Program Objectives and Philosophy***

Given the unique nature of its business, MSG Entertainment places great importance on its ability to attract, retain, motivate and reward experienced executive officers who can drive its business objectives and achieve strong financial, operational and stock price performance, as well as long-term value creation. The compensation committee of the board of directors of MSG Entertainment ("MSG Entertainment's Compensation Committee" or the "MSG Entertainment Compensation Committee") has designed executive compensation policies and programs that are consistent with, explicitly linked to, and supportive of the financial and strategic objectives of growing MSG Entertainment's businesses and driving long-term stockholder value.

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MSG Entertainment's Compensation Committee has designed a program that reflects four key overarching executive compensation principles:

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| | |
|:---|:---|
| **Principle** | **Implementation<sup>(1)</sup>** |
| **A significant portion of compensation opportunities should be at risk.** | • The majority of executive compensation is at risk and based on MSG Entertainment stockholder returns as well as MSG Entertainment's performance against predetermined financial performance targets. |
| **Long-term performance incentives should generally outweigh short-term performance incentives.** | • Incentive compensation focuses more heavily on MSG Entertainment's long-term rather than short-term accomplishments and results. |
| **Executive officers should be aligned with stockholders through equity compensation.** | • Equity-based compensation comprises a substantial portion of executive compensation, ensuring alignment with MSG Entertainment's stockholder interests. |
| **The compensation structure should enable MSG Entertainment to attract, retain, motivate and reward the best talent in a competitive industry.** | • MSG Entertainment's overall executive compensation program is competitive, equitable and thoughtfully structured so as to attract, retain, motivate and reward talent.<br>• MSG Entertainment's Compensation Committee focuses on total direct compensation, as well as individual compensation elements when providing competitive compensation opportunities. |

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(1) Excludes any one-time awards, including awards granted in connection
with commencement of employment.

In designing MSG Entertainment's executive compensation program, MSG Entertainment's Compensation Committee seeks to fulfill these objectives by maintaining appropriate balances between (1) short-term and long-term compensation, (2) cash and equity compensation, and (3) performance-based and time-based vesting of compensation.

***Elements of MSG Entertainment's Compensation Program***

MSG Entertainment compensated the NEOs through base salary, annual incentive awards, long-term incentive awards, perquisites and benefit programs, as applicable. MSG Entertainment's annual and long-term incentive programs provide performance-based incentives for such NEOs tied to key financial and strategic measures that generate long-term stockholder value and reward sustained achievement of MSG Entertainment's key financial goals. MSG Entertainment considers Total MSG Entertainment Net Revenue (defined below) and AOI to be the key measures of MSG Entertainment's operating performance. As such, MSG Entertainment's Compensation Committee has reflected these performance measures in its annual incentive awards and long-term incentive performance equity awards, along with other specific strategic and operating measures. MSG Entertainment's long-term incentive program also includes restricted stock units whose value is tied to the performance of the market value of MSG Entertainment's Class A Common Stock. Ms. Zeppetella, who joined MSG Entertainment effective as of May 2, 2022, was not eligible to receive annual incentive awards or long-term incentive awards during the fiscal year ended June 30, 2022.

The table below summarizes the elements of MSG Entertainment's compensation program for the 2022 fiscal year and how each element was linked to MSG Entertainment's performance. The MSG Entertainment

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Compensation Committee, after considering the advice of its independent compensation consultant, approved certain changes to the elements of MSG Entertainment's compensation program for the 2023 fiscal year, which are described further below under "— MSG Entertainment's Compensation Program Practices and Policies — Changes to Fiscal Year 2023 Compensation Program."

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|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> **Component** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> **Component** | <br> **Performance Link** | <br> **Performance Link** | <br> **Description**<br>|
| &nbsp;&nbsp;&nbsp; **Base**<br> **Salary** | Cash | • Fixed level of compensation determined primarily based on the role, job performance and experience<br>• Intended to compensate the NEOs for day-to-day services performed | • Fixed level of compensation determined primarily based on the role, job performance and experience<br>• Intended to compensate the NEOs for day-to-day services performed | • Fixed level of compensation determined primarily based on the role, job performance and experience<br>• Intended to compensate the NEOs for day-to-day services performed |
| &nbsp;&nbsp;&nbsp;**Annual Incentive** | Cash | <br> Financial (50%) | Total MSG Entertainment Net Revenue (40%) | <br> • Performance-based cash incentive opportunity<br>• Designed to be based on the achievement of pre-determined financial and strategic performance measures approved by the MSG Entertainment Compensation Committee |
| &nbsp;&nbsp;&nbsp;**Annual Incentive** | Cash | <br> Financial (50%) | MSG Entertainment AOI (60%) | <br> • Performance-based cash incentive opportunity<br>• Designed to be based on the achievement of pre-determined financial and strategic performance measures approved by the MSG Entertainment Compensation Committee |
| &nbsp;&nbsp;&nbsp;**Annual Incentive** | Cash | <br> Strategic (50%)<br>| Strategic Objectives<br>| <br> • Performance-based cash incentive opportunity<br>• Designed to be based on the achievement of pre-determined financial and strategic performance measures approved by the MSG Entertainment Compensation Committee |
| &nbsp;&nbsp;&nbsp; **Long-**<br> **Term Incentive** | Performance Stock Units (50%) | <br> Total MSG Entertainment Net Revenue (50%) | <br> Total MSG Entertainment Net Revenue (50%) | <br> • Financial performance targets are pre-determined by the MSG Entertainment Compensation Committee to incentivize strong execution of MSG Entertainment's strategy and long-term financial goals<br>• Cliff-vest after three years to the extent that financial performance targets measured in the last year of the three-year period are achieved |
| &nbsp;&nbsp;&nbsp; **Long-**<br> **Term Incentive** | Performance Stock Units (50%) | <br> MSG Entertainment Business<br>Unit AOI (50%) | <br> MSG Entertainment Business<br>Unit AOI (50%) | <br> • Financial performance targets are pre-determined by the MSG Entertainment Compensation Committee to incentivize strong execution of MSG Entertainment's strategy and long-term financial goals<br>• Cliff-vest after three years to the extent that financial performance targets measured in the last year of the three-year period are achieved |
| &nbsp;&nbsp;&nbsp; **Long-**<br> **Term Incentive** | Restricted Stock Units (50%) | <br> Stock Price Performance | <br> Stock Price Performance | <br> • Share-based award establishes direct alignment with MSG Entertainment stock price performance and stockholder interests<br>• Vest ratably over three years |

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***MSG Entertainment's 2022 Fiscal Year Annual Compensation Opportunities Mix***

As described above, MSG Entertainment's compensation program is designed with significant long-term performance-based and at-risk components. For the 2022 fiscal year, a substantial majority of the NEOs' MSG

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Entertainment compensation was at risk, with a majority of at-risk compensation granted in the form of long-term equity-based awards.

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|:---|:---|
| **Executive Chairman and Chief Executive**<br> **Officer Pay Mix<sup>(1)(2)</sup>** | **Average NEO Pay Mix<sup>(1)(2)</sup>**<br> (excluding Executive Chairman and Chief Executive Officer) |
| <br> ![LOGO](g357108g13n17.jpg)  | <br> ![LOGO](g357108g13n18.jpg)  |

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(1) Reflects the allocation of base salary, annual target bonus opportunity, and long-term incentive award target
value as set forth in the NEOs' employment agreements with MSG Entertainment for the 2022 fiscal year.

(2) Sum of compensation elements or the "At-Risk" value shown may
not add to 100% (or "At-Risk" value) due to rounding.

**MSG Entertainment's Sound Compensation Governance Practices** 

MSG Entertainment's executive compensation program is overseen by the wholly independent MSG Entertainment Compensation Committee, with the support of an independent compensation consultant and independent legal counsel. MSG Entertainment maintains a compensation program with strong governance features, including:

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| |
|:---|
| **MSG Entertainment's Compensation Practices** |
| Substantial proportion of standard annual compensation is at risk (89% for the Executive Chairman and Chief Executive Officer and 67% on average for the other NEOs) |
| Short- and long-term incentives earned based on the achievement of objective, pre-determined performance goals |
| Stockholder feedback considered in MSG Entertainment's Compensation Committee review of compensation program |
| Anti-hedging/pledging policies |
| No excise tax gross-up provisions |
| Review of tally sheets for each NEO by MSG Entertainment's Compensation Committee at least annually |
| Fully independent MSG Entertainment Compensation Committee oversight of compensation decisions |
| MSG Entertainment's Compensation Committee utilizes support of an independent compensation consultant and independent legal counsel. |

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**MSG Entertainment's Compensation Program Practices and Policies** 

The following discussion describes the practices and policies implemented by MSG Entertainment's Compensation Committee during the fiscal year ended June 30, 2022. For the 2022 fiscal year, compensation for each NEO was subject to an employment agreement approved by MSG Entertainment's Compensation Committee.

During fiscal year 2022, MSG Entertainment entered into a new multi-year employment agreement with Mr. Dolan, effective as of August 1, 2021. The prior employment agreement with MSG Entertainment had been entered into at the time of the spin-off of MSG Entertainment in April 2020, with a scheduled expiration date on the first anniversary of the spin-off. The MSG Entertainment Compensation Committee was responsible for overseeing matters relating to the new agreement and was advised by the MSG Entertainment Compensation Committee's independent compensation consultant and represented in the negotiations by the MSG Entertainment Compensation Committee's independent legal counsel. Prior to the Networks Merger, Mr. Dolan was employed as Executive Chairman of MSG Networks pursuant to the terms of a multi-year employment agreement that continued to apply following the Networks Merger (but which has been superseded by the terms of Mr. Dolan's new agreement with MSG Entertainment). In the course of their review, the independent compensation consultant provided the MSG Entertainment Compensation Committee with broad market data (both industry-related and general industry data) on multi-year arrangements involving executive chairman and chief executive officer positions, information relating to the terms of Mr. Dolan's employment agreement with MSG Networks, as well as other information relating to MSG Entertainment's performance and operations and other internal executive compensation data. The MSG Entertainment Compensation Committee's review also took into account various other factors, including MSG Entertainment's overall objectives and philosophy of its executive compensation program, the components of the proposed compensation arrangement, Mr. Dolan's extensive experience and history with MSG Entertainment and its predecessors and affiliates, his in-depth knowledge of MSG Entertainment's business and key involvement in the Sphere initiatives, his leadership and relationship with senior management and the overall scope and responsibilities of his role as Executive Chairman and Chief Executive Officer.

***Role of the MSG Entertainment Compensation Committee***

MSG Entertainment's Compensation Committee administers MSG Entertainment's executive compensation program. The responsibilities of MSG Entertainment's Compensation Committee are set forth in its charter. Among other responsibilities, MSG Entertainment's Compensation Committee: (1) establishes MSG Entertainment's general compensation philosophy and, in consultation with management, oversees the development and implementation of MSG Entertainment's compensation programs; (2) reviews and approves corporate goals and objectives relevant to the compensation of MSG Entertainment's executive officers who are required to file reports with the SEC under Section 16(a) of the Exchange Act, evaluates their performance in light of those goals and objectives, and determines and approves their respective compensation levels based on this evaluation; (3) oversees the activities of the committee or committees administering MSG Entertainment's retirement and benefit plans; and (4) administers MSG Entertainment's equity-based compensation plans.

***Role of the Independent MSG Entertainment Compensation Consultant***

MSG Entertainment's Compensation Committee has authority under its charter to engage outside consultants to assist in the performance of its duties and responsibilities. MSG Entertainment's Compensation Committee utilizes the services of ClearBridge Compensation Group LLC (the "MSG Entertainment independent compensation consultant"), an independent compensation consultant, to assist in determining whether the elements of MSG Entertainment's executive compensation program are reasonable and consistent with MSG Entertainment's objectives.

The MSG Entertainment independent compensation consultant collaborates with independent legal counsel to the MSG Entertainment Compensation Committee and reports directly to MSG Entertainment's Compensation

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Committee and, at the request of MSG Entertainment's Compensation Committee, the MSG Entertainment independent compensation consultant meets with members of MSG Entertainment's management from time to time for the purpose of gathering information on management proposals and recommendations to be presented to MSG Entertainment's Compensation Committee.

With respect to compensation matters for the fiscal year ended June 30, 2022, the services provided by the MSG Entertainment independent compensation consultant to MSG Entertainment's Compensation Committee included:

• Attending all MSG Entertainment's Compensation Committee meetings;

• Providing information, research, and analysis pertaining to MSG Entertainment's executive compensation
program for the 2022 fiscal year;

• Regularly updating MSG Entertainment's Compensation Committee on market trends, changing practices, and
legislation pertaining to compensation;

• Assisting MSG Entertainment's Compensation Committee in making pay determinations for MSG
Entertainment's executive officers;

• Assisting MSG Entertainment's Compensation Committee in connection with the entry into new employment
agreements with certain of MSG Entertainment's named executive officers;

• Advising on the design of MSG Entertainment's executive compensation program and the reasonableness of
individual compensation targets and awards;

• Conducting a compensation risk assessment;

• Advising on compensation matters in connection with the Networks Merger;

• Providing advice and recommendations that incorporate both market data and company-specific factors; and

• Assisting MSG Entertainment's Compensation Committee in connection with its review and update to its non-employee director compensation program.

During the 2022 fiscal year, the MSG Entertainment independent compensation consultant provided no services to MSG Entertainment other than those provided to MSG Entertainment's Compensation Committee.

MSG Entertainment's Compensation Committee charter requires MSG Entertainment's Compensation Committee to consider the NYSE independence factors before receiving advice from an advisor, despite the fact that such independence rules are not applicable to controlled companies. For the fiscal year ended June 30, 2022, MSG Entertainment's Compensation Committee concluded that the MSG Entertainment independent compensation consultant satisfies the independence requirements of the NYSE rules. In addition, MSG Entertainment's Compensation Committee believed that the MSG Entertainment independent compensation consultant's work did not raise any conflicts of interest during the fiscal year ended June 30, 2022. In reaching this conclusion, MSG Entertainment's Compensation Committee considered the same rules regarding advisor independence.

***Role of MSG Entertainment Executive Officers in Determining Compensation***

MSG Entertainment's Compensation Committee reviews the performance and compensation of MSG Entertainment's Executive Chairman and Chief Executive Officer and, following discussions with the MSG Entertainment independent compensation consultant, establishes his compensation. MSG Entertainment's senior management assists MSG Entertainment's Compensation Committee and the MSG Entertainment independent compensation consultant as described in this Compensation Discussion & Analysis, and provides to MSG Entertainment's Compensation Committee, either directly or through the MSG Entertainment independent compensation consultant, management's recommendations on the compensation for MSG Entertainment's

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executive officers other than the Executive Chairman and Chief Executive Officer. Other members of MSG Entertainment's management provide support to MSG Entertainment's Compensation Committee as needed. Based upon a review of performance and historical compensation, recommendations and information from members of MSG Entertainment's management, and recommendations and discussions with the MSG Entertainment independent compensation consultant, MSG Entertainment's Compensation Committee determines and approves compensation for its executive officers.

***MSG Entertainment's Performance Objectives***

As described below under "— Elements of MSG Entertainment's Compensation Program," performance-based incentive compensation is an important element of MSG Entertainment's executive compensation program.

Generally, MSG Entertainment's Compensation Committee has historically based the performance objectives for MSG Entertainment's incentive compensation on Total MSG Entertainment Net Revenue and AOI. MSG Entertainment considers these performance objectives to be key measures of MSG Entertainment's operating performance, and currently expects to follow this practice in the future.

MSG Entertainment defines "Total MSG Entertainment Net Revenue" as MSG Entertainment's total revenue for all business units other than specified divisions where direct contribution is the measure used, in which cases Total MSG Entertainment Net Revenue includes the direct contribution of those units. Direct contribution is revenue less event-related expenses. In those instances, MSG Entertainment's management believes direct contribution serves as a more meaningful measure of revenue.

MSG Entertainment defines "AOI," which is a non-U.S. GAAP financial measure, as MSG Entertainment's operating income (loss) before (i) adjustments to remove the impact of non-cash straight-line leasing revenue associated with Arena License Agreements, (ii) depreciation, amortization and impairments of property and equipment, goodwill and intangible assets, (iii) amortization for capitalized cloud computing arrangement costs, (iv) share-based compensation expense, (v) restructuring charges or credits, (vi) merger and acquisition related costs, including litigation expenses, (vii) gains or losses on sales or dispositions of businesses and associated settlements, (viii) the impact of Purchase Accounting Adjustments related to business acquisitions, and (ix) gains and losses related to the remeasurement of liabilities under MSG Entertainment's executive deferred compensation plan (which was established in November 2021). "MSG Entertainment Business Unit AOI" is based upon the AOI of MSG Entertainment's business segments less unallocated corporate business unit expenses such as public company costs and merger and acquisition support, subject to certain adjustments.

The performance measures used for purposes of annual incentives or long-term awards may contemplate certain potential future adjustments and exclusions.

***Tally Sheets***

MSG Entertainment's Compensation Committee has reviewed tally sheets prepared by the MSG Entertainment independent compensation consultant, setting forth all components of compensation payable, and the benefits accruing, to the NEOs including all cash compensation, benefits, perquisites and the current value of outstanding equity-based awards. The tally sheets also set forth potential payouts to such NEOs upon various termination scenarios.

***Determining MSG Entertainment Compensation Levels; Benchmarking***

As part of the MSG Entertainment Compensation Committee's review of the total compensation for the fiscal year ended June 30, 2022, the MSG Entertainment independent compensation consultant assisted MSG Entertainment's Compensation Committee in: (1) determining if a peer group should be used for comparative

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purposes, (2) assessing executive compensation in light of internal and external considerations and (3) reviewing MSG Entertainment's equity and cash-based executive incentive programs, taking into account evolving market trends. MSG Entertainment's Compensation Committee, in consultation with the MSG Entertainment independent compensation consultant, considered broad market data (both industry-related and general industry data) and multiple broad-based compensation surveys in order to appropriately assess compensation levels.

For the fiscal year ended June 30, 2022, MSG Entertainment's Compensation Committee, in consultation with the MSG Entertainment independent compensation consultant, determined not to utilize a peer group or target positioning in determining compensation given the limited number of comparable publicly-traded companies.

In addition to the market data listed above, MSG Entertainment's Compensation Committee considered internal information (historical compensation, job responsibility, experience, parity among executive officers, contractual commitments and attraction and retention of talent) to determine compensation.

***Elements of MSG Entertainment's Compensation Program***

MSG Entertainment's executive compensation philosophy is reflected in the principal elements of its executive compensation program, each of which is important to MSG Entertainment's goal of attracting, retaining, motivating and rewarding highly-qualified executive officers. MSG Entertainment's compensation program included the following key elements for the fiscal year ended June 30, 2022: base salary, annual cash incentives, long-term incentives, retirement, health and welfare and other benefits, which are generally provided to all other eligible employees of MSG Entertainment, and additional executive officer benefits, including post-termination compensation under certain circumstances and certain perquisites, each as described below.

A significant percentage of total direct compensation is allocated to incentive compensation in accordance with the philosophy of MSG Entertainment's Compensation Committee. MSG Entertainment's Compensation Committee reviews historical compensation, other information provided by the MSG Entertainment independent compensation consultant and other factors, such as experience, performance, length of service and contractual commitments, to determine the appropriate level and mix of compensation for its executive officers. The allocation between cash and equity compensation and between short-term and long-term compensation is designed to provide a variety of fixed and at-risk compensation that is related to the achievement of MSG Entertainment's short-term and long-term objectives.

Mr. Dolan is also employed by MSG Sports as its Executive Chairman. Mr. Dolan receives separate compensation from MSG Sports with respect to such employment. Prior to the Networks Merger, Mr. Dolan was also employed by MSG Networks, and he received separate compensation from MSG Networks during the 2021 fiscal year. While the MSG Entertainment Compensation Committee was aware that Mr. Dolan also received compensation for services rendered to MSG Sports, its own compensation decisions were based on its independent assessment and application of the compensation goals and objectives of MSG Entertainment. The compensation program and philosophies discussed in this information statement reflect only compensation that is paid by MSG Entertainment for services rendered to MSG Entertainment, except as otherwise noted.

See "— Key Elements of 2023 Expected Compensation from the Company" below for information regarding the compensation expected to be paid by the Company to our NEOs following the Distribution.

*Base Salaries* 

MSG Entertainment's Compensation Committee is responsible for setting the base salaries of its executive officers, which are intended to compensate them for the day-to-day services that they perform for MSG Entertainment. MSG Entertainment set the base salaries for these executive officers at levels that are intended to reflect the competitive marketplace in attracting and retaining quality executive officers. The employment

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agreements between MSG Entertainment and the executive officers contain a minimum base salary level. MSG Entertainment's Compensation Committee reviews the salaries of its executive officers at least annually. MSG Entertainment's Compensation Committee may adjust base salaries for its executive officers over time, based on their performance and experience and in accordance with the terms of their employment agreements.

The MSG Entertainment base salary rates for Messrs. Dolan, Byrnes, Haughton and D'Ambrosio and Ms. Zeppetella in the fiscal year ended June 30, 2022 were as follows: $2,000,000, $800,000, $1,100,000, $680,000 and $550,000, respectively. See footnote 1 to "— Historical Compensation Information — Summary Compensation Table" for additional information regarding the base salaries paid by MSG Entertainment to our NEOs during its fiscal year. MSG Entertainment's Compensation Committee determined salaries for the NEOs after evaluation of MSG Entertainment and individual performance, market pay levels, the range of increases generally provided to MSG Entertainment's employees and, to the extent appropriate, MSG Entertainment management's recommendations.

*Annual Cash Incentives* 

*<u>Overview</u>*

MSG Entertainment's annual cash incentives earned for performance in the 2022 fiscal year were determined by performance against goals established by the MSG Entertainment Compensation Committee under the MSG Entertainment's Management Performance Incentive Plan ("MPIP"). Under the MPIP, eligible members of management were provided an opportunity to earn an annual cash award. The size of the bonus pool was based on performance measures tied to Total MSG Entertainment Net Revenue and MSG Entertainment AOI targets for the 2022 fiscal year as well as certain pre-determined strategic objectives.

This annual incentive was designed to link executive compensation directly to MSG Entertainment's performance by providing incentives and rewards based upon business performance during the applicable fiscal year.

MPIP awards to all eligible employees were conditioned upon the satisfaction of predetermined financial and strategic objectives. For the 2022 fiscal year, MSG Entertainment applied a business function-specific weighting system, with the weighting between financial and strategic objectives for each business function depending on the specific challenges and desired focus of that function. MSG Entertainment had 12 business functions in fiscal year 2022 including: MSG Networks, Productions, Live, Marketing Partnerships, Venue Operations, MSG Ventures, MSG Studios and Corporate, with a varied range of strategic weightings determined by the MSG Entertainment Compensation Committee, depending on the particular business function. The financial and strategic objectives for the Corporate function (including named executive officers) were each weighted 50% to reflect MSG Entertainment's focus on supporting the business units in safely and efficiently bringing business back following the COVID-19 pandemic, as well as MSG Entertainment's long-term goals for transformative strategic growth and development, including the development of MSG Spheres.

MPIP results were calculated based on performance achievement against these predetermined goals, as discussed below for MSG Entertainment's Corporate function.

![LOGO](g357108g10p00.jpg)

As discussed in "Performance Targets & Achievement Levels" below, as a result of the level of achievement of the adjusted Corporate financial and strategic objectives, the payout level of the annual cash incentives was calculated at 139.2% of the target level.

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*<u>Target Award Opportunities</u>*

Each employee eligible for an annual incentive award from MSG Entertainment was assigned a target award equal to a percentage of that employee's base salary as of the conclusion of the applicable fiscal year. Target annual incentive opportunities were based upon the applicable employee's position, grade level, responsibilities, and historical and expected future contributions to MSG Entertainment. In addition, each employment agreement between MSG Entertainment and each of the NEOs contains a minimum target annual incentive award level. The MSG Entertainment Compensation Committee reviews the target annual incentive award levels of the NEOs at least annually, subject to the minimum target annual incentive award level set forth in each employment agreement between MSG Entertainment and each of the NEOs.

*<u>Annual Incentive Payouts</u>*

The below table summarizes each NEO's target annual incentive opportunity and actual 2022 fiscal year annual incentive payouts from MSG Entertainment, as determined by MSG Entertainment's Compensation Committee. The annual incentive payouts are described in more detail below:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **2022 Fiscal Year<br>Base Salary** | **Target<br>Incentive<br>(% of Base<br>Salary)** | **Actual 2022<br>Fiscal Year<br>MPIP as a% of Target** | **Actual 2022<br>Fiscal Year<br>Annual<br>Incentive<br>Award** |
|  James L. Dolan | $2000000 | 200% | 139.2% | $5566000 |
|  David F. Byrnes<sup>(1)</sup> | $800000 | 100% | 139.2% | $1113200 |
|  Jamal H. Haughton<sup>(2)</sup> | $1100000 | 100% | 139.2% | $1530650 |
|  Philip G. D'Ambrosio | $680000 | 75% | 158.8%<sup>(3)</sup> | $809665<sup>(3)</sup> |
|  Courtney M. Zeppetella<sup>(4)</sup> | $550000 |  |  |  |

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(1) Pursuant to the terms of his employment agreement, Mr. Byrnes was also provided a one-time cash award in
the amount of $811,868 in connection with the forfeiture of earned compensation payable to him by his previous employer. Mr. Byrnes will be required to repay the gross amount of this one-time cash award in the event of his resignation without
"good reason" or termination for cause within one year following the commencement of his employment with MSG Entertainment.

(2) Pursuant to the terms of his employment agreement, Mr. Haughton was also provided a one-time cash award in
the amount of $250,000 in connection with the commencement of his employment with MSG Entertainment. Mr. Haughton will be required to repay the prorated amount of this one-time cash award in the event of his resignation without "good
reason" or termination for cause within one year following the commencement of his employment with MSG Entertainment (proration based on the number of calendar days remaining until the first anniversary of the effective date, less all
applicable payroll taxes).

(3) Mr. D'Ambrosio's 2022 incentive payout reflects an additional $100,000 (in excess of the 139.2%
annual cash incentive payout for the corporate function) in recognition of his contributions to MSG Entertainment's financing efforts.

(4) Pursuant to the terms of her employment agreement, Ms. Zeppetella was not eligible for an annual cash incentive
award for the fiscal year ended June 30, 2022, and was provided a one-time special cash award in the amount of $200,000. Ms. Zeppetella will be required to repay the prorated amount of this one-time cash award in the event of her resignation without
"good reason" or termination for cause within one year following the commencement of her employment with MSG Entertainment (proration based on the number of calendar days remaining until the first anniversary of the effective date, less
all applicable payroll taxes).

*<u>Performance Targets & Achievement Levels</u>*

**Financial Component (50%):**

For the fiscal year ended June 30, 2022, the MPIP financial performance objectives were set recognizing the lingering impacts of the COVID-19 pandemic and expected ramp-up during fiscal year 2022, the expected

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impacts of the Networks Merger (including transaction fees and synergies), and included rigorous Total MSG Entertainment Net Revenue (weighted 40% of the financial component) and Company AOI (weighted 60% of the financial component) targets, with potential payouts under this component ranging from 0-200% of target.

The financial component of the MPIP was determined after assessing the consolidated financial performance against the predetermined targets. The MPIP provides for pre-approved adjustments, including with respect to the MSG Networks business and the impact of the COVID-19 pandemic, when evaluating the financial performance against the pre-determined objectives.

The measurement against the adjusted targets for the 2022 fiscal year provided the following calculated results:

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|:---|:---|
| &nbsp;&nbsp;&nbsp; **Financial Metrics**<br> **(Weighting)** | **2022 Fiscal Year**<br> **Payout Results** |
| &nbsp;&nbsp;&nbsp; Revenues (40%) | 99.6% of target |
| &nbsp;&nbsp;&nbsp; AOI (60%) | 174.9% of target |

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Based on the performance against these pre-determined financial performance objectives, the calculated result of the financial component of the MPIP, giving effect to the payment provisions of the MPIP, was 144.8%.

**Strategic Component (50%):** 

For the fiscal year ended June 30, 2022, the MPIP also included a performance component that measured achievement against relevant strategic goals, objectives and metrics specified each fiscal year. These goals, objectives and metrics are reviewed and approved by the MSG Entertainment Compensation Committee at the beginning of each year.

*Goal Setting Process:* Each year, specific goals are established for each business function. These goals are intended to align with MSG Entertainment's broad strategic initiatives and are subdivided into discrete objectives, which are further cascaded down into specific, measurable metrics that are used to enumerate year-end achievement. As part of this process, each goal (and its related tactics) is assigned a weight, and at the end of the fiscal year, each goal and tactic's level of achievement is evaluated and assigned a rating of 0-200%. Taking into account the weight of each goal and tactic, these ratings are then used to derive the overall strategic score for each business function.

*2022 Fiscal Year Corporate Goals & Achievement:* In the 2022 fiscal year, the Corporate function's strategic component focused on numerous core strategies aimed at supporting business units in safely and efficiently bringing business back, supporting MSG Entertainment's MSG Sphere initiative and driving value through corporate structuring and key new business initiatives and special projects. These Corporate function goals were supported by more than 50 individual measurable metrics and tactics.

The strategic component for eligible NEO payouts was calculated based on the extent to which Corporate-specific objectives and metrics were achieved in the fiscal year.

Based on the performance against these predetermined Corporate objectives, the MSG Entertainment Compensation Committee determined the payout result of the strategic component of the MPIP for the Corporate function was achieved at 133.5% of target.

**Annual Cash Incentive Payout:** 

As a result of level of achievement of the Corporate financial and strategic objectives, as discussed above, the payout level of the annual cash incentives was calculated at 139.2% of the target level for the 2022 fiscal year.

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*<u>Long-term Incentives</u>*

Long-term incentives represent a substantial portion of MSG Entertainment's executive officers' annual total direct compensation. For the fiscal year ended June 30, 2022, MSG Entertainment's standard long-term incentives were comprised of performance stock units and restricted stock units.

MSG Entertainment's Compensation Committee believes this equity mix:

• Establishes strong alignment between its executive officers and the interests of MSG Entertainment's
stockholders;

• Provides meaningful incentive to drive actions that will improve MSG Entertainment's long term stockholder
value; and

• Supports MSG Entertainment's objectives of attracting and retaining the best executive officer talent.

The following table summarizes MSG Entertainment's 2022 fiscal year standard annual long-term incentive awards for the NEOs, excluding Ms. Zeppetella:

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|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Element** | **Weighting** | | **Summary** |
| &nbsp;&nbsp;&nbsp;MSG Entertainment Restricted Stock Units | 50% | ✓ | Share-based award establishes direct alignment with MSG Entertainment's stock price performance and its stockholder interests |
| &nbsp;&nbsp;&nbsp;MSG Entertainment Restricted Stock Units | 50% | ✓ | Vest ratably over three years |
| &nbsp;&nbsp; MSG Entertainment<br> Performance Stock Units | <br>50% | ✓ | Performance is measured by Total MSG Entertainment Net Revenue and MSG Entertainment Business Unit AOI, which are equally weighted and considered key value drivers of MSG Entertainment's business |
| &nbsp;&nbsp; MSG Entertainment<br> Performance Stock Units | <br>50% | ✓ | Financial performance targets are pre-determined by MSG Entertainment's Compensation Committee early in the three-year performance period to incentivize strong execution of MSG Entertainment's strategy and long-term financial goals |
| &nbsp;&nbsp; MSG Entertainment<br> Performance Stock Units | <br>50% | ✓ | Cliff-vest after three years to the extent that financial performance targets measured in the final year of the three-year period are achieved |

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Additional information regarding long-term incentive awards granted by MSG Entertainment to the Company's NEOs during the 2022 fiscal year is set forth in the "Summary Compensation Table" and the "Grants of MSG Entertainment Plan-Based Awards" table under "— Historical Compensation Information" below. See "— Treatment of Outstanding Awards" below for a discussion of the impact of the Distribution on outstanding MSG Entertainment long-term incentive awards.

*MSG Entertainment Restricted Stock Units* 

MSG Entertainment's restricted stock units serve to align its executive officers' interests with those of its stockholders and promote the retention of employees, including its executive officers.

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MSG Entertainment's Compensation Committee approved the following awards of MSG Entertainment restricted stock units to the Company's NEOs for the fiscal year ended June 30, 2022 pursuant to MSG Entertainment's Employee Stock Plan (the "MSG Entertainment Employee Stock Plan"):

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|:---|:---|:---|
| **Name** | **Restricted Stock<br>Units** | **Grant Value<sup>(1)</sup>** |
|  James L. Dolan<sup>(2)</sup> | 84736 | $6745928 |
|  David F. Byrnes<sup>(3)</sup> | 7415 | $607882 |
|  Jamal H. Haughton<sup>(3)</sup> | 8033 | $658545 |
|  Philip G. D'Ambrosio | 7300 | $577211 |
|  Courtney M. Zeppetella<sup>(4)</sup> |  |  |

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(1) The grant date fair value listed above is calculated in accordance with FASB ASC Topic 718
("Topic 718"). MSG Entertainment determines the number of restricted stock units to grant by dividing the target grant value by the 20-trading day average ending on the day before the date of
approval by MSG Entertainment's Compensation Committee.

(2) This amount includes 15,757 units ($1,291,759) granted in April 2022 to reflect the increased target
long-term incentive opportunity (on a non-pro rata basis) as a result of Mr. Dolan's new employment agreement effective August 2021.

(3) With respect to Messrs. Byrnes and Haughton, this amount was granted in April 2022 to reflect long-term
incentive opportunities under their employment agreements on a non-pro rata basis.

(4) Pursuant to the terms of her employment agreement, Ms. Zeppetella was not eligible for any grant of long-term
incentive awards for the fiscal year ended June 30, 2022.

MSG Entertainment's standard restricted stock units vest ratably over three years on September 15th of each year following the year of grant, subject to continued employment and employment agreement terms (as applicable). Mid-year grants in respect of an out-of-cycle promotion, increase in compensation or new-hire typically vest on the same time frame as standard restricted stock units granted that fiscal year.

*MSG Entertainment Performance Stock Units* 

Performance stock units are intended to align MSG Entertainment's executive officers' interests with those of its stockholders, with a focus on long-term financial results.

Under MSG Entertainment's executive compensation program for the fiscal year ended June 30, 2022, performance stock units were granted to MSG Entertainment's executive officers and certain other members of its management pursuant to the MSG Entertainment Employee Stock Plan.

*2022 Fiscal Year Grants* 

During the fiscal year ended June 30, 2022, MSG Entertainment's Compensation Committee approved the following awards of MSG Entertainment performance stock units to the Company's NEOs for the 2022-2024 fiscal year period:

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|:---|:---|:---|
| **Name** | **Performance Stock<br>Units (at target)** | **Grant Date Fair<br>Value<sup>(1)</sup>** |
|  James L. Dolan<sup>(2)</sup> | 84736 | $4402883 |
|  David F. Byrnes<sup>(3)</sup> | 7415 | $385283 |
|  Jamal H. Haughton<sup>(3)</sup> | 8033 | $417395 |
|  Philip G. D'Ambrosio | 7300 | $379308 |
|  Courtney M. Zeppetella<sup>(4)</sup> |  |  |

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(1) The grant date fair value listed above is calculated in accordance with Topic 718. Under Topic 718, the date of
grant for performance stock units is the date the performance targets are set for such awards, which, for the fiscal year ended June 30, 2022 was on June 28, 2022. MSG Entertainment determines the number of performance stock units to grant
by dividing the target grant value by the 20-trading day average ending on the day before the date of approval by MSG Entertainment's Compensation Committee.

(2) With respect to Mr. Dolan, this amount includes 15,757 units ($818,734) approved in April 2022 to
reflect the increased target long-term incentive opportunity (on a non-pro rata basis) as a result of Mr. Dolan's new employment agreement effective August 2021.

(3) With respect to Messrs. Byrnes and Haughton, this amount was approved in April 2022 to reflect long-term
incentive opportunities under their employment agreements on a non-pro rata basis.

(4) Pursuant to the terms of her employment agreement, Ms. Zeppetella was not eligible for any grant of long-term
incentive awards for the fiscal year ended June 30, 2022.

MSG Entertainment's performance stock units are structured to be settled upon the later of September 15th following a three-year period, and the date of certification of achievement against pre-determined performance goals measured in the final year of such three-year period. Mid-year grants in respect of an out-of-cycle promotion, increase in compensation or new-hire typically settle on the same time frame as standard performance stock units granted that fiscal year.

*Target Setting* 

For the 2022 fiscal year performance stock units approved in August 2021 and April 2022 for the 2022-2024 fiscal year period, MSG Entertainment's Compensation Committee selected Total MSG Entertainment Net Revenue and MSG Entertainment Business Unit AOI as the two financial metrics to be measured in the final fiscal year of the vesting period.

Goals were set in June 2022 based on MSG Entertainment's long-range plan, which is subject to review by the board of directors of MSG Entertainment. MSG Entertainment's long-range plan is confidential and disclosure of those targets could provide information that could lead to competitive harm, and for this reason the performance stock unit financial performance targets are not disclosed; however, MSG Entertainment's Compensation Committee seeks to make target goals ambitious, requiring meaningful growth over the performance period, while threshold goals are expected to be achievable. MSG Entertainment intends to disclose the Total MSG Entertainment Net Revenue and MSG Entertainment Business Unit AOI payout results as a percentage of target as well as the resulting payout for the 2022 fiscal year performance stock units as a percentage of target measured in the last year of the three-year vesting period (i.e., performance is based on 2024 fiscal year performance).

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|:---|:---|:---|
| &nbsp;&nbsp;&nbsp; **MSG Entertainment Financial Metrics**<br> **(Weighting)** | **Threshold**<br> **Performance** | **Maximum**<br> **Performance** |
| &nbsp;&nbsp;&nbsp; Total MSG Entertainment Net Revenue (50%) | 85% of target goal | 115% of target goal |
| &nbsp;&nbsp;&nbsp; MSG Entertainment Business Unit AOI (50%) | 75% of target goal | 125% of target goal |

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The performance stock unit payout opportunity ranges from 0 to 110% of target, based on MSG Entertainment's performance and subject to continued employment and employment agreement terms (as applicable). At the threshold performance level, the award would vest at 90% of the target performance stock units, and at or above the maximum performance level, the award would vest at 110% of the target performance stock units. If MSG Entertainment exceeds threshold levels but does not achieve the targeted rates, or if MSG

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Entertainment achieves or exceeds one target but not both, the award provides for partial payments. No performance stock units would vest if MSG Entertainment fails to achieve both threshold levels of performance.

<u>2020 Fiscal Year Performance Stock Unit Awards</u> 

The performance stock units issued by MSG Entertainment at the time of the 2020 Entertainment Distribution in respect of the MSG Sports performance stock units granted by The Madison Square Garden Company during the 2020 fiscal year (the "2020 fiscal year performance stock units") were amended by MSG Entertainment's Compensation Committee following the 2020 Entertainment Distribution to reflect Total MSG Entertainment Net Revenue and MSG Entertainment Business Unit AOI performance objectives, weighted at 50% each, measured over a July 1, 2021 through June 30, 2022 performance period (the third year of the three-year performance award). The level of achievement for each performance objective was adjusted in accordance with the terms of the awards. Based on the performance against these predetermined objectives, the Total MSG Entertainment Net Revenue and MSG Entertainment Business Unit AOI performance results as a percentage of target performance were calculated at 99.7% and 105.7%, respectively, with a resulting calculated payout for the 2020 fiscal year performance stock units of 102.7% of target. The 2020 fiscal year performance stock units were settled in September 2022.

With respect to Mr. Dolan, who was employed by both the Company and MSG Sports during the 2020 fiscal year, the payout multiplier was determined based on the performance of MSG Entertainment and MSG Sports, with the performance for each company blended as a weighted average based on Mr. Dolan's total direct compensation allocated between MSG Entertainment and MSG Sports at the time of the 2020 Entertainment Distribution, and applied to both his MSG Entertainment and MSG Sports performance stock units. As a result, the payout of Mr. Dolan's MSG Entertainment 2020 fiscal year performance stock units was 102.7% of target. For more information on the MSG Sports 2020 performance stock units payout level, see MSG Sports' 2022 Definitive Proxy Statement.

<u>Treatment of MSG Networks Equity Awards</u> 

In connection with the Networks Merger, the MSG Networks stock options and restricted stock unit awards, including such awards held by any NEO who was also employed by MSG Networks, were assumed by MSG Entertainment and converted into a stock option or restricted stock unit denominated in shares of MSG Entertainment Class A Common Stock based on an exchange ratio of 0.172 (stock options and restricted stock units subject to performance vesting conditions were converted to stock options and restricted stock units, as applicable, with time-vesting conditions for the remainder of the performance period assuming the performance conditions were achieved at 100% of target). Additional details regarding the assumption and conversion of the MSG Networks awards is available in the joint proxy statement/prospectus filed by MSG Entertainment and MSG Networks in connection with the Networks Merger.

*MSG Entertainment's Hedging and Pledging Policies* 

MSG Entertainment's Insider Trading Policy prohibits all of its directors, consultants and employees (including its executive officers), and all members of their immediate families or any individual who is materially dependent upon them for financial support who reside in the same household, from directly or indirectly (i) engaging in short sales, short sales against the box or other "hedging" transactions unless otherwise permitted by MSG Entertainment and (ii) placing securities in margin accounts or otherwise pledging MSG Entertainment securities.

***Holding Requirements***

Under MSG Entertainment's executive compensation program for the fiscal year ended June 30, 2022, annual restricted stock unit awards vest ratably over three years and annual performance stock unit awards cliff-

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vest after three years to the extent that pre-determined financial performance targets measured in the last year of the three-year period are achieved, in each case, so long as the recipient is continuously employed by MSG Entertainment until the applicable vesting date (and subject to the performance conditions described above and any applicable terms of the award agreements and their MSG Entertainment employment agreement). With respect to MSG Entertainment's non-management directors, compensation includes annual awards of MSG Entertainment restricted stock units. Pursuant to MSG Entertainment's award agreements, directors' restricted stock units are settled in shares of MSG Entertainment Class A Common Stock (or, in the MSG Entertainment Compensation Committee's discretion, cash) on the first business day following 90 days after service on the board of directors of MSG Entertainment ceases (other than in the event of a director's death, where the MSG Entertainment restricted stock units are settled immediately). One effect of the cliff and three-year ratable vesting (with respect to MSG Entertainment's named executive officers or eligible MSG Entertainment employees) and holding requirements (with respect to non-management MSG Entertainment directors) applicable to MSG Entertainment awards is to require MSG Entertainment executive officers, directors and eligible MSG Entertainment employees to maintain significant holdings of MSG Entertainment securities at all times.

***Changes to Fiscal Year 2023 Compensation Program***

In connection with approving the elements of MSG Entertainment's compensation program for the 2023 fiscal year, the MSG Entertainment Compensation Committee, in consultation with the MSG Entertainment independent compensation consultant, determined to establish an annual incentive plan that reflected certain changes from the terms of the MPIP as in effect for the 2022 fiscal year:

• As MSG Entertainment's business operations resume with increased capacity following the COVID-19 pandemic restrictions, the MSG Entertainment Compensation Committee determined that it was appropriate for the MPIP for the 2023 fiscal year to further MSG Entertainment's focus on profitability by
increasing the portion of the financial objectives tied to AOI from 60% to 70%, with the remainder tied to Total MSG Entertainment Net Revenue.

• For the Corporate function, the financial objectives will continue to be determined based on the performance of
MSG Entertainment.

MSG Entertainment believes that these changes for the 2023 fiscal year are appropriate for meeting MSG Entertainment's annual incentive objectives. There were no changes to MSG Entertainment's long-term incentive program.

***MSG Entertainment's Benefits***

Benefits offered by MSG Entertainment to its executive officers generally provide for retirement income and serve as a safety net against hardships that can arise from illness, disability or death. MSG Entertainment's executive officers are generally eligible to participate in the same health and welfare benefit plans made available to the other benefits-eligible employees of MSG Entertainment, including, for example, medical, dental, vision, life insurance and disability coverage.

*Defined Benefit Plans* 

MSG Entertainment sponsors the MSG Entertainment Group, LLC Cash Balance Pension Plan (the "Cash Balance Pension Plan"), a tax-qualified defined benefit plan, which was retained by MSG Entertainment after the 2020 Entertainment Distribution, for participating employees, including certain executive officers. The Cash Balance Pension Plan was frozen to new participants and future benefit accruals effective as of December 31, 2015.

More information regarding the Cash Balance Pension Plan and the Retirement Plan is provided in the Pension Benefits table under "—Historical Compensation Information" below.

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*Defined Contribution Plans* 

MSG Entertainment sponsors the Madison Square Garden 401(k) Savings Plan (the "Savings Plan"), a tax-qualified retirement savings plan, for its participating employees, including its executive officers. The Savings Plan is a multiple employer plan to which MSG Sports also contributes as a participating employer. Under the Savings Plan, participants may contribute into their plan accounts a percentage of their eligible pay on a pre-tax basis as well as a percentage of their eligible pay on an after-tax basis. The Savings Plan provides (a) fully-vested matching contributions equal to 100% of the first 4% of eligible pay contributed on a pre-tax basis by participating employees and (b) a discretionary non-elective contribution by MSG Entertainment.

In addition, MSG Entertainment offers the MSG Entertainment Group, LLC Excess Savings Plan (the "Excess Savings Plan"), a non-qualified deferred compensation plan that was retained by MSG Entertainment following the 2020 Entertainment Distribution, to its employees, including its executive officers, whose contributions to the Savings Plan are restricted by the applicable IRS annual compensation limitation and/or the pre-tax income deferral limitation. More information regarding the Excess Savings Plan is provided in the Nonqualified Deferred Compensation table under "— Historical Compensation Information" below.

Matching contributions made by MSG Entertainment in the fiscal year ended June 30, 2022 in respect of the Company's NEOs under the Savings Plan are set forth in the Summary Compensation Table under "— Historical Compensation Information" below.

***MSG Cares Charitable Matching Gift Program***

Since the 2020 fiscal year, MSG Entertainment's employees, including its named executive officers, are eligible to participate in the MSG Cares Charitable Matching Gifts Program. Under this program, MSG Entertainment matches charitable contributions made by its employees, including the NEOs, to eligible 501(c)(3) organizations of the employee's choice, in an aggregate amount of up to $1,000 per employee for each fiscal year.

***MSG Entertainment's Perquisites***

MSG Entertainment provides certain perquisites to its executive officers as described below. Additional information concerning perquisites provided by MSG Entertainment is set forth in the Summary Compensation Table under "— Historical Compensation Information" below. We anticipate that the arrangements described below will continue following the Distribution.

*Car and Driver* 

Mr. Dolan has regular access to cars and drivers, which he is permitted to use for personal use in addition to business purposes. MSG Entertainment and MSG Sports shared these costs equally during the fiscal year ended June 30, 2022. In addition, certain other MSG Entertainment executive officers and members of management have had access to cars and drivers on a limited basis for personal use. To the extent employees used a car and driver for personal use without reimbursement to MSG Entertainment, those employees were imputed compensation for tax purposes.

*Aircraft Arrangements* 

During the fiscal year ended June 30, 2022, MSG Entertainment owned and leased certain aircraft, and also had access to various aircraft through arrangements with various Dolan family entities. Mr. Dolan has been permitted to use MSG Entertainment's aircraft (including aircraft to which MSG Entertainment has access through various dry lease agreements) for personal use. Mr. Dolan is not required to reimburse MSG Entertainment for personal use of MSG Entertainment-owned aircraft. Additionally, Mr. Dolan has access to

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##### [**Table of Contents**](#toc)
helicopter travel, including for personal travel. Helicopter use has primarily been for commutation and he is not required to reimburse MSG Entertainment for such use. During the fiscal year ended June 30, 2022, MSG Entertainment and MSG Sports shared the costs of Mr. Dolan's personal aircraft and helicopter use equally.

MSG Entertainment is typically reimbursed for the incremental variable costs associated with the personal use of aircraft (except as noted above). To the extent any MSG Entertainment executive officer or other employee of MSG Entertainment used any of the aircraft, including helicopters, for personal travel without reimbursement to MSG Entertainment, they were imputed compensation for tax purposes based on the Standard Industry Fare Level rates that are published biannually by the IRS. For compensation reporting purposes, MSG Entertainment valued the incremental cost of the personal use of the aircraft based on the variable costs incurred by MSG Entertainment net of any reimbursements received from its executive officers. The incremental cost of the use of the aircraft does not include any costs that would have been incurred by MSG Entertainment whether or not the personal trip was taken.

See "Certain Relationships and Related Party Transactions — Relationship between MSG Entertainment and Us After the Distribution — Aircraft Arrangements" for a description of certain aircraft arrangements that we will enter into with MSG Entertainment prior to the Distribution.

*Executive Security* 

Mr. Dolan participates in MSG Entertainment's executive security program, including services related to cybersecurity and connectivity. During the fiscal year ended June 30, 2022, MSG Sports and MSG Entertainment shared the costs of such participation in their security program equally. Because certain of these costs can be viewed as conveying personal benefits to Mr. Dolan, they are reported as perquisites.

*Other* 

From time to time certain MSG Entertainment employees, including its executive officers (and their guests), have access to tickets to sporting events and other entertainment at MSG Entertainment's venues at no cost, and may also purchase tickets at face value. Attendance at such events is integrally and directly related to the performance of the executive officers' duties, and, as such, MSG Entertainment does not deem the receipt of such tickets to be perquisites.

MSG Entertainment named executive officers may also make incidental use from time to time of certain amenities made available through MSG Entertainment resources, such as food and beverage at MSG Entertainment's nightlife, dining and entertainment venues.

***MSG Entertainment's Post-Termination Compensation***

MSG Entertainment believes that post-termination benefits are integral to its ability to attract and retain qualified executive officers. See "—Employment Agreements" below for a description of the severance arrangements that MSG Entertainment has agreed to provide our NEOs in the event of a qualifying termination of employment from MSG Entertainment.

Under certain circumstances, payments or other benefits may be provided by MSG Entertainment to its employees upon the termination of their employment with MSG Entertainment. These may include payments or other benefits upon a termination by MSG Entertainment without cause, termination by the employee for good reason, other voluntary termination by the employee, retirement, death, disability, or termination following a change in control of MSG Entertainment or following a going-private transaction. With respect to the NEOs, the amounts and terms of such payments and other benefits (including the definition of "cause" and "good reason") are governed by each NEO's employment agreement and any applicable award agreements with MSG Entertainment.

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##### [**Table of Contents**](#toc)
**Employment Agreements** 

We may enter into an employment agreement with each of Messrs. Dolan, Byrnes, Haughton and D'Ambrosio and Ms. Zeppetella prior to the Distribution. The terms of these agreements, if any, have not been determined and will be disclosed in an amendment to this information statement. As noted above, Mr. Dolan will continue as an officer of MSG Entertainment following the Distribution. The terms of his employment with MSG Entertainment will be governed by an employment agreement with MSG Entertainment.

**Key Elements of 2023 Expected Compensation from the Company** 

As a newly formed entity, we did not have any executive officers or pay any compensation during the year ended June 30, 2022. The following summarizes the principal components of the annual compensation that we expect to provide following the Distribution to Messrs. Dolan, Byrnes, Haughton and D'Ambrosio and Ms. Zeppetella. We have not yet determined the form of any long-term incentives to be granted.

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| | |
|:---|:---|
|  James L. Dolan: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Base Salary | [●] |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Target Bonus | [●] |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Target Long-Term Incentives | [●] |
|  David F. Byrnes: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Base Salary | [●] |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Target Bonus | [●] |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Target Long-Term Incentives | [●] |
|  Jamal H. Haughton: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Base Salary | [●] |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Target Bonus | [●] |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Target Long-Term Incentives | [●] |
|  Philip G. D'Ambrosio: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Base Salary | [●] |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Target Bonus | [●] |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Target Long-Term Incentives | [●] |
|  Courtney M. Zeppetella: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Base Salary | [●] |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Target Bonus | [●] |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Target Long-Term Incentives | [●] |

---

In addition, our NEOs are expected to receive other benefits and perquisites, similar to those received by MSG Entertainment's named executive officers, as discussed above.

**Historical Compensation Information** 

All of the information set forth in the following table reflects compensation earned during the years ended June 30, 2022, 2021 and 2019. MSG Entertainment's Executive Chairman and Chief Executive Officer is a shared employee of MSG Sports and MSG Entertainment; the information set forth below only reflects the compensation paid by MSG Entertainment for services rendered to MSG Entertainment, and excludes amounts for which MSG Sports reimbursed MSG Entertainment.

References in the tables that follow to "2022," "2021," or "2020" refer to the year ended June 30, 2022, 2021 or 2020, respectively. The information below is therefore not necessarily indicative of the compensation these individuals will receive as executive officers of the Company.

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**Summary Compensation Table** 

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary<br>($)<sup>(1)</sup>** | **Bonus<br>($)<sup>(2)</sup>** | **Stock<br>Awards<br>($)<sup>(3)</sup>** | **Non-Equity<br>Incentive Plan<br>Compensation<br>($)<sup>(4)</sup>** | **Change in<br>Pension Value<br>and<br>Nonqualified<br>Deferred<br>Compensation<br>Earnings**<br>**($)<sup>(5)</sup>** | **All Other<br>Compensation<br>($)<sup>(6)</sup>** | **Total ($)** |
|  James L. Dolan | 2022 | 1937500 |  | 11148811 | 5566000 | – | 591368 | 19243679 |
| &nbsp;&nbsp;&nbsp;&nbsp; Executive Chairman and Chief Executive Officer | 2021 | 600000 |  | 5848014 | 1320000 | – | 555826 | 8323840 |
| &nbsp;&nbsp;&nbsp;&nbsp; Executive Chairman and Chief Executive Officer | 2020 | 115385 |  | 2305894 | 1439167 | – | 94683 | 3955129 |
| &nbsp;&nbsp;&nbsp;&nbsp; David F. Byrnes<sup>(7)</sup><br> Executive Vice President and Chief Financial Officer | 2022 | 338462 | 811868 | 993165 | 1113200 | – | 11893 | 3268588 |
| &nbsp;&nbsp;&nbsp;&nbsp; Jamal H. Haughton<sup>(8)</sup><br> Executive Vice President and General Counsel | 2022 | 613462 | 250000 | 1075940 | 1530650 | – | 13112 | 3483164 |
| &nbsp;&nbsp;&nbsp;&nbsp; Philip G. D'Ambrosio<sup>(9)</sup><br> Senior Vice President and Treasurer | 2022 | 625481 |  | 956519 | 809665 | – | 35618 | 2427283 |
| &nbsp;&nbsp;&nbsp;&nbsp; Philip G. D'Ambrosio<sup>(9)</sup><br> Senior Vice President and Treasurer | 2021 | 575000 |  | 1070669 | 474375 | – | 32370 | 2152414 |
| &nbsp;&nbsp;&nbsp;&nbsp; Philip G. D'Ambrosio<sup>(9)</sup><br> Senior Vice President and Treasurer | 2020 | 110577 |  | 205006 | 295930 | – | 235 | 611748 |
| &nbsp;&nbsp;&nbsp;&nbsp; Courtney M. Zeppetella<sup>(10)</sup><br> Senior Vice President, Controller and Chief Accounting Officer | 2022 | 84615 | 200000 |  |  | – | 224 | 284839 |

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(1) For 2022, the salary paid by MSG Entertainment to the NEOs accounted for approximately the following percentages
of their total MSG Entertainment compensation: Mr. Dolan — 10%; Mr. Byrnes — 10%; Mr. Haughton —18%; Mr. D'Ambrosio — 26%; and Ms. Zeppetella — 30%.

