Document:

Exhibit 10.21

 

EXECUTION VERSION

 

BINDING TERM SHEET

 

Dated as of October 26, 2012 (the “Effective Date”)

 

Proprietary and Confidential

 

Information provided in this term sheet (this “Term Sheet”)  is considered “Confidential Information” as defined in the Mutual Confidentiality and Non-Circumvention Agreement, dated as of October [***],2012 (the “Confidentiality Agreement”).  By receiving this Term Sheet and any other information related to the Transactions, each of SFX Holding Corporation (“SFX”)  and ID&T Holding B.V. (“ID&T”  and, collectively with SFX, the “Parties”) agrees keep this information confidential and not disclose the information to any third party, other than such Party’s representatives that will help such Party evaluate the Transactions, without the written consent of the other Party, and each Party agrees that such Party will safeguard the information with the same degree of care that such Party safeguards such Party’s own confidential information, but in any event with no less than reasonable care. Each Party will not use the information in any manner (other than for purposes of evaluating whether to enter into the Transactions) without the prior written consent of the other Party; except that each Party is permitted to disclose or use information to the extent permitted by the Confidentiality Agreement, including, without limitation, disclosing information as might be required by applicable law.

 

	
THE TRANSACTIONS:  
    	
The Parties will enter into a joint venture or partnership (the “JV”)  whereby SFX shall be entitled to   an equity interest of 51% (with ID&T retaining 49%) of the ID&T   business in Canada, Mexico, and the United States (collectively, “North   America”)  as   set out in more detail in this Term Sheet.

 

The Parties will enter into an acquisition agreement (the “Acquisition   Agreement”)  and   a joint venture agreement (the “JVA”).   Pursuant to the Acquisition Agreement, among other things, the following will   occur:

 

·       At the   Closing, ID&T will enter into an exclusive license agreement (the “License   Agreement”)  with   the JV, pursuant to which, among other things, ID&T will grant the   JV an exclusive (even as to ID&T) license (or, with respect to   Subsidiary-Held Brands and those Brands that ID&T licenses from another   person, a sublicense) to use in North America all brands that ID&T   (directly or through an ID&T subsidiary) has (or in the future obtains)   the rights to use in North America, including, without limitation, those   brands that are listed in Exhibit A and   including “Sensation,” “Mysteryland,” “Qlimax,” “DefQonl,” and the Q-Dance   brands, and whether in existence now or hereafter developed or acquired, and   the trademarks, trade names, and similar intellectual property relating to   the brands (collectively, the “Brands”),  on the conditions as more fully described below. To   the extent that a Brand is owned or licensed by a majority
    

 

 

	
 
    	
        owned subsidiary of ID&T (any such   Brand, a “Subsidiary-Held Brand”), ID&T will cause   such subsidiary to license such Subsidiary-Held Brand (or such subsidiary’s   rights therein, as applicable) to ID&T so that it will be subject to the   License Agreement. For avoidance of doubt: (I) with respect to “Dirty   Dutch”, ID&T has shared ownership rights and will license to the JV   those rights it has subject to it obligations to the co-owner of that Brand;   and (II) in the event ID&T has a non-controlling interest in any   Brand, the JV shall be entitled to the economic benefit received by ID&T   with respect to any interest in any Event conducted in North America with   respect to that Brand.

 

·      At the Closing, SFX will   acquire a 51% equity interest in the JV from ID&T in exchange for   (1) $12.5 million, which SFX shall pay to ID&T on the Effective   Date, and (2) as determined by ID&T at the Closing (or, if earlier,   the date of a Qualified IPO), (A) the issuance by SFX of 2,000,000   shares at the Closing (with an assumed acquisition value of $5.00 per share)   of SFX common stock, as adjusted for any stock splits, corporate   reorganizations, or similar events after the Effective Date, OR  (B) the right to receive   shares of SFX common stock worth $10,000,000, valued at the Qualified IPO   valuation (which might be more or less than 2,000,000 shares of SFX common   stock) immediately prior to a Qualified IPO by SFX (any shares of SFX common   stock issued pursuant to this clause (2), the “SFX Shares”).  The SFX Shares shall have no less   favorable preferences than the SFX common stock held (directly or indirectly)   by Robert F.X. Sillerman (“Sillerman”).

 

·      In   addition, at the Closing, SFX will pay an advance of $7,500,000 to ID&T   (the “ID&T Advance”).  The  ID&T Advance will be   non-recourse, except as to the distributions from the JV in respect of   ID&T’s interest.

 

·      A “Qualified IPO”  shall mean the   sale of shares pursuant to a registration statement declared effective by the   SEC under circumstances in which the SFX common stock is accepted for listing   on the NASDAQ Global Market or the New York Stock Exchange.

 

The Parties shall seek to structure the Transactions to optimize tax   treatment to the Parties. The Parties expect to have entered into the   Definitive Documents on or prior to, and to have consummated the transactions   contemplated by the Acquisition Agreement (collectively, the “Transactions”)  on or about, January 1,   2013.
    

 

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“Closing”  means the date that is the   earlier of: (1) if the Parties have entered into the Definitive   Documents on or prior to January 1,  2013, then the date on which the   Parties have consummated the Transactions; and (2) January 1, 2013.   If the Closing occurs but the Definitive Documents have not been entered   into, then (a) the Parties shall operate in good faith under the terms   set forth in this Term Sheet as if the Definitive Documents had been entered   into on January 1,  2013 and (b) the Parties   shall continue to negotiate and use their respective reasonable efforts to   enter into the Definitive Documents as promptly as practicable after the   Closing. The fact that the Closing has not occurred pursuant to the   Definitive Documents by January 1, 2013 will not cause the termination   of the JV, the License arrangements described herein, or the Parties’   respective obligations under this Term Sheet.
    
	
 
    	
 
    	
 
    
	
CERTAIN ID&T EVENTS IN NORTH AMERICA
    	
 
    	
After the Effective Date and prior to the Closing, and excluding in   all respects the “Sensation” Brand shows at the Barclays Center in   October 2012, ID&T shall not directly or indirectly promote,   market, or organize, or directly or indirectly enter into any contract with   respect to, any festivals, concerts, or other events (any festival, event, or   concert, an “Event”) that are to be performed   in North America without the prior written consent of SFX (which SFX shall   not unreasonably withhold, delay, or condition), and, if SFX so consents,   then such Event will thereby be deemed to be subject to the License Agreement   (or, if there is no License Agreement, the License arrangements described   herein).
    
