Document:

exv10w42

Exhibit 10.42

AMENDMENT NO. 3

TO

SECURITIES PURCHASE AGREEMENT

     AMENDMENT NO. 3 TO SECURITIES PURCHASE AGREEMENT dated as of September 9, 2008 (this
“Amendment”) with respect to the Securities Purchase Agreement dated as of June 27, 2007
(as amended, restated, supplemented or otherwise modified from time to time, the “Securities
Purchase Agreement”) among THE FILM DEPARTMENT LLC, a Delaware limited liability company (the
“Company”), THE FILM DEPARTMENT HOLDINGS LLC, a Delaware limited liability company
(“Holdings”), the Purchasers party thereto and UNION BANK OF CALIFORNIA, N.A., as
collateral agent for the Secured Parties defined therein (in such capacity, and together with its
successors and permitted assigns, the “Collateral Agent”). Terms defined in the Securities
Purchase Agreement and not otherwise defined herein are used herein as therein defined.

R E C I T A L S

     The Company, Holdings and the Required Holders have agreed to amend the Securities Purchase
Agreement in accordance with, and pursuant to the terms and conditions set forth in, this
Amendment, and TFD LITERARY ACQUISITIONS, LLC, a Delaware limited liability company (“TFD
Acquisitions”), has agreed to consent and make various other agreements with respect to such
amendments.

     In consideration of the mutual agreements herein contained and other good and valuable
consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto
agree as follows:

     Section 1. Restatement of Schedule II to the Securities Purchase Agreement. Schedule II to
the Securities Purchase Agreement hereby is amended and restated in its entirety in the form
attached hereto as Amended and Restated Schedule II.

     Section 2. Consent of Holdings and TFD Acquisition. Each of Holdings and TFD Acquisitions
hereby acknowledges and consents to this Amendment, and affirms and acknowledges that the Guaranty
and Security Agreement and each other Note Document executed and delivered by it remains in full
force and effect and that it remains obligated thereunder without defense, offset or counterclaim
of any kind whatsoever, as if each such Note Document were executed and delivered to Collateral
Agent and the Purchasers (or their assigns) on the date hereof.

     Section 3. Representations and Warranties. To induce the Required Holders to enter into this
Amendment, the Company, Holdings and TFD Acquisitions represent and warrant to the Required Holders
that:

     (a) Representations and Warranties in Note Documents. Each of the
representations and warranties of the Company, Holdings and TFD Acquisitions contained in
the Note Documents to which each is a party (i) were true and correct in all material
respects when made and (ii) after giving effect to this Amendment, continue to be true and
correct in all material respects on the date hereof (except to the extent that such
representations and warranties relate expressly to an earlier date).

1

 

     (b) Authority. The execution and delivery by each of the Company, Holdings and TFD
Acquisitions of this Amendment and each other document to be executed by such Person in
accordance with the terms hereof and the performance by the Company, Holdings and TFD
Acquisitions of their respective obligations under the Securities Purchase Agreement as
amended hereby (i) are within such Person’s power and authority, (ii) have been duly
authorized by all necessary proceedings, (iii) do not (A) contravene the Constituent
Documents of either Person, (B) violate any applicable Requirements of Law, (C) conflict
with, contravene, constitute a default or breach under, or result in or permit the
termination or acceleration of, any material Contractual Obligation of such Person or any of
its Subsidiaries (including other Related Documents or Note Documents) other than those that
would not, in the aggregate, have a Material Adverse Effect or (D) result in the imposition
of any Lien (other than a Permitted Lien) upon any property of any such Person or any of
such Person’s respective Subsidiaries and (iv) do not require any Permit of, or filing with,
any Governmental Authority or any consent of, or notice to, any such Person.

     (c) Enforceability. Each Note Document (including the Securities Purchase
Agreement, as amended hereby) constitutes a legal, valid and binding obligation of the
Company, Holdings and TFD Acquisitions, as the case may be, enforceable against such Person
in accordance with its terms.

     (d) No Default. After giving effect to this Amendment, no Default or Event of
Default exists.

     Section 4. Conditions to Effectiveness. This Amendment shall become effective on the date
when the following conditions precedent have been satisfied (such date, the “Effective
Date”):

     (a) The Company, Holdings, TFD Acquisitions, the Required Holders and the Collateral
Agent shall have executed and delivered this Amendment.

     (b) The Required Holders shall have received a certified copy of an amendment to the
Credit Agreement providing consents and amendments substantially similar to those provided
herein.

     (c) The representations and warranties set forth in Section 3 hereof shall be true and
correct on the date hereof and on the Effective Date.

     (d) No injunction, writ, restraining order, or other order of any nature prohibiting,
directly or indirectly, the consummation of the transactions contemplated herein shall have
been issued and remain in force by any Governmental Authority against the Company, Holdings,
TFD Acquisitions or any Holder.

     (e) The Company shall have paid all reasonable out-of-pocket costs and expenses of the
Holders, to the extent invoices therefor have been presented.

