Document:

EX10_1

		
			EXHIBIT 10.1
		

		
			 
		

		
			AMENDMENT TO MANAGEMENT AGREEMENT
		

		
			 
		

		
			THIS AMENDMENT TO MANAGEMENT AGREEMENT (this “Amendment”) is made and entered into as of March 16, 2015 by and among HPT TRS IHG-2, INC., a Maryland corporation (successor by merger to HPT TRS IHG-1, Inc. and HPT TRS IHG-3, Inc., “Owner”), and INTERCONTINENTAL HOTELS GROUP RESOURCES, INC. (“Resources”), a Delaware corporation, IHG MANAGEMENT (MARYLAND) LLC (“Maryland”), a Maryland limited liability company, and INTERCONTINENTAL HOTELS GROUP (CANADA), INC. (“Canada”), a corporation under the laws of Ontario, Canada (Resources, Maryland and Canada, collectively, “Manager”).
		

		
			 
		

		
			W I T N E S S E T H
		

		
			 
		

		
			WHEREAS, Owner and Manager are parties to that certain Management Agreement, dated as of July 1, 2011 (the “Management Agreement”), pursuant to which Manager manages and operates the Hotels as described therein; and
		

		
			 
		

		
			WHEREAS, Owner and Manager intend to subject additional hotels to the terms of the Management Agreement going forward; and
		

		
			 
		

		
			WHEREAS, Owner and Manager desire to amend certain terms of the Management Agreement with respect to such additional hotels;
		

		
			 
		

		
			NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Owner and Manager, intending to be legally bound, hereby agree, effective from and after the date hereof, as follows:
		

		
			 
		

			
	
			
				 1.
			Capitalized Terms.  Capitalized terms used in this Amendment and not otherwise defined herein shall have the meanings given such terms in the Management Agreement.  

		
			 
		

			
	
			
				 2.
			Base Management Fee.  The definition of “Base Management Fee” is amended to read: “shall mean an amount equal to two percent (2%) of Gross Revenues per annum with respect to the Pool A Hotels and an amount equal to three percent (3%) of Gross Revenues per annum with respect to the Pool B Hotels”.  

		
			 
		

			
	
			
				 3.
			Effective Date.  The definition of “Effective Date” is amended to read: “shall mean July 1, 2011 with respect to the Pool A Hotels and the effective date set forth in the applicable Site Designation Supplement with respect to any Pool B Hotel”.  

		
			 
		

			
	
			
				 4.
			Net Disbursement Cash.  The definition of “Net Disbursement Cash” is amended to read: “shall mean the cash remaining for application under Section 10.1(a) after deducting the amounts required under Clause 10.1(a)(1) – Operating Costs and 10.1(a)(2) – Reserve Account”.

		
			 
		

		 

 

			
	
			
				 5.
			Owner’s Residual Distribution.  The definition of “Owner’s Residual Distribution” is amended to read:  “shall mean the distribution to Owner provided for in Sections 10.1(a)(6) and (b)(6)”.

		
			 
		

			
	
			
				 6.
			Owners First Priority.  The following is added to the defined term “Owner’s First Priority” as an additional sentence:  “Owner’s First Priority shall not reflect or be adjusted pursuant to any provisions of this Agreement on account of any amount representing Owner’s Pool B Base Priority or other amounts advanced by Owner in connection with or related to a Pool B Hotel.  Instead of any adjustment to Owner’s First Priority, Owner’s Pool B Priority shall be based on the Owner’s Pool B Base Priority and adjusted by such amounts.”  

		
			 
		

			
	
			
				 7.
			Owner’s Pool B Priority.  The following definition is added to Article 1: “Owner’s Pool B Priority” shall mean an agrgregate amount equal to the sum of (a) that certain percentage of the aggregate sum of all amounts expended by Owner or Landlord or any of their affiliates in connection with its acquisition of any Pool B Hotel, as such percentage (the “Pool B Hotel Percentage”) and amount is confirmed by Owner and Manager for each Pool B Hotel in the applicable Site Designation Supplement for such Pool B Hotel (collectively, the “Owner’s Pool B Base Priority”), plus (b) the applicable Pool B Hotel Percentage of (i) any amounts advanced by Owner with respect to any Pool B Hotel which would increase Owner’s First Priority if advanced in respect of a Pool A Hotel, and (ii) any amounts advanced for Pool B Approved Renovations for any Pool B Hotel, and subject to further adjustment as provided in Sections 2.6(e), 3.1, 15.1(c), 15.2 and 16.1 if Owner’s First Priority would have been adjusted thereunder with respect to a Pool A Hotel.    

		
			 
		

			
	
			
				 8.
			Pool A Hotels.  The following definition is added to Article 1: “Pool A Hotels” shall mean those Hotels subject to this Agreement as of February 1, 2015, which Hotels include all of the Hotels located on the Sites listed on Exhibit A of this Agreement other than those Hotels located on the Sites listed on Exhibit A-1 of this Agreement.

		
			 
		

			
	
			
				 9.
			Pool B Hotels.  The following definition is added to Article 1: “Pool B Hotels” shall mean those Hotels made subject to this Agreement subsequent to February 1, 2015 pursuant to a Site Designation Supplement with respect thereto.

		
			 
		

			
	
			
				 10.
			Reserve Percentage.  The defined term “Reserve Percentage” is amended to read: “shall mean, with respect to Pool A Hotels, 0% for the Fiscal Years 2011, 2012, and 2013, 3% for the Fiscal Year 2014, 4% for the Fiscal Year 2015 and 5% for each Fiscal Year during the Term thereafter and, with respect to each Pool B Hotel, 5% for each Fiscal Year during the Term (except as otherwise expressly set forth in the Site Designation Supplement for such Hotel).”

		
			 
		

			
	
			
				 11.
			Site Designation Supplement.  The following definition is added to Article 1: “Site Designation Supplement” shall mean, as to any Site, a supplement to this Agreement completed and executed by Owner and Manager, in the form of Exhibit C attached hereto, pursuant to which such Site is made subject to this Agreement.

		
			 
		

			
	
			
				 12.
			Sites.  The defined term “Sites” is amended to read: “shall mean the real estate more particularly described on Exhibit A, together with any real estate now or hereafter subject 
		

		 

		

			-  2  -

		

 

			to this Agreement pursuant to a Site Designation Supplement and further described on Schedule 1 thereto.” 

		
			 
		

			
	
			
				 13.
			Condition of Pool B Hotels.  Manager confirms that it has had, or by its execution and delivery of the applicable Site Designation Supplement will have had, sufficient opportunity to evaluate the condition of each Pool B Hotel and will accept delivery and possession of each Pool B Hotel on the applicable Effective Date in its then “as is” condition, and otherwise in accordance with the terms and provisions of Section 2.5 of the Management Agreement.  Nothing in the foregoing sentence or in Section 2.5 of the Management Agreement, however, shall affect Owner’s obligations with respect to any Pool B Approved Renovations. 

		
			 
		

			
	
			
				 14.
			No Designation of Pool B Hotel as a Non-Economic Hotel.  Neither Owner nor Manager shall have any right to designate any Pool B Hotel as a Non-Economic Hotel in accordance with the terms and provisions of Section 2.6(e) of the Management Agreement before the date which is five (5) years following the applicable Effective Date for such Hotel.  

