Exhibit 10.1
ASTERISKS INDICATE MATERIAL THAT HAS
BEEN REDACTED, FOR WHICH
CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED.
Execution Version
This AMENDMENT TO THE AGREEMENT (this "
Amendment "), dated as of October 18, 2009 (the "
Amendment Date "), is entered into by and among Steven
Spielberg, in his personal capacity, Diamond Lane Productions,
Inc., a California corporation (" DLP " and together with
Steven Spielberg, " Steven "), and Universal City
Development Partners, Ltd., a Florida limited partnership (as
successor in interest to Universal City Florida Partners, the "
Partnership "), such parties to be referenced individually
as a " Party " and collectively as the " Parties
".
RECITALS
WHEREAS, Steven Spielberg and the Partnership
are parties to that certain Agreement, dated as of January 20,
1987, and amended and/or modified as of January 5, 2001, July 15,
2003 and March 30, 2006 (collectively, the " Agreement "),
with respect to Steven Spielberg rendering certain services to the
Partnership as creative consultant in connection with certain
projects;
WHEREAS Steven Spielberg by letter dated
February 27, 1989, has directed that all payments to him by the
Partnership under the Agreement be made to DLP;
WHEREAS, DLP is currently receiving payments for
the Florida Project and one Comparable Project in Osaka,
Japan;
WHEREAS, additional projects that could
constitute Comparable Projects are currently contemplated in
Singapore, Dubai, *** and ***;
WHEREAS, subject to the terms and conditions set
forth herein, the Parties agree to amend the Agreement by way of
this Amendment; and
WHEREAS, capitalized terms used but not defined
in this Amendment shall have the meanings ascribed to them in the
Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of the
foregoing and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Parties
hereby agree as follows:
ARTICLE I
AMENDMENTS TO THE
AGREEMENT
1.1 Amendments to
the Agreement . Steven and the Partnership each
hereby consents and agrees that the Agreement is hereby amended as
follows:
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The first
sentence of Paragraph 11(b) of the Agreement is hereby
amended and restated in its entirety to read as follows:
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"Subsequent to
the above three-year period as to the Florida Project and for all
years during the term of this agreement as to the Comparable
Project in Osaka, Japan known as Universal Studios Japan ("
USJ "), DLP shall be paid ***% of 100% of the gross
revenues, gross rentals, sales price, etc. instead of the above
provided ***%."
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Paragraph
11(d) of the Agreement is
hereby amended and restated in its entirety to read as
follows:
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"DLP will be
entitled to quarterly accountings and payments based thereon within
45 days from the end of each quarter. On every June 30th
during the term of this Agreement (or, if not a Business Day (as
used herein, " Business Day " means any day that is not a
Saturday, Sunday or other day on which commercial banks in Orlando,
Florida are authorized or required by law to remain closed), on the
next Business Day thereafter), (i) the Partnership will provide DLP
with a three-year projection of the payments projected to be owed
to DLP under this Agreement in respect of the Florida Project and
(ii) Universal City Studios LLLP d/b/a Universal Parks and Resorts
(" UPR ") will provide DLP with a three-year projection of
the payments projected to be owed to DLP under this Agreement in
respect of each Comparable Project.
Such
projections will be based on management’s reasonable best
estimates as to the future performance of the Florida Project and
such Comparable Projects at the time prepared. Steven
acknowledges and agrees that such projections are for informational
purposes only and actual performance may differ substantially from
such projections. Neither the Partnership nor UPR, nor
any guarantor of the Partnership’s obligations under this
Agreement, shall incur any liability with respect to such
projections. Steven shall keep all such projections
confidential pursuant to (i) Paragraph 25 of this Agreement, (ii)
that certain Confidentiality Agreement between DLP and UPR, dated
as of May 1, 2009 and (iii) that certain Confidentiality Agreement
between DLP and the Partnership, dated as of October 15,
2009."