     Section 5. Ratification and Incorporation of Securities Purchase Agreement; No Novation. The
Company, Holdings and TFD Acquisitions expressly acknowledge and agree with each of the following:

     (a) except as expressly modified under this Amendment, (i) each of Company, Holdings
and TFD Acquisitions hereby acknowledges, confirms, and ratifies all of the terms and

2

 

conditions set forth in, and all of its obligations under (including all Liens granted
pursuant to), the Securities Purchase Agreement and the other Note Documents to which it is
a party and (ii) all of the terms and conditions set forth in the Securities Purchase
Agreement and the other Note Documents are incorporated herein by this reference as if set
forth in full herein; and

     (b) except as expressly modified under this Amendment, the execution, delivery, and
effectiveness of this Amendment shall not (i) limit, impair, constitute a waiver of, or
otherwise affect any right, power, or remedy of any Secured Party under the Securities
Purchase Agreement or any other Note Document, (ii) constitute a waiver of any provision in
the Securities Purchase Agreement or in any of the other Note Documents, or (iii) alter,
modify, amend, or in any way affect any of the terms, conditions, obligations, covenants, or
agreements contained in the Securities Purchase Agreement, all of which are ratified and
affirmed in all respects and shall continue in full force and effect.

Section 6. Reference to and Effect on Securities Purchase Agreement.

     (a) Upon the effectiveness of this Amendment, each reference in the Securities Purchase
Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import, and each
reference in the other Note Documents to the Securities Purchase Agreement, shall mean and
be a reference to the Securities Purchase Agreement as amended hereby.

     (b) This Amendment shall be a Note Document for all purposes.

     Section 7. Benefits of Amendment. The terms and provisions of this Amendment shall be binding
upon and inure to the benefit of the parties to the Securities Purchase Agreement and the other
parties hereto and their respective successors and assigns to the extent contemplated by the Note
Documents.

     Section 8. Interpretation. The Section headings used in this Amendment are for convenience of
reference only and shall not affect the construction hereof.

     Section 9. Execution in Counterparts. This Amendment may be executed in any number of
counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an
original and all of which counterparts, taken together, shall constitute but one and the same
Amendment. Delivery of an executed counterpart of a signature page hereto by facsimile or other
electronic transmission shall be equally effective as delivery of a manually executed counterpart
of this Amendment.

     Section 10. Severability. If any provision of this Amendment shall be held to be invalid,
illegal or unenforceable under applicable law in any jurisdiction, such provision shall be
ineffective only to the extent of such invalidity, illegality or unenforceability, which shall not
affect any other provisions hereof or the validity, legality and enforceability of such provision
in any other jurisdiction.

     Section 11. Governing Law. This Amendment and the rights and obligations of the parties
hereto shall be governed by, and construed and interpreted in accordance with, the law of the State
of New York.

     Section 12. Entire Agreement. This Amendment together with all other instruments, agreements,
and certificates executed by the parties in connection herewith or with reference thereto, embody
the entire understanding and agreement between the parties hereto and thereto with respect to the

3

 

subject matter hereof and thereof and supercede all prior agreements, understandings, and
inducements, whether express or implied, oral or written.

[signature pages follow]

4

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered
as of the date first set forth 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 HOLDINGS LLC, its sole Member

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

 

SIGNATURE PAGE TO AMENDMENT NO. 3 TO SECURITIES PURCHASE AGREEMENT

THE FILM DEPARTMENT LLC

 

	 	 	 	 	 

	 	 	 	 	 
	 	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	 

SIGNATURE PAGE TO AMENDMENT NO. 3 TO SECURITIES PURCHASE AGREEMENT

THE FILM DEPARTMENT LLC

 

	 	 	 	 	 

	 	 	 	 	 
	 	UNION BANK OF CALIFORNIA, N.A.,

as Collateral Agent

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

SIGNATURE PAGE TO AMENDMENT NO. 3 TO SECURITIES PURCHASE AGREEMENT

THE FILM DEPARTMENT LLC

 

AMENDED AND RESTATED

SCHEDULE II

COLLECTION ACCOUNT PAYMENT WATERFALL

          (a) Subject to paragraphs (b), (c) and (d) 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 Borrower Settlement Statement delivered by the Company) : (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) in the following order of priority and in accordance with the Borrower
Settlement Statement; 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 the following order of priority and in accordance with the Borrower Settlement
Statement and the Collection Account Agreement:

          (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 for
payment by the Company to third parties (that are not Affiliates) of participations and
residuals (to the extent not previously paid);

          (ii) second, ratably, (A) to the account of the Credit Agreement
Administrative Agent designated in accordance with Section 2.13(a) of the Credit
Agreement, for payment by the Credit Agreement Administrative Agent of (I) the annual
Agency Fee under the Fee Letter and (II) any other fees or expenses of the Credit Agreement
Administrative Agent or the Credit Agreement Collateral Agent for which the Company is
responsible (other than the unused commitment fee), and (B) to the account designated by
the Collateral Agent from time to time, for payment in respect of expenses of the
Collateral Agent, in each case to the extent due and payable;