	
 
    	
 
    	
 
    
	
WARRANT GRANTS
    	
 
    	
At the Closing and as additional part of the purchase price under the   Acquisition Agreement, SFX will grant ID&T 500,000 warrants (the “ID&T   Warrants”)  to   purchase (on a one-for-one basis) shares of SFX common stock (such shares, as   might be issued upon the exercise of the ID&T Warrants, “ID&T   Warrant Shares”),  in   each case with a strike price of $2.50 per share of SFX common stock, as   adjusted for any stock splits, corporate reorganizations, or similar events.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
For a period of five years beginning with fiscal year 2013, if the   JV’s governing board (the “Board”) determines, based on   audited financial statements, that, during the prior fiscal year of the JV,   the JV has an EBITDA of $7,000,000 or more, then, promptly after such   determination, SFX will grant to ID&T 100,000 warrants (the “EBITDA   Warrants”  and,   collectively with the ID&T Warrants, the “Transaction Warrants”) to   purchase (on a one-for-one basis, but as adjusted for any stock splits,   corporate reorganizations, or similar events) shares of SFX common stock   (such shares, together with the ID&T Warrant Shares “Transaction   Warrant Shares”)  in   each case with a strike price for the EBITDA Warrants equal to the
    

 

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fair value per share of SFX common stock, as determined by SFX’s   board of directors, but, after a Qualified IPO, based on the 30-day weighted   average closing price of the SFX common stock prior to the determination.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
ID&T will have the right to re-audit the annual accounts and   related financial statements on which the Board determined EBITDA is based,   at ID&T’s own expense. If this re-audit results in an EBITDA being higher   than $7,000,000 (while the initial EBITDA was below this amount), then the   costs of the re-audit will be borne by SFX.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Each of the Transaction Warrants will be fully vested on the date of   grant.
    
	
 
    	
 
    	
 
    
	
LICENSE AGREEMENT
    	
 
    	
Exclusive License of Brands. Except with respect to   ID&T’s rights in respect of a Brand under North America-only Contracts   and Extra Territory Contracts (which are separately addressed   below), ID&T will grant the JV an exclusive (even as to ID&T)   license (or, with respect to Subsidiary-Held Brands, a sublicense) to use in   North America all Brands that ID&T (directly or through an ID&T   subsidiary) has (or in the future obtains) the rights to use in North   America. With respect to any Subsidiary-Held Brand, ID&T will cause   the applicable subsidiary to license such Subsidiary-Held Brand (or such   subsidiary’s rights therein, as applicable) to ID&T so that it will be   subject to the License Agreement.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
North America-only Contracts and Extra Territory Contracts.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
·      Certain   Definitions.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
· “North America-only Contract”  means any contract or   arrangement between ID&T and another person regarding the use of a Brand   in North America only.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
· “Extra   Territory Contract”  means   any contract or arrangement between ID&T and another person regarding the   use of a Brand in North America and in one or more jurisdictions other than   North America.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
·      ID&T as   Brand Licensor.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
· North America-only   Contracts. For those North America-only Contracts pursuant   to which ID&T has licensed another person the right to use a   Brand, ID&T will assign such North America-only Contract to the JV; except   that, if ID&T is contractually prohibited from assigning such 
    

 

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North America-only Contract to the JV, then   ID&T will contribute or pay to the JV ID&T’s net income (taking into   account tax considerations) earned under such North America-only Contract.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
· Extra Territory Contracts. For those   Extra Territory Contracts pursuant to which ID&T has licensed another   person the right to use a Brand, ID&T will contribute or pay to the   JV ID&T’s net income (taking into account tax considerations) earned   under such Extra Territory Contract with respect to Events in North America.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
· No Amendment or Waiver of   Contracts. ID&T will not amend or waive any provision   of any North America-only Contract or any Extra Territory Contract to grant   the counterparty thereto greater rights than such counterparty currently   possesses.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
· No Renewal of North   America-only Contracts. ID&T will not renew any North   America-only Contract pursuant to which ID&T has licensed to another   person the right to use a Brand.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
· Schedule   of North America-only Contracts and Extra Territory Contracts. Promptly   after the Effective Date, ID&T shall provide to SFX a schedule   setting forth each person to which ID&T has granted rights to one or more   Brands in North America and the terms of each North America-only Contracts   and, to the extent related to North American, the terms of each Extra   Territory Contracts pursuant to which such rights have been granted.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
·      ID&T as   Brand Licensee.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
· North   America-only Contracts. For those North America-only Contracts pursuant   to which another person has licensed to ID&T the right to use a   Brand, ID&T will assign such North America-only Contract to the JV; except   that, if ID&T is contractually prohibited from assigning such North   America-only Contract to the JV, then ID&T will arrange with the JV for   the JV to advance funds to ID&T to cover ID&T’s obligations under   such North America-only Contract and ID&T will contribute or pay to the   JV ID&T’s net income (taking into account tax considerations) earned   under such North America-only Contract.
    

 

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· Extra   Territory Contracts. For those Extra Territory Contracts pursuant to   which another person has licensed to ID&T the right to use a   Brand, ID&T will arrange with the JV  for the JV to   advance funds to ID&T to cover ID&T’s obligations under such Extra   Territory Contract and ID&T will contribute or pay to the JV ID&T’s   net income (taking into account tax considerations) earned under such Extra   Territory Contract with respect to Events in North America.

 

Domain Names. ID&T shall license to the JV free of   charge any new domain name registrations that use any Brand the ID&T has   or acquires (other than the Excluded Domain Names).

 

Term of License Agreement. The License Agreement   will remain in effect for so long as the JV remains in existence (regardless   of the identity of the members of JV), except for (i) ID&T’s rights   to terminate the License Agreement if (A) SFX materially breaches any of   SFX’s obligations under the JV or License Agreement or (B) the JV or SFX   commences a voluntary bankruptcy case or has an involuntary bankruptcy case   commenced against it (which involuntary case the JV  or SFX, as   the case may be, has not been removed prior to the date that is 60 days after   the commencement of such case) and (ii) ID&T’s right to partially   terminate the License Agreement with respect to any Brand for which the JV   has failed to make a payment under the License Agreement, subject (with   respect to both of the immediately foregoing clauses (i) and (ii)) to   reasonable notice and cure periods.