The 2020 salary information excludes the following amounts paid by The Madison Square Garden Company during the Pre-Distribution Period: Mr. Dolan — $807,692; and Mr. D'Ambrosio — $464,423.

(2) This column reflects a one-time special bonus paid outside of the MPIP to Mr. Byrnes in connection with
forfeited compensation from his previous employer and to Mr. Haughton and Ms. Zeppetella in connection with the commencement of their employment with MSG Entertainment.

(3) This column reflects the aggregate grant date fair value of MSG Entertainment restricted stock units and
performance stock units granted to the NEOs, without any reduction for risk of forfeiture, as calculated in accordance with Topic 718 on the date of grant. Under Topic 718, the date of grant for performance stock units is the date the
performance targets are set for such awards, which, for the fiscal year ended June 30, 2022 was on June 28, 2022. The assumptions used by MSG Entertainment in calculating these amounts are set forth in Note 17 to the financial statements included in
MSG Entertainment's 2022 Form 10-K. The grant date fair value of the performance stock units is shown at target performance. The number of restricted stock units and performance stock units granted to the NEOs was determined based on the
20-trading day average closing market price on the day prior to the date such awards were approved by the MSG Entertainment Compensation Committee.

For the 2022 figures, this column reflects the value of restricted stock units approved and granted in August 2021 and April 2022 and performance stock units approved in August 2021 and April 2022 and granted for purposes of Topic 718 in June 2022. At the highest level of performance, the value of such 2022 performance stock units on the grant date for purposes of Topic 718 would be: $4,843,171 for Mr. Dolan; $423,812 for Mr. Byrnes; $459,134 for Mr. Haughton; and $417,239 for Mr. D'Ambrosio. With respect to Mr. Dolan, such amounts include awards approved in April 2022 to reflect the increased long-term incentive opportunity (on a non-pro rata basis) as a result of Mr. Dolan's new employment agreement effective August 2021; with respect to Messrs. Byrnes and Haughton, such awards, approved in April 2022, reflect long-term incentive opportunities under their employment agreements (on a non-pro rata basis).

For the 2021 figures, this column reflects the value of restricted stock units and performance stock units granted in August and September 2020 and April 2021. At the highest level of performance, the value of such 2021 performance stock units on the grant date would be: $3,379,808 for Mr. Dolan; and $613,078 for Mr. D'Ambrosio. With respect to Mr. D'Ambrosio, such amounts also include awards granted in April 2021 to reflect an increased long-term incentive opportunity.

For the 2020 figures, this column reflects the value of MSG Entertainment restricted stock units and performance stock units granted in April 2020 in respect of existing MSG Sports awards that were granted by The Madison Square Garden Company in August 2019. With

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##### [**Table of Contents**](#toc)
respect to these awards, the value reflected is the pro rata portion of the grant date value of the original MSG Sports award granted in August 2019 by The Madison Square Garden Company, calculated in accordance with Topic 718, based on the stock price of MSG Entertainment's and MSG Sports' Class A Common Stock on the Distribution date of the 2020 Entertainment Distribution. At the highest level of performance, the value of such 2020 MSG Entertainment performance stock units on the grant date would be: $1,268,242 for Mr. Dolan; and $112,753 for Mr. D'Ambrosio.

(4) For the 2022 figures, this column reflects the annual incentive award earned by each NEO under MSG
Entertainment's program with respect to performance during the fiscal year ended June 30, 2022 and paid in September 2022. For the 2021 figures, this column reflects the annual incentive award earned by each NEO under MSG Entertainment's
program with respect to performance during the year ended June 30, 2021 and paid in September 2021. For the 2020 figures, this column reflects the annual incentive award earned by each NEO under MSG Entertainment's program with respect to
performance during the year ended June 30, 2020 and paid in September 2020. With respect to Mr. Dolan, this amount also includes $239,167 paid by MSG Entertainment to MSG Sports, reflecting MSG Entertainment's obligation to pay 75% of the
aggregate annual incentive liability accrued as of the Distribution date of the 2020 Entertainment Distribution. With respect to Mr. D'Ambrosio, these amounts exclude $135,321 paid by MSG Sports to MSG Entertainment, reflecting MSG Sports'
obligation to pay 41% of the liability accrued as of the Distribution date of the 2020 Entertainment Distribution.

(5) For each period, this column represents the sum of the increase during such period in the present value of each
NEO's accumulated Cash Balance Pension Plan account over the amount reported for the prior period. There were no above-market earnings on nonqualified deferred compensation. For more information regarding the NEOs' pension benefits, please
see the Pension Benefits table below.

(6) The table below shows the components of this column:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name** | **Year** | **401(k)<br>Plan<br>Match<sup>(a)</sup>** | **401(k) Plan<br>Discretionary<br>Contribution<sup>(a)</sup>** | **Excess<br>Savings<br>Plan<br>Match<sup>(a)</sup>** | **Excess Savings<br>Plan<br>Discretionary<br>Contribution<sup>(a)</sup>** | **Life<br>Insurance<br>Premiums<sup>(b)</sup>** | **MSG<br>Cares<br>Matching<br>Gift<br>Program<sup>(c)</sup>** | **Perquisites<sup>(d)</sup>** | **Separation<br>Related<br>Benefits** | **Total** |
|  James L. Dolan | 2022 | 12723 | 4350 | 62400 | 24309 | 4896 |  | 482690 | – | 591368 |
|  David F. Byrnes | 2022 | 11077 |  |  |  | 816 |  |  | – | 71211 |
|  Jamal H. Haughton | 2022 | 11000 | 952 |  |  | 1160 |  |  | – | 11893 |
|  Philip G. D'Ambrosio | 2022 | 13185 | 4350 | 11400 | 4275 | 1408 | 1000 |  | – | 35618 |
|  Courtney M. Zeppetella | 2022 |  |  |  |  | 224 |  |  | – | 224 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) These columns represent a matching contribution by MSG Entertainment on behalf of the individual under the
Savings Plan or Excess Savings Plan, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This column represents amounts paid for the individual to participate in MSG Entertainment's group life
insurance program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This column represents amount paid by MSG Entertainment to eligible 501(c)(3) organizations as matching
contributions for donations made by the NEO under the MSG Cares Charitable Matching Gift Program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) This column represents the following aggregate estimated perquisites, as described in the table below, excluding
amounts reimbursed by MSG Sports. For more information regarding the calculation of these perquisites, please see "— MSG Entertainment's Compensation Practices and Policies — MSG Entertainment's Perquisites."

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name** | **Year** | **Car and<br>Driver<sup>(I)</sup>** | **Aircraft<sup>(II)</sup>** | **Executive<br>Security<sup>(III)</sup>** | **Total<br>($)** |
|  James L. Dolan | 2022 | 129134 | 342740 | \* | 482690 |
|  David F. Byrnes | 2022 | \* | \* | \* | \*\* |
|  Jamal H. Haughton | 2022 | \* | \* | \* | \*\* |
|  Philip G. D'Ambrosio | 2022 | \* | \* | \* | \*\* |
|  Courtney M. Zeppetella | 2022 | \* | \* | \* | \*\* |

---

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\* Does not exceed the greater of $25,000 or 10% of the total amount of the perquisites of the NEO. 

\*\* The aggregate value of the perquisites in 2022 for the individual is less than $10,000. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Amounts in this column represent MSG Entertainment's share of the cost of the personal use (which includes
commutation) by Mr. Dolan of cars and drivers provided by MSG Entertainment. These amounts are calculated using a portion of the cost of MSG Entertainment's drivers plus maintenance, fuel and other related costs for MSG Entertainment
vehicles, based on an estimated percentage of personal use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) As discussed under "— MSG Entertainment's Compensation Program Practices and Policies — MSG
Entertainment's Perquisites — Aircraft Arrangements," the amounts in the table reflect MSG Entertainment's share of the incremental cost for personal use of MSG Entertainment's aircraft and other aircraft MSG Entertainment
has access to pursuant to arrangements with various Dolan family entities (see "Certain Relationships and Related Party Transactions — Dolan Family Arrangements — Aircraft and Office Space Arrangements"), as well as personal
helicopter use primarily for commutation. Incremental cost is determined as the actual additional cost incurred by MSG Entertainment under the applicable arrangement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) The amounts in this column represent MSG Entertainment's share of the cost of executive security services
(including cybersecurity and connectivity) provided to Mr. Dolan.

(7) Effective January 24, 2022, Mr. Byrnes was appointed Executive Vice President and Chief Financial Officer of MSG
Entertainment.

(8) Effective December 6, 2021, Mr. Haughton was appointed Executive Vice President and General Counsel of MSG
Entertainment.

(9) From March 12, 2020 through the 2020 Entertainment Distribution date, Mr. D'Ambrosio served as MSG
Entertainment's Interim Chief Financial Officer and from March 12, 2020 through December 10, 2020, Mr. D'Ambrosio also served as MSG Entertainment's Secretary.

(10) Effective May 2, 2022, Ms. Zeppetella was appointed Senior Vice President, Controller and Chief Accounting
Officer.

***Grants of MSG Entertainment Plan-Based Awards***

The table below presents information regarding equity awards granted by MSG Entertainment during the fiscal year ended June 30, 2022 to the Company's NEOs under MSG Entertainment's plans, including estimated possible and future payouts under non-equity incentive plan awards and equity incentive plan awards of restricted stock units and performance stock units. See "— Treatment of Outstanding Awards" below for a discussion of the impact of the Distribution on certain of the awards discussed in the following table.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name** | **Year** | **Grant<br>Date<sup>(1)</sup>** | **Estimated Future Payouts**<br>**Under Non-Equity Incentive**<br>**Plan Awards** | **Estimated Future Payouts**<br>**Under Non-Equity Incentive**<br>**Plan Awards** | **Estimated Future Payouts**<br>**Under Non-Equity Incentive**<br>**Plan Awards** | **Estimated Future Payouts**<br>**Under Equity Incentive Plan<br>Awards** | **Estimated Future Payouts**<br>**Under Equity Incentive Plan<br>Awards** | **Estimated Future Payouts**<br>**Under Equity Incentive Plan<br>Awards** | **All<br>Other<br>Stock<br>Awards:<br>Number<br>of Shares<br>of Stock<br>or Units<br>(#)<sup>(2)</sup>** | **Grant<br>Date Fair<br>Value of<br>Stock and<br>Option<br>Awards<br>($)<sup>(3)</sup>** |
| **Name** | **Year** | **Grant<br>Date<sup>(1)</sup>** | **Threshold<br>($)** | **Target**<br>**($)** | **Maximum<br>($)** | **Threshold<br>(#)** | **Target<br>(#)** | **Maximum<br>(#)** | **All<br>Other<br>Stock<br>Awards:<br>Number<br>of Shares<br>of Stock<br>or Units<br>(#)<sup>(2)</sup>** | **Grant<br>Date Fair<br>Value of<br>Stock and<br>Option<br>Awards<br>($)<sup>(3)</sup>** |
|  James L. Dolan | 2022 | 8/27/2021<sup>(4)</sup> |  | 4000000 | 8000000 |  |  |  |  |  |
|  James L. Dolan | 2022 | 6/28/2022<sup>(5)</sup> |  |  |  | 76262 | 84736 | 93210 |  | 4402883 |
|  James L. Dolan | 2022 | 8/27/2021<sup>(6)</sup> |  |  |  |  |  |  | 68979 | 5454170 |
|  James L. Dolan | 2022 | 4/20/2022<sup>(6)</sup> |  |  |  |  |  |  | 15757 | 1291759 |
|  David F. Byrnes | 2022 | 12/20/2021<sup>(4)</sup> |  | 800000 | 1600000 |  |  |  |  |  |
|  David F. Byrnes | 2022 | 6/28/2022<sup>(5)</sup> |  |  |  | 6674 | 7415 | 8157 |  | 385283 |
|  David F. Byrnes | 2022 | 4/20/2022<sup>(6)</sup> |  |  |  |  |  |  | 7415 | 607882 |
|  Jamal H. Haughton | 2022 | 12/6/2021<sup>(4)</sup> |  | 1100000 | 2200000 |  |  |  |  |  |
|  Jamal H. Haughton | 2022 | 6/28/2022<sup>(5)</sup> |  |  |  | 7230 | 8033 | 8836 |  | 417395 |
|  Jamal H. Haughton | 2022 | 4/20/2022<sup>(6)</sup> |  |  |  |  |  |  | 8033 | 658545 |
|  Philip G. D'Ambrosio | 2022 | 8/27/2021<sup>(4)</sup> |  | 510000 | 1020000 |  |  |  |  |  |
|  Philip G. D'Ambrosio | 2022 | 6/28/2022<sup>(5)</sup> |  |  |  | 6570 | 7300 | 8030 |  | 379308 |
|  Philip G. D'Ambrosio | 2022 | 8/27/2021<sup>(6)</sup> |  |  |  |  |  |  | 7300 | 577211 |
|  Courtney M. Zeppetella | 2022 |  |  |  |  |  |  |  |  |  |

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(1) The grant date is presented in accordance with Topic 718. Under Topic 718, the date of grant for
performance stock units is the date the performance targets are set for such awards, which, for the fiscal year ended June 30, 2022 was on June 28, 2022.

(2) The number of restricted stock units and performance stock units granted to the NEOs was determined based on
the 20-trading day average closing market price on the day prior to the date such awards were approved by the MSG Entertainment Compensation Committee.

(3) This column reflects the aggregate grant date fair value of the restricted stock unit awards and performance
stock unit awards, as applicable, granted to each NEO in the 2022 fiscal year without any reduction for risk of forfeiture as calculated in accordance with Topic 718 as of the date of grant. The grant date fair value of the performance stock
units is shown at target performance. At the highest level of performance, the value of the performance stock units on the applicable grant date would be: $4,843,171 for Mr. Dolan; $423,812 for Mr. Byrnes; $459,134 for Mr. Haughton; and
$417,239 for Mr. D'Ambrosio.

(4) This row reflects the possible payouts with respect to grants of annual incentive awards under MSG
Entertainment's MPIP for performance in the fiscal year ended June 30, 2022. Each of the NEOs is assigned a target bonus which is a percentage of the NEO's base salary as of such fiscal year end. There is no threshold amount for
annual incentive awards. The amounts of annual incentive awards actually paid by MSG

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Entertainment in September 2022 for performance in the 2022 fiscal year are disclosed in the Non-Equity Incentive Plan Compensation column of the Summary Compensation Table above. For more information regarding the terms of these annual incentive awards, please see "— MSG Entertainment's Compensation Program Practices and Policies — Elements of MSG Entertainment's Compensation Program — Annual Cash Incentives."

(5) This row reflects the threshold, target and maximum number of MSG Entertainment performance stock units awarded
in the fiscal year ended June 30, 2022. Such performance stock units were approved by the MSG Entertainment Compensation Committee in August 2021 and April 2022 (only with respect to Messrs. Dolan, Byrnes and Haughton) and granted for purposes
of Topic 718 in June 2022, when the performance targets were set for such award. The performance stock unit award was approved with a target number of units, with an actual payment based upon the achievement of performance targets. This grant of
performance stock units, which was made under the MSG Entertainment Employee Stock Plan, will vest upon the later of September 15, 2024 and the date of certification of achievement against pre-determined performance goals measured in the 2024 fiscal year, subject to continued employment requirements and employment agreement and award terms (as applicable). See "— MSG Entertainment's Compensation Program Practices and Policies —
Long-term Incentives — MSG Entertainment Performance Stock Units" and "— Employment Agreements."

(6) This row reflects the number of MSG Entertainment restricted stock units awarded in the fiscal year ended
June 30, 2022. These grants of restricted stock units, which were made under the MSG Entertainment Employee Stock Plan, will vest in three equal installments on September 15, 2022, 2023 and 2024, subject to continued employment
requirements and employment agreement and award terms (as applicable). See "— MSG Entertainment's Compensation Program Practices and Policies — Long-term Incentives — MSG Entertainment Restricted Stock Units" and
"— Employment Agreements."

***Outstanding MSG Entertainment Equity Awards at June 30, 2022***

The table below shows (i) each grant of MSG Entertainment stock options that is unexercised and outstanding, and (ii) the aggregate number and value of unvested MSG Entertainment restricted stock units and MSG Entertainment performance stock units outstanding (assuming target performance) for each NEO, in each case, as of June 30, 2022. See "— Treatment of Outstanding Awards" below for a discussion of the impact of the Distribution on certain of the awards discussed in the following table.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name** | **Number of<br>Securities<br>Underlying<br>Unexercised<br>Options (#)<br>Exercisable** | **Number of<br>Securities<br>Underlying<br>Unexercised<br>Options (#)<br>Unexercisable** | **Option<br>Exercise<br>Price<br>($)** | **Option<br>Expiration<br>Date** | **Equity Incentive<br>Plan Awards:<br>Number of<br>Unearned<br>Shares, Units or<br>Other Rights<br>That Have Not<br>Vested (#)** | **Equity Incentive<br>Plan Awards:<br>Market or<br>Payout Value of<br>Unearned<br>Shares, Units or<br>Other Rights<br>That Have Not<br>Vested ($)<sup>(1)</sup>** |
|  James L. Dolan | 184150<sup>(2)</sup> |  | 103.55 | 03/15/2024 |  |  |
|  | 146349<sup>(3)</sup> |  | 125.59 | 03/01/2025 |  |  |
|  | 108630<sup>(4)</sup> |  | 145.64 | 02/25/2026 |  |  |
|  | 63704<sup>(5)</sup> | 127406<sup>(5)</sup> | 83.26 | 02/26/2027 |  |  |
|  |  |  |  |  | 312799<sup>(6)</sup> | 16459483 |
|  David F. Byrnes |  |  |  |  | 14830<sup>(7)</sup> | 780355 |
|  Jamal H. Haughton |  |  |  |  | 16066<sup>(8)</sup> | 845393 |
|  Philip G. D'Ambrosio |  |  |  |  | 28079<sup>(9)</sup> | 1477517 |
|  Courtney M. Zeppetella |  |  |  |  |  |  |

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(1) Calculated using the closing market price of MSG Entertainment's Class A Common Stock on the NYSE on
June 30, 2022 of $52.62 per share.

(2) The amounts in this row represent Mr. Dolan's time-based stock options granted at the effective time
of the Networks Merger ("Effective Time") as a result of the conversion of Mr. Dolan's MSG Networks

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time-based stock options and performance-based stock options granted as long-term incentive awards on September 15, 2016, which have fully vested.

(3) The amounts in this row represent Mr. Dolan's time-based stock options granted at the Effective Time
of the Networks Merger as a result of the conversion of Mr. Dolan's MSG Networks time-based stock options and performance-based stock options granted as long-term incentive awards on September 1, 2017, which have fully vested.

(4) The amounts in this row represent Mr. Dolan's time-based stock options granted at the Effective Time
of the Networks Merger as a result of the conversion of Mr. Dolan's MSG Networks time-based stock options and performance-based stock options granted as long-term incentive awards on August 28, 2018, which have fully vested.

(5) The amounts in this row represent Mr. Dolan's 191,110 time-based stock options (63,704 of which have
vested) granted at the Effective Time of the Networks Merger as a result of the conversion of Mr. Dolan's MSG Networks time-based stock options and performance-based (based on target performance) stock options granted as long-term
incentive awards on August 29, 2019. The unvested portion of the time-based stock options will vest on August 29, 2022, subject to continued employment requirements and employment agreement and award terms (as applicable).

(6) With respect to Mr. Dolan, the total in this column includes 5,399 MSG Entertainment restricted stock
units (from an original award of 16,197 restricted stock units) and 16,197 MSG Entertainment target performance stock units granted in respect of MSG Sports long-term incentive awards granted by The Madison Square Garden Company prior to the 2020
Entertainment Distribution. 5,399 restricted stock units vest on September 15, 2022. 16,197 performance stock units vest upon the later of September 15, 2022, and the date of certification of achievement against pre-determined performance goals measured in the final year of the three-year period ending June 30, 2022. This column also includes 22,632 MSG Entertainment restricted
stock units (from an original award of 33,947 restricted stock units) issued in respect of MSG Networks restricted stock units and 33,947 MSG Entertainment restricted stock units issued in respect of MSG Networks performance stock units, granted by
MSG Networks prior to the Networks Merger. 11,316 and 11,316 restricted stock units issued in respect of the MSG Networks restricted stock units vest on September 15, 2022 and 2023, respectively. 33,947 restricted stock units issued in
respect of the MSG Networks performance stock units vest on September 15, 2023. In addition, this column includes an award of 26,061 restricted stock units (from an original award of 39,091 restricted stock units) and 39,091 target performance
stock units approved as long-term incentive awards on August 25, 2020, 68,979 restricted stock units and 68,979 target performance stock units approved as long-term incentive awards on August 27, 2021, and 15,757 restricted stock units and
15,757 target performance stock units approved as long-term incentive awards on April 20, 2022. The restricted stock units vest ratably over three years on September 15th each year following the year of grant. The performance stock units
cliff-vest upon the later of September 15th following a three year-period, and the date of certification of achievement against pre-determined performance goals measured in the final year of the period ending
June 30th of the applicable year. All vestings are subject to continued employment and the terms of Mr. Dolan's employment agreement. For more information on MSG Sports restricted stock units and performance stock units granted by The
Madison Square Garden Company prior to the 2020 Entertainment Distribution, which are not reflected herein, see MSG Sports' Definitive Proxy Statement, filed with the SEC on October 27, 2020.

(7) With respect to Mr. Byrnes, the total in this column represents an award of 7,415 restricted stock units
and 7,415 target performance stock units approved as long-term incentive awards on April 20, 2022. The restricted stock units vest ratably over three years on September 15th each year following the year of grant. The performance stock units
cliff-vest upon the later of September 15th following a three year-period, and the date of certification of achievement against pre-determined performance goals measured in the final year of the period ending June 30th of the applicable year. All
vestings are subject to continued employment and the terms of Mr. Byrnes' employment agreement.

(8) With respect to Mr. Haughton, the total in this column represents an award of 8,033 restricted stock units
and 8,033 target performance stock units approved as long-term incentive awards on April 20, 2022. The restricted stock units vest ratably over three years on September 15th each year following the year of grant. The performance stock units
cliff-vest upon the later of September 15th following a three year-period, and

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the date of certification of achievement against pre-determined performance goals measured in the final year of the period ending June 30th of the applicable year. All vestings are subject to continued employment and the terms of Mr. Haughton's employment agreement.

(9) With respect to Mr. D'Ambrosio, the total in this column includes an award of 480 Company restricted
stock units (from an original award of 1,440 restricted stock units) and 1,440 Company target performance stock units granted in respect of MSG Sports long-term incentive awards granted by The Madison Square Garden Company prior to the 2020
Entertainment Distribution. 480 restricted stock units vest on September 15, 2022. 1,440 performance stock units vest upon the later of September 15, 2022, and the date of certification of achievement against pre-determined performance goals
measured in the final year of the three-year period ending June 30, 2022. In addition, this column includes an award of 3,862 restricted stock units (from an original award of 5,792 restricted stock units) and 5,792 target performance stock
units approved as long-term incentive awards on August 25, 2020, 762 restricted stock units (from an original award of 1,143 restricted stock units) and 1,143 target performance stock units approved as long-term incentive awards on April 22, 2021,
and 7,300 restricted stock units and 7,300 target performance stock units approved as long-term incentive awards on August 27, 2021. The restricted stock units vest ratably over three years on September 15th each year following the year of grant.
The performance stock units cliff-vest upon the later of September 15th following a three year-period, and the date of certification of achievement against pre-determined performance goals measured in the final year of the period ending June 30th of
the applicable year. All vestings are subject to continued employment and the terms of Mr. D'Ambrosio's employment agreement. For more information on MSG Sports restricted stock units and performance stock units granted by The Madison
Square Garden Company prior to the 2020 Entertainment Distribution, which are not reflected herein, see MSG Sports' Definitive Proxy Statement, filed with the SEC on October 27, 2020.

**MSG Entertainment Option Exercises and Stock Vested** 

The table below shows MSG Entertainment restricted stock unit awards that vested during the fiscal year ended June 30, 2022. No MSG Entertainment stock options were exercised in the fiscal year ended June 30, 2022.

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| | | |
|:---|:---|:---|
| **Name** | **Restricted Stock Units** | **Restricted Stock Units** |
| **Name** | **Number of Shares Acquired<br>on Vesting** | **Value Realized on<br>Vesting<sup>(1)</sup>** |
|  James L. Dolan | 49274 | $3967050 |
|  David F. Byrnes |  |  |
|  Jamal H. Haughton |  |  |
|  Philip G. D'Ambrosio | 4532 | $364871 |
|  Courtney M. Zeppetella |  |  |

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(1) Calculated using the closing price of MSG Entertainment's Class A Common Stock on the NYSE on the
vesting dates, September 15, 2021, November 1, 2021, November 16, 2021, and April 1, 2022, of $80.51, $73.94, $75.46, and $81.76 per share, respectively.

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**MSG Entertainment Pension Benefits** 

The table below shows the present value of accumulated benefits payable to each NEO, including the number of years of service credited to the NEO, under MSG Entertainment's defined benefit pension plans as of June 30, 2022 (which plans are being assigned to the Company in connection with the Distribution).

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| | | |
|:---|:---|:---|
| **Name**  | **Plan Name<sup>(1)</sup>** | **Present Value of<br>Accumulated<br>Benefit ($)<sup>(2)</sup>** |
|  James L. Dolan | Cash Balance Pension Plan– <sup>(3)</sup> |  |
|  David F. Byrnes | Cash Balance Pension Plan– <sup>(4)</sup> |  |
|  Jamal H. Haughton | Cash Balance Pension Plan– <sup>(4)</sup> |  |
|  Philip G. D'Ambrosio | Cash Balance Pension Plan– <sup>(4)</sup> |  |
|  Courtney M. Zeppetella | Cash Balance Pension Plan– <sup>(4)</sup> |  |

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(1) Accruals under the Cash Balance Pension Plan were frozen as of December 31, 2015.

(2) Additional information concerning Pension Plans and Postretirement Plan Assumptions is set forth in
Note 16 to MSG Entertainment's financial statements included in its 2022 Form 10-K.

(3) Mr. Dolan does not participate in the Cash Balance Pension Plan.

(4) Messrs. Byrnes, Haughton and D'Ambrosio and Ms. Zeppetella commenced employment with MSG Entertainment
after the Cash Balance Pension Plan was frozen and therefore are not eligible to participate.

MSG Entertainment maintains several benefit plans for its executive officers. The material terms and conditions are discussed below.

*Cash Balance Pension Plan* 

MSG Entertainment sponsors the Cash Balance Pension Plan, a tax-qualified defined benefit plan which was retained by MSG Entertainment in the 2020 Entertainment Distribution. The Cash Balance Pension Plan generally covers regular full-time and part-time non-union employees of MSG Entertainment and certain of its affiliates who have completed one year of service. The Cash Balance Pension Plan was frozen to future benefit accruals effective as of December 31, 2015 (though accrued benefits continue to earn interest credits). A notional account is maintained for each participant under the Cash Balance Pension Plan, which consists of (i) annual allocations made by MSG Entertainment as of the end of each year on behalf of each participant who has completed 800 hours of service during the year that range from 3% to 9% of the participant's compensation, based on the participant's age and (ii) monthly interest credits based on the average of the annual rate of interest on the 30-year U.S. Treasury Bonds for the months of September, October and November of the prior year. Compensation includes all direct cash compensation received while a participant as part of the participant's primary compensation structure (excluding bonuses, fringe benefits, and other compensation that is not received on a regular basis), and before deductions for elective deferrals, subject to applicable IRS limits.

A participant's interest in the Cash Balance Pension Plan is subject to vesting limitations for the first three years of employment. A participant's account will also vest in full upon his or her termination due to death, disability or retirement after attaining age 65. Upon retirement or other termination of employment with MSG Entertainment, the participant may elect a distribution of the vested portion of the cash balance account. Any amounts remaining in the Cash Balance Pension Plan will continue to be credited with interest until the account is paid. The normal form of benefit payment for an unmarried participant is a single life annuity and the normal form of benefit payment for a married participant is a 50% joint and survivor annuity. The participant, with spousal consent if applicable, can waive the normal form and elect a single life annuity or a lump sum.

*Madison Square Garden 401(k) Savings Plan* 

Under the Savings Plan, a tax-qualified retirement savings plan which was retained by MSG Entertainment after the 2020 Entertainment Distribution, participating employees, including MSG Entertainment's executive

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officers, may contribute into their plan accounts a percentage of their eligible pay on a pre-tax basis as well as a percentage of their eligible pay on an after-tax basis. MSG Entertainment provides a (a) fully-vested matching contribution equal to 100% of the first 4% of eligible pay contributed by participating employees and (b) discretionary non-elective fully-vested contribution by MSG Entertainment. The Savings Plan is a multiple-employer plan sponsored by MSG Entertainment, to which MSG Sports also contributes for its employees. Prior to the Networks Merger, MSG Networks also contributed for its employees.

*Excess Savings Plan* 

The Excess Savings Plan, which was retained by MSG Entertainment following the 2020 Entertainment Distribution, is an unfunded, non-qualified deferred compensation plan that operates in conjunction with MSG Entertainment's tax-qualified Savings Plan. An employee is eligible to participate in the Excess Savings Plan for a calendar year if his or her compensation (as defined in the Savings Plan) in the preceding year exceeded (or would have exceeded, if the employee had been employed for the entire year) the IRS limit on the amount of compensation that can be taken into account in determining contributions under tax-qualified retirement plans ($305,000 in calendar year 2022) and he or she makes an election to participate prior to the beginning of the year. An eligible employee whose contributions to the Savings Plan are limited as a result of this compensation limit or as a result of reaching the maximum 401(k) deferral limit ($20,500, or $27,000 if 50 or over, for calendar year 2022) can continue to make pre-tax contributions under the Excess Savings Plan of up to 4% of his or her eligible pay. In addition, MSG Entertainment provides a (a) fully-vested matching contribution equal to 100% of the first 4% of eligible pay contributed by participating employees and (b) discretionary non-elective fully-vested contribution by MSG Entertainment. Account balances under the Excess Savings Plan are credited monthly with the rate of return earned by the stable value fund offered as an investment alternative under the Savings Plan. Distributions of vested benefits are made in a lump sum as soon as practicable after the participant's termination of employment with MSG Entertainment.

*Our Retirement Benefits* 

Effective as of the Distribution, we will retain the assets and liabilities under the Cash Balance Pension Plan. Additionally, we will be added as a contributing employer of the Savings Plan following the Distribution.

After the Distribution, we will retain the Excess Savings Plan and liabilities for benefits under such plan relating to MSG Entertainment's employees will be assumed by MSG Entertainment. The actuarial present values of the accumulated pension benefits of Messrs. Dolan, Byrnes, Haughton and D'Ambrosio, who have participated in certain of these plans as of June 30, 2022, are reported in the MSG Entertainment Pension Benefits Table and MSG Entertainment Non-Qualified Deferred Compensation Table herein.

**MSG Entertainment Nonqualified Deferred Compensation** 

The table below shows (i) the contributions made by the Company's NEOs and MSG Entertainment during the fiscal year ended June 30, 2022, (ii) aggregate earnings on the NEOs' account balance during the fiscal year ended June 30, 2022 and (iii) the account balance of the NEOs under the Excess Savings Plan as of June 30, 2022.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name** | **Plan Name** | **Executive<br>Contributions<br>in 2022 ($) <sup>(1)</sup>** | **Registrant<br>Contributions<br>in 2022 ($) <sup>(2)</sup>** | **Aggregate<br>Earnings<br>in 2022<br>($) <sup>(3)</sup>** | **Aggregate<br>Withdrawals/<br>Distributions<br>($)** | **Aggregate<br>Balance<br>at End of<br>2022 ($)** |
|  James L. Dolan | Excess Savings Plan | 64046 | 86709 | 8865 | – | 706172 |
|  David F. Byrnes | Excess Savings Plan | 108 |  |  | – | 108 |
|  Jamal H. Haughton | Excess Savings Plan | 8108 |  | 13 | – | 8121 |
|  Philip G. D'Ambrosio | Excess Savings Plan | 11673 | 15675 | 2093 | – | 159361 |
|  Courtney M. Zeppetella | Excess Savings Plan |  |  |  | – |  |

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(1) These amounts represent a portion of the NEOs' salaries and/or annual cash incentives, which are included
in the numbers reported in the "Salary" or "Non-Equity Incentive Plan Compensation" columns, as applicable, of the Summary Compensation Table that the NEOs contributed to the Excess Savings
Plan.

(2) These amounts are reported in the "All Other Compensation" column of the Summary Compensation Table.

(3) These amounts are not reported in the "All Other Compensation" column of the Summary Compensation
Table.

**Termination and Severance** 

This section describes the payments that would have been received by the NEOs who were employed by MSG Entertainment as of June 30, 2022 (the last business day of MSG Entertainment's 2022 fiscal year) upon various terminations of employment from MSG Entertainment scenarios. The information under "Separation from MSG Entertainment" assumes that each of the NEOs was employed by MSG Entertainment under his or her applicable employment agreement, and his or her employment terminated as of June 30, 2022. This information is presented to illustrate the payments the NEOs would have received from MSG Entertainment under the various termination scenarios. See " — Employment Agreements" for a description of severance arrangements we have agreed to provide certain of our NEOs.

*Separation from MSG Entertainment* 

Payments may be made to MSG Entertainment's executive officers upon the termination of their employment with MSG Entertainment depending upon the circumstances of their termination, which include termination by MSG Entertainment without cause, termination by MSG Entertainment with cause, termination by the officer for good reason, other voluntary termination by the officer, retirement, death, disability, or termination following a change in control of MSG Entertainment or following a going-private transaction. Certain of these circumstances are addressed in the employment agreements between MSG Entertainment and each of its executive officers. In addition, MSG Entertainment award agreements for long-term incentives also address some of these circumstances. The Distribution will not constitute a change in control of MSG Entertainment for purposes of the employment agreements between MSG Entertainment and its executive officers or MSG Entertainment's long-term incentive award agreements.

***Award Agreement Terms in the Event of a Change in Control or Going Private Transaction***

The award agreements governing the restricted stock units of MSG Entertainment provide that upon a change in control or going private transaction, the applicable NEO will be entitled to either (in the successor entity's discretion) (a) cash equal to the unvested restricted stock units multiplied by the per share price paid in the change in control or going private transaction, or (b) only if the successor entity is a publicly-traded company, a replacement restricted stock unit award from the successor entity with the same terms. Any such cash award as provided in clause (a) above would be payable, and any replacement restricted stock unit award as provided in clause (b) above would vest, upon the earliest of (x) the date the restricted stock units were originally scheduled to vest so long as the applicable NEO remains continuously employed, (y) a termination without "cause" or a resignation for "good reason" (as each term is defined in the applicable award agreement), or (z) only if the successor entity elects clause (b) above, upon a resignation without "good reason" that is at least six months, but no more than nine months, following the change in control or going private transaction.

The award agreements governing the performance restricted stock units of MSG Entertainment provide that upon a change in control or going private transaction, the unvested performance stock units will vest at the target level and be payable (i) upon a change in control, regardless of whether the applicable NEO's employment is terminated, or (ii) following a going private transaction if the applicable NEO is employed through July 1, 2022 (in the case of MSG Entertainment awards granted in respect of MSG Sports 2020 fiscal year awards), July 1, 2023 (in the case of fiscal year 2021 awards) or July 1, 2024 (in the case of 2022 fiscal year awards), or is

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terminated without "cause" or resigns for "good reason" (as each term is defined in the applicable award agreement) prior to such applicable date.

The award agreements governing the stock options of MSG Entertainment provide that upon a change in control or going private transaction, the applicable NEO will be entitled to either (a) cash equal to the number of options multiplied by the excess of the per share price paid in the change in control or going private transaction over the exercise price, or (b) only if the successor entity is a publicly traded company, a replacement option award from the successor entity with the same terms. Any such cash award would be payable, or unvested options would vest, upon the earliest of (x) the date the options were originally scheduled to vest so long as the NEO remains continuously employed, (y) a termination without cause or a resignation for good reason within three years following the change in control or going private transaction, or (z) only if the successor entity elects clause (b) above, upon a resignation without good reason that is at least six months, but no more than nine months, following the change in control or going private transaction. Any stock options that have an exercise price greater than the per share price paid in the change in control or going private transaction may be cancelled for no consideration.

For purposes of the "— Termination and Severance — Award Agreement Terms in the Event of a Change in Control or Going Private Transaction — Benefits Payable as a Result of Termination of Employment by MSG Entertainment Without Cause or for Good Reason Following a Change in Control or Going-Private Transaction" below, we have assumed that the applicable NEO has either been terminated without "cause" or resigned for "good reason" after the close of business on June 30, 2022.

*Quantification of Termination and Severance Payable by MSG Entertainment* 

The following tables set forth a quantification of estimated severance and other benefits payable by MSG Entertainment to the NEOs under various circumstances regarding the termination of their employment. In calculating these amounts, the following was taken into consideration or otherwise assumed:

• Termination of employment from MSG Entertainment occurred after the close of business on June 30, 2022.

• Equity awards (other than stock options) were valued using the closing market price of MSG Entertainment's
Class A Common Stock of $52.62 and MSG Sports' Class A common stock of $151.00 on the NYSE on June 30, 2022.

• Stock options were valued at their intrinsic value equal to the closing market price of MSG Entertainment's
Class A Common Stock of $52.62 and MSG Sports' Class A common stock of $151.00 on the NYSE on June 30, 2022, less the per share exercise price, multiplied by the number of MSG Entertainment shares underlying the stock options.

• We have assumed that the per share price paid in a change in control or going private transaction is equal to the
closing market price of MSG Entertainment's Class A Common Stock of $52.62 and MSG Sports' Class A common stock of $151.00 on the NYSE on June 30, 2022.

• In the event of termination of employment from MSG Entertainment, the payment of certain long-term incentive
awards and other amounts may be delayed, depending upon the terms of each specific MSG Entertainment award agreement, the provisions of the applicable NEO's employment agreement with MSG Entertainment and the applicability of Code
Section 409A. In quantifying aggregate termination payments, the timing of the payments was not taken into account and the value of payments that would be made over time was not discounted, except where otherwise disclosed.

• It was assumed that all MSG Entertainment performance objectives for performance-based awards are achieved (but
not exceeded).

• With respect to Mr. Dolan, it was assumed that on June 30, 2022 he is either simultaneously terminated
from both MSG Sports and MSG Entertainment, or has no continued employment relationship with MSG Sports.

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*<u>Benefits Payable as a Result of Voluntary Termination of Employment from MSG Entertainment by NEO, Termination of Employment by NEO Due to Retirement, or Termination of Employment by MSG Entertainment for Cause</u>*

In the event of a voluntary termination of employment from MSG Entertainment, a retirement from MSG Entertainment, or event of termination by MSG Entertainment for cause, no NEO would have been entitled to any payments at June 30, 2022, excluding any pension or other vested retirement benefits.

*<u>Benefits Payable as a Result of Termination of Employment by MSG Entertainment Without Cause or Termination of Employment by NEO for Good Reason\*</u>* 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Elements**<br>| **James<br>L. Dolan** | **David<br>F. Byrnes** | **Jamal<br>H. Haughton** | **Philip G.<br>D'Ambrosio** | **Courtney<br>M. Zeppetella** |
|  Severance | $12000000<sup>(1)</sup> | $3200000<sup>(1)</sup> | $4400000<sup>(1)</sup> | $1190000<sup>(2)</sup> | $825000<sup>(2)</sup> |
|  Pro rata bonus | $5566000<sup>(3)</sup> | $1113200<sup>(3)</sup> | $1530650<sup>(3)</sup> | $809665<sup>(3)</sup> | —<sup>(3)</sup> |
|  Unvested restricted stock | $9091421<sup>(4)</sup> | $390177<sup>(4)</sup> | $422696<sup>(4)</sup> |  |  |
|  Unvested performance stock | $7368063<sup>(5)</sup> | $390177<sup>(5)</sup> | $422696<sup>(5)</sup> |  |  |
|  Unvested time-based stock options | —<sup>(6)</sup> |  |  |  |  |

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\* The amounts in this table do not include any pension or other vested retirement benefits. 

(1) Represents severance equal to two times the sum of his annual base salary and annual target bonus.

(2) Represents severance equal to the sum of his or her annual base salary and annual target bonus.

(3) Represents a pro rata annual bonus for the year in which the termination occurred, payable to the same extent
as annual bonuses are paid to MSG Entertainment's other named executive officers under MSG Entertainment's program without regard to personal performance objectives. Due to the timing of Ms. Zeppetella's commencement of employment
with MSG Entertainment, she was not eligible for an annual bonus for the fiscal year ended June 30, 2022.

(4) Represents the full vesting of the restricted stock units issued in April 2020 in respect of outstanding
MSG Sports restricted stock unit awards granted by The Madison Square Garden Company prior to the 2020 Entertainment Distribution, the 2021 fiscal year grants of restricted stock units, the restricted stock units issued in July 2021 in respect of
outstanding MSG Networks restricted stock unit and performance stock unit awards held at the time of the Networks Merger, and the 2022 fiscal year grants of restricted stock units, as applicable, which are: Mr. Dolan, 5,399 units ($284,095), 26,061
units ($1,371,330), 56,579 units ($2,977,187) and 84,736 units ($4,458,808), respectively; Mr. Byrnes, 7,415 units ($390,177) (2022 fiscal year only); and Mr. Haughton, 8,033 units ($422,696) (2022 fiscal year only). In addition to the amounts
included in the table above, Mr. Dolan would also fully vest in his outstanding MSG Sports restricted stock units, which are: 5,399 MSG Sports units ($815,249).

(5) Represents the full vesting at target of the performance stock units issued in April 2020 in respect of
outstanding MSG Sports performance stock unit awards granted by The Madison Square Garden Company prior to the 2020 Entertainment Distribution, and the 2021 and 2022 fiscal year grants of performance stock units, as applicable, which are: Mr. Dolan,
16,197 units ($852,286), 39,091 units ($2,056,968), and 84,736 units ($4,458,808), respectively; Mr. Byrnes 7,415 units ($390,177) (2022 fiscal year only); and Mr. Haughton 8,033 units ($422,696) (2022 fiscal year only). In addition to the amounts
included in the table above, Mr. Dolan would also fully vest in his outstanding MSG Sports performance stock units, which are (at target): 16,197 MSG Sports units ($2,445,747).

(6) Represents the full vesting of the stock options issued in July 2021 in respect of outstanding MSG Networks
time-based and performance-based options granted to Mr. Dolan by MSG Networks as long-term incentive awards in August 2019, but such options have no value because each award had an exercise price greater than the closing market price of a share
of MSG Entertainment's Class A Common Stock on June 30, 2022.

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*<u>Benefits Payable as a Result of Termination of Employment from MSG Entertainment Due to Death or Disability</u>\** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Elements**<br>| **James<br>L. Dolan** | **David<br>F. Byrnes** | **Jamal<br>H. Haughton** | **Philip G.<br>D'Ambrosio** | **Courtney<br>M. Zeppetella** |
|  Severance |  |  |  |  | – |
|  Pro rata bonus | $5566000<sup>(1)</sup> | $1113200<sup>(1)</sup> | $1530650<sup>(1)</sup> |  | – |
|  Unvested restricted stock | $9091420<sup>(2)</sup> | $390177<sup>(2)</sup> | $422696<sup>(2)</sup> | $652698<sup>(2)</sup> | – <sup>(2)</sup> |
|  Unvested performance stock | $7368063<sup>(3)</sup> | $390177<sup>(3)</sup> | $422696<sup>(3)</sup> | $824819<sup>(3)</sup> | – <sup>(3)</sup> |
|  Unvested time-based stock options | —<sup>(4)</sup> |  |  |  | – |

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\* The amounts in this table do not include any pension or other vested retirement benefits. 

(1) Represents a pro rata annual bonus for the year in which the termination occurred, payable to the same extent
as annual bonuses are paid to MSG Entertainment's other named executive officers under MSG Entertainment's program but without regard to personal performance objectives.

(2) Represents the full vesting of the restricted stock units issued in April 2020 in respect of outstanding MSG
Sports restricted stock unit awards granted by The Madison Square Garden Company prior to the 2020 Entertainment Distribution, the 2021 fiscal year grants of restricted stock units, the restricted stock units issued in July 2021 in respect of
outstanding MSG Networks restricted stock unit and performance stock unit awards held at the time of the Networks Merger, and the 2022 fiscal year grants of restricted stock units, as applicable, which are: Mr. Dolan, 5,399 units ($284,095), 26,061
units ($1,371,330), 56,579 units ($2,977,187) and 84,736 units ($4,458,808), respectively; Mr. Byrnes, 7,415 units ($390,177) (2022 fiscal year only); Mr. Haughton, 8,033 units ($422,696) (2022 fiscal year only); and Mr. D'Ambrosio, 480 units
($25,258), 4,624 units ($243,315), and 7,300 units ($384,126), respectively (no Networks Merger units). Ms. Zeppetella did not have any equity awards outstanding as of June 30, 2022, but would otherwise be entitled to the full vesting of any
unvested restricted stock units. In addition to the amounts included in the table above, Messrs. Dolan and D'Ambrosio would also fully vest in their outstanding MSG Sports restricted stock units, which are: Mr. Dolan, 5,399 MSG Sports
units ($815,249); and Mr. D'Ambrosio, 480 MSG Sports units ($72,480).

(3) Represents the full vesting at target of the performance stock units issued in April 2020 in respect of
outstanding MSG Sports performance stock unit awards granted by The Madison Square Garden Company prior to the 2020 Entertainment Distribution, and the 2021 and 2022 fiscal year grants of performance stock units, as applicable, which are: Mr. Dolan,
16,197 units ($852,286), 39,091 units ($2,056,968) and 84,736 units ($4,458,808), respectively; Mr. Byrnes, 7,415 units ($390,177) (2022 fiscal year only); Mr. Haughton, 8,033 units ($422,696) (2022 fiscal year only); and
Mr. D'Ambrosio, 1,440 units ($75,773), 6,935 units ($364,920) and 7,300 units ($384,126). Ms. Zeppetella did not have any equity awards outstanding as of June 30, 2022, but would otherwise be entitled to the full vesting of any unvested
performance stock units. In addition to the amounts included in the table above, Messrs. Dolan and D'Ambrosio would also fully vest in their outstanding MSG Sports performance stock units, which are (at target): Mr. Dolan, 16,197 MSG
Sports units ($2,445,747); and Mr. D'Ambrosio, 1,440 MSG Sports Units ($217,440).

(4) Represents the full vesting of the stock options issued in July 2021 in respect of outstanding MSG Networks
time-based and performance-based options granted to Mr. Dolan by MSG Networks as long-term incentive awards in August 2019, but such options have no value because each award had an exercise price greater than the closing market price of a share
of MSG Entertainment Class A Common Stock on June 30, 2022.

(5) With respect to Mr. D'Ambrosio and Ms. Zeppetella, a termination by MSG Entertainment due to
disability would be treated under their employment agreements as a termination by MSG Entertainment without cause and, therefore, Mr. D'Ambrosio and Ms. Zeppetella would be entitled to the amounts reflected in the table above, as well as
those reflected in the "Benefits Payable as a Result of Termination of Employment by MSG Entertainment Without Cause or Termination of Employment by NEO for Good Reason" table.

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*<u>Benefits Payable as a Result of Termination of Employment from MSG Entertainment Without Cause or for Good Reason Following a Change in Control or Going-Private Transaction</u> <u><sup>(1)(2)</sup></u><u>\*</u>* 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Elements**<br>| **James<br>L. Dolan** | **David<br>F. Byrnes** | **Jamal<br>H. Haughton** | **Philip G.<br>D'Ambrosio** | **Courtney<br>M. Zeppetella** |
|  Severance | $12000000<sup>(3)</sup> | $3200000<sup>(3)</sup> | $4400000<sup>(3)</sup> | $1190000<sup>(4)</sup> | $825000<sup>(4)</sup> |
|  Pro rata bonus | $5566000<sup>(5)</sup> | $1113200<sup>(5)</sup> | $1530650<sup>(5)</sup> | $809665<sup>(5)</sup> | —<sup>(5)</sup> |
|  Unvested restricted stock | $9091421<sup>(6)</sup> | $390177<sup>(6)</sup> | $422696<sup>(6)</sup> | $652698<sup>(6)</sup> | —<sup>(6)</sup> |
|  Unvested performance stock | $7368063<sup>(7)</sup> | $390177<sup>(7)</sup> | $422696<sup>(7)</sup> | $824819<sup>(7)</sup> | —<sup>(7)</sup> |
|  Unvested time-based stock options | —<sup>(8)</sup> |  |  |  |  |

---

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\* The amounts in this table do not include any pension or other vested retirement benefits. 

(1) The information in this table and the footnotes hereto describe amounts payable as a result of certain
terminations of employment by the NEO or MSG Entertainment following a change in control. The amounts payable as a result of termination of employment by the NEO or MSG Entertainment following a going private transaction are generally equal to or
less than the amounts payable as a result of termination of employment by the NEO or MSG Entertainment following a change in control. Notwithstanding the amounts set forth in this table, if any payment otherwise due to any of the NEOs would result
in the imposition of an excise tax under Code Section 4999, then MSG Entertainment would instead pay to the applicable NEO either (a) the amounts set forth in this table, or (b) the maximum amount that could be paid to such NEO
without the imposition of the excise tax, whichever results in a greater amount of after-tax proceeds to such NEO.

(2) As noted in "— Termination and Severance — Award Agreement Terms in the Event of a Change
in Control or Going Private Transaction" above, the amounts in this table assume that the applicable NEO has either been terminated without "cause" or resigned for "good reason" following such a change in control or going
private transaction. The award agreements applicable to stock awards held by the NEOs dictate the terms of the vesting of those awards and any severance or bonus reflected in this table is provided as a result of the terms of the applicable
NEO's employment agreement and its terms related to termination without "cause" or resigned for "good reason," and such severance is not enhanced by the change of control or going private transaction. For additional
information, see "— Termination and Severance — Award Agreement Terms in the Event of a Change in Control or Going Private Transaction" above.

(3) Represents severance equal to two times the sum of his annual base salary and annual target bonus.

(4) Represents severance equal to the sum of his or her annual base salary and annual target bonus.

(5) Represents a pro rata annual bonus for the year in which the termination occurred, payable to the same extent
as annual bonuses are paid to MSG Entertainment's other named executive officers under MSG Entertainment's program without regard to personal performance objectives. Due to the timing of Ms. Zeppetella's commencement of
employment with MSG Entertainment, she was not eligible for an annual bonus for the fiscal year ended June 30, 2022.

(6) Represents the full vesting of the restricted stock units issued in April 2020 in respect of outstanding MSG
Sports restricted stock unit awards granted by The Madison Square Garden Company prior to the 2020 Entertainment Distribution, the 2021 fiscal year grants of restricted stock units, the restricted stock units issued in July 2021 in respect of
outstanding MSG Networks restricted stock unit and performance stock unit awards held at the time of the Networks Merger, and the 2022 fiscal year grants of restricted stock units, as applicable, which are: Mr. Dolan, 5,399 units ($284,095), 26,061
units ($1,371,330), 56,579 units ($2,977,187) and 84,736 units ($4,458,808), respectively; Mr. Byrnes, 7,415 units ($390,177) (2022 fiscal year only); Mr. Haughton, 8,033 units ($422,696) (2022 fiscal year only); and Mr. D'Ambrosio, 480 units
($25,258), 4,624 units ($243,315), and 7,300 units ($384,126), respectively (no Networks Merger units). Ms. Zeppetella did not have any equity awards outstanding as of June 30, 2022, but would otherwise be entitled to the full vesting of any
unvested restricted stock units. In addition to the amounts included in the table above, Messrs. Dolan and D'Ambrosio would also fully vest in their outstanding MSG Sports restricted stock units, which are: Mr. Dolan, 5,399 MSG Sports
units ($815,249); and Mr. D'Ambrosio, 480 MSG Sports units ($72,480).

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(7) Represents the full vesting at target of the performance stock units issued in April 2020 in respect of
outstanding MSG Sports performance stock unit awards granted by The Madison Square Garden Company prior to the 2020 Entertainment Distribution, and the 2021 and 2022 fiscal year grants of performance stock units, as applicable, which are: Mr. Dolan,
16,197 units ($852,286), 39,091 units ($2,056,968) and 84,736 units ($4,458,808), respectively; Mr. Byrnes, 7,415 units ($390,177) (2022 fiscal year only); Mr. Haughton, 8,033 units ($422,696) (2022 fiscal year only); and
Mr. D'Ambrosio, 1,440 units ($75,773), 6,935 units ($364,920) and 7,300 units ($384,126). Ms. Zeppetella did not have any equity awards outstanding as of June 30, 2022, but would otherwise be entitled to the full vesting of any unvested
performance stock units. In addition to the amounts included in the table above, Messrs. Dolan and D'Ambrosio would also fully vest in their outstanding MSG Sports performance stock units, which are (at target): Mr. Dolan, 16,197 MSG
Sports units ($2,445,747); and Mr. D'Ambrosio, 1,440 MSG Sports units ($217,440).