          (iii) third, to the account of the Credit Agreement Administrative Agent
designated in accordance with Section 2.13(a) of the Credit Agreement, for payment
by the Credit Agreement Administrative Agent of (A) interest and any unused commitment fee
and (B) any letter of credit fees and related issuance expenses to the L/C Issuer;

          (iv) fourth, to the extent the aggregate amount of funds on deposit in the
applicable Borrower Liquidity Reserve Account is less than the applicable Threshold Amount,
to such Borrower Liquidity Reserve Account in the amount of such deficiency;

          (v) fifth, if not otherwise prohibited from being paid or received in
accordance with the Intercreditor Agreement and the Company has not elected to defer the
payment of cash interest on the Notes in accordance with the terms thereof, to the
Company’s operating account for payment of interest in cash on the Notes;

          (vi) sixth, to the Company’s operating account, for distributions to be made
by the Company to Holdings for payment by Holdings to the holders of its Stock to enable
such holders to pay their respective tax obligations with respect to taxable income
allocated to them from Holdings and its Subsidiaries in accordance with Section
8.5(c)(i);

          (vii) seventh, to the account of the Credit Agreement Administrative Agent
designated in accordance with Section 2.13(a) of the Credit Agreement, for payment
by the

8

 

Credit Agreement Administrative Agent of principal on all revolving loans then
outstanding under the Credit Agreement;

          (viii) eighth, to the account of the Credit Agreement Administrative Agent
designated in accordance with Section 2.13(a) of the Credit Agreement, for payment
by the Credit Agreement Administrative Agent of any other obligations or liabilities then
due and payable under the Credit Agreement; and

          (ix) ninth, to the Company’s operating account for use by the Company in
accordance with the provisions of the Agreement and the Operating Budget.

          (b) Subject to paragraphs (c) and (d) below, if, on any Settlement Date, any Approved
Completion Guarantor (i) has advanced amounts under the completion guaranty issued by it with
respect to a Qualifying Film (any such Qualifying 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 loans made under the Credit Agreement 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,
and the Company has retained or recouped any sums permitted by such Completion Guaranty to be
retained or recouped out of such aggregate sums before recoupment by such Approved Completion
Guarantor, 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 the Collection Bank is also the Credit Agreement Administrative Agent, then, if an
“event of default” has occurred and is continuing under the Credit Agreement Documents, the Credit
Agreement Administrative Agent shall apply all funds maintained in the Collection Account 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, and second, to the payment of the obligations and other liabilities of the Company
in accordance with the terms of Section 2.12 of the Credit Agreement. If the Collection
Bank is not also the Credit Agreement Administrative Agent, then if the Credit Agreement
Administrative Agent (i) notifies the Collection Bank that an “event of default” has occurred and
is continuing under the Credit Agreement Documents and (ii) so instructs the Collection Bank in its
notification thereto (with a copy to the Company), the Collection Bank shall remit all funds
maintained in the Collection Account 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, and second, to the account of the
Credit Agreement Administrative Agent designated in accordance with Section 2.13(a) of the
Credit Agreement for application by the Credit Agreement Administrative Agent to the payment of the
obligations and other liabilities of the Company in accordance with the terms of Section
2.12 of the Credit Agreement.

          (d) If the Collection Bank is also the Credit Agreement Administrative Agent, then, if (i) all
revolving credit commitments under the Credit Agreement have been terminated and the obligations
and liabilities of the Company thereunder have been paid in full in cash and (ii) the Collateral
Agent (A) notifies the Credit Agreement Administrative Agent that an Event of Default has occurred
and is continuing and (B) so instructs the Credit Agreement Administrative Agent in its
notification thereto, the Credit Agreement Administrative Agent shall remit all funds maintained in
the Collection Account

9

 

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, and second, to the account designated by the Collateral Agent in
its notice to the Credit Agreement Administrative Agent for payment by the Collateral Agent to the
Holders of the Notes. If the Collection Bank is not also the Credit Agreement Administrative
Agent, then, if (i) the Credit Agreement Administrative Agent notifies the Collection Bank that all
revolving credit commitments under the Credit Agreement have been terminated and the obligations
and liabilities of the Company thereunder have been paid in full in cash and (ii) the Collateral
Agent (A) notifies the Collection Bank that an Event of Default has occurred and is continuing and
(B) so instructs the Collection Bank in its notification thereto, the Collection Bank shall remit
all funds maintained in the Collection Account 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, and second, to the
account designated by the Collateral Agent in its notice to the Collection Bank for payment by the
Collateral Agent to the Holders of the Notes.

10exv10w43

Exhibit 10.43

AMENDMENT AND CONSENT

TO

SECURITIES PURCHASE AGREEMENT

     AMENDMENT AND CONSENT TO SECURITIES PURCHASE AGREEMENT dated as of February 27, 2009 (this
“Amendment”), with respect to the Securities Purchase Agreement dated as of June 27, 2007
(as amended, restated, supplemented or otherwise modified from time to time, the “Securities
Purchase Agreement”) among THE FILM DEPARTMENT LLC, a Delaware limited liability company (the
“Company”), THE FILM DEPARTMENT HOLDINGS LLC, a Delaware limited liability company
(“Holdings”), the Purchasers party thereto and UNION BANK, N.A., formerly known as Union
Bank of California, N.A. (“UBOC”) as collateral agent for the Secured Parties defined
therein (in such capacity, and together with its successors and permitted assigns, the
“Collateral Agent”). Terms defined in the Securities Purchase Agreement and not otherwise
defined herein are used herein as therein defined.