		
			 
		

			
	
			
				 15.
			Refurbishment Fund for Pool B Hotels.  Between the Effective Date for any applicable Pool B Hotel and the date which is set forth on the applicable Site Designation Supplement as the “Approved Renovation Funding Expiration Date” for such Hotel, Owner agrees to supplement the Reserve Account with the amounts that Owner and Manager shall set forth for Capital Replacements, if any, in the Site Designation Supplement for such Hotel (the “Pool B Hotel Approved Renovations”) for such Hotel or, if available at such time, the agreed upon Pool B Hotel Scope and Estimate (as defined herein) for such Hotel.  If not included in the Site Designation Supplement, within six (6) months following the Effective Date of each applicable Pool B Hotel, Manager shall develop, for Owner’s approval, a scope of work and cost estimate for the Pool B Hotel Approved Renovations for such Hotel (the “Pool B Hotel Scope and Estimate”).  The cost estimate set forth in the Pool B Hotel Scope and Estimate for each applicable Pool B Hotel shall not exceed the amounts set forth for Capital Replacements in the Site Designation Supplement for such Hotel, unless otherwise approved or agreed to by Owner.  Owner and Manager shall cooperate with each other to resolve any objections that Owner may have to any such proposed Pool B Hotel Scope and Estimate.  After Owner and Manager have agreed to a Pool B Hotel Scope and Estimate for a Pool B Hotel, Owner shall, within ten (10) business days of Manager’s request (but not more than once per calendar month), fund the amounts reflected in the applicable Pool B Hotel Scope and Estimate, in partial or complete draws as Manager reasonably requests.  Manager agrees not to request any such funds more than thirty (30) days in advance of needing the same.  Manager shall separately account for all such deposits for Pool B Hotel Approved Renovations.  Manager shall review and approve for payment third party invoices and, subject to receipt of lien waivers, together with such other documentation as Owner may reasonably request, withdraw such amounts from the Reserve as are required to pay approved invoices.  Owner shall have no liability for, and Manager shall not pay, any costs of any Pool B Hotel Approved Renovations in excess of those set forth in the applicable Site Designation Supplement and/or Pool B Hotel Scope and Estimate unless otherwise expressly approved by Owner.  Owner and Manager shall meet not less than once per month (which meeting may take place by conference telephone call or other similar electronic means) to review all applicable Pool B Hotel Scope and Estimates with respect to any Pool B Hotel Approved Renovations then in progress and any updates or revisions thereto and the status 
		

		 

		

			-  3  -

		

 

			of each such project.  Subject to the other terms and provisions of this paragraph, Manager may elect upon notice to Owner to fund the Reserve Account from time to time for such purposes on an interim basis, and Owner shall reimburse Manager for any such fundings by Manager within thirty (30) days after receipt of invoices from Manager detailing such fundings by Manager.  Owner shall have the right to review and approve any material updates or revisions to any Pool B Hotel Scope and Estimate prior to funding any additional amounts into the Reserve Account resulting from such updates or revisions.  Manager shall select, engage, control and supervise the work of the contractors and agents involved in performing the work of the Pool B Approved Renovations even though Owner and Manager shall both be parties to the contracts with such contractors and agents.  With respect to all actions or matters requiring the review and approval of Owner under this paragraph, if Owner does not approve or disapprove any such actions or matters within ten (10) business days of submittal by Manager, the actions or matters shall be deemed approved.

		
			 
		

			
	
			
				 16.
			Initial Yearly Budget for Pool B Hotel.  Not more than sixty (60) days following the Effective Date for each Pool B Hotel, Manager shall submit to Owner a proposed Yearly Budget for such Hotel for the remainder of the applicable Fiscal Year for Owner’s approval in accordance with Section 8.2 of the Management Agreement.  Once approved in accordance with Section 8.2 of the Management Agreement, such proposed Yearly Budget shall constitute the Yearly Budget for such Hotel for the balance of the applicable Fiscal Year.     

		
			 
		

			
	
			
				 17.
			Disbursements of Funds.  Section 10.1 of the Management Agreement is deleted in its entirety and replaced with the following:

		
			 
		

		
			”(a) As and when received by Manager or the Pool A Hotels, all Gross Revenues from all of the Pool A Hotels (the “Pool A Gross Revenues”) shall be deposited into the Bank Accounts and, subject to the terms of Sections 8.1 (Accounting Matters) and 10.5 (Calculation of Interim Disbursements), applied in the following order of priority to the extent available:
		

		
			 
		

		
			(1)First, to pay all Operating Costs for all Pool A Hotels;
		

		
			 
		

		
			(2)Second, to fund the Reserve Account as required by Section 5.2 (Reserve Account) in respect of the Pool A Gross Revenues for the previous Fiscal Month and then any amounts accrued and unpaid for prior periods, including amounts accrued and unpaid under the Original Management Agreements and to reimburse Manager for amounts advanced by Manager under Section 5.2(d);
		

		
			 
		

		
			(3)Third, Owner’s First Priority for the Fiscal Year to which such Pool A Gross Revenues pertain together with any accrued Owner’s First Priority and interest thereon shall be paid to Owner; if the Net Disbursement Cash is insufficient to pay Owner’s First Priority and interest, if any, as aforesaid, any shortfall shall be accrued; provided, however, there shall be no accrual of Owner’s First Priority to the extent any applicable shortfall is otherwise funded from the Deposit; 
		

		

		

		 

		

			-  4  -

		

 

		 
		

		
			(4)Fourth, if Net Disbursement Cash is sufficient to pay Owner’s First Priority pursuant to 10.1(a)(3), remaining Net Disbursement Cash shall be applied as follows: 

		

		
			(i)one-half (1/2) of the amount thereof shall be paid to Owner to replenish the Deposit up to but not in excess of the Deposit Maintenance Amount; and
		

		
			(ii)one-half (1/2) of the amount thereof shall be paid to Manager in an amount equal to the Base Management Fee applicable to the Pool A Hotels for the Fiscal Year. 
		

		
			 
		

		
			To the extent a portion of the Pool A Gross Revenues is allocated pursuant to clauses (i) and (ii) immediately above, but is not applied because the Deposit has been restored to the Deposit Maintenance Amount, and/or the Base Management Fee has been paid in full, as the case may be, such portion of the Pool A Gross Revenues not so applied (the “Excess Net Disbursement Cash”) shall be aggregated at each occasion of the allocation calculation and shall be applied as provided below.
		

		
			 
		

		
			(5)Fifth, Excess Net Disbursement Cash shall be paid to Owner up to but not in excess of Owner’s Second Priority for such Fiscal Year; 
		

		
			 
		

		
			(6)Sixth, remaining Excess Net Disbursement Cash shall be paid (i) fifty percent (50%) to Manager and shall constitute the Incentive Management Fee hereunder and (ii) fifty percent (50%) to Owner and shall constitute Owner’s Residual Distribution hereunder.
		

		
			 
		

		
			(b)As and when received by Manager or the Pool B Hotels, all Gross Revenues from all of the Pool B Hotels (the “Pool B Gross Revenues”) shall be deposited into the Bank Accounts and, subject to the terms of Sections 8.1 (Accounting Matters) and 10.5 (Calculation of Interim Disbursements), applied in the following order of priority to the extent available:
		

		
			 
		

			
	
			
				 (1)
			First, to pay all Operating Costs for the Pool B Hotels;

		
			 
		

			
	
			
				 (2)
			Second, Owner’s Pool B Priority for the Fiscal Year to which such Pool B Gross Revenues pertain, together with any accrued Owner’s Pool B Priority and interest thereof shall be paid to Owner; if the Pool B Gross Revenues are insufficient to pay Owner’s Pool B Priority and interest, if any, as aforesaid, such shortfall shall be accrued; provided,  however, there shall be no accrual of Owner’s Pool B Priority to the extent any applicable shortfall is otherwise funded from the Deposit;

		
			 
		

			
	
			
				 (3)
			Third, the Base Management Fee for the Pool B Hotels shall be paid to Manager;

		

		

		 

		

			-  5  -

		

 

		 
		

			
	
			
				 (4)
			Fourth, to fund the Reserve Account, as required by Section 5.2 (Reserve Account) in respect of the Pool B Gross Revenues, for the previous Fiscal Month and then any amounts accrued and unpaid for prior periods, including amounts to reimburse Manager for amounts advanced by Manager under Section 5.2(d);

		
			    
		

			
	
			
				 (5)
			Fifth, if Pool B Gross Revenues are sufficient to fund the Reserve Account pursuant to Section 10.1(b)(4), remaining Pool B Gross Revenues shall be applied as follows: (i) fifty percent (50%) of the amount thereof shall be paid to Owner to replenish the Deposit up to but not in excess of the Deposit Maintenance Amount (after first taking into account any such amounts to be paid to Owner to replenish the Deposit pursuant to Section 10.1(a)(4)(i)); and (ii) fifty percent (50%) of the amount thereof shall be paid to Owner, up to but not in excess of, Owner’s Second Priority for such Fiscal Year (after first taking into account any such amounts to be paid to Owner pursuant to Section 10.1(a)(5));

		
			 
		

			
	
			
				 (6)
			Sixth, if Pool B Gross Revenues are sufficient to fund the Deposit and Owner’s Second Priority pursuant to Section 10.1(b)(5), remaining Pool B Gross Revenues shall be aggregated and shall be applied as follows: (i) fifty percent (50%) of the amount thereof shall be paid to Manager and shall also constitute the Incentive Management Fee hereunder; and (ii) fifty percent (50%) of the amount thereof shall be paid to Owner and shall also constitute Owner’s Residual Distribution hereunder.

