Document:

ex101.htm

Exhibit 10.1

AMENDMENT NO. 1 TO CREDIT AGREEMENT

AMENDMENT NO. 1 dated as of December 20, 2013 (the “Amendment”) to the Third Amended and Restated Credit, Security, Pledge and Guaranty and Agreement dated as of September 27, 2012 (as amended, supplemented or otherwise modified, renewed or replaced from time to time, the “Credit Agreement”) among (i) LIONS GATE ENTERTAINMENT INC., as Borrower (the “Original Borrower” or “LGEI”), (ii) the GUARANTORS referred to herein, (iii) the LENDERS referred to therein (each, a “Lender,” and collectively, the “Lenders”) and (iv) JPMORGAN CHASE BANK, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”) and as Issuing Bank.

 

INTRODUCTORY STATEMENT

 

Pursuant to that certain loan agreement entered into on April 10, 2008 (as may be amended from time to time, the “PA Credit Agreement”), by and between Lionsgate Pennsylvania, Inc. (the “PA Borrower”) and Pennsylvania Regional Center, LP (the “PA Lender”), the PA Lender has agreed to make loans to the PA Borrower (the “PA Loan”).

 

In April 2013, the PA Credit Agreement was terminated and the PA Obligations (including the PA Loan) were indefeasibly paid in full.

 

The Original Borrower and LGEC have requested, and the Administrative Agent and the Lenders have agreed, to amend the Credit Agreement to, among other things, (i) designate Lions Gate Entertainment Corp. (the “New Borrower” or “LGEC”) as the Borrower under the Credit Agreement in lieu of LGEI and (ii) delete the references to the PA Credit Agreement (and the related definitions), in each case, subject to and in accordance with the terms and conditions set forth herein.

 

	
  

	
Therefore, the parties hereto hereby agree as follows:

 

1. Defined Terms.  All terms used but not otherwise defined herein have the meanings assigned to them in the Credit Agreement.

 

2. Amendments to Credit Agreement.  Subject to the satisfaction of the conditions precedent set forth in Section 3 below, the Credit Agreement is hereby amended as of the Effective Date (as defined below) as follows:

 

(a) The first paragraph of the Credit Agreement is hereby amended by deleting it in its entirety and replacing it with the following:

 

“THIRD AMENDED AND RESTATED CREDIT, SECURITY, GUARANTY AND PLEDGE AGREEMENT, dated as of September 25, 2000, as amended and restated as of December 15, 2003, as amended and restated as of July 25, 2008 and as further amended and restated as of September 27, 2012 (as may be further amended, supplemented or otherwise modified, renewed or replaced from time to time, the “Credit Agreement”), among (i) LIONS GATE ENTERTAINMENT CORP., a British Columbia corporation ( “LGEC”); (ii) the Guarantors referred to herein; (iii) the Lenders referred to herein; and (iv) JPMORGAN CHASE BANK, N.A., a national banking association, as agent for the Lenders (in such capacity, the “Administrative Agent”) and as the issuer of letters of credit (in such capacity, the “Issuing Bank”).”

 

(b) The Introductory Statement of the Credit Agreement is hereby amended by deleting the second paragraph thereof and replacing it with the following:

 

“On September 25, 2000, LGEI, certain of the Guarantors (including LGEC), the Administrative Agent and certain lenders entered into a Credit, Security, Guaranty and Pledge Agreement, as amended and restated as of December 15, 2003, and as amended and restated as of July 25, 2008 (as amended through Amendment No. 4), providing for a secured credit facility (the “Existing Credit Agreement”).”

 

(c) The Introductory Statement of the Credit Agreement is hereby amended by deleting the fifth paragraph thereof in its entirety.

 

(d) Article 1 of the Credit Agreement is hereby amended by adding the following definitions in the proper alphabetical place:

 

(i) “Commodity Exchange Act” shall mean the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.

 

(ii) “ECHO” shall mean Entertainment Capital Holdings S.À.R.L. and its successors.

 

(iii) “Excluded Swap Obligation” means, with respect to any Guarantor, any Swap Obligation if, and to the extent that, all or a portion of the Guaranty of such Guarantor of, or the grant by such Guarantor of a security interest to secure, such Swap Obligation (or any Guaranty thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) (a) by virtue of such Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the Guaranty of such Guarantor or the grant of such security interest becomes or would become effective with respect to such Swap Obligation or (b) in the case of a Swap Obligation subject to a clearing requirement pursuant to Section 2(h) of the Commodity Exchange Act (or any successor provision thereto), because such Guarantor is a “financial entity,” as defined in Section 2(h)(7)(C)(i) the Commodity Exchange Act (or any successor provision thereto), at the time the Guaranty of such Subsidiary Guarantor becomes or would become effective with respect to such related Swap Obligation. If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Guaranty or security interest is or becomes illegal.

 

(iv) “LGEI” shall mean Lions Gate Entertainment Inc., a Delaware corporation and its successors.

 

(v) “Luxembourg Pledge Agreement on Shares” shall mean the Luxembourg Pledge Agreement on Shares providing for the creation by the Borrower in favor of the Administrative Agent (on behalf of itself and the other Secured Parties) of a first right of pledge in the shares of ECHO held by the Borrower (as may be amended, supplemented or otherwise modified, renewed or replaced from time to time).

 

(vi) “Swap Obligation” shall mean, with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act.

 

(e) Article 1 of the Credit Agreement is hereby amended by deleting the following definitions: “Group Lender”, “LGMFV”, “LGMFV Credit Facility”, “PA Borrower”, “PA Credit Agreement”, “PA Event of Default”, “PA Lender”, “PA Loan”, “PA Obligations” and “Pennsylvania Regional Financing Arrangement”.

 

(f) The Credit Agreement is hereby amended by deleting all references to the words “Group Lender” and “Group Lenders” and replacing them with the words “Lender” and “Lenders”, respectively.

 

(g) The definition of “Applicable Law” in Article 1 of the Credit Agreement is hereby amended by adding the words “, the Grand Duchy of Luxembourg” after the words “United States”.

 

(h) The definition of “Borrower” in Article 1 of the Credit Agreement is hereby deleted in its entirety and replaced with the following:

 

“Borrower” shall mean LGEC.

 

(i) The definition of “Borrowing Base” in Article 1 of the Credit Agreement is hereby amended by (i) deleting the parenthetical in clause (ix) thereof and (ii) deleting clause (xii) thereof in its entirety.

 

(j) The definition of “Business Day” in Article 1 of the Credit Agreement is hereby amended by inserting the words “the Province of Ontario,” before the words “the State of New York.”

 

(k) The definition of “Clearing Account” in Article 1 of the Credit Agreement is hereby amended by (i) deleting the words “(Lions Gate Entertainment Inc.)” after the words “Loan Services” and replacing them with “(Lions Gate Entertainment Corp.) in lieu thereof and (ii) deleting the words “Account No: 9008113381c2673” and replacing them with the words “Account No: 945958478” in lieu thereof.

 

(l) The definition of “Collateral” in Article 1 of the Credit Agreement is hereby amended by (i) inserting the word “and” immediately before clause (ii) of the last paragraph thereof and (ii) deleting clause (iii) from the last paragraph thereof.

 

(m) The definition of “Convertible Senior Subordinated Notes”  in Article 1 of the Credit Agreement is hereby amended by deleting the word “Borrower’s” in each instance where it appears and replacing it with the word “LGEI’s”.

 

(n) The definition of “Credit Facility Debt” in Article 1 of the Credit Agreement is hereby amended by deleting the words “the Borrower’s” in each instance where it appears and replacing it with the word “LGEI’s”.

 

(o) The definition of “Cumulative Credit” in Article 1 of the Credit Agreement is hereby amended by deleting sub-clause (a) thereof and replacing it with the following in lieu thereof:

 

  “(a)  the principal amount of any unsecured Subordinated Debt of the Borrower or LGEI issued after the Closing Date which is convertible into equity interests of the Borrower; plus”

 

(p) The definition of “Eligible Unsold Rights Amount” in Article 1 of the Credit Agreement is hereby amended by replacing the words “Borrower’s March 31, 2012 valuation” with the words “LGEI’s March 31, 2012 valuation” in each instance where it appears.

 

(q) The definition of “Event of Default” in Article 1 of the Credit Agreement is hereby deleted in its entirely and replaced with the following:

 

“Event of Default” shall have the meaning given to such term in Article 7 hereof.

 

(r) The definition of “Fundamental Documents” in Article 1 of the Credit Agreement is hereby amended by adding the words “Luxembourg Pledge Agreement on Shares,” before the word “UCC”..

 

(s) The definition of “Governmental Authority” in Article 1 of the Credit Agreement is hereby amended by adding the words “, Luxembourg” after the word

 

“Canada”.

