Document:

Ex 10.100 Keegan Retirement and Consulting Services Agreement

Exhibit 10.100

RETIREMENT AND CONSULTING SERVICES AGREEMENT

THIS AGREEMENT (“Agreement”) is made on the 19th day of September, 2013 between James Keegan (hereinafter referred to as “CONSULTANT”) and Lions Gate Entertainment Inc. (hereinafter referred to as “CLIENT”). 

 Reference is hereby made to that certain employment agreement between CONSULTANT and CLIENT dated February 22, 2013 (the “Employment Agreement”).  

WHEREAS, CONSULTANT desires to retire from employment under the Employment Agreement; 

WHEREAS, CLIENT has accepted CLIENT’s retirement from employment under the terms of the Employment Agreement; and 

WHEREAS, CLIENT desires to retain the services of CONSULTANT for the purpose of rendering services in finance, of which CONSULTANT has knowledge and experience.

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

1.    Services

		
	1.1
	CONSULTANT’s services hereunder shall be rendered to CLIENT commencing October 1, 2013 and ending on January 3, 2014 (“Term”).

		
	1.2
	Termination and Non-Renewal

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

		
	(A)
	The mutual written agreement between CLIENT and CONSULTANT; 

		
	(B)
	The death of CONSULTANT; 

		
	(C)
	CONSULTANT’s having become so physically or mentally disabled as to be incapable, even with a reasonable accommodation, of satisfactorily performing CONSULTANT’s duties hereunder for a period of ninety (90) days or more, provided that CONSULTANT has not cured disability within ten days of written notice; 

		
	(D)
	The determination on the part of CLIENT that “cause” exists for termination of this Agreement.  As used herein, “cause” is defined as the occurrence of any of the following:  

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

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

		
	(iii)
	material breach of this Agreement by CONSULTANT; or 

		
	(iv)
	any act of misconduct by CONSULTANT having a substantial adverse effect on the business or reputation of CLIENT; 

          
In the event that this Agreement is terminated pursuant to Sections 1.2(A)-(D) above, neither CLIENT nor CONSULTANT shall have any remaining duties or obligations hereunder.  Following the termination of the Term and/or this Agreement for any reason, Sections 2-14 shall, notwithstanding anything else herein to the contrary, survive and continue to be binding upon the parties following such termination.

		
	1.3
	CONSULTANT agrees that the acceptability or suitability of the services provided by

him hereunder is solely within the absolute discretion of CLIENT.

		
	1.4
	CONSULTANT agrees to communicate with CLIENT on a regular basis established by CLIENT, the progress of any and all current projects.

		
	1.5
	CLIENT and CONSULTANT agree that CONSULTANT shall coordinate the services provided hereunder with Chief Executive Officer, currently Jon Feltheimer, or CLIENT’s designee.

		
	1.6
	CONSULTANT’s services to CLIENT shall be on an exclusive basis.

		
	1.7
	In full and final satisfaction of any and all of CLIENT’s obligations under the Employment Agreement, CLIENT agrees to pay James Keegan the amount of FIVE HUNDRED TWENTY-FIVE THOUSAND DOLLARS ($525,000.00), less lawful and customary withholdings, within ten (10) business days of the execution of this Agreement.  After such payment, all of CLIENT’s obligations to CONSULTANT under the Employment Agreement shall be deemed satisfied other than as set forth in paragraph 1.10 below. 

		
	1.8
	CONSULTANT shall be compensated at a rate of THIRTY-THREE THOUSAND THREE HUNDRED THIRTY-THREE AND 33/100 DOLLARS ($33,333.33) per month as long as he provides meaningful services hereunder.  Invoices should be approved, submitted and paid through the Accounting and Finance Department in accordance with CLIENT’s accounts payable policies.

		
	1.9
	If CONSULTANT opts to convert and continue his health insurance with CLIENT after September 30, 2013, as may be required or authorized by law under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, (“COBRA”) or the California Continuation Benefits Replacement Act (“Cal-COBRA”), CLIENT shall, until the earlier of either (A) thirty-six (36) months or (B) the date that CONSULTANT becomes eligible for health benefits with a company or employer other than CLIENT, pay or reimburse CONSULTANT for the monthly premiums for said converted and continued health insurance.

