Document:

Exhibit 10.15

 

SFX HOLDING CORPORATION

430 Park Avenue

New York, New York 10022

 

December 31, 2012

 

Nightlife Holdings LLC

MMG Nightlife LLC

Punta Cana Venue LLC

US Nightlife Management LLC

David Grutman, Inc.

SEBU Corp.

Dave Grutman

Brian Gordon

World on a String LLC

 

Gentlemen:

 

Re: Amendment of Asset Contribution Agreement

 

Reference is made to that certain Asset Contribution Agreement (the “Agreement”), dated as of November 21, 2012, by and among SFX Holding Corporation, a Delaware corporation (“Parent”), SFX-Nightlife Operating LLC, a Delaware limited liability company wholly owned by Parent (“Acquiror”, and together with Parent, the “Acquiring Parties”), Nightlife Holdings LLC, a Florida limited liability company (“Nightlife”), MMG Nightlife LLC, a Florida limited liability company and a wholly owned subsidiary of Nightlife (“MMG”), Punta Cana Venue LLC, a Delaware limited liability company and a wholly owned subsidiary of Nightlife (“Punta Cana”), US Nightlife Management LLC, a Florida limited liability company and a wholly owned subsidiary of Nightlife (“US Nightlife”),  David Grutman, Inc., a Florida corporation and a member of Nightlife (“Grutman Inc.”), SEBU Corp., a Florida corporation and a member of Nightlife (“SEBU”), Dave Grutman, an individual resident of Florida  and sole stockholder of Grutman Inc. (“Grutman”), Brian Gordon, an individual resident of Florida and sole stockholder of SEBU (“Gordon”), and World on a String LLC, a New Jersey limited liability company and a member of Nightlife (“WOS” and, together with SEBU, Grutman Inc., Grutman and Gordon, the “Members”).  Nightlife, MMG, Punta Cana and US Nightlife are collectively referred to herein as the “Transferors” and each a “Transferor”.  The Members and the Transferors are collectively referred to herein as the “Transferor Parties”.  The Acquiring Parties and the Transferor Parties are collectively referred to herein as the “Parties” and each a “Party”.  All capitalized terms not otherwise defined herein shall have the meanings given to such terms in the Agreement.

 

The Parties agree to amend the Agreement as follows:

 

1.                                      The Cash Payment in Section 2.5 of the Agreement shall be paid at Closing as follows: (i) $5,000,000 in cash by wire transfer to an account designated by Nightlife at or prior to Closing; and (ii) $8,491,200 payable by Parent executing and delivering to Nightlife a

 

 

promissory note substantially in the form attached hereto as Exhibit A (the “Note”). Parent’s obligations under the Note shall be secured by a pledge on all of Parent’s membership interest in the Acquiror, pursuant to the terms of a Pledge Agreement substantially in the form attached hereto as Exhibit B (the “Pledge Agreement”).

 

2.                                      The Transferor Parties agree not to file their U.S. federal and state income Tax Returns for 2012 until April 1, 2013. If the full amount of principal and interest due pursuant to the Note (together, the “Note Payments”) is not paid in full by February 28, 2013, the principal due pursuant to the Note (“Note Principal”) shall be treated as a “Future Payment” for purposes of Section 2.8(a)(iv) of the Agreement. Otherwise, each of the Transferor Parties will report as income for 2012 all of the Note Principal; provided, however, that if it is determined that all or any portion of the Note Principal is not properly reportable for 2012 pursuant to a final determination within the meaning of Section 1313(a) of the Code (and/or an equivalent provision applicable in a relevant jurisdiction), then

 

i.      any portion of the Note Principal determined not to be properly reportable in 2012 shall be shall be treated as a “Future Payment” for purposes of Section 2.8(a)(iv) of the Agreement, and

 

ii.   any penalty, interest or similar amount with respect thereto, together with reasonable expenses incurred by the Transferor Parties with respect to such final determination , shall be paid by Parent to the Transferor Parties on a grossed up basis utilizing a reasonable analogous application of the principles of Section 2.8(a)(iv) of the Agreement .

 

3.                                      The Transferor Parties shall not be required to provide a Pre-Closing Statement as set forth in Section 2.10(a) of the Agreement, and no adjustment to the Consideration will be made based on the Pre-Closing Statement. In connection with the foregoing, Sections 2.10(a), (b), (d) and (e) are hereby amended and restated in their entirety with the following text:

 

“(a)                           [Intentionally Omitted].

