Document:

Exhibit

Exhibit 10.1

EMPLOYMENT AGREEMENT

This Employment Agreement (this “Agreement”), made effective as of July 20, 2015, is entered into by and between Starz Entertainment, LLC, a Colorado limited liability company (“Employer”), and Jeffrey Hirsch (“Executive”).

Employer, together with other members of the Starz Group, is presently engaged in the business of providing premium movie channels for distribution in the United States, creating and distributing animated and live-action programming, distributing home video/DVD products and producing feature-length films.  Employer desires to employ Executive, and Executive desires to be employed with Employer, under the terms and conditions set forth herein.  Certain capitalized terms used in this Agreement have the meanings set forth in Section 9.

NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

Section 1.    Employment; Term; Duties

1.Employment. Upon the terms and conditions hereinafter set forth, Employer hereby employs Executive, and Executive hereby accepts employment, as the President of Global Marketing and Product Planning of Employer and of other members of the Starz Group designated by Employer from time to time.

2.Term. Subject to earlier termination in accordance with the terms of this Agreement, Executive’s employment hereunder shall be for a term commencing effective as of July 20, 2015 (“Effective Date”), and expiring at the close of business on July 19, 2018 (such fixed three-year period hereinafter referred to as the “Initial Term”). The period of time from the Effective Date until the expiration or earlier termination of the term of Executive’s employment under this Agreement, whether such expiration or termination occurs during or at the end of the Initial Term is referred to herein as the “Term.”  Employer shall notify Executive no less than (90) days prior to the end of the Initial Term of Employer’s intention to extend the employment relationship. Any extension shall be subject to new contractual arrangements that are mutually acceptable to Executive and Employer.

3.Duties; Reporting. During the Term, Executive shall perform such executive duties for Employer and other members of the Starz Group as are consistent with his position hereunder.  Executive shall report to the Chief Executive Officer of Starz Group (the “CEO”) and shall devote 100% of his business time, attention and energies to the performance of his duties under this Agreement. Subject to the direction of the CEO, Executive shall be the most senior executive officer of Employer with authority and responsibility for marketing and product planning and (at the CEO’s election) program planning. Executive shall use his best efforts to advance the interests and business of Employer and other members of the Starz Group. Executive shall abide by all rules, regulations and policies of Employer of which Executive has received written notice as may be in effect from time to time.  Notwithstanding the foregoing, Executive may engage in the management of his personal investments; and subject to applicable company policies: (i) engage in civic, charitable or academic activities including non-compensatory services provided to professional organizations; and (ii) subject to the prior approval of the CEO, serve on corporate boards, so long as such activities do not materially interfere with performance of Executive’s services hereunder.

4.Location. Except for services rendered during business trips as may be reasonably necessary, Executive shall render his services under this Agreement primarily from the offices of Employer in Beverly Hills, California.

5.No Conflicting Agreement. Executive represents and warrants to Employer that there are no agreements or arrangements, whether written or oral, in effect that would prevent Executive from rendering his services exclusively to Employer during the Term in accordance with the provisions of this Agreement.

Section 2.    Compensation

1.Compensation. For all services rendered by Executive to Employer and other members of the Starz Group, Employer shall pay, and Executive shall accept, as full compensation, the amounts set forth in this Section 2.

2.Base Salary. Effective as of the Effective Date, Executive’s base salary shall be an annual salary of $600,000 (“Base Salary”), payable by Employer in accordance with Employer's normal payroll practices (which shall not be less than monthly); provided, that Executive’s Base Salary shall be increased by 10% to $660,000 effective January 1, 2016.

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3.Bonus. For each full or partial fiscal year during the Term, in addition to the Base Salary, provided that Executive is employed by Employer on the date of payment thereof, Executive shall be eligible for a discretionary annual bonus ("Bonus") of up to 70% of Executive's annual Base Salary (“Target”) earned during each such year based upon achievement of corporate and individual performance criteria to be determined by the CEO in conjunction with the compensation committee of the Starz Board of Directors (“Compensation Committee”)  in their sole discretion (so that for the 2015 fiscal year, Executive’s Bonus shall be based on the Base Salary he receives for the portion of that year for which he is employed hereunder).  Executive’s entitlement to, and the amount of, any Bonus will be determined by Employer in its sole discretion.  Nothing in this Agreement shall be construed to guarantee the payment of any Bonus to Executive

4.Equity Awards; Additional Compensation. As part of the consideration for Executive’s services to Employer, Executive shall receive the equity awards and additional compensation as set forth in Schedule 1 (“Schedule 1”) attached to this Agreement. 

5.Deductions. Employer shall deduct from the compensation described in Sections 2.2 and 2.3, and from any other amounts payable pursuant to this Agreement, any federal, state or local withholding taxes and any other amounts which may be required to be deducted or withheld by Employer pursuant to any federal, state or local laws, rules or regulations.