 

(t) The definition of “Guarantors” in Article 1 of the Credit Agreement is hereby deleted in its entirely and replaced with the following:

 

“Guarantors” shall mean (i) the Borrower with respect to Obligations for which it is not the primary obligor and (ii) LGEI and each other Subsidiary of LGEC which is a signatory of this Agreement and any other direct or indirect Subsidiary of LGEC acquired or created after the date hereof (other than (a) Unrestricted Subsidiaries and (b) Inactive Subsidiaries), which Subsidiary becomes a signatory to this Credit Agreement as a Guarantor as required by Section 5.18 with respect to the obligations of the Borrower under this Credit Agreement.  Each of the Guarantors as of the date hereof shall be listed on Schedule 1.3 hereto.

 

(u) The definition of “Lender” in Article 1 of the Credit Agreement is hereby deleted in its entirely and replaced with the following:

 

“Lender” shall mean (i) the financial institutions whose names appear on the signature pages hereto and who are designated as such on Schedule 1.1 hereof and its successors, and (ii) any assignee of a Lender pursuant to Section 13.3 hereof.

 

(v) The definition of “LIBO Rate” in Article 1 of the Credit Agreement is hereby amended by deleting the definition in its entirety and replacing it with the following language in lieu thereof:

 

“LIBO Rate” shall mean, with respect to any Eurodollar Borrowing for any Interest Period, the rate appearing on Reuters Screen LIBOR01 Page (or on any successor or substitute page on such screen) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, as the rate for dollar deposits in the London interbank market with a maturity comparable to such Interest Period.  In the event that such rate does not appear on such page (or on any such successor or substitute page), the “LIBO Rate” shall be determined by reference to such other publicly available service for displaying interest rates for dollar deposits in the London interbank market as may be selected by the Administrative Agent or, in the absence of such availability, by reference to the rate at which dollar deposits of $5,000,000 and for a maturity comparable to such Interest Period are offered by the principal London office of the Administrative Agent in immediately available funds in the London interbank market at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period.”

 

(w) The definition of “Obligations” in Article 1 of the Credit Agreement is hereby amended by (i) deleting the “,” after the word “‘Obligations’)” in clause (ii) thereof and replacing it with the word “and”, (ii) deleting sub-clause (iv) in its entirety and (iii) by adding the following language after the words “similar services” in clause (iii) thereof:

 

“; provided, however, that the definition of “Obligations” shall exclude any Excluded Swap Obligations of any Guarantor for purposes of determining any obligations of such Guarantor.”

 

(x) The definition of “Percentage” in Article 1 of the Credit Agreement is hereby deleted in its entirety and replaced with the following:

 

“Percentage” shall mean with respect to any Lender, the percentage of the Total Commitment, represented by such Lender’s Commitment.

 

(y) The definition of “Pledged Securities” in Article 1 of the Credit Agreement is hereby amended by (i) deleting clause (ii) thereof and (ii) redesignating clause (iii) as clause (ii) thereof.

 

(z) The definition of “Senior Secured Second Priority Notes” in Article 1 of the Credit Agreement is hereby amended by deleting it in its entirety and replacing it with the following:

 

“Senior Secured Second Priority Notes” shall mean (i) Borrower’s 5.25% Senior Secured Second Priority Notes due 2018 which were issued pursuant to that certain Indenture, dated as of July 19, 2013 (as the same may be amended, supplemented, modified, renewed or replaced from time to time), by and among Borrower, the guarantors referred to therein and U.S. Bank National Association, as trustee and (ii) the  Borrower’s Second Lien Credit Agreement, dated as of July 19, 2013, among the Borrower, the guarantors referred to therein, the lenders referred to therein and U.S. Bank National Association, as administrative agent for the lenders (as the same may be amended, supplemented

 

modified, renewed or replaced from time to time).

 

(aa) The definition of “Total Debt Ratio” in Article 1 of the Credit Agreement is hereby amended by deleting the words “plus amounts outstanding under the PA Loan”.

 

(bb) Section 2.1(d) of the Credit Agreement is hereby amended by inserting the words “or Alternate Base Rate Loan” after the words “Eurodollar Loan”.

 

(cc) Section 5.18 of the Credit Agreement is hereby amended to delete clause (b) of the last sentence of such Section.

 

(dd) Section 6.1(i) of the Credit Agreement is hereby amended by deleting the words “unsecured Subordinated Debt of LGEC and the Borrower” therein and replacing it with the words “unsecured Subordinated Debt of LGEC and LGEI”.

 

(ee) Section 6.1 (j) of the Credit Agreement is hereby amended by deleting the text of the section in its entirety and replacing it with the words “[Reserved].”.

 

(ff) Section 6.1 (q) of the Credit Agreement is hereby amended by deleting the text of the section in its entirety and replacing it with the words “[Reserved].”.

 

(gg) Section 6.1(r) of the Credit Agreement is hereby deleted in its entirety and replaced with the following:

 

  “(r)  Indebtedness incurred by any SlateCo to the extent contemplated by the definition of “Permitted Slate Financing”; and”

 

(hh) Section 6.2(u) of the Credit Agreement is hereby deleted in its entirety and replaced with the following:

 

  “(u)  Liens to secure payment and performance obligations to (i) any ProdCo contemplated by the definition of “Permitted Slate Transaction” and (ii) any SlateCo contemplated by the definitions of “Permitted Slate Financing””.

 

(ii) Section 6.2 (w) of the Credit Agreement is hereby amended by deleting the text of the section in its entirety and replacing it with the words “[Reserved].”.

 

(jj) Section 6.3(viii) of the Credit Agreement is hereby amended by deleting (i) the word “LGEC’s” therein and replacing it with the words “the Borrower’s” and (ii) the words “the Borrower” and replacing them with the word “LGEI”.

 

(kk) Section 6.4(xv) and Section 6.4(xviii) of the Credit Agreement are hereby amended by deleting the references to “the Borrower’s” and “the Borrower”, respectively and replacing them with the words “LGEI’s” and “LGEI”, respectively.

 

(ll) Section 6.4(xxiii) of the Credit Agreement is hereby amended by deleting the section in its entirety and replacing it with the following in lieu thereof:

 

“(xxiii) Investments in Unrestricted Subsidiaries to the extent funded with proceeds of new equity raises at LGEC, which are not applied to increase the amount of Investments permitted pursuant to sub-clauses (i) and (xix) above.”

 

(mm) Section 6.5(xi) of the Credit Agreement is hereby amended by deleting the word “the Borrower’s” therein and replacing it with the word “LGEI’s”.

 

(nn) Section 6.5(xii) of the Credit Agreement is hereby amended by deleting it in its entirety and replacing it with the following:

 

“(xii) the Refinance of Subordinated Debt or Permitted Preferred Stock in exchange for or with all or a portion of proceeds received from the issuance of Permitted Preferred Stock, Equity Interests of LGEI or the Borrower (to the extent consideration for the Equity Interests of LGEI are from proceeds from the issuance of Equity Interests in the Borrower), common stock of the Borrower or Permitted Refinancing Indebtedness in compliance with the definitions of such terms and”

 

(oo) Section 6.6 of the Credit Agreement is hereby amended by deleting the words “and/or LGMFV” after the word SlateCo. in sub-clause (vii) thereof.

 

(pp) Section 6.11 of the Credit Agreement is hereby amended by (i) deleting the words “any SlateCo, any ProdCo nor any Controlled Foreign Subsidiary” in clause (i) thereof and replacing them with the words “any SlateCo nor any ProdCo”, (ii) deleting the words “the Borrower” in clause (iii) thereof and replacing them with the word “LGEI” and (iii) deleting the word “LGEC” in clause (v) thereof and replacing it with the words “the Borrower”.

 

(qq) Section 6.26 of the Credit Agreement is hereby deleted in its entirety.

 

(rr) Section 7.1(h) of the Credit Agreement is hereby amended by (a) adding “(i)” before the word “any” in the first line thereof and (b) adding the following after the word “foregoing” in the last line thereof:

 

“ or (ii) (a) a bankruptcy (faillite) within the meaning of Articles 437 ff. of the Luxembourg Commercial Code or any other insolvency proceedings pursuant to the Council Regulation (EC) N° 1346/2000 of 29 May 2000 on insolvency proceedings; (b) controlled management (gestion contrôlée) within the meaning of the grand ducal regulation of 24 May 1935 on controlled management; (c) voluntary arrangement with creditors (concordat préventif de faillite) within the meaning of the law of 14 April 1886 on arrangements to prevent insolvency, as amended; (d) suspension of payments (sursis de paiement) within the meaning of Articles 593 ff. of the Luxembourg Commercial Code; (e) judicial winding-up (liquidation judiciaire) pursuant to the law of 10 August 1915 on commercial companies, as amended, (f) or any other proceeding applicable to ECHO (and any other Credit Party that is a Luxembourg entity, if any) in Luxembourg

 

(ss) Section 8.7 of the Credit Agreement is hereby amended by deleting the words “(and PA lender, if the funds constitute proceeds of the Film Library)”.