 

Simulcasts and Rebroadcasts. The JV will retain the   right to simulcast or rebroadcast (whether via cable,   satellite, Internet, or other method of simulcast or rebroadcast), and   to retain all revenues from, any Events held in North America using any Brand   (and the License Agreement will provide that the JV will be entitled (to the   extent not contractually prohibited) to simulcast or rebroadcast any such   Event outside of North America), but the JV will comply with any restrictions   on simulcasting or rebroadcasting any such Event that are contained in   contracts with artists performing at such Events. The JV will not have the   right to recover revenue from the rebroadcast of any Events held outside of   North America. The Parties will use their respective reasonable efforts to   obtain any approvals necessary (from any such artists or otherwise) to permit   such simulcasting or rebroadcasting.

 

Quality Control. ID&T will set and maintain reasonable   and appropriate standards on use of the Brand and oversee use of the Brands   to maintain Brand value and the JV shall and SFX shall (and SFX shall cause   SFX’s subsidiaries to) adhere to such standards.
    

 

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These standards shall, among other things, include the requirement   that the JV’s Chief Creative Officer has approved the use of an existing or   new Brand for one or a series of Events.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
License Fees.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
·      First   Five Years of Term. For the first five years of the term of the License   Agreement:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
· the JV will   pay a license fee of $150,000 per day for each Event for the “Sensation”   Brand license (i.e., $300,000 for a two-day Event);
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
· the JV will   pay a license fee of $150,000 per day for each Event for the “Qlimax” Brand   license;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
· the JV will   pay a license fee of $300,000 per Event (which might be a multiple-day Event)   for the “DefQonl” Brand license;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
· the JV will   pay a license fee of $300,000 per Event (which might be a multiple-day Event)   for the “Mysteryland” Brand license; and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
·  with respect to Brands other   than the Brands noted above, the JV will pay a reasonable per-use license   fee, as to be set forth in the License Agreement (and, with respect to Brands   not in existence as of the Effective Date, the Parties will negotiate in good   faith to agree upon a reasonable per-use license fee on a basis that is   consistent with the per-use license fee for Brands in existence on the   Effective Date), it being understood that as long as there is no agreement on   the license fee for a Brand, neither the JV nor ID&T will be entitled to   the use thereof in North America.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
·      After   First Five Years of Term. After the first five years of the term of the   License Agreement, the JV will pay a license fee for each Brand as follows:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
· For each   Brand that was licensed at Closing, the revised license fee will be the   license fee with respect to such Brand as of the Closing multiplied by a   percentage that is based upon the cumulative increase, if any, in the   Consumer Price Index since Closing (the “Step-up”).  After the Step-up, the license   fee will be indexed on each anniversary of the date of Closing on the basis   of the increase, if any, in the Consumer Price Index compared to
    

 

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the prior year, as to be set forth in more   detail in the License Agreement.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
· For all   other Brands, the license fee will be indexed on each anniversary of the date   of Closing on the basis of the increase, if any, in the Consumer Price Index   compared to the prior year, as to be set forth in more detail in the License   Agreement.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Ownership of IP. Intellectual property originated by the   TV will be an asset of ID&T and will be licensed without additional cost   to the JV pursuant to the License Agreement. Any intellectual property that   the JV acquires will be an asset of the JV. Neither SFX nor the JV will   register any of the Brands anywhere in the world. The database of persons who   purchase tickets for an Event relating to a Brand that is to any extent   promoted, organized, or marketed by the JV will be an asset of the JV. Any   use of an asset of the JV by either Party must be on terms agreed to by the   Board.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
No Right to Sublicense. The JV shall not   sublicense any of its rights under the License Agreement; except that, the JV   will be permitted to sublicense any of its rights under the License Agreement   to subsidiaries of the JV.
    
	
 
    	
 
    	
 
    
	
BOARD OF THE JV
    	
 
    	
The Board will at all times consist of four directors (each, a“Director”).  ID&T will be entitled to   appoint two Directors (“ID&T Directors”)  and SFX will be entitled to   appoint two Directors (“SFX Directors”),  each appointment and any   appointment of a replacement Director being subject to the other Party’s   reasonable consent. Directors can be removed only by the Party appointing   such Director.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
No person will be permitted to take an affirmative action on behalf   of the JV unless the Board has authorized (either generally or specifically)   such action; provided that the Board shall be deemed to have granted each of   the Co-CEOs the authorizations described below.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Board must authorize the JV to promote at least six Events   annually, four of which must use the “Sensation” Brand, one of which must use   the “Mysteryland” Brand and one of which must use the “Defqonl” Brand, it   being understood that the SFX-designated Board members will be deemed to have   satisfied this obligation with respect to any Event that such members vote to   authorize.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Among other things, the Board will meet to determine the JV’s
    

 

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annual budget and strategic and operating plan.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
If there is a tie in the voting of the Board with respect to any   matter, the matter shall be directed to the senior executives of the JV   Members, who shall seek to unanimously resolve the matter and, if such senior   executives are unable to resolve the matter, then either party is permitted   to refer such matter to Binding Arbitration to be resolved.
    
	
 
    	
 
    	
 
    
	
MANAGEMENT AND OPERATION OF THE JV
    	
 
    	
The JV will be managed on a day-to-day basis by its officers, which   may be the same persons as the Directors.
    
	
 
    	
 
    	
One Co-CEO and the CFO of the JV will be appointed by SFX. Shelley   Finkel (“Finkel”)  will   serve initially as the JV’s Co-CEO appointed by SFX. If Finkel resigns from,   is removed from, or otherwise no longer serves in his position as a Co-CEO,   then SFX will be entitled to appoint a replacement Co-CEO, but only if such   appointee is reasonably acceptable to ID&T. It is agreed that ID&T   may withhold such approval if the replacement Co-CEO is a competitor of   ID&T, ID&T has had prior dealings with such person that were   unsatisfactory to ID&T or if ID&T perceives that such person may have   a conflict of interest, including due to such person’s work for another   subsidiary of SFX. The Co-CEO appointed by SFX will have primary   responsibility and oversight of the non-Event, non-Promotion aspects of the   JV’s operations, including financial planning, non-Event budgeting and   oversight.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
One Co-CEO and the Chief Creative Officer of the JV will be appointed   by ID&T.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Co-CEO appointed by ID&T and the Chief Creative Officer   (which may be the same person) will maintain creative control over Events   that the JV promotes or produces (including but not limited to a final say on   the brands, venues and cities) spending on Events and the use of the Brands.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
It is understood that Ritty van Straalen (“van Straalen”)  and Jeroen Jansen (“Jansen”)  will relocate to the United   States for a period of not less than two years from the Closing Date, and   that van Straalen will be the initial Co-CEO appointed by ID&T.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
All Board actions require unanimous approval of all Directors then   appointed. Notwithstanding any actions that the JV’s officers or other representation   might be entitled to take on the JV’s behalf, the unanimous consent of the JV   Members will be required in order for the JV to take any of the following   actions:
    