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Paragraph
11(e) of the Agreement is
hereby amended and restated in its entirety to read as
follows:
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"Except as
provided in the remainder of this Paragraph 11e, the payment to DLP
of ***% of the Project’s revenues specified above in this
Paragraph 11 shall, subject to Paragraphs 13e and 14e, apply also
to Comparable Projects in which Steven becomes vested hereunder
pursuant to Paragraph 12 while Steven has an obligation to render
consulting services hereunder (as the term of his obligation to
render consulting services may be extended pursuant to Paragraph
13). "Gross revenues" of a Comparable Project shall be
defined as set forth in Exhibit "A", as if the Partnership was the
sole owner and operator of such Comparable
Project. Notwithstanding the foregoing to the contrary,
with respect to any Comparable Project (other than USJ) in which
DLP’s interest is vested hereunder pursuant to Paragraph 12
while Steven has an obligation to render consulting services
hereunder (as the term of his obligation to render consulting
services may be extended pursuant to Paragraph 13) (and are not
exempted by Paragraphs 13e or 14e) and in which the Partnership
and/or any Affiliate(s) do(es) not own or control at least 50% of
the equity thereof, in lieu of all other sums provided above in
this Paragraph 11, DLP shall receive a participation in 100% of the
gross revenues, gross rentals and sales price, etc. of such
Comparable Project equal to the greater of (i) ***% and (ii) the
percentage figure determined by multiplying *** times the ratio
that the Partnership’s (and/or any Affiliate’s) equity
in such Comparable Project bears to 50%. For example, if
the Partnership and/or any Affiliates own 45% of the equity of a
Comparable Project, then DLP shall receive ***% of 100% of the
gross revenues, gross rental, sales price, etc., of such Comparable
Project."
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Paragraph
12 of the Agreement is
hereby amended and restated in its entirety to read as
follows:
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"12.
Vesting
. Steven
has earned the right to receive ***% of 100% of the gross revenues,
gross rentals, sales price, etc., from the Florida Project and from
USJ, each as in existence on the effectiveness of that certain
Amendment to the Agreement (the " 2009 Amendment "), dated
October 18, 2009 (such date of effectiveness, the " 2009
Amendment Date ") (which means that such compensation is
"vested"). The term "vest" and "vested" as hereinafter
used in this Agreement means Steven cannot be deprived of payments
which are "vested" by reason of Steven’s death or disability
or by reason of Steven’s default. Steven is also
deemed vested as of the 2009 Amendment Date in his right to receive
the amounts set forth in Paragraph 11e in connection with the
Comparable Projects contemplated as of the 2009 Amendment Date in
Singapore, Dubai, *** and *** (the " Contemplated Projects
"). Steven’s right to compensation from any other
Comparable Project (other than USJ and the Contemplated Projects)
under Paragraph 11 shall vest with respect to each such Comparable
Project if, on the date when construction of such Comparable
Project commences, as evidenced by on-site physical work such as
demolition, clearing or construction, Steven continues to have an
obligation to render consulting services hereunder, this Agreement
has not been terminated as a result of Steven’s material
breach and Steven is not then deceased or permanently and
substantially mentally disabled. For the avoidance of
doubt, nothing in this Agreement shall obligate the Partnership or
any of its Affiliates, or UPR, to proceed with the development or
opening of any Comparable Project (including but not limited to the
Contemplated Projects). Also for the avoidance of doubt,
the fact that a Comparable Project has "vested", and therefore
Steven cannot be deprived of payments which are "vested" by reason
of the events noted above, shall not in and of itself mean that
Steven has any right to receive compensation in respect of such
Comparable Project pursuant to Paragraph 14b. Nothing
set forth herein deprives the Partnership of its right to damages
(and its offset and other rights at law or in equity, if any) in
the event of Steven's material breach hereof."
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Paragraph
13b is hereby amended by
inserting the following sentence at the end thereof:
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"The
Partnership is deemed to have given Steven a timely written notice,
pursuant to and in accordance with Paragraph 13a, pursuant to which
the Partnership has declined to exercise its Extension Option for
the Extension Year containing the 2009 Amendment Date, and Steven
is deemed to have exercised Steven’s Option for each year
that he has the right to do so, whether or not written notice is
given as herein provided."
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The first
sentence of Paragraph 14 of the Agreement is hereby amended
and restated in its entirety to read as follows:
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"The
"Termination Date" is defined to be June 7, 2017."
