Document:

exv10w50

Exhibit 10.50

AMENDMENT NO 1 TO FORBEARANCE AGREEMENT

     Amendment No. 1 dated as of September 4, 2009 (this “Amendment”) to the Forbearance
Agreement and Amendment to Securities Purchase Agreement and Other Note Documents dated as of
September 4, 2009 (the “Forbearance Agreement”).

     The parties hereto agree that the following provisions of the Forbearance Agreement are
amended as follows (all section references below refer to Sections in the Forbearance Agreement and
all capitalized terms used without definition have the meaning given in the Forbearance Agreement):

     1. Amendments to the Forbearance Agreement:

	 	a): Recitals: The following recitals to the Forbearance Agreement are
amended and restated in their entirety as follows.

     “B. A scheduled interest payment in the original amount of $1,095,543.74 was due and
payable by the Company to the Holders pursuant to the Notes on June 30, 2009. Pursuant to three
prior Amendments to the Securities Purchase Agreement and Other Note Documents, the Holders granted
the Company successive extensions to such scheduled interest payment date in order to permit the
Company to obtain additional equity financing necessary for the Company’s making of such interest
payment and the performance of certain of its other obligations under the Securities Purchase
Agreement and the Notes. As a result of such extensions, an interest payment (taking into account
the $727,197.59 of additional interest that has accrued in the period commencing on July 1, 2009,
and ending on August 28, 2009) in the amount of $1,822,741.32 was due and payable to the Holders on
August 28, 2009. The Company failed to remit such interest payment and has informed the Holders
that it will not be able to remit, and has not remitted, such interest payment within the 3
Business Day cure period set forth in Section 9.1(a)(ii) of the Securities Purchase Agreement and
therefore an Event of Default has occurred under the Securities Purchase Agreement (such Event of
Default, the “Interest Payment Event of Default”).”

     “E. Pursuant to the Notes, the Company was permitted to capitalize certain amounts of
accrued and unpaid interest on the Notes (the “PIK Interest”). As of March 31, 2009,
$6,518,124.52 of PIK interest had been capitalized and added to the original principal amounts of
the Notes. As of the date of this Agreement, the outstanding aggregate principal balance of the
Notes, inclusive of all such PIK Interest capitalized as of March 31, 2009, together with
$1,822,741.32 of accrued and unpaid interest that was due and payable on August 28, 2009, is
$38,340,865.85. Subject to the terms and conditions set forth below, the Holders have agreed to
permit the Company to capitalize as PIK Interest the $1,822,741.32 of interest that was due and
payable on August 28, 2009, as well as all accrued interest that would otherwise be payable in cash
on each successive Interest Payment Date (as defined in the A&R Notes (as defined below)) as
provided under the A&R Notes.”

     “I. As of the date of this Agreement, Loans with the aggregate principal and interest
amount of $24,030,598 are outstanding to the Company by the Lenders pursuant to the Credit
Agreement and the Notes issued to the Lenders thereunder (the “Current Senior
Obligations”).

 

 

Pursuant to the terms of that certain Amendment No. 5 to Credit Agreement and Forbearance Agreement
of even date herewith (the “Senior Forbearance Agreement”) and that Amended and Restated
Intercreditor Agreement of even date herewith (the “A&R Intercreditor”), the Lenders and
the Credit Agreement Administrative Agent have agreed with the Company and the Holders,
respectively, not to make any additional Loans or other advances to the Company or any other
Company Party following the Effective Date, except for additional advances in an aggregate amount
not to exceed (i) $2,461,062.92 that are necessary for and are used exclusively by the Company
Parties for the express and limited purpose of completing and delivering to Overture the motion
picture currently entitled “Law Abiding Citizen” (any such additional advances made for such
purpose, the “LAC Completion Advances”) and (ii) $1,569,533.74, to the extent required to
fund interest payments as and when due to the Lenders with respect to the Senior Obligations
pursuant to the terms of the Credit Agreement (any such additional advances made for such purpose,
the “Additional Interest Advances”). The Current Senior Obligations together with any LAC
Completion Advances and any Additional Interest Advances, fees, costs and expenses at any time
payable to the Credit Agreement Administrative Agent and the Lenders pursuant to the existing terms
of the Credit Agreement is referred to sometimes hereinafter as the “Senior Obligations”.”