 

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·      the approval of the JV’s annual budget   and strategic and operating plan;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
·      the JV entering into or   terminating loans, credit facilities, or other arrangements (including but   not limited to investments and divestments) with a value of more than   $1,000,000 (whether in a single loan or in a series of related loans or   arrangements), unless such actions are contemplated by or are otherwise   within the applicable monetary limits set forth in the approved annual budget   or annual operating plan;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
·      amending the JV’s   organizational documents;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
·      the JV’s issuance of   shares, options, warrants, or other securities (including but not limited to   debt instruments);
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
·      the JV   acquiring or disposing of companies and/or business, or entering into or   terminating long-term strategic cooperation agreements with a third party   (including but not limited to joint ventures); and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
·      the JV applying for or   consummating a merger, demerger, liquidation, bankruptcy, or suspension of   payments.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The JV will be operated out of a New York   office space to be leased by the JV.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Q Hardstyle. Q-Dance shall be the preferred supplier   of any harddance events organized by SFX. If SFX or a subsidiary of SFX   (other than the JV) promotes or organizes an Event that has a “harddance” or   “hardstyle” stage at that Event, then SFX shall (or shall cause such SFX   subsidiary to) first offer Q-Dance the right to host such Event (upon   arms’-length terms), except that SFX is not required to (and is not required   to cause such SFX subsidiary to) first offer Q Dance such right if SFX or   such subsidiary is contractually prohibited from extending such first offer   to Q Dance.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
SFX-Organized Events. If SFX promotes,   markets, or organizes an Event or enters into a promotional or sponsorship   arrangement and the JV provides signage or other services in connection with   such Event or arrangement, then SFX shall provide ID&T with a methodology   for calculating the amount of income in respect of such Event or arrangement   that should be allocated to the JV. If ID&T disputes any such   methodology, then ID&T is permitted to refer the matter to Binding   Arbitration.
    

 

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CERTAIN JV EXPENSES
    	
 
    	
The license fee payable in respect of a given Brand will be allocated   as an expense of the Event for which that Brand is being used.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The JV will work with SFX’s local partners or subsidiaries as   necessary so that the JV can promote Brand-related Events in local markets.   Any pre-approved reasonable direct costs related to promoting such Event will   be part of that Event budget, including promoter fees; except that if   JV promotes a Brand-related Event directly (or through a SFX subsidiary),   then the direct costs related to promoting such Event (such as marketing or   venue costs) will be billed to that Event budget, but no overhead,   administrative costs, and/or promoter fees related to promoting an Event will   be billed to the JV (except that, if such Event is promoted by an entity in   which SFX owns less than a 100% interest, then only a portion of the regular   promoter fees for such Event shall be received by such entity and will be   billed to the JV as part of that Event budget, which portion shall be equal   to the portion of such entity that SFX does not own).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The JV will not be responsible for paying any SFX or ID&T   overhead or administrative costs that SFX or ID&T incurs in connection   with operating the JV (unless otherwise agreed by ID&T and SFX).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
All contracts or arrangements between the JV on one hand, and SFX or   ID&T, on the other hand, will be fair and will be equivalent to the costs   that would be agreed in an at arm’s-length negotiation for such services or   assets.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The JV expenses will include the costs of relocating ID&T   personnel to the United States in connection with the operation of the JV’s   business (including the relocation to the United States of van Straalen and   his family and Jansen and his family) as per the rough estimate cost-sheet   attached as Exhibit B,  costs associated with the JV’s use of ID&T’s   office space (but only to the extent that such costs relate to the JV’s   operations), and the payroll expenses of van Straalen and Jansen and other   personnel employed from time to time by the JV.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The JV expenses, to the extent not funded by operations, will be   funded by SFX loans (on conditions as further set out below), or by   third-party loans that are approved by the Board.
    
	
 
    	
 
    	
 
    
	
JV INCOME
    	
 
    	
All income generated by or attributable to the use of the licensed   materials and/or Brands in North America or otherwise generated by or on   behalf of the JV, including, but not limited to, exploitation of licensed   intellectual property, rebroadcasting of JV  Events,   ticketing,
    

 

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sponsoring, food and beverage, benefits from mass-purchases will be   contracted by and allocated to the JV (or to a JV subsidiary).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
All contracts or arrangements between the JV on one hand, and SFX or   ID&T on the other hand, will be fair and will be equivalent to the income   or revenue that would be agreed in an at arm’s-length negotiation.
    
	
 
    	
 
    	
 
    
	
FINANCIAL STATEMENTS
    	
 
    	
SFX will be entitled to appoint the JV’s external auditor, provided   that such auditor is reasonably acceptable to ID&T. The audit of the JV   financial statements will initially be performed by Ernst & Young.   The scope of the auditor’s engagement will cover the reporting requirements   of both Parties.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The JV’s financial statements will be prepared and audited annually   in accordance with US GAAP and US GAAS and, if a Qualified IPO occurs, at the   level of disclosure required for financial statements required to be filed   with the US Securities and Exchange Commission (the “SEC”). The JV will   provide full insight and additional information to allow for the reconciliation   to Dutch GAAP, in order for ID&T to include ID&T’s interest in the JV   in ID&T’s annual accounts.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The preparation of such financial statements will be an expense of   the JV. For the avoidance of doubt, any other costs regarding the registration,   listing, or initial public offering (including the preparatory filings with   the SEC), will be an expense of SFX.
    
	
 
    	
 
    	
 
    
	
ACCOUNTING AND INFORMATION
    	
 
    	
The Parties intend that the JV will be consolidated with SFX for   accounting purposes and shall agree in the Acquisition Agreement on a   structure that allows for such consolidation.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The JV’s fiscal year will be the same as SFX’s fiscal year (as the   same might be adjusted from time to time), it being understood that if the   JV’s fiscal year would differ from ID&T’s financial year, then the JV   will at its own expense, at ID&T’s first request, provide such   information as to enable ID&T to prepare its annual accounts.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Board shall provide to the Parties quarterly interim financial   statements based on US GAAP including information for conversion to Dutch   GAAP, including a balance sheet and profit and loss statement, of the JV,together   with a comparison against the prior year’s financials and the approved annual   budget.
    