R E C I T A L S

     The Company, Holdings and the Required Holders have agreed to amend the Securities Purchase
Agreement in accordance with, and pursuant to the terms and conditions set forth in, this
Amendment, and TFD LITERARY ACQUISITIONS, LLC, a Delaware limited liability company (“TFD
Acquisitions”), has agreed to consent and make various other agreements with respect to such
amendments.

     In consideration of the mutual agreements herein contained and other good and valuable
consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto
agree as follows:

     Section 1. Amendments to Section 1.1 of the Securities Purchase Agreement.

     (a) The definition of “Cash Collateral Account” is hereby deleted in its entirety and
replaced with the following:

     “’Cash Collateral Account’ means a deposit account or securities account in the name
of Union Bank, N.A. (Collateral Agent), The Film Department, LLC — Control Account, and under the
sole control (as defined in the applicable UCC) of the Collateral Agent and the Credit Agreement
Collateral Agent.”

     (b) The definition of “Collections” is hereby amended by deleting the parenthetical
therein and substituting the following in lieu thereof:

     “(including insurance proceeds, tax refunds and proceeds from a Sale or financing of any Tax
Incentive)”

     (c) The following definitions are added to Section 1.1 of the Securities Purchase
Agreement in the applicable alphabetical order:

     “’Adjusted Greenlight Tax Incentive Value’ of a Tax Incentive means, as of any date,
the Greenlight Tax Incentive Value thereof after giving effect to all adjustments thereto
reasonably made by the applicable Group Member on or prior to such date to properly reflect changes
in the applicable Film Budget (including changes in the anticipated qualifying expenditures or in
applicable laws or regulations

1

 

(or any change in the interpretation thereof)) and other appropriate or relevant factors (such as
new laws or regulations relating to Tax Incentives).”

     “’Credit Agreement Amendment’ means the Amendment and Consent to Credit Agreement
dated as of January 16, 2009, but without giving effect to any amendments or modifications
thereto.”

     “’Financed Transferable Tax Incentive’ means a transferable Tax Incentive that is
financed under the Credit Agreement or by a third party financier pursuant to arm’s length
financing arrangements containing customary terms and conditions.”

     “’Greenlight Protocol’ means the Greenlight Protocol attached as Schedule E to
the Amended and Restated Holdings LLC Agreement, as restated and adopted by Holdings’ Board on
January 28, 2009, and as the same may be further amended, restated, supplemented or otherwise
modified in accordance with the Amended and Restated Holdings LLC Agreement and Section
8.11(a) hereof (copies of which amendments, restatements, supplements or other modifications
shall promptly be delivered by Holdings to the Holders).”

     “’Greenlight Tax Incentive Valuation Procedures’ means the Greenlight Tax Incentive
Valuation Procedures attached as Schedule 1.1 to the Amendment and Consent to Securities
Purchase Agreement dated as of February 27, 2009.”

     “’Greenlight Tax Incentive Value’ means, with respect to any Tax Incentive, the
estimated value thereof reasonably determined by the Company in accordance with the Greenlight Tax
Incentive Valuation Procedures as part of preparing the applicable Film Budget in connection with
the Greenlight Protocol.”

     “’Purchase Agreement’ has the meaning assigned to such term in the Credit Agreement
Amendment.”

     “’Tax Credit Counterparty’ has the meaning assigned to such term in the Credit
Agreement Amendment.”

     “’Tax Incentive’ has the meaning assigned to such term in the Credit Agreement
Amendment.”

     “’Transferable Tax Incentive Receivable’ means, with respect to a transferable Tax
Incentive, the purchase price and all other amounts payable by a Tax Credit Counterparty to the
applicable Group Member under a Purchase Agreement with respect to such Tax Incentive, and all
supporting obligations that support the payment or performance of such amounts payable.”

     Section 2. Amendment to Section 8.1 of the Securities Purchase Agreement.

     (a) Subsection (f) of Section 8.1 of the Securities Purchase Agreement is hereby
amended and restated in its entirety as follows:

     “(f) Indebtedness of the Company owing under the Credit Agreement, including Guaranty
Obligations of the Guarantors in respect thereof, in an aggregate outstanding principal amount
not to exceed at any time (i) the sum of (x) $140,000,000, plus (y) an amount equal to the
Incremental Revolving Commitments under the Credit Agreement (but not to exceed an aggregate of
$85,000,000), plus (z) 10% of the sum of the preceding clauses (x) and (y) less (ii) the sum of
(x) the amount of any permanent commitment reductions thereunder (other than to the extent
constituting a refinancing with a

2

 

replacement first lien credit facility in accordance with the terms of the Intercreditor
Agreement) and (y) the aggregate principal amount of all Indebtedness incurred by any Group
Member in connection with the Sale or financing of any Tax Incentive with a third party financier
of such Tax Incentive.”