     “J. The Credit Agreement Administrative Agent and the Lenders have agreed to make
disbursements from the Overhead Reserve Account (which has a current balance of $2,970,475.51) to
the Company in the amounts, at such times and for the types of working capital and general
corporate and similar purposes described in an interim operating budget in form and substance
acceptable to the Holders in the exercise of their sole and absolute discretion (a copy of which is
attached hereto as Exhibit B, the “Interim Operating Budget”), for the period from
the Effective Date through December 31, 2009, in an amount not to exceed the monthly amount set
forth in the Interim Operating Budget with respect to any covered calendar month, with any
remaining balance of the Overhead Reserve Account at such time as the Senior Obligations have been
repaid in full to be remitted by the Credit Agreement Collateral Agent to the Holders.”

     b) Section 4(d): Section 4(d) of the Forbearance Agreement is amended and
restated in its entirety as follows:

     “(d) Amendments to Waterfall; Amendments to Payment Provisions. Each Company Party
hereby approves the Waterfall (which for all purposes shall be deemed to amend and restate Schedule
II to the Securities Purchase Agreement) and agrees that all Collections and proceeds of Collateral
shall be deposited into the Collection Account and that disbursements of the proceeds of all
Collections and other proceeds of Collateral to the Lenders, the Company Parties, the Holders and
all other Persons listed therein shall be governed by and made in accordance with the priorities
set forth in the Waterfall. Each Company Party hereby disclaims any right or claim to payments
arising from or in relation to the Collateral or the proceeds thereof except as provided in the
Waterfall. The disclaimer by each Company Party set forth in the immediately preceding sentence is
irrevocable and coupled with an interest. Notwithstanding Sections 2.5, 2.6, 2.7, 2.8 and 2.9 of
the Securities Purchase Agreement to the contrary (all of which Sections are deemed amended to the
extent necessary to conform to the provisions of this Agreement), the aggregate principal amount of
the Notes (including all capitalized interest and other amounts owed thereunder at such time) shall
be paid without premium or penalty: (a) on

 

 

each Settlement Date to the extent that disbursements are available for such purpose under the
Waterfall and (b) to the extent that any amounts remain outstanding thereunder, shall be paid in
full in cash on the “Scheduled Maturity Date” (which term is amended for all purposes of the Second
Lien Documents to mean June 30, 2011).”

     c) Exhibit A: Exhibit A to the Forbearance Agreement is amended and
restated in its entirety as follows:

COLLECTION ACCOUNT PAYMENT WATERFALL

          (a) Subject to paragraphs (b) and (c) below, on each Settlement Date (as defined in the
Credit Agreement), the Credit Agreement Administrative Agent shall (if the Credit Agreement
Administrative Agent has approved the Company Settlement Statement delivered by the Company) (and
after the satisfaction of the Senior Obligations, the Collateral Agent shall): (i) if the
Collection Bank is also the Credit Agreement Administrative Agent, apply all collected and
available funds on deposit in the Collection Account (including any investment earnings received
with respect to such funds); or (ii) if the Collection Bank is not also the Credit Agreement
Administrative Agent, instruct the Collection Bank in writing to apply all collected and available
funds on deposit in the Collection Account (including any investment earnings received with respect
to such funds), in each case in the following order of priority and in accordance with such Company
Settlement Statement:

               (i) first, to the extent not deducted directly out of revenues prior to deposit
into the Collection Account or otherwise paid, to the “P&R Reserve Account” (as defined in the
Credit Agreement) for payment by the Company and/or any appropriate Note Party to third parties
(that are not Affiliates) of participations and residuals (to the extent not previously paid) in
respect of any Film; provided, that: (A) in no event shall any sums in such P&R Reserve
Account designated and reserved for the payment of residuals in respect of any Film be retained in
such P&R Reserve Account for more than 12 months following the date of their deposit therein, and
any such sums that have not been paid to the applicable recipient by such time shall be applied to
the next applicable tier of this Waterfall; and (B) in no event shall any sums designated and
reserved for payment of participations in respect of any Film be retained in such P&R Reserve
Account for more than four (4) months following the date of their deposit therein, and any such
sums that have not been paid to the applicable recipient by such time shall be applied to the next
applicable tier of this Waterfall;

               (ii) second, ratably, to the account of the Credit Agreement Administrative
Agent designated in accordance with Section 2.12(a) of the Credit Agreement, for payment by the
Credit Agreement Administrative Agent of any and all outstanding Senior Obligations, until such
time as all outstanding Senior Obligations have been repaid in full in cash;

               (iii) third, to an account designated by the Collateral Agent, for distributions
to the Holders to be applied against all outstanding Obligations, until such time as all
outstanding Obligations have been repaid in full in cash; and

               (iv) fourth, to an account designated by the Company in writing.