	
 
    	
 
    	
 
    
	
SFX BOARD OBSERVER
    	
 
    	
Commencing one week following the Effective Date and during the existence   of the JV, ID&T will have the right to appoint and dismiss an   observer to the SFX board who will have full rights to observe
    

 

12

 

	
 
    	
 
    	
and participate in meetings, including notice of meetings.
    
	
 
    	
 
    	
 
    
	
LOANS TO THE JV
    	
 
    	
After consummation of the Transactions and depending upon the JV’s   credit rating, the Parties shall use their respective reasonable efforts to   cause the JV to enter into a credit arrangement with an unaffiliated third   party upon reasonable market terms.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
To the extent not financed by third-party financing, SFX will loan,   on market terms approved by the Board (including reasonable market-based   interest rates for such loans), the JV expenses and working capital necessary   to fund Events and operations. In approving any SFX loan, the Board members   appointed by SFX shall not unreasonably reject any loan or terms thereof   necessary for SFX to comply with the foregoing funding obligation to the   extent such loan or terms thereof have been approved by the Board members   appointed by ID&T.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Unless SFX and the Board approve otherwise, the JV will repay all   loans from the Parties in accordance with the terms of such loans.
    
	
 
    	
 
    	
 
    
	
DISTRIBUTIONS
    	
 
    	
Surplus Cash Distributions. After repaying (or setting aside sufficient funds for the repayment   of) 50% of any amount owed under loans to the JV from SFX, the JV will be   permitted to distribute (in respect of the respective equity interests in the   JV held by the Parties) all surplus in cash (if any) to the Parties as   distributions (any such distribution, a “Surplus  Cash Distribution”),  pro rata based   upon the respective percentages of equity interests in the JV that the   Parties hold at the time of such Surplus Cash Distribution; except   that, to the extent that any principal or interest on the ID&T Advance   remains outstanding, any Surplus Cash Distribution that would be payable to   ID&T will be paid instead to SFX and such amount will reduce the   outstanding balance of the ID&T Advance.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Tax Distributions. The JV will, to the   extent of available cash, make tax distributions to the Parties in an amount   sufficient to allow the Parties to satisfy their respective income tax   obligations that result from allocations of the JV’s income. Without limiting   SFX’s obligations to finance operations, SFX will not be responsible for   funding the JV if there are insufficient funds available to make any given   Tax Distribution.
    
	
 
    	
 
    	
 
    
	
TRANSFER OF SFX COMMON STOCK
    	
 
    	
Lock-up Period. ID&T will not transfer any SFX Shares   or Transaction Warrant Shares prior to the date that is the one-year   anniversary of the earlier of (x) the date on which a Qualified IPO is   consummated or (y) the Closing Date (such one-year period, the “Lock-up   Period”).  After   the end of the Lock-up Period, ID&T will
    

 

13

 

	
 
    	
 
    	
be permitted to sell the SFX Shares and the Transaction Warrant   Shares, but, until a Qualified IPO occurs, only if ID&T first provides   SFX with notice thereof at least 10 business days prior to any such sale.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
SFX Call Rights. During the period beginning on the   Closing Date and ending on (and including) the date that is the three-year   anniversary of the Closing Date, SFX will have the right to purchase any SFX   Shares and any Transaction Warrant Shares, to the extent held by ID&T at   such time, for a purchase price of $35 per share (as adjusted for any stock   splits, corporate reorganizations, or similar events from and after the Effective   Date). During the period beginning one day after the three-year anniversary   of the Closing Date and ending on (and including) the date that is the   five-year anniversary of the Closing Date, SFX will have the right to   purchase any SFX Shares and Transaction Warrant Shares, to the extent held by   ID&T, for a purchase price of $50 per share (as adjusted for any stock   splits, corporate reorganizations, or similar events from and after the   Effective Date). The Parties acknowledge that, subject to the Lock-up Period   on the SFX Shares and the Transaction Warrant Shares, ID&T will be   permitted to transfer the SFX Shares and the Transaction Warrant Shares prior   to SFX’s exercise of the call rights described in this paragraph.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Registration. SFX shall use commercially reasonable   efforts to register the SFX Shares and Transaction Warrant Shares for resale   with the SEC and to pursue a Qualified IPO. ID&T will enter into a   customary lock-up agreement as reasonably requested by SFX’s underwriters in   connection with a Qualified IPO, which shall be no more burdensome than   Sillerman’s lock-up.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
ID&T Put Option. If a Qualified IPO is   not consummated within 19 months following the Effective Date, then ID&T   shall have the right to require SFX to acquire the following for an aggregate   cash purchase price of $10 million (the “Put Price”): (i) any SFX Shares that   have been issued to ID&T or ID&T’s right to acquire SFX Shares, as   applicable; (ii) all Transaction Warrant Shares that ID&T has   acquired pursuant to exercising Transaction Warrants; and (iii) any the   Transaction Options to the extent not exercised. SFX will be required to pay   to Put Price as soon as SFX has the resources to do so; except, that   SFX is permitted to offset amounts remaining under the ID&T Advance against   the Put Price. If SFX has not paid the Put Price to ID&T or before the   date that is the 75 days after the date on which ID&T exercises the put   option, then, at the option of ID&T, ID&T shall have the right   (i) to terminate the License Agreement, or (ii) to require SFX to   transfer its equity interest in the
    

 

14

 

	
 
    	
 
    	
JV to ID&T.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Drag-along Rights. Until a Qualified IPO   occurs, if Sillerman sells to a bona fide third party all the SFX common   stock that he owns at a price per share of SFX common stock that is equal to   or greater than 120% of the SFX Share Acquisition Price (as adjusted for any   stock splits, corporate reorganizations, or similar events from and after the   Effective Date), then, at Sillerman’s option, ID&T will be required   to sell, on the same terms and conditions as received by Sillerman, all the   SFX Shares and any Transaction Warrant Shares (any options vested will   convert immediately prior to such event), to the extent held by ID&T at   such time. “SFX Share Acquisition Price”  means the implied price per share   of the SFX Shares at the time that ID&T acquires the SFX Shares.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Tag-along Rights. Until a Qualified IPO   occurs, if the owner of Sillerman’s SFX common stock proposes to sell to a   third party more than 50% of the SFX common stock that he (directly or   indirectly) owns, then ID&T will have the right to cause that owner of   Sillerman’s SFX common stock to include in such sale all the SFX Shares and   any Transaction Warrant Shares and (any options vested will convert   immediately prior to such event), to the extent held by ID&T at such   time, on the same terms and conditions as received by that owner of   Sillerman’s SFX common stock.
    