 

(tt) Section 11.5 of the Credit Agreement is hereby deleted in its entirety.

 

(uu) Section 12.2 of the Credit Agreement is hereby amended by adding the following sentence to the end thereof:

 

“Notwithstanding the foregoing, amounts received from any Guarantor shall not be applied to any Excluded Swap Obligation of such Guarantor.”

 

(vv) Section 12.5 of the Credit Agreement is hereby amended by deleting the words “(and PA lender, if such instructions relate to the Film Library)”.

 

(ww) Section 12.14 of the Credit Agreement is hereby deleted in its entirety and replaced with the words “Reserved”.

 

(xx) Section 13.11A of the Credit Agreement is hereby deleted in its entirety and replaced with the words “Reserved”.

 

(yy) Exhibits C-1 “Form of Amended and Restated Copyright Security Agreement”, C-2 “Form of Amended and Restated Copyright Security Agreement Supplement”, F-1 “Form of Trademark Security Agreement” and F-2 “Form of Trademark Security Agreement Supplement” to the Credit Agreement are hereby deleted in their entirety and replaced with Exhibits C-1 “Form of Amended and Restated Copyright Security Agreement”, C-2 “Form of Amended and Restated Copyright Security Agreement Supplement”, F-1 “Form of Trademark Security Agreement” and F-2 “Form of Trademark Security Agreement Supplement”, respectively, attached hereto.

 

(zz) Annex 1 to the Credit Agreement is hereby deleted in its entirety.

 

3. Conditions to Effectiveness.  The provisions of Section 2 of this Amendment shall not become effective until the date upon which all of the following conditions precedent have been satisfied (such date, the “Effective Date”):

 

(a) the Administrative Agent shall have received (i) counterparts of this Amendment which, when taken together, bear the signatures of the Borrower, each of the Guarantors and each of the Lenders and (ii) the Notes, executed by LGEC;

 

(b) the Administrative Agent shall be satisfied that all guaranties and security interests granted in connection with the Credit Agreement remain in effect with respect to the Credit Agreement as amended hereby and the Obligations under the Credit Agreement as amended hereby, and the Administrative Agent shall have received any affirmations or confirmations requested from the Credit Parties with respect thereto;

 

(c) the Administrative Agent shall have received the written opinion of counsel to the Credit Parties, which opinion shall be in form and substance satisfactory to the Administrative Agent and to Morgan, Lewis & Bockius LLP, counsel for the Administrative Agent; and

 

(d) the payment of all fees and expenses (including, without limitation, fees and disbursements of counsel and consultants retained by the Administrative Agent) due and payable by any Credit Party to the Administrative Agent and/or the Lenders pursuant to the Credit Agreement or any other Fundamental Document.

 

4. Reaffirmation of Fundamental Documents.  Each of the Credit Parties hereby: (i) acknowledges that it expects to receive substantial direct and indirect benefits as a result of this Amendment and the transactions contemplated hereby, (ii) consents to this Amendment and the transactions contemplated hereby, (iii) acknowledges and reaffirms all of its obligations and undertakings under each of the Fundamental Documents, including, without limitation, its guarantees, pledges and grants of security interests thereunder and (iv) acknowledges and agrees that notwithstanding this Amendment and the effectiveness of the transactions contemplated hereby, each of the Fundamental Documents and such guarantees, pledges and grants of security interests is not impaired or affected in any manner whatsoever and shall remain in full force and effect in accordance with the terms thereof to secure all of the Obligations (as defined in the Credit Agreement).

 

5. Representations and Warranties.  Each Credit Party represents and warrants that:

 

(a) after giving effect to this Amendment, the representations and warranties contained in the Credit Agreement are true and correct in all material respects on and as of the date hereof as if such representations and warranties had been made on and as of the date hereof (except to the extent that any such representations and warranties specifically relate to an earlier date); and

 

(b) after giving effect to this Amendment, no Default or Event of Default will have occurred and be continuing on and as of the date hereof.

 

(c) the PA Credit Agreement and any security interest granted to the PA Lender thereunder have been terminated and the PA Obligations (including the PA Loan) have been indefeasibly paid in full.

 

6. Fundamental Document.  The parties acknowledge that this Amendment is a Fundamental Document.

 

7. Transition. On the Effective Date, subject to the terms and conditions of the Credit Agreement, the following shall occur: (i) New Borrower will draw a new borrowing (the “New Borrowing”) under the Credit Agreement equal to all Obligations of the Original Borrower regarding amounts previously drawn by the Original Borrower under the Credit Agreement and then outstanding (the “Existing Balance”), (ii) New Borrower will loan the proceeds from the New Borrowing to the Original Borrower and direct Administrative Agent to pay such proceeds to a deposit account of the Original Borrower maintained with Administrative Agent (and subject to an account control agreement pursuant to the Credit Agreement) to be immediately applied to pay-off the Existing Balance, and (iii) as a result of the pay-off, the Existing Balance will be fully satisfied.  On the Effective Date, after giving effect to the foregoing clauses (i)-(iii), all obligations of the Original Borrower under the Credit Agreement and the other Fundamental Documents to which it is a party will automatically be assumed by the New Borrower (and, by its signature below, New Borrower hereby assumes such obligations effective as of the Effective Date) without any further action whatsoever, and for the avoidance of doubt, all Loans outstanding shall be deemed to have been made to the New Borrower.

 

8. Full Force and Effect.  Except as expressly amended hereby, the Credit Agreement (as previously amended) shall continue in full force and effect in accordance with the provisions thereof on the date hereof.  As used in the Credit Agreement, the terms “Agreement,” “this Agreement,” “this Credit Agreement,” “herein,” “hereafter,” “hereto,” “hereof” and words of similar import shall mean, unless the context otherwise requires, the Credit Agreement as amended by this Amendment.  This Amendment shall not be construed as extending to any other matter, similar or dissimilar, or entitling the Credit Parties to any future amendments regarding similar matters or otherwise.

 

9. APPLICABLE LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

10. Counterparts.  This Amendment may be executed in one or more counterparts, each of which shall constitute an original, but all of which when taken together shall constitute but one instrument.

 

11. Expenses.  The Borrowers agree to pay all out-of-pocket expenses incurred by the Administrative Agent in connection with the preparation, enforcement, waiver or modification, execution and delivery of this Amendment, including, but not limited to, the reasonable fees and disbursements of counsel for the Administrative Agent.

 

12. Headings.  The headings of this Amendment are for the purposes of reference only and shall not affect the construction of this Amendment.

 

 

[Signatures Begin on Next Page]

 

	
 

 

 

  

  

  

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their duly authorized officers, all as of the date and year first above written.

 

 

LIONS GATE ENTERTAINMENT INC.                 

 

By: /s/ B. James Gladstone__________________                       

    Name: B. James Gladstone                      

    Title: Executive Vice President and Secretary

 

LIONS GATE ENTERTAINMENT CORP.

 

By: /s/ Wayne Levin           

    Name: Wayne Levin

    Title: General Counsel

 

	  

[Signature Page to Amendment No. 1]

  

  

  

GUARANTORS:

 

100 PLUS PRODUCTIONS, INC.

ABX PRODUCTIONS, INC.

ANGER PRODUCTIONS, INC.

ARTISAN ENTERTAINMENT INC.

ARTISAN HOME ENTERTAINMENT INC.

ARTISAN PICTURES LLC

ARTISAN RELEASING LLC

ATOM PRODUCTIONS, INC.

AWAKEN PRODUCTIONS CORP.

AWAKEN PRODUCTIONS, INC.

BACKSEAT PRODUCTIONS, LLC

BASTER PRODUCTIONS, LLC

BHF PRODUCTIONS, INC.

BLAIR WITCH FILMS, LLC

BLUE MOUNTAIN STATE PRODUCTIONS

CORP.

BOSS KANE PRODUCTIONS, INC.

C4 PRODUCTIONS, INC.

CALLER PRODUCTIONS, INC.

CATX ACTION1 12 PRODUCTIONS, INC.

CATX CERTAIN SLANT 12 PRODUCTIONS,

INC.

CATX EXORCISM 12 PRODUCTIONS, INC.

CATX REAWAKENING 12 PRODUCTIONS,

INC.

CATX RICKY 12 PRODUCTIONS, INC.

CATX TAPE4 12 PRODUCTIONS, INC.

CATX TIME AFTER TIME 12 PRODUCTIONS,

INC.

CATX TWO EYES 12 PRODUCTIONS, INC.

CATX WEE 12 PRODUCTIONS, INC.

CATX XOXO 12 PRODUCTIONS, INC.

CBLG PRODUCTIONS, LLC

CHAINS PRODUCTIONS, INC.