		
			 
		

		
			For clarification, amounts applied to fund the Reserve Account under Sections 10.1(a)(2) and 10.1(b)(4) shall be made to the same Reserve Account established under Section 5.2.
		

		
			 
		

		
			The provisions of Section 10.3 notwithstanding, Owner shall apply amounts from the Deposit to fund any shortfall in Owner’s First Priority and Owner’s Pool B Priority and Manager shall not be in default hereunder for failure to pay Owner’s First Priority and Owner’s Pool B Priority in full, so long as such amounts from the Deposit are available and may be so applied and so long as, after application of such amounts, the Deposit is not less than $37,000,000.
		

		
			 
		

		
			For purposes of the foregoing, any payments of interest or principal on any Authorized Mortgage shall be paid from amounts distributed or accounted for as having been distributed to Owner under this Section 10.1 and shall be treated as payments made first, to Owner’s First Priority, second, to Owner’s Pool B Priority, and third to Owner’s Second Priority."
		

		
			 
		

			
	
			
				 18.
			Owner’s Pool B Priority.  The following new Section 10.3A to the Management Agreement is added immediately following Section 10.3 to the Management Agreement:

		
			 
		

		

		

		 

		

			-  6  -

		

 

		Owner’s Pool B Priority shall be due and payable in advance in equal monthly installments on the first day of each Fiscal Month, pro-rated for any partial month, regardless of any inadequacy of Gross Revenues or Operating Profits.  If any installment of Owner’s Pool B Priority is not paid when due and not funded through the Deposit, the same shall accrue interest at the Interest Rate until paid (such interest shall be payable on demand, shall not be an Operating Cost, and shall be paid by Manager).  Appropriate adjustments shall be made to reflect any change in Owner’s Pool B Priority on account of net sale proceeds received or deemed to be received pursuant to Section 2.6(e) (Non-Economic Hotels), or advances made pursuant to Sections 5.2 (Reserve Account),  15.2 (Restoration) or 16.2 (Partial Condemnation) by Owner or Landlord when advances are made, provided any additional amounts of Owner’s Pool B Priority due by reason of any advance for the month in which such advance is made shall not be due and payable until the first Business Day of the month next after the date as of which such change occurs.  As installments of Owner’s Pool B Priority are to be paid in advance, Manager may advance amounts due on account of a monthly installment of Owner’s Pool B Priority for a Fiscal Month and reimburse itself from Operating Profits for such Fiscal Month the amounts so advanced; provided, however, if Operating Profits of all of the Pool B Hotels for such Fiscal Month are insufficient to make such reimbursements, the amount of such insufficiency shall be deemed an advance under the PR Guaranty to the extent any amount is owed thereunder and then an advance to Working Capital, and Manager shall be entitled to the reimbursement thereof only pursuant to Section 5.1.  Subject to Section 10.1, if Owner fails to receive any installment of Owner’s Pool B Priority as and when due, Owner may terminate this Agreement on not less than thirty (30) days’ and not more than two hundred seventy (270) days’ notice; provided, however, such notice shall be void ab initio if such installment together with any interest accrued thereon is paid to Owner within 30 days after such notice is given.  
		

		
			 
		

			
	
			
				 19.
			Termination with Respect to Pool B Hotels.  If during any period, the Management Agreement is terminated with respect to all of the Pool B Hotels, to the extent that any portion of the Owner’s Pool B Priority remains payable after any adjustment thereto in connection with such termination, such portion shall be added to the Owner’s First Priority and to the extent that any such adjustment would result in a negative Owner’s Pool B Priority, such amount shall be subtracted from Owner’s First Priority.

		
			 
		

			
	
			
				 20.
			Working Capital.  As of the applicable Effective Date for each Pool B Hotel, Owner shall advance additional funds for the Working Capital of the Hotels in the amount of the net credit, if any, for closing prorations received by Owner, Landlord, or its affiliates on account of guest ledger receivables and other similar revenues in connection with its acquisition of such Pool B Hotel.  

		
			 
		

			
	
			
				 21.
			Notice Address.  The notice address for Manager and Canadian Manager under the Management Agreement is changed to the following: 

		
			 
		

		

		

		 

		

			-  7  -

		

 

		c/o Six Continents Hotels, Inc.
		

		
			Three Ravinia Drive, Suite 100
		

		
			Atlanta, Georgia 30346
		

		
			Attn: Vice President of Operations
		

		
			 
		

		
			with copy to:
		

		
			 
		

		
			c/o Six Continents Hotels, Inc.
		

		
			Three Ravinia Drive, Suite 100
		

		
			Atlanta, Georgia 30346
		

		
			Attn: General Counsel – Operations
		

		
			 
		

			
	
			
				 22.
			Exhibit A-1.  The Management Agreement is hereby amended to add Exhibit A-1 (List of Sites Removed from Management Agreement) attached to this Amendment immediately following Exhibit A to the Management Agreement.  

		
			 
		

			
	
			
				 23.
			Exhibit C.  The Management Agreement is hereby amended to add Exhibit C (Form of Site Designation Agreement) attached to this Amendment immediately following Exhibit B to the Management Agreement.  

		
			 
		

			
	
			
				 24.
			Ratification.  As amended hereby, the Management Agreement remains in full force and effect and is ratified and confirmed.

		
			 
		

			
	
			
				 25.
			Counterparts.  This Amendment may be executed in two or more counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute one agreement.  Any such counterpart may be delivered by facsimile or e-mail (in .pdf format), and any signature so delivered shall be deemed an original signature for all purposes.

		
			 
		

		
			 
		

		
			 
		

		
			[Remainder of page intentionally left blank; Signature pages follow]
		

		

		

		 

		

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		IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Amendment effective as of the day and year first above written.
		

		
			 
		

		
			OWNER:
		

		
			HPT TRS IHG-2, INC.

		

		
			By:/s/ John G. Murray____
John G. Murray
		

		
			Vice President
		

		
			
MANAGER:
		

		
			INTERNATIONAL HOTELS GROUP RESOURCES, INC.

		

		
			By:/s/ Robert J. Chitty
Robert J. Chitty
		

		
			Vice President
		

		
			INTERNATIONAL HOTELS GROUP (CANADA), INC.
		

		
			
By:/s/ Robert J. Chitty
Robert J. Chitty
		

		
			Vice President
		

		
			IHG MANAGEMENT (MARYLAND) LLC
		

		
			By:/s/ Robert J. Chitty
Robert J. Chitty
		

		
			Vice President
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			  [Signature Page to Amendment to Management Agreement]

		

 

		Each of the parties comprising Landlord joins in the foregoing Amendment to evidence its continued agreement to be bound by the terms of Sections 4.1 through 4.7 and Articles 15 and 16 of the Management Agreement, as may be amended by the foregoing Amendment, in each case to the extent applicable to it, subject to the terms of Section 24.18.
		

		
			LANDLORD:
		

		
			HPT CW MA REALTY TRUST

		

		
			By:/s/ John G. Murray____
John G. Murray
		

		
			Trustee and not individually
		

		
			HPT IHG CANADA PROPERTIES TRUST

		

		
			By:/s/ John G. Murray____
John G. Murray
		

		
			President

HPT IHG GA PROPERTIES LLC

		

		
			By:/s/ John G. Murray____
John G. Murray
		

		
			President

HPT IHG-2 PROPERTIES TRUST
		

		
			
By:/s/ John G. Murray____
John G. Murray
		

		
			President
		

		
			HPT IHG-3 PROPERTIES LLC
		

		
			

		

		
			By:/s/ John G. Murray____
John G. Murray
		

		
			President
		

		
			 
		

		

		

		 

		

			  [Acknowledgment by Landlord]

		

 

		
		

		
			 
		

		
			AGREEMENT BY
INTERCONTINENTAL HOTELS (PUERTO RICO) INC.
		

		
			 
		

		
			Reference is made to that certain Guaranty Agreement, dated as of July 1, 2011, by Intercontinental Hotels (Puerto Rico) Inc. for the benefit of HPT TRS IHG-1, Inc., HPT TRS IHG-2, Inc., HPT TRS IHG-3, Inc., HPT IHG PR, Inc. and Hospitality Properties Trust (the “PR Guaranty”).
		