		
	1.10
	CLIENT agrees that following execution of this Agreement and any revocation period required by applicable law, any portion of the restricted share units granted pursuant to the Restricted Share Unit Award Agreements between CONSULTANT and Lions Gate Entertainment Corp. (“LGEC”) dated as of February 23, 2012 and June 21, 2013 and stock options granted pursuant to the Nonqualified Stock Option Agreement between CONSULTANT and LGEC dated March 14, 2013 (collectively, the “Grants”) that is scheduled to vest prior to October 1, 2014 shall accelerate and immediately become fully vested.  CLIENT further agrees that on January 3, 2014 any remaining portion of the Grants then outstanding and unvested shall accelerate and immediately become fully vested, subject to CONSULTANT’s provision of services hereunder through such date.

		
	2.
	Consultant’s Status

The parties acknowledge that CONSULTANT is an independent contractor, and is not nor shall he be deemed to be an employee of CLIENT, nor shall he be entitled to any of the benefits provided by CLIENT to its employees, including but not limited to any vacation, sickness or disability pay from CLIENT.  CLIENT and/or its affiliates or successors shall have no responsibility under any workers compensation scheme or laws for any injury or illness that CONSULTANT may sustain in the course of rendering services hereunder.  CONSULTANT shall, promptly upon commencement of the services hereunder, furnish CLIENT with CONSULTANT’s social security number.  CONSULTANT shall bear the exclusive responsibility for payment of all federal, state and local income taxes, and unemployment insurance payments.  CONSULTANT shall also be solely responsible for providing Workers’ Compensation insurance and shall indemnify and hold CLIENT harmless from and against any liability with respect to any of the above-mentioned.

		
	3.
	Assignment

This Agreement and the rights and obligations specified herein are not assignable by CONSULTANT or by operation of law without the prior written consent of CLIENT.  CLIENT shall be free to assign this Agreement and its rights and obligations hereunder to any affiliate, subsidiary or successor entity.

		
	4.
	Binding Effect

This Agreement shall be binding upon and inure to the benefit of the heirs, assigns (if any) and successors in interest of CLIENT.

		
	5.
	Warranties

Except as herein specifically stated, there are no warranties made by either party, express or implied.  CONSULTANT agrees (a) to provide the services described herein according to the standard of care and competence provided by competent experienced consultants of good reputation and status equal to CONSULTANT’s; (b) that any material, designs, concepts, etc. contributed in the performance of CONSULTANT’s services shall be wholly original with CONSULTANT and the use hereof by CLIENT will not in any way infringe upon or violate any rights whatsoever of any person or entity; and (c) that CONSULTANT will not employ any persons, contract for the purchase or lease of any material, nor make any agreement committing CLIENT to pay any sum of money or incur any other obligation whatsoever without first obtaining the prior written approval of CLIENT.

		
	6.
	Allocation of Liability and Indemnity

		
	6.1
	CONSULTANT shall not be liable for failure to provide the services set forth herein if such failure is due to force majeure, i.e., any cause or condition beyond CONSULTANT’s control.

		
	6.2
	CONSULTANT shall be liable for any and all loss, claim, damage, demand or expense whatsoever, arising out of or in connection with this Agreement, caused by the gross, willful or intentional negligence of CONSULTANT or the breach of any of the CONSULTANT’s warranties and representations in this Agreement.

		
	7.
	Arbitration

Any controversy or claim between or among CONSULTANT and CLIENT arising out of or relating to this Agreement or any breach of this Agreement shall be settled by arbitration.  Any such arbitration shall be held in Los Angeles, California and shall be conducted in accordance with the Commercial Arbitration Rules of the American Arbitration Association.  The arbitration panel shall consist of three (3) arbitrators to be selected pursuant to such Commercial Arbitration Rules.  The arbitration proceedings, all documents 

related hereto and all testimony, written or oral, and the arbitration award shall be confidential, except with respect to any proceedings commenced to compel arbitration or to enforce the arbitration award or as otherwise required by law.  Each party hereto agrees that once an arbitration request has been made by either party that each party will proceed expeditiously to commence and complete the arbitration proceedings, with the intent of completing same within three (3) months.  In any arbitration proceeding or any action at law or in equity commenced hereunder or otherwise relating to this Agreement or CONSULTANT’s services hereunder, the prevailing party shall receive its reasonable attorney’s fees, costs and disbursements in addition to any relief granted.