(8) Represents the full vesting of the stock options issued in July 2021 in respect of outstanding MSG Networks
time-based and performance-based options granted to Mr. Dolan by MSG Networks as long-term incentive awards in August 2019, but such options have no value because each award had an exercise price greater than the closing market price of a share
of MSG Entertainment's Class A Common Stock on June 30, 2022.

**Our Equity Compensation Plan Information** 

We plan to adopt an Employee Stock Plan (the "Employee Stock Plan") and a Director Stock Plan, which are discussed below.

*Our Employee Stock Plan* 

Prior to the Distribution, we expect to adopt an Employee Stock Plan, subject to the approval of MSG Entertainment as our sole shareholder at such time. A form of the Employee Stock Plan is filed as an exhibit to the registration statement, of which this information statement forms a part, that we have filed with the SEC, and the following description of the Employee Stock Plan is qualified in its entirety by reference to the Employee Stock Plan.

*Overview* 

The purpose of the Employee Stock Plan will be to (i) compensate employees and eligible service providers of the Company and its affiliates who are responsible for the management and growth of the business of the Company and its affiliates, and (ii) advance the interest of the Company by encouraging and enabling the acquisition of a personal proprietary interest in the Company by employees and such service providers upon whose judgment and keen interest the Company and its affiliates are largely dependent for the successful conduct of their operations. It is anticipated that the acquisition of such a proprietary interest in the Company will stimulate the efforts of these employees and such service providers on behalf of the Company and its affiliates, and strengthen their desire to remain with the Company and its affiliates. It is also expected that the opportunity to acquire such a proprietary interest will enable the Company and its affiliates to attract and retain desirable personnel and will better align the interests of participating employees and service providers with those of the Company's stockholders. The Employee Stock Plan will provide for grants of incentive stock options (as defined in Section 422 of the Code), non-qualified stock options, stock appreciation rights, restricted shares, restricted stock units and other equity-based awards (collectively, "Awards"). The Employee Stock Plan is expected to terminate, and no more Awards will be granted, after the ten year anniversary of the Distribution (unless sooner terminated by our Board or our Compensation Committee). The termination of the Employee Stock Plan will not affect previously granted Awards.

*Shares Subject to the Employee Stock Plan; Other Limitations* 

The Employee Stock Plan will be administered by the Company's Compensation Committee. Awards may be granted under the Employee Stock Plan to such employees and other eligible service providers of the Company and its affiliates as the Compensation Committee may determine. An "affiliate" will be defined in the Employee Stock Plan to

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mean any entity controlling, controlled by, or under common control with the Company or any other affiliate and will also include any entity in which the Company owns at least five percent of the outstanding equity interests. It is expected that the total number of shares of the Company's Class A Common Stock that may be issued pursuant to Awards under the Employee Stock Plan may not exceed an aggregate of [●], which may be either treasury shares or authorized and unissued shares. To the extent that (i) an Award is paid, settled or exchanged or expires, lapses, terminates or is cancelled for any reason without the issuance of shares, (ii) any shares under an Award are not issued because of payment or withholding obligations or (iii) restricted shares revert back to the Company prior to the lapse of the restrictions or are applied by the Company for purposes of tax withholding obligations, then it is expected that the Compensation Committee will also be able to grant Awards with respect to such shares or restricted shares. Awards payable only in cash or property other than shares will not reduce the aggregate remaining number of shares with respect to which Awards may be made under the Employee Stock Plan and shares relating to any other Awards that are settled in cash or property other than shares, when settled, will be added back to the aggregate remaining number of shares with respect to which Awards may be made under the Employee Stock Plan. Any shares underlying Awards that the Company becomes obligated to make through the assumption of, or in substitution for, outstanding awards previously granted by an acquired entity will not count against the shares available to be delivered pursuant to Awards under the Employee Stock Plan. No single individual may be issued Awards during any one calendar year for, or that relate to, a number of shares exceeding [●]. In the event that any dividend or other distribution (whether in the form of cash, shares, other securities, or other property), recapitalization, forward or reverse stock split, reorganization, merger, consolidation, spin-off, combination, repurchase, share exchange, liquidation, dissolution or other similar corporate transaction or event affects shares such that the failure to make an adjustment to an Award would not appropriately protect the rights represented by the Award in accordance with the essential intent and principles thereof (each such event, an "Adjustment Event"), then it is expected that the Compensation Committee will, in such manner as it may determine to be equitable in its sole discretion, adjust any or all of the terms of an outstanding Award (including, without limitation, the number of shares covered by such outstanding Award, the type of property to which the Award is subject and the exercise price of such Award).

*Awards* 

It is expected that all employees and other service providers of the Company and its affiliates who are eligible under General Instruction A.1(a) to Form S-8, excluding any member of the Board who is not a current employee of the Company or its subsidiaries, will be eligible to receive Awards under the Employee Stock Plan. Under the Employee Stock Plan, the Company will be able to grant options and stock appreciation rights, which will be exercisable at a price determined by the Compensation Committee on the date of the Award grant, which price will be no less than the fair market value of a share of the Company's Class A Common Stock on the date the option or stock appreciation right is granted. Other than in the case of the death of a participant, such options and stock appreciation rights may be exercised for a term fixed by the Compensation Committee but no longer than ten years from the date of grant. An award agreement may provide that, in the event the participant dies while the option or stock appreciation right is outstanding, the option or stock appreciation right will remain outstanding until the first anniversary of the participant's death, whether or not such first anniversary occurs after such ten-year period. Upon its exercise, a stock appreciation right will be settled (and an option may be settled, in the Compensation Committee's discretion) for an amount equal to the excess of the fair market value of a share of the Company's Class A Common Stock on the date of exercise over the exercise price of the stock appreciation right (or option). The Employee Stock Plan will prohibit (1) repricing options and stock appreciation rights (other than in connection with Adjustment Events), (2) repurchasing options or stock appreciation rights for cash when the exercise price equals or exceeds the fair market value of a share of the Company's Class A Common Stock or (3) option or stock appreciation right automatic reload provisions, in each case without the approval of the Company's stockholders.

It is expected that the Employee Stock Plan will also permit the Company to grant restricted shares and restricted stock units. A restricted share is a share of the Company's Class A Common Stock that is registered in the participant's name, but that is subject to certain transfer and/or forfeiture restrictions for a period of time as specified in the applicable award agreement. The participant of a restricted share will have the rights of a

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stockholder, subject to any restrictions and conditions specified by the Compensation Committee in the participant's award agreement. Notwithstanding the previous sentence, unless the Compensation Committee determines otherwise, all ordinary cash dividends paid upon any restricted share prior to its vesting will be retained by the Company for the account of the relevant participant and upon vesting will be paid to the relevant participant.

A restricted stock unit is an unfunded, unsecured right to receive a share of the Company's Class A Common Stock (or cash or other property) at a future date upon the satisfaction of the conditions specified by the Compensation Committee in the award agreement. Unless otherwise provided by the Compensation Committee, a restricted stock unit will also carry a dividend equivalent right representing an unfunded and unsecured promise to pay to the relevant participant, upon the vesting of the restricted stock unit, an amount equal to the ordinary cash dividends that would have been paid upon any share underlying a restricted stock unit had such shares been issued.

The Compensation Committee is also expected to be able to grant other equity-based or equity-related awards to participants subject to terms and conditions it may specify. These awards may entail the transfer of shares or payment in cash based on the value of shares.

It is expected that under the Employee Stock Plan, the Compensation Committee will have the authority, in its discretion, to add performance criteria as a condition to any participant's ability to exercise a stock option or stock appreciation right, or the vesting or payment of any restricted shares or restricted stock units, granted under the Employee Stock Plan. Additionally, the Employee Stock Plan will specify certain performance criteria that may, in the case of certain executive officers of the Company, be conditions precedent to the vesting of awards granted to such executives under the Employee Stock Plan.

*Amendment; Termination* 

It is expected that the Board or the Compensation Committee may discontinue the Employee Stock Plan at any time and from time to time may amend or revise the terms of the Employee Stock Plan or any award agreement, as permitted by applicable law, except that it may not (a) make any amendment or revision in a manner unfavorable to a participant (other than if immaterial), without the consent of the participant or (b) make any amendment or revision without the approval of the stockholders of the Company if such approval is required by the rules of the stock exchange on which the Company's shares are listed. The consent of the participant will not be required solely pursuant to the previous sentence in respect of any adjustment made in light of an Adjustment Event, except to the extent the terms of an award agreement expressly refer to an Adjustment Event, in which case such terms will not be amended in a manner unfavorable to a participant (other than if immaterial) without such participant's consent.

*U.S. Federal Tax Implications of Certain Awards Under the Plan* 

The following summary generally describes the principal Federal (but not state and local) income tax consequences of certain awards that are expected to be permitted under the Employee Stock Plan. It is general in nature and is not intended to cover all tax consequences that may apply to a particular participant or the Company. The provisions of the Code and the regulations thereunder relating to these matters are complex and their impact in any one case may depend upon the particular circumstances.

*Incentive Stock Options* 

A participant will not be subject to tax upon the grant of an incentive stock option (an "ISO") or upon the exercise of an ISO. However, the excess of the fair market value of the shares on the date of exercise over the exercise price paid will be included in the participant's alternative minimum taxable income. Whether the participant is subject to the alternative minimum tax will depend on his or her particular circumstances. The

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participant's basis in the shares received will be equal to the exercise price paid, and the holding period in such shares will begin on the day following the date of exercise. If a participant disposes of the shares on or after (i) the second anniversary of the date of grant of the ISO and (ii) the first anniversary of the date of exercise of the ISO (the "statutory holding period"), the participant will recognize a capital gain or loss in an amount equal to the difference between the amount realized on such disposition and his or her basis in the shares.

*Nonstatutory Stock Options* 

For the grant of an option that is not intended to be (or does not qualify as) an ISO, a participant will not be subject to tax upon the grant of such an option (a "nonstatutory stock option"). Upon exercise of a nonstatutory stock option, an amount equal to the excess of the fair market value of the shares acquired on the date of exercise over the exercise price paid is taxable to a participant as ordinary income, and such amount is generally deductible by the Company. This amount of income will be subject to income tax withholding and employment taxes. A participant's basis in the shares received will equal the fair market value of the shares on the date of exercise, and a participant's holding period in such shares will begin on the day following the date of exercise.

*Restricted Stock* 

A participant will not be subject to tax upon receipt of an award of shares subject to forfeiture conditions and transfer restrictions (the "restrictions") under the Employee Stock Plan unless the participant makes the election referred to below. Upon lapse of the restrictions, a participant will recognize ordinary income equal to the fair market value of the shares on the date of lapse (less any amount the participant may have paid for the shares), and such income will be subject to income tax withholding and employment taxes. A participant's basis in the shares received will be equal to the fair market value of the shares on the date the restrictions lapse, and a participant's holding period in such shares begins on the day after the restrictions lapse. If any dividends are paid on such shares prior to the lapse of the restrictions they will be includible in a participant's income during the restricted period as additional compensation (and not as dividend income) and will be subject to income tax withholding and employment taxes.

If permitted by the applicable award agreement, a participant may elect, within thirty days after the date of the grant of the restricted stock, to recognize immediately (as ordinary income) the fair market value of the shares awarded (less any amount a participant may have paid for the shares), determined on the date of grant (without regard to the restrictions). Such income will be subject to income tax withholding and employment taxes at such time. This election is made pursuant to Section 83(b) of the Code and the regulations thereunder. If a participant makes this election, the participant's holding period will begin the day after the date of grant, dividends paid on the shares will be subject to the normal rules regarding distributions on stock, and no additional income will be recognized by the participant upon the lapse of the restrictions. However, if the participant forfeits the restricted shares before the restrictions lapse, no deduction or capital loss will be available to the participant (even though the participant previously recognized income with respect to such forfeited shares).

In the taxable year in which a participant recognizes ordinary income on account of shares awarded to the participant, the Company generally will be entitled to a deduction equal to the amount of income recognized by the participant. In the event that the restricted shares are forfeited by the participant after having made the Section 83(b) election referred to above, the Company generally will include in our income the amount of our original deduction.

*Stock Appreciation Rights* 

A participant will not be subject to tax upon the grant of a stock appreciation right. Upon exercise of a stock appreciation right, an amount equal to the cash and/or the fair market value (measured on the date of exercise) of shares receivable by the participant in respect of a stock appreciation right will be taxable to the participant as

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ordinary income, and such amount generally will be deductible by the Company. This amount of income will be subject to income tax withholding and employment taxes. A participant's basis in any shares received will be equal to the fair market value of such shares on the date of exercise, and a participant's holding period in such shares will begin on the day following the date of exercise.

*Restricted Stock Units* 

A participant will not be subject to tax upon the grant of a restricted stock unit. Upon vesting of a restricted stock unit, the fair market value of the shares covered by the award on the vesting date will be subject to employment taxes. Upon distribution of the shares and/or cash underlying a restricted stock unit, a participant will recognize as ordinary income an amount equal to the cash and/or fair market value (measured on the Distribution date) of the shares received, and such amount will generally be deductible by the Company. This amount of income will generally be subject to income tax withholding on the date of distribution. A participant's basis in any shares received will be equal to the fair market value of the shares on the date of distribution, and a participant's holding period in such shares will begin on the date of distribution. If any dividend equivalent amounts are paid to a participant, they will be includible in the participant's income as additional compensation (and not as dividend income) and will be subject to income and employment tax withholding.

*Disposition of Shares* 

Unless stated otherwise above, upon the subsequent disposition of shares acquired under any of the preceding awards, a participant will recognize capital gain or loss based upon the difference between the amount realized on such disposition and the participant's basis in the shares, and such amount will be long-term capital gain or loss if such shares were held for more than 12 months.

*Our Stock Plan for Non-Employee Directors* 

Prior to the Distribution, we expect to adopt the Director Stock Plan, subject to the approval of MSG Entertainment as our sole shareholder at such time. A form of the Director Stock Plan is filed as an exhibit to the registration statement, of which this information statement forms a part, that we have filed with the SEC, and the following description of the Director Stock Plan is qualified in its entirety by reference to the Director Stock Plan.

*Overview* 

We believe that the Company's ability to attract and retain capable persons as non-employee directors will be enhanced if it can provide its non-employee directors with equity-based awards and that the Company will benefit from encouraging a sense of proprietorship of such persons stimulating the active interest of such persons in the development and financial success of the Company. The Director Stock Plan will provide for potential grants of non-qualified stock options, restricted stock units, restricted shares and other equity-based awards (collectively, "Director Awards") to our non-employee directors. The Director Stock Plan is expected to terminate, and no more Director Awards will be granted, after the ten year anniversary of the Distribution (unless sooner terminated by our Board or our Compensation Committee). The termination of the Director Stock Plan will not affect previously granted Director Awards.

*Shares Subject to the Director Stock Plan; Other Limitations* 

The Director Stock Plan will be administered by the Company's Compensation Committee. The total number of shares of the Company's Class A Common Stock that may be issued pursuant to Director Awards under the Director Stock Plan may not exceed an aggregate of [●] shares, which may be either treasury shares or authorized and unissued shares. To the extent that (i) a Director Award is paid, settled or exchanged or expires, lapses, terminates or is cancelled for any reason without the issuance of shares or (ii) any shares under a Director Award are not issued because of payment or withholding obligations, then it is expected that the Compensation

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Committee will also be able to grant Director Awards with respect to such shares. Director Awards payable only in cash or property other than shares will not reduce the aggregate remaining number of shares with respect to which Director Awards may be made under the Director Stock Plan and shares relating to any other Director Awards that are settled in cash or property other than shares, when settled, will be added back to the aggregate remaining number of shares with respect to which Director Awards may be made under the Director Stock Plan. Any shares underlying Director Awards that the Company becomes obligated to make through the assumption of, or in substitution for, outstanding awards previously granted by an acquired entity will not count against the shares available to be delivered pursuant to Director Awards under the Director Stock Plan. In the event that any Adjustment Event affects shares such that the failure to make an adjustment to a Director Award would not appropriately protect the rights represented by the Director Award in accordance with the essential intent and principles thereof, then it is expected that the Compensation Committee will, in such manner as it may determine to be equitable in its sole discretion, be able to adjust any or all of the terms of an outstanding Director Award (including, without limitation, the number of shares covered by such outstanding Director Award, the type of property to which the Director Award is subject and the exercise price of such Director Award).

*Director Awards* 

It is expected that under the Director Stock Plan, the Company will be able to grant stock options to participants. The options will be exercisable at a price determined by the Compensation Committee on the date of the Director Award grant, which price will be no less than the fair market value of a share of the Company's Class A Common Stock on the date the option is granted, and will otherwise be subject to such terms and conditions as specified by the Compensation Committee, provided that, unless determined otherwise by the Compensation Committee, such options will be fully vested and exercisable on the date of grant. Each option granted pursuant to the Director Stock Plan will terminate upon the earlier to occur of (i) the expiration of ten years following the date upon which the option is granted and (ii) a period fixed by the Compensation Committee in the award agreement; however, an award agreement may provide that in the event that a participant dies while an option is exercisable, the option will remain exercisable by the participant's estate or beneficiary only until the first anniversary of the participant's date of death and whether or not such first anniversary occurs prior to or following the expiration of the relevant period referred to above. It is expected that upon its exercise, an option may be settled, in the Compensation Committee's discretion, for a cash amount equal to the excess of the fair market value of a share of the Company's Class A Common Stock on the date of exercise over the exercise price of the option. The Director Stock Plan will prohibit (1) repricing options and stock appreciation rights (other than in connection with Adjustment Events), (2) repurchasing options or stock appreciation rights for cash when the exercise price equals or exceeds the fair market value of a share of the Company's Class A Common Stock or (3) option or stock appreciation right automatic reload provisions, in each case without the approval of the Company's stockholders.

The Company is also expected to be able to grant restricted stock units to participants. A restricted stock unit is an unfunded, unsecured right to receive a share of the Company's Class A Common Stock (or cash or other property) at a future date upon the satisfaction of the conditions specified by the Compensation Committee in the award agreement. Unless otherwise provided by the Compensation Committee, such restricted stock units will be fully vested on the date of grant and will also carry a dividend equivalent right representing an unfunded and unsecured promise to pay to the relevant participant an amount equal to the ordinary cash dividends that would have been paid upon any share underlying a restricted stock unit had such shares been issued. If a restricted stock unit is not fully vested at the date of grant, the dividend equivalent right will not apply until such restricted stock unit is vested.

It is expected that the Compensation Committee will be permitted to grant other equity-based or equity-related awards (including, without limitation, restricted shares, unrestricted shares and share appreciation awards) to non-employee directors subject to terms and conditions it may specify. These awards may entail the transfer of shares or payment in cash based on the value of shares.

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*Amendment; Termination* 

It is expected that the Board or the Compensation Committee may discontinue the Director Stock Plan at any time and from time to time may amend or revise the terms of the Director Stock Plan or any award agreement, as permitted by applicable law, except that it may not (a) make any amendment or revision in a manner unfavorable to a participant (other than if immaterial), without the consent of the participant or (b) make any amendment or revision without the approval of the stockholders of the Company if such approval is required by the rules of the stock exchange on which the Company's shares are listed. Consent of the participant will not be required solely pursuant to the previous sentence in respect of any adjustment made in light of a Director Stock Plan Adjustment Event, except to the extent the terms of an award agreement expressly refer to a Director Stock Plan Adjustment Event, in which case such terms will not be amended in a manner unfavorable to a participant (other than if immaterial) without such participant's consent.

*U.S. Federal Tax Implications of Options and Restricted Stock Units Under the Director Stock Plan* 

The following summary generally describes the principal Federal (but not state and local) income tax consequences of the issuance and exercise of options and restricted stock units that it is expected would be permitted under the Director Stock Plan. It is general in nature and is not intended to cover all tax consequences that may apply to a particular participant or the Company. The provisions of the Code and the regulations thereunder relating to these matters are complex and subject to change and their impact in any one case may depend upon the particular circumstances.

A non-employee director will not realize any income, and the Company will not be entitled to a deduction, at the time that a stock option is granted under the Director Stock Plan. Upon exercising an option, a non-employee director will realize ordinary income (not as capital gain), and the Company will be entitled to a corresponding deduction, in an amount equal to the fair market value on the exercise date of the shares subject to the option over the exercise price of the option. The non-employee director will have a basis in the shares received as a result of the exercise, for purposes of computing capital gain or loss, equal to the fair market value of those shares on the exercise date and the non-employee director's holding period in the shares received will commence on the day after the date of exercise. If an option is settled by the Company in cash, shares or a combination thereof, the non-employee directors will recognize ordinary income at the time of settlement equal to the fair market value of such cash, shares or combination thereof, and the Company will be entitled to a corresponding deduction.

A non-employee director will not realize any income, and the Company will not be entitled to a deduction, at the time that a restricted stock unit is granted under the Director Stock Plan or at the time that a restricted stock unit vests. Upon payment or settlement of a restricted stock unit award in our Class A Common Stock or cash, the non-employee director will recognize ordinary income, and the Company will be entitled to a corresponding deduction, equal to the fair market value of any Class A Common Stock or cash received.

**Treatment of Outstanding Awards** 

MSG Entertainment has previously issued options to purchase its MSG Entertainment Class A Common Stock. In connection with the Distribution, each MSG Entertainment option will become two options: one will be an option to acquire MSG Entertainment Class A Common Stock and one an option to acquire our Class A Common Stock. We expect that options with respect to our Class A Common Stock will be issued under the Employee Stock Plan. The existing exercise price will be allocated between the existing MSG Entertainment options and our new options based upon the weighted average price of each of MSG Entertainment Class A Common Stock and our Class A Common Stock over the ten trading days immediately following the Distribution as reported by Bloomberg, and the underlying share amount will take into account the one-to-one distribution ratio (i.e., one share of our common stock will be issued for every one share of MSG Entertainment Class A Common Stock). The MSG Entertainment options and our new options will not be exercisable during a period beginning on a date prior to the Distribution determined by MSG Entertainment in its sole discretion, and continuing until the exercise prices of the MSG Entertainment options and our new options are determined after the Distribution, or such longer period as

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MSG Entertainment or we determine is necessary with respect to our and MSG Entertainment's respective awards. Other than the split of the MSG Entertainment options and the allocation of the existing exercise price, upon issuance of our new options there will be no additional adjustment to the existing MSG Entertainment options in connection with the Distribution and the terms of each employee's applicable MSG Entertainment award agreement will continue to govern the MSG Entertainment options. The options that we issue in respect of outstanding MSG Entertainment stock options will be affected by a change in control or going private transaction of the Company or MSG Entertainment, as set forth in the terms of the award agreement.

MSG Entertainment has previously issued restricted stock units and performance stock units to its employees, which represent unfunded, unsecured rights to receive shares of MSG Entertainment Class A Common Stock (or cash or other property) at a future date upon the satisfaction of the conditions specified by MSG Entertainment's Compensation Committee in the award agreement. In connection with the Distribution, each holder of an employee restricted stock unit will receive one Company restricted stock unit in respect of every one MSG Entertainment restricted stock unit owned on the record date and continue to be entitled to a share of MSG Entertainment Class A Common Stock (or cash or other property) for each MSG Entertainment restricted stock unit in accordance with the MSG Entertainment award agreement. Additionally, each holder of an employee performance stock unit will receive one Company performance stock unit (at target performance) in respect of every one MSG Entertainment performance stock unit (at target performance) owned on the record date and continue to be entitled to a share of MSG Entertainment Class A Common Stock (or cash or other property) for each MSG Entertainment performance stock unit in accordance with the MSG Entertainment award agreement. The performance conditions applicable to MSG Entertainment performance stock units and Company performance stock units that have a performance period ending in 2023 will be equitably adjusted to reflect the Distribution in order to measure the achievement of the consolidated performance of MSG Entertainment and the Company over the performance period. The performance conditions applicable to MSG Entertainment performance stock units and Company performance stock units that have a performance period ending after 2023 will be equitably adjusted so that the performance conditions relate solely to whichever company employs the holder of the award as of the Distribution.

Our restricted stock units and performance stock units will be issued under our Employee Stock Plan and will be subject to the same conditions and restrictions as the MSG Entertainment award except as described above. Except as described above, there will be no adjustment to the existing MSG Entertainment restricted stock units or MSG Entertainment performance stock units in connection with the Distribution and the terms of each employee's applicable award agreement will continue to govern the MSG Entertainment award. The restricted stock units and performance stock units that we issue in respect of outstanding MSG Entertainment awards will be affected by a change in control or going private transaction of the Company or MSG Entertainment, as set forth in the terms of the award agreement.

MSG Entertainment has previously issued restricted stock units to its non-employee directors which represent unfunded, unsecured rights to receive shares of MSG Entertainment Class A Common Stock (or cash or other property) at a future date. Such restricted stock units were fully vested on the date of grant. In connection with the Distribution, each holder of a director restricted stock unit will receive one share of our Class A Common Stock in respect of every one MSG Entertainment restricted stock unit owned on the record date and continue to be entitled to a share of MSG Entertainment Class A Common Stock (or cash or other property) in accordance with the award agreement. Such shares of Company Class A Common Stock will be issued under our Director Stock Plan.

With respect to outstanding equity awards, the Company and MSG Entertainment will not be regarded as competitive entities of each other for purposes of any non-compete provisions contained in the applicable award agreements. With respect to all outstanding MSG Entertainment awards (and our awards issued in connection with such awards) holders of such awards will continue to vest so long as they remain employed by the Company, MSG Entertainment or affiliates of either entity, provided that an employee who moves between the Company or one of its subsidiaries, on the one hand, and MSG Entertainment or one of its subsidiaries, on the other hand, at a time when the two entities are no longer affiliates will not continue to vest in such awards and such change will constitute a termination of employment for purposes of the award agreement.

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**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS** 

**Introduction** 

Following the Distribution, the Company and MSG Entertainment will each be controlled by the Dolan Family Group. The Dolan Family Group also controls MSG Sports and AMC Networks. For purposes of governing the ongoing relationships between the Company and MSG Entertainment, respectively, after the Distribution, we will enter into certain agreements with those companies prior to the Distribution.

**Relationship Between MSG Entertainment and Us After the Distribution** 

Following the Distribution, we will be a public company and MSG Entertainment will have a continuing approximately 33% common stock ownership interest in us in the form of Class A Common Stock. MSG Entertainment will not own any of our Class B Common Stock following the Distribution. As described under "The Distribution — Results of the Distribution," both MSG Entertainment and Spinco will be under the control of Charles F. Dolan, members of his family and certain related family entities immediately following the Distribution. See "Unaudited Pro Forma Condensed Combined Financial Information," "Combined Balance Sheets as of June 30, 2022 and 2021 and Combined Statements of Operations for the years ended June 30, 2022, 2021 and 2020 — Notes to Combined Financial Statements — Note 19, Related Party Transactions" for information concerning historical intercompany transactions between us and MSG Entertainment. MSG Entertainment is required by applicable tax rules to dispose of all of the retained shares as soon as practicable consistent with the business purposes for the retention, and expects to dispose of such retained shares within one year, subject to market conditions.

For purposes of governing the ongoing relationships between MSG Entertainment and us after the Distribution and to provide for an orderly transition, MSG Entertainment and Spinco will enter into the agreements described in this section prior to the Distribution.

Certain of the agreements summarized in this section will be filed prior to the Distribution as exhibits to the registration statement, of which this information statement forms a part, that we have filed with the SEC, and the following summaries of those agreements are qualified in their entirety by reference to the agreements that will be filed prior to the Distribution.

*Distribution Agreement* 

We will enter into a Distribution Agreement with MSG Entertainment as part of a series of transactions pursuant to which we have acquired or will acquire prior to the Distribution the subsidiaries, business and other assets of MSG Entertainment that constitute our business.

Under the Distribution Agreement, MSG Entertainment will distribute approximately 67% of our common stock to its common stockholders.

Under the Distribution Agreement, MSG Entertainment will provide us with indemnities with respect to liabilities, damages, costs and expenses arising out of any of: (i) MSG Entertainment's businesses (other than business of ours); (ii) certain identified claims or proceedings; (iii) any breach by MSG Entertainment of its obligations under the Distribution Agreement; (iv) any untrue statement or omission in the registration statement, of which this information statement forms a part, or in this information statement relating to MSG Entertainment and its subsidiaries; and (v) indemnification obligations we may have to the NBA or NHL that result from acts or omissions of MSG Entertainment. We will provide MSG Entertainment with indemnities with respect to liabilities, damages, costs and expenses arising out of any of (i) its businesses; (ii) any breach by us of its obligations under the Distribution Agreement; (iii) any untrue statement or omission in the registration statement, of which this information statement forms a part, or in this information statement other than any such statement or omission relating to MSG Entertainment and its subsidiaries; and (iv) indemnification obligations MSG Entertainment may have to the NBA or NHL that result from acts or omissions of the Company.

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In the Distribution Agreement, we will release MSG Entertainment from any claims we might have arising out of:

• the management of the business and affairs of MSG Entertainment's Entertainment business segment (excluding
MSG Sphere) on or prior to the Distribution;

• the terms of the Distribution, our amended and restated certificate of incorporation, our by-laws and the other agreements entered into in connection with the Distribution; and

• any decisions that have been made, or actions taken, relating to MSG Entertainment's Entertainment business
segment (excluding MSG Sphere) or the Distribution.

Additionally, in the Distribution Agreement, MSG Entertainment will release us from any claims MSG Entertainment might have arising out of:

• the management of the businesses and affairs of MSG Entertainment's MSG Networks and Tao Group Hospitality
business segments or related to the MSG Sphere business on or prior to the Distribution;

• the terms of the Distribution and the other agreements entered into in connection with the Distribution; and

• any decisions that have been made, or actions taken, relating to the Distribution.

The Distribution Agreement will also provide that MSG Entertainment has the sole and absolute discretion to determine whether to proceed with the Distribution, including the form, structure and terms of any transactions to effect the Distribution and the timing of and satisfaction of conditions to the consummation of the Distribution.

The Distribution Agreement will also provide for access to records and information, cooperation in defending litigation, as well as methods of resolution for certain disputes.

*Transition Services Agreement* 

We will enter into a Transition Services Agreement with MSG Entertainment under which, in exchange for the fees specified in such agreement, the Company will agree to provide certain corporate and other services to MSG Entertainment, including with respect to such areas as information technology, accounts payable, payroll, tax, certain legal functions, human resources, insurance and risk management, government affairs, investor relations, corporate communications, benefit plan administration and reporting, and internal audit functions as well as certain marketing functions. MSG Entertainment similarly will agree to provide certain transition services to the Company. The Company and MSG Entertainment, as parties receiving services under the agreement, will agree to indemnify the party providing services for losses incurred by such party that arise out of or are otherwise in connection with the provision by such party of services under the agreement, except to the extent that such losses result from the providing party's gross negligence, willful misconduct or breach of its obligations under the agreement. Similarly, each party providing services under the agreement will agree to indemnify the party receiving services for losses incurred by such party that arise out of or are otherwise in connection with the indemnifying party's provision of services under the agreement if such losses result from the providing party's gross negligence, willful misconduct or breach of its obligations under the agreement.

*Tax Disaffiliation Agreement* 

We will enter into a Tax Disaffiliation Agreement with MSG Entertainment that will govern MSG Entertainment's and our respective rights, responsibilities and obligations with respect to taxes and tax benefits, the filing of tax returns, the control of audits and other tax matters. References in this summary description of the Tax Disaffiliation Agreement to the terms "tax" or "taxes" mean taxes as well as any interest, penalties, additions to tax or additional amounts in respect of such taxes.

We and our eligible subsidiaries currently join with MSG Entertainment in the filing of certain consolidated, combined, and unitary returns for state, local, and other applicable tax purposes. However, for periods (or

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portions thereof) beginning after the Distribution, we generally will not join with MSG Entertainment or any of its subsidiaries (as determined after the Distribution) in the filing of any federal, state, local or other applicable consolidated, combined or unitary tax returns.

Under the Tax Disaffiliation Agreement, with certain exceptions, MSG Entertainment will be generally responsible for all of our U.S. federal, state, local and other applicable income taxes for any taxable period or portion of such period ending on or before the Distribution date. We will be generally responsible for all taxes that are attributable to us or one of our subsidiaries after the Distribution date.

For any tax year, we will be generally responsible for filing all separate company tax returns that relate to us or one of our subsidiaries and that do not also include MSG Entertainment or any of its subsidiaries. MSG Entertainment will be generally responsible for filing all separate company tax returns that relate to MSG Entertainment or its subsidiaries (other than tax returns that will be filed by us), and for filing consolidated, combined or unitary returns that include (i) one or more of MSG Entertainment and its subsidiaries and (ii) one or more of us and our subsidiaries. Where possible, we will waive the right to carry back any losses, credits, or similar items to periods ending prior to or on the Distribution date; however, if we cannot waive the right, we will be entitled to receive the resulting refund or credit, net of any taxes incurred by MSG Entertainment with respect to the refund or credit.

Generally, we will have the authority to conduct all tax proceedings, including tax audits, relating to taxes or any adjustment to taxes for which we are responsible for filing a return under the Tax Disaffiliation Agreement, and MSG Entertainment will have the authority to conduct all tax proceedings, including tax audits, relating to taxes or any adjustment to taxes for which MSG Entertainment will be responsible for filing a return under the Tax Disaffiliation Agreement. However, if one party acknowledges a liability to indemnify the other party for a tax to which such proceeding relates, and provides evidence to the other party of its ability to make such payment, the first-mentioned party will have the authority to conduct such proceeding. The Tax Disaffiliation Agreement will further provide for cooperation between MSG Entertainment and the Company with respect to tax matters, the exchange of information and the retention of records that may affect the tax liabilities of the parties to the agreement.

Finally, the Tax Disaffiliation Agreement will require that neither we nor any of our subsidiaries will take, or fail to take, any action where such action, or failure to act, would be inconsistent with or preclude the Distribution from qualifying as a tax-free transaction to MSG Entertainment and to its stockholders under Section 355 of the Code, or would otherwise cause holders of MSG Entertainment stock receiving our stock in the Distribution to be taxed as a result of the Distribution and certain transactions undertaken in connection with the Distribution. Additionally, for the two-year period following the Distribution, we will be restricted from engaging in certain activities that may jeopardize the tax-free treatment of the Distribution to MSG Entertainment and its stockholders, unless we receive MSG Entertainment's consent or otherwise obtain a ruling from the IRS or a legal opinion, in either case reasonably satisfactory to MSG Entertainment, that the activity will not alter the tax-free status of the Distribution to MSG Entertainment and its stockholders. Such restricted activities include:

• entering into any transaction pursuant to which all or a significant portion of our shares or assets would be
acquired, whether by merger or otherwise, unless certain tests are met;

• issuing equity securities, if any such issuances would, together with certain other transactions, constitute 50%
or more of the voting power or value of our capital stock;

• certain repurchases of our common shares;

• ceasing to actively conduct our business;

• amendments to our organizational documents (i) affecting the relative voting rights of our stock or
(ii) converting one class of our stock to another;

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• liquidating or partially liquidating; and

• taking any other action that prevents the Distribution and certain related transactions from being tax-free.

Moreover, we will be required to indemnify MSG Entertainment and its subsidiaries, directors and officers for any taxes, resulting from action or failure to act, if such action or failure to act precludes the Distribution from qualifying as a tax-free transaction (including taxes imposed as a result of a violation of the restrictions set forth above).

*Employee Matters Agreement* 

We will enter into an employee matters agreement (the "Employee Matters Agreement") with MSG Entertainment that allocates assets, liabilities and responsibilities with respect to certain employee compensation and benefit plans and programs and certain other related matters upon completion of the Distribution. In general, MSG Entertainment employees currently participate in various of our retirement, health and welfare, and other employee benefit plans. After the Distribution, it is anticipated that MSG Entertainment employees will generally participate in similar plans and arrangements established and maintained by MSG Entertainment; however, MSG Entertainment may continue to be a participating company in certain of our employee benefit plans during a transition period. Effective as of the Distribution date, we and MSG Entertainment generally will each hold responsibility for our respective employees and compensation plans.

For a description of the impact of the Distribution on holders of MSG Entertainment options, restricted stock units and performance stock units, see "Executive Compensation — Treatment of Outstanding Awards."

*Stockholder and Registration Rights Agreement* 

See "Shares Eligible for Future Sale" for a description of the Stockholder and Registration Rights Agreement to be entered into between MSG Entertainment and the Company.

*Two Pennsylvania Plaza Sublease* 

Following the Distribution, the Company will sublease approximately 20,000 square feet of office space at Two Pennsylvania Plaza in New York City to MSG Entertainment.

*Aircraft Arrangements* 

We will enter into various arrangements with MSG Entertainment, pursuant to which MSG Entertainment will have the right to lease on a "time-sharing" basis certain aircraft to which we have access. MSG Entertainment will be required to pay us specified expenses for each flight they elect to utilize, but not exceeding the maximum amount payable under Federal Aviation Administration ("FAA") rules. In calculating the amounts payable under the agreement, the parties will allocate in good faith the treatment of any flight that is for the benefit of both companies. Additionally, the parties will agree on an allocation of the costs of certain helicopter use by any shared executive officers.

*Other Arrangements and Agreements with MSG Entertainment* 

The Company has also entered into a number of commercial and other arrangements and agreements with MSG Entertainment and its subsidiaries. These include arrangements for the provision of services, allocations with respect to sponsorship agreements and other matters, aircraft sharing, and certain trademark licensing arrangements.

**Other Arrangements and Agreements with MSG Sports and/or AMC Networks** 

The Company expects to enter into a number of commercial and other arrangements and agreements with MSG Sports and/or AMC Networks and their respective subsidiaries. The Company will agree to share certain

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executive support costs, including office space, executive assistants, security and transportation costs, for the Company's Executive Chairman and Chief Executive Officer with MSG Entertainment and MSG Sports and for the Company's Vice Chairman with MSG Entertainment, MSG Sports and AMC Networks. Additionally, the Company will agree on an allocation of the costs of certain personal aircraft use with MSG Entertainment and MSG Sports (with respect to Mr. Dolan only) and helicopter use with MSG Entertainment, MSG Sports and AMC Networks by their shared executives. Other arrangements may include the use of equipment, lease and use of offices and other premises, provision of transport services and vendor services, access to technology and lease of suites and sponsorships.

*Arena License Agreements* 

On April 15, 2020, a subsidiary of MSG Entertainment entered into Arena License Agreements with subsidiaries of MSG Sports that require the Knicks and Rangers (the "teams") to play their home games at The Garden. These agreements will be assigned to the Company in connection with the Distribution. Under the Arena License Agreements, which each have a term of 35 years, the Knicks and the Rangers pay an annual license fee in connection with their respective use of The Garden. For each, the Arena License Agreement provides that the license fee for the first full contract year ended June 30, 2021 was to be approximately $22.5 million for the Knicks and approximately $16.7 million for the Rangers, and then for each subsequent year, the license fees will be 103% of the license fees for the immediately preceding contract year. The teams are not required to pay the license fee during a period in which The Garden is unavailable for use due to a force majeure event (including when events at The Garden were suspended by government mandate as a result of the COVID-19 pandemic). If, due to a force majeure event, capacity at The Garden is limited to 1,000 or fewer attendees, the teams may schedule and play home games at The Garden with applicable rent payable to the Company under the Arena License Agreements reduced by 80%. If, due to a force majeure event, capacity at The Garden is limited to less than full capacity but over 1,000 attendees, the parties will agree on an appropriate reduction to the rent payments. For the year ended June 30, 2022, MSG Entertainment recognized total license fee revenue under the Arena License Agreements of approximately $68.1 million from MSG Sports.

The Arena License Agreements set forth the terms of the teams' use of The Garden, including arrangements for the provision of amenities, game day and other services. While the Company will provide game day services for the teams, most of the associated costs will be borne by the teams. Pursuant to the Arena License Agreements, the Company, at its sole cost and expense, is responsible for the maintenance, equipment and other functions needed to operate, repair and maintain The Garden. The Company does not own or control the teams' broadcast and telecast rights and therefore is not entitled to revenues in connection with their broadcast rights.

Pursuant to the Arena License Agreements, the Company operates and manages food and beverage services during all team events, for which the Company shares 50% of net profits with the applicable team. For the year ended June 30, 2022, MSG Entertainment's revenue sharing expense for food and beverage services was approximately $10.8 million for MSG Sports.

Pursuant to the Arena License Agreements, the Company also has the right and obligation to operate and manage team merchandise sales at The Garden. The Company retains a 30% portion of revenues from team merchandise sold in The Garden. The Company maintains the exclusive right to control the operation and sale of non-team merchandise. For the year ended June 30, 2022, MSG Entertainment recorded revenue of approximately $4.4 million from team merchandise sales at The Garden.

Pursuant to the Arena License Agreements, the Company has the exclusive right to license and manage suites and club memberships at The Garden, including for use during team games, subject to certain exceptions, and shares a portion of the revenues from such licenses and club memberships with MSG Sports. MSG Sports is entitled to 67.5% of revenues (net of any contracted catering credits), for suites or club memberships sold for all or substantially all events at The Garden, including team home games. MSG Sports receives all revenues from the sale of suites licensed for team-only packages or individual team games, subject to a 20-25% commission to

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the Company. For any customizable suite package, revenues are divided between the Company and MSG Sports on a proportional basis, with MSG Sports receiving all revenues attributable to the team events included in the package, less a 20-25% commission to the Company. For the year ended June 30, 2022, MSG Entertainment recorded approximately $74.8 million of revenue sharing expense from licensing suite and club memberships.

Pursuant to the Arena License Agreements, the Company retains 52.5% of revenue from the sale of certain arena shared sponsorship assets, such as fixed signage or entitlements at The Garden. The Company is not entitled to any revenue from certain team sponsorship assets, such as courtside or rinkside advertising and other team or event-specific sponsorship assets. The Company is also entitled to 67.5% of the revenue from the sale of any arena naming rights. For the year ended June 30, 2022, MSG Entertainment recorded approximately $6.5 million of revenue sharing expense from arena shared sponsorship assets.

Pursuant to the Arena License Agreements, the Company does not have the right to sell or retain revenues from ticket sales or resales to team events. The Arena License Agreements set forth MSG Entertainment's responsibilities with respect to box office services, ticket printing and the teams' respective responsibilities to comply with MSG Entertainment's ticket agent agreements.

The Arena License Agreements provide that the teams are responsible for 100% of any real property or similar taxes applicable to The Garden. If the tax exemption is repealed or the teams are otherwise subject to property tax through no fault of the teams, the revenue opportunity that the Company may generate from team events will be reduced on a percentage basis as set forth in the Arena License Agreements.

The Arena License Agreements provide for the Company to prepare an annual budget, in consultation with the teams, subject to certain team consent rights.

NBA consent is required to amend the Knicks' Arena License Agreement.

*Sponsorship Sales and Service Representation Agreements* 

On April 15, 2020, MSG Entertainment entered into sponsorship sales and service representation agreements with the teams, which have terms of more than 10 years (subject to an early termination right exercisable by May 31, 2025 and effective June 30, 2025). Under these agreements, MSG Entertainment is the exclusive sales and service representative for all sponsorship benefits available for sale in connection with the teams, as well as the Knicks' development team, the Westchester Knicks, and Knicks Gaming, the official NBA 2K esports franchise of the Knicks, subject to certain exceptions (e.g., regarding television and radio rights licensed to MSG Networks pursuant to separate media rights agreements). MSG Entertainment receives a commission from MSG Sports, subject to certain exceptions set forth in the agreements. Commissions are generally set at 12.5% of gross revenue, and may be increased to 17.5% of gross revenue for sales above the annual target revenue for the year. Commissions may also be reduced to account for fulfilment costs associated with a particular sponsorship asset. For the year ended June 30, 2022, MSG Entertainment recorded commission revenue of approximately $9.2 million from MSG Sports.

MSG Entertainment also receives annual sales operation fixed payments from MSG Sports associated with providing sponsorship sales services. For each subsequent year, the payment will be 103% of the payment for the immediately preceding contract year. For the year ended June 30, 2022, MSG Entertainment recorded revenue of approximately $8.4 million from MSG Sports.

These agreements are subject to certain termination rights, including the right of each of MSG Entertainment and MSG Sports to terminate if MSG Entertainment and MSG Sports are no longer affiliates, and MSG Sports' right to terminate if certain sales thresholds are not met (unless MSG Entertainment pays MSG Sports the shortfall). NBA consent is required to amend the Knicks' sponsorship sales and service representation agreement. Following the Distribution, we expect these agreements to be assigned from MSG Entertainment to the Company, although some adjustments may be needed as a result of the new organizational structure of the companies.

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*Team Sponsorship Allocation Agreement* 

MSG Entertainment and MSG Sports each routinely enter into sponsorship agreements with third-parties that include the assets of both companies with either MSG Entertainment or MSG Sports serving as the contracting party with the third-party sponsor. On April 15, 2020, MSG Entertainment entered into a team sponsorship allocation agreement with MSG Sports pursuant to which MSG Entertainment and MSG Sports agreed to distribute payments received under the third-party sponsorship agreements to each other generally in accordance with the relative value of the assets provided by each company under the respective third-party agreement. MSG Entertainment and MSG Sports have also agreed to use commercially reasonable efforts to continue to receive the payments by the third-party sponsors, and have agreed that neither party will take any action that would cause the other one to be in breach under the third-party agreements (to the extent they have knowledge or reason to have knowledge of such agreement), as well as to consult with each other in the event of a breach by a third-party sponsor. In connection with the Distribution, the team sponsorship allocation agreement will be assigned from MSG Entertainment to the Company.

*Group Ticket Sales and Service Representation Agreement* 

On April 15, 2020, MSG Entertainment entered into a group ticket sales and service representation agreement with MSG Sports, with an initial term lasting until June 30, 2024 and automatically renewing annually thereafter, pursuant to which MSG Sports is MSG Entertainment's sales and service representative to sell group tickets and ticket packages. MSG Entertainment pays a 7.5% commission on gross revenue derived from group ticket sales placed on behalf of MSG Entertainment by MSG Sports and reimburses MSG Sports for a share of certain of its costs, which is determined by mutual good faith agreement of the parties and revisited each month to cover costs such as sales and service staff and overhead allocated to commission sales. For the year ended June 30, 2022, MSG Entertainment recorded expenses, within operating expenses, of approximately $3.1 million related to the group ticket sales and service representation agreement. Following the Distribution, this agreement will be assigned from MSG Entertainment to the Company.

*Two Pennsylvania Plaza Sublease* 

Following the Distribution, the Company will sublease approximately 47,000 square feet of office space at Two Pennsylvania Plaza in New York City to MSG Sports.

**Dolan Family Arrangements** 

*Standstill Agreement* 

Prior to the Distribution, the members of the Dolan Family Group will enter into an agreement (the "Standstill Agreement") with the Company in which they will agree that during the 12-month period beginning on the Distribution date, the Dolan Family Group must obtain the prior approval of a majority of the Company's Independent Directors prior to acquiring common stock of the Company through a tender offer that results in members of the Dolan Family Group owning more than 50% of the total number of outstanding shares of common stock of the Company. For purposes of this agreement, the term "Independent Directors" means the directors of the Company who have been determined by our Board of Directors to be independent directors for purposes of NYSE corporate governance standards. The Standstill Agreement has been filed as an exhibit to the registration statement of which this information statement forms a part, that we have filed with the SEC, and the foregoing discussion of that agreement is qualified in its entirety by reference to that exhibit.

*Aircraft and Office Space Arrangements* 

A subsidiary of the Company is party to time sharing agreements, dry lease agreements and aircraft support services agreements with entities controlled by members of the Dolan Family with respect to various aircraft owned by either the Company or such Dolan Family members. Amounts paid or received by MSG Entertainment pursuant to these arrangements during the fiscal year ended June 30, 2022 would have been paid or received by the Company if the Distribution had already occurred.

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A subsidiary of the Company is a party to agreements with Charles F. Dolan, the father of James L. Dolan, pursuant to which Mr. Charles F. Dolan has the right to lease on a "time-sharing" basis certain Company aircraft. Mr. Dolan is required to pay us specified expenses for each flight he elects to utilize, but not exceeding the maximum amount payable under FAA rules. Pursuant to this arrangement, Mr. Dolan paid MSG Entertainment $182,210 for use of MSG Entertainment's aircraft during the fiscal year ended June 30, 2022. In addition, a subsidiary of the Company is party to an agreement with Sterling 2K, LLC ("S2K"), a company controlled by Deborah Dolan-Sweeney, the daughter of Charles F. Dolan and the sister of James L. Dolan, pursuant to which the Company has the right to lease on a non-exclusive basis S2K's Gulfstream Aerospace GV-SP (G550) aircraft (the "DFO G550"). We are required to pay S2K rent at an hourly rate and specified expenses (which mirror the types of expenses we charge S2K for use of our aircraft) for each flight we elect to utilize. The agreement includes a "true-up" mechanism such that, to the extent the Company's annual usage of the DFO G550 exceeds Mr. Charles F. Dolan's annual usage of the Company's aircraft, the Company will pay an additional hourly rate with respect to excess hours intended to cover additional costs. Pursuant to this arrangement, MSG Entertainment paid S2K $418,635 for use of the DFO G550 during the fiscal year ended June 30, 2022, inclusive of accrued true-up payments required under the agreement. In addition, the agreement provides for equitable adjustment in the event that discrepancies in hours of usage or other factors cause the arrangement to be economically unfair to either party.

A subsidiary of the Company and Brighid Air, LLC ("Brighid"), a company controlled by Patrick F. Dolan, are parties to agreements, pursuant to which the Company has a right to lease on a non-exclusive basis (the "dry-lease") and on a "time-sharing basis" (the "time-share") Brighid's Bombardier BD100-1A10 Challenger 350 aircraft (the "Challenger"). The Company is required to pay Brighid specified expenses of each flight it elects to utilize, but not exceeding the maximum amount payable under FAA rules. MSG Entertainment paid Brighid $254,110 under the dry-lease agreement for use of the Challenger during the fiscal year ended June 30, 2022. No payments were made under the time share because the Company did not use the Challenger under this agreement during the fiscal year ended June 30, 2022. In connection with the agreement for the Company's use of the Challenger, a subsidiary of the Company and Dolan Family Office, LLC ("DFO"), an entity controlled by Charles F. Dolan, are parties to a Flight Crew Services Agreement, pursuant to which the Company may utilize pilots employed by DFO for purposes of flying the Challenger when the Company is leasing the Challenger under its agreement with Brighid. The Company is required to pay DFO an hourly rate for the use of such pilots, as well as reimburse certain expenses of the pilots. Pursuant to this arrangement, MSG Entertainment paid DFO $38,975 for use of DFO pilots during the fiscal year ended June 30, 2022.

Until December 21, 2021, a subsidiary of MSG Entertainment was a party to an agreement with Quart 2C, LLC ("Q2C"), a company controlled by James. L. Dolan, the Executive Chairman and Chief Executive Officer, as well as a director of the Company, and Kristin A. Dolan, his spouse, pursuant to which Q2C had the right to lease on a "time-sharing" basis MSG Entertainment's Gulfstream Aerospace G550 aircraft (the "G550"). Q2C was required to pay MSG Entertainment specified expenses for each flight it elected to utilize, but not exceeding the maximum amount payable under FAA rules. Q2C did not use MSG Entertainment's aircraft during the fiscal year ended June 30, 2022 and as a result, MSG Entertainment did not receive any payments from them. In addition, until December 21, 2021, a subsidiary of MSG Entertainment and Q2C were parties to an agreement, pursuant to which MSG Entertainment had the right to lease on a non-exclusive basis Q2C's Gulfstream Aerospace G450 aircraft (the "G450"). MSG Entertainment was required to pay Q2C rent at an hourly rate and specified expenses (which mirror the types of expenses MSG Entertainment charged Q2C for use of the G550) for each flight MSG Entertainment elected to utilize. The agreement included a "true-up" mechanism such that, to the extent MSG Entertainment's annual usage of the G450 exceeded Q2C's annual usage of the G550, MSG Entertainment paid an additional hourly rate with respect to excess hours intended to cover additional costs. The agreement also provided for equitable adjustments in the event that discrepancies in hours of usage or other factors caused the arrangement to be economically unfair to either party. Pursuant to this arrangement, MSG Entertainment accrued expenses of $2,011,095 for use of the G450 during the fiscal year ended June 30, 2022, inclusive of any true-up payments and adjustments under the agreement due to significant use of the G450 by MSG Entertainment. These agreements were no longer effective as of December 21, 2021.

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A subsidiary of the Company is party to various Aircraft Support Services Agreements (as such agreements may be amended from time to time, the "Aircraft Services Agreements") pursuant to which the Company provides aircraft support services to (i) Charles F. Dolan and certain of his other children (specifically, Thomas C. Dolan, a director of the Company, Deborah Dolan-Sweeney, Patrick F. Dolan, Marianne Dolan Weber, a director of the Company, and Kathleen Dolan) and (ii) an entity controlled by Patrick Dolan, the son of Charles F. Dolan and brother of James L. Dolan. Pursuant to the Services Agreements, the Company provides certain aircraft support services in exchange for a monthly agency fee. These services include providing pilots, crew and maintenance personnel, aircraft maintenance, FAA compliance, flight scheduling and dispatch services, negotiation/management of third-party contracts and other services necessary and appropriate for the support of aircraft. Pursuant to the Aircraft Services Agreements, each of the parties noted above paid MSG Entertainment (i) $193,705 and (ii) $168,730, respectively, during the fiscal year ended June 30, 2022. The Company provided similar services to an entity controlled by James L. Dolan pursuant to an Aircraft Support Services Agreement until December 21, 2021, upon which date the agreement ceased to be effective. Pursuant to such agreement, the entity controlled by James L. Dolan paid MSG Entertainment $98,430 during the fiscal year ended June 30, 2022.

*605, LLC* 

James L. Dolan, a director and the Executive Chairman and Chief Executive Officer of the Company, and his wife Kristin Dolan own 50% of 605, LLC ("605"), an audience measurement and data analytics company in the media and entertainment industries. Kristin Dolan is also the founder and Chief Executive Officer of 605. MSG Entertainment paid 605 $53,349 for data analytics services during the fiscal year ended June 30, 2022. In addition, MSG Entertainment's Audit Committee approved the entry into one or more agreements with 605 to provide certain data analytics services to the Company for an aggregate amount of up to $1 million. In August 2022 a subsidiary of the Company entered into a three-year agreement with 605, valued at approximately $750,000, covering several customer analysis projects per year in connection with events held at our venues. The Company expects to engage 605 to provide certain data analytics services in the future.

