Contract
Exhibit 10.11
Portions of this exhibit have been omitted pursuant to a request for confidential treatment filed
with the Securities and Exchange Commission. The omissions have been indicated by asterisks
(“*****”), and the omitted text has been filed separately with the Securities and Exchange
Commission.
RESTATED GUARANTY OF LEASE
RESTATED
GUARANTY OF LEASE (this “Guaranty”) made as of this
14th day of August, 2008,
by MADISON SQUARE GARDEN, L.P., a Delaware limited partnership, with an address at 0 Xxxx Xxxxx,
Xxx Xxxx, Xxx Xxxx (“Guarantor”), to RCPI LANDMARK PROPERTIES, L.L.C., a Delaware limited
liability company having an address at c/o Tishman Speyer, 00 Xxxxxxxxxxx Xxxxx, Xxx Xxxx, Xxx Xxxx
00000 (“Landlord”).
WITNESSETH:
WHEREAS, Guarantor requested that Landlord enter into an agreement of lease, dated as of
December 4, 1997 (such lease, as modified by First Amendment to Lease dated as of February 19,
1999, Second Amendment to Lease dated as of November 6, 2002 and Third Amendment to Lease dated as
of the date hereof, together with any modifications, amendments, extensions and renewals hereafter,
being collectively called the “Lease”), with Radio City Productions, LLC, as tenant
(“Tenant”), covering space consisting of the Radio City Music Hall and portions of
buildings commonly known as 0000 Xxxxxx xx xxx Xxxxxxxx, Xxx Xxxx, Xxx Xxxx and 00 Xxxxxxxxxxx
Xxxxx, Xxx Xxxx, Xxx Xxxx (the “Premises”);
WHEREAS, unless otherwise provided herein all terms not defined herein shall have the meanings
given in the Lease;
WHEREAS, Landlord was not willing to enter into the Lease unless Guarantor guaranteed pursuant
to the Guaranty of Lease dated as of December 4, 1997 from Guarantor to Landlord (the “Original
Guaranty”) (1) the performance by Tenant of all of the terms, covenants, conditions,
obligations and agreements contained in the Lease on the part of Tenant to be performed thereunder,
including, without limitation, the prompt payment when due of all Fixed Rent, Additional Rent, and
all other sums required to be paid by Tenant under the Lease subject only to the limitation on
liability set forth in paragraph 1(b) below, and (2) any liability of Tenant arising out of a
breach of any warranty or representation of Tenant contained in the Surrender Agreement (as
hereinafter defined) (the liabilities and obligations contained in clauses (1) and (2) of this
recital are collectively referred to herein as the “Covenants”);
WHEREAS, Guarantor and Landlord desire to modify the Original Guaranty; and
WHEREAS, from and after the date hereof the Original Guaranty is restated in its entirety as
herein provided;
NOW, THEREFORE, Guarantor agrees with Landlord as follows:
1. (a) Guarantor unconditionally guarantees to Landlord the prompt, full and faithful
payment, performance and observance of all Covenants; and Guarantor unconditionally covenants to
Landlord that if default or breach shall at any time be made by Tenant in the Covenants, Guarantor
shall well and truly payor perform (or cause to be paid or performed) the
Covenants and pay all damages and other amounts stipulated in the Lease with respect to the
non-performance of the Covenants, or any of them. Guarantor shall pay to Landlord on demand all
expenses (including, without limitation, reasonable attorneys’ fees and disbursements) of, or
incidental to, or relating to the enforcement or protection of Landlord’s rights hereunder or
Landlord’s rights under the Lease.