		
			 
		

		
			Intercontinental Hotels (Puerto Rico) Inc. (“PR Tenant”) acknowledges receipt of the Amendment to Management Agreement  by and among HPT TRS IHG-2, Inc., Intercontinental Hotels Group Resources, Inc., IHG Management (Maryland) LLC and Intercontinental Hotels Group (Canada), Inc. (the “Amendment”).  PR Tenant agrees that the definition of “Guaranteed Obligations” in the PR Guaranty is amended to include payment of Owner’s Pool B Priority (as defined in the Amendment) as and when due under the Management Agreement determined without respect to Gross Revenues thereunder.  PR Tenant also confirms that the PR Guaranty remains in full force and effect.
		

		
			 
		

		
			PR TENANT:
		

		
			 
		

		
			INTERCONTINENTAL HOTELS (PUERTO RICO) INC.,
a Puerto Rico corporation
		

		
			 
		

		
			 
		

		
			By:/s/ Robert J. Chitty
		

		
			      Robert J. Chitty 
		

		
			      Vice President 
		

		
			 
		

		

		

		 

		

			  [Agreement by PR Guarantor]

		

 

		

			 

		

		Exhibit A-1
		

		
			 
		

		
			List of Sites Removed from Management Agreement
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Brand

					
					
						Address

					
					
						City

					
					
						State

					
					
						Zip

				
	
					
						Candlewood

					
					
						6780 S. Galena Street

					
					
						Denver, D.T.C.

					
					
						CO

					
					
						80112

				
	
					
						Candlewood

					
					
						1151 East Main Street

					
					
						Hartford, Meriden

					
					
						CT

					
					
						06450

				
	
					
						Candlewood

					
					
						644 Raymond Ave.

					
					
						Orlando

					
					
						FL

					
					
						32701

				
	
					
						Candlewood

					
					
						2875 Greenspoint Parkway

					
					
						Chicago, Hoffman Estates

					
					
						IL

					
					
						60195

				
	
					
						Candlewood

					
					
						1200 E. Bank Dr.

					
					
						Chicago, Schaumburg

					
					
						IL

					
					
						60173

				
	
					
						Candlewood

					
					
						8000 Capitol Drive

					
					
						Northbrook-Wheeling

					
					
						IL

					
					
						60090

				
	
					
						Candlewood

					
					
						11762 Commonwealth Drive

					
					
						Louisville - East

					
					
						KY

					
					
						40299

				
	
					
						Candlewood

					
					
						1650 N. Opdyke Rd.

					
					
						Detroit, Auburn Hills

					
					
						MI

					
					
						48326

				
	
					
						Candlewood

					
					
						37555 Hills Tech Drive

					
					
						Detroit, Farmington Hills

					
					
						MI

					
					
						48331

				
	
					
						Candlewood

					
					
						5840 Westpark Drive

					
					
						Charlotte, Coliseum

					
					
						NC

					
					
						28217

				
	
					
						Candlewood

					
					
						7623 Thorndike Road

					
					
						Greensboro

					
					
						NC

					
					
						27409

				
	
					
						Candlewood

					
					
						1020 Buck Jones Rd

					
					
						Raleigh, Cary

					
					
						NC

					
					
						27606

				
	
					
						Candlewood

					
					
						360 South 108th Ave.

					
					
						Omaha

					
					
						NE

					
					
						68154

				
	
					
						Candlewood

					
					
						10665 Techwoods Circle

					
					
						Cincinnati, Blue Ash

					
					
						OH

					
					
						45242

				
	
					
						Candlewood

					
					
						6990 S. Park Center Drive

					
					
						Salt Lake City, Fort Union

					
					
						UT

					
					
						84121

				
	
					
						Crowne Plaza

					
					
						17941 VonKarman

					
					
						Irvine

					
					
						CA

					
					
						92614

				
	
					
						Crowne Plaza

					
					
						6345 Powers Ferry Road

					
					
						Atlanta (Perimeter)

					
					
						GA

					
					
						30339

				
	
					
						Crowne Plaza

					
					
						1800 Market St

					
					
						Philadelphia

					
					
						PA

					
					
						19103

				
	
					
						Crowne Plaza

					
					
						130 Shipyard Drive

					
					
						Hilton Head

					
					
						SC

					
					
						29928

				
	
					
						Crowne Plaza

					
					
						7800 Alpha Road

					
					
						Dallas

					
					
						TX

					
					
						75240

				
	
					
						Crowne Plaza

					
					
						14703 Park Row

					
					
						Houston

					
					
						TX

					
					
						77079

				
	
					
						InterContinental

					
					
						550 Light Street

					
					
						Baltimore

					
					
						MD

					
					
						21202

				
	
					
						InterContinental

					
					
						2222 West Loop South

					
					
						Houston

					
					
						TX

					
					
						77027

				
	
					
						Staybridge

					
					
						8480 International Drive

					
					
						Orlando Int Drive

					
					
						FL

					
					
						32819

				
	
					
						Staybridge

					
					
						760 Mt Vernon Highway, N.E.

					
					
						Atl Perimeter Centr

					
					
						GA

					
					
						30328

				
	
					
						Staybridge

					
					
						901 E. Woodfield Office Court

					
					
						Schaumburg

					
					
						IL

					
					
						60173

				
	
					
						Staybridge

					
					
						4 Tech Drive

					
					
						Boston - Andover

					
					
						MA

					
					
						01810

				
	
					
						Staybridge

					
					
						11 Old Concord Road

					
					
						Boston Burlington

					
					
						MA

					
					
						01803

				
	
					
						Staybridge

					
					
						8844 Columbia 100 Pkwy

					
					
						Baltimore Columbia

					
					
						MD

					
					
						21045

				
	
					
						Staybridge

					
					
						2050 Featherstone Road

					
					
						Auburn Hills

					
					
						MI

					
					
						48326

				
	
					
						Staybridge

					
					
						1855 Craigshire Rd.

					
					
						St. Louis

					
					
						MO

					
					
						63146

				
	
					
						Staybridge

					
					
						7925 Forest Pine Drive

					
					
						Charlotte Arrowood

					
					
						NC

					
					
						28273

				
	
					
						Staybridge

					
					
						61 Interpace Pkwy

					
					
						Parsippany

					
					
						NJ

					
					
						07054

				
	
					
						Staybridge

					
					
						4375 U.S. Route 1 South

					
					
						Princeton

					
					
						NJ

					
					
						08540

				
	
					
						Staybridge

					
					
						260 Davidson Ave.

					
					
						Somerset

					
					
						NJ

					
					
						08873

				
	
					
						Staybridge

					
					
						20 Morehall

					
					
						Malvern

					
					
						PA

					
					
						19355

				
	
					
						Staybridge

					
					
						303 Hard Rock Parkway

					
					
						Myrtle Beach

					
					
						SC

					
					
						29579

				
	
					
						Staybridge

					
					
						7880 Alpha Road (Blossomheath Lane) LLLLansLane)

					
					
						Dallas

					
					
						TX

					
					
						75240

				
	
					
						Staybridge

					
					
						5190 Hidalgo Street

					
					
						Houston Galleria

					
					
						TX

					
					
						77056

				

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			Exhibit A-1

		

 

		

			 

		

		Exhibit C
		

		
			 
		

		
			Form of Site Designation Supplement
		

		
			 
		

		
			Site Designation Supplement
		

		
			 
		

		
			THIS SITE DESIGNATION SUPPLEMENT is made and entered into as of [INSERT DATE], by and among HPT TRS IHG-2, INC., a Maryland corporation (“Owner”), and INTERCONTINENTAL HOTELS GROUP RESOURCES, INC. (“Resources”), a Delaware corporation, IHG MANAGEMENT (MARYLAND) LLC (“Maryland”), a Maryland limited liability company, and INTERCONTINENTAL HOTELS GROUP (CANADA), INC. (“Canada”), a corporation under the laws of Ontario, Canada (Resources, Maryland and Canada, collectively, “Manager”), and agreed to and acknowledged by  the Landlord as listed on the signature page hereto  (collectively, “Landlord”) and Intercontinental Hotels (Puerto Rico) Inc. (“PR Tenant”).
		