*Registration Rights* 

See "Shares Eligible for Future Sale — Registration Rights Agreements" for a description of registration rights agreements that will be entered into among Dolan family interests and the Company and MSG Entertainment and the Company.

**Certain Relationships and Potential Conflicts of Interest** 

Following the Distribution, there will be an overlap between an officer of the Company, MSG Sports and MSG Entertainment. James L. Dolan will serve as the Executive Chairman and Chief Executive Officer of both the Company and MSG Entertainment and as the Executive Chairman of MSG Sports. James L. Dolan also currently serves as Interim Executive Chairman of AMC Networks. In addition, Gregg G. Seibert will serve as a Vice Chairman of the Company, MSG Sports, MSG Entertainment and AMC Networks and Charles F. Dolan will serve as Chairman Emeritus of AMC Networks concurrently with his service on our Board. Furthermore, immediately following the Distribution, nine of the members of the Board of Directors of the Company will also serve as directors of MSG Entertainment, nine will serve as directors of MSG Sports and five will serve as directors of AMC Networks, including our Executive Chairman and Chief Executive Officer, who is expected to serve as Non-Executive Chairman of AMC Networks when he completes his service as Interim Executive Chairman of AMC Networks. There will be no overlap of Class A Directors as between MSG Entertainment and the Company.

The overlapping directors and officers may have actual or apparent conflicts of interest with respect to matters involving or affecting each company. For example, there will be the potential for a conflict of interest when we or the Other Entities look at certain acquisitions and other corporate opportunities that may be suitable

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for more than one of the companies. Also, conflicts may arise if there are issues or disputes under the commercial arrangements that will exist between an Other Entity on the one hand and us on the other hand. In addition, after the Distribution, certain of our directors and officers will continue to own stock and/or stock options or other equity awards of an Other Entity. These ownership interests could create actual, apparent or potential conflicts of interest when these individuals are faced with decisions that could have different implications for our Company and an Other Entity. See "— Related Party Transaction Approval Policy" for a discussion of certain procedures we will institute to help ameliorate such potential conflicts that may arise.

The Company's amended and restated certificate of incorporation will acknowledge that the Overlap Persons may also be serving as directors, officers, employees or agents of an Other Entity, and that the Company may engage in material business transactions with such Other Entities. The Company will renounce its rights to certain business opportunities and the Company's amended and restated certificate of incorporation will provide that no Overlap Person will be liable to the Company or its stockholders for breach of any fiduciary duty that would otherwise occur by reason of the fact that any such individual directs a corporate opportunity (other than certain limited types of opportunities set forth in our amended and restated certificate of incorporation) to one or more of the Other Entities instead of the Company, or does not refer or communicate information regarding such corporate opportunities to the Company. These provisions in our amended and restated certificate of incorporation will also expressly validate certain contracts, agreements, arrangements and transactions (and amendments, modifications or terminations thereof) between the Company and the Other Entities and, to the fullest extent permitted by law, provide that the actions of the Overlap Persons in connection therewith are not breaches of fiduciary duties owed to the Company, any of its subsidiaries or their respective stockholders. See "Description of Capital Stock — Certain Corporate Opportunities and Conflicts."

**Related Party Transaction Approval Policy** 

We will adopt a written policy whereby an Independent Committee of our Board of Directors will review and approve or take such other action as it may deem appropriate with respect to transactions involving the Company and its subsidiaries, on the one hand, and in which any director, executive officer, greater than 5% stockholder of the Company or any other "related person" (as defined in Item 404 of Regulation S-K adopted by the SEC) has or will have a direct or indirect material interest. This approval requirement covers any transaction that meets the related party disclosure requirements of the SEC as set forth in Item 404, which currently apply to transactions (or any series of similar transactions) in which the amount involved exceeds the dollar threshold set forth in Item 404 (currently $120,000). To simplify the administration of the approval process under this policy, an Independent Committee may, where appropriate, establish guidelines for certain of those transactions. The policy does not cover decisions on compensation or benefits or the hiring or retention of any person. The hiring or retention of executive officers is determined by our full Board of Directors. Compensation of executive officers is subject to the approval of our Compensation Committee. This policy also does not cover any pro rata distributions to all Company stockholders, including a pro rata distribution of our Class A Common Stock to holders of our Class A Common Stock and our Class B Common Stock to holders of our Class B Common Stock. No director on an Independent Committee will participate in the consideration of a related party transaction with that director or any related person of that director. Following the Distribution, our Board of Directors will also adopt a special approval policy for transactions with the Other Entities whether or not such transactions qualify as "related party" transactions described above. Under this policy, an Independent Committee will oversee approval of all transactions and arrangements between the Company and its subsidiaries, on the one hand, and one or more of the Other Entities, on the other hand, in which the amount exceeds a $1,000,000 threshold. In addition, an Independent Committee will receive a quarterly update from the Company's Internal Audit Department of all related party transactions, including transactions and arrangements between the Company and its subsidiaries on the one hand, and each of the Other Entities, on the other hand, regardless of value. To simplify the administration of the approval process under this policy, an Independent Committee may, where appropriate, establish guidelines for certain of these transactions. The approval requirement will not apply to the implementation and administration of these intercompany arrangements under

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the related party transaction approval policy but will cover any amendments, modifications, terminations or extensions involving amounts in excess of $1,000,000, as well as the handling and resolution of any disputes involving amounts in excess of $1,000,000. Our executive officers and directors who are also senior executives or directors of the Other Entities may participate in the negotiation, execution, implementation, amendment, modification, or termination of these intercompany arrangements, as well as in any resolution of disputes thereunder, on behalf of any or all of the Company and the Other Entities, in each case under the direction or ultimate approval of an Independent Committee or the comparable committee of the board of directors of the Company and/or Other Entities, as applicable.

Our related party transaction approval policy cannot be amended or terminated without the prior approval of a majority of the Company's independent directors and by a majority of the directors elected by our Class B Common Stockholders. For purposes of this policy, "independent directors" means those directors who have been determined by our Board to be independent directors for purposes of NYSE corporate governance standards.

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**SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS** 

**AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS** 

**Beneficial Ownership of Stock** 

This table shows the number of shares of our Class A Common Stock and Class B Common Stock, and the percentage of shares of our Class A Common Stock and our Class B Common Stock, that would be owned of record and beneficially at the time of the Distribution by each director and executive officer of the Company (calculated as of February 10, 2023, the "Reference Date"). The table also shows the name, address and the number of shares of our Class A Common Stock and Class B Common Stock and percentage of shares of our Class A Common Stock and our Class B Common Stock that would be owned by persons beneficially owning more than five percent (5%) of any class at the time of Distribution. All information in the table and related footnotes is based solely upon the Company's review of SEC filings as of the Reference Date (and, in the case of members of the Dolan family and trusts for their benefit, information provided to the Company as of the Reference Date) as to the ownership of MSG Entertainment common stock and is presented as if the Distribution had occurred on the Reference Date. The ownership percentages in this table are based on the following total share amounts expected to be outstanding at the time of the Distribution (calculated as of the Reference Date and based on the distribution ratio of one share of our Class A Common Stock and Class B Common Stock for each share of MSG Entertainment Class A Common Stock and MSG Entertainment Class B Common Stock, respectively), and include MSG Entertainment's retained interest and the issuance of shares of our Class A Common Stock to MSG Entertainment non-employee directors who held MSG Entertainment non-employee director restricted stock units as of the Reference Date: 44,895,263 Class A Shares and 6,866,754 Class B Shares, for a total of 51,762,017 shares.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Address** | **Title of Stock Class<sup>(1)</sup>** | **Beneficial<br>Ownership** | **Percent<br>of Class** | **Combined<br>Voting Power of<br>All Classes of<br>Stock Beneficially<br>Owned<sup>(1)(2)</sup>** |
| Madison Square Garden Entertainment Corp.<br> Two Pennsylvania Plaza<br> New York, NY 10121 | Class A Common Stock<br> Class B Common Stock | 17021491<br> —  | 37.9<br> —  | 32.9% |
| Dolan Family Group (3)<br> 340 Crossways Park Drive<br> Woodbury, NY 11797 | Class A Common Stock<br> Class B Common Stock | 1623023<br> 6866754 | 3.6%<br> 100% | 61.6% |
| Charles F. Dolan (3)(4)(5)(7)(15)(17)(23) – (27)<br> 340 Crossways Park Drive<br> Woodbury, NY 11797 | Class A Common Stock<br> Class B Common Stock | 298958<br> 3863285 | \*<br> 56.3% | 34.3% |
| Helen A. Dolan (3)(4)(5)(7)(15)(17)(23) – (27)<br> 340 Crossways Park Drive<br> Woodbury, NY 11797 | Class A Common Stock<br> Class B Common Stock | 298958<br> 3863285 | \*<br> 56.3% | 34.3% |
| James L. Dolan (3)(6)(7)(8)(11)(14)(18)<br> P.O. Box 420<br> Oyster Bay, NY 11771 | Class A Common Stock<br> Class B Common Stock | 1008484<br> 1140792 | 2.2%<br> 16.6% | 10.9% |
| Thomas C. Dolan (3)(7)(9)(14)(16)(19)<br> 340 Crossways Park Drive<br> Woodbury, NY 11797 | Class A Common Stock<br> Class B Common Stock | 67284<br> 468423 | \*<br> 6.8% | 4.2% |
| Brian G. Sweeney (3)(7)(10)(13)(14)(15)(21)<br> 20 Audrey Avenue, 1st Floor<br> Oyster Bay, NY 11771 | Class A Common Stock<br> Class B Common Stock | 128527<br> 806076 | \*<br> 11.7% | 7.2% |
| Paul J. Dolan (3)(7)(11)(18)(22)<br> 340 Crossways Park Drive<br> Woodbury, NY 11797 | Class A Common Stock<br> Class B Common Stock | 129885<br> 1380548 | \*<br> 20.1% | 12.3% |

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|:---|:---|:---|:---|:---|
| **Name and Address** | **Title of Stock Class<sup>(1)</sup>** | **Beneficial<br>Ownership** | **Percent<br>of Class** | **Combined<br>Voting Power of<br>All Classes of<br>Stock Beneficially<br>Owned<sup>(1)(2)</sup>** |
| Marianne Dolan Weber (3)(7)(12)(14)(16)(20)<br> MLC Ventures LLC<br> P.O. Box 1014<br> Yorktown Heights, NY 10598 | Class A Common Stock<br> Class B Common Stock | 93255<br> 450152 | \*<br> 6.6% | 4.0% |
| Charles P. Dolan (7) | Class A Common Stock<br> Class B Common Stock | 19971<br> —  | \* <br> —  | \* |
| Ryan T. Dolan (6) | Class A Common Stock<br> Class B Common Stock | 1076<br> —  | \* <br> —  | \* |
| Quentin F. Dolan (7) | Class A Common Stock<br> Class B Common Stock | 13546<br> —  | \* <br> —  | \* |
| Martin N. Bandier (7) | Class A Common Stock<br> Class B Common Stock | 8141<br> —  | — <br> —  |  |
| Donna Coleman (7) | Class A Common Stock<br> Class B Common Stock | 12307<br> —  | \* <br> —  | \* |
| Frederic V. Salerno (7) | Class A Common Stock<br> Class B Common Stock | 10141<br> —  | \* <br> —  | \* |
| David F. Byrnes (6) | Class A Common Stock<br> Class B Common Stock | 1210<br> —  | \* <br> —  | \* |
| Jamal H. Haughton (6) | Class A Common Stock<br> Class B Common Stock | 1311<br> —  | \* <br> —  | \* |
| Philip G. D'Ambrosio (6) | Class A Common Stock<br> Class B Common Stock | 10126<br> —  | \* <br> —  | \* |
| Courtney Zeppetella (6) | Class A Common Stock<br> Class B Common Stock | — <br> —  | — <br> —  |  |
| All current executive officers and<br> directors as a group (4) – (12) | Class A Common Stock<br> Class B Common Stock | 1675407<br> 6851436 | 3.7%<br> 99.8% | 61.5% |
| Deborah A. Dolan-Sweeney (3)(7)(10)(13)(14)(15)(21)<br> 340 Crossways Park Drive<br> Woodbury, NY 11797 | Class A Common Stock<br> Class B Common Stock | 128527<br> 806076 | \*<br> 11.7% | 7.2% |
| Kathleen M. Dolan (3)(11)(14)(18) – (22)<br> MLC Ventures LLC<br> P.O. Box 1014<br> Yorktown Heights, NY 10598 | Class A Common Stock<br> Class B Common Stock | 189694<br> 2778833 | \*<br> 40.5% | 24.6% |
| Mary S. Dolan (3)(15)(21)(23) – (27)<br> 340 Crossways Park Drive<br> Woodbury, NY 11797 | Class A Common Stock<br> Class B Common Stock | 71948<br> 3985993 | \*<br> 58.0% | 35.2% |
| Matthew J. Dolan (3)(16)(19)(20)<br> 340 Crossways Park Drive<br> Woodbury, NY 11797 | Class A Common Stock<br> Class B Common Stock | 46357<br> 918575 | \*<br> 13.4% | 8.1% |
| Corby Dolan Leinauer (3)(17)(23) – (27)<br> 340 Crossways Park Drive<br> Woodbury, NY 11797 | Class A Common Stock<br> Class B Common Stock | 41254<br> 3521601 | \*<br> 51.3% | 31.0% |
| Charles F. Dolan<br>Children Trust FBO<br> James L. Dolan (3)(8)(11)(14)(18)<br> P.O. Box 420<br> Oyster Bay, NY 11771 | Class A Common Stock<br> Class B Common Stock | 44342<br> 916156 | \*<br> 13.3% | 8.1% |

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|:---|:---|:---|:---|:---|
| **Name and Address** | **Title of Stock Class<sup>(1)</sup>** | **Beneficial<br>Ownership** | **Percent<br>of Class** | **Combined<br>Voting Power of<br>All Classes of<br>Stock Beneficially<br>Owned<sup>(1)(2)</sup>** |
| Charles F. Dolan<br>Children Trust FBO<br> Thomas C. Dolan (3)(9)(14)(16)(19)<br> 340 Crossways Park Drive<br> Woodbury, NY 11797 | Class A Common Stock<br> Class B Common Stock | 20156<br> 468423 | \*<br> 6.8% | 4.1% |
| Charles F. Dolan<br>Children Trust FBO<br> Marianne Dolan Weber (3)(12)(14)(16)(20)<br> MLC Ventures LLC<br> P.O. Box 1014<br> Yorktown Heights, NY 10598 | Class A Common Stock<br> Class B Common Stock | 24187<br> 450152 | \*<br> 6.6% | 4.0% |
| Charles F. Dolan<br>Children Trust FBO<br> Deborah Dolan-Sweeney (3)(10)(13)(14)(15)(21)<br> 340 Crossways Park Drive<br> Woodbury, NY 11797 | Class A Common Stock<br> Class B Common Stock | 24187<br> 464392 | \*<br> 6.8% | 4.1% |
| Charles F. Dolan<br>Children Trust FBO<br> Kathleen M. Dolan (3)(11)(14)(22)<br> MLC Ventures LLC<br> P.O. Box 1014<br> Yorktown Heights, NY 10598 | Class A Common Stock<br> Class B Common Stock | 24187<br>464392 | \*<br> 6.8% | 4.1% |
| Charles F. Dolan<br>2009 Family Trust FBO<br> James L. Dolan (3)(4)(5)(15)(17)(23)<br> P.O. Box 420<br> Oyster Bay, NY 11771 | Class A Common Stock<br> Class B Common Stock | 6718<br> 1046565 | \*<br> 15.2% | 9.2% |
| Charles F. Dolan<br>2009 Family Trust FBO<br> Thomas C. Dolan (3)(4)(5)(15)(17)(24)<br> 340 Crossways Park Drive<br> Woodbury, NY 11797 | Class A Common Stock<br> Class B Common Stock | 6718<br> 652490 | \*<br> 9.5% | 5.8% |
| Charles F. Dolan<br>2009 Family Trust FBO<br> Marianne E. Dolan Weber (3)(4)(5)(15)(17)(25)<br> MLC Ventures LLC<br> P.O. Box 1014<br> Yorktown Heights, NY 10598 | Class A Common Stock<br> Class B Common Stock | 6718<br> 646426 | \*<br> 9.4% | 5.7% |
| Charles F. Dolan<br>2009 Family Trust FBO<br> Deborah A. Dolan-Sweeney (3)(4)(5)(15)(17)(26)<br> 340 Crossways Park Drive<br> Woodbury, NY 11797 | Class A Common Stock<br> Class B Common Stock | 6718<br> 561530 | \*<br> 8.2% | 5.0% |
| Charles F. Dolan<br>2009 Family Trust FBO<br> Kathleen M. Dolan (3)(4)(5)(15)(17)(27)<br> MLC Ventures LLC<br> P.O. Box 1014<br> Yorktown Heights, NY 10598 | Class A Common Stock<br> Class B Common Stock | 6718<br> 614590 | \*<br> 9.0% | 5.4% |

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|:---|:---|:---|:---|:---|
| **Name and Address** | **Title of Stock Class<sup>(1)</sup>** | **Beneficial<br>Ownership** | **Percent<br>of Class** | **Combined<br>Voting Power of<br>All Classes of<br>Stock Beneficially<br>Owned<sup>(1)(2)</sup>** |
| Ariel Investments, LLC (28)<br> 200 E. Randolph Street, Suite 2900<br> Chicago, IL 60601 | Class A Common Stock<br> Class B Common Stock | 6692520<br> —  | 14.9%<br> —  | 5.9% |
| The Vanguard Group (29)<br> 100 Vanguard Blvd.<br> Malvern, PA 19355 | Class A Common Stock<br> Class B Common Stock | 2514028 <br> —  | 5.6%<br> —  | 2.2% |

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\* Less than 1%. 

(1) Beneficial ownership of a security consists of sole or shared voting power (including the power to vote or
direct the vote) and/or sole or shared investment power (including the power to dispose or direct the disposition) with respect to the security through any contract, arrangement, understanding and relationship or otherwise. Unless indicated,
beneficial ownership disclosed consists of sole voting and investment power. Beneficial ownership of Class A Common Stock is exclusive of the shares of Class A Common Stock that are issuable upon conversion of shares of Class B Common
Stock. Share ownership reflects rounding for share-based compensation in the aggregate, not by specific tranche or award.

(2) Shares of Class B Common Stock are convertible into shares of Class A Common Stock at the option of
the holder on a share for share basis. The holder of one share of Class A Common Stock has one vote per share at a meeting of our stockholders and the holder of one share of Class B Common Stock has ten votes per share at a meeting of our
stockholders, except in the separate elections of directors. Holders of Class A Common Stock have the right to elect 25% of our Board rounded up to the nearest whole director and the holders of Class B Common Stock have the right to elect
the remaining members of our Board.

(3) Members of the Dolan family have formed a "group" for purposes of Section 13(d) of the
Securities Exchange Act. The members of this group (the "Group Members") are: Charles F. Dolan, individually and as co-trustee of the Charles F. Dolan 2009 Revocable Trust (the "CFD 2009
Trust"); Helen A. Dolan, individually and as a co-trustee of the Helen A. Dolan 2009 Revocable Trust (the "HAD 2009 Trust"); James L. Dolan; Thomas C. Dolan; Kathleen M.
Dolan, individually and as co-trustee of the Charles F. Dolan Children Trust FBO Kathleen M. Dolan, the Charles F. Dolan Children Trust FBO Deborah Dolan-Sweeney, the Charles F. Dolan
Children Trust FBO Marianne Dolan Weber, the Charles F. Dolan Children Trust FBO Thomas C. Dolan and the Charles F. Dolan Children Trust FBO James L. Dolan (hereinafter collectively referred to as the "Dolan Children
Trusts" and individually, a "Dolan Children Trust") and as sole trustee of the Ryan Dolan 1989 Trust and Tara Dolan 1989 Trust; Marianne E. Dolan Weber; Deborah A. Dolan-Sweeney; the CFD 2009 Trust; the HAD 2009 Trust; the
Dolan Children Trust FBO Kathleen M. Dolan; the Dolan Children Trust FBO Marianne Dolan Weber; the Dolan Children Trust FBO Deborah Dolan-Sweeney; the Dolan Children Trust FBO James L. Dolan; the Dolan Children Trust FBO Thomas C.
Dolan; the Charles F. Dolan 2009 Family Trust FBO James L. Dolan; the Charles F. Dolan 2009 Family Trust FBO Thomas C. Dolan; the Charles F. Dolan 2009 Family Trust FBO Kathleen M. Dolan; the Charles F. Dolan 2009
Family Trust FBO Marianne E. Dolan Weber; the Charles F. Dolan 2009 Family Trust FBO Deborah A. Dolan-Sweeney; the Ryan Dolan 1989 Trust; and the Tara Dolan 1989 Trust. Individuals who are not Group Members but are trustees of trusts
that are Group Members include Brian G. Sweeney, as co-trustee of the CFD 2009 Trust and the HAD 2009 Trust; Corby Dolan Leinauer, as co-trustee of the Charles F.
Dolan 2009 Family Trust FBO Thomas C. Dolan, the Charles F. Dolan 2009 Family Trust FBO James L. Dolan, the Charles F. Dolan 2009 Family Trust FBO Marianne E. Dolan Weber, the Charles F. Dolan 2009 Family Trust FBO
Kathleen M. Dolan and the Charles F. Dolan 2009 Family Trust FBO Deborah A. Dolan-Sweeney (collectively, the "2009 Family Trusts" and individually, a "2009 Family Trust"); Paul J. Dolan, as co-trustee of the Dolan Children Trust FBO Kathleen M. Dolan and the Dolan Children Trust FBO James L. Dolan; Matthew J. Dolan, as co-trustee of the Dolan
Children Trust FBO

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Marianne Dolan Weber and the Dolan Children Trust FBO Thomas C. Dolan; and Mary S. Dolan, as co-trustee of the Dolan Children Trust FBO Deborah Dolan-Sweeney and each of the 2009 Family Trusts. The Group Members may be deemed to beneficially own an aggregate of (i) 1,623,023 shares of Class A Common Stock and (ii) 6,866,754 shares of Class B Common Stock and the equal number of shares of Class A Common Stock issuable upon conversion thereof. Group Members in the aggregate may be deemed to have the current shared power to vote or direct the vote of and to dispose of or direct the disposition of 6,866,754 shares of Class B Common Stock (representing all outstanding Class B Common Stock) and the equal number of shares of Class A Common Stock issuable upon conversion thereof by reason of the terms of an agreement among the group members. Individuals who are not Group Members but are trustees of trusts that are Group Members may be deemed to beneficially own 78,434 shares of Class A Common Stock.

(4) Charles F. Dolan may be deemed to have (a) the sole power to vote or direct the vote of and to dispose of or to
direct the disposition of 17,773 shares of Class A Commom Stock owned of record personally and (b) the current shared power to vote or direct the vote of and to dispose of or direct the disposition of an aggregate of 281,185 shares of Class A
Common Stock (including 50,307 shares of Class A Common Stock owned of record by the CFD 2009 Trust, for which he serves as co-trustee, 197,288 shares of Class A Common Stock owned of record by the
Dolan Family Foundation and an aggregate of 33,590 shares of Class A Common Stock owned of record by the 2009 Family Trusts) and an aggregate of 3,863,285 shares of Class B Common Stock and the equal number of shares of Class A Common
Stock issuable upon conversion thereof (including 228,992 shares of Class B Common Stock owned of record by the CFD 2009 Trust, for which he serves as co-trustee, 112,692 shares of Class B Common
Stock owned of record by the HAD 2009 Trust, for which his spouse, Helen A. Dolan, serves as co-trustee, and an aggregate of 3,521,601 shares of Class B Common Stock owned of record by the 2009 Family
Trusts). This includes an aggregate of 33,590 shares of Class A Common Stock and 3,521,601 shares of Class B Common Stock owned of record by the 2009 Family Trusts which Charles F. Dolan may be deemed to have the right to acquire
because he has the right to substitute assets with each of the trusts, subject to the trustees' reasonable satisfaction that the substitute assets received by the trust are of equal value to the trust property exchanged therefor. He disclaims
beneficial ownership of an aggregate of 230,878 shares of Class A Common Stock (including 197,288 shares of Class A Common Stock owned of record by the Dolan Family Foundation and an aggregate of 33,590 shares of Class A Common Stock
owned of record by the 2009 Family Trusts) and an aggregate of 3,634,293 shares of Class B Common Stock and the equal number of shares of Class A Common Stock issuable upon conversion thereof (including 112,692 shares of Class B
Common Stock owned of record by the HAD 2009 Trust, for which his spouse serves as co-trustee, and an aggregate of 3,521,601 shares of Class B Common Stock owned of record by the 2009 Family Trusts).

(5) Helen A. Dolan may be deemed to have the current shared power to vote or direct the vote of and to dispose of
or direct the disposition of an aggregate of 298,958 shares of Class A Common Stock (including 17,773 shares of Class A Common Stcok owned personally by her spouse, Charles F. Dolan, 197,288 shares of Class A Common Stock owned of record
by the Dolan Family Foundation, an aggregate of 33,590 shares of Class A Common Stock owned of record by the 2009 Family Trusts and 50,307 shares of Class A Common Stock owned of record by the CFD 2009 Trust, for which her spouse serves as co-trustee) and an aggregate of 3,863,285 shares of Class B Common Stock and the equal number of shares of Class A Common Stock issuable upon conversion thereof (including 112,692 shares of
Class B Common Stock owned of record by the HAD 2009 Trust, for which she serves as co-trustee, 228,992 shares of Class B Common Stock owned of record by the CFD 2009 Trust, for which her spouse
serves as co-trustee, and an aggregate of 3,521,601 shares of Class B Common Stock owned of record by the 2009 Family Trusts). Includes an aggregate of 33,590 shares of Class A Common Stock and
3,521,601 shares of Class B Common Stock owned of record by the 2009 Family Trusts which her spouse may be deemed to have the right to acquire because he has the right to substitute assets with each of the trusts, subject to the trustees'
reasonable satisfaction that the substitute assets received by the trust are of equal value to the trust property exchanged therefor. She disclaims beneficial ownership of an aggregate of 298,958 shares of Class A Common Stock (including 17,773
shares of Class A Common owned personally by her spouse, 197,288 shares of Class A Common Stock owned of record by the Dolan Family Foundation, an aggregate of 33,590 shares of Class A Common

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Stock owned of record by the 2009 Family Trusts and 50,307 shares of Class A Common Stock owned of record by the CFD 2009 Trust for which her spouse serves as co-trustee) and an aggregate of 3,750,593 shares of Class B Common Stock and the equal number of shares of Class A Common Stock issuable upon conversion thereof (including 228,992 shares of Class B Common Stock owned of record by the CFD 2009 Trust, for which her spouse serves as co-trustee, and an aggregate of 3,521,601 shares of Class B Common Stock owned of record by the 2009 Family Trusts).

(6) Does not include restricted stock units that will be issued in connection with the Distribution in respect of
unvested restricted stock units granted under the MSG Entertainment Employee Stock Plan or the target amount of unvested performance stock units granted under the MSG Entertainment Employee Stock Plan (except for restricted stock units and
performance stock units subject to vesting within 60 days of February 10, 2023). The excluded number of restricted stock units for the following individuals are: Messrs. James L. Dolan, 213,535 units; David F. Byrnes, 18,934 units; Jamal H.
Haughton, 16,054 units; Philip G. D'Ambrosio, 15,409 units; and Ryan T. Dolan, 931 units; and Ms. Courtney Zeppetella, 4,115 units. The excluded number of target performance stock units for the following individuals are:
Messrs. James L. Dolan, 222,577 units; David F. Byrnes, 21,405 units; Jamal H. Haughton, 18,731 units; Philip G. D'Ambrosio 22,465 units; Ryan T. Dolan, 1,367 units; and Ms. Courtney Zeppetella, 4,115 units.

(7) For purposes of the table, the number of shares beneficially owned presented includes shares of our Class A
Common Stock that are expected to be issued to non-employee directors in respect of MSG Entertainment non-employee director restricted stock units held as of the Reference Date, which for each of the following individuals is: Messrs. Martin N.
Bandier, 8,141 units; Charles F. Dolan, 17,773 units; Charles P. Dolan, 8,141 units; Paul J. Dolan, 14,749 units; Thomas C. Dolan, 17,773 units; Quentin F. Dolan, 8,141 units; Frederic V. Salerno, 9,743 units; and Brian G. Sweeney, 17,773 units; and
Ms. Marianne Dolan Weber, 8,141 units. See "Executive Compensation —Treatment of Outstanding Awards" for further information.

(8) James L. Dolan may be deemed to have (a) the sole power to vote or direct the vote of and to dispose of or
to direct the disposition of an aggregate of 937,191 shares of Class A Common Stock (including 306,206 shares of Class A Common Stock owned of record personally, options owned of record personally to purchase 630,239 shares of Class A
Common Stock that are exercisable within 60 days of February 10, 2023 and 746 shares of Class A Common Stock held as custodian for one or more minor children) and 224,636 shares of Class B Common Stock and the equal number of shares
of Class A Common Stock issuable upon conversion thereof owned of record personally and (b) the shared power to vote or direct the vote of and to dispose of or direct the disposition of an aggregate of 71,293 shares of Class A Common
Stock (including 631 shares of Class A Common Stock owned jointly with his spouse, Kristin A. Dolan, 26,320 shares of Class A Common Stock owned of record personally by his spouse and 44,342 shares of Class A Common Stock owned of
record by the Dolan Children Trust for his benefit) and 916,156 shares of Class B Common Stock and the equal number of shares of Class A Common Stock issuable upon conversion thereof owned of record by the Dolan Children Trust for his
benefit. He disclaims beneficial ownership of an aggregate of 71,408 shares of Class A Common Stock (including 746 shares of Class A Common Stock held as custodian for one or more minor children, 26,320 shares of Class A common Stock
owned of record personally by his spouse and 44,342 shares of Class A Common Stock owned of record by the Dolan Children Trust for his benefit) and 916,156 shares of Class B Common Stock and the equal number of shares of Class A
Common Stock issuable upon conversion thereof owned of record by the Dolan Children Trust for his benefit.

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(9) Thomas C. Dolan may be deemed to have (a) the sole power to vote or direct the vote of and to dispose of
or to direct the disposition of 47,128 shares of Class A Common Stock owned of record personally and (b) the shared power to vote or direct the vote of and to dispose of or to direct the disposition of 20,156 shares of Class A Common
Stock and 468,423 shares of Class B Common Stock and the equal number of shares of Class A Common Stock issuable upon conversion thereof owned of record by the Dolan Children Trust for his benefit. He disclaims beneficial ownership of
20,156 shares of Class A Common Stock and 468,423 shares of Class B Common Stock and the equal number of shares of Class A Common Stock issuable upon conversion thereof owned of record by the Dolan Children Trust for his benefit.

(10) Brian G. Sweeney may be deemed to have (a) the sole power to vote or direct the vote of and dispose or
direct the disposition of 40,200 shares of Class A Common Stock owned of record personally and (b) the shared power to vote or direct the vote of and to dispose of or direct the disposition of an aggregate of 88,327 shares of Class A
Common Stock (including 10,419 shares of Class A Common Stock owned personally by his spouse, Deborah A. Dolan-Sweeney, an aggregate of 3,414 shares of Class A Common Stock held in trusts for his children, for which he serves as trustee,
50,307 shares of Class A Common Stock owned of record by the CFD 2009 Trust, for which he serves as co-trustee, and 24,187 shares of Class A Common Stock owned by the Dolan Children Trust for the
benefit of his spouse) and an aggregate of 806,076 shares of Class B Common Stock and the equal number of shares of Class A Common Stock issuable upon conversion thereof (including 464,392 shares of Class B Common Stock owned of
record by the Dolan Children Trust for the benefit of his spouse, 228,992 shares of Class B Common Stock owned of record by the CFD 2009 Trust, for which he serves as co-trustee, and 112,692 shares of
Class B Common Stock owned of record by the HAD 2009 Trust, for which he serves as co-trustee). He disclaims beneficial ownership of an aggregate of 88,327 shares of Class A Common Stock, (including
10,419 shares of Class A Common Stock owned personally by his spouse, 3,414 shares of Class A Common Stock held in trusts for his children, for which he serves as trustee, 50,307 shares of Class A Common Stock owned of record by the
CFD 2009 Trust, for which he serves as co-trustee, and 24,187 shares of Class A Common Stock owned by the Dolan Children Trust for the benefit of his spouse) and an aggregate of 806,076 shares of
Class B Common Stock and the equal number of shares of Class A Common Stock issuable upon conversion thereof (including 464,392 shares of Class B Common Stock owned of record by the Dolan Children Trust for the benefit of his spouse,
228,992 shares of Class B Common Stock owned of record by the CFD 2009 Trust, for which he serves as co-trustee, and 112,692 shares of Class B Common Stock owned of record by the HAD 2009 Trust, for
which he serves as co-trustee).

(11) Paul J. Dolan may be deemed to have (a) the sole power to vote or direct the vote of and to dispose of or
to direct the disposition of an aggregate of 61,356 shares of Class A Common Stock (including 15,147 shares of Class A Common Stock owned of record personally and 46,209 shares of Class A Common Stock owned of record by the CFD Trust
No. 10, for which he serves as co-trustee) and (b) the current shared power to vote or direct the vote of and to dispose of or direct the disposition of an aggregate of 68,529 shares of Class A
Common Stock owned of record by the Dolan Children Trusts for the benefit of Kathleen M. Dolan and James L. Dolan, for which he serves as co-trustee, and an aggregate of 1,380,548 shares of Class B Common
Stock and the equal number of shares of Class A Common Stock issuable upon conversion thereof owned of record by the Dolan Children Trusts for the benefit of Kathleen M. Dolan and James L. Dolan, for which he serves as co-trustee. He disclaims beneficial ownership of an aggregate of 114,738 shares of Class A Common Stock (including 46,209 shares of Class A Common Stock owned of record by the CFD Trust No. 10, for
which he serves as co-trustee, an aggregate of 68,529 shares of Class A Common Stock owned of record by the Dolan Children Trusts for the benefit of Kathleen M. Dolan and James L. Dolan, for
which he serves as co-trustee) and an aggregate of 1,380,548 shares of Class B Common Stock and the equal number of shares of Class A Common Stock issuable upon conversion thereof owned of record by
the Dolan Children Trusts for the benefit of Kathleen M. Dolan and James L. Dolan, for which he serves as co-trustee.

(12) Marianne Dolan Weber may be deemed to have (a) the sole power to vote or direct the vote of and to dispose
of or to direct the disposition of 19,747 shares of Class A Common Stock owned of record personally and

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(b) the current shared power to vote or direct the vote of and to dispose of or direct the disposition of an aggregate of 73,508 shares of Class A Common Stock (including 49,321 shares of Class A Common Stock owned of record by the Heartfelt Wings Foundation Inc. and 24,187 shares of Class A Common Stock owned of record by the Dolan Children Trust for her benefit) and 450,152 shares of Class B Common Stock and the equal number of shares of Class A Common Stock issuable upon conversion thereof owned of record by the Dolan Children Trust for her benefit. She disclaims beneficial ownership of an aggregate of 73,508 shares of Class A Common Stock (including 49,321 shares of Class A Common Stock owned of record by the Heartfelt Wings Foundation Inc. and 24,187 shares of Class A Common Stock owned of record by the Dolan Children Trust for her benefit) and 450,152 shares of Class B Common Stock and the equal number of shares of Class A Common Stock issuable upon conversion thereof owned of record by the Dolan Children Trust for her benefit.

(13) Deborah A. Dolan-Sweeney may be deemed to have (a) the sole power to vote or direct the vote of and to
dispose of or to direct the disposition of 10,419 shares of Class A Common Stock owned of record personally and (b) the current shared power to vote or direct the vote of and to dispose of or direct the disposition of an aggregate of
118,108 shares of Class A Common Stock (including 40,200 shares of Class A Common Stock owned of record personally by her spouse, 3,414 shares of Class A Common Stock held by trusts for her children, for which her spouse serves as
trustee, 50,307 shares of Class A Common Stock owned of record by the CFD 2009 Trust, for which her spouse serves as co-trustee, and 24,187 shares of Class A Common Stock owned of record by the Dolan
Children Trust for her benefit) and an aggregate of 806,076 shares of Class B Common Stock and the equal number of shares of Class A Common Stock issuable upon conversion thereof (including 464,392 owned of record by the Dolan Children
Trust for her benefit, 228,992 shares of Class B Common Stock owned of record by the CFD 2009 Trust, for which her spouse serves as co-trustee, and 112,692 shares of Class B Common Stock owned of
record by the HAD 2009 Trust, for which her spouse serves as co-trustee). She disclaims beneficial ownership of an aggregate of 118,108 shares of Class A Common Stock (including 40,200 shares of
Class A Common Stock owned of record personally by her spouse, 3,414 shares of Class A Common Stock held by trusts for her children, for which her spouse serves as trustee, 50,307 shares of Class A Common Stock owned of record by the
CFD 2009 Trust, for which her spouse serves as co-trustee, and 24,187 shares of Class A Common Stock owned of record by the Dolan Children Trust for her benefit and an aggregate of 806,076 shares of
Class B Common Stock and the equal number of shares of Class A Common Stock issuable upon conversion thereof (including 464,392 owned of record by the Dolan Children Trust for her benefit, 228,992 shares of Class B Common Stock owned
of record by the CFD 2009 Trust, for which her spouse serves as co-trustee, and 112,692 shares of Class B Common Stock owned of record by the HAD 2009 Trust, for which her spouse serves as co-trustee).

(14) Kathleen M. Dolan may be deemed to have (a) the sole power to vote or direct the vote of and to dispose of
or to direct the disposition of an aggregate of 3,314 shares of Class A Common Stock (including 2,378 shares of Class A Common Stock owned of record personally and 936 shares of Class A Common Stock held as custodian for one or more
minor children) and an aggregate of 15,318 shares of Class B Common Stock and the equal number of shares of Class A Common Stock issuable upon conversion thereof (including 7,659 shares of Class B Common Stock owned of record by the
Ryan Dolan 1989 Trust and 7,659 shares of Class B Common Stock owned of record by the Tara Dolan 1989 Trust, for which she serves as sole trustee) and (b) the current shared power to vote or direct the vote of and to dispose of or direct
the disposition of an aggregate of 186,380 shares of Class A Common Stock (including 49,321 shares of Class A Common Stock owned of record by the Green Mountain Foundation Inc. and an aggregate of 137,059 shares of Class A Common
Stock owned of record by the Dolan Children Trusts, for which she serves as co-trustee) and an aggregate of 2,763,515 shares of Class B Common Stock and the equal number of shares of Class A Common
Stock issuable upon conversion thereof owned of record by the Dolan Children Trusts, for which she serves as co-trustee. She disclaims beneficial ownership of an aggregate of 187,316 shares of Class A
Common Stock (including 936 shares of Class A Common Stock held as custodian for one or more minor children, 49,321 shares of Class A Common Stock owned of record by the Green Mountain Foundation Inc.

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and an aggregate of 137,059 shares of Class A Common Stock owned of record by the Dolan Children Trusts, for which she serves as co-trustee) and an aggregate of 2,778,833 shares of Class B Common Stock and the equal number of shares of Class A Common Stock issuable upon conversion thereof (including 7,659 shares of Class B Common Stock owned of record by the Ryan Dolan 1989 Trust and 7,659 shares of Class B Common Stock owned of record by the Tara Dolan 1989 Trust, for which she serves as sole trustee, and 2,763,515 shares of Class B Common Stock owned of record by the Dolan Children Trusts, for which she serves as co-trustee).

(15) Mary S. Dolan may be deemed to have (a) the sole power to vote or direct the vote and to dispose of or
direct the disposition of 3,453 shares of Class A Common Stock held as custodian for one or more minor children and (b) the current shared power to vote or direct the vote of and to dispose of or direct the disposition of an aggregate of
68,495 shares of Class A Common Stock (including 3,947 shares of Class A Common Stock owned jointly with her spouse, 24,187 shares of Class A Common Stock owned of record by the Dolan Children Trust for the benefit of Deborah
Dolan-Sweeney, for which she serves as co-trustee, an aggregate of 1,692 shares of Class A Common Stock (including 423 shares of Class A Common Stock owned of record by the CFD 2012 Grandchildren
Trust FBO Aidan J. Dolan, 423 shares of Class A Common Stock owned of record by the CFD 2012 Grandchildren Trust FBO Quentin F. Dolan, 423 shares of Class A Common Stock owned of record by the CFD 2012 Grandchildren Trust FBO Marianne Rose
Weber and 423 shares of Class A Common Stock owned of record by the CFD 2012 Grandchildren Trust FBO Kevyn A. Dolan, for which she serves as co-trustee), 5,079 shares of Class A Common Stock
owned of record by the CFD 2012 Descendants Trust, for which she serves as co-trustee, and an aggregate of 33,590 shares of Class A Common Stock owned of record by the 2009 Family Trusts, for which she
serves as co-trustee) and an aggregate of 3,985,993 shares of Class B Common Stock and the equal number of shares of Class A Common Stock issuable upon conversion thereof (including 464,392 shares of
Class B Common Stock owned of record by the Dolan Children Trust for the benefit of Deborah Dolan-Sweeney, for which she serves as co-trustee, and an aggregate of 3,521,601 shares of Class B Common
Stock owned of record by the 2009 Family Trusts, for which she serves as co-trustee). She disclaims beneficial ownership of an aggregate of 68,001 shares of Class A Common Stock (including 3,453 shares of
Class A Common Stock held as custodian for one or more minor children, 24,187 shares of Class A Common Stock owned of record by the Dolan Children Trust for the benefit of Deborah Dolan-Sweeney, for which she serves as co-trustee, an aggregate of 1,692 shares of Class A Common Stock (including 423 shares of Class A Common Stock owned of record by the CFD 2012 Grandchildren Trust FBO Aidan J. Dolan, 423 shares of
Class A Common Stock owned of record by the CFD 2012 Grandchildren Trust FBO Quentin F. Dolan, 423 shares of Class A Common Stock owned of record by the CFD 2012 Grandchildren Trust FBO Marianne Rose Weber and 423 shares of
Class A Common Stock owned of record by the CFD 2012 Grandchildren Trust FBO Kevyn A. Dolan, for which she serves as co-trustee), 5,079 shares of Class A Common Stock owned of record by the CFD
2012 Descendants Trust, for which she serves as co-trustee, and an aggregate of 33,590 shares of Class A Common Stock owned of record by the 2009 Family Trusts, for which she serves as co-trustee) and an aggregate of 3,985,993 shares of Class B Common Stock and the equal number of shares of Class A Common Stock issuable upon conversion thereof (including 464,392 shares of Class B
Common Stock and the equal number of shares of Class A Common Stock issuable upon conversion thereof owned of record by the Dolan Children Trust for the benefit of Deborah A. Dolan-Sweeney, for which she serves as co-trustee, and an aggregate of 3,521,601 shares of Class B Common Stock and the equal number of shares of Class A Common Stock issuable upon conversion thereof owned of record by the 2009 Family Trusts,
for which she serves as co-trustee.

(16) Matthew J. Dolan may be deemed to have (a) the sole power to vote or direct the vote of and to dispose of
or to direct the disposition of an aggregate of 1,206 shares of Class A Common Stock (including 619 shares of Class A Common Stock owned of record personally and 587 shares of Class A Common Stock held as custodian for a minor child)
and (b) the current shared power to vote or direct the vote of and to dispose of or direct the disposition of an aggregate of 45,151 shares of Class A Common Stock (including 480 shares of Class A Common Stock owned jointly with his
spouse, 328 shares of Class A Common Stock held by his

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spouse as custodian for a minor child and an aggregate of 44,343 shares of Class A Common Stock owned of record by the Dolan Children Trusts for the benefit of Marianne Dolan Weber and Thomas C. Dolan, for which he serves as co-trustee) and an aggregate of 918,575 shares of Class B Common Stock and the equal number of shares of Class A Common Stock issuable upon conversion thereof owned of record by the Dolan Children Trusts for the benefit of Marianne Dolan Weber and Thomas C. Dolan, for which he serves as co-trustee. He disclaims beneficial ownership of an aggregate of 45,258 shares of Class A Common Stock (including 587 shares of Class A Common Stock held as custodian for a minor child, 328 shares of Class A Common Stock held by his spouse as custodian for a minor child and an aggregate of 44,343 shares of Class A Common Stock owned of record by the Dolan Children Trusts for the benefit of Marianne Dolan Weber and Thomas C. Dolan, for which he serves as co-trustee) and an aggregate of 918,575 shares of Class B Common Stock and the equal number of shares of Class A Common Stock issuable upon conversion thereof owned of record by the Dolan Children Trusts for the benefit of Marianne Dolan Weber and Thomas C. Dolan, for which he serves as co-trustee.

(17) Corby Dolan Leinauer may be deemed to have (a) the sole power to vote or direct the vote and to dispose of
or direct the disposition of 54 shares of Class A Common Stock held as custodian for one or more minor children and (b) the current shared power to vote or direct the vote of and to dispose of or direct the disposition of an aggregate of
41,200 shares of Class A Common Stock (including 154 shares of Class A Common Stock owned jointly with her spouse, 685 shares of Class A Common Stock owned of record by the Leinauer Family Education Trust, an aggregate of 1,692 shares
of Class A Common Stock (including 423 shares of Class A Common Stock owned of record by the CFD 2012 Grandchildren Trust FBO Aidan J. Dolan, 423 shares of Class A Common Stock owned of record by the CFD 2012 Grandchildren Trust FBO
Quentin F. Dolan, 423 shares of Class A Common Stock owned of record by the CFD 2012 Grandchildren Trust FBO Marianne Rose Weber and 423 shares of Class A Common Stock owned of record by the CFD 2012 Grandchildren Trust FBO Kevyn A.
Dolan, for which she serves as co-trustee), 5,079 shares of Class A Common Stock owned of record by the CFD 2012 Descendants Trust, for which she serves as co-trustee, and an aggregate of 33,590 shares of Class A Common Stock owned of record by the 2009 Family Trusts, for which she serves as co-trustee) and an
aggregate of 3,521,601 shares of Class B Common Stock and the equal number of shares of Class A Common Stock issuable upon conversion thereof owned of record by the 2009 Family Trusts, for which she serves as co-trustee. She disclaims beneficial ownership of an aggregate of 41,100 shares of Class A Common Stock (including 54 shares of Class A Common Stock held as custodian for one or more minor children,
685 shares of Class A Common Stock owned of record by the Leinauer Family Education Trust, an aggregate of 1,692 shares of Class A Common Stock (including 423 shares of Class A Common Stock owned of record by the CFD 2012
Grandchildren Trust FBO Aidan J. Dolan, 423 shares of Class A Common Stock owned of record by the CFD 2012 Grandchildren Trust FBO Quentin F. Dolan, 423 shares of Class A Common Stock owned of record by the CFD 2012 Grandchildren
Trust FBO Marianne Rose Weber and 423 shares of Class A Common Stock owned of record by the CFD 2012 Grandchildren Trust FBO Kevyn A. Dolan, for which she serves as co-trustee), 5,079 shares of
Class A Common Stock owned of record by the CFD 2012 Descendants Trust, for which she serves as co-trustee and an aggregate of 33,590 shares of Class A Common Stock owned of record by the 2009 Family
Trusts, for which she serves as co-trustee) and an aggregate of 3,521,601 shares of Class B Common Stock and the equal number of shares of Class A Common Stock issuable upon conversion thereof owned
of record by the 2009 Family Trusts, for which she serves as co-trustee.

(18) Kathleen M. Dolan and Paul J. Dolan are the trustees of the Charles F. Dolan Children Trust FBO James L. Dolan
and have the shared power to vote and dispose of the shares held by the trust.

(19) Kathleen M. Dolan and Matthew J. Dolan are the trustees of the Charles F. Dolan Children Trust FBO Thomas C.
Dolan and have the shared power to vote and dispose of the shares held by the trust.

(20) Kathleen M. Dolan and Matthew J. Dolan are the trustees of the Charles F. Dolan Children Trust FBO Marianne
Dolan Weber and have the shared power to vote and dispose of the shares held by the trust.

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(21) Kathleen M. Dolan and Mary S. Dolan are the trustees of the Charles F. Dolan Children Trust FBO Deborah
Dolan-Sweeney and have the shared power to vote and dispose of the shares held by the trust.

(22) Kathleen M. Dolan and Paul J. Dolan are the trustees of the Charles F. Dolan Children Trust FBO Kathleen M.
Dolan and have the shared power to vote and dispose of the shares held by the trust.

(23) Corby Dolan Leinauer and Mary S. Dolan are the trustees of the Charles F. Dolan 2009 Family Trust FBO James L.
Dolan and have the shared power to vote and dispose of the shares held by the trust.

(24) Corby Dolan Leinauer and Mary S. Dolan are the trustees of the Charles F. Dolan 2009 Family Trust FBO Thomas C.
Dolan and have the shared power to vote and dispose of the shares held by the trust.

(25) Corby Dolan Leinauer and Mary S. Dolan are the trustees of the Charles F. Dolan 2009 Family Trust FBO Marianne
E. Dolan Weber and have the shared power to vote and dispose of the shares held by the trust.

(26) Corby Dolan Leinauer and Mary S. Dolan are the trustees of the Charles F. Dolan 2009 Family Trust FBO Deborah
A. Dolan-Sweeney and have the shared power to vote and dispose of the shares held by the trust.

(27) Corby Dolan Leinauer and Mary S. Dolan are the trustees of the Charles F. Dolan 2009 Family Trust FBO Kathleen
M. Dolan and have the shared power to vote and dispose of the shares held by the trust.

(28) Based upon a Schedule 13G/A (Amendment No. 5) filed with the SEC on February 14, 2023, Ariel
Investments, LLC ("Ariel") beneficially owns 6,692,520 shares of Class A Common Stock. Ariel has sole voting power over 6,097,877 shares of Class A Common Stock and sole dispositive power over 6,692,520 shares of Class A
Common Stock.

(29) Based upon a Schedule 13G/A (Amendment No. 1) filed with the SEC on February 9, 2023, The Vanguard
Group, Inc. ("Vanguard") beneficially owns 2,514,028 shares of Class A Common Stock. Vanguard has sole voting power over 0 shares of Class A Common Stock, shared voting power over 17,682 shares of Class A Common Stock, sole
dispositive power over 2,471,218 shares of Class A Common Stock and shared dispositive power over 42,810 shares of Class A Common Stock.

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**SHARES ELIGIBLE FOR FUTURE SALE** 

Sales or the availability for sale of substantial amounts of our Class A Common Stock in the public market could adversely affect the prevailing market price for such stock. Upon completion of the Distribution, we will have outstanding an aggregate of approximately [●] shares of our Class A Common Stock and [●] shares of our Class B Common Stock based upon the shares of MSG Entertainment common stock outstanding on [●], 2023, excluding treasury stock and assuming no exercise of outstanding options. All of the shares of Class A Common Stock will be freely tradable without restriction or further registration under the Securities Act unless the shares are owned by our "affiliates" as that term is defined in the rules under the Securities Act. Shares held by "affiliates" may be sold in the public market only if registered or if they qualify for an exemption from registration or in compliance with Rule 144, which is summarized below. Further, as described below, we plan to file a registration statement to cover the shares issued under our Employee Stock Plan.

**Rule 144** 

In general, under Rule 144 as currently in effect, an affiliate would be entitled to sell within any three-month period a number of shares of Class A Common Stock that does not exceed the greater of:

• one percent of the number of shares of our Class A Common Stock then outstanding; or

• the average weekly trading volume of our Class A Common Stock on the NYSE during the four calendar weeks
preceding the filing of a notice on Form 144 with respect to such sale.

Sales under Rule 144 are also subject to certain holding period requirements, manner of sale provisions and notice requirements and to the availability of current public information about us.

**Employee Stock Awards** 

As described under "Executive Compensation — Treatment of Outstanding Awards," in connection with the Distribution we will issue under our Employee Stock Plan options with respect to approximately [●] shares of our Class A Common Stock, approximately [●] restricted stock units and approximately [●] performance stock units (at the target level of performance) in respect of previously outstanding awards by MSG Entertainment. In addition, we anticipate making other equity-based awards to our employees in the future. We currently expect to file a registration statement under the Securities Act to register shares to be issued under our Employee Stock Plan, including the options, restricted stock units and performance stock units that were granted in connection with the Distribution. Shares covered by such registration statement, other than shares issued to affiliates, generally will be freely tradable without further registration under the Securities Act.

**Non-Employee Director Stock Awards** 

We also currently expect to file a registration statement under the Securities Act to register shares to be issued under our Director Stock Plan, including approximately [●] shares of the Company's Class A Common Stock in connection with MSG Entertainment's restricted stock units, in each case held by MSG Entertainment directors. These shares will be granted, issued and fully vested as of the Distribution date. Shares covered by such registration statement, other than shares issued to affiliates, generally will be freely tradable without further registration under the Securities Act.

**Registration Rights Agreements** 

MSG Entertainment will retain approximately 38% of the outstanding shares of Class A Common Stock, representing approximately 33% of our common stock, following the Distribution. Prior to the Distribution, we and MSG Entertainment will enter into a Stockholder and Registration Rights Agreement pursuant to which we will provide MSG Entertainment with "demand" and "piggyback" registration rights with respect to the shares of

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Class A Common Stock it owns following the Distribution. Although no final decisions have been made, MSG Entertainment is required by applicable tax rules to dispose of all the retained shares as soon as practicable consistent with the business purposes for the retention, and expects to dispose of such retained shares within one year, subject to market conditions. This disposition may be through one or more sales, exchange offers or pro-rata distributions.

Charles F. Dolan, all other holders of Class B Common Stock (other than the Charles F. Dolan Children Trusts) and the Dolan Family Foundation (collectively, the "Dolan Parties") will enter into the Dolan Registration Rights Agreement with the Company, which will become effective upon consummation of the Distribution. Under this agreement, the Company will provide the Dolan Parties (and, in certain cases, transferees and pledgees of shares of Class B Common Stock owned by these parties) with certain demand and piggy-back registration rights with respect to their shares of Class A Common Stock (including those issued upon conversion of shares of Class B Common Stock). The Dolan Parties are expected to receive [●] shares of our Class B Common Stock in the Distribution, which are expected to represent approximately [●]% of our Class B Common Stock as well as approximately [●] shares of Class A Common Stock, which are expected to represent less than [●]% of our Class A Common Stock. Such shares of Class B Common Stock and Class A Common Stock, collectively, are expected to represent approximately [●]% of our common stock and [●]% of the aggregate voting power of our common stock.