Section 3.    Benefits; Expenses

1.Benefits. Executive will be entitled to participate in such group life, health, accident, disability or hospitalization insurance plans and retirement plans (“Employer Plans”), and to receive such other benefits and perquisites, as Employer may make available to its other senior executive employees as a group.  Executive’s participation in any Employer Plans and receipt of such other benefits and perquisites shall be at a level, and on terms and conditions, that are commensurate with his positions and responsibilities at Employer but are no less favorable than those made available to other senior executives of Employer.

2.Expenses. Employer agrees that Executive is authorized to incur reasonable and appropriate expenses in the performance of his duties hereunder and in promoting the business of Employer and to be reimbursed therefor in accordance with the terms of Employer's Travel &  Entertainment Policy (as the same  may be modified or amended  by Employer from time to time in its sole discretion).  

Section 4.    Severance Pay Benefits

1.Severance Pay Benefits - Generally.   Subject to Section 5, Executive will receive severance pay benefits equal to his Base Pay for the remainder of the Initial Term as if it had expired with the passage of time (“Severance Pay Amount”) upon either of the following:  (a) a Qualifying Termination that is not an Excluded Termination; or (b) a Voluntary Termination for Good Reason.

2.Form and Timing of Severance Pay. Except as otherwise provided in Sections 5 and 6, the Severance Pay Amount will be paid as follows:

a.The lesser of the number of days remaining in the Initial Term of Base Pay, or six (6) months of Base Pay being paid in one lump sum payment within sixty (60) days after Executive’s termination date, and

b.The remaining Severance Pay Amount, if any, will be paid in installments in amounts equal to Executive’s Base Pay pursuant to Employer’s regular payroll practices, commencing with the payroll date coincident with or immediately following the six (6) month anniversary of Executive’s termination date.

c.The Severance Pay Amount will be subject to all applicable tax and other withholdings, except that no withholding will be made for any 401(k) plan or for premiums for continued insurance coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act (“COBRA”).

d.If Executive becomes re-employed by Employer or any member of the Starz Group in any category of employment before receiving the full amount of his Severance Pay Amount, the severance payments will be suspended, and Executive will not be entitled to additional severance payments under this Agreement. If Executive dies after becoming eligible for the Severance Pay Amount but before Executive receives the full amount of his Severance Pay Amount, the remaining amount of such Severance Pay Amount will be paid in one lump sum, within sixty (60) days after Executive’s 

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date of death, to Executive’s estate.

e.In no event will the Severance Pay Amount be considered “wages” pursuant to any State law or regulation, other than for tax purposes.

3.Adjustments to the Severance Pay Amount. The Severance Pay Amount shall be reduced by each of the following, provided that the aggregate reductions shall not reduce severance pay below the Release Consideration:

a.The amount of wages or other compensation for services received by Executive from any other employer or other entity (that is not a member of the Starz Group) during the Severance Period, but this reduction shall apply only to the installment payments (set forth in Section 4.2(b) above) under the Severance Pay Amount;

b.Any wages or wage replacement benefits paid or payable to Executive with respect to any applicable notice period required under the Worker Adjustment and Retraining Notification Act  (WARN) or any state  law with respect to notice  prior to termination; and

c.To the extent permitted by law, by any debt that Executive owes Employer or any member of the Starz Group at the time the Severance Pay Amount becomes payable, provided that in no event will this provision be applied in such a way that it would violate Section 409A of the Internal Revenue Code.

4.4    Enhanced Severance Pay Amount Upon a Change in Control. If Executive experiences a Qualifying Termination within thirty (30) days preceding or twelve (12) months immediately following a Change in Control, in addition to the Severance Pay Amount, and subject to the adjustments in Section 4.3 and the provisions of Section 5, Executive will be entitled to the following additional severance pay benefits:     

a.A lump sum payment equal to 70% of the Executive’s annual Base Salary for the year of the Qualifying Termination, which will be paid within sixty (60) days following such termination date; and

b.Provided that Executive elects continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), Employer will contribute to the health plan maintained by Employer as of the date of termination, or any such successor health plan maintained by Employer, that monthly amount that reflects the portion of the premium for such coverage that is paid by Employer as of the date of termination throughout the period beginning on the date of termination and ending on the earliest of (A) the date that is eighteen (18) months following the date of termination, or (B) the expiration of the coverage period specified under COBRA.

Section 5.    Conditions for Payment of Severance Pay Amount. Executive must meet all of the following conditions in order to be eligible to receive severance pay benefits under this Agreement:

1.Waiver and Release Agreement Required. To the extent permitted under applicable law, the Severance Pay Amount provided under this Agreement is conditioned upon Executive (or by Executive’s legal representative, if applicable based on Executive’s death) returning the signed Waiver and Release Agreement to Employer by the 21st day following Executive’s termination date and not revoking it within seven (7) days following execution of the Waiver and Release Agreement (the “Release Review Period”).