COUNTRYMAN PRODUCTIONS, LLC

CRASH TELEVISION PRODUCTIONS, INC.

DANCING ELK PRODUCTIONS, LLC

DD2 ACQUISITION CORP.

DEAD ZONE PRODUCTION CORP.

DEBMAR STUDIOS, INC.

DEBMAR/MERCURY (WW) PRODUCTIONS

LLC

DEBMAR/MERCURY, LLC

DELISH PROJECTS, LLC

DELISH TELEVISION DEVELOPMENT, LLC

DJM SERVICES, INC.

DODGE PRODUCTIONS LLC

DONOR PRODUCTIONS, INC.

DRESDEN FILES PRODUCTIONS CORP.

DRESDEN FILES PRODUCTIONS I CORP.

	
  

	
ENTERTAINMENT CAPITAL HOLDINGS

	
  

	
S.À R.L.

FILM HOLDINGS CO.

FIRST PICK PRODUCTIONS, INC.

FIRST PICK PRODUCTIONS, LLC

GC FILMS, INC.

GGX PRODUCTIONS, INC.

GHS PRODUCTIONS, LLC

GOOD EVEL PRODUCTIONS, INC.

GRINDSTONE ENTERTAINMENT GROUP,

LLC

HIGHER POST LLC

HORSEMEN PRODUCTIONS, LLC

HOUDINI PRODUCTIONS, INC.

INVISIBLE CASTING INC.

IV PRODUCTIONS, INC.

IV3D PRODUCTIONS CORP.

IWC PRODUCTIONS, LLC

JESSABELLE PRODUCTIONS, INC.

JUST REWARDS PRODUCTIONS, INC.

JV1 DELISH, LLC

KILL PIT PRODUCTIONS INC.

LADY PRISON PRODUCTIONS, INC.

LAMB PRODUCTIONS, INC.

LANDSCAPE ENTERTAINMENT CORP.

LAST PRODUCTIONS, INC.

LG HORROR CHANNEL HOLDINGS, LLC

LGAC 1, LLC

LGAC 3, LLC

LIONS GATE FILMS INC.

LIONS GATE INDIA INC.

LIONS GATE INTERNATIONAL SALES, LLC

LIONS GATE MANDATE FINANCING

VEHICLE INC.

LIONS GATE MUSIC CORP.

LIONS GATE MUSIC PUBLISHING LLC

LIONS GATE MUSIC, INC.

LIONS GATE ONLINE SHOP INC.

LIONS GATE PENNSYLVANIA, INC.

LIONS GATE RECORDS, INC.

  

[Signature Page to Amendment No. 1]

  

LIONS GATE SPIRIT HOLDINGS, LLC

LIONS GATE TELEVISION DEVELOPMENT

LLC

LIONS GATE TELEVISION INC.

LIONS GATE TELEVISION INTERNATIONAL

— LATIN AMERICA, INC.

LIONS GATE X PRODUCTIONS CORP.

LIONS GATE X PRODUCTIONS, LLC

LOG PRODUCTIONS, LLC

LOL PRODUCTIONS, LLC

LOVE LESSONS PRODUCTIONS, INC.

LUCKY 7 PRODUCTIONS CORP.

LUDUS PRODUCTIONS, INC.

LWH PRODUCTIONS, LLC

MANDATE FILMS, LLC

MANDATE PICTURES, LLC

MANIFEST ENTERTAINMENT, LLC

MERCURY PRODUCTIONS, LLC

MK ANIMATED, LLC

MORT PRODUCTIONS US, INC.

MOTHER PRODUCTIONS CORP.

MQP, LLC

NEXT PRODUCTION INC.

NGC FILMS, INC.

NR PRODUCTIONS, INC.

NURSE PRODUCTIONS INC.

PEARL RIVER HOLDINGS CORP.

PEEPLES PRODUCTIONS, INC.

PGH PRODUCTIONS, INC.

PLAYLIST, LLC

POWER MONGERING DESPOT, INC.

PROFILER PRODUCTIONS CORP.

PSYCHO PRODUCTIONS SERVICES CORP.

PWG PRODUCTIONS, INC.

PX1 PRODUCTIONS CORP.

PX1 PRODUCTIONS, INC.

R & B PRODUCTIONS, INC.

RABBIT PRODUCTIONS, INC.

RG PRODUCTIONS, INC.

SAINT PRODUCTIONS, INC.

SCREENING ROOM, INC.

SDI PRODUCTIONS, INC.

SELP, LLC

SILENT DEVELOPMENT CORP.

SKILLPA PRODUCTIONS, LLC

SPNBK PRODUCTIONS, INC.

SS3 PRODUCTIONS, INC.

STEP UP 5 PRODUCTIONS CANADA, INC.

SU5 PRODUCTIONS, INC.

SUMMIT DISTRIBUTION, LLC

SUMMIT ENTERTAINMENT DEVELOPMENT

SERVICES

SUMMIT ENTERTAINMENT, LLC

SUMMIT GUARANTY SERVICES, LLC

SUMMIT INTERNATIONAL DISTRIBUTION

INC.

SUMMIT PRODUCTIONS, LLC

SUMMIT SIGNATURE, LLC

SWEAT PRODUCTIONS, INC.

TCT PRODUCTIONS, INC.

TERM PRODUCTIONS, INC.

TERRESTRIAL PRODUCTIONS CORP.

TINY HORSE PRODUCTIONS, INC.

UNZ PRODUCTIONS, INC.

U.R.O.K. PRODUCTIONS, INC.

VERDICT PRODUCTIONS, INC.

VESTRON INC.

WEEDS PRODUCTIONS INC.

WILDE KINGDOM PRODUCTIONS CORP.

WOMEN IN COMEDY DOCUMENTARY, LLC

 

By: /s/ Wayne Levin            

Name: Wayne Levin

Title: Authorized Signatory

 

	  

[Signature Page to Amendment No. 1]

  

  

  

 

LENDERS:

 

JPMORGAN CHASE BANK, N.A.

individually and as Administrative Agent

 

By: /s/ Lynn M. Braun                                                     

Name: Lynn M. Braun

Title: “Authorized Signer”

Address:

Attention:

Facsimile:

 

 

 

	  

[Signature Page to Amendment No. 1]

  

  

  

BANK OF AMERICA

 

By: /s/ Brian Stearns          

    Name: Brian Stearns

Title: Senior Vice President

Address: 333 S Hope St. Los Angeles 90071

Attention: Brian Stearns

Facsimile: (213) 621-3611

 

	  

[Signature Page to Amendment No. 1]

  

  

  

BARCLAYS BANK PLC

 

By: /s/ Irina Dimova              

Name: Irina Dimova

Title: Vice President

Address: 745 Seventh Avenue

Attention: Irina Dimova

Facsimile: 212-526-5115

 

	  

[Signature Page to Amendment No. 1]

  

  

  

ROYAL BANK OF CANADA

 

 

By: /s/ Kamran Khan              

Name: Kamran Khan

Title: Authorized Signatory

 

	  

[Signature Page to Amendment No. 1]

  

  

  

WELLS FARGO BANK, NATIONAL ASSOCIATION

 

By: /s/ Kevin Harbour              

Name: Kevin Harbour

Title: Duly Authorized Signatory

 

	  

[Signature Page to Amendment No. 1]

  

  

  

SUNTRUST BANK

 

By: /s/ Brett Ross                 

Name: Brett Ross

Title: Vice President

Address: 303 Peachtree Street

               32nd Floor

               Atlanta, GA 30308

Attention:

Facsimile: 404-813-5260

 

	  

[Signature Page to Amendment No. 1]

  

  

  

UNION BANK, N.A.

