Document:

Exhibit 10.51

 

Execution Version

 

AMENDMENT NO. 1 TO GUARANTEE AGREEMENT

 

This Amendment No. 1 to Guarantee Agreement, dated as of June 5, 2013 (this “Agreement”) is made by Robert F. X. Sillerman (in his capacity as an individual and not as an officer, director or member (or other similar analogous role) of any entity), and his successors and permitted assigns (the “Affirming Party”) and acknowledged by Barclays Bank PLC, as collateral agent (the “Collateral Agent”) on behalf of the Secured Parties. Capitalized terms used and not defined herein shall have the meanings ascribed to them in the Amendment (as defined below).

 

W I T N E S S E T H:

 

WHEREAS, SFX INTERMEDIATE HOLDCO II LLC, a Delaware limited liability company, the other Persons listed on the signature pages thereof, the Lenders party thereto and Barclays Bank PLC, as administrative agent and collateral agent have entered into that certain Amendment No. 2 to Credit Agreement, dated as of the date hereof (the “Amendment”); and

 

WHEREAS, in order to induce the Lenders to make the additional Term Loans under the terms provided in the Amendment, the Affirming Party (as of the date hereof, a shareholder, Executive Chairman of the Board of Directors and the Chief Executive Officer of the sole member of Holdings) committed to execute and deliver this Agreement, whereby the Affirming Party affirms his obligations and guaranties under that certain Guarantee Agreement, dated as of March 15, 2013 (the “Guarantee”), between the Affirming Party and the Collateral Agent.

 

NOW, THEREFORE, in consideration of the above premises, the Affirming Party agrees as follows:

 

Section 1.              Acknowledgment of Increase. In accordance with clause (iii)(y) of Section 3 of the Guarantee, the Affirming Party acknowledges that, as of the Amendment No. 2 Effective Date, the principal amount and interest rate (including, without limitation, any Default Interest) and Obligations pursuant to Section 9.03 of the Credit Agreement shall be defined and calculated based on the definitions in and terms of the Credit Agreement and other Loan Documents as of the Amendment No. 2 Effective Date and as amended by the Amendment.

 

Section 2.              Amendment to the Guarantee. On the Amendment No. 2 Effective Date, the Guarantee is hereby amended as follows:

 

(a)           Section 2(b) of the Guarantee is hereby amended and restated in its entirety to read as follows:

 

“(b)         shall furnish to the Collateral Agent as soon as available, and in any event within 15 days of the end of each calendar month, a personal financial statement on a form acceptable to the Collateral Agent;”.

 

 

(b)           Section 2(f) of the Guarantee is hereby amended and restated in its entirety to read as follows:

 

(f)            shall, together with each delivery of any personal financial statement delivered pursuant to clause (b) of this Section, be deemed to have represented and warranted (i) that such personal financial statement fairly presents in all material respects the financial position of the Individual Guarantor as of the dates indicated and (ii) that the Individual Guarantor is in compliance with each of clauses (a) through (e) of this Section as of the date of such delivery.

 

(c)           Section 3 of the Guarantee is hereby amended by replacing the phrase “as of the date hereof” in clause (ii)(y) thereof with “as of the Amendment No. 2 Effective Date (and as amended by Amendment No. 2).”

 

Section 3.              Confirmation of Guarantee.

 

(a)           The Affirming Party ratifies and confirms all of the terms and conditions of the Guarantee and all documents, instruments and agreements related thereto, which remain in full force and effect and which shall remain in full force and effect on a continuous basis following the Amendment No. 2 Effective Date. The Affirming Party acknowledges that his obligations and liabilities under the Guarantee continue in full force and effect on a continuous basis, unpaid and undischarged, except as expressly provided in the Guarantee. The Guarantee, together with this Agreement, shall be read and construed as a single agreement. This Agreement shall constitute a Loan Document.

 

(b)           As of the Amendment No. 2 Effective Date, the Affirming Party affirms the guarantees made in favor of each Secured Party under the Guarantee, which guarantees shall continue in full force and effect during the term of the Credit Agreement and any amendments, amendments and restatements, supplements or other modifications thereof on and subject to the terms and conditions set forth in the Guarantee.

 

(c)           As of the Amendment No. 2 Effective Date, the Affirming Party affirms the waivers made under the Guarantee, which waivers shall continue in full force and effect during the term of the Credit Agreement and any amendments, amendments and restatements, supplements or other modifications thereof on and subject to the terms and conditions set forth in the Guarantee.

 

Section 4.              Representations and Warranties. The execution and delivery by the Affirming Party of this Agreement and the performance of his obligations hereunder constitutes a legal, valid and binding obligation of the Affirming Party, enforceable against him in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, fraudulent conveyances, reorganization or similar laws relating to or affecting the enforcement of creditors’ rights generally and general equitable principles (whether considered in a proceeding in equity or at law).