(b) Notwithstanding Section 1(a) above, Guarantor’s liability under this Guaranty
shall not exceed the lesser of (a) the sum of (i) ***** (ii) an amount equal to all Rent and
Additional Rent payable under the Lease for the period commencing on (x) the date on which Tenant
defaults in the payment of Rent due under the Lease or on any of the other Covenants which default
on Tenant’s part remains uncured following the giving of any required notice (except that no such
notice shall be required to the extent Landlord is stayed from giving such notice by the applicable
provisions of the Bankruptcy Code) and the expiration of any applicable grace period so as to
become an Event of Default under the Lease (provided, however, that if Tenant cures such Event of
Default and Landlord accepts such cure, such default shall no longer be deemed to have become an
Event of Default for purposes hereof) and ending on (y) the Surrender Date (as hereafter defined)
assuming, for purposes of this computation only, that Landlord did not elect to terminate the Lease
by reason of such Event of Default, and (iii) all expenses (including reasonable attorneys’ fees
and disbursements) of, or incidental to, or relating to the enforcement or protection of Landlord’s
rights hereunder or (b) the proceeds of a Letter of Credit or cash security posted by Guarantor
pursuant to paragraph 2 below.
2. (a) Guarantor covenants and agrees that for the Term of the Lease it shall maintain a Net
Worth of not less than ***** and that Guarantor shall deliver or cause to be delivered to Landlord,
as soon as available and in no event later than 90 days after the close of each calendar year
during the Term, annual financial statements for Guarantor prepared in accordance with generally
accepted accounting principles, which shall be certified by an officer of the general partner of
Guarantor and audited by an independent accounting firm which shall be any one of the so-called
“Big Four” accounting firms or any other accounting firm reasonably acceptable to Landlord;
provided, however, that the only effect of the breach of such covenants shall be that such breach
shall constitute an Event of Default under the Lease. Landlord shall have all of its rights
against Guarantor by reason of the occurrence of an Event of Default under the Lease, but shall
have no independent right of action against Guarantor by reason of the breach of the foregoing
covenant.
(b) Notwithstanding anything in Section 2(a) to the contrary, if as the close of any of
Guarantor’s fiscal quarters during the term of the Lease, Guarantor’s Net Worth shall fail to meet
the requirement set forth in Section 2(a) above (the “Failure”), then within 10 days after
the financial statement for such quarter was completed, Guarantor shall notify Landlord of the
Failure and within 30 days thereafter, Guarantor shall have the right, at Guarantor’s election,
either to deposit with Landlord, in lieu of this Guaranty, (1) a “clean”, unconditional,
irrevocable and transferable letter of credit (the “Letter of Credit”) in the amount of
*****, and in form reasonably satisfactory to Landlord, issued by and drawn on a bank reasonably
satisfactory to Landlord in its sole discretion or which is a member of the New York Clearing House
Association, for the benefit of Landlord, for a term of not less than one year, as security for the
faithful performance and observance by Tenant of the terms, covenants, conditions and provisions of
the Lease; provided that the Letter of Credit shall contain, if commercially obtainable, an
“evergreen” provision, providing that the term of such letter of credit shall automatically be
extended for successive additional periods of one year but not beyond 45 days after the then
Expiration Date unless, not less than 30 days prior to any then pending
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Expiration Date, the bank issuing such Letter of Credit shall give Landlord written notice of
its election not to renew the Letter of Credit at the address provided for in the Lease, and if
Guarantor shall not provide a replacement Letter of Credit within 10 days after such notice from
the issuing bank, in which event Landlord shall have the right to draw under the Letter of Credit
and to retain the proceeds as hereinafter provided or, if such “evergreen provision” is not
commercially obtainable, the Letter of Credit shall provide by its terms that it shall not expire
prior to 45 days after the then Expiration Date, or (2) cash in the amount of ***** which Landlord
shall deposit in a standard interest-bearing security deposit account in a bank located in New York
State, provided that if Guarantor’s Net Worth is less than *****, Tenant shall only have the right
to deposit with Landlord a Letter of Credit in the amount of ***** hereunder. To the extent not
prohibited by law, Landlord shall be entitled to receive and retain as an administrative expense an
amount equal to interest on the cash security at the rate of 0.1% per annum, which amount Landlord
shall have the right to withdraw, at any time and from time to time, as Landlord may determine.