The Charles F. Dolan Children Trusts (the "Dolan Children Trusts") and the Company will enter into the Children Trusts Registration Rights Agreement, which will become effective upon consummation of the Distribution. Under this agreement, the Company will provide the Dolan Children Trusts (and, in certain cases, transferees and pledgees of shares of Class B Common Stock owned by these parties) with certain demand and piggy-back registration rights with respect to their shares of Class A Common Stock (including those issued upon conversion of shares of Class B Common Stock). The Dolan Children Trusts are expected to receive Class B Common Stock in the Distribution (the "Children Trust Shares"), which are expected to represent approximately [●]% of our Class B Common Stock, as well as approximately [●] shares of Class A Common Stock, which are expected to represent less than [●]% of our Class A Common Stock. Such shares of Class B Common Stock and Class A Common Stock, collectively, are expected to represent approximately [●]% of our common stock and [●]% of the aggregate voting power of our common stock.

In the Children Trusts Registration Rights Agreement, each Dolan Children Trust will agree that in the case of any sale or disposition of its shares of Class B Common Stock by such Dolan Children Trust, or of any of the Children Trust Shares by any other Dolan family interest to which such shares of Class B Common Stock are transferred, such stock will be converted to Class A Common Stock. The Dolan Registration Rights Agreement will not include a comparable conversion obligation, and the conversion obligation in the Children Trusts Registration Rights Agreement will not apply to the Class B Common Stock received by the Dolan Parties in the Distribution.

The Dolan Registration Rights Agreement and the Children Trusts Registration Rights Agreement are filed as exhibits prior to the Distribution to the registration statement, of which this information statement forms a part, that we have filed with the SEC, and the foregoing discussion of those agreements is qualified in its entirety by reference to those agreements that will be filed prior to the Distribution.

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**DESCRIPTION OF CAPITAL STOCK** 

We are currently authorized to issue 1,000 shares of common stock. Prior to the Distribution, we will amend our certificate of incorporation to provide authorization for us to issue [●] shares of capital stock, of which [●] shares will be Class A Common Stock, par value $0.01 per share, [●] shares will be Class B Common Stock, par value $.01 per share, and [●] shares will be preferred stock, par value $.01 per share. The amended and restated certificate of incorporation will provide that our common stock and preferred stock will have the rights described below.

**Class A Common Stock and Class B Common Stock** 

All shares of our common stock currently outstanding are fully paid and non-assessable, not subject to redemption and without preemptive or other rights to subscribe for or purchase any proportionate part of any new or additional issues of stock of any class or of securities convertible into stock of any class.

*Voting* 

Holders of Class A Common Stock are entitled to one vote per share. Holders of Class B Common Stock are entitled to 10 votes per share. All actions submitted to a vote of stockholders are voted on by holders of Class A Common Stock and Class B Common Stock voting together as a single class, except for the election of directors and as otherwise set forth below. With respect to the election of directors, holders of Class A Common Stock will vote together as a separate class and be entitled to elect 25% of the total number of directors constituting the whole Board of Directors and, if such 25% is not a whole number, then the holders of Class A Common Stock, voting together as a separate class, will be entitled to elect the nearest higher whole number of directors that is at least 25% of the total number of directors. Holders of Class B Common Stock, voting together as a separate class, will be entitled to elect the remaining directors.

If, however, on the record date for any stockholders meeting at which directors are to be elected, the number of outstanding shares of Class A Common Stock is less than 10% of the total number of outstanding shares of both classes of common stock, the holders of Class A Common Stock and Class B Common Stock will vote together as a single class with respect to the election of directors and the holders of Class A Common Stock will not have the right to elect 25% of the total number of directors but will have one vote per share for all directors and the holders of Class B Common Stock will have 10 votes per share for all directors. (On the date of the Distribution, we anticipate that the number of outstanding shares of Class A Common Stock will represent approximately [●]% of the total number of outstanding shares of both classes of common stock.)

If, on the record date for notice of any stockholders meeting at which directors are to be elected, the number of outstanding shares of Class B Common Stock is less than 12<sup>1</sup>/<sub>2</sub>% of the total number of outstanding shares of both classes of common stock, then the holders of Class A Common Stock, voting as a separate class, would continue to elect a number of directors equal to 25% of the total number of directors constituting the whole Board of Directors and, in addition, would vote together with the holders of Class B Common Stock, as a single class, to elect the remaining directors to be elected at such meeting, with the holders of Class A Common Stock entitled to one vote per share and the holders of Class B Common Stock entitled to 10 votes per share.

In addition, the affirmative vote or consent of the holders of at least 66<sup>2</sup>/<sub>3</sub>% of the outstanding shares of Class B Common Stock, voting separately as a class, is required for the authorization or issuance of any additional shares of Class B Common Stock and for any amendment, alteration or repeal of any provisions of our amended and restated certificate of incorporation which would affect adversely the powers, preferences or rights of the Class B Common Stock. The number of authorized shares of Class A Common Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of the majority of the common stock. Our amended and restated certificate of incorporation will not provide for cumulative voting.

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Pursuant to the Stockholder and Registration Rights Agreement, MSG Entertainment has agreed that so long as it owns any Class A Common Stock, such Class A Common Stock will be voted with respect to any matter (including waivers of contractual or statutory rights), in proportion to the votes cast by the other holders of Class A Common Stock on such matter, to the extent such shares of Class A Common Stock are entitled to be voted on such matter. In addition, the shares of Class A Common Stock owned by MSG Entertainment will be present at all stockholder meetings for quorum purposes. MSG Entertainment has granted the Company an irrevocable proxy to implement these voting agreements.

*Advance Notification of Stockholder Nominations and Proposals* 

Our amended by-laws will establish advance notice procedures with respect to stockholder proposals and nomination of candidates for election as directors other than nominations made by or at the direction of our Board of Directors. In particular, stockholders must notify our corporate secretary in writing prior to the meeting at which the matters are to be acted upon or directors are to be elected. The notice must contain the information specified in our amended by-laws. To be timely, the notice must be received by our corporate secretary not less than 60 or more than 90 days prior to the date of the stockholders' meeting, provided that if the date of the meeting is publicly announced or disclosed less than 70 days prior to the date of the meeting, the notice must be given not more than 10 days after such date is first announced or disclosed.

*No Stockholder Action by Written Consent* 

Our amended and restated certificate of incorporation will provide that, except as otherwise provided as to any series of preferred stock in the terms of that series, no action of stockholders required or permitted to be taken at any annual or special meeting of stockholders may be taken without a meeting of stockholders, without prior notice and without a vote, and the power of the stockholders to consent in writing to the taking of any action without a meeting is specifically denied.

*Conversions* 

The Class A Common Stock has no conversion rights. The Class B Common Stock is convertible into Class A Common Stock in whole or in part at any time and from time to time on the basis of one share of Class A Common Stock for each share of Class B Common Stock. In the case of any sale or disposition of Class B Common Stock by a Dolan Children Trust, or of any Children Trust Shares by any other Dolan family interest to which such shares have been transferred, such stock must be converted to Class A Common Stock on a one-for-one basis. This conversion requirement will not apply to sales or dispositions of Class B Common Stock to Charles F. Dolan or other Dolan family interests. Any conversion of Class B Common Stock into Class A Common Stock would result in the issuance of additional shares of Class A Common Stock. As a result of any such conversion, existing Class A Common Stockholders would own the same percentage of the outstanding Common Stock but a smaller percentage of the total number of shares of issued and outstanding Class A Common Stock. Additionally, the conversion of shares of Class B Common Stock, which are entitled to 10 votes per share, into shares of Class A Common Stock, which are entitled to one vote per share, would increase the voting power of Class A Common Stockholders with respect to all actions that are voted on by holders of Class A Common Stock and Class B Common Stock as a single class; however, the Class B Common Stockholders, voting as a separate class, would continue to have the right to elect up to 75% of our Board of Directors unless and until the Class B Common Stock represented less than 12<sup>1</sup>/<sub>2</sub>% of the outstanding Common Stock and, when both classes vote together as one class, would continue to represent a majority of the outstanding voting power of the Common Stock unless and until the Class B Common Stock represented less than approximately 9.1% of the outstanding Common Stock. See "Description of Capital Stock — Class A Common Stock and Class B Common Stock — Voting" and "Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters — Beneficial Ownership of Stock."

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*Dividends* 

Holders of Class A Common Stock and Class B Common Stock are entitled to receive dividends equally on a per-share basis if and when such dividends are declared by the Board of Directors from funds legally available therefor. No dividend may be declared or paid in cash or property or shares of either Class A Common Stock or Class B Common Stock unless the same dividend is paid simultaneously on each share of the other class of common stock. In the case of any stock dividend, holders of Class A Common Stock are entitled to receive the same dividend on a percentage basis (payable in shares of or securities convertible to shares of Class A Common Stock and other securities of ours or any other person) as holders of Class B Common Stock receive (payable in shares of or securities convertible into shares of Class A Common Stock, shares of or securities convertible into shares of Class B Common Stock and other securities of us or any other person). The distribution of shares or other securities of the Company or any other person to common stockholders is permitted to differ to the extent that the common stock differs as to voting rights and rights in connection to certain dividends.

*Liquidation* 

Holders of Class A Common Stock and Class B Common Stock share with each other on a ratable basis as a single class in the net assets available for distribution in respect of Class A Common Stock and Class B Common Stock in the event of a liquidation.

*Other Terms* 

Neither the Class A Common Stock nor the Class B Common Stock may be subdivided, consolidated, reclassified or otherwise changed, except as expressly provided in our amended and restated certificate of incorporation, unless the other class of common stock is subdivided, consolidated, reclassified or otherwise changed at the same time, in the same proportion and in the same manner.

In any merger, consolidation or business combination the consideration to be received per share by holders of either Class A Common Stock or Class B Common Stock must be identical to that received by holders of the other class of common stock, except that in any such transaction in which shares of capital stock are distributed, such shares may differ as to voting rights only to the extent that voting rights now differ between Class A Common Stock and Class B Common Stock.

*Transfer Agent* 

The transfer and distribution agent and registrar for the Class A Common Stock is EQ Shareowner Services.

**Preferred Stock** 

Under our amended and restated certificate of incorporation, our Board of Directors will be authorized, without further stockholder action, to provide for the issuance of up to [•] shares of preferred stock in one or more series. The powers, designations, preferences and relative, participating, optional or other special rights, and qualifications, limitations or restrictions, including dividend rights, voting rights, conversion rights, terms of redemption and liquidation preferences, of the preferred stock of each series will be fixed or designated by the Board of Directors pursuant to a certificate of designations. There will be no shares of our preferred stock outstanding at the time of the Distribution. Any issuance of preferred stock may adversely affect the rights of holders of our common stock and may render more difficult certain unsolicited or hostile attempts to take over the Company.

**Certain Corporate Opportunities and Conflicts** 

Our amended and restated certificate of incorporation will recognize that Overlap Persons may serve as directors, officers, employees, and agents of an Other Entity and will provide that if a director or officer of the

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Company who is an Overlap Person is presented or offered, or otherwise acquires knowledge of, a potential transaction or matter that may constitute or present a business opportunity for the Company or any of its subsidiaries, in which the Company could have an interest or expectancy (any such transaction or matter, and any such actual or potential business opportunity, a "Potential Business Opportunity"), (i) such Overlap Person will, to the fullest extent permitted by law, have no duty or obligation to refrain from referring such Potential Business Opportunity to any Other Entity and, if such director or officer refers such Potential Business Opportunity to an Other Entity, such Overlap Person shall have no duty or obligation to refer such Potential Business Opportunity to the Company or to give any notice to the Company regarding such Potential Business Opportunity (or any matter related thereto), (ii) if such Overlap Person refers a Potential Business Opportunity to an Other Entity, such Overlap Person, to the fullest extent permitted by law, will not be liable to the Company as a director, officer, stockholder or otherwise, for any failure to refer such Potential Business Opportunity to the Company, or for referring such Potential Business Opportunity to any Other Entity, or for any failure to give any notice to the Company regarding such Potential Business Opportunity or any matter relating thereto, (iii) any Other Entity may participate, engage or invest in any such Potential Business Opportunity notwithstanding that such Potential Business Opportunity may have been referred to such Other Entity by an Overlap Person, and (iv) if a director or officer who is an Overlap Person refers a Potential Business Opportunity to an Other Entity, then, as between the Company, on the one hand, and such Other Entity, on the other hand, the Company shall be deemed to have renounced any interest, expectancy or right in or to such Potential Business Opportunity or to receive any income or proceeds derived therefrom solely as a result of such Overlap Person having been presented or offered, or otherwise acquiring knowledge of, such Potential Business Opportunity, unless in each case referred to in clauses (i), (ii), (iii) or (iv), such Potential Business Opportunity is considered a "Restricted Potential Business Opportunity" as defined in our amended and restated certificate of incorporation. In our amended and restated certificate of incorporation, the Company has renounced to the fullest extent permitted by law, any interest or expectancy in any Potential Business Opportunity that is not a Restricted Potential Business Opportunity. In the event that the Company's Board of Directors declines to pursue a Restricted Potential Business Opportunity, Overlap Persons are free to refer such Restricted Potential Business Opportunity to an Other Entity.

Our amended and restated certificate of incorporation will provide that no contract, agreement, arrangement or transaction (or any amendment, modification or termination thereof) entered into between the Company and/or any of its subsidiaries, on the one hand, and an Other Entity, on the other hand, before the Company ceased to be an indirect, wholly-owned subsidiary of MSG Entertainment shall be void or voidable or be considered unfair to the Company or any of its subsidiaries solely because an Other Entity is a party thereto, or because any directors, officers or employees of an Other Entity were present at or participated in any meeting of the Board of Directors, or a committee thereof, of the Company that authorized the contract, agreement, arrangement or transaction (or any amendment, modification or termination thereof), or because his, her or their votes were counted for such purpose. The Company may from time to time enter into and perform, and cause or permit any of its subsidiaries to enter into and perform, one or more contracts, agreements, arrangements or transactions (or amendments, modifications or supplements thereto) with an Other Entity. To the fullest extent permitted by law, no such contract, agreement, arrangement or transaction (nor any such amendments, modifications or supplements), nor the performance thereof by the Company or an Other Entity, shall be considered contrary to any fiduciary duty owed to the Company (or to any stockholder of the Company) by any director or officer of the Company who is an Overlap Person. To the fullest extent permitted by law, no director or officer of the Company who is an Overlap Person thereof shall have or be under any fiduciary duty to the Company (or to any stockholder of the Company) to refrain from acting on behalf of the Company or an Other Entity in respect of any such contract, agreement, arrangement or transaction or performing any such contract, agreement, arrangement or transaction in accordance with its terms and each such director or officer of the Company who is an Overlap Person shall be deemed to have acted in good faith and in a manner such person reasonably believed to be in or not opposed to the best interests of the Company, and shall be deemed not to have breached his or her duties of loyalty to the Company (or to any stockholders of the Company) and not to have derived an improper personal benefit therefrom.

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No alteration, amendment or repeal of, or adoption of any provision inconsistent with the foregoing provisions will have any effect upon: (a) any agreement between the Company or a subsidiary thereof and any Other Entity that was entered into before the time of such alteration, amendment or repeal or adoption of any such inconsistent provision (the "Amendment Time"), or any transaction entered into in connection with the performance of any such agreement, whether such transaction is entered into before or after the Amendment Time; (b) any transaction entered into between the Company or a subsidiary thereof and any Other Entity, before the Amendment Time; (c) the allocation of any business opportunity between the Company or any subsidiary thereof and any Other Entity before the Amendment Time; or (d) any duty or obligation owed by any director or officer of the Company or any subsidiary of the Company (or the absence of any such duty or obligation) with respect to any Potential Business Opportunity which such director or officer was offered, or of which such director or officer otherwise became aware, before the Amendment Time (regardless of whether any proceeding relating to any of the above is commenced before or after the Amendment Time).

**Section 203 of the Delaware General Corporation Law** 

Section 203 of the General Corporation Law of the State of Delaware prohibits certain transactions between a Delaware corporation and an "interested stockholder." An "interested stockholder" for this purpose is a stockholder who is directly or indirectly a beneficial owner of 15% or more of the aggregate voting power of a Delaware corporation. This provision prohibits certain business combinations between an interested stockholder and a corporation for a period of three years after the date on which the stockholder became an interested stockholder, unless: (1) prior to the time that a stockholder became an interested stockholder, either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder is approved by the Company's Board of Directors; (2) the interested stockholder acquired at least 85% of the aggregate voting power of the Company in the transaction in which the stockholder became an interested stockholder; or (3) the business combination is approved by a majority of the Board of Directors and the affirmative vote of the holders of two-thirds of the aggregate voting power not owned by the interested stockholder at or subsequent to the time that the stockholder became an interested stockholder. These restrictions do not apply if, among other things, the Company's certificate of incorporation contains a provision expressly electing not to be governed by Section 203. Our amended and restated certificate of incorporation will not contain such an election. However, our Board of Directors has exercised its right under Section 203 to approve the acquisition of our common stock in the Distribution by members of the Dolan Family Group. This has the effect of making Section 203 inapplicable to transactions between the Company and current and future members of the Dolan Family Group.

**Limitation on Personal Liability** 

We have provided, consistent with the Delaware General Corporation Law, in our certificate of incorporation that a director of the Company shall not be personally liable to the Company or its stockholders for monetary damages for breach of fiduciary duty as a director, except for liability for:

• any breach of the director's duty of loyalty to us or our stockholders;

• acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law;

• payments of unlawful dividends or unlawful stock repurchases or redemptions; or

• any transaction from which the director derived an improper personal benefit.

Neither the amendment nor repeal of such provision will adversely affect any right or protection of a person that exists at the time of such amendment or repeal.

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**INDEMNIFICATION** 

**OF DIRECTORS AND OFFICERS** 

Section 145 of the Delaware General Corporation Law provides that a corporation may indemnify any current or former director, officer or employee or other individual against expenses, judgments, fines and amounts paid in settlement in connection with civil, criminal, administrative or investigative actions or proceedings, other than a derivative action by or in the right of the corporation, if the director, officer, employee or other individual acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, if he or she had no reasonable cause to believe his or her conduct was unlawful. A similar standard is applicable in the case of derivative actions, except that indemnification only extends to expenses incurred in connection with the defense or settlement of such actions, and the statute requires court approval before there can be any indemnification where the person seeking indemnification has been found liable to the corporation. The statute provides that it is not exclusive of other indemnification that may be granted by a corporation's by-laws, disinterested director vote, stockholder vote, agreement or otherwise.

Our amended and restated certificate of incorporation will provide that, to the fullest extent permitted by Section 145 of the Delaware General Corporation Law, as the same may be amended and supplemented, or by any successor thereto, the Company will indemnify any and all persons whom it shall have power to indemnify under said section from and against any and all of the expenses, liabilities or other matters referred to in or covered by said section. Such right to indemnification shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person. The right to indemnification provided under the certificate of incorporation is not exclusive of any other rights to which a person seeking indemnification may be entitled under any by-law, agreement, vote of stockholders or disinterested directors or otherwise. The amended and restated certificate of incorporation also provides that no amendment, modification or repeal of the indemnification provision shall adversely affect any right or protection of a person that exists at the time of such amendment, modification or repeal.

Prior to the Distribution, we expect to enter into indemnification agreements with each of our directors and executive officers. The indemnification agreements will provide that we will, to the fullest extent permitted by Delaware law, and subject to the terms and conditions of each indemnification agreement, indemnify each director and executive officer against certain types of liabilities and pay or reimburse certain expenses if the director or executive officer is involved in any manner (including as a party or witness) in certain types of proceedings by reason of the fact of such person's service as a director, officer, partner, trustee, fiduciary, manager or employee of the Company or of any other corporation, limited liability company, public limited company, partnership, joint venture, trust, employee benefit plan, fund or other enterprise (a) affiliated with the Company or (b) at the written request of the Board, a Board committee, the Executive Chairman or the Chief Executive Officer of the Company.

The Distribution Agreement between us and MSG Entertainment provides for indemnification by us of MSG Entertainment and its directors, officers and employees and by MSG Entertainment of us and our directors, officers and employees for some liabilities, including liabilities under the Securities Act and the Exchange Act. The amount of these indemnity obligations is unlimited.

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**AVAILABLE INFORMATION** 

We have filed with the SEC a registration statement, of which this information statement forms a part, under the Exchange Act and the rules and regulations promulgated under the Exchange Act with respect to the shares of our Class A Common Stock being distributed to MSG Entertainment stockholders in the Distribution. This information statement does not contain all of the information set forth in the registration statement and its exhibits and schedules, to which reference is made hereby. Statements in this information statement as to the contents of any contract, agreement or other document are qualified in all respects by reference to such contract, agreement or document. If we have filed any of those contracts, agreements or other documents as an exhibit to the registration statement, you should read the full text of such contract, agreement or document for a more complete understanding of the document or matter involved. For further information with respect to us and our Class A Common Stock, we refer you to the registration statement, of which this information statement forms a part, including the exhibits and the schedules filed as a part of it.

We intend to furnish the holders of our Class A Common Stock with annual reports and proxy statements containing financial statements audited by an independent public accounting firm and file with the SEC quarterly reports for the first three quarters of each fiscal year containing interim unaudited financial information. We also intend to furnish other reports as we may determine or as required by law.

The registration statement, of which this information statement forms a part, and its exhibits and schedules, and other documents which we file with the SEC are available to the public at the SEC's website at http://www.sec.gov. You can also obtain reports, proxy statements and other information about us at the NYSE's website at http://www.nyse.com.

Information that we file with the SEC after the date of this information statement may supersede the information in this information statement. You may read these reports, proxy statements and other information and obtain copies of such documents and information as described above.

No person is authorized to give any information or to make any representations other than those contained in this information statement, and, if given or made, such information or representations must not be relied upon as having been authorized. Neither the delivery of this information statement nor any distribution of securities made hereunder shall imply that there has been no change in the information set forth or in our affairs since the date hereof.

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**INDEX TO COMBINED FINANCIAL STATEMENTS** 

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| | |
|:---|:---|
|  | **Page** |
|  **Combined Financial Statements** |  |
|  [Reports of Independent Registered Public Accounting Firms (Deloitte & Touche LLP, New York, NY, Auditor Firm ID: 34; KPMG LLP, New York, NY, Auditor Firm ID: 185)](#fin357108_1) | F-2 |
|  [Combined Balance Sheets as of June 30, 2022 and 2021](#fin357108_2) | F-4 |
|  [Combined Statements of Operations for the years ended June 30, 2022, 2021 and 2020](#fin357108_3) | F-5 |
|  [Combined Statements of Comprehensive Income (Loss) for the years ended June 30, 2022, 2021, and 2020](#fin357108_4) | F-6 |
|  [Combined Statements of Cash Flows for the years ended June 30, 2022, 2021, and 2020](#fin357108_5) | F-7 |
|  [Combined Statements of Divisional Equity (Deficit) for the years ended June 30, 2022, 2021, and 2020](#fin357108_6) | F-9 |
|  [Notes to the Combined Financial Statements](#fin357108_7) | F-10 |
|  [Schedule II Valuation and Qualifying Accounts](#fin357108_7a) | F-55 |

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| | |
|:---|:---|
|  | **Page** |
|  **Condensed Combined Financial Statements (Unaudited)** |  |
|  [Condensed Combined Balance Sheets as of December 31, 2022 and June 30, 2022](#fin357108_8) | F-56 |
|  [Condensed Combined Statements of Operations for the six months ended December 31, 2022 and 2021](#fin357108_9) | F-57 |
|  [Condensed Combined Statements of Comprehensive Income (Loss) for the six months ended December 31, 2022 and 2021](#fin357108_10) | F-58 |
|  [Condensed Combined Statements of Cash Flows for the six months ended December 31, 2022 and 2021](#fin357108_11) | F-59 |
|  [Condensed Combined Statements of Divisional Equity (Deficit) for the six months ended December 31, 2022 and 2021](#fin357108_12) | F-61 |
|  [Notes to the Condensed Combined Financial Statements](#fin357108_13) | F-62 |

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

To the Stockholders and the Board of Directors of MSGE Spinco, Inc.

**Opinion on the Financial Statements** 

We have audited the accompanying combined balance sheets of MSGE Spinco, Inc. (the traditional live entertainment business of Madison Square Garden Entertainment Corp.) (the "Company") as of June 30, 2022 and 2021, the related combined statements of operations, comprehensive income (loss), cash flows, and divisional equity (deficit) for each of the two years in the period ended June 30, 2022, and the related notes and financial statement Schedule II (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2022 and 2021, and the results of its operations and its cash flows for each of the two years in the period ended June 30, 2022, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion** 

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Emphasis of Matter** 

As described in Notes 1 and 19 to the financial statements, the financial statements were derived from the consolidated financial statements and accounting records of Madison Square Garden Entertainment Corp. These financial statements include transactions with related parties and allocations for certain support functions that are provided on a centralized basis, which may not be indicative of the conditions that would have existed, or actual expenses that would have been incurred by the Company, and may not reflect its combined results of operations, financial position and cash flows had it operated without such affiliations and had been a stand-alone company during the periods presented.

/s/ Deloitte & Touche LLP

New York, New York

January 13, 2023

We have served as the Company's auditor since 2022.

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

To the Stockholders and Board of Directors

MSGE Spinco, Inc.:

*Opinion on the Combined Financial Statements* 

We have audited the accompanying combined statements of operations, comprehensive income (loss), divisional equity (deficit) and cash flows of MSGE Spinco, Inc. and subsidiaries (the traditional live entertainment business of Madison Square Garden Entertainment Corp.) (the Company) for the year ended June 30, 2020 and the related notes (collectively, the combined financial statements). In our opinion, the combined financial statements present fairly, in all material respects, the results of operations of the Company and its cash flows for the year ended June 30, 2020, in conformity with U.S. generally accepted accounting principles.

*Basis for Opinion* 

These combined financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these combined financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the combined financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the combined financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the combined financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the combined financial statements. We believe that our audit provides a reasonable basis for our opinion.

/s/ KPMG LLP

We have served as the Company's auditor from 2022 to 2023.

New York, New York

January 13, 2023

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**MSGE SPINCO, INC.** 

**COMBINED BALANCE SHEETS** 

**(in thousands)** 

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| | | |
|:---|:---|:---|
|  | **June 30,** | **June 30,** |
|  | **2022** | **2021** |
|  **ASSETS** |  |  |
|  Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $58102 | $317819 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted cash | 4471 | 250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net | 102501 | 67806 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related party receivables, current | 96938 | 95442 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 79441 | 63504 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 341453 | 544821 |
|  Related party receivables, noncurrent |  | 66902 |
|  Property and equipment, net | 696079 | 742916 |
|  Right-of-use lease assets | 271154 | 95775 |
|  Amortizable intangible assets, net | 1638 | 7476 |
|  Indefinite-lived intangible assets | 63801 | 63801 |
|  Goodwill | 69041 | 69041 |
|  Other assets | 83535 | 106557 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $1526701 | $1697289 |
|  **LIABILITIES AND DIVISIONAL EQUITY (DEFICIT)** |  |  |
|  Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $11241 | $2465 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued and other current liabilities | 210720 | 123063 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related party payables, current | 72683 | 57788 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of long-term debt | 8762 | 6500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities, current | 39006 | 40926 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 202678 | 198505 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 545090 | 429247 |
|  Long-term debt, net of deferred financing costs | 654912 | 611285 |
|  Operating lease liabilities, non-current | 254114 | 77211 |
|  Deferred tax liabilities, net | 23253 | 23270 |
|  Other liabilities | 50921 | 57624 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 1528290 | 1198637 |
|  Commitments and contingencies (see Note 13) |  |  |
|  Spinco Divisional Equity (Deficit): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MSG Entertainment investment | 33265 | 529500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (34740) | (33598) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Spinco divisional equity (deficit) | (1475) | 495902 |
|  Nonredeemable noncontrolling interests | (114) | 2750 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and divisional equity (deficit) | $1526701 | $1697289 |

---

See accompanying notes to the combined financial statements.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**COMBINED STATEMENTS OF OPERATIONS** 

**(in thousands)** 

---

| | | | |
|:---|:---|:---|:---|
| | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** |
|  | **2022** | **2021** | **2020** |
|  Revenues *<sup>(a)</sup>* | $653490 | $81812 | $584601 |
|  Operating expenses: *<sup>(a)</sup>* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct operating expenses | 417301 | 96236 | 380526 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selling, general and administrative expenses | 167132 | 136597 | 137935 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 69534 | 71576 | 81591 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on disposal of assets held for sale and associated settlements |  |  | (240783) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring charges | 5171 | 14691 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating income (loss) | (5648) | (237288) | 225332 |
|  Other income (expense): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income *<sup>(a)</sup>* | 7150 | 6442 | 8805 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (53110) | (33735) | (425) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt | (35629) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other income (expense), net | (49033) | 50622 | 37129 |
|  | (130622) | 23329 | 45509 |
|  Income (loss) from operations before income taxes | (136270) | (213959) | 270841 |
|  Income tax (expense) benefit | 70 | (5349) | (100182) |
|  Net income (loss) | (136200) | (219308) | 170659 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Net loss attributable to nonredeemable noncontrolling interest | (2864) | (694) | (1071) |
|  Net income (loss) attributable to Spinco's stockholders | $(133336) | $(218614) | $171730 |

---

------

*<sup>(a)</sup>* *See Note 19, Related Party Transactions, for further information on related party arrangements* 

See accompanying notes to the combined financial statements.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**COMBINED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)** 

**(in thousands)** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** |
|  | **2022** | **2021** | **2020** |
|  Net income (loss) | $(136200) | $(219308) | $170659 |
|  Other comprehensive income (loss), before income taxes: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pension plans and postretirement plans: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unamortized losses arising during the period | (2805) | (5168) | (45) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of net actuarial loss included in net periodic benefit cost | 1420 | 1191 | 1342 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Curtailments |  | 156 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Settlement loss |  | 870 | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive income (loss), before income taxes | (1385) | (2951) | 1364 |
|  Income tax benefit (expense) related to items of other comprehensive income | 243 | 461 | (488) |
|  Other comprehensive income (loss), net of income taxes | (1142) | (2490) | 876 |
|  Comprehensive income (loss) | (137342) | (221798) | 171535 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Comprehensive loss attributable to nonredeemable noncontrolling interests | (2864) | (694) | (1071) |
|  Comprehensive income (loss) attributable to MSGE Spinco, Inc. | $(134478) | $(221104) | $172606 |

---

See accompanying notes to the combined financial statements.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**COMBINED STATEMENTS OF CASH FLOWS** 

**(in thousands)** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** |
|  | **2022** | **2021** | **2020** |
|  Cash flows from operating activities: |  |  |  |
|  Net income (loss) | $(136200) | $(219308) | $170659 |
|  Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 69534 | 71576 | 81591 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation expense | 39357 | 40663 | 26110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred financing costs | 6781 | 4315 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for deferred income taxes | 225 | 566 | 17429 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related party paid in kind interest | (3582) | (4952) | (1813) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized (gain) loss on equity investments with readily determinable fair value | 49842 | (53505) | (31277) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for doubtful accounts / credit losses | 166 | 887 | 3568 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of right-of-use assets | 11717 | 5460 | 6541 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of the Forum, excluding associated settlement |  |  | (100288) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on extinguishment of debt | 35629 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Write-off of deferred production costs |  | 942 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in assets and liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net | (34861) | (18819) | 8400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related party receivables, net of payables | 19535 | 24631 | (23626) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current and non-current assets | (42408) | (10838) | (37754) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 8776 | (6925) | (9298) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued and other current and non-current liabilities | 78780 | (2598) | (69000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 4173 | 19677 | (1250) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease right-of-use assets and lease liabilities | (12113) | 110 | (8464) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) operating activities | $95351 | $(148118) | $31528 |
|  Cash flows from investing activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital expenditures | (15797) | (10315) | (29644) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Purchase) / proceeds from sale of investments | (350) | 21976 | 25659 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from loan receivable | 68367 |  | 74852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loan to related parties | (6780) | (22000) | (5000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of Forum, excluding associated settlement |  |  | 210521 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) investing activities | $45440 | $(10339) | $276388 |

---

See accompanying notes to the combined financial statements.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**COMBINED STATEMENTS OF CASH FLOWS (Continued)** 

**(in thousands)** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** |
|  | **2022** | **2021** | **2020** |
|  Cash flows from financing activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from issuance of term loan, net of issuance discount | $650000 | $630500 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Principal repayments on long-term debt | (646750) | (3250) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from revolving credit facilities | 29100 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt extinguishment costs | (12838) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments for debt financing costs | (16060) | (14417) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net transfers (to)/from MSG Entertainment and MSG Entertainment's subsidiaries | (399739) | (139345) | (315379) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) financing activities | $(396287) | $473488 | $(315379) |
|  Net increase (decrease) in cash, cash equivalents and restricted cash | (255496) | 315031 | (7463) |
|  Cash, cash equivalents and restricted cash at beginning of period | 318069 | 3038 | 10501 |
|  Cash, cash equivalents and restricted cash at end of period | $62573 | $318069 | $3038 |
|  **Non-cash investing and financing activities:** |  |  |  |
|  Capital expenditures incurred but not yet paid | $1585 | $1083 | $2641 |
|  Non-cash reduction of loan receivable from related party | $4019 | $— | $— |

---

See accompanying notes to the combined financial statements.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**COMBINED STATEMENTS OF DIVISIONAL EQUITY (DEFICIT)** 

**(in thousands)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **MSG<br>Entertainment<br>Investment** | **Accumulated<br>Other<br>Comprehensive<br>Income (Loss)** | **Total Spinco<br>Divisional<br>Equity (Deficit)** | **Nonredeemable**<br>**Noncontrolling**<br>**Interests** | **Total<br>Divisional<br>Equity (Deficit)** |
|  **Balance as of June 30, 2019** | $**933401** | $**(33378)** | $**900023** | $**4515** | $**904538** |
|  Net income (loss) | 171730 |  | 171730 | (1071) | 170659 |
|  Other comprehensive income |  | 876 | 876 |  | 876 |
|  Comprehensive income (loss) |  |  | 172606 | (1071) | 171535 |
|  Adjustments related to the transfer of certain assets and liabilities due to the 2020 Entertainment Distribution |  | 1394 | 1394 |  | 1394 |
|  Net decrease in MSG Entertainment Investment | (258857) |  | (258857) |  | (258857) |
|  **Balance as of June 30, 2020** | $**846274** | $**(31108)** | $**815166** | $**3444** | $**818610** |
|  Net loss | (218614) |  | (218614) | (694) | (219308) |
|  Other comprehensive loss |  | (2490) | (2490) |  | (2490) |
|  Comprehensive loss |  |  | (221104) | (694) | (221798) |
|  Net decrease in MSG Entertainment Investment | (98160) |  | (98160) |  | (98160) |
|  **Balance as of June 30, 2021** | $**529500** | $**(33598)** | $**495902** | $**2750** | $**498652** |
|  Net loss | (133336) |  | (133336) | (2864) | (136200) |
|  Other comprehensive loss |  | (1142) | (1142) |  | (1142) |
|  Comprehensive loss |  |  | (134478) | (2864) | (137342) |
|  Net decrease in MSG Entertainment Investment | (362899) |  | (362899) |  | (362899) |
|  **Balance as of June 30, 2022** | $**33265** | $**(34740)** | $**(1475)** | $**(114)** | $**(1589)** |

---

See accompanying notes to the combined financial statements.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS** 

All amounts included in the following Notes to Combined Financial Statements are presented in thousands, except as otherwise noted.

**Note 1. Description of Business and Basis of Presentation** 

*The Proposed Distribution* 

On December 6, 2022, the board of directors of MSG Entertainment authorized MSG Entertainment management to explore a potential tax-free spin-off of the traditional live entertainment business from the MSG Sphere, MSG Networks, and Tao Group Hospitality businesses, and approved the filing of a Form 10 registration statement and amendments thereto.

MSGE Spinco, Inc. ("Spinco" or the "Company") was incorporated in the state of Delaware on September 15, 2022 to be the company to hold the traditional live entertainment business of MSG Entertainment. In the first step of the transaction, record holders of MSG Entertainment Class A and Class B common stock would receive a pro-rata distribution expected to be equivalent, in aggregate, to approximately 67% of the economic interest in the Company (the "Distribution"). The remaining approximately 33% economic interest in the Company would be retained by MSG Entertainment, subject to completion of the Distribution. Completion of the Distribution is subject to various conditions, including final approval by the board of directors of MSG Entertainment, receipt of a tax opinion from counsel and the filing and effectiveness of the registration statement with the SEC (defined below). References to "Spinco" or the "Company" include the subsidiaries of MSG Entertainment that will be subsidiaries of the Company at the time of the Distribution. MSG Entertainment will be required by applicable tax rules to dispose of the retained interest within a fixed period of time, which may occur through a series of steps including sales, exchange offers or pro rata distributions. MSG Entertainment expects to dispose of such retained interest within one year of the date of the Distribution, subject to market conditions.

*Description of Business* 

The Company is a live entertainment company, comprised of iconic venues, and marquee entertainment content. Utilizing the Company's powerful brands and live entertainment expertise, the Company delivers unique experiences that set the standard for excellence and innovation while forging deep connections with diverse and passionate audiences.

The Company is comprised of one reportable segment. The Company's decision to organize as one reportable segment is based upon the manner in which its operations are managed, and the criteria used by the Company's Executive Chairman and Chief Executive Officer, its Chief Operating Decision Maker ("CODM"), to evaluate segment performance. The Company's CODM reviews total company operating results to assess overall performance and allocate resources.

The Company's portfolio of venues includes: Madison Square Garden ("The Garden"), Hulu Theater at Madison Square Garden ("Hulu Theater"), Radio City Music Hall, the Beacon Theatre, and The Chicago Theatre. The Company also owns and produces the original production, the *Christmas Spectacular Starring the Radio City Rockettes* (the "*Christmas Spectacular*"). The Company also has a bookings business, which showcases a broad array of compelling concerts, family shows and special events, as well as a diverse mix of sporting events, for millions of guests annually.

The Company conducts a significant portion of its operations at venues that it either owns or operates under long-term leases. The Company owns The Garden, Hulu Theater and The Chicago Theatre, and leases Radio City Music Hall and the Beacon Theatre.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

All of the Company's revenues and assets are attributed to or located in the United States and are primarily concentrated in the New York City metropolitan area.

**Basis of Presentation** 

The Company reports on a fiscal year basis ending on June 30. In these combined financial statements, the fiscal years ended June 30, 2022, 2021 and 2020 are referred to as "Fiscal Year 2022," "Fiscal Year 2021," and "Fiscal Year 2020," respectively, and the fiscal year ending June 30, 2023 is referred to as "Fiscal Year 2023."

The combined financial statements of the Company (the "combined financial statements") were prepared on a stand-alone basis derived from the consolidated financial statements and accounting records of MSG Entertainment. These financial statements reflect the combined historical results of operations, financial position and cash flows of the Company in accordance with U.S. generally accepted accounting principles ("GAAP") and SEC Staff Accounting Bulletin (SAB) Topic 1-B, *Allocation of Expenses and Related Disclosure in Financial Statements of Subsidiaries, Divisions or Lesser Business Components of Another Entity*. References to U.S. GAAP issued by the Financial Accounting Standards Board ("FASB") in these footnotes are to the *FASB Accounting Standards Codification,* also referred to as "ASC."

Historically, separate financial statements have not been prepared for the Company and it has not operated as a stand-alone business from MSG Entertainment. The combined financial statements include certain assets and liabilities that have historically been held by MSG Entertainment or by other MSG Entertainment subsidiaries but are specifically identifiable or otherwise attributable to the Company. The combined financial statements are presented as if the Company's businesses had been combined for all periods presented. The assets and liabilities in the combined financial statements have been reflected on a historical cost basis, as immediately prior to the Distribution of all of the assets and liabilities presented are wholly owned by MSG Entertainment and are being transferred to the Company at a carry-over basis.

Fiscal Year 2020 includes additional carve-out allocations as the combined financial statements for the period from July 1, 2019 to April 17, 2020 were prepared on a stand alone basis derived from the consolidated financial statements and accounting records of Madison Square Garden Sports Corp. ("MSG Sports"). This was a result of a distribution of all the outstanding common stock of MSG Entertainment to MSG Sports stockholders on April 17, 2020 (referred herein as the "2020 Entertainment Distribution").

The combined statements of operations include allocations for certain support functions that are provided on a centralized basis and not historically recorded at the business unit level by MSG Entertainment and MSG Sports (for the period from July 1, 2019 to April 17, 2020), such as expenses related to executive management, finance, legal, human resources, government affairs, information technology, and venue operations, among others. As part of the Distribution, certain corporate and operational support functions are being transferred to the Company and therefore, charges were reflected in order to properly burden all business units comprising MSG Entertainment's historical operations. These expenses have been allocated to MSG Entertainment on the basis of direct usage when identifiable, with the remainder allocated on a pro rata basis of combined assets, headcount or other measures of the Company or MSG Entertainment, which are recorded as a reduction of either direct operating expenses or selling, general and administrative expense.

Management believes the assumptions underlying the combined financial statements, including the assumptions regarding allocating general corporate expenses, are reasonable. Nevertheless, the combined financial statements may not include all of the actual expenses that would have been incurred by the Company and may not reflect its combined results of operations, financial position and cash flows had it been a stand-alone company during the periods presented. Actual costs that would have been incurred if the Company had been a

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**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

stand-alone company would depend on multiple factors, including organizational structure and strategic decisions made in various areas, including information technology and infrastructure. The Company is unable to quantify the amounts that it would have recorded during the historical periods on a stand-alone basis as it is not practicable to do so. See Note 19, Related Party Transactions for more information regarding allocations of certain costs from the Company to MSG Entertainment.

MSG Entertainment uses a centralized approach to cash management and financing of operations. Cash is managed centrally with net earnings reinvested and working capital requirements met from existing liquid funds. The Company's cash in excess of minimum liquidity requirements under the credit facilities was available for use and was regularly "swept" historically. Cash and cash equivalents were attributed to the Company for each of the periods presented, as such cash was held in accounts legally owned by the Company. See Note 14, Credit Facilities for more information regarding the Company's debt facilities. Transfers of cash both to and from MSG Entertainment are included as components of MSG Entertainment investment on the combined statements of divisional equity (deficit).

MSG Entertainment's net investment in the Company has been presented as a component of divisional equity (deficit) in the combined financial statements. Distributions made by MSG Entertainment to the Company or to MSG Entertainment from the Company are recorded as transfers to and from MSG Entertainment, and the net amount is presented on the combined statements of cash flows as "Net transfers (to)/from MSG Entertainment and MSG Entertainment's subsidiaries."

**Impact of the COVID-19 Pandemic** 

The Company's operations and operating results have been materially impacted by the COVID-19 pandemic (including COVID-19 variants) and actions taken in response by governmental authorities and certain professional sports leagues during Fiscal Years 2020, 2021 and 2022. For the majority of Fiscal Year 2021, substantially all of our business operations were suspended. Fiscal Year 2022 was also impacted by the pandemic, with fewer ticketed events at our venues in the first half of the fiscal year as compared with Fiscal Year 2019 (the last full fiscal year not impacted by COVID-19) due to the lead-time required to book touring acts and artists, and an increase in COVID-19 cases due to a new variant, which resulted in a number of events at our venues being cancelled or postponed in the fiscal second and third quarters.

As a result of government-mandated assembly limitations and closures, all of our venues were closed beginning in March 2020. Use of The Garden resumed for Knicks and Rangers home games without fans in December 2020 and January 2021, respectively, and was available at 10% seating capacity from February through May 2021 subject to certain safety protocols and social distancing. Beginning in May 2021, all of our New York venues were permitted to host guests at full capacity, subject to certain restrictions, and effective June 2021, The Chicago Theatre was permitted to host events without restrictions. Guests of our Chicago and New York venues were also subject to certain vaccination requirements until February and March 2022, respectively. As a result, our venues no longer require guests to provide proof of COVID-19 vaccination before entering (although specific performers may require enhanced protocols).

For Fiscal Year 2021, the majority of ticketed events at our venues were postponed or cancelled. For Fiscal Year 2022 and as of the date of this filing, live events have been permitted to be held at all of our venues and we are continuing to host and book new events. As a result of an increase in cases of a COVID-19 variant, select bookings were postponed or cancelled at our venues in the second and third quarters of Fiscal Year 2022. Variants of COVID-19 that arise in the future may result in additional postponements or cancellations of bookings at our venues.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

The impact of the COVID-19 pandemic on our operations also included the partial cancellation of the 2021 production of the *Christmas Spectacular* and the cancellation of the 2020 production of the *Christmas Spectacular*.

The Company's long-term Arena License Agreements with MSG Sports require the Knicks and Rangers to play their home games at The Garden. As discussed above, capacity restrictions, use limitations and social distancing requirements were in place for the entirety of the Knicks and Rangers 2020-21 regular seasons, which materially impacted the payments we received under the Arena License Agreements for Fiscal Year 2021. On July 1, 2021, the Knicks and Rangers began paying the full amounts provided for under their respective Arena License Agreements. The Knicks and the Rangers each completed their 2021-2022 82-game regular seasons, with the Rangers advancing to the playoffs.

It is unclear to what extent COVID-19 concerns, including with respect to new variants, could result in new government or league-mandated capacity restrictions or vaccination/mask requirements or impact the use of and/or demand for our venues, demand for our sponsorship and advertising assets, deter our employees and vendors from working at our venues (which may lead to difficulties in staffing) or otherwise materially impact our operations.

**Note 2. Summary of Significant Accounting Policies** 

**A. Principles of Combination** 

All significant intracompany transactions and balances within the Company's combined businesses have been eliminated. Certain historical intercompany transactions between MSG Entertainment and the Company have been included as components of MSG Entertainment investment in the combined financial statements, as they are to be considered effectively settled upon effectiveness of the Distribution and were not historically settled in cash. Certain other historical intercompany transactions between MSG Entertainment and the Company have been classified as related party, rather than intercompany, in the combined financial statements as they were historically settled in cash. Expenses related to corporate allocations from the Company to MSG Entertainment prior to the Distribution, are considered to be effectively settled in the combined financial statements at the time the transaction is recorded, with the offset recorded against MSG Entertainment investment. See Note 19, Related Party Transactions, for further information on related party arrangements.

**B. Use of Estimates** 

The preparation of the accompanying combined financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the provision for credit losses, goodwill, intangible assets, other long-lived assets, deferred tax assets, pension and other postretirement benefit obligations and the related net periodic benefit cost, and other liabilities. In addition, estimates are used in revenue recognition, depreciation and amortization, litigation matters and other matters. Management believes its use of estimates in the financial statements to be reasonable.

Management evaluates its estimates on an ongoing basis using historical experience and other factors, including the general economic environment and actions it may take in the future. The Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management's best judgment at a point in time and, as such, these estimates may ultimately differ from actual results. Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company's control could be material and would be reflected in the Company's financial statements in future periods.

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**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

**C. Revenue Recognition** 

The Company recognizes revenue when, or as, performance obligations under the terms of a contract are satisfied, which generally occurs when, or as, control of promised goods or services is transferred to customers. Revenue is measured as the amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services ("transaction price"). To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing the most likely amount to which the Company expects to be entitled. Variable consideration is included in the transaction price if, in the Company's judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Estimates of variable consideration and the determination of whether to include such estimated amounts in the transaction price are based largely on an assessment of the Company's anticipated performance and all information that is reasonably available. The Company accounts for taxes collected from customers and remitted to governmental authorities on a net basis and excludes these amounts from revenues.

In addition, the Company defers certain costs to fulfill the Company's contracts with customers to the extent such costs relate directly to the contracts, are expected to generate resources that will be used to satisfy the Company's performance obligations under the contracts, and are expected to be recovered through revenue generated under the contracts. Contract fulfillment costs are expensed as the Company satisfies the related performance obligations.

*Arrangements with Multiple Performance Obligations* 

The Company enters into arrangements with multiple performance obligations, such as multi-year sponsorship agreements which may derive revenues for the Company, as well as MSG Entertainment and MSG Sports within a single arrangement. The Company also derives revenue from similar types of arrangements which are entered into by MSG Sports. Payment terms for such arrangements can vary by contract, but payments are generally due in installments throughout the contractual term. The performance obligations included in each sponsorship agreement vary and may include advertising and other benefits such as, but not limited to, signage at The Garden and the Company's other venues, digital advertising, event or property-specific advertising, as well as non-advertising benefits such as suite licenses and event tickets. To the extent the Company's multi-year arrangements provide for performance obligations that are consistent over the multi-year contractual term, such performance obligations generally meet the definition of a series as provided for under the accounting guidance. If performance obligations are concluded to meet the definition of a series, the contractual fees for all years during the contract term are aggregated and the related revenue is recognized proportionately as the underlying performance obligations are satisfied.

The timing of revenue recognition for each performance obligation is dependent upon the facts and circumstances surrounding the Company's satisfaction of its respective performance obligation. The Company allocates the transaction price for such arrangements to each performance obligation within the arrangement based on the estimated relative stand-alone selling price of the performance obligation. The Company's process for determining its estimated stand-alone selling prices involves management's judgment and considers multiple factors including company specific and market specific factors that may vary depending upon the unique facts and circumstances related to each performance obligation. Key factors considered by the Company in developing an estimated stand-alone selling price for its performance obligations include, but are not limited to, prices charged for similar performance obligations, the Company's ongoing pricing strategy and policies, and consideration of pricing of similar performance obligations sold in other arrangements with multiple performance obligations.

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**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

The Company may incur costs such as commissions to obtain its multi-year sponsorship agreements. The Company assesses such costs for capitalization on a contract by contract basis. To the extent costs are capitalized, the Company estimates the useful life of the related contract asset, which may be the underlying contract term or the estimated customer life depending on the facts and circumstances surrounding the contract. The contract asset is amortized over the estimated useful life.

*Principal versus Agent Revenue Recognition* 

The Company reports revenue on a gross or net basis based on management's assessment of whether the Company acts as a principal or agent in the transaction. The determination of whether the Company acts as a principal or an agent in a transaction is based on an evaluation of whether the Company controls the good or service before transfer to the customer. When the Company concludes that it controls the good or service before transfer to the customer, the Company is considered a principal in the transaction and records revenue on a gross basis. When the Company concludes that it does not control the good or service before transfer to the customer but arranges for another entity to provide the good or service, the Company acts as an agent and records revenue on a net basis in the amount it earns for its agency service.

*Contract Balances* 

Amounts collected in advance of the Company's satisfaction of its contractual performance obligations are recorded as a contract liability within deferred revenue, and are recognized as the Company satisfies the related performance obligations. Amounts collected in advance of events for which the Company is not the promoter or co-promoter do not represent contract liabilities and are recorded within accrued and other current liabilities on the accompanying combined balance sheets. Amounts recognized as revenue for which the Company has a right to consideration for goods or services transferred to customers and for which the Company does not have an unconditional right to bill as of the reporting date are recorded as contract assets. Contract assets are transferred to accounts receivable once the Company's right to consideration becomes unconditional.

**D. Direct Operating Expenses** 

Direct operating expenses include, but are not limited to, event costs related to the presentation and production of the Company's live entertainment and sporting events, revenue sharing expenses associated with signage, sponsorship and suite license fee revenue and in-venue food and beverage sales that are attributable to MSG Sports and venue lease, maintenance, and other operating expenses. In addition, for the period July 1, 2019 to April 17, 2020, the direct operating expenses also included revenue sharing expenses associated with the venue-related signage, sponsorship, and suite license fee revenues that are attributable to MSG Sports and an allocation of charges for venue usage to MSG Sports for hosting home games of the Knicks and the Rangers at The Garden.

*Production Costs for the Company's Original Productions* 

The Company defers certain costs of productions such as creative design, scenery, wardrobes, rehearsal and other related costs for the Company's proprietary shows. Deferred production costs are amortized on a straight-line basis over the course of a production's performance period using the expected life of a show's assets. Deferred production costs are subject to recoverability assessments whenever there is an indication of potential impairment.

*Allocation of Charges for Venue Usage to MSG Sports* 

For period prior to the 2020 Entertainment Distribution, the Company's combined financial statements included expenses associated with the ownership, maintenance, and operation of The Garden, which the

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**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

Company and MSG Sports use in their respective operations. The Knicks and Rangers are the primary recurring occupants of The Garden, playing their home games at The Garden. The number of home games increases if the Knicks and Rangers qualify for the playoffs. Historically, the Company did not charge rent expense to MSG Sports for use of The Garden. However, for purposes of the Company's combined financial statements, the Company allocated expenses to MSG Sports for the usage of The Garden, which were reported as a reduction of direct operating expense in the accompanying combined statements of operations. This allocation was based on a combination of event count and revenue, which the Company's management believes is a reasonable allocation methodology. The venue usage charge allocated to MSG Sports was $46,072 for the period of July 1, 2019 to April 17, 2020 in Fiscal Year 2020, prior to the 2020 Entertainment Distribution.

In connection with the 2020 Entertainment Distribution, the Company entered into Arena License Agreements with MSG Sports (see Note 10, Leases for further discussion). Fees recognized by the Company under the Arena License Agreements with MSG Sports for use of The Garden are reported as operating lease revenues in accordance with ASC Topic 842 — *Leases* ("ASC Topic 842").

*Revenue Sharing Expenses* 

As discussed above, prior to the 2020 Entertainment Distribution, MSG Sports' share of the Company's suites license, venue signage and sponsorship revenue, and in-venue food and beverage sales has been reflected within direct operating expense as revenue sharing expenses, where such amounts were either specifically identified where possible or allocated proportionally.

After the 2020 Entertainment Distribution, such revenue sharing expenses are determined based on contractual agreements between the Company and MSG Sports, primarily related to suite license, certain internal signage and in-venue food and beverage sales.

**E. Advertising Expenses** 

Advertising costs are typically charged to expense when incurred. Total advertising costs expensed were $7,995, $269 and $10,895 for Fiscal Years 2022, 2021 and 2020, respectively.

**F. Income Taxes** 

The Company accounts for income taxes in accordance with ASC Topic 740 — *Income Taxes* ("ASC Topic 740"). Income taxes as presented herein attribute current and deferred income taxes of MSG Entertainment to the Company's stand-alone financial statements in a manner that is systematic, rational, and consistent with the asset and liability method prescribed by ASC Topic 740.