2.Suspension of Severance Pay Upon Competitive Activities. Conditions for Executive’s receipt of the Severance Pay Amount are intended to protect the trade secrets and other business interests of the Starz Group. To the extent permitted by law and enforceable in the applicable jurisdiction, if Executive elects to engage in Competitive Activities during the Severance Period, Executive shall deliver to Employer at least ten business days prior to commencing any such Competitive Activities a written notice advising Employer of (i) Executive’s intent to commence Competitive Activities, and (ii) the commencement date for such Competitive Activities. If Executive engages in Competitive Activities prior to the expiration of the Severance Period Employer shall have no obligation to make any further payment of the Severance Pay Amount (except to the extent the Severance Pay Amount is at least equal to the Release Consideration that has not theretofore been paid).

3.Other Damages Upon Competitive Activities. In addition to the suspension of severance pay upon Executive’s engaging in Competitive Activities as provided above, and to the extent permitted by applicable law and enforceable in the applicable jurisdiction, Executive agrees that (i) Employer and its affiliates will be irreparably injured in the event of such Competitive Activities; (ii) Executive will repay to Employer 75% of the total amount of the Severance Pay Amount received by Executive under this Agreement; provided that Executive may retain severance pay benefits equal to the Release 

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Consideration (whether such payments were received prior or subsequent to such Competitive Activities), together with interest from the dates of such payments to the date reimbursement is made at the rate per annum equal to the prime rate of interest charged by the bank designated by Employer plus 5% or, if lower, the maximum rate permitted by law, (iii) because monetary damages will not be an adequate remedy for any such Competitive Activities, Employer and its affiliates also will be entitled to injunctive relief, in addition to any other remedy which they may have, in the event of such Competitive Activities; and (iv) the existence of any unrelated claims which Executive may have against Employer or any of its affiliates, whether under this Agreement or otherwise, will not be a defense to the enforcement by Employer or its affiliates of any of their rights under this paragraph. The covenants of Executive contained in this paragraph are in addition to, and not in lieu of, any obligations which Executive may have with respect to the subject matter of this paragraph, whether by contract, as a matter of law or otherwise, and such covenants and their enforceability will survive any termination of the employment of Executive for any reason and any investigation made with respect to the Competitive Activities by Employer or any of its affiliates.  

4.Agreement to Not Solicit and to Keep Information Confidential. Executive agrees that, during his employment with Employer or any member of the Starz Group and during the Severance Period and to the extent enforceable in the applicable jurisdiction, Executive will not:

a.Solicit or divert any business or any customer from any Starz Group member or assist any person in doing so or attempting to do so, or cause or seek to cause any person to refrain from dealing or doing business with any member of the Starz Group or assist any person in doing so or attempting to do so;

b.Solicit or induce, directly or indirectly, or cause or authorize others to solicit or induce, directly or indirectly, any person employed by any member of the Starz Group to leave such employment with the Starz Group member; and

c.Disclose or furnish to, or use for the benefit of, any other person, firm or corporation any Confidential Information, except in the course of the proper performance of the Executive’s employment duties or as required by law, governmental authority or legal process (in which event Executive shall give prior written notice to Employer and shall cooperate with Employer, at Employer’s expense, in complying with such legal requirements). 

Executive agrees that (A) Employer and its affiliates will be irreparably injured in the event of a breach of the provisions of this Section 5.4; (B) because monetary damages will not be an adequate remedy for any such breach, Employer and its affiliates will be entitled to injunctive relief, in addition to any other remedy which they may have, in the event of such a breach of the provisions of this paragraph; and (C) the existence of any unrelated claims which Executive may have against Employer or any of its affiliates, whether under this Agreement or otherwise, will not be a defense to the enforcement by Employer or its affiliates of any of their rights under this paragraph.

5.Transfer of Duties. Executive must cooperate with the orderly transfer of his duties as requested by Employer.

6.Return of Property. Executive must return all Employer and Starz Group property by a date specified by Employer.

7.Notification of Other Employment. Executive must notify Employer in writing immediately upon becoming employed by any employer in any capacity during the Severance Period.

Section 6.    Application of Code Section 409A to Severance Pay.    All payments and benefits under this Agreement are intended either to be exempt from, or to comply with, the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), and this Agreement shall be interpreted and administered in a manner consistent with such intent. To the extent that Section 409A applies to any payment of severance under this Agreement, the following will apply:

1.Any payment that is triggered upon Executive’s termination of employment shall be paid only if such termination of employment constitutes a “separation from service” under Section 409A. References in this Agreement to “termination of employment” and similar terms shall mean a “separation from service” as determined under Section 409A. A separation from service shall be deemed to occur if it is anticipated that the level of services Executive will perform after a certain date (whether as an employee or as an independent contractor) will permanently decrease to no more than 20% of the average level of services provided by Executive in the immediately preceding thirty-six (36) months.