The balance of the interest shall be paid to Guarantor annually. Landlord shall not be required to
credit Guarantor with any interest for any period during which Landlord does not actually receive
interest on the cash security. If an Event of Default or, during the pendency of any bankruptcy or
insolvency proceeding brought by or against Tenant, any monetary default shall occur and be
continuing, Landlord may apply the cash security or draw under the Letter of Credit and apply the
whole or any part of the proceeds thereof toward the payment of any item of rent or additional rent
as to which Tenant is in default. If Tenant shall fully and faithfully comply with all of the
terms, provisions, covenants and conditions of the Lease, the cash security or the Letter of
Credit, as the case may be, shall be returned to
Guarantor within 45 days after the expiration of
the Lease. If Guarantor shall fail to replace a Letter of Credit that the issuing bank is not
renewing as aforesaid, Landlord may draw under the Letter of Credit and retain the proceeds thereof
as cash security in lieu of the Letter of Credit and apply same as contemplated by this Section 2.
It is expressly understood and agreed that the breach of the covenant set forth in Section 2(a)
hereof shall not be deemed an Event of Default under the Lease unless Guarantor shall have failed
to deliver the cash security or Letter of Credit to Landlord within the time period set forth
herein. Upon delivery of the cash security or Letter of Credit, this Guaranty shall be without
recourse to Guarantor other than against the Letter of Credit and/or cash delivered under this
Section 2.
3. The liability of Guarantor hereunder shall not be impaired, abated, deferred, diminished,
modified, released, terminated or discharged, in whole or in part, or otherwise affected, by any
event, condition, occurrence, circumstance, proceeding, action or failure to act, with or without
notice to, or the knowledge or consent of, Guarantor, including, without limitation:
(a) any amendment, modification or extension of the Lease or any Covenant;
(b) any extension of time for performance, whether in whole or in part, of any Covenant given
prior to or after default thereunder;
(c) any exchange, surrender or release, in whole or in part, of any security which may be held
by Landlord at any time for or under the Lease;
(d) any other guaranty now or hereafter executed by Guarantor or anyone else;
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(e) any waiver of or assertion or enforcement or failure or refusal to assert or enforce, in
whole or in part, any Covenant, claim, cause of action, right or remedy which Landlord may, at any
time, have under the Lease or with respect to any guaranty or any security which may be held by
Landlord at any time for or under the Lease or with respect to Tenant;
(f) any act or omission or delay to do any act by Landlord which may in any manner or to any
extent vary the risk of Guarantor or which would otherwise operate as a discharge of Guarantor as a
matter of law;
(g) the release of any other guarantor from liability for the performance or observance of any
Covenant, whether by operation of law or otherwise;
(h) the failure to give Guarantor any notice whatsoever except to the extent required by the
Lease;
(i) any right, power or privilege that Landlord may now or hereafter have against any person,
entity or collateral;
(j) any assignment conveyance, mortgage, merger or other transfer, voluntary or involuntary
(whether by operation of law or otherwise) of all or part of the interest or rights of Landlord
under the Lease.
(k) any assignment, conveyance, mortgage, merger or other transfer, voluntary or involuntary
(whether by operation of law or otherwise), of all or any part of Tenant’s interest in the Lease
except to the extent expressly provided in the Lease.
If any agreement between Landlord and Tenant shall extend the time of performance or modify
any of the Covenants, Guarantor shall continue to be liable upon this Guaranty according to the
tenor of the Lease without regard to such agreement except to the extent Guarantor shall consent in
writing to such agreement.
4. To charge Guarantor under this Guaranty no demand shall be required, Guarantor hereby
expressly waiving any such demand. Landlord shall have the right to enforce this Guaranty without
pursuing any right or remedy of Landlord against Tenant or any other party, or any security
Landlord may hold, it being intended that immediately upon any breach or default by Tenant in the
performance or observance of any Covenant, Guarantor shall be obligated to Landlord as provided in
this Guaranty. Landlord may commence any action or proceeding based upon this Guaranty directly
against Guarantor without making Tenant or anyone else a party defendant in such action or
proceeding. Any one or more successive and/or concurrent actions may be brought hereon against
Guarantor either in the same action, if any, brought against Tenant and/or any other party or in
separate actions, as often as Landlord, in its sole discretion, may deem advisable.