 

Section 5.              Limitation of this Agreement. The amendments set forth herein are effective solely for the purposes set forth herein and shall be limited precisely as written. Except as expressly provided herein, this Agreement shall not be deemed to (i) be a consent to any amendment, waiver or modification of any other term or condition of the Guarantee or any other Loan Document, or (ii) operate as a waiver or otherwise prejudice any right, power or remedy that the Collateral Agent or Secured Parties may now have or may have in the future under or in connection with the Guarantee or any other Loan Document, except as specifically set forth herein. Upon the effectiveness of this Agreement, each reference in the Guarantee to “this Agreement”, “herein”, “hereof” and words of like import and each reference in the Credit Agreement and the Loan Documents to the Guarantee shall mean the

 

 

Guarantee as amended hereby. This Agreement shall be construed in connection with and as part of the Guarantee.

 

Section 6.              Miscellaneous.

 

(a)           Successors and Assigns. This Agreement is for the benefit of the Collateral Agent and the Secured Parties and their respective successors and permitted assigns; provided, that the Affirming Party shall not have any right to assign his rights or obligations hereunder without the consent of the Collateral Agent, and any such assignment in violation of this Section shall be null and void; provided, further, that in the event of an assignment of any amounts payable under the Credit Agreement or the other Loan Documents in accordance with the respective terms thereof, the rights hereunder, to the extent applicable to the indebtedness so assigned, may be transferred with such indebtedness. Subsequent to any such assignment, the Agreement shall remain binding upon the Affirming Party. This Agreement shall be binding upon the Affirming Party’s successors, assigns, heirs, administrators, executors and legal representatives. Notwithstanding anything in this Agreement or any other Loan Document to the contrary, in the event of the death or disability of the Affirming Party, this Agreement shall remain binding on the Affirming Party’s estate or legal representatives, as the case may be.

 

(b)           Governing Law. This Agreement and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement and the transactions contemplated hereby and thereby shall be governed by, and construed in accordance with, the Law of the State of New York. This Agreement shall be subject to the provisions regarding Jurisdiction, Waiver of Venue, Services of Process and Waiver of Jury Trial set forth in Sections 16 and 17 of the Guarantee and such provisions are incorporated herein by reference, mutatis mutandis.

 

(c)           Counterparts. This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts (including by telecopy or other electronic means), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

 

(d)           Headings. The Section headings used in this Agreement are for convenience of reference only, are not part of this Agreement and shall not affect the construction hereof or be taken into consideration in interpreting this Agreement.

 

(e)           Independent Obligations. The obligations of the Affirming Party hereunder are independent of and separate from the Secured Obligations. If any Secured Obligation is not paid when due, or upon any Event of Default, the Collateral Agent may, at its sole election, proceed directly and at once, without notice, against the Affirming Party and any Collateral to collect and recover the full amount of any Secured Obligation then due, without first proceeding against any other Guarantor, any Loan Party or any other Collateral and without first joining any other Guarantor or any Loan Party in any proceeding.

 

[Signature Pages Follow]

 

 

IN WITNESS WHEREOF, the undersigned has executed this Agreement as of the date set forth above.

 

 

	
 
    	
AFFIRMING   PARTY
    
	
 
    	
 
    
	
 
    	
ROBERT   F. X. SILLERMAN
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert F. X. Sillerman
    
	
 
    	
 
    
	
 
    	
Address   of principal residence:
    
	
 
    	
 
    
	
 
    	
157   East 70th Street
   New York, NY 10021
    

 

[Signature Page to Amendment No. 1 to Guarantee Agreement]

 

 

Acknowledged and Agreed to:

 

	
BARCLAYS   BANK PLC,
    	
 
    
	
as   Collateral Agent
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Diane Rolfe
    	
 
    
	
Name:
    	
Diane Rolfe
    	
 
    
	
Title:
    	
Director
    	
 
    

 

[Signature Page to Amendment No. 1 to Guarantee Agreement]Exhibit 10.52

 

June 23, 2013

 

Made Event, LLC

27-28 Thompson Ave. #700

Long Island City, New York 11101

Attn: Mike Bindra and Laura De Palma

 

EZ Festivals, LLC

27-28 Thompson Ave. #700

Long Island City, New York 11101

Attn: Mike Bindra and Laura De Palma

 

Re:  Advance Fee

 

Ladies and Gentlemen:

 

SFX Entertainment, Inc. (“Parent”) hereby agrees upon execution of this letter agreement to advance a non-refundable amount equal to Two Million Five Hundred Thousand Dollars ($2,500,000) (the “Advance Fee”), consisting of payments of One Million Two Hundred Fifty Thousand Dollars ($1,250,000) to each of Mike Bindra (“Bindra”) and Laura De Palma (“De Palma”, and collectively with Bindra, “Sellers”), pursuant to the terms and conditions hereof, in connection with Parent’s proposed acquisition of each of Made Event, LLC (“Made”) and EZ Festivals, LLC (“EZ”, and collectively with Made, the “Companies”), which Companies in combination own 100% of the Electric Zoo Festivals and related and unrelated assets and businesses as disclosed in the preparation of the audit.