		
	8.
	Injunctive Relief

		
	8.1
	CONSULTANT understands, acknowledges and agrees (A) that his services and the rights granted to CLIENT hereunder are of a special, unique, unusual and intellectual character, which gives them a peculiar value, the loss of which cannot be reasonably or adequately compensated by damages in an action at law and (B) that in the event of a breach or threatened breach of any of the covenants and promises contained in this Section 8, CLIENT will suffer irreparable injury for which there is no adequate remedy at law, and accordingly CONSULTANT expressly agrees that CLIENT shall be entitled to seek injunctive relief and other equitable relief to prevent, or in the event of, a breach of this Agreement by CONSULTANT.  CONSULTANT further acknowledges, however, that CLIENT shall have the right, in addition to immediate termination of this Agreement, to seek a remedy at law as well as or in lieu of equitable relief in the event of any such breach.

		
	8.2
	In the event of any failure or omission by CLIENT constituting a breach hereunder, CONSULTANT’s rights and remedies shall be limited to the right, if any, to obtain damages at law, and CONSULTANT shall have no right in such event to seek or obtain injunctive or other equitable relief or to rescind or terminate this Agreement or any of CLIENT’s rights hereunder.  CONSULTANT hereby waives any right to, or to seek, injunctive or other equitable relief in connection with any breach or alleged breach of this Agreement by CLIENT.

		
	9.
	Confidential Information

CONSULTANT understands that indeterminable and irreparable harm may come to CLIENT from disclosure of any proprietary information of CLIENT and therefore shall treat all such information as confidential and proprietary to CLIENT.  CONSULTANT shall not disclose to any party not authorized by CLIENT to have same nor shall CONSULTANT duplicate, copy or use for any purpose other than performance under this Agreement any confidential information of CLIENT (defined for the purpose of this Agreement as data or information relating to CLIENT’s business which is not generally available to the public) of which CONSULTANT becomes aware in the course of rendering services hereunder.  CONSULTANT agrees to take, at CLIENT’s request, all necessary and appropriate measures to ensure adherence with the terms of this paragraph.  The contents of this Section 9 shall survive the termination, cancellation or expiration of this Agreement.

		
	10.
	Results and Proceeds of Services

All the results and proceeds of CONSULTANT’s services for CLIENT (which, for the purposes of this Paragraph shall be deemed to include CLIENT and/or any affiliated, subsidiary or predecessor companies) are the sole and exclusive property of CLIENT.  CONSULTANT will, at the request of CLIENT, execute and deliver to CLIENT, in form satisfactory to CLIENT, documents evidencing CLIENT’s ownership of the foregoing; but notwithstanding that no such documents are executed, CLIENT shall be deemed the owner thereof immediately upon creation.  Additionally, all memoranda, notes, records, and other documents made or compiled by CONSULTANT, or made available to CONSULTANT in the performance of such services, shall remain the sole and exclusive property of CLIENT.

		
	11.
	Release

		
	11.1
	CONSULTANT knowingly and voluntarily releases and forever discharges, to the full extent permitted by law, CLIENT, its parent corporation, affiliates, subsidiaries, divisions, predecessors, successors and assigns and the current and former employees, officers, directors and agents thereof (collectively referred to as “Released Parties”), of and from any and all claims, known and unknown, asserted and unasserted, CONSULTANT has or may have against CLIENT or the other Released Parties as of the execution date of this Agreement.