 

(b)                                 Closing Statement.  Within 90 days following the Closing Date, Parent shall prepare and deliver to the Transferors a certificate (the “Closing Statement”) setting forth Parent’s determination of Net Working Capital determined in accordance with the Balance Sheet Rules.  Following delivery of the Closing Statement, Parent shall provide the Transferors with any supporting documentation for the Closing Statement that the Transferors may reasonably request.

 

(d)                                 Fees and Expenses of Accounting Firm.   The fees, costs and expenses of the Independent Accounting Firm shall be borne by either Parent or the Transferors as follows:  (i) if the Net Working Capital determined by the Independent Accounting Firm is more than two (2%) percent greater than the Net Working Capital determined by the Parent, then Parent shall bear the fees, costs and expenses of the Independent Accounting Firm, and (ii) if the Net Working Capital determined by the Independent Accounting Firm is less than two (2%)

 

 

percent greater than to the Net Working Capital determined by Parent, then the Transferors shall bear the fees, costs and expenses of the Independent Accounting Firm.

 

(e)                                  Adjustment.  As used herein, “Difference” means the difference between (i) (A) if the Transferors fail to deliver an Objections Statement in accordance with Section 2.10(c), the Net Working Capital as set forth in the Closing Statement, or (B) if the Net Working Capital set forth in the Closing Statement is resolved by resolution of Parent and the Transferors or by submission of any remaining Disputes to the Accounting Firm, as contemplated by Section 2.10(c), the Net Working Capital as so resolved; and (ii) $100,000.   If the Net Working Capital exceeds $100,000, then the Consideration payable by Parent to the Transferors shall be increased by an amount equal to the Difference; if the Net Working Capital is less than $100,000, then the Consideration payable by Parent to the Transferors shall be reduced by an amount equal to the Difference.  Any downward or upward adjustment to the Consideration under this Section 2.10(e) shall be effected, at the election of Parent in its sole discretion, as follows: (x) the Transferor Parties or Parent, as applicable, shall promptly, but in no event later than five (5) Business Days following determination of the Net Working Capital in accordance with this Section 2.10, pay to Parent or the Transferor Parties, as applicable, an amount in cash equal to the Difference, (y) Parent shall cancel, in the manner set forth in Section 9.9 or issue, as applicable, a number of fully paid non-assessable shares of Parent Common Stock equal to the Difference divided by the Per Share Price or (z) the obligations under this Section 2.10(e) shall be satisfied using a combination of a cash payment under (x) and a cancellation or issuance, as applicable, of Parent Common Stock under (y).”

 

4.                                      Except as provided herein, the Agreement remains in full force and effect.

 

5.                                      This letter agreement shall be governed by and construed in accordance with the internal laws (and not the law of conflicts) of the State of New York. Any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this letter agreement and any related agreement or the transactions contemplated hereby or thereby shall be brought exclusively in any federal or state court located in the State of New York, and each of the parties hereto hereby consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding brought in any such court has been brought in an inconvenient form. Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court.  This letter agreement may be signed in counterparts and delivered by facsimile or portable document format (pdf).

 

 

Please confirm by your signatures below that the forgoing amendments are acceptable to you.

 

	
 
    	
Sincerely yours,
    
	
 
    	
 
    
	
 
    	
SFX   HOLDING CORPORATION,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 /s/ Robert F.X. Sillerman
    
	
 
    	
Name:
    	
Robert   F.X. Sillerman
    
	
 
    	
Title:
    	
Chief   Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SFX-NIGHTLIFE OPERATING LLC
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By:   
    	
SFX   Holding Corporation, its sole member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 /s/ Robert F.X. Sillerman
    
	
 
    	
Name:
    	
Robert   F.X. Sillerman
    
	
 
    	
Title:
    	
Chief   Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
AGREED AND ACCEPTED:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
NIGHTLIFE HOLDINGS LLC,
    
	
 
    	
a   Florida limited liability company
    
	
 
    	
 
    
	
 
    	
By:   
    	
David   Grutman, Inc., Member-Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 /s/ David Grutman
    
	
 
    	
Name:
    	
David   Grutman
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    
	
 
    	
By:   Sebu Corp., Member-Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 /s/ Brian Gordon
    
	
 
    	
Name:
    	
Brian   Gordon
    
	
 
    	
Title:
    	
President
    
				

 

[Signatures continue on following page.]