		
			 
		

		
			1.Pursuant to this Site Designation Supplement, which is governed by the terms and conditions of that certain Management Agreement, dated as of July 1, 2011, entered into between Owner, Manager, and the other parties identified therein, as amended by that certain Amendment to Management Agreement, dated as of March 16, 2015, and as may be further amended from time to time (as so amended, the “Management Agreement”), which Management Agreement is incorporated herein by this reference, Owner and Manager hereby subject the hotel commonly known as [INSERT NAME AND ADDRESS OF SITE], and located on the site described on Attachment 1 to this Supplement, to the terms of the Management Agreement, and such site shall be considered a “Site” as defined in the Management Agreement.  All capitalized terms used and not otherwise defined in this Site Designation Supplement shall have the meanings given such terms in the Management Agreement.  
		

		
			 
		

		
			2.The Effective Date for the Hotel located at this Site shall be [INSERT EFFECTIVE DATE].
		

		
			 
		

		
			3.The Pool B Percentage for the Hotel located at this Site shall be [INSERT THE APPLICABLE PERCENTAGE], the approved aggregate sum of all amounts expended by Owner or Landlord or any of their affiliates in connection with the Hotel located as this Site is [INSERT APPLICABLE ACQUISITION AMOUNT] and the Owner’s Pool B Base Priority for the Hotel located at this Site shall be [INSERT OWNER’S POOL B BASE PRIORITY AMOUNT].
		

		
			 
		

		
			4.Between the Effective Date and [INSERT APPROVED RENOVATION FUNDING EXPIRATION DATE] (the “Approved Renovation Funding Expiration Date”), Owner agrees to supplement the Reserve Account (as defined in the Management Agreement) for the Pool B Hotel Approved Renovations for the Hotel located at this Site in an amount not to exceed [INSERT APPLICABLE AMOUNT], unless otherwise approved or agreed to by Owner [or, in the alternative, as reflected in the agreed upon Pool B Hotel Scope and Estimate for such Hotel, a copy of which is attached hereto as Attachment 2].
		

		
			 
		

		

		

		 

		

			Exhibit C

		

 

		

			 

		

		5.The Management Agreement remains in full force and effect and is ratified and confirmed.
		

		
			 
		

		
			6.This Site Designation Supplement may be executed in two or more counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute one agreement.  Any such counterpart may be delivered by facsimile or e-mail (in .pdf format), and any signature so delivered shall be deemed an original signature for all purposes.
		

		 

		

			Exhibit C

		

 

		

			 

		

		
		

		
			In Witness Whereof, Owner and Manager have duly executed this Site Designation Supplement as of the day and year first written above.
		

		
			 
		

		
			 
		

		
			OWNER:
		

		
			HPT TRS IHG-2, INC.

		

		
			By:____
John G. Murray
		

		
			Vice President
		

		
			
MANAGER:
		

		
			INTERNATIONAL HOTELS GROUP RESOURCES, INC.

		

		
			By:
Robert J. Chitty
		

		
			Vice President
		

		
			INTERNATIONAL HOTELS GROUP (CANADA), INC.
		

		
			
By:
Robert J. Chitty
		

		
			Vice President
		

		
			IHG MANAGEMENT (MARYLAND) LLC
		

		
			By:
Robert J. Chitty
		

		
			Vice President
		

		
			 
		

		
			 
		

		

		

		 

		

			Exhibit C

		

 

		

			 

		

		
		

		
			This Site Designation Supplement is agreed to and acknowledged by:
		

		
			LANDLORD:
		

		
			HPT CW MA REALTY TRUST

		

		
			By:
John G. Murray
		

		
			Trustee and not individually
		

		
			HPT IHG CANADA PROPERTIES TRUST

		

		
			By:
John G. Murray
		

		
			President

HPT IHG GA PROPERTIES LLC

		

		
			By:
John G. Murray
		

		
			President

HPT IHG-2 PROPERTIES TRUST
		

		
			
By:
John G. Murray
		

		
			President
		

		
			HPT IHG-3 PROPERTIES LLC
		

		
			

		

		
			By:
John G. Murray
		

		
			President
		

		
			PR TENANT:
		

		
			INTERCONTINENTAL HOTELS (PUERTO RICO) INC., a Puerto Rico corporation
		

		
			 
		

		
			 
		

		
			By:
		

		
			Name:
		

		
			Title
		

		 

		

			Exhibit CExhibit101Beeks2015EmploymentAgreement

Exhibit 10.1
As of April 1, 2015

Mr. Steven Beeks

RE:  Employment Agreement

Dear Mr. Beeks:

On behalf of Lions Gate Films Inc. (the “Company”), this is to confirm the terms of your employment by the Company. We refer to you herein as “Employee.”  The terms of Employee’s employment are as follows:

1.    TERM

(a)  The term of this agreement (“Agreement”) will begin April 1, 2015 and end March 31, 2018, subject to termination as provided for in Section 7 below (the “Term”).  Until April 1, 2015, the employment agreement dated March 5, 2012, and subsequently amended December 17, 2012, between the Company and Employee (the “Prior Agreement”) governed the terms and conditions of Employee’s employment.  During the Term of this Agreement, Employee will serve as Co-Chief Operating Officer (“Co-COO”) and Co-President, Motion Picture Group.  As Co-COO, Employee will report to the Company’s Chief Executive Officer (“CEO”), currently Jon Feltheimer.  As Co-President, Motion Picture Group, Employee will report to the Co-Chairs of the Company’s Motion Picture Group, currently Robert Friedman and Patrick Wachsberger, or the Company’s designee(s) who substantially perform the functions of the Co-Chairs of the Company’s Motion Picture Group. Notwithstanding anything herein to the contrary, at any time during the Term, Company may require by written notice (“Title Notice”) that Employee serve solely as the Co-COO or the Co-President, Motion Picture Group, and such requirement shall not be a breach of the Agreement.  Following receipt of the Title Notice, Employee shall render such services as are customarily rendered by persons in Employee’s capacity in the entertainment industry and as may be reasonably requested by the Company as either the Co-President, Motion Picture Group or the Co-COO, as the case may be.

(b)  So long as this Agreement shall continue in effect, Employee shall devote Employee’s full business time, energy and ability exclusively to the business, affairs and interests of the Company and matters related thereto, shall use Employee’s best efforts and abilities to promote the Company’s interests, and shall perform the services contemplated by this Agreement in accordance with policies established by the Company.

(c)  As long as Employee’s meaningful business time is devoted to the Company, Employee may devote a reasonable amount of time to management of personal investments and charitable, political and civic activities, so long as these activities do not 

Mr. Steven Beeks
As of April 1, 2015
Page 2 of 2

conflict with the Company’s interests or otherwise interfere with Employee’s performance under this Agreement.

2.    COMPENSATION

(a)  Salary.  During the Term, Employee shall be entitled to receive a base salary at the rate of NINE HUNDRED FIFTY THOUSAND DOLLARS ($950,000.00) per year (“Base Salary”), payable in accordance with the Company’s normal payroll practices in effect. 

(b)  Payroll.  Nothing in this Agreement shall limit the Company’s right to modify its payroll practices, as it deems necessary.

(c)  Bonuses.  During the Term, Employee shall be eligible to receive annual performance bonuses with a target of seventy-five percent (75%) of Base Salary based upon such Company and/or individual performance criteria as determined by the Compensation Committee (the “CCLG”) of the Board of Directors (the “Board”) of Lions Gate Entertainment Corp. (“Lions Gate”), the Company’s parent, in its discretion and in consultation with the CEO, provided that Employee must be employed with the Company through the end of the Company’s fiscal year and at the time when such bonus, if earned, is paid to be eligible to receive a bonus for a given fiscal year.  In the event that Employee is terminated pursuant to Section 7(a)(v) below, Employee shall be eligible for a pro-rated bonus based upon the amount of time worked during the fiscal year in which the termination occurs, determined using the same criteria as used to determine bonuses for other senior level executives and paid at the same time that such bonuses are paid to employees of the Company.  Any such bonus will be paid as soon as practicable after the end of the applicable fiscal year and in all events within the “short-term deferral” period provided under Treasury Regulation Section 1.409A-1(a)(4). 

(d)    Tax Withholding.  Notwithstanding anything else herein to the contrary, the Company may withhold (or cause there to be withheld, as the case may be) from any amounts otherwise due or payable under or pursuant to this Agreement such federal, state and local income, employment, or other taxes as may be required to be withheld pursuant to any applicable law or regulation.