		
	11.2
	To effect a full and complete general release as described above, CONSULTANT expressly waives and relinquishes all rights and benefits of section 1542 of the Civil Code of the State of California, and CONSULTANT does so understanding and acknowledging the significance and consequence of specifically waiving section 1542.  Section 1542 of the Civil Code of the State of California states as follows:

A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.
Thus, notwithstanding the provisions of section 1542, and to implement a full and complete release and discharge of CLIENT and the other Released Parties, CONSULTANT expressly acknowledges this Agreement is intended to include in its effect, without limitation, all claims CONSULTANT does not know or suspect to exist in CONSULTANT’s favor at the time of signing this Agreement, and that this Agreement contemplates the extinguishment of any such claim or claims.  CONSULTANT warrants he has read this Agreement, including this waiver of California Civil Code section 1542, and that he has consulted counsel or has had the opportunity to consult counsel about this Agreement and specifically about the waiver of section 1542, and that CONSULTANT understands this Agreement and the section 1542 waiver, and so CONSULTANT freely and knowingly enters into this Agreement.  CONSULTANT acknowledges CONSULTANT may later discover facts different from or in addition to those CONSULTANT now knows or believes to be true regarding the matters released or described in this Agreement, and even so CONSULTANT agrees the releases and agreements contained in this Agreement shall remain effective in all respects notwithstanding any later discovery of any different or additional facts.  CONSULTANT assumes any and all risk of any mistake in connection with the true facts involved in the matters, disputes, or controversies described in this Agreement or with regard to any facts now unknown to CONSULTANT relating to those matters.
		
	11.3
	CONSULTANT acknowledges that he has been informed pursuant to the Federal Older Workers Benefit Protection Act of 1990 that (A) he has the right to consult with an attorney before signing this Agreement, (B) he does not waive rights or claims under the federal Age Discrimination in Employment Act or age discrimination claims under the California Fair Employment and Housing Act that may arise after the date this wavier is executed, (C) he has twenty-one (21) days from the date he receives this Agreement to consider it, and (D) he has seven (7) days after signing this Agreement to revoke the Agreement and the Agreement will not be effective until that revocation period has expired.    

		
	12.
	Waiver

No waiver by either party hereto of any performance of the other party required hereunder or any default of either the terms hereof shall constitute or imply, whether by passage of time or otherwise, any further waiver of any other performance or default.

		
	13.
	Notices

Any notice required herein shall be deemed to have been given on the depositing of said notice in any U.S. Postal Service mail receptacle with First Class postage prepaid, addressed as follows:

CONSULTANT’S MAILING ADDRESS:

Mr. James Keegan

CLIENT’S MAILING ADDRESS:

Lions Gate Entertainment Inc.
2700 Colorado Avenue Suite 200
Santa Monica, CA 90404-3521

		
	14.
	Integrity, Amendment, Severability, Forum    

		
	14.1
	This Agreement expresses the binding and entire agreement between CLIENT and CONSULTANT and shall replace and supersede all prior arrangements and representations, either oral or written, as to the subject matter hereof.

		
	14.2
	Any amendment hereto shall be valid only if in writing and signed by both parties.

		
	14.3
	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 or enforceability of any other provision of this Agreement.

		
	14.4
	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 County, California shall be the sole forum for any action for relief arising out of or pursuant to or to enforce or interpret, 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.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

LIONS GATE ENTERTAINMENT INC.
(“CLIENT”)

/s/ Wayne Levin              

JAMES KEEGAN
(“CONSULTANT”)

    
/s/ James KeeganEx 10.101 Barge Employment Agreement

Exhibit 10.101

As of September 16, 2013

Mr. James Barge

RE:  Employment Agreement

Dear Mr. Barge:

On behalf of Lions Gate Entertainment 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 October 1, 2013 and end September 30, 2017, subject to earlier termination as provided in Section 7 below (the “Term”).  During the Term of this Agreement, Employee will serve as Chief Financial Officer, reporting to the Chief Executive Officer (the “CEO”), currently Jon Feltheimer, or the Company’s designee.  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.

(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)    Subject to travel required by Employee’s position and consistent with the reasonable business of the Company, Employee will be based in the Los Angeles, California area.

2.    COMPENSATION

(a)  Salary.  The following base salary will be paid to Employee during the Term:

		
	(i)
	October 1, 2013 through September 30, 2014 – the rate of EIGHT HUNDRED THOUSAND DOLLARS ($800,000.00) per year (“Base Salary – Year 1”), payable in accordance with the Company’s normal payroll practices in effect.  