 

In the event the closing of the acquisition by Parent or its affiliate of seventy percent (70%) of the total issued and outstanding membership interests in each of Made and EZ (the “First Closing”) occurs prior to August 21, 2013 (the “Target First Closing Date”), the purchase price for such membership interests shall be reduced by the amount of the Advance Fee.  Unless the First Closing has not occurred by August 21, 2013 as a result of the failure of the Sellers or the Companies to satisfy their obligations, Parent forfeits all right, title and interest in and to the Advance Fee and neither party shall have any further obligations to or rights against the other party hereunder.

 

In consideration of the payment of the Advance Fee, the Sellers, the Companies and the Parent hereby agree to be bound by the provisions of each of the term sheets (the “Term Sheets”) attached hereto as Exhibits A and B.  The provisions of the Term Sheets shall be binding on each of the parties hereto and thereto, except as such provisions have been modified by this letter agreement.  The parties acknowledge that the Parent shall be entitled to prepare and file a registration statement on Form S-1 with the relevant information regarding the Companies and that such statement may be made available to third parties in connection with investor discussions or an offering, provided that (i) a copy of each Registration Statement or amendment thereto is provided to Sellers at least twenty-four (24) hours prior to the filing of same with the SEC and the disclosure therein with respect to the Companies is accurate; and (ii) the Advance Fee shall have been delivered to the Sellers on or before the close of business on June 24, 2013.

 

 

From and after the First Closing, the Sellers and the Companies, jointly and severally, shall indemnify and hold harmless Parent, its affiliates, and its respective officers, directors, employees and agents (the “Buyer Indemnitees”), from and against any and all direct liabilities, obligations, deficiencies, demands, claims, suits, actions, causes of action, assessments, fines, forfeitures, civil penalties, losses, costs and expenses (including reasonable attorneys’ fees) (hereinafter individually a “Loss” and collectively “Losses”) suffered or incurred by the Buyer Indemnitees resulting from or arising out of the litigation entitled Henri Pferdmenges and NRW, Inc. vs. Mike Bindra, Laura De Palma, Made Event, LLC, Sala Corporation and EZ Festivals, LLC (the “Pferdmenges Litigation”). The Sellers and the Companies agree that Bindra and De Palma shall have the sole right to control the Pferdmenges Litigation, except as otherwise set forth below.  Notwithstanding anything to the contrary contained herein, each of the Sellers hereby agrees that at the First Closing, the Sellers shall deposit one half of the Newco Membership Interests owned collectively by the Sellers (the “Secured Interests”), consisting of fifteen percent (15%) of the outstanding Membership Interests of Newco, in escrow to secure the payment of any Losses incurred in connection with the Pferdmenges Litigation.  To the extent there is any settlement offer in such matter that Sellers intend to accept which exceeds the value of such Secured Interests or is not to be satisfied solely through the payment of a monetary award up to such amount, Sellers shall be required to obtain the written consent of Parent, which consent shall not be unreasonably withheld.  For the avoidance of doubt, should any such settlement result in any non-monetary award, including, but not limited to, affecting the value or ownership of the intellectual property of either of the Sellers or either of the Companies, Parent shall have the right to refuse to consent to the settlement and such refusal shall not be deemed unreasonable.

 

This letter agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns and shall be governed by and construed in accordance with the internal laws of the State of New York without giving effect to the conflict of laws principles thereof.

 

This letter agreement may be executed by the parties hereto in one or more counterparts, each of which shall be deemed an original and all of which when taken together shall constitute one and the same agreement.  Any signature delivered by a party by facsimile or electronic transmission shall be deemed to be an original signature hereto.

 

Please confirm your agreement with the foregoing by countersigning this letter below and returning a copy of the countersigned letter to Parent.

 

[Signature pages follow]

 

2

 

	
 
    	
 
    	
Sincerely,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
SFX   ENTERTAINMENT, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Richard Rosenstein
    
	
 
    	
 
    	
 
    	
Name:   Richard Rosenstein
    
	
 
    	
 
    	
 
    	
Title:   CFO
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Acknowledged   and Agreed:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
MADE   EVENT, LLC
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Mike Bindra
    	
 
    	
 
    
	
 
    	
Name: Mike Bindra
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
EZ   FESTIVALS, LLC
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Laura De Palma
    	
 
    	
 
    
	
 
    	
Name: Laura De Palma
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    

 

[Signature Page to Side Letter]

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