 

 

	
 
    	
MMG NIGHTLIFE LLC,
    
	
 
    	
a   Florida limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
Nightlife   Holdings, LLC, Member-Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:   David Grutman, Inc., Member-Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 /s/ David Grutman
    
	
 
    	
 
    	
Name:
    	
David   Grutman
    
	
 
    	
 
    	
Title:
    	
President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:   Sebu Corp., Member-Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 /s/ Brian Gordon
    
	
 
    	
 
    	
Name:
    	
Brian   Gordon
    
	
 
    	
 
    	
Title:
    	
President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PUNTA CANA VENUE LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
Nightlife   Holdings, LLC, Member-Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:   David Grutman, Inc., Member-Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 /s/ David Grutman
    
	
 
    	
 
    	
Name:
    	
David   Grutman
    
	
 
    	
 
    	
Title:
    	
President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:   Sebu Corp., Member-Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 /s/ Brian Gordon
    
	
 
    	
 
    	
Name:
    	
Brian   Gordon
    
	
 
    	
 
    	
Title:
    	
President
    
					

 

[Signatures continue on following page.]

 

 

	
 
    	
US NIGHTLIFE MANAGEMENT LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By:   
    	
Nightlife   Holdings, LLC, Member-Manager
    
	
 
    	
 
    
	
 
    	
 
    	
By:   David Grutman, Inc., Member-Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:   
    	
/s/   David Grutman
    
	
 
    	
 
    	
Name:
    	
David   Grutman
    
	
 
    	
 
    	
Title:
    	
President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:   Sebu Corp., Member-Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:   
    	
/s/   Brian Gordon
    
	
 
    	
 
    	
Name:
    	
Brian   Gordon
    
	
 
    	
 
    	
Title:
    	
President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
DAVID GRUTMAN, INC.,
    
	
 
    	
a   Florida corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   David Grutman
    
	
 
    	
Name:
    	
David   Grutman
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SEBU   CORP.,
    
	
 
    	
a   Florida corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Brian Gordon
    
	
 
    	
Name:
    	
Brian   Gordon
    
	
 
    	
Title:
    	
President
    
							

 

[Signatures continue on following page.]

 

 

	
 
    	
DAVE GRUTMAN,
    
	
 
    	
an   individual resident of Florida
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   David Grutman
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BRIAN GORDON,
    
	
 
    	
an   individual resident of Florida
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Brian Gordon
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
WORLD ON A STRING LLC,
    
	
 
    	
a   New Jersey limited liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Ryan Shinman
    
	
 
    	
Name:
    	
Ryan   Shinman
    
	
 
    	
Title:
    	
ManagerExhibit 10.16

 

EXECUTION VERSION

 

AMENDED AND RESTATED

PROMISSORY NOTE

 

$5,513,078.99

 

Original Issue Date:  December 31, 2012

As amended and restated as of March 15, 2013

New York, New York

 

WHEREAS, Nightlife Holdings LLC, a Florida limited liability company (hereinafter referred to as “Nightlife”), is the holder of that certain Secured Promissory Note issued and delivered by SFX Holding Corporation (n/k/a SFX Entertainment, Inc.), a Delaware corporation (hereinafter referred to as “Parent”) on December 31, 2012 (the “Original Note”); and

 

WHEREAS, Nightlife and Parent desire to amend and restate the Original Note in its entirety in the manner hereinafter set forth, and to replace the Original Note with this Amended and Restated Promissory Note (this “Note”).

 

NOW THEREFORE, by Parent’s execution and delivery of this Note and Nightlife’s acceptance of such delivery from Parent, this Note is deemed to replace the Original Note, and the Original Note is restated in its entirety to read as follows:

 

FOR VALUE RECEIVED, Parent hereby promises to pay to the order of Nightlife, the principal sum of FIVE MILLION FIVE HUNDRED THIRTEEN THOUSAND SEVENTY EIGHT DOLLARS AND NINETY NINE CENTS ($5,513,078.99).

 

Terms of Payment:  Principal and accrued interest under this Note shall be due and payable in full on or before May 15, 2013 (the “Maturity Date”).  Principal and/or accrued interest under this Note may be prepaid in whole or in part, without premium or penalty, by Parent to Nightlife prior to the Maturity Date.

 

Interest Rate:  The interest rate applicable to the amounts payable by Parent to Nightlife under this Note shall be 0.22% per annum.  All calculations of interest hereunder shall be made on the basis of a 360-day year.