 

By:/s/ Mike Richman                

Name: Mike Richman

Title: Vice President

Address: 1901 Avenue of the Stars

                Los Angeles, CA 90067

Facsimile: (310) 551-8980

 

	  

[Signature Page to Amendment No. 1]

  

  

  

CIT FINANCE LLC

 

By: /s/ Lance M. Zaremba              

Name: Lance M. Zaremba

Title: Authorized Signatory

Address:

Attention:

Facsimile:

 

 

 

	  

[Signature Page to Amendment No. 1]

  

  

  

COMERICA

 

By: /s/ Adam Korn                  

Name: Adam Korn

Title: Vice President

Address:

Attention:

Facsimile:

 

 

 

	  

[Signature Page to Amendment No. 1]

  

  

  

ONE WEST BANK, FSB

 

By: /s/ Joseph Woolf                

Name: Joseph Woolf

Title: Executive Vice President

Address: OneWest Bank, FSB

               2450 Broadway Ave., 4th Fl

               Santa Monica, CA 90404

Attention:

Facsimile: 866-483-9784

 

 

	  

[Signature Page to Amendment No. 1]

  

  

  

CITY NATIONAL BANK

 

By: /s/ Norman B. Starr               

Name: Norman B. Starr

Title: Senior Vice President

Address:

Attention:

Facsimile:

 

 

 

	  

[Signature Page to Amendment No. 1]

  

  

  

FIRST REPUBLIC BANK

 

By: /s/ Charles Heaphy             

Name: Charles Heaphy

Title: Senior Managing Director

Address: 1888 Century Park East

                Los Angeles, CA 90067

Attention: Charles Heaphy

Facsimile: (310) 407-1310

 

	  

[Signature Page to Amendment No. 1]

  

  

  

EAST WEST BANK

 

By: /s/ Jodi Chong                

Name: Jodi Chong

Title: Vice President

Address: 9378 Wilshire Blvd., Suite 100

Attention: Jodi Chong

Facsimile: (310) 755-8810

 

	  

[Signature Page to Amendment No. 1]

  

  

  

BANK LEUMI UK

 

By: /s/ G de Chalendar / Stuart Woodward        

Name: G de Chalendar / Stuart Woodward

Title: Vice President / Associate Vice President

Address: 20 Stratford Place, London, W1C1BC

Attention: Head of Media

Facsimile: +44 207 907 8023

	  

[Signature Page to Amendment No. 1]

  

  

  

MANUFACTURERS BANK

 

By: /s/ Charles Jou                

Name: Charles Jou

Title: Vice President

Address: 515 S. Figueroa St.

               Los Angeles, CA 90071

Attention: Charles Jou

Facsimile: 213-489-6028

 

 

[Signature Page to Amendment No. 1]10.1 REG 8K 12.24.13

EXHIBIT 10.1 

2014 AMENDED AND RESTATED
SEVERANCE AND CHANGE OF CONTROL AGREEMENT
THIS AGREEMENT, effective as of the 1st day of January, 2014, is by and between REGENCY CENTERS CORPORATION, a Florida corporation (the “Company”) and MARTIN E. STEIN, JR. (the “Employee”).
WHEREAS, the Company and the Employee previously entered into the 2011 Amended and Restated Severance and Change of Control Agreement, effective as of the 1st day of January, 2011 (the “Prior Agreement”); and
WHEREAS, to further induce the Employee to remain as an executive officer of the Company and a key employee of one or more of the Regency Entities (as defined below), the Company and the Employee desire to enter into this 2014 Amended and Restated Severance and Change Of Control Agreement (the “Agreement”) to replace and supersede the Prior Agreement; and
WHEREAS, the parties agree that the restrictive covenants underlying certain of the Employee’s obligations under this Agreement are necessary to protect the goodwill or other business interests of the Regency Entities and that such restrictive covenants do not impose a greater restraint than is necessary to protect such goodwill or other business interests.
NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, including the Employee’s agreement to continue as an executive officer of the Company and as an employee of one or more of the Regency Entities, the Employee’s agreement to provide consulting services following termination of employment pursuant to the terms hereof, and the restrictive covenants contained herein, the Employee and the Company agree as follows:
1.Definitions.  The following words, when capitalized in this Agreement, shall have the meanings ascribed below and shall supersede the meanings given to any such terms in any other award agreement or related plan document in effect prior to the date of this Agreement, including but not limited to the definitions of “Cause,” “Change of Control,” “Good Reason” or “Retirement”:

(a)“Affiliate” shall have the meaning given to such term in Rule 12b-2 of the General Rules and Regulations of the Exchange Act

(b)“Average Annual Cash Bonus” means the average of the annual cash bonus, if any, paid to the Employee with respect to the three (3) calendar years prior to termination of employment (or the period of the Employee’s employment, if shorter).
(c)“Base Performance Share Value” means the fair market value as of the date of the Change of Control of the unvested shares underlying the Employee’s maximum performance share opportunity outstanding immediately prior to the Change of Control.

(d)“Base Restricted Share Value” means the fair market value as of the date of the Change of Control of the shares underlying all of the Employee’s unvested time-vesting restricted stock awards or stock rights awards outstanding immediately prior to the Change of Control.

(e)“Board” means the Board of Directors of the Company.

(f)“Cause” means the termination of the Employee’s employment with the Company and all Regency Entities by action of the Board or its delegate for one or more of the following reasons:

(i)The Employee is convicted of committing a felony under any state, federal or local law.  For the purposes of this Agreement, conviction includes any final disposition of the initial charge which does not result in the charges being completely dismissed or in the Employee being completely acquitted and absolved from all liability, either criminal or civil;

(ii)The Employee materially breaches (A) this Agreement or (B) the Company’s policies and procedures, and the Employee fails to cure the breach to the reasonable satisfaction of the Company, if capable of cure, within thirty (30) days after written notice by the Company of the breach;

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(iii)The Employee engages in willful or gross misconduct or willful or gross negligence in performing the Employee’s duties, or fraud, misappropriation or embezzlement;

(iv)The Employee engages in conduct that, if known outside any of the Regency Entities, could reasonably be expected to cause harm to the reputation of the Company, and the Employee fails to cure the breach to the reasonable satisfaction of the Company, if capable of cure, within thirty (30) days after written notice by the Company of the breach; or

(v)The Employee fails to meet the reasonable expectations of management regarding performance of his or her duties, and the Employee fails to cure the breach to the reasonable satisfaction of the Company, if capable of cure, within thirty (30) days after written notice by the Company of the breach.

(g)“Change of Control” means the occurrence of an event or series of events which qualify as a change in control event for purposes of Section 409A of the Code and Treas. Reg. §1.409A-3(i)(5), including:

(i)A change in the ownership of the Company, which shall occur on the date that any one Person, or more than one Person Acting as a Group (as defined below), other than Excluded Person(s) (as defined below), acquires ownership of the stock of the Company that, together with the stock then held by such Person or group, constitutes more than fifty percent (50%) of the total fair market value of the stock of the Company.  However, if any one Person or more than one Person Acting as a Group is considered to own more than fifty (50%) of the total fair market value of the stock of the Company, the acquisition of additional stock by the same Person or Persons is not considered to cause a Change of Control.

(ii)A change in the effective control of the Company, which shall occur on the date that:

(1)Any one Person, or more than one Person Acting as a Group, other than Excluded Person(s), acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such Person or Persons) ownership of stock of the Company possessing thirty percent (30%) or more of the total voting power of the stock of the Company.  However, if any one Person or more than one Person Acting as a Group is considered to own more than thirty percent (30%) of the total voting power of the stock of the Company, the acquisition of additional voting stock by the same Person or Persons is not considered to cause a Change of Control; or

(2)A majority of the members of the Board is replaced during any twelve (12) month period by directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election.

(iii)A change in the ownership of a substantial portion of the Company’s assets, which shall occur on the date that any one Person, or more than one Person Acting as a Group, other than Excluded Person(s), acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total Gross Fair Market Value (as defined below) equal to more than fifty percent (50%) of the total Gross Fair Market Value of all the assets of the Company immediately prior to such acquisition or acquisitions, other than an Excluded Transaction (as defined below).

For purposes of this Subsection (g):
“Gross Fair Market Value” means the value of the assets of the Company, or the value of the assets being disposed of, as applicable, determined without regard to any liabilities associated with such assets.
Persons will not be considered to be “Acting as a Group” solely because they purchase or own stock of the Company at the same time, or as a result of the same public offering, or solely because they purchase assets of the Company at the same time, or as a result of the same public offering, as the case may be.  However, Persons will be considered to be Acting as a Group if they are owners of an entity that enters into a merger, consolidation, purchase or acquisition of assets, or similar business transaction with the Company.
The term “Excluded Transaction” means any transaction in which assets are transferred to:  (A) a shareholder of the Company (determined immediately before the asset transfer) in exchange for or with respect to its stock; (B) an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the Company (determined after the asset transfer); (C) a Person, or more than one Person Acting as a Group, that owns, 

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directly or indirectly, fifty percent (50%) or more of the total value or voting power of all the outstanding stock of the Company (determined after the asset transfer); or (D) an entity at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by a Person described in clause (C) (determined after the asset transfer).
The term “Excluded Person(s)” means (A) the Company or any Regency Entity; (B) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Regency Entity; (C) an underwriter temporarily holding securities pursuant to an offering of such securities; or (D) a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of stock in the Company.
The term “Change of Control” as defined above shall be construed in accordance with Code Section 409A and the regulations promulgated thereunder.
(h)“Code” means the Internal Revenue Code of 1986, as amended.

(i)“Exchange Act” means the Securities Exchange Act of 1934, as amended.

(j)“General Release” means (i) a release of the Regency Entities, in such form as the Company may reasonably request, of all claims against the Regency Entities relating to the Employee’s employment and termination thereof, and (ii) an agreement to continue to comply with, and be bound by, the provisions of Section 16 hereof.  