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2.For purposes of Section 409A, Executive’s right to receive installment payments of any severance amount shall be treated as a right to receive a series of separate and distinct payments, and each payment shall be considered, and is hereby designated as, a separate payment for purposes of Section 409A.

a.If the period of time in which a Waiver and Release Agreement shall be executed and become irrevocable as described under Section 5 straddles two calendar years, then the Severance Pay Amount will be paid in the second calendar year, regardless of when the Waiver and Release Agreement is signed. In no event will Employer or its affiliates be liable for any additional tax, interest or penalties that may be imposed on Executive under Section 409A or any damages for failing to comply with Section 409A.

3.In the event that Executive is deemed on the date of termination to be a “specified employee” as defined in Section 409A, then with regard to any payment that is subject to Section 409A, and that becomes payable by reason of Executive’s termination of employment, such payment shall be delayed until the earlier of (A) the first business day of the seventh calendar month following such termination of employment, or (B) Executive’s death. Any payments delayed by reason of the prior sentence shall be paid in a single lump sum, without interest thereon, on the date indicated by the previous sentence and any remaining payments due under this Agreement shall be paid as otherwise provided herein.

4.Employer may, without Executive’s consent, amend any provision of this Agreement to the extent that, in the reasonable judgment of Employer, such amendment is necessary or advisable to avoid the imposition on Executive of any tax, interest or penalties pursuant to Section 409A.

Section 7.    Miscellaneous

1.Amendment and Termination of Agreement. Subject to Section 6.4 above, this Agreement may be amended only by written action signed by Executive and Employer; provided, however, that Employer may assign this Agreement to any member of the Starz Group, or any successor to any member of the Starz Group, without the consent of Executive. Additionally, and notwithstanding anything else in this Agreement to the contrary, Executive remains an “employee at will”, and Executive’s employment by Employer is subject to termination by Employer at any time, with or without notice or cause, and for any reason or no reason.

2.Ineligibility for Other Severance Plans. Executive acknowledges and agrees that he is not eligible to participate in, or to receive any benefits under, the Starz Severance Plan for Employees, the Starz Severance Plan for Executives, any successor plan to such plans, or any other contract or arrangement providing severance benefits. Therefore, any now existing contract or severance arrangement between Executive and Employer is hereby deemed null and void.

3.Records. The records of Employer with respect to the determination of eligibility, employment history, Base Pay, absences, and all other relevant matters shall be conclusive for all purposes of this Agreement.

4.Construction. The laws of the State of California will apply and any action brought under this Agreement shall be brought in the State of California.

5.Return of Amounts Paid in Error. Upon a determination by Employer that amounts have been paid under this Agreement to Executive or other individual in error, or amounts have been paid to any individual not entitled to payment under the terms of this Agreement, Executive or other individual receiving such incorrect payments will repay such amounts to Employer immediately upon notice of such error, and Employer will have the right to pursue such repayment to the fullest extent of the law.

6.Severability Provisions. If any provision of this Agreement, or the application of such provision to any person or in any circumstance, is found by a court of competent jurisdiction to be unenforceable for any reason, such provision may be modified or severed from this Agreement to the extent necessary to make such provision unenforceable against such person or in such circumstance. Neither the unenforceability of such provision nor the modification or severance of such provision will affect (i) the enforceability of any other provision of this Agreement or (ii) the enforceability of such provision against any person or in any circumstance other than those against or in which such provision is found to be unenforceable.

7.Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective legal representatives, heirs, distributees, successors and permitted assigns.

8.Notices. All notices, requests, demands and other communications under this Agreement shall be in 

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writing and shall be deemed to have been duly given: (a) on the date of service if served personally on the party to whom notice is to be given; (b) on the day of transmission if sent via facsimile transmission to the facsimile number given below, and telephonic confirmation of receipt is obtained promptly after completion of transmission; (c) on the day of transmission if sent via electronic mail to the electronic mail address given below; (d) on the day after delivery by Federal Express or similar overnight courier or the Express Mail service maintained by the United States Postal Service; or (e) on the fifth day after mailing, if mailed to the party to whom notice is to be given, by first class mail, registered or certified, postage prepaid and properly addressed, to the party as follows:
	
		
	 
	 

	(a)
	If to Employer:

Starz
9242 Beverly Blvd., Suite 200
Beverly Hills, California  90210
Attention: General Counsel
	
		
	(b)
	If to Executive:

Jeffrey Hirsch
            

With a copy to:

Grubman Shire & Meiselas, P.C.
152 West 57th Street
New York, New York 11577

Notwithstanding the foregoing, any notice of change of address of a party shall be effective only upon actual receipt by the other party hereto.

