Document:

EX-10.39

Exhibit 10.39

FORM OF AMENDMENT

TO

EXECUTIVE SEVERANCE AGREEMENT

     This Amendment to the Executive Severance Agreement (this “Amendment”) by and between Town
Sports International, LLC (the “Company”), and                                         (“Executive”) is effective as of
December                     , 2008.

     WHEREAS, Executive and the Company are parties to an Executive Severance Agreement dated as of
January 22, 2008 (the “Executive Severance Agreement”); and

     WHEREAS, Executive and the Company desire to amend the Executive Severance Agreement in a
manner intended to bring it into compliance with the final regulations issued under Section 409A of
the Internal Revenue Code of 1986, as amended.

     NOW, THEREFORE, in consideration of the mutual covenants in this Agreement, the parties agree
that the Executive Severance Agreement is amended as set forth below:

     1. The definition of “Constructive Termination” is hereby amended by adding the following at
the end thereof:

“; provided, however, that none of the foregoing conditions or events shall constitute
Constructive Termination unless (A) the Executive shall have provided written notice to the
Company within ninety (90) days after the occurrence of such condition or event describing
the condition or event claimed to constitute Constructive Termination and (B) the Company
shall have failed to remedy the condition or event within thirty (30) days of its receipt of
such written notice.”

     2. Section 2(c) is amended in its entirety to read as follows:

     “(c) Separation Release Agreement. The eligibility for receipt of benefits
under this Agreement as described in Section 3 (the “Severance Benefits”) is expressly
conditioned upon the following: (i) the Executive’s signing of a release in which the
Executive releases and/or waives any and all claims the Executive may have against the
Company within the time specified therein but in no event later than fifty (50) days of the
Termination Date and (ii) the release becoming effective. The Company shall provide to
Executive the release no later than three (3) days following Executive’s Termination Date.
If Executive does not timely execute and deliver to the Company such release, or if
Executive executes such release but revokes it, no Severance Benefits shall be paid.”

     3. Section 3 is amended by inserting an “(a)” at the beginning thereof.

     4. Section 3(a)(i) is hereby amended by deleting “beginning thirty (30) days following the
Termination Date or as soon as administratively practicable thereafter” and replacing it with
“payable as described in Section 3(b) below”.

 

 

     5. The second sentence of Section 3(a)(ii) is amended by inserting at the end thereof the
following: “but no later than March 15 of the year following the year to which the bonus relates”.

     6. Section 3 is amended by inserting new subsection (b) at the end thereof to read as follows:

     “(b) Timing of Payments.

     (i) The Severance Benefits described in section 3(a)(i) shall be paid, minus applicable
deductions, including deductions for tax withholding, in equal payments on the regular
payroll dates during the one-year period following Executive’s termination of employment.
Commencement of payments of the Severance Benefits described in Section 3(a)(i) shall begin
on the first payroll date that occurs at least 60 days after the Termination Date, but which
may be accelerated by no more than 30 days (the “Starting Date”) provided that
Executive has satisfied the requirements of Section 2(c). The first payment on the payment
Starting Date shall include those payments that would have previously been paid if the
payments of the Severance Benefits had begun on the first payroll date following the
Termination Date. This timing of the commencement of benefits is subject to Section 15
below.

     (ii) All Severance Benefits shall be completed by, and no further Severance Benefits
shall be payable after, December 31 of the second taxable year following the year in which
Executive’s termination of employment occurs.

     (iii) Executive’s entitlement to the payments of the Severance Benefits described in
the Section 3(a)(i) shall be treated as the entitlement to a series of separate payments for
purposes of Section 409A of the Internal Revenue Code of 1986, as amended, (the “Code”).

     (iv) For purposes of this Agreement, “termination of employment” shall mean a
“separation of service” as defined in Section 409A of the Code and Treasury Regulations
Section 1.409A-1(h) without regard to the optional alternative definitions available
thereunder.

     7. Section 15 is amended in full to read as follows:

     “(a) Potential Delay of Payment. Notwithstanding any other provisions of this
Agreement, any payment under this Agreement of the Severance Benefits that the Company
reasonably determines is subject to Section 409A(a)(2)(B)(i) of the Code shall not be paid
or payment commenced until six months after Executive’s Termination Date or Executive’s
death. On the earliest date on which such payments can be made or commenced without
violating the requirements of Section 409A(a)(2)(B)(i) of the Code, Executive shall be paid,
in a single cash lump sum, an amount equal to the aggregate amount of all payments delayed
pursuant to the preceding sentence.