     (b) Subsection (g) of Section 8.1 of the Securities Purchase Agreement is hereby
amended by deleting the “.” at the end of Subsection (g) and replacing same with “; and”.

     (c) Subsection (h) is hereby added immediately following Subsection (g) of Section 8.1
of the Securities Purchase Agreement:

               “(h) Indebtedness of any Group Member incurred in connection with the financing of any Tax
Incentive or Transferable Tax Incentive Receivable with a third party financier solely to the
extent that the Credit Agreement Administrative Agent or the Required Lenders (as such term is
defined in the Credit Agreement) have elected not to advance a Loan (as such term is defined in the
Credit Agreement) against such Tax Incentive or Transferable Tax Incentive Receivable;
provided, that the aggregate principal amount of any such Indebtedness shall not exceed
100% of the face amount of any such Tax Incentive.”

     Section 3. Amendment to Section 8.2 of the Securities Purchase Agreement.

     (a) Subsection (o) of Section 8.2 of the Securities Purchase Agreement is hereby
amended by deleting the “.” at the end of Subsection (o) and replacing same with “; and”.

     (b) Subsection (p) is hereby added immediately following Subsection (o) of Section 8.2
of the Securities Purchase Agreement:

          “(p) Liens granted to any third-party financier of (i) a Tax Incentive or (ii) a Transferable
Tax Incentive Receivable (such a Lien a “Transferable Tax Incentive Receivable Lien”), in
each case pursuant to arm’s length financing agreements containing customary terms and conditions
with such third party financier; provided that: (A) the Credit Agreement Administrative
Agent or the Required Lenders have elected not to advance a Loan against such Tax Incentive or
Transferable Tax Incentive Receivable; (B) such Lien extends only to such Tax Incentive or
Transferable Tax Incentive Receivable, as applicable; and (C) unless Collateral Agent has
released its Liens in such Tax Incentive or Transferable Tax Incentive Receivable, as applicable,
to the extent permitted in this Agreement or the other Note Documents, such Liens are subject
to a subordination or intercreditor agreement acceptable to the Collateral Agent providing that
such Liens are senior to the Liens created under the Security Documents but only until such time as
any loans made by such third-party financier in connection therewith have been indefeasibly repaid
in full; provided, that any Transferable Tax Incentive Receivable Lien shall be
subordinated to the Liens created under the Security Documents until such time as the applicable
third party financier has advanced against such Transferable Tax Incentive Receivable and the
proceeds of such advance have been deposited into the Collection Account; and”

     (c) Subsection (q) is hereby added immediately following Subsection (p) of Section 8.2
of the Securities Purchase Agreement:

          “(q) Liens granted to any Tax Credit Counterparty with respect to a Financed Transferable Tax
Incentive, provided that: (i) such Liens are subordinated to the Liens created under the
Security Documents pursuant to a subordination or intercreditor agreement acceptable to the
Collateral Agent until such time as immediately available funds in an amount equal to (A) the
purchase price payable by such Tax Credit Counterparty under the Purchase Agreement with respect to
such Financed

3

 

Transferable Tax Incentive has been deposited into the Collection Account or (B) if such Financed
Transferable Tax Incentive is financed by a third party financier, that portion of the purchase
price not required to repay in full all Indebtedness of any Group Member incurred in connection
with such financing has been deposited into the Collection Account, and (ii) such Lien extends only
to such Tax Incentive.”

     Section 4. Amendment to Section 8.11 of the Securities Purchase Agreement. Clause (y) of
subsection (a) of Section 8.11 of the Securities Purchase Agreement prior to the proviso
set forth therein is hereby amended and restated in its entirety as follows:

               “(y) in the case of any such Related Document and the Constituent Documents, do not
materially adversely affect the rights and privileges of any Group Member and do not adversely
affect the interests of any Secured Party in connection with the Obligations, under the Note
Documents or in the Collateral;”

     Section 5. Addition to Article VIII of the Securities Purchase Agreement. A new Section
8.17 is hereby added to Article VIII:

     “Section 8.17 Greenlight Protocol. No Group Member shall (a)
greenlight any Film unless it has complied with the Greenlight Protocol and the Greenlight Tax
Incentive Valuation Procedures (and Holdings shall promptly notify Holders when such Film has been
greenlit and provide the Required Holders with a certificate of compliance and reasonably detailed
supporting back-up documentation and materials with respect to its determination of the Greenlight
Tax Incentive Value of Tax Incentives related to such Film ) or (b) with respect to any Film,
commence ‘pre-production’ or ‘production’ of such Film or commit to or otherwise incur any payment
or other financial obligations for activities customarily undertaken during the ‘pre-production
period’ (including construction of sets, securing stages and locations, renting equipment or
purchasing props, but expressly excluding agreements with the cast or the director of such
Film) or in connection with the ‘production’ of a Film unless such Film has been greenlit in
accordance with the Greenlight Protocol and, with respect to any Film with a Film Budget in excess
of $27,500,000, unless a Group Member has, prior thereto, entered into a valid, binding and
enforceable domestic distribution agreement or deal memo with respect to such Film (subject, as to
enforceability, to applicable bankruptcy, reorganization, moratorium and other laws affecting
creditors’ rights generally and to general principles of equity) containing terms that do not
contain any conditions to the distributor’s distribution of the Film thereunder other than the
Approved Distribution Agreement Conditions. As used in this Section 8.17, ‘production’
shall mean the commencement of principal photography of a Film and the ‘pre-production period’ of a
Film shall mean the period (i) commencing eight weeks prior to the commencement of production of
such Film and (ii) ending on the date production of such Film commences and ‘Approved
Distribution Agreement Conditions’ shall mean (i) chain of title approval, (ii) delivery of the
Film in accordance with customary required film specifications, (iii) provision of all customarily
required copyright recordation, lien and security documentation, (iv) receipt by distributor of
customary insurance documentation in connection with the subject Film, (v) issuance of a completion
guaranty in a form approved by the distributor and the Credit Agreement Administrative Agent, (vi)
receipt by distributor of an acceptable interparty agreement, (vii) approval by distributor of the
applicable Group Member’s financing arrangements for the subject Film, and (viii) absence of any
outstanding and uncured material default or breach by the applicable Group Member.”

     Section 6. Amendment to Section 10.10 of the Securities Purchase Agreement.
Section 10.10(b) of the Securities Purchase Agreement is hereby deleted in its
entirety and replaced with the following:

4

 

          “(b) any Lien held by the Collateral Agent for the benefit of the Secured Parties
against (i) any Collateral that is Sold by a Note Party in a Sale permitted by the Note Documents
(including pursuant to a valid waiver or consent), (ii) any property subject to a Lien permitted
hereunder in reliance upon Section 8.2(e) or (f) (Liens) and (iii)
all of the Collateral and all Note Parties, upon payment and satisfaction in full of the entire
outstanding principal amount of Notes and all other Obligations that the Collateral Agent has been
notified in writing are then due and payable and deposit of cash collateral with respect to all
contingent Obligations, in amounts and on terms and conditions and with parties satisfactory to the
Collateral Agent and each Indemnitee that is owed such Obligations.”

     Section 7. Tax Incentives.

     (a) Subordination. If (i) the Credit Agreement Administrative Agent elects, or the
Required Lenders elect, not to advance a Loan against any Tax Incentive and/or Transferable Tax
Incentive Receivable, and (ii) the applicable Group Member has elected to finance such Tax
Incentive or Transferable Tax Incentive Receivable with a third party financier, then (unless
Collateral Agent has agreed to release its Liens in such Tax Incentive (and/or the Transferable
Tax Incentive Receivable) pursuant to Section 7(b)(ii) below) promptly upon
the Collateral Agent’s receipt of a written request from such Group Member to do so and at such
Group Member’s sole cost and expense, the Collateral Agent will subordinate its Lien in such Tax
Incentive (and/or the Transferable Tax Incentive Receivable) to the third party financier’s Lien
therein until such time as any loans made by such third-party financier in connection with such Tax
Incentive (and/or the Transferable Tax Incentive Receivable) have been indefeasibly repaid in full.

     (b) Consent to Sale by Required Holders.

          (i) Each Required Holder hereby consents (subject to, as applicable, Section 8.2
of the Securities Purchase Agreement, this Section 7 and the applicable provisions
of the Borrowing Base (as such term is defined in the Credit Agreement) that apply to Tax
Incentives) to the Sale by any Group Member of any Financed Transferable Tax Incentive
to a Tax Credit Counterparty and the release of Collateral Agent’s Lien on such Financed
Transferable Tax Incentive (A) pursuant to a Purchase Agreement that is entered into in the
ordinary course of business and that provides for net sales proceeds to the selling Group Member of
at least 90% of the Adjusted Greenlight Tax Incentive Value of the applicable transferable Tax
Incentive and (B) so long as such net sales proceeds (or if such Financed Transferable Tax
Incentive is financed by a third party financier, that portion of such net sales proceeds not
required to repay in full all Indebtedness of any Group Member incurred in connection with such
financing) are deposited directly into the Collection Account by, as applicable, the Tax Credit
Counterparty or the third party financier of the Transferable Tax Incentive Receivable.

          (ii) If (A) the Credit Agreement Administrative Agent elects, or the Required
Lenders elect, not to advance a Loan against a Tax Incentive or, as applicable, a Transferable Tax
Incentive Receivable, (B) the applicable Group Member has elected to finance such Tax Incentive or,
as applicable, the Transferable Tax Incentive Receivable with a third party financier and such
financier requires the Collateral Agent to release its Lien in such Tax Incentive or Transferable
Tax Incentive Receivable, then notwithstanding anything to the contrary set forth herein or in the
Securities Purchase Agreement, each Required Holder hereby consents to the release of Collateral
Agent’s Lien on such Tax Incentive or Transferable Tax Incentive Receivable.