9.Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Facsimile signatures shall have the same effect as originals.

10.Entire Agreement. This Agreement contains the full and complete agreement of the parties relating to the subject matter hereof, and supersedes all prior agreements, arrangements or understandings, whether written or oral, relating thereto.

Section 8.    Arbitration

1.Application of Section. Other than any action to obtain injunctive relief relating to the matters set forth in Section 5 of this Agreement, if any controversy, claim or dispute arises out of or in any way relates to this Agreement, the alleged breach thereof, Executive’s employment with Employer or termination therefrom, including, without limitation, any and all claims for employment discrimination or harassment, civil tort and any other employment laws, excepting only claims that may not, by statute, be arbitrated, both Executive and Employer (and its members, managers, officers, employees or agents) agree to submit any such dispute exclusively to binding arbitration. Both Executive and Employer acknowledge that they are relinquishing their right to a jury trial in civil court. Executive and Employer agree that arbitration is the exclusive remedy for all disputes arising out of or related to Executive’s employment with Employer.

2.Arbitration. The arbitration shall be subject to the Federal Arbitration Act and shall be administered by JAMS in accordance with the Employment Arbitration Rules & Procedures of JAMS then in effect and subject to JAMS Policy on Employment Arbitration Minimum Standards, except as otherwise provided in this Agreement. Arbitration shall be commenced and heard in the Los Angeles, California metropolitan area. Only one arbitrator shall preside over the proceedings, who shall be selected by agreement of the parties from a list of five or more qualified arbitrators provided by the arbitration tribunal, or if the parties are unable to agree on an arbitrator within ten business days following receipt of such list, the arbitration tribunal shall select the arbitrator. The arbitrator shall apply the substantive law (and the law of remedies, if applicable) of the 

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state wherein Executive worked at the time of his termination, as applicable to the claim(s) asserted. In any arbitration, the burden of proof shall be allocated as provided by applicable law. The arbitrator shall have the authority to award any and all legal and equitable relief authorized by the law applicable to the claim(s) being asserted in the arbitration, as if the claim(s) were brought in a federal or state court of law. Either party may bring an action in court to compel arbitration under this Agreement and to enforce an arbitration award. Discovery, such as depositions or document requests, shall be available to Employer and Executive as though the dispute were pending in federal court. The arbitrator shall have the ability to rule on pre-hearing motions as though the matter were in a federal court, including the ability to rule on a motion for summary judgment.

3.Fees. If permitted by applicable law, the fees of the arbitrator and any other fees for the administration of the arbitration that would not normally be incurred if the action were brought in a court of law (e.g., filing fees, room rental fees, etc.) shall be shared equally by the parties. If the foregoing is not permitted by applicable law, the fees of the arbitrator and any other fees for the administration of the arbitration that would not normally be incurred if the action were brought in a court of law (e.g., filing fees, room rental fees, etc.) shall be paid by Employer, provided that Executive shall be required to pay the amount of filing fees equal to that which Executive would be required to pay to file an action in California state court. Each party shall pay its own attorneys’ fees and other costs incurred in connection with the arbitration, unless the relief authorized by law allows otherwise and the arbitrator determines that attorneys’ fees shall be paid in a different manner.  The arbitrator must provide a written decision that is subject to limited judicial review consistent with applicable law.  If any part of this arbitration provision is deemed to be unenforceable by an arbitrator or a court of law, that part may be severed or reformed so as to make the balance of this arbitration provision enforceable.

Section 9.    Definitions

1.“Base Pay” means Executive’s weekly base pay in effect for the payroll period during which Executive’s employment is terminated.  Overtime, bonuses, commissions, piece rate, incentive pay and any taxable or nontaxable fringe benefits or payments are not included in the calculation of Base Pay.

2.“Change in Control” means the closing date of an Approved Transaction, or the effective date of a Board Change or a Control Purchase, as such terms are defined in the Starz 2011 Incentive Plan Amended and Restated as of October 15, 2013.

3.“Competitive Activities” occur when Executive, during his employment with Employer or any member of the Starz Group and during the Severance Period, directly or indirectly, as principal or agent, or in any other capacity, owns, manages, operates, participates in, or is employed by (including, but not limited to, service as a freelance employee or freelance contractor, an independent contractor, or consultant), any party that competes with the business of Employer (which may include, but is not limited to, program providers such as HBO, Showtime, Amazon, Epix, Netflix and Hulu) or any successor in interest to any of the above mentioned entities.  Nothing contained in this Agreement shall be construed as denying Executive the right to own securities of any such entity, so long as such securities are listed on a national securities exchange or quoted on the Nasdaq Stock Market, but in any event no more than an aggregate of 5% of the outstanding shares of such securities.