5. This Guaranty shall be binding upon Guarantor and its successors and permitted assigns, and
shall inure to the benefit of and may be enforced by the successors and assigns of Landlord or by
any party to whom Landlord’s interest in the Lease or any part thereof, including the rents, may be
assigned whether by way of mortgage or otherwise. Wherever in this Guaranty reference is made to
either Landlord or Tenant, the same shall be deemed to refer also to the then successor or assign
of Landlord or Tenant.
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6. Guarantor hereby expressly waives and releases (a) notice of the acceptance of this
Guaranty and notice of any change in Tenants financial condition; (b) the right to interpose any
substantive or procedural defense of the law of guaranty, indemnification or suretyship, except the
defense of prior payment or prior performance by Tenant or that Tenant has no obligation to pay or
perform (of the obligations which Guarantor is called upon to pay or perform under this Guaranty);
(c) all rights and remedies accorded by applicable law to guarantors or sureties, including without
limitation, any extension of time conferred by any law now or hereafter in effect; (d) the right to
trial by jury, in any action or proceeding of any kind arising on, under, out of, or by reason of
or relating, in any way, to this Guaranty or the interpretation, breach or enforcement thereof; (e)
the right to interpose any defense (except as allowed under (b) above), set off or counterclaim of
any nature or description in any action or proceeding; and (f) any right or claim of right to cause
a marshaling of Tenant’s assets or to cause Landlord to proceed against Tenant and/or any
collateral held by Landlord at any time or in any particular order (except as expressly provided in
Section 3 hereof).
7. Neither Guarantor’s obligation to make payment in accordance with this Guaranty nor any
remedy for the enforcement thereof shall be impaired, modified, changed, stayed, released or
limited in any manner by any impairment, modification, change, release, limitation or stay of the
liability of Tenant or its estate in bankruptcy or any remedy for the enforcement thereof,
resulting from the operation of any present or future provision of the Bankruptcy Code of the
United States or other statute or from the decision of any court interpreting any of the same, and
Guarantor shall be obligated under this Guaranty as if no such impairment, stay, modification,
change, release or limitation had occurred.
8. As used herein, the term “Surrender Date” shall mean the date upon which all of the
following shall have occurred: (i) Tenant shall have surrendered to Landlord vacant possession of
the Premises in the condition required under the terms of the Lease, (ii) Landlord shall have
received a surrender agreement in the form annexed as Exhibit A (the “Surrender
Agreement”) duly executed and acknowledged by Tenant and (iii) Landlord shall have received all
keys and combinations to the Premises.
9. This Guaranty and all rights, obligations and liabilities arising hereunder shall be
construed according to the laws of the State of New York. Guarantor hereby irrevocably agrees that
any legal action, suit or proceeding against Guarantor in connection with this Guaranty or for
recognition or enforcement of any judgment rendered in any such action, suit or proceeding may be
brought in the United States Courts for the Southern District of New York, or in the courts of the
State of New York, as Landlord may elect, and, by execution and delivery of this Lease, Guarantor
hereby irrevocably accepts and submits to the venue and non-exclusive jurisdiction of each of the
aforesaid courts in persona, generally and unconditionally with respect to any such
action, suit, or proceeding for itself and in respect of its property. Guarantor further agrees
that final judgment against Guarantor in any action, suit, or proceeding referred to herein shall
be conclusive and may be enforced in any other jurisdiction, by suit on the judgment, a certified
or exemplified copy of which shall be conclusive evidence of the fact and of the amount of its
indebtedness. Guarantor hereby designates Proskauer Xxxx Xxxxx & Xxxxxxxxx as its agent for
service of process. Such designation may only be changed by written notice to Landlord designating
another law firm having more than 100 lawyers with an office in New York City.
10. Guarantor hereby waives any and all rights of subrogation (if any) which it may have
against Tenant as a result of actions taken or amounts paid in connection with or relating to this
Guaranty or to the Lease.
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11. Guarantor represents and warrants to Landlord that as of the date hereof:
(a) Guarantor has full power, authority and legal right to execute, deliver, perform and
observe this Guaranty, including, without limitation, the payment of all moneys hereunder.