     (c)Each Group Member hereby covenants and agrees to comply with and observe the
Greenlight Tax Incentive Valuation Procedures.

5

 

     Section 8. Amendment to Intercreditor Agreement. The Company shall use good faith efforts to
deliver or cause to be delivered to Required Holders an amendment to the Intercreditor Agreement
executed by UBOC, in its capacity as First Lien Agent, in the form attached hereto as Exhibit
A or such other form as may be acceptable to Required Holders in their sole and absolute
discretion on or before April 1, 2009; provided, that in the event the Company is unable to
effect such delivery on or before April 1, 2009, the Company shall pay to the Holders (in lieu of a
continuing obligation to effect any such delivery after April 1, 2009) a fully earned and
nonrefundable fee of $177,272 in the aggregate in immediately available funds no later than April
3, 2009, and no Default or Event of Default shall be deemed to have occurred or be continuing as a
result of the Company’s inability to effect such delivery on or before April 1, 2009. Any failure
by the Company to pay to the Holders the foregoing fee (if the Company is required to pay such fee
as provided herein) shall constitute an immediate Event of Default.

     Section 9. Consent of Holdings and TFD Acquisitions. Each of Holdings and TFD Acquisitions
hereby acknowledges and consents to this Amendment, and affirms and acknowledges that the Guaranty
and Security Agreement and each other Note Document executed and delivered by it remains in full
force and effect and that it remains obligated thereunder without defense, offset or counterclaim
of any kind whatsoever, as if each such Note Document were executed and delivered to Collateral
Agent and the Purchasers (or their assigns) on the date hereof.

     Section 10. Representations and Warranties. To induce the Holders to enter into this
Amendment, the Company, Holdings and TFD Acquisitions represent and warrant to the Holders that:

     (a) Representations and Warranties in Note Documents. Each of the
representations and warranties of the Company, Holdings and TFD Acquisitions contained in
the Note Documents to which each is a party (i) that were qualified by materiality were true
and correct when made and those not so qualified were true and correct in all material
respects when made and (ii) after giving effect to this Amendment, those qualified by
materiality shall continue to be true and correct and those not so qualified shall continue
to be true and correct in all material respects on the date hereof (except to the extent
that such representations and warranties relate expressly to an earlier date).

     (b) Authority. The execution and delivery by each of the Company, Holdings and TFD
Acquisitions of this Amendment and each other document to be executed by such Person in
accordance with the terms hereof and the performance by the Company, Holdings and TFD
Acquisitions of their respective obligations under the Securities Purchase Agreement as
amended hereby (i) are within such Person’s power and authority, (ii) have been duly
authorized by all necessary proceedings, (iii) do not (A) contravene the Constituent
Documents of such Person, (B) violate any applicable Requirements of Law, (C) conflict with,
contravene, constitute a default or breach under, or result in or permit the termination or
acceleration of, any material Contractual Obligation of such Person or any of its
Subsidiaries (including other Related Documents or Note Documents) other than those that
would not, in the aggregate, have a Material Adverse Effect or (D) result in the imposition
of any Lien (other than a Permitted Lien) upon any property of any such Person or any of
such Person’s respective Subsidiaries and (iv) do not require any Permit of, or filing with,
any Governmental Authority or any consent of, or notice to, any such Person.

     (c) Enforceability. Each Note Document (including the Securities Purchase
Agreement, as amended hereby) constitutes a legal, valid and binding obligation of the
Company,

6

 

Holdings and TFD Acquisitions, as the case may be, enforceable against such Person
in accordance with its terms.

     (d) No Default. After giving effect to this Amendment, no Default or Event of
Default exists.

     Section 11. Conditions to Effectiveness. This Amendment shall become effective on the date
when the following conditions precedent have been satisfied (such date, the “Effective
Date”):

     (a) The Company, Holdings, TFD Acquisitions, the Required Holders and the Collateral
Agent shall have executed and delivered this Amendment.

     (b) The Required Holders shall have received a certified copy of an amendment to the
Credit Agreement providing consents and amendments substantially similar to those provided
herein duly executed by the Company, Holdings, TFD Acquisitions, UBOC, in its capacity as
Credit Agreement Collateral Agent and Credit Agreement Administrative Agent, and the
Required Lenders thereunder and all other conditions precedent to the effectiveness thereof
shall have been satisfied but for the concurrent effectiveness of this Amendment.

     (c) The representations and warranties set forth in Section 10 hereof shall be
true and correct on the date hereof and on the Effective Date.

     (d) No injunction, writ, restraining order, or other order of any nature prohibiting,
directly or indirectly, the consummation of the transactions contemplated herein shall have
been issued and remain in force by any Governmental Authority against the Company, Holdings,
TFD Acquisitions or any Holder.

     (e) The Company shall have paid all reasonable out-of-pocket costs and expenses of the
Holders, to the extent invoices therefor have been presented.