Mr. James Barge
As of September 16, 2013
Page 2 of 11

		
	(ii)
	October 1, 2014 through September 30, 2015 – the rate of EIGHT HUNDRED TWENTY-FIVE THOUSAND DOLLARS ($825,000.00) per year (“Base Salary – Year 2”), payable in accordance with the Company’s normal payroll practices in effect.  

		
	(iii) 
	October 1, 2015 through September 30, 2016 – the rate of EIGHT HUNDRED FIFTY THOUSAND DOLLARS ($850,000.00) per year (“Base Salary – Year 3”), payable in accordance with the Company’s normal payroll practices in effect.  

		
	(iv)
	October 1, 2016 through September 30, 2017 – the rate of NINE HUNDRED THOUSAND DOLLARS ($900,000.00) per year (“Base Salary – Year 4”), 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.  

		
	(i)
	During the Term, Employee shall be eligible to receive annual performance bonuses based on such Company and/or individual performance criteria as determined by the Compensation Committee (the “CCLG”) of Lions Gate Entertainment Corp. (“Lions Gate”), 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.  Notwithstanding the foregoing, in the event that Employee’s employment hereunder is terminated pursuant to Section 7(a)(v) below, Employee shall be eligible to receive a bonus amount prorated to reflect the actual length of Employee’s employment with the Company during the fiscal year in which the termination occurs.  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).

		
	(ii)
	Employee shall be entitled to receive a bonus in the amount of ONE HUNDRED THOUSAND DOLLARS ($100,000.00) in recognition of his prior services to the Company, payable within ten (10) business days of the execution of this Agreement.  

(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 

Mr. James Barge
As of September 16, 2013
Page 3 of 11

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.

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 Employee’s supervisor, and (ii) the demands and requirements of Employee’s duties and responsibilities under this Agreement.  Employee shall accrue no paid vacation.  

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

5.      STOCK GRANTS

(a)  Grant/Option.  On September 16, 2013, the CCLG approved the grant to Employee of 25,000 Lions Gate restricted share units (the “Grant”) and the right to purchase 175,000 shares of Lions Gate common stock (the “Option”) in accordance with the terms and conditions of the existing stock incentive plan of Lions Gate (the “Plan”).  As approved by the CCLG, the exercise price per share for the Option is the closing price (in regular trading) of the Company’s common stock on the New York Stock Exchange (“NYSE”) on September 16, 2013.  The Grant and the Option shall be evidenced by and subject to the terms of award agreements in the form generally then used by Lions Gate to evidence grants of restricted stock units and stock options under the Plan.

		
	(i)  
	Vesting.  Subject to Section 5(c) below, the Grant and the Option shall vest as follows:

		
	(A)
	the first 6,250 shares of the Grant and the right to purchase the first 43,750 shares of the Option will vest on September 16, 2014;

		
	(B)
	an additional 6,250 shares of the Grant and the right to purchase an additional 43,750 shares of the Option will vest on September 16, 2015;

Mr. James Barge
As of September 16, 2013
Page 4 of 11

		
	(C)
	an additional 6,250 shares of the Grant and the right to purchase an additional 43,750 shares of the Option will vest on September 16, 2016;

		
	(D)
	the final 6,250 shares of the Grant and the right to purchase the final 43,750 shares of the Option will vest on September 16, 2017.

(b)  Performance Grant/Option.  On September 16, 2013, the CCLG also approved the grant to Employee of an additional 25,000 Lions Gate restricted share units (the “Performance Grant”) and the right to purchase an additional 175,000 shares of Lions Gate common stock (the “Performance Option”) in accordance with the Plan.  As approved by the CCLG, the exercise price per share for the Performance Option is the closing price (in regular trading) of the Company’s common stock on the NYSE on September 16, 2013.  The Performance Grant and the Performance Option shall be evidenced by and subject to the terms of award agreements in the form generally then used by the Company to evidence grants of performance-based restricted stock units and stock options under the Plan. 