Accordingly, the Company's income tax provision was prepared following the separate return method. The separate return method applies ASC Topic 740 to the stand-alone financial statements of each member of the combined group as if the group member were a separate taxpayer and the benefits of a consolidated return have been reflected where such returns have or could be filed based on the entities' jurisdictions included in the combined financial statements. As a result, actual tax transactions included in the consolidated financial statements of MSG Entertainment may not be included in the combined financial statements.

Similarly, the tax treatment of certain items reflected in the combined financial statements may not be reflected in the consolidated financial statements and tax returns of MSG Entertainment. Therefore, portions of items such as net operating losses ("NOLs"), tax credit carryforwards, other deferred taxes, and valuation allowances may exist in the combined financial statements that may or may not exist in MSG Entertainment's consolidated financial statements and vice versa.

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**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

In addition, although deferred tax assets have been recognized for NOLs and tax credits in accordance with the separate return method, such NOLs and credits will not carry over with the Company in connection with the Distribution.

**G. Share-based Compensation** 

Certain employees of the Company have historically participated in share-based compensation plans of MSG Entertainment. Share-based compensation expense has been attributed to the Company based on the awards and terms previously granted to MSG Entertainment's employees. For purposes of the combined financial statements, an allocation to MSG Entertainment of share-based compensation expense related to corporate employees was recorded in addition to the expense attributed to the Company's direct employees. Share-based compensation expense related to directors and corporate executives of MSG Entertainment has been allocated on a proportional basis, which management has deemed to be reasonable.

Following the 2020 Entertainment Distribution, the Company measures the cost of employee services received in exchange for an award of equity-based instruments based on the grant date fair value of the award. Share-based compensation cost is recognized in earnings over the period during which an employee is required to provide service in exchange for the award, except for restricted stock units granted to non-employee directors which, unless otherwise provided under the applicable award agreement, are fully vested, and are expensed at the grant date.

The Company accounts for forfeitures as they occur, rather than estimating expected forfeitures.

**H. Cash and Cash Equivalents** 

The Company considers the balance of its investment in funds that substantially hold highly liquid securities that mature within three months or less from the date the fund purchases these securities to be cash equivalents. The carrying amount of cash and cash equivalents either approximates fair value due to the short-term maturity of these instruments or is at fair value. Checks outstanding in excess of related book balances are included in accounts payable in the accompanying combined balance sheets. The Company presents the change in these book cash overdrafts as cash flows from operating activities.

**I. Restricted Cash** 

The Company's restricted cash includes cash deposited in escrow accounts. The Company has deposited cash in an interest-bearing escrow account related to credit support, debt facilities, and collateral to its workers compensation and general liability insurance obligations.

The carrying amount of restricted cash approximates fair value due to the short-term maturity of these instruments.

**J. Short-Term Investments** 

Short-term investments include investments that (i) have original maturities of greater than three months and (ii) the Company has the ability to convert into cash within one year. The Company classifies its short-term investments at the time of purchase as "held-to-maturity" and re-evaluates its classification quarterly based on whether the Company has the intent and ability to hold until maturity. Short-term investments, which are recorded at cost and adjusted for accrued interest, approximate fair value. Cash inflows and outflows related to the sale and purchase of short-term investments are classified as investing activities in the Company's combined statements of cash flows.

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**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

**K. Accounts Receivable** 

Accounts receivable are recorded at net realizable value. The Company maintains an allowance for credit losses to reserve for potentially uncollectible receivables. The allowance for credit losses is estimated based on the Company's consideration of credit risk and analysis of receivables aging, specific identification of certain receivables that are at risk of not being paid, past collection experience and other factors.

**L. Investments in Equity Securities** 

For the Company's equity investments with readily determinable fair values, changes in the fair value of those investments are measured monthly and are recorded within Other income (expense), net in the accompanying combined statements of operations.

**M. Property and Equipment and Other Long-Lived Assets** 

Property and equipment and other long-lived assets, including amortizable intangible assets, are stated at cost or acquisition date fair value, if acquired. Expenditures for new facilities or equipment, and expenditures that extend the useful lives of existing facilities or equipment, are capitalized and recorded at cost. The useful lives of the Company's long-lived assets are based on estimates of the period over which the Company expects the assets to be of economic benefit to the Company. In estimating the useful lives, the Company considers factors such as, but not limited to, risk of obsolescence, anticipated use, plans of the Company, and applicable laws and permit requirements. Depreciation starts on the date when the asset is available for its intended use. Construction in progress assets are not depreciated until available for their intended use. Costs of maintenance and repairs are expensed as incurred.

The major categories of property and equipment are depreciated on a straight-line basis using the estimated lives indicated below:

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| | |
|:---|:---|
|  | **Estimated Useful Lives** |
|  Buildings | Up to 40 years |
|  Equipment | 1 year to 20 years |
|  Aircraft | 20 years |
|  Furniture and fixtures | 1 year to 10 years |
|  Leasehold improvements | Shorter of term of lease or useful life of improvement |

---

Intangible assets with finite lives are amortized principally using the straight-line method over the following estimated useful lives:

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| | |
|:---|:---|
|  | **Estimated Useful Lives** |
|  Trade names | 7 years |
|  Festival rights | 7 years |
|  Other intangibles | 15 years |

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**N. Goodwill and Indefinite-Lived Assets** 

Under the acquisition method of accounting, the Company recognizes separately from goodwill the identifiable assets acquired, the liabilities assumed, and any noncontrolling interests in an acquiree, generally at the acquisition date fair value. The Company measures goodwill as of the acquisition date as the excess of consideration transferred, which is also measured at fair value over the net of the acquisition date amounts of the

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**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

identifiable assets acquired and liabilities assumed. Costs that the Company incurs to complete a business combination such as investment banking, legal, and other professional fees are not considered part of consideration and the Company charges these costs to selling, general and administrative expense as they are incurred. In addition, the Company recognizes measurement-period adjustments in the period in which the amount is determined, including the effect on earnings of any amounts the Company would have recorded in previous periods if the accounting had been completed at the acquisition date. Goodwill and identifiable intangible assets that have indefinite useful lives are not amortized.

**O. Impairment of Long-Lived and Indefinite-Lived Assets** 

In assessing the recoverability of the Company's long-lived and indefinite-lived assets, the Company must make estimates and assumptions regarding future cash flows and other factors to determine the fair value of the respective assets. These estimates and assumptions could have a significant impact on whether an impairment charge is recognized and the magnitude of any such charge. Fair value estimates are made based on relevant information at a specific point in time, and are subjective in nature and involve significant uncertainties and judgments. If these estimates or assumptions change materially, the Company may be required to record impairment charges related to its long-lived and/or indefinite-lived assets.

Goodwill is tested annually for impairment as of August 31<sup>st</sup> and at any time upon the occurrence of certain events or changes in circumstances. The Company has the option to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred. If the Company can support the conclusion that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company would not need to perform a quantitative impairment test for that reporting unit. If the Company cannot support such a conclusion or the Company does not elect to perform the qualitative assessment, the Company would identify potential impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill. The Company generally determines the fair value of a reporting unit using an income approach, such as the discounted cash flow method, or other acceptable valuation techniques, including the cost approach, in instances when it does not perform the qualitative assessment of goodwill. The amount of an impairment loss is measured as the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill.

Identifiable indefinite-lived intangible assets are tested annually for impairment as of August 31<sup>st</sup> and at any time upon the occurrence of certain events or substantive changes in circumstances. The Company has the option to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred. In the qualitative assessment, the Company must evaluate the totality of qualitative factors, including any recent fair value measurements, that impact whether an indefinite-lived intangible asset other than goodwill has a carrying amount that more likely than not exceeds its fair value. The Company must proceed to conducting a quantitative analysis if the Company (i) determines that such an impairment is more likely than not to exist, or (ii) foregoes the qualitative assessment entirely. Under the quantitative assessment, the impairment test for identifiable indefinite-lived intangible assets consists of a comparison of the estimated fair value of the intangible asset with its carrying value. If the carrying value of the intangible asset exceeds its fair value, then an impairment loss is recognized in an amount equal to that excess. The Company generally determines the fair value of an indefinite-lived intangible asset using an income approach, such as the relief from royalty method, in instances when it does not perform the qualitative assessment of the intangible asset.

For other long-lived assets, including property and equipment, right-of-use lease assets ("ROU") and intangible assets that are amortized, the Company evaluates assets for recoverability when there is an indication of potential impairment. If the undiscounted cash flows from a group of assets being evaluated is less than the carrying value of that group of assets, the fair value of the asset group is determined and the carrying value of the

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**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

asset group is written down to fair value. The Company generally determines the fair value of a finite-lived intangible asset using an income approach, such as the discounted cash flow method.

See Note 11, Goodwill and Intangible Assets for further discussion of impairment of goodwill and long-lived assets.

**P. Leases** 

The Company's leases primarily consist of certain venues, corporate office space, storage and, to a lesser extent, office and other equipment. The Company determines whether an arrangement contains a lease at the inception of the arrangement. If a lease is determined to exist, the lease term is assessed based on the date when the underlying asset is made available by the lessor for the Company's use. The Company's assessment of the lease term reflects the non-cancellable term of the lease, inclusive of any rent-free periods and/or periods covered by early-termination options which the Company is reasonably certain not to exercise, as well as periods covered by renewal options which the Company is reasonably certain to exercise. The Company's lease agreements do not contain material residual value guarantees or material restrictive covenants.

The Company determines lease classification as either operating or finance at lease commencement, which governs the pattern of expense recognition and the presentation reflected in the combined statements of operations and statements of cash flows over the lease term.

For leases with a term exceeding 12 months, a lease liability is recorded on the Company's combined balance sheets at lease commencement reflecting the present value of the fixed minimum payment obligations over the lease term. A corresponding ROU asset equal to the initial lease liability is also recorded, adjusted for any prepaid rent and/or initial direct costs incurred in connection with execution of the lease and reduced by any lease incentives received. In addition, the ROU asset is adjusted to reflect any above or below market lease terms under acquired lease contracts.

The Company includes fixed payment obligations related to non-lease components in the measurement of ROU assets and lease liabilities, as the Company has elected to account for lease and non-lease components together as a single lease component. ROU assets associated with finance leases are presented separate from ROU assets associated with operating leases and are included within Property and equipment, net on the Company's combined balance sheets. For purposes of measuring the present value of the Company's fixed payment obligations for a given lease, the Company uses its incremental borrowing rate, determined based on information available at lease commencement, as rates implicit in the underlying leasing arrangements are typically not readily determinable. The Company's incremental borrowing rate reflects the rate it would pay to borrow on a secured basis and incorporates the term and economic environment surrounding the associated lease.

For operating leases, fixed lease payments are recognized as lease expense on a straight-line basis over the lease term. For finance leases, the initial ROU asset is depreciated on a straight-line basis over the lease term, along with recognition of interest expense associated with accretion of the lease liability, which is ultimately reduced by the related fixed payments. For leases with a term of 12 months or less ("short-term leases"), any fixed lease payments are recognized on a straight-line basis over the lease term and are not recognized on the combined balance sheets. Variable lease costs for both operating and finance leases, if any, are recognized as incurred and such costs are excluded from lease balances recorded on the combined balance sheets.

**Q. Contingencies** 

Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.

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**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

**R. Defined Benefit Pension Plans and Other Postretirement Benefit Plans** 

As more fully described in Note 15, Pension Plans and Other Postretirement Benefit Plans certain employees of the Company participate in defined benefit pension plans ("Shared Plans") sponsored by MSG Entertainment, which also have historically included participants of MSG Sports and MSG Entertainment. The Company accounts for the Shared Plans under the guidance of ASC Topic 715 *— Compensation — Retirement Benefits* ("ASC Topic 715"). Accordingly, for the Shared Plans' liabilities, the combined financial statements reflected the full impact of such plans on both the combined statements of operations and combined balance sheets and the Company recorded an asset or liability to recognize the funded status of the Shared Plans (other than multiemployer plans), as well as a liability only for any required contributions to the Shared Plans that were accrued and unpaid at the balance sheet date. The related pension expenses attributed to the Company were based primarily on pension-eligible compensation of active participants. The pension expense related to employees of MSG Entertainment or MSG Sports participating in any of the Shared Plans is reflected as a contributory credit from the Company to MSG Entertainment, resulting in a decrease to the expense recognized in the combined statements of operations.

The plan that was sponsored by MSG Entertainment and only included participants of the Company and not of MSG Sports and MSG Entertainment ("Direct Plan") was accounted for as a defined benefit pension plan. Accordingly, the funded and unfunded position of the Direct Plan was recorded in the Company's combined balance sheets, as well as all costs related to the Direct Plan which are recorded in the combined statements of operations.

Actuarial gains and losses that have not yet been recognized through the combined statements of operations are recorded in accumulated other comprehensive income (loss) until they are amortized as a component of net periodic benefit cost through other comprehensive income (loss).

**S. Fair Value Measurements** 

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity's pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels:

• Level I — Quoted prices for identical instruments in active markets.

• Level II — Quoted prices for similar instruments in active markets; quoted prices for identical or similar
instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

• Level III — Instruments whose significant value drivers are unobservable.

**T. Concentrations of Risk** 

Financial instruments that may potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable. Cash and cash equivalents are invested in money market accounts and time deposits. The Company monitors the financial institutions and money market funds where it invests its cash and cash equivalents with diversification among counterparties to mitigate exposure to any single financial institution. The Company's emphasis is primarily on safety of principal and liquidity, and secondarily on maximizing the yield on its investments.

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**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

**U. Recently Adopted Accounting Pronouncements** 

*Recently Adopted Accounting Pronouncements* 

In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-12, *Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes*. This ASU eliminates certain exceptions to the general approach in ASC Topic 740 and includes methods of simplification to the existing guidance. This standard was adopted by the Company in the first quarter of Fiscal Year 2022. The adoption of this standard had no impact on the Company's combined financial statements.

In March 2020, the FASB issued ASU 2020-04, *Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting*. This ASU provides temporary optional expedients and exceptions to the guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate and other interbank offered rates to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, which refines the scope of Topic 848 and clarifies some of its guidance as part of the FASB's monitoring of global reference rate activities. The new guidance was effective upon issuance, and the Company is allowed to elect to apply the amendments prospectively through December 31, 2022. The Company adopted ASU 2020-04 in Fiscal Year 2022. The adoption did not have a material impact on the Company's combined financial statements.

**Note 3. Business Disposition** 

*Disposition of The Forum* 

Prior to May 1, 2020, the Company owned the Forum in Inglewood, CA. On March 24, 2020, the Company entered into a Membership Interest Purchase Agreement pursuant to which the Company agreed to sell the Forum and settle related litigation for cash consideration in the amount of $400,000, subject to regulatory and other customary closing conditions. The transaction subsequently closed on May 1, 2020, resulting in a total gain on sale of $240,783, net of transaction costs of $50,806 during Fiscal Year 2020, of which $140,495 was attributable to the settlement of the related litigation. The transaction costs included a fee of $48,742 to The Azoff Company Holdings ("Azoff Music") in connection with an agreement made by MSG Sports when the remaining 50% interest of Azoff Music was sold on December 5, 2018.

The Forum met the definition of a business under SEC Regulation S-X Rule 11-01(d)-1 and ASC Topic 805 — *Business Combinations*. This disposition did not represent a strategic shift with a major effect on the Company's operations, and as such, has not been reflected as a discontinued operation under ASC Subtopic 205-20 — *Discontinued Operations.*

**Note 4. Revenue Recognition** 

For Fiscal Years 2022, 2021 and 2020, all revenue recognized in the combined statements of operations is considered to be revenue from contracts with customers in accordance with ASC Topic 606 *— Revenue from Contracts with Customers* ("ASC Topic 606"), except for revenues from Arena License Agreements. In Fiscal Years 2022 and 2021, the Company did not have any material provisions for credit losses on receivables or contract assets arising from contracts with customers.

*Arena License Agreements* 

In connection with the 2020 Entertainment Distribution, the Company entered into Arena License Agreements with MSG Sports that require the Knicks and the Rangers to play their home games at The Garden. These agreements also provide for the provision of certain services by the Company to MSG Sports for MSG

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**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

Sports events that are held at The Garden and include revenue-sharing provisions for certain agreements entered into by the Company and MSG Sports. The Arena License Agreements contain both lease and non-lease components. The revenue to be recognized with respect to the lease components of the Arena License Agreements is accounted for as operating lease revenue in accordance with ASC Topic 842. The non-lease components are accounted for in accordance with ASC Topic 606, as further discussed below.

During Fiscal Years 2022 and 2021, the Company recognized $68,072 and $21,345, respectively, of revenues under the Arena License Agreements. With The Garden closed by government mandate, the Company did not recognize operating lease revenue under the Arena License Agreements in Fiscal Year 2020.

*Principal vs. Agent Considerations* 

Revenue for the Company's suite license arrangements is recorded on a gross basis, as the Company is the principal in such transactions and controls the related goods or services before transfer to the customer. MSG Sports is entitled to a share of the Company's suite license revenue pursuant to the terms of the Arena License Agreements, which is recognized in the combined statements of operations as a component of direct operating expenses.

For sponsorship agreements entered into by the Company or by MSG Sports that contain performance obligations satisfied solely by the Company, revenue is generally recorded on a gross basis as the Company is the principal with respect to such performance obligations and controls the related goods or services before transfer to the customer. In accordance with the Arena License Agreements, MSG Sports is entitled to a share of the revenue generated from certain signage performance obligations where the Company is the principal. The Company records this signage revenue on a gross basis and MSG Sports' share of such revenue as a component of direct operating expenses within the combined statements of operations.

For Fiscal Years 2022, 2021 and 2020, the Company recorded revenue-sharing expense of $92,086, $558 and $110,002, respectively, for MSG Sports' share of the Company's revenues from (i) suite licenses, (ii) certain signage and sponsorships, and (iii) food and beverage based upon the provisions of the underlying contractual arrangements for the period subsequent to the 2020 Entertainment Distribution, and on the basis of direct usage when specifically identified or allocated proportionally for all prior periods.

In connection with the 2020 Entertainment Distribution, the Company entered into advertising sales representation agreements with certain subsidiaries of MSG Sports. Pursuant to these agreements, the Company has the exclusive right and obligation to sell sponsorship assets on behalf of the respective subsidiaries of MSG Sports. The Company is entitled to both fixed and variable commissions under the terms of these agreements. The Company recognizes the fixed component ratably over the term of the arrangement which corresponds with the Company's satisfaction of its service-based performance obligations. Variable commissions are earned and recognized as the related sponsorship performance obligations are satisfied by MSG Sports. The Company is not the principal in such arrangements as it does not control the related goods or services prior to transfer to the customer. As an agent under these arrangements, the Company recognizes the advertising commission revenue on a net basis.

The Company is also party to an advertising sales representation agreement with MSG Networks. Pursuant to this agreement, the Company has the exclusive right and obligation to sell advertising on behalf of MSG Networks and is entitled to and earns commission revenue as the advertisements are aired on MSG Networks. Since the Company acts as an agent, the Company recognizes the advertising commission revenue on a net basis. See Note 19, Related Party Transactions for more information regarding the advertising sales representation agreements with subsidiaries of MSG Sports and MSG Networks.

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**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

*Event Related Revenue* 

The Company earns event related revenues principally from the sale of tickets for events that the Company produces or promotes/co-promotes, and from venue license fees charged to third-party promoters for events held at the Company's venues that the Company does not produce or promote/co-promote. The Company's performance obligations with respect to event-related revenues from the sale of tickets, venue license fees from third-party promoters, sponsorships, concessions and merchandise are satisfied at the point of sale or as the related event occurs. As a result of the agreements entered into in connection with the 2020 Entertainment Distribution, the Company also earns revenue from the provision of various event-related services that are incremental to MSG Sports' general use of The Garden. The Company's performance obligations with respect to these event-related services are satisfied as the related event occurs.

The Company's revenues also include revenue from the license of The Garden's suites for the Company's or MSG Sports' events. Suite license arrangements are generally multi-year fixed-fee arrangements that include annual fee increases. Payment terms for suite license arrangements can vary by contract, but payments are generally due in installments prior to each license year. The Company's performance obligation under such arrangements is to provide the licensee with access to the suite when events occur at The Garden. The Company accounts for the performance obligation under these types of arrangements as a series and, as a result, the related suite license fees for all years during the license term are aggregated and revenue is recognized proportionately over the license period as the Company satisfies the related performance obligation. Progress toward satisfaction of the Company's annual suite license performance obligation is measured as access to the suite that is provided to the licensee for each event throughout the contractual term of the license.

*Other Revenue* 

The Company also earns revenues from the sale of advertising in the form of venue signage and other forms of sponsorship, which are not related to any specific event of the Company or MSG Sports. The Company's performance obligations with respect to this advertising are satisfied as the related benefits are delivered over the term of the respective agreements.

**Disaggregation of Revenue** 

The following table disaggregates the Company's revenue by major source based upon the timing of transfer of goods or services to the customer for Fiscal Years 2022, 2021 and 2020:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** |
|  Event-related and entertainment offerings *<sup>(a)</sup>* | $386309 | $14062 | $390691 |
|  Sponsorship, signage and suite licenses *<sup>(b)</sup>* | 156387 | 15897 | 177209 |
|  Other *<sup>(c)</sup>* | 39384 | 27528 | 16701 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenues from contracts with customers | 582080 | 57487 | 584601 |
|  Revenues from Arena License Agreements, leases and subleases | 71410 | 24325 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenues | $653490 | $81812 | $584601 |

---

------

*<sup>(a)</sup>* *Event-related and entertainment offerings revenues are recognized at a point in time.* 

*<sup>(b)</sup>* *See Note 2, Summary of Significant Accounting Policies, Revenue Recognition, and the discussion above within this Note for further details on the pattern of recognition of sponsorship, signage, and suite license revenues.* 

*<sup>(c)</sup>* *Primarily consists of (i) revenues from sponsorship sales and representation agreements with MSG Sports, and (ii) advertising commission revenues recognized from MSG Networks.* 

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

In addition to the disaggregation of the Company's revenue by major source based upon the timing of transfer of goods or services to the customer disclosed above, the following table disaggregates the Company's combined revenues by type of goods or services in accordance with the required entity-wide disclosure requirements of ASC Subtopic 280-10-50-38 to 40 and the disaggregation of revenue required disclosures in accordance with ASC Subtopic 606-10-50-5 for Fiscal Years 2022, 2021 and 2020.

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** |
|  Ticketing and venue license fee revenues *<sup>(a)</sup>* | $250092 | $8311 | $310971 |
|  Sponsorship and signage, suite, and advertising commission revenues <sup>*(b)*</sup> | 219113 | 43312 | 200503 |
|  Food, beverage and merchandise revenues | 109915 | 3078 | 62341 |
|  Other | 2960 | 2786 | 10786 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenues from contracts with customers | 582080 | 57487 | 584601 |
|  Revenues from Arena License Agreements, leases and subleases | 71410 | 24325 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenues | $653490 | $81812 | $584601 |

---

------

*<sup>(a)</sup>* *Amounts include ticket sales, including other ticket-related revenue, and venue license fees from the Company's events such as (i) concerts, (ii) the presentation of the Christmas Spectacular, and (iii) live entertainment and other sporting events.* 

*<sup>(b)</sup>* *Amounts include (i) revenues from sponsorship sales and representation agreements with MSG Sports and (ii) advertising commission revenues recognized from MSG Networks.* 

***Contract Balances***

The following table provides information about the opening and closing contract balances from the Company's contracts with customers as of June 30, 2022, 2021 and 2020.

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30,** | **June 30,** | **June 30,** |
|  | **2022** | **2021** | **2020** |
|  Receivables from contracts with customers, net *<sup>(a)</sup>* | $106664 | $72978 | $52839 |
|  Contract assets, current *<sup>(b)</sup>* | 5503 | 7052 | 3850 |
|  Deferred revenue, including non-current portion *<sup>(c)</sup>* | 203256 | 199041 | 182632 |

---

------

*<sup>(a)</sup>* *As of June 30, 2022, 2021 and 2020, the Company's receivables from contracts with customers above included $4,163, $5,172 and $2,966, respectively, related to various related parties. See Note 19, Related Party Transactions for further details on these related party arrangements.* 

*<sup>(b)</sup>* *Contract assets primarily relate to the Company's rights to consideration for goods or services transferred to customers, for which the Company does not have an unconditional right to bill as of the reporting date. Contract assets are transferred to accounts receivable once the Company's right to consideration becomes unconditional.* 

*<sup>(c)</sup>* *Revenue recognized for Fiscal Year 2022 relating to the deferred revenue balance as of June 30, 2021 was $143,422.* 

***Transaction Price Allocated to the Remaining Performance Obligations***

The following table depicts the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2022. This primarily relates to performance obligations under sponsorship and suite license agreements that have original expected durations

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

longer than one year and for which the considerations are not variable. In developing the estimated revenue, the Company applies the allowable practical expedient and does not disclose information about remaining performance obligations that have original expected durations of one year or less.

---

| | |
|:---|:---|
|  Fiscal year ending June 30, 2023 | $148830.0 |
|  Fiscal year ending June 30, 2024 | 124971.0 |
|  Fiscal year ending June 30, 2025 | 91400.0 |
|  Fiscal year ending June 30, 2026 | 68700.0 |
|  Fiscal year ending June 30, 2027 | 41023.0 |
|  Thereafter | 48947.0 |
|  | $523871.0 |

---

**Note 5. Restructuring Charges** 

For Fiscal Year 2022, MSG Entertainment underwent organizational changes to further streamline operations. These measures included termination of certain executive and management level functions. During Fiscal Year 2022, the Company recorded $5,171 for restructuring charges related to the termination benefits provided to employees and executives, inclusive of $1,612 of share-based compensation expenses for the acceleration of stock award vesting, which is reflected in divisional equity (deficit). As of June 30, 2022, the Company had accrued severance of $3,210, which is expected to be paid by the end of Fiscal Year 2023.

During Fiscal Year 2021, the Company recorded $14,691 of restructuring charges, primarily related to termination benefits provided to employees, of which all amounts have been paid as of June 30, 2022. These measures included reductions in full-time workforce in August 2020 and November 2020.

Such costs are reflected in restructuring charges in the accompanying combined statements of operations for Fiscal Years 2022 and 2021.

**Note 6. Cash, Cash Equivalents and Restricted Cash** 

The following table provides a summary of the amounts recorded as cash and cash equivalents, and restricted cash:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **June 30,<br>2022** | **June 30,<br>2021** |
|  Captions on the combined balance sheets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $58102 | $317819 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted cash | 4471 | 250 |
|  Cash and cash equivalents, and restricted cash on the combined statements of cash flows | $62573 | $318069 |

---

The Company's cash equivalents consist of money market accounts and time deposits of $50,527 and $250,116 for Fiscal Years 2022 and 2021, respectively. Cash equivalents are measured at fair value within Level I of the fair value hierarchy on a recurring basis using observable inputs that reflect quoted prices for identical assets in active markets.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

**Note 7. Prepaid Expenses and Other Current Assets** 

Prepaid expenses and other current assets consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **June 30,<br>2022** | **June 30,<br>2021** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid insurance | $6896 | $5411 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid revenue sharing expense | 43291 | 32661 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other prepaid expenses | 14878 | 8497 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred production costs — *Christmas Spectacular* and other productions | 3801 | 4090 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventory *<sup>(a)</sup>* | 2752 | 2233 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract assets *<sup>(b)</sup>* | 5503 | 7052 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 2320 | 3560 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total prepaid expenses and other current assets | $79441 | $63504 |

---

------

*<sup>(a)</sup>* *Inventory is primarily comprised of food and liquor for venues.* 

*<sup>(b)</sup>* *See Note 4, Revenue Recognition for more information on contract assets.* 

**Note 8. Equity Investments With Readily Determinable Fair Values** 

As of June 30, 2022*,* the Company held investments of (i) 583 shares of the Class A common stock of Townsquare Media, Inc. ("Townsquare"), (ii) 2,625 shares of the Class C common stock of Townsquare, and (iii) 869 shares of Class A common stock of DraftKings Inc. ("DraftKings"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Townsquare is a community-focused digital media, digital marketing solutions and radio company that has its
Class A common stock listed on the New York Stock Exchange ("NYSE") under the symbol "TSQ".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• DraftKings is a digital sports entertainment and gaming company that is listed on the NASDAQ Stock Market
("NASDAQ") under the symbol "DKNG".

The fair value of the Company's investments in Class A common stock of Townsquare and Class A common stock of DraftKings is determined based on quoted market prices in active markets on the NYSE and NASDAQ, respectively, which are classified within Level I of the fair value hierarchy. As a holder of Class C common stock of Townsquare, the Company is entitled to convert at any time all or any part of the Company's shares into an equal number of shares of Class A common stock of Townsquare, subject to restrictions set forth in Townsquare's certificate of incorporation. Therefore, the fair value of the Company's investment in Class C common stock of Townsquare is also determined based on the quoted market price in an active market on the NYSE, which is classified within Level I of the fair value hierarchy.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

The cost basis and the carrying fair value of these investments, which are reported under Other assets in the accompanying combined balance sheets as of June 30, 2022 and 2021, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Balance as of June 30, 2022** | **Balance as of June 30, 2022** | **Balance as of June 30, 2022** |
| **Equity Investment with Readily Determinable Fair Value** | **Shares**<br>**Held** | **Cost**<br>**Basis** | **Carrying**<br>**Value**<br>**/ Fair**<br>**Value** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Townsquare Class A common stock | 583 | $4221 | $4776 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Townsquare Class C common stock | 2625 | 19001 | 21499 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; DraftKings Class A common stock | 869 | 6036 | 10146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  | $29258 | $36421 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Balance as of June 30, 2021** | **Balance as of June 30, 2021** | **Balance as of June 30, 2021** |
| **Equity Investment with Readily Determinable Fair Value** | **Shares**<br>**Held** | **Cost**<br>**Basis** | **Carrying**<br>**Value**<br>**/ Fair**<br>**Value** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Townsquare Class A common stock | 583 | $4221 | $7435 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Townsquare Class C common stock | 2625 | 19001 | 33469 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; DraftKings Class A common stock | 869 | 6036 | 45360 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  | $29258 | $86264 |

---

The following table summarizes the realized and unrealized gain (loss) on equity investments with readily determinable fair value for Fiscal Years 2022, 2021 and 2020:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30,** | **June 30,** | **June 30,** |
|  | **2022** | **2021** | **2020** |
|  Unrealized gain (loss) — Townsquare | $(14629) | $26563 | $(2920) |
|  Unrealized gain (loss) — DraftKings | (35213) | 26942 | 34197 |
|  Realized gain (loss) — DraftKings |  | (2327) | 6351 |
|  | $(49842) | $51178 | $37628 |
|  Supplemental information on realized gain (loss): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares of common stock sold — DraftKings |  | 420 | 197 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash proceeds from common stock sold — DraftKings | $— | $22079 | $7659 |

---

The realized and unrealized gains and losses on investments discussed above are reported under Other income (expense), net in the accompanying combined statements of operations.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

**Note 9. Property and Equipment, Net** 

As of June 30, 2022 and 2021, property and equipment, net consisted of the following assets:

---

| | | |
|:---|:---|:---|
|  | **June 30,** | **June 30,** |
|  | **2022** | **2021** |
|  Land | $62768 | $62768 |
|  Buildings | 995965 | 995019 |
|  Equipment | 323741 | 311848 |
|  Aircraft | 38090 | 38090 |
|  Furniture and fixtures | 28976 | 28718 |
|  Leasehold improvements | 105877 | 106444 |
|  Construction in progress | 3139 | 3211 |
|  | 1558556 | 1546098 |
|  Less accumulated depreciation and amortization | (862477) | (803182) |
|  | $696079 | $742916 |

---

Depreciation expense on property and equipment was $63,696, $70,588 and $80,603 for Fiscal Years 2022, 2021 and 2020, respectively.

**Note 10. Leases** 

The following table summarizes the ROU assets and lease liabilities recorded on the Company's combined balance sheets as of June 30, 2022 and 2021:

---

| | | | |
|:---|:---|:---|:---|
|  | **Line Item in the Company's Combined<br>Balance Sheets** | **June 30, 2022** | **June 30, 2021** |
|  Right-of-use assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating leases | Right-of-use lease assets | $271154 | $95775 |
|  Lease liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating leases, current | Operating lease liabilities, current | (39006) | (40926) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating leases, noncurrent | Operating lease liabilities, non-current | (254114) | (77211) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total lease liabilities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total lease liabilities | $(293120) | $(118137) |

---

The following table summarizes the activity recorded within the Company's combined statements of operations for Fiscal Years 2022, 2021 and 2020:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Line Item in the Company's Combined Statements of<br>Operations** | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** |
|  | **Line Item in the Company's Combined Statements of<br>Operations** | **2022** | **2021** | **2020** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease cost | Direct operating expenses | $22360 | $20138 | $20029 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease cost | Selling, general and administrative expenses | 9782 | 9773 | 11891 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variable lease cost | Direct operating expenses | 147 | 247 | 221 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Variable lease cost | Selling, general and administrative expenses | 41 | 39 | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total lease cost | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total lease cost | $32330 | $30197 | $32188 |

---

In November 2021, MSG Entertainment executed an agreement with the existing landlord for its New York corporate office space, which will be assigned to the Company, pursuant to which it will be relocating from the

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

space that the Company currently occupies to newly renovated office space within the same building. The Company will not be involved in the design or construction of the new space for purposes of the Company's buildout prior to obtaining possession, which is expected to occur in Fiscal Year 2024. Upon obtaining possession of the space, the new lease is expected to result in an additional lease obligation and right of use asset. While lease payments under the new lease agreement will be recognized as a lease expense on a straight-line basis over the lease term, the Company will begin paying full rent in the second half of Fiscal Year 2026 due to certain tenant incentives included in the arrangement. Base rent payments will increase every five years beginning in Fiscal Year 2031 in accordance with the terms of the lease. The Company anticipates entering into a new sublease agreement with MSG Sports for a lease term equivalent to the November 2021 agreement that MSG Entertainment entered into with the existing landlord. The future lease payments related to this new lease for the next five fiscal years and thereafter are expected to be as follows:

---

| | |
|:---|:---|
|  Fiscal Year 2023 | $— |
|  Fiscal Year 2024 |  |
|  Fiscal Year 2025 | 10121 |
|  Fiscal Year 2026 | 16276 |
|  Fiscal Year 2027 | 39207 |
|  Thereafter (Fiscal Year 2028 to Fiscal Year 2046) | 838789 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total lease payments | $904393 |

---

Supplemental cash flow information related to operating leases is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** |
|  | **2022** | **2021** | **2020** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash paid for amounts included in the measurement of operating lease liabilities | $33312 | $29380 | $37081 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease assets obtained in exchange for new lease obligations | $298100 | $— | $6966 |

---

Maturities of operating lease liabilities as of June 30, 2022 are as follows:

---

| | |
|:---|:---|
|  Fiscal year ending June 30, 2023 | $40730.0 |
|  Fiscal year ending June 30, 2024 | 45047.0 |
|  Fiscal year ending June 30, 2025 | 30951.0 |
|  Fiscal year ending June 30, 2026 | 11409.0 |
|  Fiscal year ending June 30, 2027 | 22666.0 |
|  Thereafter | 253699.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total lease payments | 404502.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: imputed interest | 111382.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total lease liabilities | $293120.0 |

---

The weighted average remaining lease term and weighted average discount rate for our operating leases are as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30,** | **June 30,** |
|  | **2022** | **2021** |
|  Weighted average remaining lease term (in years) | 12.9 | 3.6 |
|  Weighted average discount rate | 4.79% | 4.42% |

---

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

As of June 30, 2022, the Company's existing operating leases, which are recorded on the accompanying combined financial statements, have remaining lease terms ranging from 0.7 years to 16.1 years.

***Lessor Arrangements***

In connection with the 2020 Entertainment Distribution, the Company entered into Arena License Agreements with MSG Sports that, among other things, require the Knicks and the Rangers to play their home games at The Garden in exchange for fixed annual license fees scheduled to be paid monthly over the term of the agreements. The Company accounts for these license fees as operating lease revenue given that the Company provides MSG Sports with the right to direct the use of and obtain substantially all of the economic benefit from The Garden during Knicks and Rangers home games. Operating lease revenue is recognized on a straight-line basis over the lease term, adjusted pursuant to the terms of the Arena License Agreements. In the case of the Arena License Agreements, the lease terms relate to non-consecutive periods of use when MSG Sports uses The Garden for their professional sports teams' home games, and operating lease revenue is therefore recognized ratably as events occur.

The Arena License Agreements provide that license fees are not required to be paid by MSG Sports during periods when The Garden is unavailable for use due to a force majeure event. As a result of government-mandated suspension of events at The Garden beginning on March 13, 2020 due to the impact of the COVID-19 pandemic, The Garden was not available for use by MSG Sports from the effective date of the Arena License Agreements through the first quarter of Fiscal Year 2021, and, accordingly, the Company did not record any operating lease revenue for this arrangement during the first quarter of Fiscal Year 2021. Use of The Garden resumed for Knicks and Rangers home games without fans in December 2020 and January 2021, respectively, and was available at 10% seating capacity from February through May 2021 when it became available at 100% seating capacity. The Company recorded $68,072 and $21,345 of revenues under the Arena License Agreements for Fiscal Year 2022 and 2021, respectively. In addition, the Company recorded revenues from third party and related party lease and sublease arrangements of $3,338 and $2,980 for Fiscal Year 2022 and 2021, respectively.

**Note 11. Goodwill and Intangible Assets** 

As of June 30, 2022 and 2021, the carrying amount of goodwill was $69,041. No impairment charges were recorded during the periods presented.

The Company's indefinite-lived intangible assets as of June 30, 2022 and 2021 are as follows:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **June 30,<br>2022** | **June 30,<br>2021** |
|  Trademarks | $61881 | $61881 |
|  Photographic related rights | 1920 | 1920 |
|  Total | $63801 | $63801 |

---

On August 31, 2021 and 2020, the Company performed its annual impairment tests of goodwill and indefinite-lived intangible assets and determined that there were no impairments of goodwill and indefinite-lived intangible assets identified as of the impairment test date.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

The Company's intangible assets subject to amortization are as follows:

---

| | | | |
|:---|:---|:---|:---|
| **June 30, 2022** | **Gross** | **Accumulated**<br>**Amortization** | **Net** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trade names | $2530 | $(2169) | $361 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Festival rights | 8080 | (6926) | 1154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other intangibles | 4217 | (4094) | 123 |
|  | $14827 | $(13189) | $1638 |

---

---

| | | | |
|:---|:---|:---|:---|
| **June 30, 2021** | **Gross** | **Accumulated**<br>**Amortization** | **Net** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trade names | $2530 | $(842) | $1688 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Festival rights | 8080 | (2696) | 5384 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other intangibles | 4217 | (3813) | 404 |
|  | $14827 | $(7351) | $7476 |

---

Amortization expense for intangible assets was $5,838, $988 and $988 for Fiscal Years 2022, 2021, and 2020, respectively.

The Company's annual amortization expense for existing intangible assets subject to amortization for each fiscal year from 2023 through 2027, and thereafter, is as follows:

---

| | |
|:---|:---|
|  Fiscal year ending June 30, 2023 | $1638 |
|  Fiscal year ending June 30, 2024 |  |
|  Fiscal year ending June 30, 2025 |  |
|  Fiscal year ending June 30, 2026 |  |
|  Fiscal year ending June 30, 2027 |  |
|  Thereafter |  |
|  | $1638 |

---

**Note 12. Accrued and Other Current Liabilities** 

Accrued and other current liabilities consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **June 30,<br>2022** | **June 30,<br>2021** |
|  Accrued payroll and employee related liabilities | $88501 | $50158 |
|  Cash due to promoters | 78428 | 37877 |
|  Accrued expenses | 43791 | 35028 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total accrued and other current liabilities | $210720 | $123063 |

---

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

**Note 13. Commitments and Contingencies** 

*Commitments* 

As of June 30, 2022, commitments of the Company in the normal course of business in excess of one year are as follows:

---

| | |
|:---|:---|
|  | **Balance <sup>(a)</sup>** |
|  Fiscal year ending June 30, 2023 | $12730 |
|  Fiscal year ending June 30, 2024 | 4420 |
|  Fiscal year ending June 30, 2025 | 4272 |
|  | $21422 |

---

------

*<sup>(a)</sup>* *The Company's material off balance sheet arrangements relate to $14,791 for marketing partnership and other IT commitments and $6,631 of letters of credit.* 

See Note 10, Leases for more information regarding the Company's contractually obligated minimum lease payments for operating leases having an initial non-cancelable term in excess of one year for the Company's venues and various corporate offices. These commitments are presented exclusive of the imputed interest used to reflect the payment's present value.

See Note 14, Credit Facilities for more information regarding the principal repayments required under the National Properties Facilities.

*Legal Matters* 

Fifteen complaints were filed in connection with MSG Entertainment's acquisition of MSG Networks Inc. (the "Networks Merger") by purported stockholders of MSG Entertainment and MSG Networks Inc. Nine of these complaints involved allegations of materially incomplete and misleading information set forth in the joint proxy statement/prospectus filed by MSG Entertainment and MSG Networks Inc. in connection with the Networks Merger. These disclosure actions were subsequently voluntarily dismissed with prejudice. Six complaints involved allegations of fiduciary breaches in connection with the negotiation and approval of the Networks Merger and have since been consolidated into two remaining litigations. MSG Entertainment and MSG Networks Inc. will retain all rights and obligations with respect to these claims, as applicable, and MSG Entertainment will indemnify the Company from and release the Company from all present and future costs, expenses, and liabilities, if any, related to these claims.

The Company is a defendant in various lawsuits. Although the outcome of these lawsuits cannot be predicted with certainty (including the extent of available insurance, if any), management does not believe that resolution of these lawsuits will have a material adverse effect on the Company.

**Note 14. Credit Facilities** 

The following table summarizes the presentation of the outstanding balances under the Company's National Properties' credit agreement as of June 30, 2022 and 2021:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br>2022** | **June 30,<br>2021** |
| **Current Portion** | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; National Properties Term Loan Facility | $8125 | $6500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other debt | 637 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $8762 | $6500 |

---

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **June 30, 2022** | **June 30, 2022** | **June 30, 2022** | **June 30, 2021** | **June 30, 2021** | **June 30, 2021** |
|  | **Principal** | **Unamortized<br>Deferred<br>Financing<br>Costs** | **Net** | **Principal** | **Unamortized<br>Deferred<br>Financing<br>Costs** | **Net** |
| **Noncurrent Portion** | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; National Properties Term Loan Facility | $641875 | $(16063) | $625812 | $640250 | $(29602) | $610648 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; National Properties Revolving Credit Facility | 29100 |  | 29100 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other debt |  |  |  | 637 |  | 637 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term debt, net of deferred financing costs | $670975 | $(16063) | $654912 | $640887 | $(29602) | $611285 |

---

*National Properties Facilities* 

*General.* On June 30, 2022, MSG National Properties, LLC ("MSG National Properties"), MSG Entertainment Group, LLC ("MSG Entertainment Group") and certain subsidiaries of MSG National Properties entered into a credit agreement with JP Morgan Chase Bank, N.A., as administrative agent and the lenders and L/C issuers party thereto (the "National Properties Credit Agreement"), providing for a five-year, $650,000 senior secured term loan facility (the "National Properties Term Loan Facility") and a five-year, $100,000 revolving credit facility (the "National Properties Revolving Credit Facility" and, together with the National Properties Term Loan Facility, the "National Properties Facilities"). As of June 30, 2022, outstanding letters of credit were $6,631 and the remaining balance available under the National Properties Revolving Credit Facility was $70,900.

*Proceeds.* The proceeds of the National Properties Facilities were used on the closing date to repay in full the obligations outstanding under MSG National Properties' prior term loan facility (the "Prior National Properties Loan Facility") and to pay fees and expenses in connection with the National Properties Facilities and the refinancing of the Prior National Properties Loan Facility. Up to $25,000 of the National Properties Revolving Credit Facility is available for the issuance of letters of credit. Proceeds of the National Properties Revolving Credit Facility may be used to fund working capital needs, for general corporate purposes of MSG National Properties and its subsidiaries, and to make distributions to MSG Entertainment Group.

*Interest Rates.* Borrowings under the current National Properties Facilities bear interest at a floating rate, which at the option of MSG National Properties may be either (a) a base rate plus an applicable margin ranging from 1.50% to 2.50% per annum, determined based on the total leverage ratio of MSG National Properties and its restricted subsidiaries (the "National Properties Base Rate"), or (b) Term SOFR plus an applicable margin ranging from 2.50% to 3.50% per annum, determined based on the total leverage ratio of MSG National Properties and its restricted subsidiaries (the "National Properties SOFR Rate"). The Prior National Properties Loan Facility bore interest at a floating rate, which at the option of MSG National Properties, was either (i) a base rate plus a margin of 5.25% per annum or (ii) LIBOR, with a floor of 0.75%, plus a margin of 6.25% per annum. As of June 30, 2022, the additional rate used in calculating the floating rate was (i) 3.50% per annum for borrowings bearing the National Properties Base Rate, and (ii) 1.63% per annum for borrowings bearing the National Properties SOFR Rate. The National Properties Credit Agreement requires MSG National Properties to pay a commitment fee ranging from 0.30% to 0.50% in respect of the daily unused commitments under the National Properties Revolving Credit Facility. MSG National Properties is also required to pay customary letter of credit fees, as well as fronting fees, to banks that issue letters of credit pursuant to the National Properties Credit Agreement. The interest rate on the National Properties Facilities as of June 30, 2022 was 5.13%.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

*Principal Repayments.* Subject to customary notice and minimum amount conditions, the Company may voluntarily repay outstanding loans under the National Properties Facilities and terminate commitments under the National Properties Revolving Credit Facility, at any time, in whole or in part, subject only to customary breakage costs in the case of prepayment of Term SOFR loans. The National Properties Facilities will mature on June 30, 2027. The principal obligations under the National Properties Term Loan Facility are to be repaid in quarterly installments beginning with the fiscal quarter ending March 31, 2023, in an aggregate amount equal to 2.50% per annum (0.625% per quarter), stepping up to 5.0% per annum (1.25% per quarter) in the fiscal quarter ending September 30, 2025, with the balance due at the maturity of the facility. The principal obligations under the National Properties Revolving Credit Facility are due at the maturity of the facility.

*Covenants.* The National Properties Credit Agreement includes financial covenants requiring MSG National Properties and its restricted subsidiaries to maintain a specified minimum liquidity level, a specified minimum debt service coverage ratio and specified maximum total leverage ratio. The minimum liquidity level is set at $50,000, and is tested based on the level of average daily liquidity, consisting of cash and cash equivalents and available revolving commitments, over the last month of each quarter over the life of the National Properties Facilities. The debt service coverage ratio covenant begins testing in the fiscal quarter ending December 31, 2022, and is set at a ratio of 2:1 before stepping up to 2.5:1 in the fiscal quarter ending September 30, 2024. The leverage ratio covenant begins testing in the fiscal quarter ending June 30, 2023. It is tested based on the ratio of MSG National Properties and its restricted subsidiaries' consolidated total indebtedness to adjusted operating income, with an initial maximum ratio of 6:1, stepping down to 5.5:1 in the fiscal quarter ending June 30, 2024 and 4.5:1 in the fiscal quarter ending June 30, 2026. As of June 30, 2022, MSG National Properties and its restricted subsidiaries were in compliance with the covenants of the National Properties Credit Agreement.

In addition to the financial covenants discussed above, the National Properties Credit Agreement and the related security agreement contain certain customary representations and warranties, affirmative and negative covenants and events of default. The National Properties Credit Agreement contains certain restrictions on the ability of MSG National Properties and its restricted subsidiaries to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the National Properties Credit Agreement, including the following: (i) incur additional indebtedness; (ii) create liens on certain assets; (iii) make investments, loans or advances in or to other persons; (iv) pay dividends and distributions or repurchase capital stock (which will restrict the ability of MSG National Properties to make cash distributions to the Company); (v) repay, redeem or repurchase certain indebtedness; (vi) change its lines of business; (vii) engage in certain transactions with affiliates; (viii) amend their respective organizational documents; (ix) merge or consolidate; and (x) make certain dispositions.

*Guarantors and Collateral.* All obligations under the National Properties Facilities are guaranteed by MSG Entertainment Group and MSG National Properties' existing and future direct and indirect domestic subsidiaries, other than the subsidiaries that own The Garden and certain other excluded subsidiaries (the "Subsidiary Guarantors").

All obligations under the National Properties Facilities, including the guarantees of those obligations, are secured by certain of the assets of MSG National Properties and the Subsidiary Guarantors (collectively, "Collateral") including, but not limited to, a pledge of some or all of the equity interests held directly or indirectly by MSG National Properties in each Subsidiary Guarantor. The Collateral does not include, among other things, any interests in The Garden or the leasehold interests in Radio City Music Hall and the Beacon Theatre. Under certain circumstances, MSG National Properties is required to make mandatory prepayments on loans outstanding, including prepayments in an amount equal to the net cash proceeds of certain sales of assets or casualty insurance and/or condemnation recoveries (subject to certain reinvestment, repair or replacement rights), subject to certain exceptions.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

*Accounting Treatment.* The Company evaluated the terms of the National Properties Term Loan Facility and the Prior National Properties Term Loan Facility and concluded such facilities to be substantially different for accounting purposes. As a result, the Company recorded a loss on extinguishment of approximately $35,600 in connection with the above financing transactions for Fiscal Year 2022.

*Debt Maturities* 

---

| | | | |
|:---|:---|:---|:---|
|  | **National<br>Properties<br>Facilities** | **Other debt** | **Total** |
|  Fiscal year ending June 30, 2023 | $8125 | $637 | $8762 |
|  Fiscal year ending June 30, 2024 | 16250 |  | 16250 |
|  Fiscal year ending June 30, 2025 | 16250 |  | 16250 |
|  Fiscal year ending June 30, 2026 | 32500 |  | 32500 |
|  Fiscal year ending June 30, 2027 | 605975 |  | 605975 |
|  Thereafter |  |  |  |
|  | $679100 | $637 | $679737 |

---

Interest payments and loan principal repayments made by the Company under the National Properties Credit Agreement were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Interest Payments** | **Interest Payments** | **Interest Payments** | **Loan Principal<br>Repayments** | **Loan Principal<br>Repayments** | **Loan Principal<br>Repayments** |
|  | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2022** | **2021** | **2020** |
|  National Properties Term Loan Facility | 52163 | 22879 |  | 646750 | 3250 |  |

---

The carrying value and fair value of the Company's financial instruments reported in the accompanying combined balance sheets are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2022** | **June 30, 2022** | **June 30, 2021** | **June 30, 2021** |
|  | **Carrying**<br>**Value** | **Fair**<br>**Value** | **Carrying**<br>**Value** | **Fair**<br>**Value** |
|  Liabilities: |  |  |  |  |
|  National Properties Facilities | $679100 | $679100 | $646750 | $669386 |

---

The Company's long-term debt is classified within Level II of the fair value hierarchy as it is valued using quoted indices of similar instruments for which the inputs are readily observable.

**Note 15. Pension Plans and Other Postretirement Benefit Plans** 

*Defined Benefit Pension Plans and Postretirement Benefit Plans* 

MSG Entertainment sponsors a non-contributory, qualified cash balance retirement plan covering its non-union employees (the "Cash Balance Pension Plan") and an unfunded non-contributory, non-qualified excess cash balance plan covering certain employees who participate in the underlying qualified plan (collectively, the "Cash Balance Plans"). Since March 1, 2011, the Cash Balance Pension Plan has also included the assets and liabilities of a frozen (as of December 31, 2007) non-contributory qualified defined benefit pension plan covering non-union employees hired prior to January 1, 2001. These plans are considered "Shared Plans," as previously defined, with substantially all plan participants specifically identified to the Company.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

MSG Entertainment also sponsors an unfunded non-contributory, non-qualified defined benefit pension plan for the benefit of certain employees who participated in an underlying qualified plan, which was merged into the Cash Balance Pension Plan on March 1, 2011 (the "Excess Plan"). As of December 31, 2007, the Excess Plan was amended to freeze all benefits earned through December 31, 2007 and to eliminate the ability of participants to earn benefits for future service under these plans. This plan is considered a Shared Plan, as previously defined, with substantially all plan participants specifically identified to the Company.

The Cash Balance Plans were amended to freeze participation and future benefit accruals effective December 31, 2015 for all employees. Therefore, after December 31, 2015, no employee of the Company, MSG Entertainment or MSG Sports who was not already a participant may become a participant in the plans and no further annual pay credits will be made for any future year. Existing account balances under the plans will continue to be credited with monthly interest in accordance with the terms of the plans.

Lastly, MSG Entertainment sponsors a non-contributory, qualified defined benefit pension plan covering certain of the Company's union employees (the "Union Plan"). Benefits payable to retirees under the Union Plan are based upon years of Benefit Service (as defined in the Union Plan document). The Union Plan is considered a Direct Plan, as previously defined.

The Cash Balance Plans, Union Plan, and Excess Plan are collectively referred to as the "Pension Plans."

MSG Entertainment also sponsors a contributory welfare plan which provides certain postretirement healthcare benefits to certain employees of the Company hired prior to January 1, 2001, who are eligible to commence receipt of early or normal benefits under the Cash Balance Pension Plan, and their dependents, as well as certain union employees ("Postretirement Plan").