     Section 12. Ratification and Incorporation of Securities Purchase Agreement; No Novation. The
Company, Holdings and TFD Acquisitions expressly acknowledge and agree with each of the following:

     (a) except as expressly modified under this Amendment, (i) each of the Company,
Holdings and TFD Acquisitions hereby acknowledges, confirms, and ratifies all of the terms
and conditions set forth in, and all of its obligations under (including all Liens granted
pursuant to), the Securities Purchase Agreement and the other Note Documents to which it is
a party and (ii) all of the terms and conditions set forth in the Securities Purchase
Agreement and the other Note Documents are incorporated herein by this reference as if set
forth in full herein; and

     (b) except as expressly modified under this Amendment, the execution, delivery, and
effectiveness of this Amendment shall not (i) limit, impair, constitute a waiver of, or
otherwise affect any right, power, or remedy of any Secured Party under the Securities
Purchase Agreement or any other Note Document, (ii) constitute a waiver of any provision in
the Securities Purchase Agreement or in any of the other Note Documents, or (iii) alter,
modify, amend, or in any way affect any of the terms, conditions, obligations, covenants, or
agreements contained in the Securities Purchase Agreement, all of which are ratified and
affirmed in all respects and shall continue in full force and effect.

7

 

     Section 13. Reference to and Effect on Securities Purchase Agreement.

     (a) Upon the effectiveness of this Amendment, each reference in the Securities Purchase
Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import, and each
reference in the other Note Documents to the Securities Purchase Agreement, shall mean and
be a reference to the Securities Purchase Agreement as amended hereby.

     (b) This Amendment shall be a Note Document for all purposes.

     Section 14. Benefits of Amendment. The terms and provisions of this Amendment shall be
binding upon and inure to the benefit of the parties to the Securities Purchase Agreement and the
other parties hereto and their respective successors and assigns to the extent contemplated by the
Note Documents.

     Section 15. Interpretation. The Section headings used in this Amendment are for convenience
of reference only and shall not affect the construction hereof.

     Section 16. Execution in Counterparts. This Amendment may be executed in any number of
counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an
original and all of which counterparts, taken together, shall constitute but one and the same
Amendment. Delivery of an executed counterpart of a signature page hereto by facsimile or other
electronic transmission shall be equally effective as delivery of a manually executed counterpart
of this Amendment.

     Section 17. Severability. If any provision of this Amendment shall be held to be invalid,
illegal or unenforceable under applicable law in any jurisdiction, such provision shall be
ineffective only to the extent of such invalidity, illegality or unenforceability, which shall not
affect any other provisions hereof or the validity, legality and enforceability of such provision
in any other jurisdiction.

     Section 18. Governing Law. This Amendment and the rights and obligations of the parties
hereto shall be governed by, and construed and interpreted in accordance with, the law of the State
of New York.

     Section 19. Entire Agreement. This Amendment together with all other instruments, agreements,
and certificates executed by the parties in connection herewith or with reference thereto, embody
the entire understanding and agreement between the parties hereto and thereto with respect to the
subject matter hereof and thereof and supersede all prior agreements, understandings, and
inducements, whether express or implied, oral or written.

[signature pages follow]

8

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered
as of the date first set forth 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 HOLDINGS LLC, its sole Member

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

 

SIGNATURE PAGE TO AMENDMENT NO. 4 TO SECURITIES PURCHASE AGREEMENT

THE FILM DEPARTMENT LLC

 

	 	 	 	 	 
	 	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	 
	 

SIGNATURE PAGE TO AMENDMENT NO. 4 TO SECURITIES PURCHASE AGREEMENT

THE FILM DEPARTMENT LLC

 

	 	 	 	 	 
	 	UNION BANK, N.A.,

as Collateral Agent

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

 

SIGNATURE PAGE TO AMENDMENT NO. 4 TO SECURITIES PURCHASE AGREEMENT

THE FILM DEPARTMENT LLC

 

Schedule 1.1

GREENLIGHT TAX INCENTIVE VALUATION PROCEDURES

Prior to greenlighting any Film that qualifies for any Tax Incentive, the Company shall follow
the procedures set forth below for purposes of determining the estimated net value of such Tax
Incentive:

     1. the Company shall analyze the applicable regulatory regime’s qualification requirements
for such Tax Incentive;

     2. the Company shall estimate the anticipated qualifying expenditures in the applicable
jurisdiction;

     3. the Company shall evaluate prevailing market conditions for Tax Incentives issued by the
applicable Governmental Authority; and

     4. the Company shall also consult with one or more tax credit financiers or brokers and other
experts to assess the ability to monetize the Tax Incentive on the most beneficial terms and to
arrive at an appropriate value estimate for such Tax Incentive and the net value thereof and shall
verify the information provided by such financiers or brokers by consulting with other companies
who have had experience with such financiers and/or brokers in obtaining similar Tax Incentives and
the likelihood of achieving such value (Global Incentives is hereby acknowledged as one of the
consultants with whom the Company may engage for this purpose).

12

 

Exhibit A

FORM OF AMENDMENT TO INTERCREDITOR AGREEMENT

[See attached]

13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]