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I think we should dig deeper into the past insider sott (aka Sitting on the toilet), with all those things about toilet and pee, this really reminds me that this so called insider was a real one, because he sure did chose the right name!
Promissory NotePromissory Note is made in the name of both Michael Jackson’s Company and Michael Jackson the individual (which is very rare case for this contract) who jointly form an entity called “Maker” who promises by this promissory note to do as follows:“to pay on a joint and several basis, to AEG Live (“Holder” or “Promoter”) .. the principal amount of of $6,2 mln. with interest on such amount until paid…”In addition to the Inducement Letter this document is the second AEG’s primary condition for Michael Jackson to receive his Initial Advance.All artists are entitled to an advance – it is similar to advance money a writer receives from his publisher before he presents the text to him and a request for an advance is an absolutely common thing to do. It is not supposed to be returned in case the undertaken project is realized and can be recouped by the other side if the project fails.In Michael Jackson’s case the advance is $6,2 mln. and on the face of it the terms of its provision are quite favorable – there will be no interest on the sum until the Maturity date, and the Maturity date can be prolonged by both sides, and it is only the Maturity date itself which is stated in such in vague and complex way that it needs a whole investigation to find out what it actually is.The importance of the Maturity date is overwhelming. It is the time when the advance given to the Artist will have to be paid back in full as the Promissory Note puts it:Principal shall be due and payable in full on the Maturity Date”.The Note says that one of the variants of the Maturity Date (there are variants there due to the usual “whichever is the earlier” speculation) is 6 months after the Promoter makes a written request for such payment. The Note further refers us to certain conditions stated in 4.2.5 of their Agreement. Agreement is of course too grand a way to call this cut and paste job, but let us put up with it for the sake of convenience.The conditions stated in 4.2.5 say that Promoter will have the right to recoup all Artist Advances if by March 1, 2009 the Artist’s company a) does not obtain a cancellation (medical) insurance, b) does not name AEG as the loss payee, and c) the Promoter is unable to obtain cancellation insurance to cover the risk of loss of their expenses.Mind you that in AEG’s twisted terminology their own expenses are called “pool” expenses which for all other people would mean joint expenses. However AEG does its business in such a way that you never know what their terminology is and all their terms require constant checking and rechecking.For example, you can learn the true meaning of some definitions only from some God-forsaken attachment (I mean Exhibit A) with no signature or date on it, which is so frivolous a document that it enables them to write there whatever they like and attach it to the contract at any (later) time, thus changing the whole meaning of the basic text of the contract.So if Pool expenses are the Promoter’s expenses only, it will be unclear why the Artist is to pay back his advances if the Promoter doesn’t receive an insurance covering the Promoter’s expenses only. But if Pool expenses are understood in the general meaning of the word (as joint expenses) this point becomes clear and understandable – if the parties are unable to get an insurance policy to cover their joint losses it might be risky to get into the deal and this can put a stop to their initial plans. And if the plans are off it is natural to ask the Artist to return the advances received. AEG wanted to create the impression of such a natural situation though the real meaning of this point is different.The idea of a possible cancellation also lies behind the medical insurance to be obtained by the Artist – if he is not fit for the performances, the deal will be cancelled and the Artist will have to return the advance. This will have to be done within 6 months from the moment AEG asks for it – therefore if the insurance is not obtained by March 1, payment of the advance will be due on September 1.But wait – what if the Artist passes the physical examination later than March 1, 2009? Michael did pass the physical examination in March 2009 (with flying colors), but the medical insurance was obtained from Lloyds only on April 24 (at least this is the date they state as the beginning of the insurance term). Though this difference in the time of obtaining an insurance is a formal thing it is still a deviation from the agreement, but it was apparently settled amicably between the parties as we haven’t heard of any reprisals on AEG’s part.But what if Michael hadn’t passed the physical at all?Then he would have had to return the advance of $6,2 mln.Could it have been a problem for him?You think it couldn’t – if he was prudent enough to keep the money under the carpet until after the medical examination was passed, correct?But if you think that way it will be a big and grave mistake on your part.The thing is that AEG gave the Initial Advance to the Artist not for his free use but on several harsh