4.“Confidential Information” means any and all non-public information of which any member of the Starz Group takes reasonable steps to protect the confidentiality of and that affects or relates to the business of the Starz Group, including, without limitation: (i) financial data, customer lists and data, licensing arrangements, business strategies, pricing information, product development, intellectual, artistic, literary, dramatic or musical rights, works, or other materials of any kind or nature (whether or not entitled to protection under applicable  copyright  laws,  or  reduced  to  or  embodied  in  any  medium  or  tangible  form), including, without limitation, all copyrights, patents, trademarks, service marks, trade secrets, contract rights, titles, themes, stories, treatments, ideas, concepts, technologies, art work, logos, hardware, and software; (ii) such information as may be embodied in any and all computer programs, tapes, diskettes, disks, mailing lists, lists of actual or prospective customers and/or suppliers, notebooks, documents, memoranda, reports, files, correspondence, charts and lists; and (iii) all other written, printed or otherwise recorded material of any kind whatsoever and any other information, whether or not reduced to writing, including “know-how,” ideas, concepts, research, processes, and plans. “Confidential Information” does not include information relating to Executive’s working conditions or wages, information that is in the public domain, information that is generally known in the trade, or information that Executive can prove he acquired wholly independently of his employment with Employer. 

		
	5.
	“Excluded Termination” means:

a.Executive’s employment is terminated because of resignation (other than a Voluntary Termination for Good Reason that is a Qualifying Termination), retirement, death or disability;

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b.Executive’s employment is terminated because of (i) any act or omission that constitutes a breach by Executive of any of his material obligations under this Agreement; (ii) the continued failure or refusal of Executive, other than on account of death or disability of Executive, (A) to substantially perform the material duties required of him as President of Global Marketing and Product Planning of Employer and/or (B) to comply with reasonable directions of the CEO; (iii) any material violation by Executive of any (A) policy, rule or regulation of Employer or (B) any law or regulation applicable to the business of Employer or any of its affiliates; (iv) any other intentional misconduct by Executive that has a material detrimental effect on the financial condition or business reputation of the Employer or any of its affiliates; (v) Executive’s conviction for the commission of an act or acts constituting a felony or a crime of moral turpitude punishable by imprisonment of 30 days or more under the laws of the United States or any State or subdivision thereof, or (vi) Executive’s commission of any act of embezzlement, gross negligence or gross malfeasance; provided, that a termination pursuant to this clause b. (i), (ii) or (iii) shall not constitute an Excluded Termination unless all of the following provisions shall have been complied with: (A) Employer shall give Executive a written notice of Employer’s intention to effect a termination, such notice to state in detail the particular circumstances that constitute the grounds on which the proposed termination is based; (B) Executive shall have 30 days after receiving such notice in which to cure such grounds; and (C) Executive fails, within such 30-day period, to cure such grounds to   Employer’s reasonable satisfaction. If Executive timely cures such grounds in accordance with the preceding sentence, such termination shall not constitute an Excluded Termination;

		
	c.
	Executive fails to return to work after any leave of absence; or

d.Executive voluntarily terminates his employment prior to the termination of employment date set forth in the notice of layoff, reduction in force, job elimination or restructuring, unless such termination constitutes a Voluntary Termination for Good Reason that is a Qualifying Termination.

		
	6.
	“Qualifying Termination” means:

a.An involuntary termination of employment by the Company by reason of a layoff, firing, reduction in force, job elimination or restructuring, and that is not an Excluded Termination; or

b.Solely within the 30 days preceding or the twelve months immediately following a Change in Control, a Voluntary Termination for Good Reason.

7.“Release Consideration” means the amount of the Severance Pay Amount that is equal to one-twelfth of Executive’s Base Pay in effect at the date of termination of Executive’s employment, which amount shall constitute consideration for Executive’s delivery of the Waiver and Release Agreement.

8.“Severance Period” means the period over which severance payments are made as provided in Section 4.1.

9.“Starz Group” means Starz, a Delaware corporation (and any successor thereto) and its (or its successor’s) direct and indirect subsidiaries and affiliates (defined for this purpose as any entity which is more than 50% owned) as of the date of determination, including Employer.

10.“Voluntary Termination for Good Reason” means Executive’s termination of his employment with Employer upon the occurrence of any of the following events without the prior consent of Executive:

a.A significant reduction in Executive’s then current Base Salary;

b.A significant reduction in Executive’s title or duties with Employer or the assignment to Executive of duties that are inconsistent with Executive’s position with Employer;

c.Employer requiring Executive to report to any position other than as set forth in Section 1.3 of this Agreement; or

d.The relocation of Executive’s primary place of employment to a location that is more than 50 miles from Executive’s primary place of employment as of Executive’s termination date.