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Paragraph
14(b) of the Agreement is
hereby amended and restated in its entirety to read as
follows:
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Subject to this
Paragraph 14b and Paragraph 14e, the Partnership will pay DLP, in
accordance with the terms hereof, the fair market value of Steven's
interest in the Florida Project and in all Comparable Projects
which were vested pursuant to Paragraph 12 hereunder and open to
the general public as of the date which is one year prior to the
Stop Date (the " Put Payment "), which Put Payment will be
determined in accordance with Exhibit D ( Put Payment
) attached hereto (the " Put Payment Formula ").
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At any time
prior to the Stop Date (but in no event later than June 7, 2017)
and solely with respect to the Florida Project and Comparable
Projects opened to the general public for greater than one year at
the time of election (the Florida Project and such Comparable
Projects, collectively, the " Qualifying Projects "), DLP
may make a one-time election by written notice (the " Interim
Adjustment Election "), which shall be dated the date of
delivery to the Partnership, to provide for the calculation of an
amount which DLP may choose to receive in lieu of the Put Payment
(the " Alternative Payment ") if the Stop Date occurs on or
before March 31, 2018; provided , however , that the
calculation as to any such Qualifying Project which shall not have
been opened to the general public at least three years when the
Interim Adjustment Election is made (such Qualifying Project, a "
Late Qualifying Project ") shall occur as set forth below on
the third anniversary of its opening to the general public (the "
Late Qualifying Adjustment Date "). The
Alternative Payment shall be calculated by adjusting the Applicable
Discount Rate and the Applicable Base Payment (as such terms are
defined in Exhibit D ) set forth in the Put Payment Formula
(the " Interim Adjustments ") as of a date (the " Interim
Adjustment Date ") that is (i) for the Qualifying Projects
(other than the Late Qualifying Projects), 90 days after date of
the Interim Adjustment Election and (ii) for any Late Qualifying
Project, the Late Qualifying Adjustment
Date. DLP’s election to receive the Alternative
Payment in lieu of the Put Payment (the " Payment Election
") shall be made within 10 Business Days after the amounts of the
Put Payment and Alternative Payment are determined with respect to
the Qualifying Projects that are not Late Qualifying Projects, and
such Payment Election shall be required to apply to all but not
less than all of the Qualifying Projects (including the Late
Qualifying Projects) in connection with the calculation of the Put
Payment or Alternative Payment, as the case may be.
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In connection
with the Interim Adjustment Election, the Interim Adjustments shall
be applied to the Put Payment Formula in order to calculate the
Alternative Payment as follows:
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The Applicable
Discount Rate for the Florida Project (as defined in Exhibit
D ) and the Applicable Discount Rate for a Comparable Project
(as defined in Exhibit D) that is a Qualifying Project, as
the case may be, shall be calculated as follows:
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two-thirds
(2/3) multiplied by (x) the Applicable Discount Rate for the
Florida Project on the Interim Adjustment Date or (y) the
Applicable Discount Rate for such Comparable Project on the Interim
Adjustment Date, as the case may be,
one third (1/3)
multiplied by (x) the Applicable Discount Rate for the
Florida Project on the Stop Date or (y) the Applicable Discount
Rate for such Comparable Project on the Stop Date, as the case may
be; and
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the Applicable
Base Payment for the Florida Project (as defined in Exhibit
D ) and the Applicable Base Payment for such Comparable Project
(as defined in Exhibit D ), as the case may be, shall be
calculated as of the Interim Adjustment Date, rather than as of the
Stop Date.
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DLP's right to
choose to receive, on the Stop Date, the Alternative Payment in
lieu of the Put Payment shall be inapplicable if the Stop Date does
not occur on or prior to March 31, 2018. For the
avoidance of doubt, in the event DLP receives the Alternative
Payment, it is acknowledged that the Alternative Payment shall be
calculated only with respect to the Qualifying Projects (including
Late Qualifying Projects, if any), and DLP will have no interest of
any kind in, or right to receive any compensation whatsoever with
respect to, any Comparable Projects that are not Qualifying
Projects or Late Qualifying Projects, nor will Steven have any
further obligation to render consulting services on any such
Comparable Project that is not a Qualifying Project or Late
Qualifying Project (regardless of whether such Comparable Project
that is not a Qualifying Project or Late Qualifying Project opened
to the general public more or less than one year before the Stop
Date, or opened to the general public anytime after the Stop
Date).
