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Advisory Services Agreement

 

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Title:

Advisory Services Agreement

Entities:

On Stage Entertainment Inc; On Stage Entertainment, I; Venable LLP

Date:

2001

Size:

Preview shows 4KB of 17KB total

Price:

$39

ID:

#1515628

 

 

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<SEQUENCE>6

<FILENAME>0006.txt
<DESCRIPTION>ADVISORY SERVICES AGREEMENT
<TEXT>

ADVISORY SERVICES AGREEMENT


THIS ADVISORY SERVICES AGREEMENT (this "Agreement") is entered into as of
March 13, 2001, by and between ON STAGE ENTERTAINMENT, INC., a Nevada
corporation (the "Company"), and MDC MANAGEMENT COMPANY IV, L.P., a California
limited partnership ("MDC").

A. Contemporaneously with this Agreement, certain affiliates of MDC, will
acquire certain shares of the capital stock of the Company; and

B. The investment in the Company by certain affiliates of MDC is subject to
the execution and delivery of this Agreement;

NOW, THEREFORE, in consideration of the mutual promises of the parties
hereinafter set forth, MDC and the Company hereby agree as follows:

1. Retention as Advisor. Subject to each of the terms, conditions and
provisions of this Agreement, the Company hereby retains MDC to perform, and MDC
hereby agrees to perform, those financial, advisory and managerial functions set
forth in Section 4 of this Agreement.

2. Term.

2.1 Subject to the provisions for termination set forth herein, this
Agreement shall be effective as of the date hereof and expire on the fifth
anniversary of the date hereof; provided, however, that this Agreement shall be
renewable automatically annually for additional one-year terms unless MDC
receives a notice of termination from the Company prior to the renewal date.

2.2 The Company, by written notice to MDC, authorized by a majority of the
directors other than those who are representatives of MDC, may terminate this
Agreement for justifiable cause, which shall mean any of the following events:
(i) material breach by MDC of any of its obligations hereunder; (ii)
misappropriation by MDC of funds or property of the Company or other willful
breach in the course of the consultantcy; or (iii) gross neglect by MDC in the
fulfillment of its obligations hereunder.

2.3 MDC, by thirty (30) days prior written notice to the Company, may
terminate this Agreement at any time.

3. Compensation.

3.1 As compensation to MDC for its management and advisory services to the
Company under this Agreement, the Company agrees to (i) pay MDC a fee of two
hundred fifty thousand dollars ($250,000) for services rendered hereunder
through March 30, 2002, such fee to be paid in advance in four (4) equal
installments on or before the fifth day of April, 2001, July, 2001, October,


1
<PAGE>

2001 and January, 2002 and (ii) thereafter, pay MDC a fee for each fiscal
quarter of service hereunder equal to the greater of (x) sixty-two thousand five
hundred dollars ($62,500) or (y) one-fourth of one percent (0.25%) of the
Company's gross revenues reported for the four (4) most recent fiscal quarters
then ended, such sum to be paid on or before the fifth day of January, April,
July and October of each year, as applicable. In no event shall the fee to be
paid to MDC pursuant to this Section 3.1 exceed ninety-five thousand dollars for
any one fiscal quarter.

3.2 From time to time, the Company may request MDC to provide significant
additional services, such as in connection with a major acquisition or debt
restructuring. MDC will be entitled to receive additional compensation for such
services, which will be governed by a separate written agreement, negotiated and
signed by both parties. The Company and MDC agree to negotiate in good faith
concerning the scope and compensation for such additional services, based upon

 

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