 

 

          (b) If, on any Settlement Date, any Approved Completion Guarantor (i) has advanced amounts
under the completion guaranty issued by it with respect to any Film (any such Film, a
“Designated Film”) and (ii) has not been reimbursed in full for all amounts advanced by it
and all other amounts payable pursuant thereto, then, notwithstanding the order of priority set
forth in paragraph (a) above, at such time as the aggregate principal amount of Obligations in
respect of the Designated Film (together with all interest thereon and fees and costs incurred in
connection therewith to the extent permitted by the applicable Completion Guaranty) have been
repaid in full, all subsequent sums derived from such Designated Film and deposited into the
Collection Account shall be applied (A) first, solely with respect to the residuals
referenced in paragraph (a)(i) above (and not with respect to the participations referenced
in such paragraph), for payment of such residuals in accordance with such paragraph, (B)
second, to the Company’s operating account for payment by the Company to such Approved
Completion Guarantor until such Approved Completion Guarantor shall have been reimbursed in full
and (C) third, as provided in paragraph (a) above.

          (c) If, on any Settlement Date, the Collection Account contains any Collections paid or
remitted by Overture pursuant to the Overture Agreement, or the proceeds thereof (“Overture
Proceeds”), and the Holders have not theretofore received full repayment (pursuant to this
paragraph (c)) of the principal portion of the Overture Advance and all accrued and unpaid interest
thereon (provided, that only that portion of interest accruing on the Overture Advance at the
non-default rate of 12.0% per annum shall be payable under this paragraph (c) to the Holders),
then, notwithstanding the order of priority set forth in paragraph (a) above, all Overture Proceeds
shall be applied (i) first, solely with respect to the residuals referenced in paragraph (a)(i)
above (and not with respect to the participations referenced in such paragraph), for payment of
such residuals in accordance with such paragraph (a)(i), and (ii) second, to an account designated
by the Collection Agent for distributions to the Holders, until such time as the Holders have
received (pursuant to this paragraph (c)) the full repayment of the Overture Advance and all
accrued and unpaid interest thereon (provided, that only that portion of interest accruing on the
Overture Advance at the non-default rate of 12.0% per annum shall be payable under this paragraph
(c) to the Holders).

     2. Full Force and Effect. Except as expressly set forth herein, this Amendment does
not constitute a waiver or a modification of a provision of the Forbearance Agreement or a waiver
of any Forbearance Default under the Forbearance Agreement and the Forbearance Agreement and the
other Second Lien Documents shall continue in full force and effect in accordance with the
provisions thereof on the date hereof and are hereby ratified and affirmed.

     3. 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 Forbearance Agreement or any of the instruments or agreements referred to therein
or (b) to prejudice any right or rights which the Collateral Agent or the Holders may now have or
have in the future under or in connection with the Forbearance Agreement or any of the instruments
or agreements referred to therein. Whenever the Forbearance Agreement is referred to in the
Forbearance 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 Forbearance
Agreement as modified by this Amendment.

 

 

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

     5. 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 signature page hereto by facsimile or other
electronic transmission shall be effective as delivery of a manually executed counterpart hereof.

[Signature Page Follows]

 

 

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

	 	 	 	 	 
	 	THE FILM DEPARTMENT LLC

By: THE FILM DEPARTMENT HOLDINGS

LLC, its sole Member

 	 
	 	By:  	/s/ Neil Sacker
 	 
	 	 	Neil Sacker, President &  	 
	 	 	Chief Operating Officer 	 
	 
	 	THE FILM DEPARTMENT HOLDINGS LLC

 	 
	 	By:  	/s/ Neil Sacker
 	 
	 	 	Neil Sacker, President & Chief Operating 	 
	 	 	Officer 	 
	 
	 	TFD LITERARY ACQUISITIONS, LLC

By: The Film Department LLC, its sole Member

 	 
	 	By:  	/s/ Neil Sacker
 	 
	 	 	Neil Sacker, President & Chief Operating 	 
	 	 	Officer 	 
	 
	 	REBOUND DISTRIBUTION LLC

By: The Film Department LLC, its sole Member

 	 
	 	By:  	/s/ Neil Sacker
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE FILM DEPARTMENT INTERNATIONAL,