	
 
    	
 
    	
 
    
	
TRANSFER OF THE JV EQUITY INTERESTS
    	
 
    	
Each Party will not directly or indirectly transfer any of such   Party’s equity interests (or share) in the JV (“Equity”),   except:
    
	
 
    	
 
    	
·      each Party is   permitted to transfer all or any portion of such Party’s Equity in the JV  to   one or more of its subsidiaries;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
·      each Party is   permitted to pledge all or any portion of such Party’s Equity in connection   with a financing; and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
·      each Party is permitted to   (indirectly) transfer all (but not less than all) of such Party’s Equity in   connection with the sale or merger of the entire group of either Party, but   only if the person or with which the entire group of such Party is being sold   or merged, respectively, is at least as credit-worthy as such Party.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
As a condition to becoming a member of the JV, the transferee of   Equity must agree to be bound by the terms of the JVA to the same extent as   the transferring Party with respect to the Equity so transferred.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Operating Agreement will provide that a bona fide pledgee of a
    

 

15

 

	
 
    	
 
    	
Member’s Membership Interests that acquires such Membership Interests   in connection with a foreclosure thereon will succeed to such Member’s   economic, but not voting or other control, rights under the Operating   Agreement and will not terminate JV LLC.
    
	
 
    	
 
    	
 
    
	
TERMINATION OF THE JV
    	
 
    	
The JV will terminate upon, and only upon, the agreement of all of   the members of the JV or upon termination of the License Agreement. No breach   by the JV caused by a Party or such Party’s board members or officers will   give such Party the right to terminate the License Agreement or the JV.
    
	
 
    	
 
    	
 
    
	
DEFINITIVE AGREEMENT; TRANSACTION STRUCTURE 
    	
 
    	
Promptly following the date hereof, the Parties will begin negotiating   the JVA, the License Agreement and the other definitive documents to be   entered into in order to implement the Transactions (collectively, the “Definitive   Documents”),  based   on the terms contained in this Term Sheet. The Acquisition Agreement will   include representations, warranties, covenants, conditions, and indemnities   customary for transactions of the type contemplated hereby.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Parties will mutually agree upon the structure for implementing   the Transactions, consistent with the terms of this Term Sheet and taking   into account the need to optimize the tax efficiency of the structure for   both Parties.
    
	
 
    	
 
    	
 
    
	
GOVERNING LAW
    	
 
    	
To the extent not inconsistent with Federal law, this Term Sheet will   be, and the Definitive Documents are intended to be, governed in all respects   (including, without limitation, validity, interpretation, and effect), by the   laws of the State of New York applicable to contracts made and to be   performed wholly within the State of New York by residents thereof; except   that, if the JV is formed under the laws of a jurisdiction other than New   York, then the Parties will consider whether the JVA will be governed by the   laws of that other jurisdiction.
    
	
 
    	
 
    	
 
    
	
ARBITRATION PROVISIONS IN DEFINITIVE DOCUMENTS
    	
 
    	
The Definitive Documents will provide that any disputes thereunder   will be resolved first by efforts by the Co-CEOs to resolve any such   disputes, then, if not resolved by the Co-CEOs, by efforts by the Board to   unanimously resolve any such disputes, then, if not resolved by the Board, by   efforts of the senior executives of the JV Members to resolve any such   disputes and, finally, if not resolved by the CEOs of the JV Members,   pursuant to Binding Arbitration. “Binding Arbitration”  means binding arbitration in New   York, New York under the rules of the JAMS in which the prevailing party   in any such arbitration will be entitled to such party’s reasonable   attorney’s fees and costs.
    

 

16

 

	
NON-COMPETE; NON-SOLICIT
    	
 
    	
Prior to the Closing, ID&T shall inform SFX on its   operations in North America.
    
	
 
    	
 
    	
As of the Closing and for so long as the JV is in existence:   (1) each Party will not directly or indirectly engage in any business in   North America that is competitive with the business conducted by the JV in   relation to any Brand; except that, if the License Agreement is   partially terminated with respect to a Brand, then the obligation set forth   in this clause (1) thereafter will not apply to such brand; and   (2) each Party will not (subject to certain exceptions) solicit for   employment, employ, or engage for the provision of services any person that   is or was an employee of the JV or of the other Party.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Notwithstanding the foregoing paragraph under (1):
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(a) SFX will expressly retain SFX’s right to originate, promote,   exploit, develop, and operate electronic dance music Events and associated   intellectual property in all locations (for the avoidance of doubt other than   in relation to the Brands);
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(b) SFX’s promotion of such Events, within or outside of North   America (for the avoidance of doubt, other than in relation to the Brands),   using brands, trademarks, or trade names owned or licensed by SFX or its   subsidiaries (for the avoidance of doubt, other than the Brands) will be   deemed to not violate the Term Sheet, the License Agreement, the JVA, or any   obligations owing to the JV or ID&T; provided, however, that SFX shall   use its reasonable efforts to avoid promoting Events which would reasonably   be expected to diminish or interfere with the use of the Brands, in   particular, by virtue of the timing and location of performances.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(c) subject to the other provisions of this Term Sheet, ID&T   will expressly retain the right to execute any of its (or any of its   subsidiaries’) pre-existing arrangements or contracts; and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(d) ID&T will expressly retain the right to execute and enter   into Extra Territory Contracts or arrangements to use the Brands, subject to   appropriate allocation to the JV for the revenues and expenses thereof that   are attributable to North America (as to be further specified in the JVA).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
ID&T will use commercially reasonable efforts to require its   officers to execute non-competition agreements that provide that such officer   will not compete in the electronic dance music Events / concert promotion   business in North America. Such non-competition agreements will have a term   that is at least as long as any other non- competition agreement that might   be in place between such officer
    

 

17

 

	
 
    	
 
    	
and ID&T, and in any event not less than 1 year from the   termination of employment.
    
