Document:

Exhibit
10.21

 

 

TERMINATION AGREEMENT

 

This Termination
Agreement (this “Agreement”) is
entered into as of the       day of
               ,
2005 by and between Warner Music Group Corp., a Delaware corporation formerly
known as WMG Parent Corp. (“Parent”), WMG
Holdings Corp., a Delaware corporation and a wholly owned subsidiary of
Parent,(“Holdings”), WMG Acquisition Corp., a
Delaware corporation and a wholly owned subsidiary of Holdings (the “Company”), THL Managers V, L.L.C., a Delaware limited
liability company (“THL”), Bain
Capital Partners, LLC, a Delaware limited liability company (“Bain”), Providence Equity Partners IV Inc., a Delaware
corporation (“Providence”) and Music Partners
Management, LLC, a Delaware limited liability company (“Music”
and, together with THL, Bain and Providence, the “Managers”).

 

WHEREAS, Parent,
Holdings, the Company and the Managers are party to a Management Agreement
dated February 29, 2004 (the “Management
Agreement”);

 

WHEREAS, Parent,
Holdings, the Company and the Managers desire to discontinue the provision of
services by the Managers to Parent, Holdings and the Company and the payment of
fees to the Managers for such services, each as described in the Management
Agreement;

 

NOW THEREFORE, in
consideration of the mutual covenants contained herein, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound, hereby agree
as follows:

 

1.                                       Definitions. 
Capitalized terms used but not defined in this Agreement shall have the
definitions set forth in the Management Agreement.

 

2.                                       Termination. 
Parent, Holdings, the Company and the Managers hereby agree that:

 

(a)                                  effective upon the date hereof, the
Management Agreement is hereby terminated; provided, however,
that the provisions of Sections 4, 5 and 7 through 12 of the Management
Agreement shall survive such termination and remain in full force and effect,
including without limitation in the case of Sections 4 and 5 with respect to services,
if any, provided by a Manager or any of its affiliates to the Company,
Holdings, Parent or any of their affiliates after the termination of the
Management Agreement; provided  further, however, that such
termination is subject to reversal as set forth below;

 

(b)                                 in consideration of services rendered
under, and the termination of, the Management Agreement, Parent, Holdings and
the Company, jointly and

 

 

severally, shall pay
the Managers, by wire transfer of immediately available federal funds to the
accounts specified by the Managers, the sum (the “Termination
Fee”) of seventy-three million two hundred forty-seven thousand four
hundred thirty-eight dollars ($73,247,438) on or prior to the date that is
ninety (90) days after the date hereof (the “Payment
Deadline Date”), such Termination Fee to be allocated among the
Managers in the manner set forth in Section 2(b) of the Management
Agreement based on holdings of Investor Shares as of the date hereof, such
right of the Managers to payment of the Termination Fee being non-transferable
and non-assignable; and

 

(c)                                  if the Termination Fee has not been fully
paid on or prior to the Payment Deadline Date (the period from the date hereof
through the Payment Deadline Date being the “Termination
Period”), then: (i) the Management Agreement shall again be in full
force and effect and shall be deemed to have been in full force and effect at
all times from and after the date hereof as if never terminated (provided
that none of the Managers shall be deemed in breach of the Management Agreement
on account of non-performance of any services during the Termination Period;
and provided that none of Parent, Holdings or the Company shall be
deemed in breach of the Management Agreement on account of non-payment of any
Periodic Fees that would have been due and payable during the Termination
Period, so long as any such Periodic Fees are paid promptly, and in any event
within five (5) business days, after the end of the Termination Period); (ii)
the obligation to pay the Termination Fee hereunder shall be defeased and none
of Parent, Holdings or the Company shall be deemed in breach of this Agreement
on account of non-payment of the Termination Fee; and (iii) to the extent that
any payments in respect of the Termination Fee were made during the Termination
Period, such payments will be offset against any Periodic Fees payable to the
Managers.

 

3.                                       Governing Law. 
This Agreement and all matters arising under or related to this
Agreement shall be governed by and construed in accordance with the domestic
substantive laws of the State of Delaware without giving effect to any choice
or conflict of law provision or rule that would cause the application of the
domestic substantive laws of any other jurisdiction.

 

4.                                       Amendments and
Waivers.  No amendment or waiver of any term, provision
or condition of this Agreement shall be effective as against any party, unless
in writing and executed by such party.

 

5.                                       Miscellaneous.  Except as expressly provided herein, the
rights and obligations of the parties to the Agreement and, to the extent
surviving termination, the Management Agreement, shall be binding upon and
shall inure to the benefit of their respective successors and assigns.  This Agreement may be executed in any

 

 

number of counterparts and by each of the
parties hereto in separate counterparts, each of which when so executed shall
be deemed to be an original and all of which together shall constitute one and
the same agreement.

 

 

IN WITNESS WHEREOF,
each of the parties has caused this Agreement to be executed on its behalf as
of the date first above written by its officer or representative thereunto duly
authorized.

 

	
  PARENT:

  	
  WARNER MUSIC GROUP
  CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

	
  HOLDINGS:

  	
  WMG HOLDINGS CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

	
  THE COMPANY:

  	
  WMG ACQUISITION CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

	
  THL:

  	
  THL MANAGERS V, L.L.C.