		
	(i)  
	Vesting.  Subject to Section 5(c) below, the Performance Grant and the Performance Option shall be eligible to vest as follows (each vesting date a “Performance Vesting Date”):

		
	(A)
	the first 6,250 shares of the Performance Grant and the right to purchase the first 43,750 shares of the Performance Option will be eligible to vest on September 16, 2014;

		
	(B)
	an additional 6,250 shares of the Performance Grant and the right to purchase an additional 43,750 shares of the Performance Option will be eligible to vest on September 16, 2015;

		
	(C)
	an additional 6,250 shares of the Performance Grant and the right to purchase an additional 43,750 shares of the Performance Option will be eligible to vest on September 16, 2016;

		
	(D)
	the final 6,250 shares of the Performance Grant and the right to purchase the final 43,750 shares of the Performance Option will be eligible to vest on September 16, 2017.

The vesting of the Performance Grant and Performance Option on such Performance Vesting Dates shall be subject to an assessment of Employee’s personal performance based on company and/or individual performance criteria over the twelve (12) month period ending on such Performance Vesting Date, as evaluated by the CCLG, in consultation with the CEO.  Determination of the portion of the award that vests on each Performance Vesting Date, if any, shall be made by the CCLG, in consultation with the CEO.  

Mr. James Barge
As of September 16, 2013
Page 5 of 11

Any portion of the Performance Grant or Performance Option that does not vest on its respective Performance 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 of the Performance Grant or Performance Option eligible to vest on any such Performance Vesting Date that does not vest on such date may vest on any future Performance Vesting Date (but in no event shall either award vest as to more than 100% of the shares subject to such award).

(c)  Continuance of Employment.  The vesting schedules in Sections 5(a) and (b) above require 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, Option, Performance Grant and Performance Option and the rights and benefits thereto.

(d)  Acceleration.  Notwithstanding anything to the contrary herein, in the event that Employee’s employment hereunder is terminated pursuant to Section 7(a)(ii) below, all restricted share units and options granted pursuant to Sections 5(a) and (b) above, to the extent then outstanding and unvested, shall accelerate and immediately become fully vested. 
 
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 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 

Mr. James Barge
As of September 16, 2013
Page 6 of 11

of ninety (90) days or more, provided that Employee has not cured disability within ten days of written notice; 

		
	(iv)
	The determination on the part of the Company that “cause” exists for termination of this Agreement.  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.”  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 Base Salary – Year 1, Base Salary – Year 2, Base Salary – Year 3 and Base Salary – Year 4 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.  Subject to the release provision set forth above, such payment shall be made in cash in a lump sum 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) 

Mr. James Barge
As of September 16, 2013
Page 7 of 11

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 sole exception that Employee will remain eligible for a prorated bonus for the fiscal year in which the termination date occurs, any such bonus to be determined and paid as provided in 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, 10, 11, 12 and 13 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 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 own all rights of every kind and character throughout the universe, in perpetuity to any material and/or idea suggested or submitted by Employee that occurs during the Term or any other period of employment with the Company, its parent, affiliates, or subsidiaries that are within the scope of Employee’s employment and responsibilities hereunder. Employee agrees to notify the Company of any material and/or idea suggested or submitted to Employee by a third party in connection with Employee’s employment hereunder.  Employee agrees that the Company shall, in perpetuity, own all results and proceeds of Employee’s services that are related to Employee’s employment and responsibilities whether performed during the Term or any other period of employment with the Company, its parent, affiliates, or subsidiaries. Employee shall promptly and fully disclose all intellectual property generated by Employee during the Term and any other period of employment with the 

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Company, its parent, affiliates, or subsidiaries in connection with Employee’s employment hereunder.  

(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 agrees to assign to the Company (or as otherwise directed by the Company) Employee's full right, title and interest in and to all such works and other intellectual property.  Employee agrees to execute any and all applications for domestic and foreign copyrights or other proprietary rights and to do such other acts (including without limitation the execution and delivery of instruments of further assurance or confirmation) requested by the Company to assign the intellectual property to the Company and to permit the Company to enforce any copyrights or other proprietary rights to the intellectual property.  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.

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 affiliated 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. 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 

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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 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 to leave such employment.

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.

(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, 

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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.
(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.    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 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 

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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 ENTERTAINMENT INC.
                        

/s/ Wayne Levin 
Wayne Levin
Chief Strategic Officer and General Counsel    
   
AGREED AND ACCEPTED
This 16th day of September, 2013 

/s/ James Barge
JAMES BARGE

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