LLC

By: The Film Department LLC, its sole Member

 	 
	 	By:  	/s/ Neil Sacker
 	 
	 	 	Neil Sacker, President & Chief Operating Officer 	 
	 	 	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	LAC FILMS, LLC

By: The Film Department LLC, its sole Member 	 
	 
	 	By:  	
/s/ Neil Sacker	 
	 	 	Neil Sacker, President & Chief Operating Officer 
	 	 	 	 
	 
	 	ETON PARK CLO MANAGEMENT 1 

By: Eton Park Asset Management, L.L.C, 

as Collateral Manager, as a Holder

 	 
	 	By:  	/s/ Helen Watkins
 	 
	 	 	Name:  	HELEN WATKINS 	 
	 	 	Its: CHIEF LEGAL OFFICER 	 
	 
	 	ETON PARK CLO MANAGEMENT 2 

By: Eton Park Asset Management, L.L.C., 

as Collateral Manager, as a Holder

 	 
	 	By:  	/s/ Helen Watkins
 	 
	 	 	Name:  	HELEN WATKINS 	 
	 	 	Its: CHIEF LEGAL OFFICER 	 
	 
	 	ETON PARK MASTER FUND, LTD. 

BY: Eton Park Capital Management, L.P., 

its Investment Manager, as a Holder

 	 
	 	By:  	/s/ Helen Watkins
 	 
	 	 	Name:  	HELEN WATKINS 	 
	 	 	Its: AUTHORISED SIGNATORY	 
	 
	 	ETON PARK FUND, L.P.

By: Eton Park Capital Management, L.P., its

investment manager, as a Holder

 	 
	 	By:  	/s/ Helen Watkins
 	 
	 	 	Name:  	HELEN WATKINS 	 
	 	 	Its: AUTHORISED SIGNATORY 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	UNION BANK, N.A., 

as Collateral Agent

 	 
	 	By:  	/s/ Alex Cho
 	 
	 	 	Name:  	Alex Cho 	 
	 	 	Its: Duly Authorized Signatoryexv10w51

Exhibit 10.51

AMENDMENT NO 2 TO FORBEARANCE AGREEMENT

     Amendment No. 2 dated as of September 9, 2009 (this “Amendment”) to the Forbearance
Agreement and Amendment to Securities Purchase Agreement and Other Note Documents dated as of
September 2, 2009 (as amended by Amendment No. 1, dated as of September 4, 2009, the
“Forbearance Agreement”).

     The parties hereto agree that the following provisions of the Forbearance Agreement are
amended as follows (all section references below refer to Sections in the Forbearance Agreement
and all capitalized terms used without definition have the meaning given in the Forbearance
Agreement):

     1. Amendments to the Forbearance Agreement:

	 	a) : Recitals: Recital F to the Forbearance Agreement is amended and
restated in its entirety as follows.

     “F. Pursuant to that certain distribution agreement by and between LAC FILMS, LLC, a
Delaware limited liability company (“LAC”), the Company and Overture Films, LLC
(“Overture”), dated as of January 20, 2009 (as amended pursuant to that certain amendment letter
dated as of February 20, 2009, that certain Second Amendment to Agreement dated as of May 20, 2009,
and that certain Third Amendment to Agreement dated as of July 20, 2009, the “Overture Agreement”),
the Company is required to provide a letter of credit in favor of, or make a payment to, Overture
in the amount of $5 million (such amount, the “Overture Obligation”) for Overture’s use in
covering certain domestic distribution expenses in connection with the motion picture presently
entitled “Law Abiding Citizen”. To date the Company has deposited monies in the aggregate amount of
$1,224,416.00 into a reserve account maintained at the Collateral Agent (the “Overture Reserve
Account”), thus leaving a shortfall of $3,775,585.00 (such funding shortfall, the “Overture
Reserve Account Shortfall”) with respect to the Company’s ability to comply with its obligation
to satisfy the Overture Obligation. Subject to the terms and conditions set forth below, the
Holders have agreed to deposit immediately available funds in the amount of the Overture Reserve
Account Shortfall (the advancing of such funds, the “Overture Advance”) into the Overture
Reserve Account (or, at the Holders discretion, directly to an account designated by Overture in
accordance with the Overture Agreement) upon the satisfaction of each condition precedent to the
effectiveness of this Agreement.”

     b) Correction. The incorrect reference to “September 4, 2009” as the date of the
Forbearance Agreement in the introductory paragraph of Amendment No. 1 to Forbearance
Agreement is deleted and replaced with “September 2, 2009”.