(k)“Good Reason” means any one or more of the following conditions:

(i)any material diminution of the Employee’s authority, duties or responsibilities;

(ii)a material diminution of the Employee’s base compensation;

(iii)a material diminution in the budget over which the Employee retains authority;

(iv)a material change in the geographic location at which the Employee must perform the Employee’s duties and responsibilities; or

(v)any other action or inaction by the Company that constitutes a material breach of this Agreement or any other agreement pursuant to which the Employee provides services to the Company.

A termination of the Employee’s employment for Good Reason shall be effective only if (x) such condition was not consented to by the Employee in advance or subsequently ratified by the Employee in writing, (y) such condition remains in effect thirty (30) days after the Employee gives written notice to the Board of the Employee’s intention to terminate his or her employment for Good Reason, which notice specifically identifies such condition, and (z) the Employee gives the notice referred to in (y) above within ninety (90) days of the initial existence of such condition.  If the Company does not cure the condition within the thirty (30) day cure period described in (y) above, then the Employee’s termination will occur on the day immediately following the end of the cure period.  If the Company cures the condition within such thirty (30) day cure period, then the Employee will be deemed to have withdrawn his notice of termination effective as of the date the cure is effected.   
(l)“Medical Benefits” shall mean the monthly fair market value of benefits provided to the Employee and the Employee’s dependents under the major medical, dental and vision benefit plans sponsored and maintained by the Company, at the level of coverage in effect for such persons immediately prior to the Employee’s termination of employment date.  The “monthly fair market value” of such benefits shall be equal to the monthly cost as if such persons elected COBRA continuation coverage at such time at their own expense.

(m)“Person” means a “person” as used in Sections 3(a)(9) and 13(d) of the Exchange Act or any group of Persons acting in concert that would be considered “persons acting as a group” within the meaning of Treasury Regulation § 1.409A-3(i)(5).
(n)“Prime Rate” means an annual rate, compounding annually, equal to the prime rate, as reported in The Wall Street Journal on the date of the Change of Control, or if not reported on that date, the last preceding date on which so reported (the “Prime Rate”), which rate shall be adjusted on each January 1 to the Prime Rate then in effect and shall remain in effect for the year.
(o)“Qualifying Retirement” means that the Employee has previously delivered written notice of Retirement to the Company and on the date of Retirement the Employee has satisfied the minimum applicable advance written notice requirement set forth below:

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	Age at
Voluntary Termination
	Number of Years of
Advance Notice

	58 or younger
59
60 or older
	3 years
2 years
1 year

By way of illustration, and without limiting the foregoing, if (i) the Employee is eligible to retire at age fifty-nine (59) after ten (10) years of service, (ii) the Employee gives two (2) years notice at age fifty-eight (58) that the Employee intends to retire at age sixty (60), and (iii) the Employee later terminates employment at age fifty-nine (59), then the Employee’s retirement at age fifty-nine (59) would not constitute a Qualifying Retirement.  However, if (i) the Employee is eligible to retire at age fifty-nine (59) after ten (10) years of service, (ii) the Employee gives two (2) years notice at age fifty-eight (58) that the Employee intends to retire at age sixty (60), and (iii) the Employee terminates employment upon reaching age sixty (60), then the Employee’s retirement at age sixty (60) would constitute a Qualifying Retirement.
(p)“Regency Entity” or “Regency Entities” means the Company, its Affiliates, and any other entities that along with the Company is considered a single employer pursuant to Section 414(b) or (c) of the Code and the Treasury regulations promulgated thereunder, determined by applying the phrase “at least 50 percent” in place of the phrase “at least 80 percent” each place it appears in such Treasury regulations or Section 1563(a) of the Code.

(q)“Retirement” means the Employee’s voluntary termination of employment after (i) attaining age sixty-five (65), (ii) attaining age fifty-five (55) with ten (10) years of service as a full-time employee of the Company or any of its Affiliates, or (iii) attaining an age which, when added to such years of service of the Employee equals at least seventy-five (75).

(r)“Separation from Service” means the termination of the Employee’s employment with the Company and all Regency Entities, provided that, notwithstanding such termination of the employment relationship between the Employee and the Company and all Regency Entities, the Employee shall not be deemed to have had a Separation from Service where it is reasonably anticipated that the level of bona fide services that the Employee will perform (whether as an employee or independent contractor) following such termination for the Company and all Regency Entities would be twenty percent (20%) or more of the average level of bona fide services performed by the Employee (whether as an employee or independent contractor) for the Company and all Regency Entities over the immediately preceding thirty-six (36) month period (or such lesser period of actual service).  In such event, Separation from Service shall mean the permanent reduction of the level of bona fide services to be performed by the Employee (whether as an employee or independent contractor) to a level that is less than twenty percent (20%) of the average level of bona fide services performed by the Employee (whether as an employee or independent contractor) during the thirty-six (36) month period (or such lesser period of actual service) immediately prior to the termination of the Employee’s employment relationship.  A Separation from Service shall not be deemed to have occurred if the Employee is absent from active employment due to military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed the greater of (i) six (6) months or (ii) the period during which the Employee’s right to reemployment by the Company or any Regency Entity is provided either by statute or contract.

(s)“Specified Employee” means an employee of the Company or any Regency Entity who is a “specified employee” as defined in Section 409A(a)(2)(b)(i) of the Code and Treas. Reg. §1.409A-1(i).  If the Employee is a key employee as of the applicable identification date, the Employee shall be treated as a Specified Employee for the twelve (12) month period beginning on the first day of the fourth month following such identification date.  The applicable identification date for purposes of this Agreement shall be September 30 of each year.

(t)“Unvested Equity Award” has the meaning given to such term in Section 6(a).

(u)“Years of Service” means the Employee’s total years of employment with a Regency Entity, including years of employment with an entity that is acquired by a Regency Entity prior to such acquisition.

2.Term of the Agreement.  The term of this Agreement shall begin on the date hereof and end at 11:59 p.m. on December 31, 2016, and thereafter shall automatically renew for successive three (3) year terms unless either party delivers written notice of non-renewal to the other party at least ninety (90) days prior to the end of the then current term; provided, however, that if a Change of Control has occurred during the original or any extended term (including any extension resulting from a prior Change of Control), the term of the Agreement shall end no earlier than twenty-four (24) calendar months after the end of the calendar month in which the Change of Control occurs.

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3.No Change of Control - Severance.  Except in circumstances in which the Employee would be entitled to payments and benefits in connection with a Change of Control as provided in Section 4 below, in the event that during the term of this Agreement the Employee has a Separation from Service as a result of the Company terminating the Employee’s employment without Cause or the Employee terminating the Employee’s employment for Good Reason, the Company shall pay to the Employee an amount equal to the sum of (i) eighteen (18) months of the Employee’s base monthly salary in effect on the date the Employee’s employment terminates, (ii) one-hundred fifty percent (150%) of the Employee’s Average Annual Cash Bonus, and (iii) eighteen (18) months of the Employee’s Medical Benefits.  Subject to Section 11 below, payment shall be made in a lump sum on the first business day after sixty (60) days following the Employee’s Separation from Service.

4.Change of Control - Severance.  In the event that during the term of this Agreement the Company terminates the Employee’s employment without Cause or the Employee terminates the Employee’s employment for Good Reason, in each case within two (2) years following a Change of Control, the following provisions shall apply:

(a)The Company shall pay to the Employee an amount equal to the sum of (i) thirty-six (36) months of the Employee’s monthly base salary in effect on the date the Employee’s employment terminates, (ii) three-hundred percent (300%) of the Employee’s Average Annual Cash Bonus, and (iii) thirty-six (36) months of the Employee’s Medical Benefits.  Subject to Section 11 below, payment shall be made in a lump sum on the first business day after sixty (60) days following the Employee’s Separation from Service.

(b)All unvested stock options, restricted stock, stock rights awards, and performance share awards granted to the Employee, which are not subject to Section 409A of the Code, will vest (as if the maximum performance goals were met, for any such award subject to performance goals) on the date the General Release in Section 15 becomes effective, and, if applicable, will be paid on the tenth (10th) business day following such time.  All such awards which are subject to Section 409A of the Code will vest (as if the maximum performance goals were met, for any such award subject to performance goals), and, if applicable, will be paid on the first (1st) business day after sixty (60) days following the Employee’s Separation from Service.

(c)If the Employee’s Unvested Equity Awards have been exchanged pursuant to Section 6(c) for the right to receive a contingent cash payment based on the Base Restricted Share Value or a contingent cash payment based on the Base Performance Share Value, subject to Section 11 below, the Employee shall receive a cash payment made in a lump sum on the first business day after sixty (60) days following the Employee’s Separation from Service equal to any portion of the unpaid Base Restricted Share Value and/or the unpaid Base Performance Share Value, as the case may be, that has not been paid pursuant to Section 6(c), together with accrued but unpaid interest at the Prime Rate on such unpaid amount from the date of the Change of Control to the date of payment.  For the sake of clarity, if Section 6(c) applies, then the Employee shall be entitled to a cash payment pursuant to this Section (b) but shall not receive any stock pursuant to Section 4(b) or 4(c).