(b) The execution, delivery and performance by Guarantor of this Guaranty have been duly
authorized by all necessary partnership action.
(c) This Guaranty constitutes the legal, valid and binding obligation of Guarantor,
enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, and other laws affecting creditors’ rights generally, to moratorium laws from time
to time in effect and to general principles of equity (regardless of whether enforceability is
considered in a proceeding in equity or at law).
12. Guarantor shall not merge or consolidate with any other entity or sell all or
substantially all of its assets unless either (a) Guarantor shall be the surviving entity or (b)
contemporaneously with such merger or consolidation or sale, the surviving or purchasing entity
executes and delivers to Landlord a guaranty, substantially in the form and substance of this
Guaranty, together with reasonably satisfactory evidence of the due authorization, execution,
delivery, validity, binding effect and enforceability thereof, but whether or not such execution
and delivery shall take place the surviving or purchasing entity shall be bound by this Guaranty as
if it had so executed and delivered such guaranty.
13. If Landlord shall be obligated by reason of any bankruptcy, insolvency or other legal
proceeding to payor repay to Tenant or to Guarantor or to any trustee, receiver or other
representative of either of them, any amounts previously paid by Tenant or Guarantor on account of
the Covenants or pursuant to this Guaranty, Guarantor shall reimburse Landlord for any such payment
or repayment and this Guaranty shall extend to the extent of such payment or repayment made by
Landlord, except to the extent, if any, that such payment or repayment is prohibited by law or that
such payment or repayment constitutes merely a reimbursement of any overpayment. Landlord shall
not be required to litigate or otherwise dispute its obligation or make such payment or repayment
if in good faith and on written advice of counsel Landlord believes that such obligation exists.
14. Landlord and Guarantor shall each, at any time and from time to time, within ten (10)
business days following request by the other, execute, acknowledge and deliver to the other a
statement certifying that this Guaranty is unmodified and in full force and effect (or if there
have been modifications, that the same is in full force and effect as modified and stating such
modifications) and that to the best of the certifying party’s knowledge, Guarantor is not in
default hereunder (or if there is such a default, describing such default in reasonable detail).
15. All remedies afforded to Landlord by reason of this Guaranty or the Lease, or otherwise
available at law or in equity, are separate and cumulative remedies and no one remedy, whether or
not exercised by Landlord, shall be deemed to be in exclusion of any other remedy available to
Landlord and shall not limit or prejudice any other legal or equitable remedy which Landlord may
have.
16. If any term, covenant, condition or provision of this Guaranty or the application thereof
to any circumstance or to Guarantor shall be invalid or unenforceable to any extent, the remaining
terms, covenants, conditions and provisions of this Guaranty or the
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application thereof to any circumstances or to Guarantor other than those as to which any
term, covenant, condition or provision is held invalid or unenforceable, shall not be affected
thereby and each remaining term, covenant, condition and provision of this Guaranty shall be valid
and shall be enforceable to the fullest extent permitted by law.
17. Any notice hereunder shall be in writing and personally delivered or sent by certified or
registered mail, return receipt requested to Landlord or Guarantor at their respective addresses
hereinabove set forth (to the attention of their respective General Counsel) or such other address
designated by Landlord or Guarantor by 10 days prior notice. Any notice shall be deemed given as
of the date of delivery as indicated by affidavit in case of personal delivery or by the return
receipt in the case of mailing; and in the event of failure to deliver by reason of changed address
of which no notice is given or refusal to accept delivery, as of the date of such failure as
indicated by affidavit or return receipt as aforesaid.
18. Each reference to the Guaranty in the Lease shall be deemed to mean and refer to the
Original Guaranty as restated hereby.
IN WITNESS WHEREOF, Guarantor has executed this Restated Guaranty of Lease as of the day and
year first above written.
| MADISON SQUARE GARDEN, L.P. | ||||
| By: | /s/ Xxxxxxx Treat | |||
| Name: | Xxxxxxx Treat | |||
| Title: | Executive Vice President | |||
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