3.    BENEFITS

As an employee of the Company, Employee will continue to be eligible to participate in all benefit plans to the same extent as other similarly situated salaried employees of the Company and in all events subject to the terms of such plans.  For the sake of clarity, such plans do not include compensation and/or any bonus plans.

Mr. Steven Beeks
As of April 1, 2015
Page 3 of 3

4.    VACATION AND TRAVEL

(a)  Employee shall be entitled to take paid time off without a reduction in salary, subject to (i) the approval of the CEO, which shall not be unreasonably withheld, and (ii) the demands and requirements of Employee’s duties and responsibilities under this Agreement.  Employee shall not accrue paid vacation.  

(b)  Employee shall be eligible to be reimbursed for any business expenses in accordance with the Company’s current Travel and Entertainment policy.

(c)  Employee shall also be entitled to (i) business class travel for flights in excess of four (4) hours; (ii) all customary “perqs” of division heads within the Company; (iii) a cellular telephone which may be expensed; (iv) a reserved parking space; and (v) reimbursement for all expenses reasonably incurred in connection with his employment.

(d)  The Company reserves the right to modify, suspend or discontinue any and all of the above-referenced benefits, plans, practices, policies and programs (including those in Section 3) at any time (whether before or after termination of employment) without notice to or recourse by Employee so long as action is taken in general with respect to other similarly situated persons and does not single out Employee. 

5.      STOCK

(a)  Grant/Option.  On May 6, 2015 the CCLG of the Board of Lions Gate approved the grant to Employee of 33,333 Lions Gate restricted share units (the “Grant”) and the right to purchase 116,667 shares of Lions Gate common stock (the “Option”) in accordance with the terms and conditions of the 2012 Lions Gate Performance Incentive Plan (the “Plan”). The exercise price per share for the Option shall be the closing price (in regular trading) of Lions Gate common stock on the NYSE on the Award Date.  The award date shall be May 5, 2015 (the “Award Date”).   The Grant and Option shall be evidenced by and subject to the terms of an award agreement in the form generally then used by Lions Gate to evidence grants of restricted stock units and common stock under the Plan.
 
		
	(i)
	Vesting.  Subject to the terms hereof, the Grant and Option shall vest as follows:

		
	(A)
	the first 11,111 restricted share units of the Grant and the first 38,889 common shares of the Option shall vest on the first anniversary of the Award Date; 

Mr. Steven Beeks
As of April 1, 2015
Page 4 of 4

		
	(B)
	an additional 11,111 restricted share units of the Grant and an additional 38,889 Lions Gate common shares of the Option shall vest on the second anniversary of the Award Date; and,

		
	(C)
	the final 11,111 restricted share units of the Grant and the final 38,889 Lions Gate common shares of the Option shall vest on March 31, 2018. 

(ii)     Continuance of Employment.  The vesting schedule in Section 5(a)(i) above requires Employee’s continued employment with the Company through each applicable vesting date as a condition to the vesting of the applicable installment of the Grant, the Option and the rights and benefits thereto.

(b)  Performance Grant/Performance Option.  On May 6, 2015 the CCLG of the Board of Lions Gate, also approved the grant to Employee of 66,667 Lions Gate restricted share units (the “Performance Grant”) and the right to purchase 233,333 shares of Lions Gate common stock (the “Performance Option”) in accordance with the terms and conditions of the Plan. The exercise price per share for the Performance Option shall be the closing price (in regular trading) of Lions Gate common stock on the NYSE on the Award Date.  .The Performance Grant and Performance Option shall be evidenced by and subject to the terms of an award agreement in the form generally then used by Lions Gate to evidence grants of restricted stock units and common stock under the Plan.
    
		
	(i)
	Vesting.  Subject to the other terms hereof, the Performance Grant and the Performance Option shall vest as follows:

		
	(A)
	the first 22,223 restricted share units of the Performance Grant and the first 77,778 common shares of the Performance Option shall be eligible to vest on the first anniversary of the Award Date; 

		
	(B)
	an additional 22,222 restricted share units of the Performance Grant and an additional 77,778 common shares of the Performance Option shall be eligible to vest on the second anniversary of the Award Date; and,

		
	(C)
	the final 22,222 restricted share units of the Performance Grant and 77,777 common shares of the Performance Option shall be eligible to vest on March 31, 2018. 

The vesting of the Performance Grant and the Performance Option on the applicable vesting dates shall be subject to an assessment of Employee’s performance over the twelve (12) month period ending on 

Mr. Steven Beeks
As of April 1, 2015
Page 5 of 5

such Performance Grant and Performance Option vesting date, based on such Company and/or individual performance criteria determined by the CCLG in consultation with the CEO, based upon the criteria listed in Exhibit A to this Agreement. Determination of the portion of an annual Performance Grant and Performance Option vesting on each applicable vesting date, if any, shall be made by the CCLG.  All shares from the Performance Grant and Performance Option that do not vest on the respective Performance Grant and Performance Option vesting date shall expire on that date with no possibility of further vesting.  Notwithstanding the foregoing, the CCLG may, in its sole discretion, provide that any portion of the Performance Grant and the Performance Option scheduled to vest on any such applicable vesting date that does not vest on such date may vest on any future Performance Grant and Performance Option vesting date.

(ii)     Continuance of Employment.  The vesting schedule in Section 5(b)(i) above requires Employee’s continued employment with the Company through each applicable vesting date as a condition to the vesting of the applicable installment of the Performance Grant, the Performance Option and the rights and benefits thereto.

(c)  Acceleration of Grants and Options.  In the event that Employee dies during the Term of this Agreement, the Grant, Option, Performance Grant and Performance Option referred to in Sections 5(a)-(b) of this Agreement, to the extent then outstanding and unvested, shall accelerate and immediately become fully vested.  In the event that Employee is terminated pursuant to Section 7(a)(v) below, any portion of the Grant or Option referred to in Section 5(a) scheduled to vest during the contract year (i.e. April 1 – March 31 of the following year) in which the termination occurs, to the extent then outstanding and unvested, shall accelerate and immediately become fully vested.

(d)  Change of Control.

		
	(i)  
	If a Change of Control occurs during the Term of this Agreement and Employee is terminated pursuant to Section 7(a)(v) below within six (6) months following the Change of Control, the Grant, Option, Performance Grant and Performance Option granted to Employee pursuant to Sections 5(a) and 5(b) above, to the extent then outstanding and unvested, shall accelerate and immediately become fully vested.

		
	(ii)
	For the purposes of this Agreement, “Change of Control” shall mean:

Mr. Steven Beeks
As of April 1, 2015
Page 6 of 6

		
	(A)
	if any person, other than (A) any person who holds or controls entities that, in the aggregate (including the holdings of such person), hold or control twenty-five percent (25%) or more of the outstanding shares of Lions Gate on the date of execution of this Agreement of each party hereto (collectively, a “Twenty-Five Percent Holder”) or (B) a trustee or other fiduciary holding securities of Lions Gate under an employee benefit plan of Lions Gate, becomes the beneficial owner, directly or indirectly, of securities of Lions Gate representing thirty-three percent (33%) or more of the outstanding shares as a result of one or more related transactions in the context of a merger, consolidation, sale or other disposition of equity interests or assets of Lions Gate, excluding any transactions or series of transactions involving a sale or other disposition of securities of Lions Gate by a Twenty-Five Percent Holder; 

		
	(B)
	if, as a result of one or more related transactions in the context of a merger, consolidation, sale or other disposition of equity interests or assets of Lions Gate, there is a sale or disposition of thirty-three percent (33%) or more of Lions Gate's assets (or consummation of any transaction, or series of related transactions, having similar effect);

		
	(C)
	if, as a result of one or more related transactions in the context of a merger, consolidation, sale or other disposition of equity interests or assets of Lions Gate, there occurs a change or series of changes in the composition of the Board as a result of which half or less than half of the directors are incumbent directors;

		
	(D)
	if, as a result of one or more related transactions in the context of a merger, consolidation, sale or other disposition of equity interests or assets of Lions Gate (excluding any sale or other disposition of securities of Lions Gate by a Twenty-Five Percent Holder in a single transaction or a series of transactions), a shareholder or group of shareholders acting in concert, other than a Twenty-Five Percent Holder in a single transaction or a series of transactions, obtain control of thirty-three percent (33%) or more of the outstanding shares of Lions Gate; 

		
	(E)
	if, as a result of one or more related transactions in the context of a merger, consolidation, sale or other disposition of equity interests or assets of Lions Gate, a shareholder or 

Mr. Steven Beeks
As of April 1, 2015
Page 7 of 7

group of shareholders acting in concert obtain control of half of the Board, excluding any transactions or series of transactions involving a sale or other disposition of securities of Lions Gate by a Twenty-Five Percent Holder;

		
	(F)
	if there is a dissolution or liquidation of Lions Gate; or

		
	(G)
	if there is any transaction or series of related transactions that has the substantial effect of any or more of the foregoing, excluding any transaction or series of transactions involving a Twenty-Five Percent Holder.