5.Entitlement to Severance.  If the Employee dies after receiving a notice by the Company that the Employee is being terminated without Cause, or after providing notice of termination for Good Reason, but prior to the date the Employee receives the payments and benefits described in Section 3 or Section 4, as the case may be, then the Employee’s estate, heirs and beneficiaries shall be entitled to the payments and benefits described in Section 3 or Section 4, as the case may be, at the same time such payments and benefits would have been paid or provided to the Employee had the Employee lived.

6.Change of Control - Stock Rights Where There is No Termination of Employment.

(a)In the event there is no termination of Employee’s employment upon a Change of Control, and except as otherwise provided in Sections 6(b) and 6(c) below (or in Sections 4(b) or 4(c), if applicable), the occurrence of a Change of Control shall not impact any existing unvested stock options, restricted stock or stock rights awards or performance share awards (collectively, “Unvested Equity Awards”) unless such rights are cashed out pursuant to the terms of the applicable merger agreement or other agreement(s) pursuant to which such Change of Control is effected.

(b)If immediately after a Change of Control the Company no longer exists because of a reorganization, merger, consolidation, combination or other similar corporate transaction or event, but the stock underlying performance shares (after giving effect to such corporate transaction or event) is readily tradable on an established securities market, then notwithstanding anything to the contrary contained in the related plan or award agreement, all of the Employee’s outstanding unvested performance share awards shall be converted to time-vesting stock rights awards and shall cliff vest in their entirety on the last day of the performance period, provided that the Employee remains employed by the Company’s successor or an Affiliate thereof on the date of vesting.

(c)If the stock underlying Unvested Equity Awards is not readily tradable on an established securities market immediately after the Change of Control (after giving effect to any conversion, exchange or replacement pursuant to the 

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applicable plan or award agreement of the stock underlying Unvested Equity Awards as a result of a reorganization, merger, consolidation, combination or other similar corporate transaction or event), notwithstanding anything to the contrary contained in the related plan or award agreement, all of the Employee’s outstanding Unvested Equity Awards shall be cancelled and, in consideration for the cancellation of such awards, the Employee shall receive:

(i)a cash payment equal to (x) the fair market value of the shares underlying all of the Employee’s unvested stock options as of the date of the Change of Control less (y) the aggregate exercise price of such stock options, such cash payment to be made within thirty (30) days after the Change of Control;

(ii)a deferred contingent cash payment equal to (x) the Base Restricted Share Value, plus (y) interest on the unpaid Base Restricted Share Value from the date of the Change of Control to the date of payment at the Prime Rate, such cash payment of the Base Restricted Share Value to be made in installments on the applicable vesting dates with respect to the number of shares that would have been issued on that vesting date, plus all accrued but unpaid interest on the unpaid Base Restricted Share Value through such vesting date, provided that the Employee remains employed by the Company or its successor or an Affiliate thereof on the date of vesting; and

(iii)a deferred contingent cash payment equal to (x) the Base Performance Share Value, plus (y) interest on the unpaid Base Performance Share Value from the date of the Change of Control to the date of payment at the Prime Rate, such cash payment of the Base Performance Share Amount to be made in annual installments on the last day of each year with respect to the number of the shares that would have vested on that date, assuming the unvested performance shares underlying the Employee’s maximum performance share opportunity outstanding immediately prior to the Change of Control had become time-vesting shares that vested in equal annual installments on the last day of each year of the performance period remaining after the Change of Control, plus all accrued but unpaid interest on the unpaid Base Performance Share Amount, provided that the Employee remains employed by the Company or its successor or an Affiliate thereof on the date of vesting.

7.Change of Control - Excise Tax.

(a)If in the opinion of Tax Counsel (as defined in Section 7(b)) the Employee will be subject to an excise tax under Code Section 4999 with respect to some portion of the payments and benefits to be made by the Company to the Employee following a termination of the Employee’s employment, under this Agreement or otherwise, then the Company and the Employee agree that the amount of payments and benefits to be made by the Company to the Employee under this Agreement shall be reduced such that the present value of all payments and benefits to be received by the Employee that would be considered to be “parachute payments” for purposes of Section 280G of the Code is reduced to 299.99% of the Employee’s “base amount” for purposes of Section 280G of the Code (“Scaled Back Amount”).  If the Employee is entitled to the Scaled Back Amount, then such payments and benefits shall be reduced or eliminated by applying the following principles, in order:  (1) the payment or benefit with the higher ratio of the parachute payment value to present economic value (determined using reasonable actuarial assumptions) shall be reduced or eliminated before a payment or benefit with a lower ratio; (2) the payment or benefit with the later possible payment date shall be reduced or eliminated before a payment or benefit with an earlier payment date; and (3) cash payments shall be reduced prior to non-cash benefits; provided that if the foregoing order of reduction or elimination would violate Code Section 409A, then the reduction shall be made pro rata among the payments or benefits to be received by the Employee (on the basis of the relative present value of the parachute payments).

(b)For purposes of this Section 7, within forty (40) days after delivery of a written notice of termination by the Employee or by the Company pursuant to this Agreement within two (2) years of a Change in Control with respect to the Company (or, if an event other than termination of employment results in payment of parachute payments under Section 280G and it is reasonably possible that such parachute payments could result in an excise tax, within forty (40) days after such other event), the Company shall obtain, at its expense, the opinion (which need not be unqualified) of nationally recognized tax counsel (“Tax Counsel”) selected by the Compensation Committee of the Board, which sets forth (i) the “base amount” within the meaning of Section 280G; (ii) the aggregate present value of the payments in the nature of compensation to the Employee as prescribed in Section 280G(b)(2)(A)(ii); (iii) the amount and present value of any “excess parachute payment” within the meaning of Section 280G(b)(1); and (iv) the amount and nature of the parachute payments to be reduced or forfeited according to Section 7(a) in order for the total payments and benefits to equal the Scaled Back Amount .  For purposes of such opinion, the value of any non-cash benefits or any deferred payment or benefit shall be determined by the Company’s independent auditors in accordance with the principles of Section 280G and regulations thereunder, which determination shall be evidenced in a certificate of such auditors addressed to the Company and the Employee.  Such opinion shall be addressed to the Company and the Employee and shall be binding upon the Company and the Employee.

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8.Plan of Liquidation.  If the shareholders of the Company approve a complete plan of liquidation or dissolution of the Company (“Approved Liquidation Plan”), all Unvested Equity Awards will fully vest on the date of such approval.  Shares of common stock that so vest will be deemed outstanding as of the close of business on the date of such approval, and certificates representing such shares shall be delivered to the Employee as promptly as practicable thereafter.  In addition, unless the Approved Liquidation Plan shall have been rescinded, if the Company terminates the Employee’s employment without Cause or the Employee terminates the Employee’s employment for Good Reason in each case following shareholder approval of the Approved Liquidation Plan, then the Employee shall receive the benefits provided in Sections 4(a), 4(b) or 4(c).

9.Retirement and Performance Shares.  If the Employee’s termination of employment constitutes a Qualifying Retirement, the Employee shall receive the benefits provided in Section 4(b) or 4(c) with respect to unvested stock options, restricted stock and stock rights awards (other than performance shares).  Notwithstanding anything to the contrary in any related plan or award agreement, the Employee shall be entitled to exercise all vested stock options until the earlier of (a) three years after the date of Qualifying Retirement, and (b) the original terms of the options.  Upon Retirement or Qualifying Retirement, the Employee shall continue to have the right to earn unvested performance shares upon the achievement of the applicable performance goals over any remaining performance period, as if the Employee’s employment had not been terminated.

10.Death and Disability.  In no event shall a termination of the Employee’s employment due to death or Disability constitute a termination by the Company without Cause or a termination by the Employee for Good Reason; however, upon termination of employment due to the Employee’s death or Disability, the Employee’s estate or the Employee, as applicable, shall receive the benefits provided in Section 4(b) or 4(c) with respect to unvested stock options, restricted stock and stock rights awards (other than performance shares), and the Employee’s estate or the Employee, as applicable, shall continue to have the right to earn unvested performance shares upon the achievement of the applicable performance goals over any remaining performance period, as if the Employee’s employment had not been terminated.  Notwithstanding anything to the contrary in any related plan or award agreement, (a) the Employee’s estate shall be entitled to exercise all vested stock options until the earlier of (i) three years after termination of employment due to death, and (ii) the original term of the option, and (b) the Employee shall be entitled to exercise all vested stock options until the earlier of (i) one year after termination of employment due to Disability, and (ii) the original term of the option.  For purposes of this Agreement, the Employee shall be deemed terminated for Disability if the Employee is (or would be if a participant) entitled to long-term disability benefits under the Company’s disability plan or policy or, if no such plan or policy is in place, if the Employee has been unable to substantially perform his or her duties, due to physical or mental incapacity, for one-hundred eighty (180) consecutive days.