For the historical periods, MSG Entertainment was the legal sponsor of the Pension Plans and Postretirement Plan. For purposes of the combined financial statements, it was determined that these plans' assets and liabilities were attributable to the Company. Therefore, the combined financial statements reflect the full impact of the Shared Plans and the Direct Plan on both the combined statements of operations and combined balance sheets. The pension expense related to employees of other MSG Entertainment businesses participating in the Shared Plans were immaterial for Fiscal Years 2022, 2021 and 2020.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

The following table summarizes the projected benefit obligations, assets, funded status and the amounts recorded on the Company's combined balance sheets as of June 30, 2022 and 2021, associated with the Pension Plans and Postretirement Plan based upon actuarial valuations as of those measurement dates.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Pension Plans** | **Pension Plans** | **Postretirement Plan** | **Postretirement Plan** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2022** | **2021** | **2022** | **2021** |
|  Change in benefit obligation: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Benefit obligation at beginning of period | $171897 | $174892 | $3218 | $3658 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Service cost | 120 | 96 | 32 | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest cost | 3708 | 3385 | 42 | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial loss (gain) *<sup>(a)</sup>* | (33344) | 1981 | (501) | (76) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Benefits paid | (6465) | (4410) | (328) | (390) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Curtailments |  | (91) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Plan settlements paid |  | (3777) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other |  | (179) |  | (66) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Benefit obligation at end of period | 135916 | 171897 | 2463 | 3218 |
|  Change in plan assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value of plan assets at beginning of period | 145651 | 151756 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actual return on plan assets | (30667) | 1969 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employer contributions | 400 | 60 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Benefits paid | (6406) | (4409) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Plan settlements paid |  | (3725) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value of plan assets at end of period | 108978 | 145651 |  |  |
|  Funded status at end of period | $(26938) | $(26246) | $(2463) | $(3218) |

---

------

*<sup>(a)</sup>* *In Fiscal Year 2022, the actuarial gains on the benefit obligations were primarily due to a net increase in discount and interest crediting rates. In Fiscal Year 2021, the actuarial losses on the benefit obligations were primarily due to a net decrease in discount and interest crediting rates.* 

Amounts recognized in the combined balance sheets as of June 30, 2022 and 2021 consist of:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Pension Plans** | **Pension Plans** | **Postretirement Plan** | **Postretirement Plan** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2022** | **2021** | **2022** | **2021** |
|  Current liabilities (included in accrued employee related costs) | $(264) | $(259) | $(364) | $(369) |
|  Non-current liabilities (included in defined benefit and other postretirement obligations) | (26674) | (25987) | (2099) | (2849) |
|  | $(26938) | $(26246) | $(2463) | $(3218) |

---

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

Accumulated other comprehensive loss, before income tax, as of June 30, 2022 and 2021 consists of the following amounts that have not yet been recognized in net periodic benefit cost:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Pension Plans** | **Pension Plans** | **Postretirement Plan** | **Postretirement Plan** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2022** | **2021** | **2022** | **2021** |
|  Actuarial gain (loss) | $(41910) | $(39957) | $(251) | $(786) |

---

The following table presents components of net periodic benefit cost for the Pension Plans and Postretirement Plan included in the accompanying combined statements of operations for Fiscal Years 2022, 2021 and 2020. Service cost is recognized in direct operating expenses and selling, general and administrative expenses. All other components of net periodic benefit cost are reported in Other income (expense), net.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Pension Plans** | **Pension Plans** | **Pension Plans** | **Postretirement Plan** | **Postretirement Plan** | **Postretirement Plan** |
|  | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2022** | **2021** | **2020** |
|  Service cost | $120 | $96 | $95 | $32 | $47 | $56 |
|  Interest cost | 3708 | 3385 | 5261 | 42 | 45 | 108 |
|  Expected return on plan assets | (6016) | (5232) | (5319) |  |  |  |
|  Recognized actuarial loss | 1386 | 1093 | 1336 | 34 | 98 | 6 |
|  Settlement loss recognized *<sup>(a)</sup>* |  | 870 | 67 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net periodic benefit cost | $(802) | $212 | $1440 | $108 | $190 | $170 |
|  Contributory charge to Madison Square Garden Sports Corp. for participation in the Shared Plans and all allocation of costs related to the corporate employees |  |  | (173) |  |  | (26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net periodic benefit cost reported in the combined statements of operations | $(802) | $212 | $1267 | $108 | $190 | $144 |

---

------

*<sup>(a)</sup>* *For Fiscal Years 2022, 2021 and 2020, lump-sum payments totaling $0, $52 and $551, respectively, were distributed to vested participants of the non-qualified excess cash balance plan, triggering the recognition of settlement losses in accordance with ASC Topic 715. Due to these pension settlements, the Company was required to remeasure its pension plan liability as of June 30, 2021 and 2020 and for Fiscal Years 2021 and 2020, respectively. The discount rates used for the projected benefit obligation and interest cost were 1.96% and 1.30% as of June 30, 2022, respectively, 1.77% and 1.24% as of June 30, 2021, respectively, and 2.95% and 2.83% as of June 30, 2020, respectively. Additionally, settlement charges of $0, $870 and $67 were recognized in Other income (expense), net for Fiscal Years 2022, 2021 and 2020, respectively.* 

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

Other pre-tax changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for Fiscal Years 2022, 2021 and 2020 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Pension Plans** | **Pension Plans** | **Pension Plans** | **Postretirement Plan** | **Postretirement Plan** | **Postretirement Plan** |
|  | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2022** | **2021** | **2020** |
|  Actuarial gain (loss), net | $(3306) | $(5244) | $232 | $501 | $76 | $(277) |
|  Recognized actuarial loss | 1386 | 1093 | 1336 | 34 | 98 | 6 |
|  Recognized prior service credit |  |  |  |  |  |  |
|  Curtailments |  | 91 |  |  | 65 |  |
|  Settlement loss recognized |  | 870 | 67 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total recognized in other comprehensive income (loss) | $(1920) | $(3190) | $1635 | $535 | $239 | $(271) |

---

*Funded Status* 

The accumulated benefit obligation for the Pension Plans aggregated to $135,916 and $171,897 at June 30, 2022 and 2021, respectively. As of June 30, 2022 and 2021, each of the Pension Plans had accumulated benefit obligations and projected benefit obligations in excess of plan assets.

*Pension Plans and Postretirement Plan Assumptions* 

Weighted-average assumptions used to determine benefit obligations (made at the end of the period) as of June 30, 2022 and 2021 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Pension Plans** | **Pension Plans** | **Postretirement Plan** | **Postretirement Plan** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2022** | **2021** | **2022** | **2021** |
|  Discount rate | 4.86% | 2.87% | 4.62% | 2.17% |
|  Interest crediting rate | 2.76% | 2.32% | n/a | n/a |
|  Healthcare cost trend rate assumed for next year | n/a | n/a | 6.00% | 6.25% |
|  Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | n/a | n/a | 5.00% | 5.00% |
|  Year that the rate reaches the ultimate trend rate | n/a | n/a | 2027 | 2027 |

---

Weighted-average assumptions used to determine net periodic benefit cost (made at the beginning of the period) for Fiscal Years 2022, 2021 and 2020 are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Pension Plans** | **Pension Plans** | **Pension Plans** | **Postretirement Plan** | **Postretirement Plan** | **Postretirement Plan** |
|  | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2022** | **2021** | **2020** |
|  Discount rate—projected benefit obligation | 2.87% | 2.84% | 3.58% | 2.17% | 2.09% | 3.18% |
|  Discount rate—service cost | 3.11% | 3.20% | 3.78% | 2.65% | 2.15% | 3.45% |
|  Discount rate—interest cost | 1.92% | 1.92% | 3.21% | 1.51% | 1.23% | 2.84% |
|  Expected long-term return on plan assets | 4.94% | 4.02% | 5.28% | n/a | n/a | n/a |
|  Interest crediting rate | 2.32% | 1.37% | 3.28% | n/a | n/a | n/a |
|  Healthcare cost trend rate assumed for next year | n/a | n/a | n/a | 6.25% | 6.50% | 6.75% |
|  Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | n/a | n/a | n/a | 5.00% | 5.00% | 5.00% |
|  Year that the rate reaches the ultimate ntrend rate | n/a | n/a | n/a | 2027 | 2027 | 2027 |

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

The discount rates were determined (based on the expected duration of the benefit payments for the plans) from the Willis Towers Watson U.S. Rate Link: 40-90 Discount Rate Model as of June 30, 2022 and 2021 to select a rate at which the Company believed the plans' benefits could be effectively settled. This model was developed by examining the yields on selected highly rated corporate bonds. The expected long-term return on plan assets is based on a periodic review and modeling of the plans' asset allocation structures over a long-term horizon. Expectations of returns for each asset class are the most important of the assumptions used in the review and modeling and are based on comprehensive reviews of historical data, forward-looking economic outlook, and economic/financial market theory. The expected long-term rate of return was selected from within the reasonable range of rates determined by (i) historical returns for the asset classes covered by the investment policy and (ii) projections of returns over the long-term period during which benefits are payable to plan participants.

*Plan Assets and Investment Policy* 

The weighted-average asset allocation of the Pension Plans' assets at June 30, 2022 and 2021 was as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30,** | **June 30,** |
|  | **2022** | **2021** |
|  **Asset Classes *<sup>(a)</sup>*:** |  |  |
|  Fixed income securities | 78% | 98% |
|  Equity securities | 14% | —% |
|  Cash equivalents | 8% | 2% |
|  | 100% | 100% |

---

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*<sup>(a)</sup>* *The Company's target allocation for pension plan assets is 85% fixed income securities and 15% equity as of June 30, 2022.* 

Investment allocation decisions have been made by the Company's Investment and Benefits Committee, which considers investment advice provided by the Company's external investment consultant. The investment consultant takes into account expected long-term risks, returns, correlation, and other prudent investment assumptions when recommending asset classes and investment managers to the Company's Investment and Benefits Committee. The investment consultant also considers the pension plans' liabilities when making investment allocation recommendations. The Company's Investment and Benefits Committee's decisions are influenced by asset/liability studies conducted by the external investment consultant who combines actuarial considerations and strategic investment advice. The major investment categories of the pension plan assets are in cash equivalents and long duration fixed income securities that are marked-to-market on a daily basis. As a result, the pension plan assets are subjected to interest-rate risk, specifically to a rising interest rate environment, as the majority of the pension plan assets are invested in long duration fixed income securities. However, the pension plan assets are structured in an asset/liability framework, and consequently, an increase in interest rates would cause a corresponding decrease to the overall liability of the pension plans, thus creating a hedge against rising interest rates. Additional risks involving the asset/liability framework include earning insufficient investment returns to cover future pension plan liabilities and imperfect hedging of such liabilities. In addition, a portion of the long duration fixed income securities portfolio is invested in non-government securities that are subject to credit risk of the issuers who might default on interest and/or principal payments.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

*Investments at Estimated Fair Value* 

The cumulative fair values of the individual plan assets at June 30, 2022 and 2021 by asset class are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Fair Value<br>Hierarchy** | **June 30,** | **June 30,** |
|  | **Fair Value<br>Hierarchy** | **2022** | **2021** |
|  Fixed income securities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury securities *<sup>(a)</sup>* | I | $672 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Money market fund *<sup>(a)</sup>* | I | 8311 | 2753 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S. corporate bonds *<sup>(b)</sup>* | II |  | 100229 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign issues *<sup>(c)</sup>* | II |  | 20119 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Municipal bonds *<sup>(c)</sup>* | II |  | 3881 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mutual fund — equity *<sup>(d)</sup>* | II | 15661 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common collective trust *<sup>(d)</sup>* | II | 84334 | 18669 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total investments measured at fair value |  | $108978 | $145651 |

---

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*<sup>(a)</sup>* *U.S. Treasury Securities and the money market fund are classified within Level I of the fair value hierarchy as they are valued using observable inputs that reflect quoted prices for identical assets in active markets.* 

*<sup>(b)</sup>* *U.S. corporate bonds are classified within Level II of the fair value hierarchy as they are valued using quoted prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active and evaluations based on various market and industry inputs.* 

*<sup>(c)</sup>* *Foreign issued corporate bonds and municipal bonds are classified within Level II of the fair value hierarchy as they are valued at a price that is based on a compilation of primarily observable market information or a broker quote in a non-active over-the-counter market.* 

*<sup>(d)</sup>* *The common collective trust (CCT) and the mutual fund, which are non-exchange traded funds, are classified within Level II of the fair value hierarchy at their net asset value (NAV) as reported by the Trustee and investment manager, respectively. The NAV is based on the fair value of the underlying investments held by the fund which are based on quoted market prices less their liabilities. Both the CCT and the mutual fund publish their daily NAV and use such value as the basis for current transactions.* 

*Contributions for Qualified Defined Benefit Pension Plans* 

During Fiscal Year 2022, the Company contributed $400 to the Union Plan. The Company expects to contribute $250 to the Union Plan in Fiscal Year 2023.

*Estimated Future Benefit Payments* 

The following table presents estimated future fiscal year benefit payments for the Pension Plans and Postretirement Plan:

---

| | | |
|:---|:---|:---|
|  | **Pension**<br>**Plans** | **Postretirement**<br>**Plan** |
|  Fiscal year ending June 30, 2023 | $11291 | $370 |
|  Fiscal year ending June 30, 2024 | $8323 | $320 |
|  Fiscal year ending June 30, 2025 | $8030 | $304 |
|  Fiscal year ending June 30, 2026 | $8638 | $280 |
|  Fiscal year ending June 30, 2027 | $8802 | $228 |
|  Fiscal years ending June 30, 2028 – 2032 | $44197 | $950 |

---

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

*<u>Defined Contribution Plans</u>* 

MSG Entertainment sponsors The Madison Square Garden 401(k) Savings Plan (the "401(k) Plan") and the MSG S&E, LLC Excess Savings Plan (collectively referred to as the "Savings Plans"). The 401(k) Plan is a multiple employer plan. For Fiscal Years 2022, 2021 and 2020, expenses related to the Savings Plans, excluding expenses related to MSG Sports employees, that are included in the accompanying combined statements of operations were $4,284, $2,274, and $3,136, respectively.

In addition, MSG Entertainment sponsors The Madison Square Garden 401(k) Union Plan (the "Union Savings Plan"). The Union Savings Plan is a multiple employer plan. For Fiscal Years 2022, 2021 and 2020, expenses related to the Union Savings Plan included in the accompanying combined statements of operations were $394, $215 and $539, respectively.

*<u>Multiemployer Plans</u>* 

The Company contributes to a number of multiemployer defined benefit pension plans, multiemployer defined contribution pension plans, and multiemployer health and welfare plans that provide benefits to retired union-represented employees under the terms of collective bargaining agreements ("CBAs").

*Multiemployer Defined Benefit Pension Plans* 

The multiemployer defined benefit pension plans to which the Company contributes generally provide for retirement and death benefits for eligible union-represented employees based on specific eligibility/participant requirements, vesting periods and benefit formulas. The risks to the Company of participating in these multiemployer defined benefit pension plans are different from single-employer defined benefit pension plans in the following aspects:

• Assets contributed to a multiemployer defined benefit pension plan by one employer may be used to provide
benefits to employees of other participating employers.

• If a participating employer stops contributing to a multiemployer defined benefit pension plan, the unfunded
obligations of the plan may be borne by the remaining participating employers.

• If the Company chooses to stop participating in some of these multiemployer defined benefit pension plans, the
Company may be required to pay those plans an amount based on the Company's proportion of the underfunded status of the plan, referred to as a withdrawal liability. However, cessation of participation in a multiemployer defined benefit pension
plan and subsequent payment of any withdrawal liability is subject to the collective bargaining process.

The following table outlines the Company's participation in multiemployer defined benefit pension plans for Fiscal Years 2022, 2021 and 2020, and summarizes the contributions that the Company has made during each period. The "EIN" and "Pension Plan Number" columns provide the Employer Identification Number and the three-digit plan number for each applicable plan. The most recent Pension Protection Act zone status available as of June 30, 2022 and 2021 relates to the plan's two most recent years ended which are indicated. Among other factors, plans in the red zone are generally less than 65% funded, plans in the orange zone are both less than 80% funded and have an accumulated funding deficiency or are expected to have a deficiency in any of the next six plan years, plans in the yellow zone are less than 80% funded, and plans in the green zone are at least 80% funded. The "FIP/RP Status Pending/Implemented" column indicates whether a funding improvement plan ("FIP") for yellow/orange zone plans or a rehabilitation plan ("RP") for red zone plans is either pending or has been implemented by the trustees of such plan. The zone status and any FIP or RP information is based on information that the Company received from the plan, and the zone status is as certified by the plan's actuary.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

The last column lists the expiration date(s) or a range of expiration dates of the CBA to which the plans are subject. There are no other significant changes that affect such comparability.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | **PPA Zone Status** | **PPA Zone Status** | **FIP/RP<br>Status<br>Pending /<br>Implemented** | **Company<br>Contributions** | **Company<br>Contributions** | **Company<br>Contributions** | | |
|  | | | **As of June 30,** | **As of June 30,** | **FIP/RP<br>Status<br>Pending /<br>Implemented** | **Years Ended<br>June 30,** | **Years Ended<br>June 30,** | **Years Ended<br>June 30,** | | |
| **Plan Name** | **EIN** | **Pension<br>Plan<br>Number** | **2022** | **2021** | **FIP/RP<br>Status<br>Pending /<br>Implemented** | **2022** | **2021** | **2020** | **Surcharge<br>Imposed** | **Expiration**<br>**Date of CBA** |
|  Pension Fund of Local No. 1 of I.A.T.S.E. | 136414973 | 001 | Green<br> as of<br> 2021-12-31 | Green<br> as of<br> 2020-12-31 | No | $1.999 | $194 | $1831 | No | 6/30/2021 –5/1/2023 |
|  All Other Multiemployer Defined Benefit Pension Plans |  |  |  |  |  | 1.907 | 584 | 3137 |  |  |
|  |  |  |  |  |  | $3.906 | $778 | $4968 |  |  |

---

The Company was listed in the following plans' Form 5500's as providing more than 5% of the total contributions for the following plans and plan years:

---

| | | |
|:---|:---|:---|
| **Fund Name** | **Exceeded 5<br>Percent of Total<br>Contributions** | **Year Contributions to Plan Exceeded**<br> **5 Percent of Total Contributions**<br> **(As of Plan's Year-End)** |
| Pension Fund of Local No. 1 of I.A.T.S.E | True | December 31, 2020, 2019 and 2018 |
| 32BJ/Broadway League Pension Fund | True | December 31, 2020, 2019 and 2018 |
| Treasurers and Ticket Sellers Local 751 Pension Fund | True | August 31, 2021, 2020 and 2019 |

---

*Multiemployer Defined Contribution Pension Plans* 

The Company contributed $5,641, $723 and $5,258 for Fiscal Years 2022, 2021 and 2020, respectively, to multiemployer defined contribution pension plans.

**Note 16. Share-based Compensation** 

Certain employees of the Company have historically participated in the share-based compensation plans of MSG Entertainment ("MSG Entertainment Employee Stock Plans"). The plans provide for discretionary grants of incentive stock options and non-qualified stock options, restricted shares, restricted stock units, performance stock units, stock appreciation rights and other share-based awards. All awards granted under the plans will settle in shares of MSG Entertainment's Class A Common Stock, or, at the option of the Compensation Committee of the MSG Entertainment Board of Directors, in cash. Only the expenses for the awards provided to the Company's direct employees, net of expenses related to the Company's corporate employees who participate in the plans that were charged to MSG Entertainment, are recorded in the combined financial statements.

*Share-based Compensation Expense* 

Share-based compensation expense is generally recognized straight-line over the vesting term of the award, which typically provides for three-year cliff or graded vesting subject to continued employment. For awards that are graded vesting and subject to performance conditions, in addition to continued employment, the Company uses the graded-vesting method to recognize share-based compensation expense.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

Share-based compensation expense was recognized in the combined statements of operations as a component of direct operating expenses or selling, general and administrative expenses. Share-based compensation expense was $39,357, $40,663 and $26,110 for Fiscal Years 2022, 2021 and 2020, respectively. The share-based compensation expense recorded by the Company, in the periods presented, includes the expenses associated with the employees attributable to the Company, net of contributory credits from the Company to MSG Entertainment for the Company's corporate employees. The total share-based compensation expense for Fiscal Year 2022 includes $1,612 which was reclassified to Restructuring charges in the combined statements of operations, as detailed in Note 5, Restructuring Charges.

*Restricted Stock Units Award Activity* 

The following table summarizes activity related to MSG Entertainment's restricted stock units ("RSUs") held by the Company's direct employees for Fiscal Year 2022:

---

| | | | |
|:---|:---|:---|:---|
|  | **Number of** | **Number of** | **Weighted-<br>Average**<br>**Fair Value**<br>**Per Share At**<br>**Date of<br>Grant** |
|  | **Nonperformance**<br>**Based**<br>**Vesting**<br>**RSUs** | **Performance<br>Stock Units** | **Weighted-<br>Average**<br>**Fair Value**<br>**Per Share At**<br>**Date of<br>Grant** |
|  Unvested award balance as of June 30, 2021 | 67 | 81 | $74.42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Granted | 62 | 56 | $79.14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vested | (22) | (8) | $77.25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forfeited | (6) | (9) | $75.81 |
|  Unvested award balance as of June 30, 2022 | 101 | 120 | $76.46 |

---

As of June 30, 2022, there was $9,854 of unrecognized compensation cost related to unvested RSUs and performance stock units ("PSUs") held by the Company's direct employees. The cost is expected to be recognized over a weighted-average period of approximately 1.6 years.

The following table summarizes additional information about restricted stock units:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Fiscal Year Ended** | **For the Fiscal Year Ended** | **For the Fiscal Year Ended** |
|  | **June 30, 2022** | **June 30, 2021** | **June 30, 2020** |
|  Weighted average grant date fair value per share of awards granted | $79.14 | $72.81 | $74.50 |
|  Intrinsic value of awards vested | $2424 | $1396 | $101 |

---

*Stock Options Award Activity* 

Compensation expense for MSG Entertainment stock options held by the Company's employees is determined based on the grant date fair value of the award calculated using the Black-Scholes options-pricing model. Stock options generally vest over a three years' service period and expire 7.5 to 10 years from the date of grant. None of the Company's direct employees held any stock options during the periods presented. As such, the only cost related to stock options in the combined financial statements relates to allocated costs discussed above for corporate employees.

***Treatment After the 2020 Entertainment Distribution of Share-based Payment Awards Initially Granted Under MSG Sports Equity Award Programs***

In connection with the 2020 Entertainment Distribution, each holder of an MSG Sports employee restricted stock unit received one MSG Entertainment RSU in respect of every one MSG Sports RSU owned on the record

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

date and continues to be entitled to a share of MSG Sports Class A common stock (or cash or other property) for each MSG Sports RSU in accordance with the MSG Sports award agreement. Additionally, each holder of an MSG Sports employee PSU received one Company PSU (at target performance) in respect of every one MSG Sports PSU (at target performance) owned on the Record Date and continues to be entitled to a share of MSG Sports Class A common stock (or cash or other property) for each MSG Sports PSU in accordance with the MSG Sports award agreement.

Further, in connection with the 2020 Entertainment Distribution, each holder of an MSG Sports director RSU received one share of our Class A Common Stock in respect of every one MSG Sports RSU owned on the Record Date and continues to be entitled to a share of MSG Sports Class A common stock (or cash or other property) in accordance with the MSG Sports award agreement.

**Note 17. Accumulated Other Comprehensive Loss** 

The following table details the components of accumulated other comprehensive income (loss):

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| | | | |
|:---|:---|:---|:---|
|  | **Pension Plans and**<br>**Postretirement**<br>**Plan** | **Pension Plans and**<br>**Postretirement**<br>**Plan** | **Pension Plans and**<br>**Postretirement**<br>**Plan** |
|  | **June 30,** | **June 30,** | **June 30,** |
|  | **2022** | **2021** | **2020** |
|  Balance at beginning of period | $(33598) | $(31108) | $(33378) |
|  Other comprehensive income (loss): |  |  |  |
|  Other comprehensive loss before reclassifications |  |  | (45) |
|  Amounts reclassified from accumulated other comprehensive loss *<sup>(a)</sup>* | (1385) | (2951) | 1409 |
|  Income tax benefit | 243 | 461 | (488) |
|  Other comprehensive income (loss), total | (1142) | (2490) | 876 |
|  Adjustment related to the transfer of Pension Plans and Postretirement Plan liabilities as a result of the 2020 Entertainment Distribution |  |  | $1394 |
|  Balance at end of period | $(34740) | $(33598) | $(31108) |

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*<sup>(a)</sup>* *Amounts reclassified from accumulated other comprehensive loss represent curtailments, settlement losses recognized, the amortization of net actuarial gain (loss) and net unrecognized prior service credit included in net periodic benefit cost, which is reflected under Other income (expense), net in the accompanying combined statements of operations (see Note 15, Pension Plans and Other Postretirement Benefit Plans).* 

**Note 18. Income Taxes** 

During the periods presented in the combined financial statements, the Company did not file separate tax returns. The Company was included in the federal and state income tax returns of MSG Entertainment for all periods presented. The income tax expense or benefit presented has been determined on a separate return basis as if the Company filed a separate income tax return.

The separate return method applies the accounting guidance for income taxes to the financial statements as if the Company was a separate taxpayer. The Company believes the assumptions supporting its allocation and

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

presentation of income taxes on a separate return basis are reasonable. One of these assumptions is that the Company on a stand-alone basis will not benefit from certain tax incentives that historically benefited MSG Entertainment. However, the taxes recognized in the combined financial statements and resulting effective tax rates may not be reflective of the taxes that the Company expects to recognize in the future as a stand-alone entity.

Income tax expense is comprised of the following components:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** |
|  | **2022** | **2021** | **2020** |
|  Current (expense) benefit: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal | $515 | $(2536) | $(41526) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State and other | (220) | (2247) | (41227) |
|  | 295 | (4783) | (82753) |
|  Deferred (expense) benefit: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal | (4711) | (15658) | (14408) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State and other | 4486 | 15092 | (3021) |
|  | (225) | (566) | (17429) |
|  Income tax (expense) benefit | $70 | $(5349) | $(100182) |

---

The income tax (expense) benefit differs from the amount derived by applying the statutory federal rate to pre-tax income (loss) principally due to the effect of the following items:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** |
|  | **2022** | **2021** | **2020** |
|  Federal tax (expense) benefit at statutory federal rate | $28617 | $44931 | $(56877) |
|  State income taxes, net of federal benefit | 12141 | 22882 | (33345) |
|  Change in valuation allowance | (31679) | (70501) | 558 |
|  Change in the estimated applicable tax rate used to determine deferred taxes |  | 2545 |  |
|  Nondeductible transaction costs |  |  | (7120) |
|  GAAP income of consolidated partnership attributable to non-controlling interest | (601) | (146) | (224) |
|  Nondeductible officers' compensation | (8125) | (5209) | (4407) |
|  Nondeductible expenses | (373) | (285) | (349) |
|  Excess tax benefit related to share-based payment awards | 93 | 1088 | 2322 |
|  Other, net | (3) | (654) | (740) |
|  Income tax (expense) benefit | $70 | $(5349) | $(100182) |

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

The tax effects of temporary differences which give rise to significant portions of the deferred tax assets and liabilities at June 30, 2022 and 2021 are as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30,** | **June 30,** |
|  | **2022** | **2021** |
|  Deferred tax assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net operating losses (NOLs) | $102273 | $76052 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued employee benefits | 29440 | 20743 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted stock units and stock options | 12452 | 12263 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue |  | 31609 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right-of-use lease assets and lease liabilities, net | 7482 | 7616 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred interest | 24950 | 9296 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and equipment | 16327 | 2487 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net |  | 2113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total gross deferred tax assets | $192924 | $162179 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less valuation allowance | (151043) | (119135) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net deferred tax assets | $41881 | $43044 |
|  Deferred tax liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangibles and other assets | $(40069) | $(39810) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | (10107) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | (4874) | (4055) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments | (3377) | (22449) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | (6707) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deferred tax liabilities | $(65134) | $(66314) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net deferred tax liability | $(23253) | $(23270) |

---

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax asset will not be realized. The Company's ability to realize its deferred tax assets depends upon the generation of sufficient future taxable income to allow for the utilization of its NOLs and future deductible temporary differences. As of June 30, 2022, based on current facts and circumstances, management believes that it is more likely than not that the Company will not realize the benefit for a portion of its net deferred tax assets. Accordingly, a valuation allowance has been recorded.

The federal NOL carryforward as of June 30, 2022 is $284,470. The NOL has an unlimited carryforward period. The Company's historical combined financial statements for periods prior to the Distribution reflect NOLs and tax credits calculated on a separate return basis. These NOL carryforwards were calculated as if the Company operated as a separate stand-alone entity. Because the Distribution involves a spin-off of the Company, substantially all of the NOLs and tax credits did not carry over to the Company.

Income tax payments, net of refunds, were $8,956, $15,526 and $54 for Fiscal Years 2022, 2021 and 2020, respectively.

**Note 19. Related Party Transactions** 

Members of the Dolan family, including trusts for the benefit of members of the Dolan family (collectively, the "Dolan Family Group") are the controlling stockholders of the Company, MSG Entertainment including its MSG Networks and TAO Group Hospitality subsidiaries, MSG Sports, and AMC Networks Inc. ("AMC Networks").

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

**Current Related Party Arrangements** 

The Company is party to the following agreements and/or arrangements with MSG Sports:

• Arena License Agreements pursuant to which the Company (i) provides MSG Sports the right to use The Garden
for games of the Knicks and Rangers for a 35-year term in exchange for venue license fees, (ii) shares revenues collected for suite licenses, (iii) operates and manages the sale of the sports teams
merchandise at The Garden for a commission, (iv) operates and manages the sale of food and beverage sales and catering services during the Knicks and Rangers games for a portion of net profits (as defined under the Arena License Agreements),
(v) provides day of game services that were historically provided prior to the 2020 Entertainment Distribution, and (vi) provides other general services within The Garden. Refer to the below discussion on the venue usage cost allocation prior
to the 2020 Entertainment Distribution;

• Sponsorship sales and service representation agreements pursuant to which the Company has the exclusive right and
obligation to sell MSG Sports' sponsorships for an initial stated term of ten years for a commission;

• A team sponsorship allocation agreement, pursuant to which MSG Sports continues receiving an allocation of
sponsorship and signage revenues associated with the sponsorship agreements that existed at the 2020 Entertainment Distribution Date;

• Transition services agreement (the "TSA") pursuant to which the Company provides certain corporate and
other transition services to MSG Sports, such as information technology, security, accounts payable, payroll, tax, certain legal functions, human resources, insurance and risk management, government affairs, investor relations, corporate
communications, benefit plan administration and reporting, and internal audit functions as well as certain marketing functions, in exchange for service fees. MSG Sports also provides certain transition services to the Company, including certain
legal functions, communications, ticket sales and certain operational and marketing services, in exchange for service fees;

• Sublease agreement, pursuant to which the Company subleases office space to MSG Sports;

• Group ticket sales representation agreement, pursuant to which the Company appointed MSG Sports as its sales and
service representative to sell group ticket packages related Company events in exchange for a commission;

• Single night rental commission agreement, pursuant to which MSG Sports may, from time to time, sell (or make
referrals for sales of) licenses for the use of suites at The Garden for individual Company events in exchange for a commission;

• Aircraft time sharing agreements (discussed below); and;

• Other agreements with MSG Sports entered into in connection with the 2020 Entertainment Distribution such as a
distribution agreement, a tax disaffiliation agreement, an employee matters agreement, a trademark license agreement and certain other arrangements.

In addition, the Company has various agreements with MSG Networks including an advertising sales representation agreement and a services agreement (the "MSG Networks Services Agreement"), which have historically been cash settled. Pursuant to the advertising sales representation agreement, the Company has the exclusive right and obligation to sell advertising on behalf of MSG Networks in exchange for a commission. Pursuant to the MSG Networks Services Agreement, the Company provides certain services to MSG Networks, such as information technology, accounts payable and payroll, human resources, and other corporate functions, as well as the executive support services described below, in exchange for service fees. MSG Networks also provides certain services to the Company, in exchange for service fees.

Further, the Company shares certain executive support costs, including office space, executive assistants, security and transportation costs, for (i) the Company's Executive Chairman and Chief Executive Officer with

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

MSG Entertainment and MSG Sports and (ii) the Company's Vice Chairman with MSG Entertainment, MSG Sports and AMC Networks. Prior to April 1, 2022, the Company also shared costs for the Company's former President with MSG Entertainment and MSG Sports.

The Company is a party to various aircraft arrangements. Pursuant to certain Aircraft Support Services Agreements (the "Support Agreements"), the Company provides certain aircraft support services to entities controlled by (i) Charles F. Dolan, a director, and certain of his children, who are siblings of James L. Dolan, the Company's Executive Chairman, Chief Executive Officer and a director, specifically: Thomas C. Dolan (a director of MSG Entertainment), Deborah Dolan-Sweeney, Patrick F. Dolan, Marianne Dolan Weber (a director of MSG Entertainment), and Kathleen M. Dolan, and (ii) Patrick F. Dolan, the son of Charles F. Dolan and brother of James L. Dolan.

The Company is party to reciprocal time sharing/dry lease agreements with Charles F. Dolan and Sterling2k LLC (collectively, "CFD"), an entity owned and controlled by Deborah Dolan-Sweeney, the daughter of Charles F. Dolan and the sister of James L. Dolan, pursuant to which the Company has agreed from time to time to make its aircraft available to CFD and CFD has agreed from time to time to make its aircraft available to the Company. Pursuant to the terms of the agreements, CFD may lease on a non-exclusive, "time sharing" basis, certain Company aircraft.

The Company is also party to a dry lease agreement and a time sharing agreement with Brighid Air, LLC ("Brighid Air"), a company owned and controlled by Patrick F. Dolan, the son of Charles F. Dolan and the brother of James L. Dolan, pursuant to which Brighid Air has agreed from time to time to make its Bombardier BD100-1A10 Challenger 350 aircraft (the "Challenger") available to the Company on a non-exclusive basis. In connection with the dry lease agreement, the Company also entered into a Flight Crew Services Agreement (the "Flight Crew Agreement") with Dolan Family Office, LLC ("DFO"), an entity owned and controlled by Charles F. Dolan, pursuant to which the Company may utilize pilots employed by DFO for purposes of flying the Challenger when the Company is leasing that aircraft under the Company's dry lease agreement with Brighid Air.

Prior to December 21, 2021, the Company was also party to (i) a reciprocal time sharing/dry lease agreement with Quart 2C, LLC ("Q2C"), a company controlled by James L. Dolan and Kristin A. Dolan, his spouse and a director of MSG Entertainment, pursuant to which the Company from time to time made its aircraft available to Q2C, and Q2C, from time to time made its aircraft available to the Company, and (ii) an aircraft support services agreement with an entity controlled by James L. Dolan, pursuant to which the Company provided certain aircraft support services. These agreements were no longer effective as of December 21, 2021.

The Company and each of MSG Sports and AMC Networks are party to certain aircraft time sharing agreements, pursuant to which the Company has agreed from time to time to make aircraft available to MSG Sports and/or AMC Networks for lease on a "time sharing" basis. Additionally, the Company, MSG Sports and AMC Networks have agreed on an allocation of the costs of certain aircraft and helicopter use by their shared executives.

In addition to the aircraft arrangements described above, certain executives of the Company are party to aircraft time sharing agreements, pursuant to which the Company has agreed from time to time to make certain aircraft available for lease on a "time sharing" basis for personal use in exchange for payment of actual expenses of the flight (as listed in the agreement).

From time to time the Company enters into arrangements with 605, LLC. James L. Dolan, the Company's Executive Chairman, Chief Executive Officer and a director, and his spouse, Kristin A. Dolan (a director of MSG Entertainment), own 50% of 605, LLC. Kristin A. Dolan is also the founder and Chief Executive Officer of 605, LLC. 605, LLC provides audience measurement and data analytics services to the Company and its subsidiaries in the ordinary course of business.

As of June 30, 2022 and 2021, BCE had $637 and $637, respectively, of notes payable with respect to a loan received by BCE from its noncontrolling interest holder.

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**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

*<u>Revenues and Operating Expenses</u>* 

The following table summarizes the composition and amounts of the transactions with the Company's affiliates. The significant components of these amounts are discussed below. These amounts are reflected in revenues and operating expenses in the accompanying combined statements of operations for Fiscal Years 2022, 2021 and 2020:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended June 30,** | **Years Ended June 30,** | **Years Ended June 30,** |
|  | **2022** | **2021** | **2020** |
|  Revenues | $115370 | $51657 | $18955 |
|  Operating expenses (credits): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue sharing expenses | 17279 | 558 | 110002 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allocation of charges for venue usage to MSG Sports |  |  | (46072) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reimbursement under Arena License Arrangements | (25827) | (9717) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost reimbursement from MSG Sports | (38254) | (36502) | (116946) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate allocations to MSG Entertainment | (161189) | (100942) | (82506) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other operating expenses, net | 4995 | 4041 | 794 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses (credits), net *(a)* | $(202996) | $(142562) | $(134728) |

---

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*<sup>(a)</sup>* *Of the total operating expenses, net, $(9347), $(930) and $71,722 for Fiscal Years 2022, 2021 and 2020, respectively, are included in direct operating expenses in the accompanying combined statements of operations, and $(193649), $(141632) and $(206450) for Fiscal Years 2022, 2021 and 2020, respectively, are included as net credits in selling, general and administrative expenses.* 

*Revenues* 

Through Fiscal Year 2022, the Knicks and the Rangers played a total of 98 home games at The Garden and the Company recorded $68,072 of revenues under the Arena License Agreements for Fiscal Year 2022. In addition, the Company recorded revenues under sponsorship sales and service representation agreements with MSG Sports of $17,570, and merchandise sharing revenues with MSG Sports of $4,412 for Fiscal Year 2022. The Company recorded revenues under the advertising sales representation agreement with MSG Networks of $20,878 for Fiscal Year 2022. The Company also earned $2,444 of sublease revenue from related parties during Fiscal Year 2022.

Through Fiscal Year 2021, the Knicks and the Rangers played a total of 69 home games at The Garden and the Company recorded $21,345 of revenues under the Arena License Agreements for Fiscal Year 2021. In addition, the Company recorded revenues under sponsorship sales and service representation agreements with MSG Sports of $13,584 for Fiscal Year 2021. The Company recorded revenues under the advertising sales representation agreement with MSG Networks of $13,698 for Fiscal Year 2021. The Company also earned $2,450 of sublease revenue from related parties during Fiscal Year 2021.

Through Fiscal Year 2020, the Company recorded revenues under sponsorship sales and service representation agreements with MSG Sports of $4,330. The Company recorded revenues under the advertising sales representation agreement with MSG Networks of $12,653 for Fiscal Year 2020.

*Operating Expenses* 

*Revenue sharing expenses* 

Revenue sharing expenses include MSG Sports' share of the Company's in-venue food and beverage sales and certain venue signage agreements, and, prior to the 2020 Entertainment Distribution, other amounts specifically identified where possible or allocated proportionally.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

*Allocation of Charges for Venue Usage to MSG Sports and Reimbursements under Arena License Arrangements* 

For purposes of the Company's combined financial statements prior to the 2020 Entertainment Distribution, the Company allocated to MSG Sports certain expenses for the usage of The Garden, which were reported as a reduction of direct operating expense in the accompanying combined statements of operations.

After the 2020 Entertainment Distribution, fees recognized by the Company under the Arena License Agreements with MSG Sports for use of The Garden are reported as operating lease revenues in accordance with ASC Topic 842. Because The Garden was closed by government mandate, the Company did not recognize operating lease revenue under the Arena License Agreements for the quarter ended September 30, 2020. Starting December 2020, the Garden reopened for games of the Knicks and the Rangers and the Company recorded $68,072 and $21,345 of revenues under the Arena License Agreements for Fiscal Years 2022 and 2021, respectively. In addition, the Company recorded credits to direct operating expenses as a reimbursement under the Arena License Agreements of $25,827 and $9,717 for Fiscal Years 2022 and 2021, respectively. No credits were recorded for Fiscal Year 2020.

*Cost reimbursement from MSG Sports* 

Per the TSA described above, the Company's corporate overhead expenses that are charged to MSG Sports are primarily related to centralized functions, including information technology, security, accounts payable, payroll, tax, legal, human resources, insurance and risk management, investor relations, corporate communications, benefit plan administration and reporting, and internal audit.

Prior to the 2020 Entertainment Distribution, allocations of corporate overhead and shared services expense were recorded by both MSG Entertainment, and in turn by the Company, and MSG Sports for corporate and operational functions based on direct usage or the relative proportion of revenue, headcount or other measures of MSG Entertainment or MSG Sports.

*Corporate allocations to MSG Entertainment* 

As part of the Distribution, certain corporate and operational support functions are being transferred to the Company and therefore, charges were reflected in order to properly burden all business units comprising MSG Entertainment's historical operations. Allocations of corporate overhead and shared services expense to MSG Entertainment from the Company were recorded for corporate and operational functions based on direct usage when identifiable, with the remainder allocated on a pro rata basis of combined assets, headcount or other measures of the Company or MSG Entertainment, which is recorded as a reduction of either direct operating expenses or selling, general and administrative expense. The aforementioned allocations for certain support functions that are provided on a centralized basis and not historically recorded at the business unit level by MSG Entertainment and MSG Sports (for the period from July 1, 2019 to April 17, 2020), related to departments such as executive management, finance, legal, human resources, government affairs, and information technology, among others. In addition, corporate allocations to MSG Entertainment include charges to MSG Networks under the MSG Networks Services Agreement.

*Other Operating Expenses, net* 

The Company and its related parties enter into transactions with each other in the ordinary course of business. Amounts charged to the Company for other transactions with its related parties are net of amounts charged by the Company to the Knickerbocker Group, LLC, an entity owned by James L. Dolan, the Executive Chairman, Chief Executive Officer and a director of the Company, for office space and the cost of certain

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**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

technology services. In addition, other operating expenses primarily include net charges relating to (i) reciprocal aircraft arrangements between the Company and each of Q2C and CFD, (ii) time sharing and/or dry lease agreements with MSG Sports, AMC Networks and Brighid Air, (iii) commission under the group ticket sales representation agreement with MSG Sports, and (iv) expenses for advertising and promotional services rendered by MSG Networks. The reciprocal aircraft arrangement between the Company and Q2C and the related aircraft support services arrangement between them was no longer effective as of December 21, 2021.

*Loans Receivable from MSG Entertainment* 

The Company's captive insurance entity, Eden Insurance Company, Inc. ("Eden"), entered into a loan agreement with MSG Entertainment (the "Eden Loan Agreement"), under which Eden granted MSG Entertainment an unsecured loan bearing interest at a rate of LIBOR plus 350 basis points with a principal amount not exceeding $60,000. This loan is in the form of a demand promissory note, payable immediately upon order from Eden. As of June 30, 2022 and 2021, Eden had an outstanding loan receivable from MSG Entertainment of $56,060 and $57,962, respectively, inclusive of accrued interest. During Fiscal Year 2022, Eden declared and paid dividends to MSG Entertainment through a reduction of the loan receivable from MSG Entertainment. During Fiscal Year 2021, no interest or principal payments were received by Eden. Instead, the accrued but unpaid interest was added to the outstanding principal amount of the loan. The cash flows related to this loan receivable are reflected as investing activities, as these balances represent amounts loaned by the Company to MSG Entertainment. The Company expects that the outstanding loan payable will be transferred by MSG Entertainment to the Company prior to the Distribution. The Company recorded related party interest income of $2,117, $1,888 and $2,798 related to the Eden Loan Agreement in Fiscal Years 2022, 2021 and 2020.

On May 23, 2019, the Company entered into a subordinated credit agreement with TAO Group Sub-Holdings, LLC ("TAOG Sub-Holdings"), a wholly-owned subsidiary of MSG Entertainment (the "TAO Subordinated Credit Agreement"), under which the Company granted TAOG Sub-Holdings a $49,000 subordinated loan. This loan had a maturity date of August 22, 2024. On June 15, 2020, the TAO Subordinated Credit Agreement was amended to provide an additional $22,000 of borrowing capacity. The Company provided additional proceeds of $14,000 and $5,000 during Fiscal Years 2021 and 2020, respectively, under the TAO Subordinated Credit Agreement. There are no mandatory repayments of principal until the maturity date. Subject to customary notice and minimum amount conditions, TAOG Sub-Holdings can voluntarily prepay outstanding loans under the TAO Subordinated Credit Agreement at any time, in whole or in part, without premium or penalty. Interest is due monthly in cash or paid-in-kind based on the terms of the TAO Senior Credit Agreement. During Fiscal Year 2020, on behalf of TAOG Sub-Holdings, MSG Entertainment made a voluntary principal payment and interest payments of $5,000 and $3,546, respectively. As of June 30, 2021, the Company had an outstanding loan receivable from MSG Entertainment related to this loan of $66,902, inclusive of accrued interest, and on June 9, 2022, MSG Entertainment paid the full outstanding principal amount of this TAO Subordinated Credit Agreement. The cash flows related to this loan receivable are reflected as investing activities, as these balances represent amounts loaned by the Company to MSG Entertainment. The Company recorded related party interest income of $4,420, $4,525 and $4,531 related to the TAO Subordinated Credit Agreement in Fiscal Years 2022, 2021 and 2020.

*<u>Cash Management</u>*

MSG Entertainment uses a centralized approach to cash management and financing of operations. The Company's and MSG Entertainment's other subsidiaries' cash was available for use and was regularly "swept" historically. Cash and cash equivalents was attributed to the Company for each of the periods presented, as such cash was held in accounts legally owned by the Company. Transfers of cash both to and from MSG Entertainment were included as components of MSG Entertainment's Investment on the combined statements of

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO COMBINED FINANCIAL STATEMENTS (Continued)** 

divisional equity (deficit). The main components of the net transfers (to)/from MSG Entertainment are cash pooling/general financing activities, various expense allocations to/from MSG Entertainment, and receivables/payables from/(to) MSG Entertainment deemed to be effectively settled upon the distribution of the Company by MSG Entertainment.

*<u>MSG Entertainment Investment</u>*

Certain significant balances and transactions among the Company and MSG Entertainment and its subsidiaries, which include allocations of corporate general and administrative expenses, share-based compensation expense and other historical intercompany activities, are recorded as components of Divisional Equity (Deficit), except for the transactions noted above related to historically cash-settled loans between the Company and MSG Entertainment. The changes in MSG Entertainment Investment also include financing activities for capital transfers, cash sweeps, and other treasury services. As part of this activity, cash balances are swept to MSG Entertainment regularly as part of the MSG Entertainment cash management policy.

**Note 20. Concentrations of Risk** 

As of June 30, 2022, approximately 4,200 full-time and part-time employees, who represent approximately 63% of the Company's workforce, are subject to CBAs. Approximately 7% are subject to CBAs that expired as of June 30, 2022 and approximately 47% are subject to CBAs that will expire by June 30, 2023, if they are not extended prior thereto.

**Note 21. Subsequent Events** 

The Company evaluated subsequent events for the period from June 30, 2022 through January 13, 2023, the date the combined financial statements were available for issuance. On December 2, 2022, the Company sold its 85% controlling interest in BCE for approximately $10,000. Additionally, on December 30, 2022, the Company sold a corporate aircraft for approximately $20,400.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**SCHEDULE II** 

**VALUATION AND QUALIFYING ACCOUNTS** 

**(in thousands)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | **(Additions) / Deductions** | **(Additions) / Deductions** | | |
|  |<br>**Balance at**<br>**Beginning**<br>**of Period** | **Charged to**<br>**Costs and**<br>**Expenses** | **Charged to**<br>**Other**<br>**Accounts** |<br>**Deductions** |<br>**Balance at**<br>**End of**<br>**Period** |
|  Year Ended June 30, 2022 |  |  |  |  |  |
|  Allowance for doubtful accounts / credit losses | $(4167) | $(166) | $— | $623 | $(3710) |
|  Deferred tax valuation allowance | (119135) | (31679) | (229) |  | (151043) |
|  | $(123302) | $(31845) | $(229) | $623 | $(154753) |
|  Year Ended June 30, 2021 |  |  |  |  |  |
|  Allowance for doubtful accounts / credit losses | $(3926) | $(887) | $— | $646 | $(4167) |
|  Deferred tax valuation allowance | (39030) | (70501) | (9604) |  | (119135) |
|  | $(42956) | $(71388) | $(9604) | $646 | $(123302) |
|  Year Ended June 30, 2020 |  |  |  |  |  |
|  Allowance for doubtful accounts / credit losses | $(1814) | $(3568) | $— | $1456 | $(3926) |
|  Deferred tax valuation allowance | (15409) | 558 | (24179) |  | (39030) |
|  | $(17223) | $(3010) | $(24179) | $1456 | $(42956) |

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**CONDENSED COMBINED BALANCE SHEETS (Unaudited)** 

**(in thousands)** 

---

| | | |
|:---|:---|:---|
|  | **December 31,<br>2022** | **June 30,<br>2022** |
|  **ASSETS** |  |  |
|  Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash, cash equivalents and restricted cash | $153746 | $62573 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net | 100820 | 102501 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related party receivables, current | 95064 | 96938 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 69686 | 79441 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 419316 | 341453 |
|  Property and equipment, net | 649962 | 696079 |
|  Right-of-use lease assets | 255024 | 271154 |
|  Goodwill | 69041 | 69041 |
|  Intangible assets, net | 63801 | 65439 |
|  Other non-current assets | 91817 | 83535 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $1548961 | $1526701 |
|  **LIABILITIES AND DIVISIONAL EQUITY (DEFICIT)** |  |  |
|  Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable, accrued and other current liabilities | $176287 | $221961 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related party payables, current | 70379 | 72683 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of long-term debt | 16250 | 8762 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities, current | 36623 | 39006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 188842 | 202678 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 488381 | 545090 |
|  Long-term debt, net of deferred financing costs | 648397 | 654912 |
|  Operating lease liabilities, non-current | 238015 | 254114 |
|  Deferred tax liabilities, net | 23386 | 23253 |
|  Other non-current liabilities | 51893 | 50921 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 1450072 | 1528290 |
|  Commitments and contingencies (see Note 9) |  |  |
|  Spinco Divisional Equity (Deficit): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MSG Entertainment investment | 133018 | 33265 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (34129) | (34740) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Spinco divisional equity (deficit) | 98889 | (1475) |
|  Nonredeemable noncontrolling interest |  | (114) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and divisional equity (deficit) | $1548961 | $1526701 |

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See accompanying notes to the unaudited condensed combined financial statements.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**CONDENSED COMBINED STATEMENTS OF OPERATIONS (Unaudited)** 

**(in thousands)** 

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended**<br>**December 31,** | **Six Months Ended**<br>**December 31,** |
|  | **2022** | **2021** |
|  Revenues *<sup>(a)</sup>* | $502332 | $281162 |
|  Operating expenses: *<sup>(a)</sup>* |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct operating expenses | 282265 | 182236 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selling, general and administrative expenses | 83415 | 81698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 31571 | 33159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains, net on dispositions | (4412) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring charges | 7359 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating income (loss) | 102134 | (15931) |
|  Other income (expense): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income *<sup>(a)</sup>* | 3322 | 3604 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (24632) | (26795) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other income (expense), net | (1286) | (19247) |
|  | (22596) | (42438) |
|  Income (loss) from operations before income taxes | 79538 | (58369) |
|  Income tax (expense) benefit | (731) |  |
|  Net income (loss) | 78807 | (58369) |
|  Less: Net loss attributable to nonredeemable noncontrolling interest | (553) | (367) |
|  Net income (loss) attributable to Spinco's stockholders | $79360 | $(58002) |

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*<sup>(a)</sup>* *See Note 14, Related Party Transactions, for further information on related party arrangements* 

See accompanying notes to the unaudited condensed combined financial statements.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**CONDENSED COMBINED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)** 

**(in thousands)** 

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended<br>December 31,** | **Six Months Ended<br>December 31,** |
|  | **2022** | **2021** |
|  Net income (loss) | $78807 | $(58369) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive income (loss), before income taxes: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pension plans and postretirement plans: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of net actuarial loss included in net periodic benefit cost | 742 | 743 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive income (loss), before income taxes | 742 | 743 |
|  Income tax benefit (expense) related to items of other comprehensive income | (131) | (131) |
|  Other comprehensive income (loss), net of income taxes | 611 | 612 |
|  Comprehensive income (loss) | 79418 | (57757) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Comprehensive loss attributable to nonredeemable noncontrolling interest | (553) | (367) |
|  Comprehensive income (loss) attributable to MSGE Spinco, Inc. | $79971 | $(57390) |

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See accompanying notes to the unaudited condensed combined financial statements.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**CONDENSED COMBINED STATEMENTS OF CASH FLOWS (Unaudited)** 

**(in thousands)** 

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended**<br>**December 31,** | **Six Months Ended**<br>**December 31,** |
|  | **2022** | **2021** |
|  Cash flows from operating activities: |  |  |
|  Net income (loss) | $78807 | $(58369) |
|  Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 31571 | 33159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation expense | 16258 | 21079 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred financing costs | 1613 | 3392 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related party paid in kind interest | (1804) | (1855) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized (gain) loss on equity investments with readily determinable fair value | 3203 | 19615 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of right-of-use assets | 6756 | 5184 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains, net on dispositions | (4412) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other non-cash adjustment | 15 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net | 1987 | (36892) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related party receivables, net of payables | 6732 | 17114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current and non-current assets | (5606) | (15058) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable, accrued and other current and non-current liabilities | (44140) | 39417 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | (12758) | 34068 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease right-of-use assets and lease liabilities | (8886) | (2677) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities | $69336 | $58177 |
|  Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital expenditures | (9208) | (7236) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from dispositions, net | 27904 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Purchase) / proceeds from sale of investments | 3694 | (250) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from loan receivable |  | 4695 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) investing activities | $22390 | $(2791) |

---

See accompanying notes to the unaudited condensed combined financial statements.

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**MSGE SPINCO, INC.** 

**CONDENSED COMBINED STATEMENTS OF CASH FLOWS (Unaudited)** 

**(in thousands)** 

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended**<br>**December 31,** | **Six Months Ended**<br>**December 31,** |
|  | **2022** | **2021** |
|  Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Principal repayments on long-term debt | $— | $(3250) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net transfers to MSG Entertainment and MSG Entertainment's subsidiaries | (553) | (138446) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in financing activities | $(553) | $(141696) |
|  Net increase (decrease) in cash, cash equivalents and restricted cash | 91173 | (86310) |
|  Cash, cash equivalents and restricted cash at beginning of period | 62573 | 318069 |
|  Cash, cash equivalents and restricted cash at end of period | $153746 | $231759 |
|  **Non-cash investing and financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital expenditures incurred but not yet paid | $402 | $125 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash reduction of loan receivable from related party | $5350 | $4019 |

---

See accompanying notes to the unaudited condensed combined financial statements.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**CONDENSED COMBINED STATEMENTS OF DIVISIONAL EQUITY (DEFICIT) (Unaudited)** 

**(in thousands)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **MSG<br>Entertainment<br>Investment** | **Accumulated Other<br>Comprehensive<br>Income (Loss)** | **Total Spinco<br>Divisional<br>Equity (Deficit)** | **Nonredeemable**<br>**Noncontrolling**<br>**Interest** | **Total<br>Divisional<br>Equity<br>(Deficit)** |
|  **Balance as of June 30, 2022** | $**33265** | $**(34740)** | $**(1475)** | $**(114)** | $**(1589)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | 79360 |  | 79360 | (553) | 78807 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive income |  | 611 | 611 |  | 611 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BCE disposition |  |  |  | 667 | 667 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Comprehensive income |  |  | 79971 | 114 | 80085 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase in MSG Entertainment Investment | 20393 |  | 20393 |  | 20393 |
|  **Balance as of December 31, 2022** | $**133018** | $**(34129)** | $**98889** | $**—** | $**98889** |
|  **Balance as of June 30, 2021** | $**529500** | $**(33598)** | $**495902** | $**2750** | $**498652** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss | (58002) |  | (58002) | (367) | (58369) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive income |  | 612 | 612 |  | 612 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Comprehensive loss |  |  | (57390) | (367) | (57757) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net decrease in MSG Entertainment Investment | (113463) |  | (113463) |  | (113463) |
|  **Balance as of December 31, 2021** | $**358035** | $**(32986)** | $**325049** | $**2383** | $**327432** |

---

See accompanying notes to the unaudited condensed combined financial statements.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO CONDENSED COMBINED FINANCIAL STATEMENTS (UNAUDITED)** 

All amounts included in the following Notes to Condensed Combined Financial Statements (unaudited) are presented in thousands, except as otherwise noted.