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     (b) Section 409A Savings Clause. It is intended that any amounts payable under
this Agreement shall either be exempt from Section 409A of the Code or shall comply with
Section 409A (including Treasury regulations and other published guidance related thereto)
so as not to subject Executive to payment of any additional tax, penalty or interest imposed
under Section 409A of the Code. The provisions of this Agreement shall be construed and
interpreted to avoid the imputation of any such additional tax, penalty or interest under
Section 409A of the Code yet preserve (to the nearest extent reasonably possible) the
intended benefit payable to Executive. Notwithstanding the foregoing, the Company makes no
representations regarding the tax treatment of any payments hereunder, and the Executive
shall be responsible for any and all applicable taxes, other than the Company’s share of
employment taxes on the severance payments provided by the Agreement.

     8. Effect of this Amendment. Except as set forth herein, the Executive Severance
Agreement remains in full force and effect. All references to the Executive Severance Agreement
shall be deemed references to the Executive Severance Agreement as amended by this Amendment.

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment effective as of the date
and year first above written.

	 	 	 	 	 	 	 	 	 
	 	 	TOWN SPORTS INTERNATIONAL, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 

3EX-10.8.C

Exhibit 10.8(c)

“1st Lien Amendment”

	 	 	 
	 

	 	AMENDMENT NO. 3 dated as of November 11, 2008 (this
“Amendment”) to the Credit, Security, Guaranty and Pledge
Agreement, dated as of January 12, 2006, as amended and restated as
of April 13, 2007, among RHI Entertainment, LLC (the
“Borrower”), Parent and the Guarantors referred to therein,
the Lenders referred to therein and JPMorgan Chase Bank, N.A., as
Issuing Bank and as Administrative Agent for the Lenders (the
“Administrative Agent”) (as the same has been amended,
supplemented or otherwise modified from time to time prior to this
Amendment, the “Credit Agreement”).

INTRODUCTORY STATEMENT

     WHEREAS, the Lenders have made available to the Borrower certain credit facilities pursuant to
the terms of the Credit Agreement.

     WHEREAS, the Borrower, Parent, the Guarantors, the Required Lenders and the Administrative
Agent have agreed to amend the Credit Agreement, on the terms and subject to the conditions
hereinafter set forth.

     NOW THEREFORE, the parties hereto hereby agree as follows:

SECTION 1. Defined Terms. Capitalized terms used herein and not otherwise defined herein
shall have the meaning given them in the Credit Agreement (for the avoidance of doubt, as amended
by this Amendment).

SECTION 2. Amendments to the Credit Agreement Upon Amendment Effective Date. Subject to
the satisfaction of the conditions precedent set forth in Section 3 hereof:

     (a) Section 1.1 of the Credit Agreement is hereby amended by deleting the final sentence
appearing in clause “C.” of the definition of “Eligible Receivables” and inserting in lieu thereof
the following language:

“For the purposes hereof, “Spot Rate” shall mean the exchange rate of the
applicable foreign currency quoted in Dollars as of the end of the Business Day
(either New York closing price or late New York trading price) immediately
preceding the relevant date of determination (1) as published by The Wall Street
Journal in print or online or (2) if, as of the relevant date of determination, The
Wall Street Journal does not publish such rate, by reference to a print or online
publication of exchange rates reasonably satisfactory to the Administrative Agent
and the Borrower, and in any such case determined without reference to any forward
rate.”

 

 

     (b) Section 2.16(a) of the Credit Agreement is hereby amended by: (i) deleting the word “and”
appearing after clause “(A)” of the first proviso appearing in Section 2.16(a) and (ii) inserting
the following language immediately prior to period appearing at the end of Section 2.16(a):

”, and (C) the Borrower shall not request that any Letter of Credit be issued if,
after giving effect thereto, the then current L/C Exposure would exceed
$10,000,000”

SECTION 3. Conditions to Effectiveness. The effectiveness of this Amendment is subject to
the satisfaction of each of the following conditions (the date on which such conditions have been
satisfied referred to herein as the “Amendment Effective Date”):

     (a) the receipt by the Administrative Agent of counterparts of this Amendment which, when
taken together, bear the signatures of the Borrower, the Parent, the Guarantors (and any entity
required to join the Credit Agreement as a Guarantor pursuant to Section 5.21 of the Credit
Agreement), the Required Lenders and the Administrative Agent;

     (b) after giving effect to this Amendment, no Event of Default or Default shall have occurred
and be continuing; and

     (c) the representations and warranties contained in Section 4 hereof being true and correct.