	
 
    	
 
    	
 
    
	
CONFIDENTIAL INFORMATION
    	
 
    	
All information conveyed by one Party to the other Party in connection   with this Term Sheet, including, without limitation, the terms of this Term   Sheet, are and will be deemed to be “Confidential Information” under the   Confidentiality Agreement. Notwithstanding the immediately foregoing sentence   or anything to the contrary herein, SFX is permitted: (i) to disclose or   use Confidential Information, this Term Sheet and the terms hereof, the   Definitive Documents and the terms thereof, and the Transactions (any of the   foregoing, “SEC-Disclosable Information”)  in and in connection with the   preparation of any registration statement relating to the registration of   shares of SFX’s common stock (a “Registration Statement”),  to the extent such disclosure or   use is required by law, and in connection with any subsequent reporting   obligations relating to such filing, to the extent such disclosure or use is   required by law; (ii) to disclose SEC-Disclosable Information to, or to use   SEC-Disclosable Information in connection with corresponding with, the SEC,   to the extent such disclosure or use is required by law; and (iii) to   disclose SEC-Disclosable Information to SFX’s representatives in connection   with (A) the due diligence relating to a Registration Statement or a   bank financing with respect to SFX or any of its subsidiaries, (B) the   preparation of a Registration Statement or (C) the preparation of any   documentation relating to any such bank financing
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Parties shall agree upon a press release with respect to their   entry into this Term Sheet and the transactions contemplated hereby.
    
	
 
    	
 
    	
 
    
	
EXISTING TERM SHEET TERMINATED
    	
 
    	
The parties acknowledge that the term sheet, dated June 19, 2012   (the “Original Term Sheet”),  has   been terminated, except that the restrictions in the Original Term Sheet on   the disclosure and use of certain information is not hereby terminated.   ID&T acknowledges that SFX is not and will not be required to pay the   break-up fee set forth under the provision in the Original Term Sheet   entitled “BREAK-UP FEE.”
    

 

The provisions of this Term Sheet are binding on the Parties.

 

[Signature page follows.]

 

18

 

The Parties are signing this Term Sheet as of the Effective Date.

 

	
 
    	
ID&T HOLDING B.V.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Duncan Stutterheim
    
	
 
    	
 
    	
Name:
    	
Duncan Stutterheim
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ W. W. Tavecchio
    
	
 
    	
 
    	
Name:
    	
W. W. Tavecchio
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SFX HOLDING CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert F.X. Sillerman
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
With   respect to the sections of this Term Sheet
    
	
 
    	
relating to tag-along rights:
    
	
 
    	
 
    
	
 
    	
/s/ Robert F.X. Sillerman
    
	
 
    	
Robert F.X. SillermanExhibit 10.22

 

AMENDMENT TO JV AGREEMENT

 

This AMENDMENT TO JV AGREEMENT (this “Amendment”) is dated as of March 14, 2013 (the “Effective Date”) and is made between SFX Entertainment, Inc. (f/k/a SFX Holding Corporation) (“SFX”), SFX-IDT N.A. Holding LLC (“SFX-IDT N.A. Holding”)), ID&T/SFX North America LLC (“ID&T/SFX NA”), ID&T/SFX Q-Dance LLC (“Q-Dance LLC”), ID&T/SFX Sensation LLC (“Sensation LLC”), ID&T/SFX Mysteryland LLC (“Mysteryland LLC”), ID&T/SFX TomorrowWorld LLC (“TomorrowWorld LLC” and, collectively with SFX-IDT N.A. Holding, ID&T/SFX NA, Q-Dance LLC, Sensation LLC, and Mysteryland LLC, the “JV Entities”), and ID&T Holding B.V. (“ID&T” and, collectively with SFX and the JV Entities, the “Parties”).

 

A.                                    The Parties (other than the JV Entities) and Robert F.X. Sillerman are party to the Binding Term Sheet dated October 26, 2012 (the “JV Agreement”) regarding the creation of a joint venture between the Parties with respect to ID&T’s business in Canada, Mexico, and the United States, as more fully set forth in the JV Agreement.

 

B.                                    The Parties are entering into this Amendment to amend the JV Agreement.

 

C.                                    Capitalized terms used herein and not otherwise defined shall have the meaning set forth for such term in the JV Agreement.

 

The Parties hereby agree as follows:

 

1.                                      Amendments.

 

(a)                                 The defined term “Term Sheet” and the phrase “Binding Term Sheet” are substituted and replaced in all instances in the JV Agreement with the defined term “JV Agreement” and the phrase “term sheet” in the first paragraph of the JV Agreement is substituted and replaced with the phrase “joint venture agreement”.

 

(b)                                 Notwithstanding anything to the contrary in the JV Agreement, the Parties will only enter into Definitive Documents to the extent deemed advisable by the Parties.

 

(c)                                  The following rows are hereby added immediately following the last row of the table in the body of the JV Agreement:

 

	
CONDUCT   OF BUSINESS
    	
 
    	
The   JV shall not change its business from licensing, promoting, producing,   marketing and conducting Events in venues leased from third parties. Nothing   herein shall restrict the JV’s ability to monetize any ancillary revenue   streams from such Events, including merchandising, simulcasting and   rebroadcasting such Events.
    
	
 
    	
 
    	
 
    
	
CERTAIN   PROVISIONS IN CONNECTION WITH LOAN FACILITY:
    	
 
    	
Notwithstanding   anything in this JV Agreement to the contrary: 

 

·                                          Without   limiting SFX’s rights under this JV Agreement to otherwise pledge SFX’s   portion of the Equity (which currently constitutes 51% of the equity   interests in the JV), SFX is permitted to pledge all or any portion of SFX’s   portion of the Equity to one or more banks or other lenders (any such pledged   equity, “SFX Pledged 
    

 

 

	
 
    	
 
    	
                                                Equity”; any such   bank or other lender, as the case might be, a “Lender”)   to secure the obligations of SFX or any or any of SFX’s subsidiaries in   connection with a loan or credit facility (any such loan or credit facility,   a “Credit Facility”). 

 

·                                          Upon the   occurrence of an event of default under the loan documents with respect to   any Credit Facility (an “Event of Default”),   the applicable Lender or Lenders are permitted to foreclose on the SFX   Pledged Equity with respect to such Credit Facility and will thereby be   entitled to all of SFX’s rights as a holder of such SFX Pledged Equity   (including, without limitation, rights with respect to the transfer of all or   a portion such SFX Pledged Equity, rights with respect to the voting of such   SFX Pledged Equity, and other control functions over the JV’s operations to   which SFX is entitled in SFX’s capacity as a holder of such SFX Pledged   Equity). 