**Note 1. Description of Business and Basis of Presentation** 

*The Proposed Distribution* 

On December 6, 2022, the board of directors of Madison Square Garden Entertainment Corp. ("MSG Entertainment") authorized MSG Entertainment management to explore a potential tax-free spin-off of the traditional live entertainment business from the MSG Sphere, MSG Networks, and Tao Group Hospitality businesses, and approved the filing of a Form 10 registration statement and amendments thereto.

MSGE Spinco, Inc. ("Spinco" or the "Company") was incorporated in the state of Delaware on September 15, 2022 to be the company to hold the traditional live entertainment business of MSG Entertainment. In the first step of the transaction, record holders of MSG Entertainment Class A and Class B common stock would receive a pro-rata distribution expected to be equivalent, in aggregate, to approximately 67% of the economic interest in the Company (the "Distribution"). The remaining approximately 33% economic interest in the Company would be retained by MSG Entertainment, subject to completion of the Distribution. Completion of the Distribution is subject to various conditions, including final approval by the board of directors of MSG Entertainment, receipt of a tax opinion from counsel and the filing and effectiveness of the registration statement with the SEC (defined below). References to "Spinco" or the "Company" include the subsidiaries of MSG Entertainment that will be subsidiaries of the Company at the time of the Distribution. MSG Entertainment will be required by applicable tax rules to dispose of the retained interest within a fixed period of time, which may occur through a series of steps including sales, exchange offers or pro rata distributions. MSG Entertainment expects to dispose of such retained interest within one year of the date of the Distribution, subject to market conditions.

*Description of Business* 

The Company is a live entertainment company, comprised of iconic venues, and marquee entertainment content. Utilizing the Company's powerful brands and live entertainment expertise, the Company delivers unique experiences that set the standard for excellence and innovation while forging deep connections with diverse and passionate audiences. The Company is comprised of one reportable segment. As of December 31, 2022, there have been no changes to the reportable segment of the Company. See Note 1, Description and Basis of Presentation to the Company's audited combined financial statements as of June 30, 2022 and 2021 and for the three years ended June 30, 2022, 2021 and 2020 (the "Audited Combined Annual Financial Statements") for additional information regarding the details of the Company's business.

**Basis of Presentation** 

The Company reports on a fiscal year basis ending on June 30<sup>th</sup> ("Fiscal Year"). In these unaudited condensed combined interim financial statements, the years ended on June 30, 2023 and 2022 are referred to as "Fiscal Year 2023" and "Fiscal Year 2022," respectively.

The accompanying interim condensed combined financial statements of the Company (the "condensed combined financial statements") were prepared on a stand-alone basis derived from the consolidated financial statements and accounting records of MSG Entertainment. These financial statements reflect the combined historical results of operations, financial position and cash flows of the Company in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information, the instructions of Rule

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**MSGE SPINCO, INC.** 

**NOTES TO CONDENSED COMBINED FINANCIAL STATEMENTS (UNAUDITED)** 

10-01 of Regulation S-X of the Securities and Exchange Commission ("SEC"), and SEC Staff Accounting Bulletin (SAB) Topic 1-B, *Allocation of Expenses and Related Disclosure in Financial Statements of Subsidiaries, Divisions or Lesser Business Components of Another Entity*, and should be read in conjunction with the Company's Audited Combined Annual Financial Statements. References to U.S. GAAP issued by the Financial Accounting Standards Board ("FASB") in these footnotes are to the *FASB Accounting Standards Codification,* also referred to as "ASC."

Historically, separate financial statements have not been prepared for the Company and it has not operated as a stand-alone business from MSG Entertainment. The condensed combined financial statements include certain assets and liabilities that have historically been held by MSG Entertainment or by other MSG Entertainment subsidiaries but are specifically identifiable or otherwise attributable to the Company. The condensed combined financial statements are presented as if the Company's businesses had been combined for all periods presented. The assets and liabilities in the condensed combined financial statements have been reflected on a historical cost basis, as immediately prior to the Distribution of all of the assets and liabilities presented are wholly owned by MSG Entertainment and are being transferred to the Company at a carry-over basis.

The condensed combined statements of operations include allocations for certain support functions that are provided on a centralized basis and not historically recorded at the business unit level by MSG Entertainment, such as expenses related to executive management, finance, legal, human resources, government affairs, and information technology, among others. As part of the Distribution, certain corporate and operational support functions are being transferred to the Company and therefore, charges were reflected in order to properly burden all business units comprising MSG Entertainment's historical operations. These expenses have been allocated to MSG Entertainment on the basis of direct usage when identifiable, with the remainder allocated on a pro rata basis of combined assets, headcount or other measures of the Company or MSG Entertainment, which are recorded as a reduction of either direct operating expenses or selling, general and administrative expenses.

Management believes the assumptions underlying the condensed combined financial statements, including the assumptions regarding allocating general corporate expenses, are reasonable. Nevertheless, the condensed combined financial statements may not include all of the actual expenses that would have been incurred by the Company and may not reflect its combined results of operations, financial position and cash flows had it been a stand-alone company during the periods presented. Actual costs that would have been incurred if the Company had been a stand-alone company would depend on multiple factors, including organizational structure and strategic decisions made in various areas, including information technology and infrastructure. The Company is unable to quantify the amounts that it would have recorded during the historical periods on a stand-alone basis as it is not practicable to do so. See Note 14, Related Party Transactions for more information regarding allocations of certain costs from the Company to MSG Entertainment.

MSG Entertainment uses a centralized approach to cash management and financing of operations. Cash is managed centrally with net earnings reinvested and working capital requirements met from existing liquid funds. The Company's cash in excess of minimum liquidity requirements under the credit facilities was available for use and was regularly "swept" historically. Cash and cash equivalents were attributed to the Company for each of the periods presented, as such cash was held in accounts legally owned by the Company. See Note 10, Credit Facilities for more information regarding the Company's debt facilities. Transfers of cash both to and from MSG Entertainment are included as components of MSG Entertainment investment on the condensed combined statements of divisional equity (deficit).

MSG Entertainment's net investment in the Company has been presented as a component of divisional equity (deficit) in the condensed combined financial statements. Distributions made by MSG Entertainment to

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO CONDENSED COMBINED FINANCIAL STATEMENTS (UNAUDITED)** 

the Company or to MSG Entertainment from the Company are recorded as transfers to and from MSG Entertainment, and the net amount is presented on the condensed combined statements of cash flows as "Net transfers to MSG Entertainment and MSG Entertainment's subsidiaries."

The condensed combined financial statements as of December 31, 2022 and for the six months ended December 31, 2022 and 2021 presented herein are unaudited; however, in the opinion of management, the accompanying financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the results for the interim periods presented. The condensed combined balance sheet as of Fiscal Year 2022 was derived from the Audited Combined Annual Financial Statements but does not contain all of the footnote disclosures from the Audited Combined Annual Financial Statements.

The results of operations for the periods presented are not necessarily indicative of the results that might be expected for future interim periods or for the full year. As a result of the production of the *Christmas Spectacular Starring the Radio City Rockettes* (the "*Christmas Spectacular*"), and arena license fees in connection with the use of Madison Square Garden ("The Garden") by the New York Knicks (the "Knicks") of the National Basketball Association (the "NBA") and the New York Rangers (the "Rangers") of the National Hockey League (the "NHL"), the Company generally earns a disproportionate share of its annual revenues in the second and third quarters of its fiscal year.

**Impact of the COVID-19 Pandemic** 

The Company's operations and operating results were not materially impacted by the COVID-19 pandemic during the six months ended December 31, 2022, as compared to the prior year period, which was impacted by (i) fewer ticketed events at our venues due to the lead-time required to book touring acts and artists, (ii) the postponement or cancellation of select bookings at our venues (including the partial cancellation of the 2021 production of the *Christmas Spectacular*), and (iii) certain regulatory requirements, including vaccination/mask requirements for our venues. See Note 1, Description of Business and Basis of Presentation to the Company's Audited Combined Annual Financial Statements for additional information regarding the impact of the COVID-19 pandemic on the Company's business.

It is unclear to what extent COVID-19 concerns, including with respect to new variants, could result in new government or league-mandated capacity restrictions or vaccination/mask requirements or impact the use of and/or demand for our venues, demand for our sponsorship and advertising assets, deter our employees and vendors from working at our venues (which may lead to difficulties in staffing) or otherwise materially impact our operations.

**Note 2. Summary of Significant Accounting Policies** 

**A. Principles of Combination** 

All significant intracompany transactions and balances within the Company's condensed combined businesses have been eliminated. Certain historical intercompany transactions between MSG Entertainment and the Company have been included as components of MSG Entertainment investment in the condensed combined financial statements, as they are to be considered effectively settled upon effectiveness of the Distribution and were not historically settled in cash. Certain other historical intercompany transactions between MSG Entertainment and the Company have been classified as related party, rather than intercompany, in the condensed combined financial statements as they were historically settled in cash. Expenses related to corporate allocations from the Company to MSG Entertainment prior to the Distribution, are considered to be effectively settled in the condensed combined financial statements at the time the transaction is recorded, with the offset recorded against MSG Entertainment investment. See Note 14, Related Party Transactions, for further information on related party arrangements.

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO CONDENSED COMBINED FINANCIAL STATEMENTS (UNAUDITED)** 

The Company disposed of its controlling interest in Boston Calling Events ("BCE") on December 2, 2022 and these condensed combined financial statements reflect the results of operations of BCE until its disposition. See Note 3, Dispositions, for details regarding the disposal.

**B. Use of Estimates** 

The preparation of the accompanying condensed combined financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the provision for credit losses, goodwill, intangible assets, other long-lived assets, deferred tax assets, pension and other postretirement benefit obligations and the related net periodic benefit cost, and other liabilities. In addition, estimates are used in revenue recognition, performance and share based compensation, depreciation and amortization, litigation matters and other matters. Management believes its use of estimates in the financial statements to be reasonable.

Management evaluates its estimates on an ongoing basis using historical experience and other factors, including the general economic environment and actions it may take in the future. The Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management's best judgment at a point in time and, as such, these estimates may ultimately differ from actual results. Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company's control could be material and would be reflected in the Company's condensed combined financial statements in future periods.

**C. Recently Issued and Adopted Accounting Pronouncements** 

*Recently Issued Accounting Pronouncements* 

No recently issued accounting pronouncements are expected to materially impact the Company's financial statements.

*Recently Adopted Accounting Pronouncements* 

In October 2021, the FASB issued Accounting Standards Update ("ASU") No. 2021-08, *Accounting for Contract Assets and Contract Liabilities From Contracts With Customers*. This ASU requires that the acquiring entity in a business combination recognize and measure contract assets and contract liabilities acquired in accordance with ASC Topic 606. This standard was adopted by the Company in the first quarter of Fiscal Year 2023. The adoption of this standard had no impact on the Company's condensed combined financial statements.

**Note 3. Dispositions** 

***Disposition of Our Interest in Boston Calling Events***

The Company entered into an agreement on December 1, 2022 to sell its controlling interest in BCE (the "BCE Disposition"). The transaction closed on December 2, 2022, resulting in a total gain on sale of $8,744, net of transaction costs. BCE meets the definition of a business under SEC Regulation S-X Rule 11-01(d)-1 and FASB ASC Topic 805 — *Business Combinations*. This disposition does not represent a strategic shift with a major effect on the Company's operations, and as such, has not been reflected as a discontinued operation under FASB ASC Subtopic 205-20 — *Discontinued Operations*. The gain on the BCE Disposition was recorded in Gains, net on dispositions in the condensed combined statements of operations.

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**MSGE SPINCO, INC.** 

**NOTES TO CONDENSED COMBINED FINANCIAL STATEMENTS (UNAUDITED)** 

***Disposition of Corporate Aircraft***

On December 30, 2022, the Company sold its owned aircraft for $20,375. In connection with the sale, the Company recognized a loss of $4,332, net of transaction costs. The loss on the aircraft disposition was recorded in Gains, net on dispositions in the condensed combined statements of operations.

**Note 4. Revenue Recognition** 

**Contracts with Customers** 

See Note 2, Summary of Significant Accounting Policies and Note 4, Revenue Recognition, to the Company's Audited Combined Annual Financial Statements for more information regarding the details of the Company's revenue recognition policies. All revenue recognized in the condensed combined statements of operations is considered to be revenue from contracts with customers in accordance with ASC Topic 606, except for revenues from the arena license agreements that require the Knicks and the Rangers to play their home games at The Garden (the "Arena License Agreements"), leases and subleases that are accounted for in accordance with ASC Topic 842.

**Disaggregation of Revenue** 

The following table disaggregates the Company's revenue by major source based upon the timing of transfer of goods or services to the customer for the six months ended December 31, 2022 and 2021.

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended**<br>**December 31,** | **Six Months Ended**<br>**December 31,** |
|  | **2022** | **2021** |
|  Event-related and entertainment offerings *<sup>(a)</sup>* | $341678 | $177492 |
|  Sponsorship, signage and suite licenses *<sup>(b)</sup>* | 107389 | 57956 |
|  Other *<sup>(c)</sup>* | 18462 | 14887 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenues from contracts with customers | 467529 | 250335 |
|  Revenues from Arena License Agreements, leases and subleases | 34803 | 30827 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenues | $502332 | $281162 |

---

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*<sup>(a)</sup>* *Event-related and entertainment offerings revenues are recognized at a point in time.* 

*<sup>(b)</sup>* *See Note 2, Summary of Significant Accounting Policies, Revenue Recognition, and Note 4, Revenue Recognition, to the Company's Audited Combined Annual Financial Statements for further details on the pattern of recognition of sponsorship, signage, and suite license revenues.* 

*<sup>(c)</sup>* *Primarily consists of (i) revenues from sponsorship sales and representation agreements with MSG Sports and (ii) advertising commission revenues recognized from MSG Networks.* 

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**MSGE SPINCO, INC.** 

**NOTES TO CONDENSED COMBINED FINANCIAL STATEMENTS (UNAUDITED)** 

In addition to the disaggregation of the Company's revenue by major source based upon the timing of transfer of goods or services to the customer disclosed above, the following table disaggregates the Company's combined revenues by type of goods or services in accordance with the required entity-wide disclosure requirements of ASC Subtopic 280-10-50-38 to 40 and the disaggregation of revenue required disclosures in accordance with ASC Subtopic 606-10-50-5 for the six months ended December 31, 2022 and 2021.

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| | | |
|:---|:---|:---|
|  | **Six Months Ended**<br>**December 31,** | **Six Months Ended**<br>**December 31,** |
|  | **2022** | **2021** |
|  Ticketing and venue license fee revenues *<sup>(a)</sup>* | $245857 | $125977 |
|  Sponsorship and signage, suite, and advertising commission revenues <sup>(b)</sup> | 137308 | 81415 |
|  Food, beverage and merchandise revenues | 81690 | 41688 |
|  Other | 2674 | 1255 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenues from contracts with customers | 467529 | 250335 |
|  Revenues from Arena License Agreements, leases and subleases | 34803 | 30827 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenues | $502332 | $281162 |

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*<sup>(a)</sup>* *Amounts include ticket sales, including other ticket-related revenue, and venue license fees from the Company's events such as (i) concerts, (ii) the presentation of the Christmas Spectacular, and (iii) other live entertainment and sporting events.* 

*<sup>(b)</sup>* *Amounts include (i) revenues from sponsorship sales and representation agreements with MSG Sports and (ii) advertising commission revenues recognized from MSG Networks.* 

***Contract Balances***

The following table provides information about contract balances from the Company's contracts with customers as of December 31, 2022 and June 30, 2022.

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| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2022** | **June 30,**<br>**2022** |
|  Receivables from contracts with customers, net *<sup>(a)</sup>* | $113090 | $106664 |
|  Contract assets, current *<sup>(b)</sup>* | $8645 | $5503 |
|  Deferred revenue, including non-current portion *<sup>(c)</sup>* | $189098 | $203256 |

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*<sup>(a)</sup>* *Receivables from contracts with customers, which are reported in Accounts receivable, net and Related party receivables, current in the Company's condensed combined balance sheets, represent the Company's unconditional rights to consideration under its contracts with customers. As of December 31, 2022 and June 30, 2022, the Company's receivables from contracts with customers above included $12,270 and $4,163, respectively, related to various related parties. See Note 14, Related Party Transactions for further details on related party arrangements.* 

*<sup>(b)</sup>* *Contract assets, which are reported as Prepaid expenses and other current assets or Other non-current assets in the Company's condensed combined balance sheets, primarily relate to the Company's rights to consideration for goods or services transferred to customers, for which the Company does not have an unconditional right to bill as of the reporting date. Contract assets are transferred to accounts receivable once the Company's right to consideration becomes unconditional.* 

*<sup>(c)</sup>* *Deferred revenue primarily relates to the Company's receipt of consideration from customers in advance of the Company's transfer of goods or services to the customers. Deferred revenue is reduced and the related revenue is recognized once the underlying goods or services are transferred to a customer. Revenue recognized for the six months ended December 31, 2022 relating to the deferred revenue balance as of June 30, 2022 was $154,130.* 

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**MSGE SPINCO, INC.** 

**NOTES TO CONDENSED COMBINED FINANCIAL STATEMENTS (UNAUDITED)** 

***Transaction Price Allocated to the Remaining Performance Obligations***

As of December 31, 2022, the Company's remaining performance obligations were approximately $535,000, of which 45% is expected to be recognized over the next two years and an additional 36% of the balance is expected to be recognized in the following two years. This primarily relates to performance obligations under sponsorship and suite license agreements that have original expected durations longer than one year and for which the consideration is not variable. In developing the estimated revenue, the Company applies the allowable practical expedient and does not disclose information about remaining performance obligations that have original expected durations of one year or less.

**Note 5. Restructuring Charges** 

During the six months ended December 31, 2022, MSG Entertainment implemented a cost reduction program which resulted in the recording of termination benefits for a workforce reduction of certain executives and employees. The Company recorded restructuring charges of $7,359, net of contributory credits from the Company to MSG Entertainment for the Company's corporate employees, during the six months ended December 31, 2022. Restructuring charges are inclusive of $2,293 of share-based compensation expenses. As of December 31, 2022 and June 30, 2022, the Company had accrued severance of $12,132 and $3,210, respectively, shown in accounts payable, accrued and other current liabilities and divisional equity (deficit). The Company did not record restructuring charges for the six months ended December 31, 2021.

**Note 6. Equity Investments With Readily Determinable Fair Values** 

As of December 31, 2022, the Company held investments of (i) Townsquare Media, Inc. ("Townsquare") and (ii) DraftKings Inc. ("DraftKings"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Townsquare is a media, entertainment and digital marketing solutions company that is listed on the New York Stock
Exchange ("NYSE") under the symbol "TSQ".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• DraftKings is a fantasy sports contest and sports gambling provider that is listed on the NASDAQ Stock Market
("NASDAQ") under the symbol "DKNG".

The fair value of the Company's investments in Class A common stock of Townsquare and Class A common stock of DraftKings is determined based on quoted market prices in active markets on the NYSE and NASDAQ, respectively, which are classified within Level I of the fair value hierarchy. As a holder of Class C common stock of Townsquare, the Company is entitled to convert at any time all or any part of the Company's shares into an equal number of shares of Class A common stock of Townsquare, subject to restrictions set forth in Townsquare's certificate of incorporation.

The carrying fair value of these investments, which are reported under Other non-current assets in the accompanying condensed combined balance sheets as of December 31, 2022 and June 30, 2022, are as follows:

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| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2022** | **June 30,**<br>**2022** |
|  Townsquare Class A common stock | $4228 | $4776 |
|  Townsquare Class C common stock | 19031 | 21499 |
|  DraftKings common stock | 7630 | 10146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Equity Investment with Readily Determinable Fair Values | $30889 | $36421 |

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**MSGE SPINCO, INC.** 

**NOTES TO CONDENSED COMBINED FINANCIAL STATEMENTS (UNAUDITED)** 

The following table summarizes the realized and unrealized (loss) gain on equity investments with readily determinable fair value, which is reported in Other income (expenses), net:

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| | | |
|:---|:---|:---|
|  | **Six Months Ended**<br>**December 31,** | **Six Months Ended**<br>**December 31,** |
|  | **2022** | **2021** |
|  Unrealized gain (loss) — Townsquare | $(3015) | $1861 |
|  Unrealized loss — DraftKings | (188) | (21476) |
|  Gain from shares sold — DraftKings | 1489 |  |
|  Total realized and unrealized (loss) gain | $(1714) | $(19615) |
|  Supplemental information on realized gain: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares of common stock sold — DraftKings | 200 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash proceeds from common stock sold — DraftKings | $3819 | $— |

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**Note 7. Property and Equipment, Net** 

As of December 31, 2022 and June 30, 2022, property and equipment, net consisted of the following:

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| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2022** | **June 30,**<br>**2022** |
|  Land | $62768 | $62768 |
|  Buildings | 997393 | 995965 |
|  Equipment | 332195 | 323741 |
|  Aircraft <sup>(a)</sup> |  | 38090 |
|  Furniture and fixtures | 29264 | 28976 |
|  Leasehold improvements | 105877 | 105877 |
|  Construction in progress | 1980 | 3139 |
|  | 1529477 | 1558556 |
|  Less accumulated depreciation and amortization | (879515) | (862477) |
|  | $649962 | $696079 |

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*<sup>(a)</sup>* *On December 30, 2022, the Company completed the disposition of a corporate aircraft (see Note 3, Dispositions), which resulted in a reduction of gross assets of $38,090, and accumulated depreciation of $13,689.* 

Depreciation expense on property and equipment was $30,817 and $32,665 for the six months ended December 31, 2022 and 2021, respectively.

**Note 8. Goodwill and Intangible Assets** 

As of December 31, 2022 and June 30, 2022, the carrying amount of goodwill was $69,041. During the first quarter of Fiscal Year 2023, the Company performed its annual impairment test of goodwill and determined that there was no impairment of goodwill identified as of the impairment test date.

The Company's indefinite-lived intangible assets as of December 31, 2022 and June 30, 2022 were as follows:

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| | |
|:---|:---|
|  Trademarks | $61881.0 |
|  Photographic related rights | 1920.0 |
|  Total | $63801.0 |

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**MSGE SPINCO, INC.** 

**NOTES TO CONDENSED COMBINED FINANCIAL STATEMENTS (UNAUDITED)** 

During the first quarter of Fiscal Year 2023, the Company performed its annual impairment test of indefinite-lived intangible assets and determined that there were no impairments of indefinite-lived intangibles identified as of the impairment test date.

The Company's intangible assets subject to amortization are as follows:

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| | | | |
|:---|:---|:---|:---|
| **December 31, 2022** | **Gross** | **Accumulated**<br>**Amortization** | **Net** |
|  Trade names <sup>(a)</sup> | $— | $— | $— |
|  Festival rights <sup>(a)</sup> |  |  |  |
|  Other intangibles <sup>(b)</sup> | 4217 | (4217) |  |
|  | $4217 | $(4217) | $— |

---

---

| | | | |
|:---|:---|:---|:---|
| **June 30, 2022** | **Gross** | **Accumulated**<br>**Amortization** | **Net** |
|  Trade names | $2530 | $(2169) | $361 |
|  Festival rights | 8080 | (6926) | 1154 |
|  Other intangibles | 4217 | (4094) | 123 |
|  | $14827 | $(13189) | $1638 |

---

------

*<sup>(a)</sup>* *On December 2, 2022, the Company completed the BCE Disposition (see Note 3, Dispositions) which resulted in a reduction of gross amortizable intangible assets of $674 related to festival rights and $210 related to trade names, and accumulated amortization of $7,406 related to festival rights and $2,320 related to trade names associated with BCE.* 

*<sup>(b)</sup>* *The Other intangibles gross and accumulated amortization balances were fully amortized.* 

Amortization expense for intangible assets was $754 and $494 for the six months ended December 31, 2022 and 2021, respectively.

**Note 9. Commitments and Contingencies** 

*Commitments* 

See Note 13, Commitments and Contingencies, to the Company's Audited Combined Annual Financial Statements for details on the Company's off-balance sheet commitments. The Company's off-balance sheet commitments as of June 30, 2022 included a total of $21,422 of contract obligations.

During the six months ended December 31, 2022, the Company did not have any material changes in its non-cancelable contractual obligations other than activities in the ordinary course of business. See Note 10, Credit Facilities for details of the principal repayments required under the Company's various credit facilities.

*Legal Matters* 

Fifteen complaints were filed in connection with MSG Entertainment's acquisition of MSG Networks Inc. (the "Networks Merger") by purported stockholders of MSG Entertainment and MSG Networks Inc. Nine of these complaints involved allegations of materially incomplete and misleading information set forth in the joint proxy statement/prospectus filed by MSG Entertainment and MSG Networks Inc. in connection with the Networks Merger. These disclosure actions were subsequently voluntarily dismissed with prejudice. Six complaints involved allegations of fiduciary breaches in connection with the negotiation and approval of the

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**MSGE SPINCO, INC.** 

**NOTES TO CONDENSED COMBINED FINANCIAL STATEMENTS (UNAUDITED)** 

Networks Merger and have since been consolidated into two remaining litigations. MSG Entertainment and MSG Networks Inc. will retain all rights and obligations with respect to these claims, as applicable, and MSG Entertainment will indemnify the Company from and release the Company from all present and future costs, expenses, and liabilities, if any, related to these claims.

The Company is a defendant in various lawsuits. Although the outcome of these lawsuits cannot be predicted with certainty (including the extent of available insurance, if any), management does not believe that resolution of these lawsuits will have a material adverse effect on the Company.

**Note 10. Credit Facilities** 

See Note 14, Credit Facilities, to the Company's Audited Combined Annual Financial Statements for more information regarding the Company's credit facilities. The following table summarizes the outstanding balances under the Company's credit facilities as of December 31, 2022 and June 30, 2022:

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| | | |
|:---|:---|:---|
|  | **December 31,<br>2022** | **June 30,**<br>**2022** |
|  | **Principal** | **Principal** |
|  **Current Portion** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; National Properties Term Loan Facility | $16250 | $8125 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other debt |  | 637 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of long-term debt | $16250 | $8762 |

---

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **June 30, 2022** | **June 30, 2022** | **June 30, 2022** |
|  | **Principal** | **Unamortized<br>Deferred<br>Financing<br>Costs** | **Net** | **Principal** | **Unamortized<br>Deferred<br>Financing<br>Costs** | **Net** |
|  **Non-current Portion** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; National Properties Term Loan Facility | $633750 | $(14453) | $619297 | $641875 | $(16063) | $625812 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; National Properties Revolving Credit Facility | 29100 |  | 29100 | 29100 |  | 29100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term debt, net of deferred financing costs**  | $662850 | $(14453) | $648397 | $670975 | $(16063) | $654912 |

---

*National Properties Facilities* 

*General.* On June 30, 2022, MSG National Properties, LLC ("MSG National Properties"), MSG Entertainment Group, LLC ("MSG Entertainment Group") and certain subsidiaries of MSG National Properties entered into a credit agreement with JP Morgan Chase Bank, N.A., as administrative agent and the lenders and L/C issuers party thereto (the "National Properties Credit Agreement"), providing for a five-year, $650,000 senior secured term loan facility (the "National Properties Term Loan Facility") and a five-year, $100,000 revolving credit facility (the "National Properties Revolving Credit Facility" and, together with the National Properties Term Loan Facility, the "National Properties Facilities"). As of December 31, 2022, outstanding letters of credit were $7,860 and the remaining balance available under the National Properties Revolving Credit Facility was $63,040.

*Interest Rates.* Borrowings under the current National Properties Facilities bear interest at a floating rate, which at the option of MSG National Properties may be either (a) a base rate plus an applicable margin ranging from 1.50% to 2.50% per annum, determined based on the total leverage ratio of MSG National Properties and its

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**MSGE SPINCO, INC.** 

**NOTES TO CONDENSED COMBINED FINANCIAL STATEMENTS (UNAUDITED)** 

restricted subsidiaries (the "National Properties Base Rate"), or (b) Term SOFR plus an applicable margin ranging from 2.50% to 3.50% per annum, determined based on the total leverage ratio of MSG National Properties and its restricted subsidiaries (the "National Properties SOFR Rate"). The National Properties Credit Agreement requires MSG National Properties to pay a commitment fee ranging from 0.30% to 0.50% in respect of the daily unused commitments under the National Properties Revolving Credit Facility. MSG National Properties is also required to pay customary letter of credit fees, as well as fronting fees, to banks that issue letters of credit pursuant to the National Properties Credit Agreement. The interest rate on the National Properties Facilities as of December 31, 2022 was 8.18%.

*Principal Repayments.* Subject to customary notice and minimum amount conditions, the Company may voluntarily repay outstanding loans under the National Properties Facilities and terminate commitments under the National Properties Revolving Credit Facility, at any time, in whole or in part, subject only to customary breakage costs in the case of prepayment of Term SOFR loans. The principal obligations under the National Properties Term Loan Facility are to be repaid in quarterly installments beginning with the fiscal quarter ending March 31, 2023, in an aggregate amount equal to 2.50% per annum (0.625% per quarter), stepping up to 5.0% per annum (1.25% per quarter) in the fiscal quarter ending September 30, 2025, with the balance due at the maturity of the facility on June 30, 2027. The principal obligations under the National Properties Revolving Credit Facility are due at the maturity of the facility. Under certain circumstances, MSG National Properties is required to make mandatory prepayments on loans outstanding, including prepayments in an amount equal to the net cash proceeds of certain sales of assets or casualty insurance and/or condemnation recoveries (subject to certain reinvestment, repair, or replacement rights), subject to certain exceptions.

*Covenants.* The National Properties Credit Agreement includes financial covenants requiring MSG National Properties and its restricted subsidiaries to maintain a specified minimum liquidity level, a specified minimum debt service coverage ratio and specified maximum total leverage ratio. The minimum liquidity level is set at $50,000, and is tested based on the level of average daily liquidity, consisting of cash and cash equivalents and available revolving commitments, over the last month of each quarter over the life of the National Properties Credit Facilities. The debt service coverage ratio covenant began testing in the fiscal quarter ending December 31, 2022, and is set at a ratio of 2:1 before stepping up to 2.5:1 in the fiscal quarter ending September 30, 2024. The leverage ratio covenant begins testing in the fiscal quarter ending June 30, 2023. It is tested based on the ratio of MSG National Properties and its restricted subsidiaries' consolidated total indebtedness to adjusted operating income, with an initial maximum ratio of 6:1, stepping down to 5.5:1 in the fiscal quarter ending June 30, 2024 and 4.5:1 in the fiscal quarter ending June 30, 2026. As of December 31, 2022, MSG National Properties and its restricted subsidiaries were in compliance with the covenants of the National Properties Credit Agreement.

In addition to the financial covenants discussed above, the National Properties Credit Agreement and the related security agreement contain certain customary representations and warranties, affirmative and negative covenants and events of default. The National Properties Credit Agreement contains certain restrictions on the ability of MSG National Properties and its restricted subsidiaries to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the National Properties Credit Agreement, including the following: (i) incur additional indebtedness; (ii) create liens on certain assets; (iii) make investments, loans or advances in or to other persons; (iv) pay dividends and distributions or repurchase capital stock (which will restrict the ability of MSG National Properties to make cash distributions to the Company); (v) repay, redeem or repurchase certain indebtedness; (vi) change its lines of business; (vii) engage in certain transactions with affiliates; (viii) amend their respective organizational documents; (ix) merge or consolidate; and (x) make certain dispositions.

*Guarantors and Collateral.* All obligations under the National Properties Facilities are guaranteed by MSG Entertainment Group and MSG National Properties' existing and future direct and indirect domestic subsidiaries, other than the subsidiaries that own The Garden and certain other excluded subsidiaries (the "Subsidiary Guarantors").

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**MSGE SPINCO, INC.** 

**NOTES TO CONDENSED COMBINED FINANCIAL STATEMENTS (UNAUDITED)** 

All obligations under the National Properties Facilities, including the guarantees of those obligations, are secured by certain of the assets of MSG National Properties and the Subsidiary Guarantors (collectively, "Collateral") including, but not limited to, a pledge of some or all of the equity interests held directly or indirectly by MSG National Properties in each Subsidiary Guarantor. The Collateral does not include, among other things, any interests in The Garden or the leasehold interests in Radio City Music Hall and the Beacon Theatre.

Interest payments and loan principal repayments made by the Company under the National Properties Credit Agreement were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Interest Payments** | **Interest Payments** | **Loan Principal Repayments** | **Loan Principal Repayments** |
|  | **Six Months Ended**<br>**December 31,** | **Six Months Ended**<br>**December 31,** | **Six Months Ended**<br>**December 31,** | **Six Months Ended**<br>**December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
|  National Properties Term Loan Facility | $22410 | $23141 | $— | $3250 |

---

The carrying value and fair value of the Company's financial instruments reported in the accompanying condensed combined balance sheets are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2022** | **June 30, 2022** | **June 30, 2022** |
|  | **Carrying**<br>**Value** | **Fair**<br>**Value** | **Carrying**<br>**Value <sup>(a)</sup>** | **Fair**<br>**Value** |
|  Liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; National Properties Facilities | $679100 | $672309 | $679100 | $679100 |

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*<sup>(a)</sup>* *The total carrying value of the Company's financial instruments as of December 31, 2022 and June 30, 2022 is equal to the current and non-current principal payments for the Company's credit agreements excluding unamortized deferred financing costs of $14,453 and $16,063, respectively and other debt of $— and $637, respectively.* 

The Company's long-term debt is classified within Level II of the fair value hierarchy as it is valued using quoted indices of similar instruments for which the inputs are readily observable.

**Note 11. Pension Plans and Other Postretirement Benefit Plans** 

MSG Entertainment sponsors several pension, savings and postretirement benefit plans including the defined benefit pension plans ("Pension Plans"), postretirement benefit plan ("Postretirement Plan"), The Madison Square Garden 401(k) Savings Plan and the MSG Sports & Entertainment, LLC Excess Savings Plan (collectively, the "Savings Plans"), and The Madison Square Garden 401(k) Union Plan (the "Union Savings Plan"). Certain of these Pension Plans and Postretirement Plan, such as Cash Balance Plans and Excess Plans, historically included participants of the Company as well as MSG Entertainment and MSG Sports ("Shared Plans"). Other plans, such as the Union Plan, only included participants of the Company and not of MSG Sports and MSG Entertainment ("Direct Plan"). See Note 15, Pension Plans and Other Postretirement Benefit Plans, to the Company's Audited Combined Annual Financial Statements for more information regarding these plans.

*Defined Benefit Pension Plans and Postretirement Benefit Plan* 

For the historical periods, MSG Entertainment was the legal sponsor of the Pension Plans and Postretirement Plan. For purposes of the condensed combined financial statements, it was determined that these plans' assets and liabilities were attributable to the Company. Therefore, the condensed combined financial

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**MSGE SPINCO, INC.** 

**NOTES TO CONDENSED COMBINED FINANCIAL STATEMENTS (UNAUDITED)** 

statements reflect the full impact of the Shared Plans and the Direct Plan on both the condensed combined statements of operations and condensed combined balance sheets. The pension expense and liabilities related to employees of other MSG Entertainment businesses participating in the Shared Pension Plans and Postretirement Plan were immaterial for the six months ended December 31, 2022 and 2021.

The following table presents components of net periodic benefit cost for the Pension Plans and Postretirement Plan included in the accompanying condensed combined statements of operations for the six months ended December 31, 2022 and 2021. Service cost is recognized in direct operating expenses and selling, general and administrative expenses. All other components of net periodic benefit cost are reported in Other income (expense), net.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Pension Plans** | **Pension Plans** | **Postretirement Plan** | **Postretirement Plan** |
|  | **Six Months Ended**<br>**December 31,** | **Six Months Ended**<br>**December 31,** | **Six Months Ended**<br>**December 31,** | **Six Months Ended**<br>**December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
|  Service cost | $60 | $50 | $16 | $18 |
|  Interest cost | 1854 | 1856 | 22 | 24 |
|  Expected return on plan assets | (3008) | (3008) |  |  |
|  Recognized actuarial loss | 692 | 710 | 18 | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net periodic benefit cost | $(402) | $(392) | $56 | $74 |

---

*Contributions for Qualified Defined Benefit Pension Plan* 

MSG Entertainment sponsors a non-contributory, qualified defined benefit pension plan covering certain of its union employees (the "Union Plan"). During the six months ended December 31, 2022, the Company did not make any contributions to the Union Plan.

*Defined Contribution Plans* 

For the six months ended December 31, 2022 and 2021, expenses related to the Savings Plans and Union Savings Plan included in the accompanying condensed combined statements of operations are as follows:

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| | | |
|:---|:---|:---|
|  | **Six Months Ended**<br>**December 31,** | **Six Months Ended**<br>**December 31,** |
|  | **2022** | **2021** |
|  Savings Plans | $2186 | $1936 |
|  Union Savings Plan | 38 | 21 |

---

**Note 12. Share-based Compensation** 

Certain employees of the Company have historically participated in the share-based compensation plans of MSG Entertainment ("MSG Entertainment Employee Stock Plans"). Only the expenses for the awards provided to the Company's direct employees, net of expenses related to the Company's corporate employees who participate in the plans that were charged to MSG Entertainment, are recorded in the condensed combined financial statements. See Note 16, Share-based Compensation to the Company's Audited Combined Annual Financial Statements for more information on these plans.

Share-based compensation expense was recognized in the condensed combined statements of operations as a component of direct operating expenses or selling, general and administrative expenses. The share-based compensation expense recorded by the Company, in the periods presented, includes the expenses associated with

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**MSGE SPINCO, INC.** 

**NOTES TO CONDENSED COMBINED FINANCIAL STATEMENTS (UNAUDITED)** 

the employees attributable to the Company, net of contributory credits from the Company to MSG Entertainment for the Company's corporate employees. The following table summarizes the Company's share-based compensation expense:

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| | | |
|:---|:---|:---|
|  | **Six Months Ended**<br>**December 31,** | **Six Months Ended**<br>**December 31,** |
|  | **2022** | **2021** |
|  Share-based compensation <sup>(a)</sup> | $16258 | $21079 |
|  Intrinsic value of awards vested | 2867 | 2422 |

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*<sup>(a)</sup>* *The balance shown includes $2,293 which was reclassified to Restructuring charges in the condensed consolidated statements of operations for the six months ended December 31, 2022, as detailed in Note 5, Restructuring Charges.* 

As of December 31, 2022, there was $10,064 of unrecognized compensation cost related to unvested RSUs and PSUs held by the Company's employees. The cost is expected to be recognized over a weighted-average period of approximately 1.8 years.

**Award Activity** 

*RSUs* 

During the six months ended December 31, 2022 and 2021, approximately 66 and 59 RSUs, respectively, were granted and approximately 40 and 22 RSUs vested, respectively.

*PSUs* 

During the six months ended December 31, 2022 and 2021, approximately 60 and 55 PSUs, respectively, were granted and approximately 11 and 8 PSUs vested, respectively.

**Note 13. Accumulated Other Comprehensive Loss** 

The following table details the components of accumulated other comprehensive income (loss):

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| | | |
|:---|:---|:---|
|  | **Pension Plans and**<br>**Postretirement Plan** | **Pension Plans and**<br>**Postretirement Plan** |
|  | **Six Months Ended**<br>**December 31,** | **Six Months Ended**<br>**December 31,** |
|  | **2022** | **2021** |
|  Balance at beginning of period | $(34740) | $(33598) |
|  Other comprehensive income (loss): |  |  |
|  Amounts reclassified from accumulated other comprehensive loss *<sup>(a)</sup>* | 742 | 743 |
|  Income tax expense | (131) | (131) |
|  Other comprehensive income (loss), net of income taxes | 611 | 612 |
|  Balance at end of period | $(34129) | $(32986) |

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<sup>*(a)*</sup> *Amounts reclassified from accumulated other comprehensive loss represent the amortization of net actuarial loss and net unrecognized prior service credit included in net periodic benefit cost, which is reflected under Other income (expense), net in the accompanying condensed consolidated statements of operations (see Note 11, Pension Plans and Other Postretirement Benefit Plans).* 

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**MSGE SPINCO, INC.** 

**NOTES TO CONDENSED COMBINED FINANCIAL STATEMENTS (UNAUDITED)** 

**Note 14. Related Party Transactions** 

Members of the Dolan family, including trusts for the benefit of members of the Dolan family (collectively, the "Dolan Family Group") are the controlling stockholders of the Company, MSG Entertainment including its MSG Networks and TAO Group Hospitality subsidiaries, MSG Sports, and AMC Networks Inc. ("AMC Networks"). See Note 19, Related Party Transactions to the Company's Audited Combined Annual Financial Statements for a description of the Company's current related party arrangements. There have been no material changes in such related party arrangements except as described below.

From time to time the Company enters into arrangements with 605, LLC ("605"). James L. Dolan, the Company's Executive Chairman, Chief Executive Officer and a director, and his spouse, Kristin A. Dolan (a director of the Company), own 50% of 605. Kristin A. Dolan is also the founder and Chief Executive Officer of 605. 605 provides audience measurement and data analytics services to the Company and its subsidiaries in the ordinary course of business. MSG Entertainment entered into one or more agreements with 605 to provide certain data analytics services to the Company for an aggregate amount of up to $1,000. In August 2022, a subsidiary of MSG Entertainment entered into a three-year agreement with 605, valued at approximately $750, covering several customer analysis projects per year in connection with events held at our venues. The Company expects to engage 605 to provide additional data analytics services in the future. Pursuant to this arrangement, the Company recognized approximately $135 of expense for the six months ended December 31, 2022 and as of December 31, 2022 approximately $135 has been recognized in Prepaid expenses and other current assets.

As of June 30, 2022, the Company had $637 of notes payable with respect to a loan received by BCE from its noncontrolling interest holder. There were no notes payable as of December 31, 2022 as a result of the BCE Disposition.

*Revenues and Operating Expenses* 

The following table summarizes the composition and amounts of the transactions with the Company's affiliates. The significant components of these amounts are discussed below. These amounts are reflected in revenues and operating expenses in the accompanying condensed combined statements of operations for the six months ended December 31, 2022 and 2021:

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| | | |
|:---|:---|:---|
|  | **Six Months Ended**<br>**December 31,** | **Six Months Ended**<br>**December 31,** |
|  | **2022** | **2021** |
|  Revenues | $55188 | $47157 |
|  Operating expenses (credits): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue sharing expenses | 8286 | 6396 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reimbursement under Arena License Arrangements | (9850) | (9050) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost reimbursement from MSG Sports | (18992) | (19729) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate allocations to MSG Entertainment | (73967) | (74284) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other operating expenses, net | 3355 | 4160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses (credits), net *<sup>(a)</sup>* | $(91168) | $(92507) |

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<sup>*(a)*</sup> *Of the total operating expenses, net, $(525) and $(3030) for the six months ended December 31, 2022 and 2021, respectively, are included in direct operating expenses in the accompanying condensed combined statements of operations, and $(90643) and $(89477) for the six months ended December 31, 2022 and 2021 respectively, are included as net credits in selling, general and administrative expenses.* 

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**MSGE SPINCO, INC.** 

**NOTES TO CONDENSED COMBINED FINANCIAL STATEMENTS (UNAUDITED)** 

*Revenues* 

The Company recorded $33,149 of revenues under the Arena License Agreements for the six months ended December 31, 2022. In addition, the Company recorded revenues under sponsorship sales and service representation agreements with MSG Sports of $8,564, and merchandise sharing revenues with MSG Sports of $2,291 during the six months ended December 31, 2022. The Company recorded revenues under the advertising sales representation agreement with MSG Networks of $8,802 for the six months ended December 31, 2022. The Company also earned $1,222 of sublease revenue from related parties during the six months ended December 31, 2022.

The Company recorded $29,181 of revenues under the Arena License Agreements for the six months ended December 31, 2021. In addition, the Company recorded revenues under sponsorship sales and service representation agreements with MSG Sports of $7,179 and merchandise sharing revenues with MSG Sports of $1,452 for the six months ended December 31, 2021. The Company recorded revenues under the advertising sales representation agreement with MSG Networks of $7,395 for the six months ended December 31, 2021. The Company also earned $1,222 of sublease revenue from related parties during the six months ended December 31, 2021.

*Operating Expenses* 

*Revenue sharing expenses* 

Revenue sharing expenses include MSG Sports' share of the Company's in-venue food and beverage sales and certain venue signage agreements.

*Reimbursements under Arena License Arrangements* 

Fees recognized by the Company under the Arena License Agreements with MSG Sports for use of The Garden are reported as operating lease revenues in accordance with ASC Topic 842. In addition, the Company records credits to direct operating expenses as a reimbursement under the Arena License Agreements.

*Cost reimbursement from MSG Sports* 

Per the Transition Services Agreement with MSG Sports, the Company's corporate overhead expenses that are charged to MSG Sports are primarily related to centralized functions, including information technology, security, accounts payable, payroll, tax, legal, human resources, insurance and risk management, investor relations, corporate communications, benefit plan administration and reporting, and internal audit.

*Corporate allocations to MSG Entertainment* 

As part of the Distribution, certain corporate and operational support functions are being transferred to the Company and therefore, charges were reflected in order to properly burden all business units comprising MSG Entertainment's historical operations. Allocations of corporate overhead and shared services expense to MSG Entertainment from the Company were recorded for corporate and operational functions based on direct usage when identifiable, with the remainder allocated on a pro rata basis of combined assets, headcount or other measures of the Company or MSG Entertainment, which is recorded as a reduction of either direct operating expenses or selling, general and administrative expense. The aforementioned allocations for certain support functions that are provided on a centralized basis and not historically recorded at the business unit level by MSG Entertainment related to departments such as executive management, finance, legal, human resources, government affairs, and information technology, among others. In addition, corporate allocations to MSG Entertainment include charges to MSG Networks under the MSG Networks Services Agreement.

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**MSGE SPINCO, INC.** 

**NOTES TO CONDENSED COMBINED FINANCIAL STATEMENTS (UNAUDITED)** 

*Other Operating Expenses, net* 

The Company and its related parties enter into transactions with each other in the ordinary course of business. Amounts charged to the Company for other transactions with its related parties are net of amounts charged by the Company to the Knickerbocker Group, LLC, an entity owned by James L. Dolan, the Executive Chairman, Chief Executive Officer and a director of the Company, for office space and the cost of certain technology services. In addition, other operating expenses primarily include net charges relating to (i) reciprocal aircraft arrangements between the Company and each of Q2C and CFD, (ii) time sharing and/or dry lease agreements with MSG Sports, AMC Networks and Brighid Air, (iii) commission under the group ticket sales representation agreement with MSG Sports, and (iv) expenses for advertising and promotional services rendered by MSG Networks. The reciprocal aircraft arrangement between the Company and Q2C and the related aircraft support services arrangement between them was no longer effective as of December 21, 2021.

*Loans Receivable from MSG Entertainment* 

The Company's captive insurance entity, Eden Insurance Company, Inc. ("Eden"), entered into a loan agreement with MSG Entertainment (the "Eden Loan Agreement"), under which Eden granted MSG Entertainment an unsecured loan bearing interest at a rate of LIBOR plus 350 basis points with a principal amount not exceeding $60,000. This loan is in the form of a demand promissory note, payable immediately upon order from Eden. As of December 31, 2022 and June 30, 2022, Eden had an outstanding loan receivable from MSG Entertainment of $52,513 and $56,060, respectively, inclusive of accrued interest. During the six months ended December 31, 2022 and 2021, Eden declared dividends to MSG Entertainment through a reduction of the loan receivable from MSG Entertainment. During the six months ended December 31, 2022 and 2021, no interest or principal payments were received by Eden and instead the accrued but unpaid interest was added to the outstanding principal amount of the loan. The cash flows related to this loan receivable are reflected as investing activities, as these balances represent amounts loaned by the Company to MSG Entertainment. The Company recorded related party interest income of $1,804 and $1,062 related to the Eden Loan Agreement during the six months ended December 31, 2022 and 2021, respectively.

On May 23, 2019, the Company entered into a subordinated credit agreement with TAO Group Sub-Holdings, LLC ("TAOG Sub-Holdings"), a wholly-owned subsidiary of MSG Entertainment (the "TAO Subordinated Credit Agreement"), under which the Company granted TAOG Sub-Holdings a $49,000 subordinated loan. This loan had a maturity date of August 22, 2024. On June 15, 2020, the TAO Subordinated Credit Agreement was amended to provide an additional $22,000 of borrowing capacity and subsequently, the Company provided additional proceeds of $19,000 under the TAO Subordinated Credit Agreement. There are no mandatory repayments of principal until the maturity date. Subject to customary notice and minimum amount conditions, TAOG Sub-Holdings can voluntarily prepay outstanding loans under the TAO Subordinated Credit Agreement at any time, in whole or in part, without premium or penalty. Interest is due monthly in cash or paid-in-kind based on the terms of the TAO Senior Credit Agreement. On June 9, 2022, MSG Entertainment paid the full outstanding principal amount of this TAO Subordinated Credit Agreement. The Company recorded related party interest income of $2,402 related to the TAO Subordinated Credit Agreement during the six months ended December 31, 2021.

*Cash Management* 

MSG Entertainment uses a centralized approach to cash management and financing of operations. The Company's and MSG Entertainment's other subsidiaries' cash was available for use and was regularly "swept" historically. Cash and cash equivalents was attributed to the Company for each of the periods presented, as such cash was held in accounts legally owned by the Company. Transfers of cash both to and from MSG

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**MSGE SPINCO, INC.** 

**NOTES TO CONDENSED COMBINED FINANCIAL STATEMENTS (UNAUDITED)** 

Entertainment were included as components of MSG Entertainment's Investment on the condensed combined statements of divisional equity (deficit). The main components of the net transfers to MSG Entertainment are cash pooling/general financing activities, various expense allocations to/from MSG Entertainment, and receivables/payables from/to MSG Entertainment deemed to be effectively settled upon the distribution of the Company by MSG Entertainment.

*MSG Entertainment Investment* 

Certain significant balances and transactions among the Company and MSG Entertainment and its subsidiaries, which include allocations of corporate general and administrative expenses, share-based compensation expense and other historical intercompany activities, are recorded as components of Divisional Equity (Deficit), except for the transactions noted above related to historically cash-settled loans between the Company and MSG Entertainment. The changes in MSG Entertainment Investment also include financing activities for capital transfers, cash sweeps, and other treasury services. As part of this activity, cash balances are swept to MSG Entertainment regularly as part of the MSG Entertainment cash management policy.

**Note 15. Additional Financial Information** 

The following table provides a summary of the amounts recorded as cash, cash equivalents, and restricted cash:

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| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **December 31,**<br>**2022** | **June 30,**<br>**2022** |
|  Cash and cash equivalents | $153496 | $58102 |
|  Restricted cash | 250 | 4471 |
|  Total cash, cash equivalents and restricted cash | $153746 | $62573 |

---

The Company's cash, cash equivalents and restricted cash are classified within Level I of the fair value hierarchy as it is valued using observable inputs that reflect quoted prices for identical assets in active markets. The Company's restricted cash includes cash deposited in escrow accounts. The Company has deposited cash in an interest-bearing escrow account related to credit support, debt facilities, and collateral to workers compensation and general liability insurance obligations.

Prepaid expenses and other current assets consisted of the following:

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| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **December 31,**<br>**2022** | **June 30,**<br>**2022** |
|  Prepaid expenses | $52263 | $65065 |
|  Inventory *<sup>(a)</sup>* | 2487 | 2752 |
|  Notes and other receivables | 982 | 322 |
|  Other | 13954 | 11302 |
|  Total prepaid expenses and other current assets | $69686 | $79441 |

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<sup>*(a)*</sup> *Inventory is mostly comprised of food and liquor for venues.*

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##### [**Table of Contents**](#toc)
**MSGE SPINCO, INC.** 

**NOTES TO CONDENSED COMBINED FINANCIAL STATEMENTS (UNAUDITED)** 

Accounts payable, accrued and other current liabilities consisted of the following:

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| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **December 31,**<br>**2022** | **June 30,**<br>**2022** |
|  Accounts payable | $23339 | $11241 |
|  Accrued payroll and employee related liabilities | 62865 | 88501 |
|  Cash due to promoters | 34912 | 78428 |
|  Accrued expenses | 55171 | 43791 |
|  Total accounts payable, accrued and other current liabilities | $176287 | $221961 |

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Other income (expense), net includes the following:

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| | | |
|:---|:---|:---|
|  | **Six Months Ended**<br>**December 31,** | **Six Months Ended**<br>**December 31,** |
|  | **2022** | **2021** |
|  Gains from shares sold — DraftKings | $1489 | $— |
|  Net unrealized loss on equity investments with readily determinable fair value | (3203) | (19615) |
|  Other | 428 | 368 |
|  Total other income (expense), net | $(1286) | $(19247) |

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*Income Taxes* 

During the six months ended December 31, 2022 and 2021, the Company received income tax refunds, net of payments, of $2,031 and $10,426, respectively.

**Note 16. Subsequent Events** 

The Company evaluated subsequent events through the date the financial statements were issued. Based on this evaluation, the Company concluded that there was no subsequent event that would require disclosure to or adjustment to the financial statements.