(e)  Effect on Prior Grants.  The Grant, Option, Performance Grant and Peformance Option provided for in Sections 5(a)-(b) above are in addition to, and not in lieu of, any and all grants and options provided for in any and all previous agreements between Employee and Company.  Any and all grants and options granted under such prior agreements shall be unaffected by this Agreement.

6.    HANDBOOK

Employee agrees that the Company Employee Handbook outlines other policies in addition to the terms set forth in this Agreement, which will apply to Employee’s employment with the Company, and Employee acknowledges receipt of such handbook.  Employee acknowledges and agrees that it is Employee’s obligation to read, understand and adhere to the rules and policies set forth in such handbook.  Employee acknowledges and agrees that the Company retains the right to revise, modify or delete any such policy or any employee benefit plan it deems appropriate.  

7.    TERMINATION

(a)  This Agreement and the Term shall terminate upon the happening of any one or more of the following events:

		
	(i)
	The mutual written agreement between the Company and Employee; 

		
	(ii)
	The death of Employee; 

		
	(iii)
	Employee’s having become so physically or mentally disabled as to be incapable, even with a reasonable accommodation, of satisfactorily performing Employee’s duties hereunder for a period of twelve (12) consecutive weeks or sixteen (16) weeks in any year, provided that Employee has not cured disability within ten (10) days of written notice; 

Mr. Steven Beeks
As of April 1, 2015
Page 8 of 8

		
	(iv)
	The determination on the part of the Company that “cause” exists for termination of this Agreement, provided that Employee has not cured such “cause” within fifteen (15) days of written notice by Company, if such “cause” is capable of cure.  If no cure is possible or Employee has failed to cure, Employee’s employment shall terminate upon the 15th day following notice of termination.  As used herein, “cause” is defined as the occurrence of any of the following:  

		
	(A)
	Employee’s conviction of a felony or plea of nolo contendere to a felony (other than a traffic violation); 

		
	(B)
	commission, by act or omission, of any material act of dishonesty in the performance of Employee’s duties hereunder;

		
	(C)
	material breach of this Agreement by Employee; or 

		
	(D)
	any act of misconduct by Employee having a substantial adverse effect on the business or reputation of the Company; 

          
		
	(v)
	Employee is terminated “without cause.”  If the Company elects to terminate Employee “without cause,” it must provide Employee with sixty (60) days prior written notice.  Termination “without cause” shall be defined as Employee being terminated by the Company for any reason other than as set forth in Sections 7(a)(i)-(iv) above.  In the event of a termination “without cause,” subject to Employee’s execution and delivery to the Company of a general release of claims in a form acceptable to the Company not more than twenty-one (21) days after the date the Company provides such release (and Employee’s not revoking such release within any revocation period provided under applicable law), Employee shall be entitled to receive a severance payment equal to 50% of the amount of the Base Salary  that Employee would have been entitled to receive for the period commencing on the date of such termination and ending on the last day of the Term had Employee continued to be employed with the Company through such date, but in no event less than the greater of either (i) twelve (12) months’ Base Salary at the monthly rate in effect on the date of such termination, or (ii) the amount Employee would receive from the Company’s severance policy for non-contract employees that is currently in effect at the time of termination; provided, however, that in the event such a termination “without cause” occurs on or 

Mr. Steven Beeks
As of April 1, 2015
Page 9 of 9

within six (6) months following a Change of Control, (x) instead of the severance payment provided for above, Employee shall be entitled to receive a continued Base Salary as set forth in Section 2 through the conclusion of the Term, subject to Employee’s obligation to mitigate in accordance with California Law (unless such termination occurs during the final year of the Term, in which case the severance payment shall be twelve (12) months’ Base Salary paid in one lump sum), and (y) Employee’s equity-based awards granted by Lions Gate, to the extent then outstanding and unvested, shall become fully vested upon such termination.  Any lump sum cash severance payable to Employee pursuant to the preceding provisions of this Section 7(a)(v) shall be paid, subject to Section 15(b), as soon as practicable after (and in all events within sixty (60) days after) the date of Employee’s “separation from service” (within the meaning of Treasury Regulation Section 1.409A-1(h)) with the Company; provided, however, that if the 60-day period following Employee’s separation from service spans two calendar years, such lump sum payment shall be made within such 60-day period but in the second of the two calendar years. The Company shall provide the final form of release agreement to Employee not later than seven (7) days following the termination date.  The Company’s payment of the amount referred to in this Section 7(a)(v), in addition to the accrued obligations described in Section 7(b) below, shall relieve the Company of any and all obligations to Employee, with the exception that Employee shall remain eligible for any amounts payable under Section 2(c) above.

(b)  In the event that this Agreement is terminated pursuant to Sections 7(a)(i)-(iv) above, neither the Company nor Employee shall have any remaining duties or obligations hereunder, except that the Company shall pay to Employee any base salary that had accrued but had not been paid as of the date of termination.  Following the termination of the Term and/or this Agreement for any reason, Sections 9-15 shall, notwithstanding anything else herein to the contrary, survive and continue to be binding upon the parties following such termination.

8.    EXCLUSIVITY AND SERVICE

Employee’s services shall be exclusive to the Company during the Term. Employee shall render such services as are customarily rendered by persons in Employee’s capacity in the entertainment industry and as may be reasonably requested by the Company.  Employee hereby agrees to comply with all reasonable requirements, directions and requests, and with all reasonable rules and regulations made by the Company in connection with the regular conduct of its business.  Employee further agrees to render services during Employee’s employment hereunder whenever, wherever and as often as the Company may reasonably require in a competent, conscientious and 

Mr. Steven Beeks
As of April 1, 2015
Page 10 of 10

professional manner, and as instructed by the Company in all matters, including those involving artistic taste and judgment, but there shall be no obligation on the Company to cause or allow Employee to render any services, or to include all or any of Employee’s work or services in any motion picture or other property or production.

9.    INTELLECTUAL PROPERTY

(a)  Employee agrees that the Company shall be the sole and exclusive owner throughout the universe in perpetuity of all of the results and proceeds of Employee’s services, work and labor in connection with Employee’s employment by the Company, during the Term and any other period of employment with the Company, free and clear of any claims, liens or encumbrances.  Employee shall promptly and fully disclose to the Company, with all necessary detail for a complete understanding of the same, any and all developments, clients and potential client lists, discoveries, inventions, improvements, conceptions, ideas, writings, processes, formulae, contracts, methods, works, whether or not patentable or copyrightable, which are conceived, made, acquired, or written by Employee, solely or jointly with another, while employed by the Company (whether or not at the request or upon the suggestion of the Company) and which are substantially related to the business or activities of the Company its parent, affiliates, or subsidiaries that are within the scope of Employee’s employment and responsibilities hereunder (collectively, “Proprietary Rights”). 

(b)  All copyrightable works that Employee creates in connection with Employee’s obligations under this Agreement and any other period of employment with the Company, its parent, affiliates, or subsidiaries shall be considered “work made for hire” and therefore the property of the Company.  To the extent any work so produced or other intellectual property so generated by Employee is not deemed to be a “work made for hire,” Employee hereby assigns and transfers and agrees to assign and transfer to the Company (or as otherwise directed by the Company) Employee's full rights, title and interests in the Proprietary Rights to the Company or its designee.  In addition, Employee shall deliver to the Company any and all drawings, notes, specifications and data relating to the Proprietary Rights.  Whenever requested to do so by the Company, Employee shall execute and deliver to the Company any and all applications, assignments and other instrumentsd and do such other acts that the Company shall reasonable request to apply for and obtain patents and/or copyrights in any and all countries or to otherwise protect the Company’s interest in the Proprietary Rights and/or to vest title thereto to the Company.  Employee further agrees not to charge the Company for time spent in complying with these obligations.  This Section 9 shall apply only to that intellectual property which related at the time of conception to the Company's then current or anticipated business or resulted from work performed by Employee for the Company. Employee hereby acknowledges receipt of written notice from the Company pursuant to California Labor Code Section 2872 that this Agreement (to the extent it requires an assignment or offer to assign rights to any invention of Employee) does not apply to an invention which qualifies fully under California Labor Code Section 2870.