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If DLP receives
the Put Payment (and not the Alternative Payment) set forth in
clause (i) above, and on the Stop Date any Comparable Project
(including any Contemplated Project) which has vested hereunder,
has been opened to the general public as of the date which is one
year prior to the Stop Date, and has not then been opened to the
general public for at least 3 years prior to the Stop Date, the Put
Payment with respect to such Comparable Project shall occur within
10 Business Days following the date, if any, that such Comparable
Project has been opened to the general public for 3 years (it being
understood that the Applicable Base Payment and the Applicable
Discount Rate for any such Comparable Project shall be calculated
as of the date that such Comparable Project has been opened to the
general public for 3 years, and not as of the Stop Date), and DLP
shall continue to receive its quarterly compensation payments
pursuant to Paragraph 11 hereunder on such Comparable Project until
such Put Payment is made."
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The last two
sentences of Paragraph 15 of the Agreement are hereby
amended and restated in their entirety to read as
follows:
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"If the
Partnership and/or its Affiliates transfer ownership of their
equity interests, if any, in the Florida Project and any
then-existing Comparable Projects as a unit to a new owner,
provided that as of the date of such change of ownership, the
financial condition of the new owner reasonably appears to Steven
to be sufficiently strong to enable the new owner to comply with
its obligations to Steven and such new owner assumes for
Steven’s benefit all of the Partnership’s obligations
to Steven in writing, Steven will look solely to the new owner for
any obligations accruing or arising after said date and the
guarantees by MCA Inc. and Cineplex Odeon Corporation, as well as,
in the event the transfer occurs after June 7, 2017, the guarantee
by NBC Universal, Inc. (" NBCU "), referred to in Paragraph
22 will terminate. Except as set forth above, no
transfer of ownership shall affect the rights and obligations of
the parties."
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The reference
to "Paragraph 14b" in the seventh sentence of Paragraph 16
of the Agreement is hereby deleted and replaced with "Paragraph
20".
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Paragraph
20 of the Agreement is
hereby amended by inserting the following sentence at the end
thereof:
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"In the event
either Steven or the Partnership commences any such arbitration
against the other party with respect to this Agreement, the parties
agree that the prevailing party (as determined by the arbitral
panel before whom such proceeding is commenced) shall be entitled
to recover reasonable attorneys' fees and costs as may be incurred
in connection therewith in addition to any such other relief or
award as may be granted."
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Paragraph
22 of the Agreement is
hereby amended and restated in its entirety to read as
follows:
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"22.
Guarantees and Security; Powers of Attorney; Costs of
Perfection .
a.
Guarantees . Credit support for the Partnership's
obligations hereunder will be provided (i) by a joint and several
Guarantee, dated November 4, 1988, of MCA, Inc. and Cineplex Odeon
Corporation and (ii) by the Guarantee (the " NBCU Guarantee
"), dated October 18, 2009, of NBCU attached as Appendix B
to the 2009 Amendment.
b.
Security . Credit support for the Partnership's
obligations hereunder will also be provided pursuant to security
documentation executed and delivered in conformity with Paragraphs
3.1(b) and (c) to the 2009 Amendment, by which, among other things,
the Partnership's obligations arising in respect of the Florida
Project shall be secured by a perfected junior security interest
and mortgage lien on the Partnership's tangible personal and real
property included in the Florida Project, which security interest
and mortgage lien will apply to the property described in, and
shall have the terms and be subordinated and junior to the extent
set forth in, Paragraphs 3.1(b) and (c) of the 2009
Amendment.
The security
documentation securing the Partnership's obligations arising in
respect of the Florida Project will not restrict the Partnership's
ability to operate, manage, alter or sell any or all of the
property representing collateral or contain any covenants or
obligations, other than to grant and perfect for Steven's benefit a
security interest in the enumerated classes of property.
The parties
agree that the security interest and mortgage lien with respect to
the Florida Project granted to Steven pursuant to Paragraphs 3.1(b)
and (c) of the 2009 Amendment will by their terms terminate and be
released in full at such time that the senior liens contemplated by
such Paragraphs 3.1(b) and (c) of the 2009 Amendment is released,
provided that at that time no other security interest and mortgage
lien in the Florida Project shall have been granted by the
Partnership to any other lender. The security interest
and mortgage lien would not be released under circumstances where
Steven is seeking to realize against the collateral and the senior
lien contemplated by such Paragraphs 3.1(b) and (c) of the 2009
Amendment is released as a result of the application of proceeds of
realization against the collateral. Under such
circumstances, the junior security interest and mortgage lien will
be released on the collateral foreclosed upon, but not on
collateral that is not foreclosed upon (and not on any proceeds of
foreclosure remaining after payment in full of any prior
obligations).