SECTION 4. Representations and Warranties. Each Credit Party represents and warrants that
before and after giving effect to this Amendment, the representations and warranties contained in
the Credit Agreement are true and correct in all material respects on and as of the date hereof as
if such representations and warranties had been made on and as of the date hereof (except to the
extent that any such representations and warranties specifically relate to an earlier date).

SECTION 5. Further Assurances. At any time and from time to time, upon the Administrative
Agent’s request and at the sole expense of the Credit Parties, each Credit Party will promptly and
duly execute and deliver any and all further instruments and documents and take such further action
as the Administrative Agent reasonably deems necessary to effect the purposes of this Amendment.

SECTION 6. Fundamental Documents. This Amendment shall constitute a Fundamental Document.

SECTION 7. Full Force and Effect. Except as expressly set forth herein, this Amendment
does not constitute a waiver or a modification of any provision of the Credit Agreement or a waiver
of any Event of Default under the Credit Agreement. The Credit Agreement and the other Fundamental
Documents shall continue in full force and effect in accordance with the provisions thereof on the
date hereof and are hereby ratified and affirmed. As used in the Credit Agreement, the terms
“Agreement”, “this Agreement”, “herein”, “hereafter”, “hereto”, “hereof”, and words of similar
import, shall, unless the context otherwise requires, mean the Credit Agreement as amended by this
Amendment.

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SECTION 8. References. This Amendment shall be limited precisely as written and shall not
be deemed (a) to be a consent granted pursuant to, or a waiver or modification of, any other term
or condition of the Credit Agreement or any of the instruments or agreements referred to therein or
(b) to prejudice any right or rights which the Administrative Agent or the Lenders may now have or
have in the future under or in connection with the Credit Agreement or any of the instruments or
agreements referred to therein. Whenever the Credit Agreement is referred to in the Credit
Agreement or any of the instruments, agreements or other documents or papers executed or delivered
in connection therewith, such reference shall be deemed to mean the Credit Agreement as modified by
this Amendment.

SECTION 9. APPLICABLE LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK.

SECTION 10. Counterparts. This Amendment may be executed in two or more counterparts, each
of which shall constitute an original, but all of which when taken together shall constitute but
one instrument. Delivery of an executed counterpart of a signature page of this Amendment by
facsimile transmission or electronic photocopy (i.e., “.pdf”) shall be effective as delivery of a
manually executed counterpart hereof.

SECTION 11. Expenses. The Borrower agrees to pay all out-of-pocket expenses incurred by
the Administrative Agent in connection with the preparation, execution and delivery of this
Amendment, including, but not limited to, the reasonable fees and disbursements of counsel for the
Administrative Agent.

SECTION 12. Headings. The headings of this Amendment are for the purposes of reference
only and shall not affect the construction of or be taken into consideration in interpreting this
Amendment.

[Signature Pages Follow]

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     IN WITNESS WHEREOF, the parties hereby have caused this Amendment to be duly executed as of
the date first written above.

	 	 	 	 	 
	 	BORROWER:

RHI ENTERTAINMENT, LLC

 	 
	 	By  	/s/ Henry S. Hoberman 	 
	 	 	Name:  	Henry S. Hoberman 	 
	 	 	Title:  	EVP, General Counsel & Secretary 	 
	 
	 	PARENT:

RHI ENTERTAINMENT HOLDINGS II, LLC

 	 
	 	By  	/s/ Henry S. Hoberman 	 
	 	 	Name:  	Henry S. Hoberman 	 
	 	 	Title:  	EVP, General Counsel & Secretary 	 
	 
	 	GUARANTORS:

RHI ENTERTAINMENT DISTRIBUTION, LLC

 	 
	 	By  	/s/ Henry S. Hoberman 	 
	 	 	Name:  	Henry S. Hoberman 	 
	 	 	Title:  	EVP, General Counsel & Secretary 	 
	 
	 	RHI ENTERTAINMENT PRODUCTIONS, LLC

 	 
	 	By  	/s/ Henry S. Hoberman 	 
	 	 	Name:  	Henry S. Hoberman 	 
	 	 	Title:  	EVP, General Counsel & Secretary 	 
	 

[Signature Page to Amendment No. 3 to the Amended and Restated Credit Agreement]

 

 

	 	 	 	 	 
	 	RHI INTERNATIONAL DISTRIBUTION, INC.