Mr. Steven Beeks
As of April 1, 2015
Page 11 of 11

10.    ASSIGNMENT AND DELEGATION

Employee shall not assign any of Employee’s rights or delegate any of Employee’s duties granted under this Agreement.  Any such assignment or delegation shall be deemed void ab initio.

11.    TRADE SECRETS

The parties acknowledge and agree that during the Term of this Agreement and in the course of the discharge of Employee’s duties hereunder and at any other period of employment with the Company, its parent, affiliates, or subsidiaries, Employee shall have and has had access to information concerning the operation of the Company and its parent, affiliated and subsidiary entities, including without limitation, financial, personnel, sales, planning and other information that is owned by the Company and regularly used in the operation of the Company’s business and (to the extent that such confidential information is not subsequently disclosed or otherwise becomes known to the public generally other than by breach of this Agreement by Employee) that this information constitutes the Company’s trade secrets. Notwithstanding the above, the parties acknowledge and agree that trade secrets shall not include any information that Employee can demonstrate (i) was publicly available at the time of its disclosure to Employee; (ii) was already in Employee’s possession at the time of disclosure; (iii) was rightfully received by Employee from a third party not subject to obligations of confidentiality, or (iv) was independently developed by Employee without use of any trade secrets.

Employee agrees that Employee shall not disclose any such trade secrets, directly or indirectly, to any other person or use them in any way, either during the Term of this Agreement or at any other time thereafter, except as is required in the course of Employee’s employment for the Company, as required by applicable law or court order, or if authorized in writing by the Company. Employee shall not use any such trade secrets in connection with any other employment and/or business opportunities following the Term. In addition, Employee hereby expressly agrees that Employee will not disclose any confidential matters of the Company and its parent, affiliated and subsidiary entities that are not trade secrets prior to, during or after Employee’s employment including the specifics of this Agreement. Employee shall not use any such confidential information in connection with any other employment and/or business opportunities at any time during or following the Term. In addition, in order to protect any such confidential information, Employee agrees that during the Term and for a period of two (2) years thereafter, Employee will not, directly or indirectly, induce or entice any other executive or employee of the Company, with the sole exception of Employee’s assistant if Company has employed an individual in such role, to leave such employment.

Mr. Steven Beeks
As of April 1, 2015
Page 12 of 12

12.    ARBITRATION

Any dispute, controversy or claim arising out of or in respect to this Agreement (or its validity, interpretation or enforcement), the employment relationship or the subject matter hereof shall at the request of either party be submitted to and settled by binding arbitration conducted before a single arbitrator in Los Angeles in accordance with the Federal Arbitration Act, to the extent that such rules do not conflict with any provisions of this Agreement.  Said arbitration shall be under the jurisdiction of Judicial Arbitration and Mediation Services, Inc. (“JAMS”) in Los Angeles, California. All such actions must be brought within the statute of limitations period applicable to the claim as if that claim were being filed with the judiciary or forever be waived.  Failure to institute an arbitration proceeding within such period shall constitute an absolute bar to the institution of any proceedings respecting such controversy or claim, and a waiver thereof.  The arbitrator shall have the authority to award damages and remedies in accordance with applicable law.  Any award, order, or judgment pursuant to such arbitration shall be deemed final and binding and may be entered and enforced in any state or federal court of competent jurisdiction.  Each party agrees to submit to the jurisdiction of any such court for purposes of the enforcement of any such award, order, or judgment.  The Company shall pay for the administrative costs of such hearing and proceeding.

13.    INTEGRATION, AMENDMENT, NOTICE, SEVERABILITY, AND FORUM

(a)  This Agreement expresses the binding and entire agreement between Employee and the Company and shall replace and supersede all prior arrangements and representations, either oral or written, as to the subject matter hereof (including, without limitation, the Prior Agreement, with the sole exception of Section 5 therein, which shall remain in full force and effect).

(b)  All modifications or amendments to this Agreement must be made in writing and signed by both parties. 

(c) Any notice required herein shall be in writing and shall be deemed to have been duly given when delivered by hand, received via electronic mail or on the depositing of said notice in any U.S. Postal Service mail receptacle with postage prepaid, addressed to the Company at 2700 Colorado Avenue, Suite 200, Santa Monica, California 90404 and to Employee at the address set forth above, or to such address as either party may have furnished to the other in writing in accordance herewith.

Mr. Steven Beeks
As of April 1, 2015
Page 13 of 13

(d)  If any portion of this Agreement is held unenforceable under any applicable statute or rule of law then such portion only shall be deemed omitted and shall not affect the validity of enforceability of any other provision of this Agreement.

(e)  This Agreement shall be governed by the laws of the State of California.  The state and federal courts (or arbitrators appointed as described herein) located in Los Angeles, California shall, subject to the arbitration agreement set forth in Section 12 above, be the sole forum for any action for relief arising out of or pursuant to the enforcement or interpretation of this Agreement.  Each party to this Agreement consents to the personal jurisdiction and arbitration in such forum and courts and each party hereto covenants not to, and waives any right to, seek a transfer of venue from such jurisdiction on any grounds.    

14.    INDEMNIFICATION

Except with respect to claims resulting from Employee’s willful misconduct or acts outside the scope of his employment hereunder, Employee shall continue to be defended, indemnified and held harmless by Company in respect of all claims arising from or in connection with his position or services as an Employee of the Company to the maximum extent permitted in accordance with Lions Gate’s Articles of Incorporation, and under applicable California and British Columbia law (including, without limitation and as applicable, attorney’s fees), and shall be covered by the Company’s applicable directors and officers insurance policy. 

15    SECTION 409A

(a) It is intended that any amounts payable under this Agreement shall either be exempt from or comply with Section 409A of the U.S. Internal Revenue Code (including the Treasury regulations and other published guidance relating thereto) (“Code Section 409A”) so as not to subject Employee to payment of any additional tax, penalty or interest imposed under Code Section 409A.  The provisions of this Agreement shall be construed and interpreted to avoid the imputation of any such additional tax, penalty or interest under Code Section 409A yet preserve (to the nearest extent reasonably possible) the intended benefit payable to Employee.

(b)    Notwithstanding any provision of this Agreement to the contrary, if Employee is a “specified employee” within the meaning of Treasury Regulation Section 1.409A-1(i) as of the date of Employee’s separation from service (as defined above), Employee shall not be entitled to any payment or benefits pursuant to Section 7(a)(v) until the earlier of (i) the date which is six (6) months after Employee’s separation from service for any reason other than death, or (ii) the date of Employee’s death.  Any amounts otherwise payable to Employee upon or in the six (6) month period following Employee’s separation from service that are not so paid by reason of this paragraph shall be paid (without interest) as soon as practicable (and in all events within thirty (30) days) after 

Mr. Steven Beeks
As of April 1, 2015
Page 14 of 14

the date that is six (6) months after Employee’s separation from service (or, if earlier, as soon as practicable, and in all events within thirty (30) days, after the date of Employee’s death).  The provisions of this paragraph shall only apply if, and to the extent, required to avoid the imputation of any tax, penalty or interest pursuant to Code Section 409A. 

(c)    To the extent that any reimbursements pursuant to the provisions of this Agreement are taxable to Employee, any such reimbursement payment shall be paid to Employee on or before the last day of Employee’s taxable year following the taxable year in which the related expense was incurred.  The benefits and reimbursements pursuant to such provisions are not subject to liquidation or exchange for another benefit and the amount of such benefits and reimbursements that Employee receives in one taxable year shall not affect the amount of such benefits or reimbursements that Employee receives in any other taxable year.

Please acknowledge your confirmation of the above terms by signing below where indicated.

Very truly yours,

LIONS GATE FILMS INC.
                        

/s/ Wayne Levin
Wayne Levin
Chief Strategic Officer and General Counsel, Lions Gate Entertainment Corp.    
   
AGREED AND ACCEPTED
This 6th day of May, 2015

/s/ Steven Beeks
STEVEN BEEKS

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