     2. Full Force and Effect. Except as expressly set forth herein, this Amendment
does not constitute a waiver or a modification of a provision of the Forbearance Agreement or a
waiver of any Forbearance Default under the Forbearance Agreement and the Forbearance Agreement and
the other Second Lien Documents shall continue in full force and effect in accordance with the
provisions thereof on the date hereof and are hereby ratified and affirmed.

     3. 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 Forbearance Agreement or any of the instruments or agreements referred to therein
or (b) to prejudice any right or rights which the Collateral Agent or the Holders may now have or
have in the future under or in connection with the Forbearance Agreement or any of the instruments
or agreements referred to therein. Whenever the Forbearance Agreement is referred to in the
Forbearance 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 Forbearance
Agreement as modified by this Amendment.

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

     5. 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 signature page hereto by facsimile or other
electronic transmission shall be effective as delivery of a manually executed counterpart hereof.

[Signature Page Follows]

 

 

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

	 	 	 	 	 
	 	THE FILM DEPARTMENT LLC

By: THE FILM DEPARTMENT HOLDINGS

LLC, its sole Member

 	 
	 	By:  	/s/ Neil Sacker
 	 
	 	 	Neil Sacker, President & 	 
	 	 	Chief Operating Officer 	 
	 
	 	THE FILM DEPARTMENT HOLDINGS LLC

 	 
	 	By:  	/s/ Neil Sacker
 	 
	 	 	Neil Sacker, President & Chief Operating 	 
	 	 	Officer 	 
	 
	 	TFD LITERARY ACQUISITIONS, LLC

By: The Film Department LLC, its sole Member

 	 
	 	By:  	/s/ Neil Sacker
 	 
	 	 	Neil Sacker, President & Chief Operating 	 
	 	 	Officer 	 
	 
	 	REBOUND DISTRIBUTION LLC

By: The Film Department LLC, its sole Member

 	 
	 	By:  	/s/ Neil Sacker
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THE FILM DEPARTMENT INTERNATIONAL,

LLC

By: The Film Department LLC, its sole Member

 	 
	 	By:  	/s/ Neil Sacker
 	 
	 	 	Neil Sacker, President & Chief Operating Officer 	 
	 	 	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	LAC FILMS, LLC

By: The Film Department LLC, its sole Member

 	 
	 	By:  	/s/ Neil Sacker
 	 
	 	 	Neil Sacker, President & Chief Operating Officer 	 
	 	 	 	 
	 
	 	ETON PARK CLO MANAGEMENT 1 

By: Eton Park Asset Management, L.L.C, 

as Collateral Manager, as a Holder

 	 
	 	By:  	/s/
Terrence Aquino
 	 
	 	 	Name:  	Terrence Aquino	 
	 	 	Its:  Controller	 
	 
	 	ETON PARK CLO MANAGEMENT 2 

By: Eton Park Asset Management, L.L.C., 

as Collateral Manager, as a Holder

 	 
	 	By:  	/s/
Terrence Aquino
 	 
	 	 	Name:  	Terrence Aquino 	 
	 	 	Its:  Controller	 
	 
	 	ETON PARK MASTER FUND, LTD. 

BY: Eton Park Capital Management, L.P., 

its Investment Manager, as a Holder

 	 
	 	By:  	/s/
Terrence Aquino
 	 
	 	 	Name:  	Terrence Aquino 	 
	 	 	Its:  Controller	 

	 	 	 	 	 
	 	ETON PARK FUND, L.P.

By: Eton Park Capital Management, L.P., its

investment manager, as a Holder

 	 
	 	By:  	/s/
Terrence Aquino
 	 
	 	 	Name:  	Terrence Aquino 	 
	 	 	Its:  Controller

 

 

	 	 	 	 	 
	 	UNION BANK, N.A.,

as Collateral Agent
 	 
	 
	 	By:  	
/s/ Alex Cho	 
	 	 	Name:  	Alex Cho
	 
	 	 	Its:	Duly Authorized Signatory

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