 	 
	 	By  	/s/ Marty DeGrazia 	 
	 	 	Name:  	Marty DeGrazia 	 
	 	 	Title:  	VP & Secretary 	 
	 
	 	LIBRARY STORAGE, INC.

 	 
	 	By  	/s/ Vincent Montagano 	 
	 	 	Name:  	Vincent Montagano 	 
	 	 	Title:  	President 	 
	 

[Signature Page to Amendment No. 3 to the Amended and Restated Credit Agreement]

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.,

as Administrative Agent and Issuing Bank

 	 
	 	By  	/s/ Alexandra Bratman 	 
	 	 	Name:  	Alexandra Bratman 	 
	 	 	Title:  	Vice President 	 
	 

[Signature Page to Amendment No. 3 to the Amended and Restated Credit Agreement]

 

 

	 	 	 	 	 
	 	LENDER:

Bank of America, N.A.

 	 
	 	By  	/s/ Daniel Timmons 	 
	 	 	Name:  	Daniel Timmons 	 
	 	 	Title:  	Senior Vice President 	 
	 

	 	 	 	 	 
	 	LENDER:

THE ROYAL BANK OF SCOTLAND PLC

 	 
	 	By:  	/s/ Tyler J. McCarthy
 	 
	 	 	Name:  	Tyler J. McCarthy 	 
	 	 	Title:  	Director 	 
	 
	 
	 	LENDER:

UNION BANK OF CALIFORNIA, N.A.

 	 
	 	By:  	/s/ Lawrence Endo
 	 
	 	 	Name:  	Lawrence Endo 	 
	 	 	Title:  	Assistant Vice President 	 
	 
	 
	 	LENDER:

ALLIANCE & LEICESTER COMMERCIAL FINANCE PLC

 	 
	 	By:  	/s/ G.A. Faulkner
 	 
	 	 	Name:  	G.A. Faulkner 	 
	 	 	Title:  	Head of Structured Finance 	 
	 
	 	 	 
	 	By:  	/s/ Jonathan Marchant 	 
	 	 	Name:  	Jonathan Marchant 	 
	 	 	Title:  	Senior Manager 	 
	 
	 
	 	LENDER:

BNP PARIBAS

 	 
	 	By:  	/s/ Gregg Bonardi
 	 
	 	 	Name:  	Gregg Bonardi 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	/s/ Ola Anderssen
 	 
	 	 	Name:  	Ola Anderssen 	 
	 	 	Title:  	Director 	 
	 
	 
	 	LENDER:

BAYERISCHE HYPO- UND VEREINSBANK AG

 	 
	 	By:  	/s/ Bastian Kolbe
 	 
	 	 	Name:  	Bastian Kolbe 	 
	 	 	Title:  	Schwab SVP 	 
	 
	 
	 	LENDER:

ISRAEL DISCOUNT BANK OF NEW YORK

 	 
	 	By:  	/s/ David A. Acosta
 	 
	 	 	Name:  	David A. Acosta 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	 	 
	 	By:  	/s/ Michael Paul
 	 
	 	 	Name:  	Michael Paul 	 
	 	 	Title:  	Vice President 	 
	 
	 
	 	LENDER:

CALIFORNIA BANK & TRUST

 	 
	 	By:  	/s/ Connie McCoy
 	 
	 	 	Name:  	Connie McCoy 	 
	 	 	Title:  	Vice President 	 
	 
	 
	 	LENDER:

BANK LEUMI USA

 	 
	 	By:  	/s/ Jacques Delvoye
 	 
	 	 	Name:  	Jacques Delvoye 	 
	 	 	Title:  	FVP 	 
	 
	 
	 	LENDER:

[THE GOVERNOR AND COMPANY OF THE BANK OF IRELAND]

 	 
	 	By:  	/s/ G.A. Marchant
 	 
	 	 	Name:  	G.A. Marchant 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	/s/ T.J. Herring
 	 
	 	 	Name:  	T.J. Herring 	 
	 	 	Title:  	Manager 	 
	 
	 
	 	LENDER:

MANUFACTURERS BANK

 	 
	 	By:  	/s/ Maureen Kelly
 	 
	 	 	Name:  	Maureen Kelly 	 
	 	 	Title:  	Vice President 	 
	 
	 
	 	LENDER:

CIT LENDING SERVICES CORPORATION

 	 
	 	By:  	/s/ Sherrese Clarke
 	 
	 	 	Name:  	Sherrese Clarke 	 
	 	 	Title:  	Vice President 	 
	 

[Signature Page to Amendment No. 3 to the Amended and Restated Credit Agreement]

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