 

·                                          Upon a Lender   becoming the owner of SFX Pledged Equity in connection with a foreclosure on   such SFX Pledged Equity after the occurrence of an Event of Default, such   Lender will be permitted to freely transfer all or a portion of such SFX   Pledged Equity and such transferee or transferees shall be entitled to all of   the rights of the Lender hereunder. 

 

·                                          Upon a   Lender’s request, the Parties will cause the JV and each of the JV’s   subsidiaries to pledge (and each of the JV Entities (as defined in the   Amendment to this JV Agreement dated March 14, 2013) will pledge) any of   the JV’s or such subsidiary’s assets (including, without limitation, the JV’s   equity interests in its subsidiaries) (as requested by such Lender) in   connection with a Credit Facility, and will take such reasonable action as   might be required by such Lender to implement such pledge; provided that no   Lender will have any right to exercise any right, remedy or power, including   any foreclosure action or other disposition, with respect to the assets of   the JV or any of the JV’s subsidiaries until the earliest to occur of   (i) one year from the date of an Event of Default, (ii) the   occurrence of an Event of Default directly attributable to the JV or its   subsidiaries or any other person (including any Party) taking any foreclosure   action or other disposition with respect to the assets of the JV or any of   the JV’s subsidiaries and (iii) any formal bankruptcy proceeding with   respect to the JV or any of the JV’s subsidiaries. 
    

 

2

 

	
 
    	
 
    	
·                                          Upon a   Lender’s request, the Parties will (and the JV Entities will) (a) cause   the JV and each of the JV’s subsidiaries to guaranty amounts   (i) borrowed and not repaid by SFX or any of SFX’s subsidiaries and   loaned to the JV or any such subsidiary, or (ii) borrowed and not repaid   by the JV or such subsidiary pursuant to a credit facility, letter of credit   or letter of credit facility, or similar facility, in either case up to a   maximum of $15 million, and will take such reasonable action as might be   required by such Lender to implement such guaranty and (b) cause the   JV’s subsidiaries to be jointly and severally liable with respect to such   guaranty. 

 

·                                          With respect   to any Credit Facility, the Parties will, upon a Lender’s request, cause the   JV and the JV’s subsidiaries to (and the JV Entities will) become party to   the loan documents with respect to such Credit Facility as a loan party,   pledgor and limited guarantor (as described above) and to agree to be bound   by the terms and covenants of such loan documents. 

 

·                                          The Parties   will not cause the JV or any subsidiary of the JV to (and the JV Entities   will not) take or fail to take any actions that the JV or any subsidiary of   the JV is prohibited from taking under the loan documents with respect to a   Credit Facility (or that would result (whether with the passage of time,   notice, or both) in an Event of Default under such loan documents).

 

·                                          The Parties   will not amend any provision of the JV Agreement regarding distributions from   the JV. 

 

·                                          All Surplus   Cash Distributions shall be made promptly (but in any event not longer than   10 business days) upon the receipt by the JV of any surplus in cash.
    

 

3

 

2.                                      No Other Amendments. Except as amended hereby, the terms of the JV Agreement remain in effect. The JV Entities are party to this Amendment and are not hereby becoming bound the terms of the JV Agreement.

 

3.                                      Governing Law. This Amendment is governed by and is to be construed in accordance with the internal laws of the State of New York applicable to contracts entered into and performed entirely within the State of New York, without giving effect to principles of conflict of laws.

 

4.                                      Counterparts. This Amendment can be executed in one or more counterparts and can be delivered via facsimile or similar instantaneous electronic transmission device pursuant to which the signature of or on behalf of a Party can be seen (including via a pdf attached to an email).

 

[Signature page follows]

 

4

 

The Parties are signing this Amendment as of the Effective Date.

 

	
SFX   ENTERTAINMENT, INC.
    	
 
    
	
(f/k/a   SFX HOLDING CORPORATION)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Shelly Finkel
    	
 
    
	
 
    	
Name:
    	
Shelly   Finkel
    	
 
    
	
 
    	
Title:
    	
President
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
ID&T   HOLDING B.V.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Chris van Overbeeke 
    	
 
    
	
 
    	
Name:
    	
Chris   van Overbeeke 
    	
 
    
	
 
    	
Title:
    	
Chief   Financial Officer
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Wildrik Timmerman 
    	
 
    
	
 
    	
Name:
    	
Wildrik   Timmerman 
    	
 
    
	
 
    	
Title:
    	
Authorized   Signatory
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
SFX-IDT   N.A. HOLDING LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Shelly Finkel
    	
 
    
	
 
    	
Name:
    	
Shelly   Finkel
    	
 
    
	
 
    	
Title:
    	
President
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
ID&T/SFX   NORTH AMERICA LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Shelly Finkel
    	
 
    
	
 
    	
Name:
    	
Shelly   Finkel
    	
 
    
	
 
    	
Title:
    	
Authorized   Person
    	
 
    
	
 
    	
 
    
					

Signature Page to Amendment to the JV Agreement, dated March 14, 2013

 

 

	
ID&T/SFX Q-DANCE LLC
    	
 
    
	
 
    	
 
    
	
BY:
    	
ID&T/SFX   North America LLC, its Sole Member
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Shelly Finkel
    	
 
    
	
 
    	
Name:   
    	
Shelly   Finkel
    	
 
    
	
 
    	
Title:
    	
Authorized   Person
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ID&T/SFX SENSATION   LLC
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 ID&T/SFX North America LLC, its Sole   Member
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Shelly Finkel
    	
 
    
	
 
    	
Name:   
    	
Shelly   Finkel
    	
 
    
	
 
    	
Title:
    	
Authorized   Person
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ID&T/SFX MYSTERYLAND LLC
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 ID&T/SFX North America LLC, its Sole   Member
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Shelly Finkel
    	
 
    
	
 
    	
Name:
    	
 Shelly Finkel
    	
 
    
	
 
    	
Title:
    	
Authorized   Person
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ID&T/SFX TOMORROWWORLD LLC
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 ID&T/SFX North America LLC, its Sole   Member
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Shelly Finkel
    	
 
    
	
 
    	
Name:   
    	
Shelly   Finkel
    	
 
    
	
 
    	
Title:
    	
Authorized   Person
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
ACKNOWLEDGED   BY:
    	
 
    
	
 
    	
 
    
	
/s/   Robert F.X. Sillerman
    	
 
    
	
Robert   F.X. Sillerman
    	
 
    

 

Signature Page to Amendment to the JV Agreement, dated March 14, 2013

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