If after the
release of the liens granted to Steven, the Partnership
subsequently grants to any lender a security interest with respect
to property included in the Florida Project, the Partnership will
at that time grant to Steven a junior security interest and
mortgage lien with respect to such property to the extent it
includes the tangible personal and real property of the type
included in the previously released junior security interest and
mortgage lien as described and subject to the terms set forth above
and in Paragraphs 3.1(b) and (c) of the 2009 Amendment;
provided , however , that if the subsequent security
interest and mortgage lien is a purchase money lien limited to the
property being purchased, then no such junior security interest
shall be required. For the avoidance of doubt, such
terms include those set forth in Appendix C to the 2009
Amendment. Also, it is agreed that any existing or
subsequent senior secured debt may not exceed in the aggregate the
greater of $975 million and an amount equal to the product of 3.75
times the EBITDA of the Partnership (determined at the time of the
incurrence of any term loans or at the time of increasing any
revolving commitments or at the time of incurring any other senior
secured debt, as the case may be, with "EBITDA" being defined in
and calculated pursuant to the relevant provisions of the senior
secured credit facilities referenced in Paragraph 3.1(c) of the
2009 Amendment).
The parties
agree that the security interest and mortgage lien with respect to
the Florida Project granted to Steven pursuant to Paragraphs 3.1(b)
and (c) of the 2009 Amendment will contain self-executing
provisions that state that, in the event of the release of any
collateral from the lien of any security interest and/or mortgage
securing the Partnership’s then-existing senior secured
credit facilities, the same collateral, if encumbered by any
security interest and/or mortgage lien with respect to the Florida
Project granted to Steven pursuant to Paragraphs 3.1(b) and (c) of
the 2009 Amendment, will automatically be deemed to be released
therefrom. Such self-executing automatic release
provisions shall be in addition to, not in lieu of, the powers of
attorney described in Paragraph 3.1(c) of the 2009 Amendment, and
shall not derogate from the powers of the attorneys-in-fact under
such powers of attorney. In the event the Partnership
determines to issue Incremental Obligations (as defined in the
Appendix C to the 2009 Amendment), then Steven will enter
into an intercreditor agreement and provide a power of attorney
with respect to such Incremental Obligations having substantive
terms comparable to and based on those set forth in Appendix
C to the 2009 Amendment and Paragraph 22c below.
c.
Powers of Attorney
. Referring
to the General Power of Attorney described in Appendix C to
the 2009 Amendment, Steven shall, from time to time, as applicable,
provide a power of attorney having similar terms for any agent
which shall succeed any agent acting for the benefit of the first
lien secured parties and for any such agent in any subsequent
senior financing described above, within 10 days of being furnished
with a form of power of attorney for execution.
Furthermore, in
addition to the General Power of Attorney described in Appendix
C to the 2009 Amendment, Steven shall provide, on or before the
2009 Amendment Date, and from time to time thereafter (within 10
days of being furnished with a form of power of attorney for
execution), as applicable in the case off successors, an
irrevocable, unconditional and recordable General Power of Attorney
in favor of NBCU (and its successors as guarantors under the NBCU
Guarantee), pursuant to which Steven shall authorize NBCU (and its
successors as guarantors under the NBCU Guarantee) to execute and
record, in the name and on behalf of Steven, (i) a release (x) each
time that the first lien secured parties execute and record a
similar such release or (y) in connection with any sale or
transfer, in whole or in part, of any or all of the real or
personal property in which a collateral interest is granted
pursuant to this Paragraph 22, and (ii) a subordination (x) each
time that the first lien secured parties execute and record a
similar such subordination or (y) in connection with any
refinancing, in whole or part, of the senior security interests and
mortgage liens encumbering the Florida Project or any portion
thereof or interest therein.
d.
Costs of Perfection
. &n
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