A Voluntary Termination for Good Reason shall not be effective unless all of the following provisions shall 

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have been complied with: (A) Executive shall give Employer a written notice of Executive’s intention to effect a Voluntary Termination for Good Reason, such notice to state in detail the particular circumstances that constitute the grounds on which the proposed Voluntary Termination for Good Reason is based and to be given no later than 90 days after the initial occurrence of such circumstances; (B) Employer shall have 30 days after receiving such notice in which to cure such grounds; and (C) if Employer fails, within such 30-day period, to cure such grounds to Executive’s reasonable satisfaction, Executive terminates his employment hereunder within 30 days following the last day of such 30-day period. If Employer timely cures such grounds in accordance with the preceding sentence, Executive shall not be entitled to terminate his employment pursuant to a Voluntary Termination for Good Reason based on such grounds.

11.“Waiver and Release Agreement” means the written agreement under which Executive agrees to release Employer and all others associated or affiliated with Employer from all legal claims associated with Executive’s employment by Employer and to keep Starz Group information confidential and to not disparage any member of the Starz Group or any related person, such agreement to be in a form acceptable to, and provided by, Employer.

[Signature page follows]

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IN WITNESS WHEREOF, Employer and Executive have signed this Employment Agreement to be effective on the Effective Date.

Starz Entertainment, LLC

	
		
	 
	 

	By:
	/s/ Christopher P. Albrecht

	Title:
	Chief Executive Officer

	Date:
	July 20, 2015

	 
	 

	 
	 

	 
	 

	 
	 

	 
	/s/ Jeffrey Hirsch

	 
	Jeffrey Hirsch

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SCHEDULE 1 TO
EMPLOYMENT AGREEMENT

1. Signing Bonus Restricted Share Grant:        $400,000 value of Restricted Shares to be priced on
the Grant Date (as determined by the Compensation Committee) vesting 25% per year over 4 years and subject to other standard terms as set forth in the award agreement
    
		
	2.Grant Date:
	As specified in 3(a) below; provided, however, that in the event that the Executive is subject to a blackout period (as such blackout period may be extended to the extent that such blackout period terminates during another blackout period under the Employer’s insider trading policy, the “Blackout Period”) during which Executive cannot trade in shares of STRZA Stock:  (i) the Grant Date will be the first trading day after the end of the Blackout Period; (ii) the exercise price of the Options will be the closing sale price on the Grant Date as reported by Nasdaq; (iii) the number of shares subject to the Options will be determined by dividing the dollar value contemplated in this Schedule 1 by the value of an option as of the Grant Date, calculated using a Black-Scholes valuation based on assumptions for expected volatility, exercise behavior, the risk-free rate of return and dividend yield consistent with those used for valuing options in the Corporation’s latest financial reports filed with the Securities Exchange Commission; and (iv) the number of Restricted Shares and Restricted Stock Units will be determined by dividing the dollar value contemplated in this Schedule 1 by the closing sales price per share of STRZA Stock on the Grant Date as reported by Nasdaq

3.Annual Equity Incentive:            Target of 150% of annual Base Salary to be priced
on the grant date (as determined by the Compensation Committee) and subject to the other standard terms of the award agreement, except as described below:

		
	a.
	Initial 2015 Annual Equity Grant Allocation (with such grant to be made on prior to December 31, 2015, subject to possible events of force majeure):

	
			
	i)
	20%
	Options (standard vesting - 4 years)

	ii)
	40%
	Restricted Share Units (standard time based vesting - 4 years)

	iii)
	40%
	Performance Based Restricted Share Units (vesting upon satisfaction of performance criteria)

		
	b.
	Future Annual Equity Grant Allocation: The allocation of 2016 and future annual equity grants to be determined by the Compensation Committee (with such allocation to be on terms substantially similar to  those afforded to Starz Group’s senior executives)

		
	4.Enhanced Relocation:
	$125,000 increase to the Starz standard executive relocation allocation (as defined in the executive relocation package)

		
	5.Incentive Plan:
	Means the Starz 2011 Incentive Plan (Amended and Restated as of October 15, 2013).  Capitalized terms in this Schedule 1, to the extent defined in the Incentive Plan, have the meanings ascribed to them in the Incentive Plan, or in an award agreement under the Incentive Plan.

11mgrc-ex41_399.htm

Exhibit 4.1

 

4844-1165-7510v.4

FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

THIS FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”), dated as of August 24, 2015, is by and among MCGRATH RENTCORP, a California corporation (the “Company”), each lender party hereto and BANK OF AMERICA, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer (in such capacity, the “Administrative Agent”).  Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed thereto in the Credit Agreement (as defined below).