  
	
   

  	
  By:

  	
   Thomas H. Lee
  Partners L.P.,

  	
   

  
	
   

  	
   

  	
   its Managing
  Member

  	
   

  
	
   

  	
  By:

  	
   Thomas H. Lee
  Advisors L.L.C.

  	
   

  
	
   

  	
   

  	
   General
  Partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

	
  BAIN:

  	
  BAIN CAPITAL PARTNERS,
  LLC

  
	
   

  	
  By:

  	
   Bain Capital
  LLC, its sole member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

	
  PROVIDENCE:

  	
  PROVIDENCE EQUITY
  PARTNERS IV INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

	
  MUSIC:

  	
  MUSIC PARTNERS
  MANAGEMENT, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:Exhibit 10.52

 

WMG ACQUISITION CORP.

Issuer

 

THE SUBSIDIARY GUARANTORS
PARTIES HERETO

 

And

 

WELLS FARGO BANK,
NATIONAL ASSOCIATION,

 

Trustee

 

 

SECOND SUPPLEMENTAL
INDENTURE

 

Dated as of          ,
2005

 

TO

 

INDENTURE

 

Dated as of April 8, 2004

 

as amended by the

 

First
Supplemental Indenture

 

Dated
as of November 16, 2004

 

U.S.
Dollar-denominated 7 3/8% Senior Subordinated Notes due 2014

Sterling-denominated 8 1/8%
Senior Subordinated Notes due 2014

 

 

 

 

                This SECOND
SUPPLEMENTAL INDENTURE is dated as of this      th day of                  ,
2005 (the “Second Supplemental Indenture”), among WMG ACQUISITION CORP., a
Delaware corporation (the “Issuer”), the Subsidiary Guarantors parties hereto
(as listed below) and WELLS FARGO BANK, NATIONAL ASSOCIATION, as indenture
trustee (the “Trustee”).

 

                WHEREAS, the
Issuer, the Subsidiary Guarantors and the Trustee entered into an Indenture
dated as of April 8, 2004, as amended by the First Supplemental Indenture dated
as of November 16, 2004 (the “Indenture”), for the benefit of each other and
for the equal and ratable benefit of the Holders of the U.S. Dollar-denominated
7 3/8% Senior Subordinated Notes due 2014 and the Sterling-denominated 8 1/8%
Senior Subordinated Notes due 2014 (the “Notes”). Capitalized terms used herein
without definition have the meanings ascribed to such terms in the Indenture.

 

                WHEREAS, Section
4.16 of the Indenture requires the Issuer to cause certain Restricted
Subsidiaries to execute and deliver a supplemental indenture to the Indenture providing
for issuance by such Restricted Subsidiary of a Subsidiary Guarantee of payment
of the Notes.

 

                WHEREAS,
the foregoing amendment is permitted under Section 9.01(6) of the Indenture.

 

                WHEREAS, the
Issuer and the Subsidiary Guarantors desire and have requested the Trustee to
join with it in the execution and delivery of this Second Supplemental
Indenture,

 

                NOW, THEREFORE, in
consideration of the addition of the Subsidiary Guarantor named below as
Subsidiary Guarantor hereunder, the Issuer and the Guarantor named below
covenant and agree with the Trustee as follows:

 

                1. NonZero LLC
shall become a Subsidiary Guarantor as of the date of this Second Supplemental
Indenture by execution and delivery of this Second Supplemental Indenture.

 

                2.  The Indenture, as supplemented and amended by
this Second Supplemental Indenture, is in all respects ratified and confirmed,
and the Indenture and this Second Supplemental Indenture shall be read, taken and construed as one and the same instrument.

 

                3.  If any provision hereof limits, qualifies or
conflicts with another provision hereof which is required to be included in
this Second Supplemental Indenture by any of the provisions of the Trust
Indenture Act, such required provision shall control.

 

                4.  All covenants and agreements in this Second
Supplemental Indenture by the Company and the Guarantors shall bind their
respective successors and assigns, whether so expressed or not.

 

                5.  In case any provision in this Second
Supplemental Indenture shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

 

                6.  Nothing in this Second Supplemental
Indenture, expressed or implied, shall give to any Person, other than the
parties hereto and their successors hereunder, and the Holders any benefit or
any legal or equitable right, remedy or claim under this Second Supplemental
Indenture.

 

                7.  THIS SECOND SUPPLEMENTAL INDENTURE AND THE
SECURITIES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK.

 

2

 

 

                8.  All terms used in this Second Supplemental
Indenture not otherwise defined herein that are defined in the Indenture shall
have the meanings set forth therein.

 

                9.  This Second Supplemental Indenture may be
executed in any number of counterparts, each of which shall be an original; but
such counterparts shall together constitute but one and the same instrument.

 

                10.  The recitals contained herein shall be taken
as statements of the Issuer and the Subsidiary Guarantor, and the Trustee
assumes no responsibility for their correctness.  The Trustee makes no representations as to
the validity or sufficiency of the Indenture, this Second Supplemental
Indenture or of the Notes and shall not be accountable for the use or
application by the Company of the Notes or the proceeds thereof.

 

 

[REMAINDER OF PAGE INTENTIONALLY
BLANK]

 

 

3

 

 

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

 

 

	
   

  	
  WMG ACQUISITION CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  NONZERO LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

4

 

 

	
   

  	
  WELLS FARGO BANK, NATIONAL

  ASSOCIATION, as Indenture Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  

 

5

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