11.Payments to Specified Employees.  Notwithstanding any other Section of this Agreement, if the Employee is a Specified Employee at the time of the Employee’s Separation from Service, payments or distribution of property to the Employee provided under this Agreement, to the extent considered amounts deferred under a non-qualified deferred compensation plan (as defined in Section 409A of the Code) shall be deferred until the six (6) month anniversary of such Separation from Service to the extent required in order to comply with Section 409A of the Code and Treasury Regulation 1.409A-3(i)(2).

12.Reductions in Base Salary.  For purposes of this Agreement, in the event there is a reduction in the Employee’s base salary that would constitute the basis for a termination for Good Reason, the base salary used for purposes of calculating the severance payable pursuant to Sections 3 or 4(a), as the case may be, shall be the amounts in effect immediately prior to such reduction.

13.Other Payments and Benefits.  On any termination of employment, including, without limitation, termination due to the Employee’s death or Disability (as defined in Section 10) or for Cause, the Employee shall receive any accrued but unpaid salary, reimbursement of any business or other expenses incurred prior to termination of employment but for which the Employee had not received reimbursement, and any other rights, compensation and/or benefits as may be due the Employee in accordance with the terms and provisions of any agreements, plans or programs of the Company (but in no event shall the Employee be entitled to duplicative rights, compensation and/or benefits).

14.Set Off; Mitigation.  The Company’s obligation to pay or provide the Employee the amounts or benefits hereunder this Agreement shall be subject to set-off, counterclaim or recoupment of amounts owed by the Employee to the Company.  In addition, except as provided in Section 7 with respect to the Scaled Back Amount, the Employee shall not be required to mitigate the amount of any payments or benefits provided to the Employee hereunder by securing other employment or otherwise, nor will such payments and/or benefits be reduced by reason of the Employee securing other employment or for any other reason.

15.Release.  Notwithstanding any provision herein to the contrary, the Company shall not have any obligation to pay any amount or provide any benefit, as the case may be, under this Agreement, unless the Employee executes, delivers to the Company, and does not revoke (to the extent the Employee is allowed to do so as set forth in the General Release), a General Release within sixty (60) days of the Employee’s termination of employment.

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16.Restrictive Covenants and Consulting Arrangement.

(a)The Employee will not use or disclose any confidential information of any Regency Entity without the Company’s prior written consent, except in furtherance of the business of the Regency Entities or except as may be required by law.  Additionally, and without limiting the foregoing, the Employee agrees not to participate in or facilitate the dissemination to the media or any other third party (i) of any confidential information concerning any Regency Entity or any employee of any Regency Entity, or (ii) of any damaging or defamatory information concerning any Regency Entity or the Employee’s experiences as an employee of any Regency Entity, without the Company’s prior written consent except as may be required by law.  Notwithstanding the foregoing, this Section 16(a) does not apply to information which is already in the public domain through no fault of the Employee.

(b)During the Employee’s employment and during the one (1) year period after the Employee ceases to be employed by any of the Regency Entities, the Employee agrees that:

(i)the Employee shall not directly or knowingly and intentionally through another party recruit, induce, solicit or assist any other Person in recruiting, inducing or soliciting (A) any other employee of any Regency Entity to leave such employment or (B) any other Person with which any Regency Entity was actively conducting negotiations for employment on the date of termination of the Employee’s employment (the “Termination Date”); and 

(ii)the Employee shall not personally solicit, induce or assist any other Person in soliciting or inducing (A) any tenant in a shopping center of any Regency Entity that was a tenant on the Termination Date to terminate a lease, or (B) any tenant, property owner, co-investment partner or build-to-suit customer with whom any Regency Entity had a lease, acquisition contract, business combination contract, co-investment partnership agreement or development contract on the Termination Date to terminate such lease or other contract, or (C) any prospective tenant, property owner, co-investor partner or build-to-suit customer with which any Regency Entity was actively conducting negotiations on the Termination Date with respect to a lease, acquisition, business combination, co-investment partnership or development project to cease such negotiations.

(c)For a six (6) month period following any termination of employment, the Employee agrees to make himself available and, upon and as requested by the Company from time to time, to provide consulting services with respect to any projects the Employee was involved in prior to such termination and/or to provide such other consulting services as the Company may reasonably request.  The Employee will be reimbursed for reasonable travel and miscellaneous expenses incurred in connection with the provision of requested consulting services hereunder.  The Company will provide the Employee reasonable advance notice of any request to provide consulting services, and will make all reasonable accommodations necessary to prevent the Employee’s commitment hereunder from materially interfering with the Employee’s employment obligations, if any.  In no event will the Employee be required to provide more than twenty (20) hours of consulting services in any one month to the Company pursuant to this provision.

(d)The parties agree that any breach of this Section 16 will result in irreparable harm to the non-breaching party which cannot be fully compensated by monetary damages and accordingly, in the event of any breach or threatened breach of this Section 16, the non-breaching party shall be entitled to injunctive relief.  Should any provision of this Section 16 be determined by a court of law or equity to be unreasonable or unenforceable, the parties agree that to the extent it is valid and enforceable, they shall be bound by the same, the intention of the parties being that the parties be given the broadest protection allowed by law or equity with respect to such provision.

17.Survival.  The provisions of Sections 3 through 22 shall survive the termination of this Agreement to the extent necessary to enforce the rights and obligations described therein.

18.Compliance with Section 409A of the Code.  For purposes of applying the provisions of Section 409A of the Code to this Agreement, each separately identified amount to which the Employee is entitled under this Agreement shall be treated as a separate payment.  In addition, to the extent permissible under Section 409A of the Code, any series of installment payments under this Agreement shall be treated as a right to a series of separate payments.  Whenever a payment under this Agreement specifies a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the Company. 

19.Withholding.  The Company shall withhold from all payments to the Employee hereunder all amounts required to be withheld under applicable local, state or federal income and employment tax laws.

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20.Clawbacks.  All incentive-based compensation paid to the Employee hereunder will be subject to the Company’s policy regarding clawbacks of erroneously awarded incentive-based compensation triggered by an accounting restatement, as required by law and approved by the Board.

21.Dispute Resolution.  Any dispute, controversy or claim between the Company and the Employee or other person arising out of or relating to this Agreement shall be settled by arbitration conducted in the City of Jacksonville, Florida, in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association then in force and Florida law within thirty (30) days after written notice from one party to the other requesting that the matter be submitted to arbitration; provided that this Section 21 shall not apply to, and the Company shall be free to seek, injunctive or other equitable relief with respect to any actual or threatened violation by the Employee of his or her obligations under Section 16 hereof in any court of competent jurisdiction.  The arbitration decision or award shall be binding and final upon the parties.  The arbitration award shall be in writing and shall set forth the basis thereof.  The parties hereto shall abide by all awards rendered in such arbitration proceedings, and all such awards may be enforced and executed upon in any court having jurisdiction over the party against whom enforcement of such award is sought.  Each party shall be responsible for its own costs and expenses in any dispute or proceeding regarding the enforcement of this Agreement.

22.Miscellaneous.  This Agreement shall be construed and enforced in accordance with the laws of the State of Florida (exclusive of conflict of law principles).  In the event that any provision of this Agreement shall be invalid, illegal or unenforceable, the remainder shall not be affected thereby.  This Agreement supersedes and terminates any prior employment agreement, severance agreement, change of control agreement or non-competition agreement between the Company and the Employee.  It is intended that the payments and benefits provided under this Agreement are in lieu of, and not in addition to, termination, severance or change of control payments and benefits provided under the Company’s other termination or severance plans, policies or agreements, if any.  This Agreement shall be binding upon and inure to the benefit of the Employee and the Employee’s heirs and personal representatives and the Company and its successors, assigns and legal representatives.  Headings herein are inserted for convenience and shall not affect the interpretation of any provision of the Agreement.  References to sections of the Exchange Act or the Code, or rules or regulations related thereto, shall be deemed to refer to any successor provisions, as applicable.  The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to expressly assume and agree to perform under this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.  This Agreement may not be terminated, amended, or modified except by a written agreement executed by the parties hereto or their respective successors and legal representatives.

23.Counterparts.  This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. 
	
		
	 
	REGENCY CENTERS CORPORATION

	 
	/s/ John C. Schweitzer

	 
	John C. Schweitzer

	 
	Its: Lead Director

	 
	 

	 
	Martin E. Stein Jr.

	 
	/s/ Martin E. Stein Jr.

 

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