 

Default:  Upon the failure of Parent to pay any amount owing under this Note as and when due, Nightlife may, in addition to any other rights or remedies that Nightlife may have at law or in equity, declare the unpaid balance hereof to be immediately due and payable, whereupon such unpaid balance shall become immediately due and payable.  Upon the filing of an involuntary petition against Parent under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect, or upon the making by Parent of an assignment for the benefit of creditors or the filing by Parent of a voluntary petition seeking relief under any provision of any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect, the unpaid balance hereof automatically and without any action on the part of Nightlife, shall be immediately due and payable.  Amounts declared immediately due and payable pursuant to this paragraph shall bear interest thereafter at an amount equal to the applicable interest rate above, plus five percent (5.00%)  until paid.

 

 

Waiver:  Demand, presentment, notice, notice of demand, notice for payment, protest and notice of dishonor are hereby waived by Parent.  Nightlife shall not be deemed to waive any of its rights hereunder unless such waiver be in writing and signed by Nightlife.  Any failure on the part of Nightlife at any time to require the performance by Parent of any of the terms or provisions hereof, even if known, shall in no way affect the right thereafter to enforce the same, nor shall any failure of Nightlife to insist on strict compliance with the terms and conditions hereof be taken or held to be a waiver of any succeeding breach or of the right of Nightlife to insist on the strict compliance with the terms and conditions hereof.

 

Confession of Judgment:  This Note is the “Amended Note” referred to in that certain Affidavit of Confession of Judgment (“Confession of Judgment”) of even date herewith executed by a duly authorized officer of Parent, and Nightlife is entitled to all of the rights and benefits contained therein.

 

Costs of Collection:  In the event that Nightlife seeks to enforce the Confession of Judgment and/or institutes legal proceedings to enforce this Note or refers the same to an attorney-at-law for enforcement or collection after default or maturity, Parent agrees to pay to Nightlife, in addition to any indebtedness due and unpaid, all reasonable costs and expenses of such proceedings, including reasonable attorneys’ fees.

 

Remedies Cumulative:  All remedies conferred upon Nightlife by this Note or any other instrument or agreement connected herewith or related hereto shall be cumulative and none is exclusive, and such remedies may be exercised concurrently or consecutively at Nightlife’s option.

 

Terms:  The term “Parent” as used herein shall include the successors and assigns of the Parent.  The term “Nightlife” as used herein shall include the successors and assigns of Nightlife.

 

Assignment:  Neither party may assign, transfer or convey its interest under this Note without the express written consent of the other party.

 

Severability:  If any provision of this Note is, for any reason and to any extent, invalid or unenforceable, then the remaining provisions of this Note, and the application of the provision determined to be unenforceable to other circumstances, shall not, at the election of the party for whom the benefit of the unenforceable provision exists, be affected thereby, but instead shall be enforceable to the maximum extent permitted by applicable law.

 

Amendment:  This Note may be amended only in a writing signed by both Parent and Nightlife.

 

Miscellaneous:  This Note shall be governed by, and construed in accordance with, the laws of the State of New York, without giving effect to principles of conflict of laws that would cause the laws of another state to apply.  Parent acknowledges and agrees that any action, suit or proceeding to enforce any provision of, or based on any matter arising out of or in connection with this Note shall be brought in any federal or state court located in the State of New York, and Parent hereby consents to the jurisdiction of such courts in any such action, suit or proceeding and irrevocably waives, to the fullest extent possible under applicable law, any objection that it may now or hereafter have to the laying of venue in any such court that such action, suit or proceeding has been brought in an inconvenient forum.  Process in any such suit, action or proceeding may be served on any party anywhere in the world.  TIME IS OF THE ESSENCE OF THIS NOTE.

 

*              *              *              *

 

2

 

IN WITNESS WHEREOF, Parent has signed, sealed and delivered this Note on the date first hereinabove written.

 

 

	
 
    	
 
    	
MAKER:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
SFX   ENTERTAINMENT, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Sheldon Finkel
    
	
 
    	
 
    	
Name:   Sheldon Finkel
    
	
 
    	
 
    	
Title:   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Acknowledged   and Agreed:
    	
 
    	
 
    
	
NIGHTLIFE   HOLDINGS LLC
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By   David Grutman, Inc., Member-Manager
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   David Grutman
    	
 
    	
 
    
	
Name:   David Grutman
    	
 
    	
 
    
	
Title:   President
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:   Sebu Corp., Member-Manager
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Brian Gordon
    	
 
    	
 
    
	
Name:   Brian Gordon
    	
 
    	
 
    
	
Title:   President
    	
 
    	
 
    

 

3

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