conditions. The two major demands on how the Artist was to use the $6,2 mln. advance were:1. to immediately transfer $3 mln. to 2 Seas Records company2. to set aside $1,2 mln. for renting a house evidently found for Michael either by Tohme or AEG and at the monthly fee of $100,000 too. Extra precaution was made for the Artist not to get cash in the latter case – AEG was opening a Letter of Credit for the sum of $1,2 mln. which means that the whole sum was to be kept in the bank, from which the money was to be remitted to the owner of the house on a monthly basis.Not going now into detail as to whether AEG had the right to set all those conditions on the Artist or not (I think they didn’t), let us calculate how much remained with the Artist after all those deductions were made. And if we deduct $3 mln. to Sea Records and $1,2 mln for the house the Artist will be left with $2 mln. only.Possible consequencesAnd now let us assume that he didn’t pass his physical test after all those sums had been forcefully taken away from him and he had already rented a house and made some payments for it. Or let us imagine even a more ridiculous situation that AEG did not obtain an insurance for covering the loss of its so-called “pool” expenses (which was a thing wholly dependent on AEG and AEG alone!).In the event of the above AEG could demand the $6,2 mln. back and if the Artist didn’t repay the sum within a short period of time they could impose heavy sanctions on him. However we know that the Artist was forced to spend two thirds of the sum and all he had was $2mln. left!I have heard of situations when a lender first makes their borrower spend his money and then “creates a situation” requiring immediate repayment and applies severe sanctions since he can’t pay. Frankly, it even reminds me of those criminal dealers who first give a loan to a shop owner who wants to buy some goods and then burn his shop so that he spends all the money on its renovation, and when he is unable to repay the loan they take away his house because it was used as collateral for this loan.What is clear is that if, for some reason, the Artist didn’t repay his advance back (within 6 months from AEG’s written request) the sanctions imposed on him by AEG were to be very severe. Let us run back to the Promissory Note and see what these sanctions were like.SanctionsThe first thing we discover in the Promissory Note is that in case of default in payment it is naturally the FULL sum of the Advance which was to be paid back to the Promoter, though they themselves know perfectly well that they forced him to give away two thirds of the sum.Another thing we suddenly see is that the follow-up clauses of the Promissory Note suddenly mention some monthly installments. The Promissory Note is vague as to when the first installment is to be made, what the schedule of installment payments is and what sum each installment amounts to (what if AEG wanted him to pay a million a month which would be impossible to make?).These monthly installments were accidentally found by us in the least likely place (called “prepayment”) and as I say were not accompanied by any schedule, amounts to be paid or a clear date of starting payments. These kind of things are totally unacceptable in contracts as nothing should be left to guesswork there – vague points like that are room for interpreting it in a highly frivolous way.And judging by the Promissory Note these monthly installments are no joke.If at least one of them is delayed by more than 5 business days a so-called Event of Default is to take effect, and as a result of this Event of Default the Promoter had the right to demand the full sum of the advance to be paid all at once!The logic here is as follows – if you can’t pay the first installment (say a million) and delay payment by 5 days we penalize you by the need to pay the full $6,2 mln and immediately too. Oh, we see that you wanted to pay in portions? Or you ask for a short delay because there is a point in the Promissory Note saying that “the parties may extend the Maturity Date by signing a written modification of this Note”?No way, dear artist, AEG’s position will be relentless here.A certain point in the Note called “No Waiver by Holder” says that the need to “totally repay” (or pay the full sum) will take place even if the installment is made, but made with a delay:“the acceptance by Holder [AEG] of any payment under this Note after the date such payment is due… shall not constitute… the right to declare an Event of Default [or is no reason not to demand full payment at once]. The acceptance by Holder of a payment of a portion of any installment shall not cure or excuse the default”. [same - the demand to pay the full sum immediately will still be there]And what will happen if the Artist is unable to pay the full sum of $6,2 mln. immediately upon AEG’s demand?A disaster will happen in this case. AEG will receive full rights to the Collateral.Collateral as the ultimate goal
LMAO, I don't believe a word of it. And what's up with all that urine? MJ peed in a cup, MJ wet his bed, MJ had 500ml of pee in his bladder according to the AR, cup of urine found at the scene... To much piss here! MJ pissed (off)? /pull hair/
This article is literally all the juicy tabloidy bits from the documentary so it doesn't surprise me that TMZ is covering it! lol