W I T N E S S E T H

WHEREAS, the Company, certain banks and financial institutions from time to time party thereto (collectively, the “Lenders”), and the Administrative Agent are parties to that certain Amended and Restated Credit Agreement, dated as of June 15, 2012 (as amended, amended and restated, extended, supplemented or otherwise modified from time to time, the “Credit Agreement”);

WHEREAS, the Company has requested that the Lenders amend certain provisions of the Credit Agreement; and

WHEREAS, the Lenders are willing to make such amendments to the Credit Agreement, in accordance with and subject to the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

ARTICLE I
AMENDMENTS TO CREDIT AGREEMENT

1.1New Definitions.  The following definitions are hereby added to Section 1.01 of the Credit Agreement in the appropriate alphabetical order:

“Designated Jurisdiction” means any country or territory to the extent that such country or territory itself is the subject of any Sanction.

“LIBOR” has the meaning specified in clause (a) of the definition of “Eurodollar Rate”.

“LIBOR Rate” has the meaning specified in clause (a) of the definition of “Eurodollar Rate”.

“OFAC” means the Office of Foreign Assets Control of the United States Department of the Treasury.

“Sanction(s)” means any sanction administered or enforced by the United States Government (including, without limitation, OFAC), the United Nations Security Council, the European Union, Her Majesty’s Treasury or other relevant sanctions authority.

1.2Amendments to Certain Definitions.  The following definitions set forth in Section 1.01 of the Credit Agreement are hereby amended as follows:

(a)Clause (b) of the definition of “Change of Control” is hereby amended by deleting in its entirety the parenthetical appearing therein, which reads as follows:

(excluding, in the case of both clause (ii) and clause (iii), any individual whose initial nomination for, or assumption of office as, a member of that board or equivalent governing body occurs as a result of an actual or threatened solicitation of proxies or consents for the election or removal of one or more directors by any person or group other than a solicitation for the election of one or more directors by or on behalf of the board of directors)

(b)The definition of “Committed Loan Notice” is hereby amended by (i) deleting the phrase “, if in writing,” and (ii) inserting the following phrase at the end of such definition:

or such other form as may be approved by the Administrative Agent (including any form on an electronic platform or electronic transmission system as shall be approved by the Administrative Agent), appropriately completed and signed by a Responsible Officer of the Borrower.

(c)The definition of “Eurodollar Rate” is hereby amended and restated in its entirety to read as follows:

(a)for any Interest Period with respect to a Eurodollar Rate Loan, the rate per annum equal to the London Interbank Offered Rate (“LIBOR”), or a comparable or successor rate which rate is approved by the Administrative Agent, as published on the applicable Bloomberg screen page (or such other commercially available source providing such quotations as may be designated by the Administrative Agent from time to time) (in such case, the “LIBOR Rate”) at or about 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period; and

(b)for any interest calculation with respect to a Base Rate Loan on any date, the rate per annum equal to the LIBOR Rate, at or about 11:00 a.m., London time, two Business Days prior to such date for Dollar deposits with a term of one month commencing that day;

provided that:  (i) to the extent a comparable or successor rate is approved by the Administrative Agent in connection herewith, the approved rate shall be applied in a manner consistent with market practice; and provided, further, that to the extent such market practice is not administratively feasible for the Administrative Agent, such approved rate shall be applied in a manner as otherwise reasonably determined by the Administrative Agent; and (ii) if the Eurodollar Rate shall be less than zero, such rate shall be deemed zero for purposes of this Agreement.

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(d)The definition of “Responsible Officer” is hereby amended by inserting the following phrase at the end of the first sentence of such definition: 

or any other officer or employee of the applicable Loan Party designated in or pursuant to an agreement between the applicable Loan Party and the Administrative Agent. 

(e)The definition of “Swing Line Loan Notice” is hereby amended by (i) deleting the phrase “, if in writing,” and (ii) inserting the following phrase at the end of such definition:

or such other form as may be approved by the Administrative Agent (including any form on an electronic platform or electronic transmission system as shall be approved by the Administrative Agent), appropriately completed and signed by a Responsible Officer of the Borrower.

1.3New Sections.  The following Sections are hereby added to the Credit Agreement in the appropriate numerical order:

(a)The following new Sections are added to the end of Article V of the Credit Agreement:

Section 5.21.  Sanctions.  Neither the Borrower, nor any of its Subsidiaries, nor, to the knowledge of the Borrower and its Subsidiaries, any director, officer, employee, agent, affiliate or representative thereof, is an individual or entity that is, or is owned or controlled by any individual or entity that is (a) currently the subject or target of any Sanctions or (b) located, organized or resident in a Designated Jurisdiction.

Section 5.22.  Anti-Corruption Laws.  The Borrower and its Subsidiaries have, in all material respects, conducted their businesses in compliance with the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, and other similar anti-corruption legislation in other jurisdictions applicable to the Borrower and its Subsidiaries, and have instituted and maintained policies and procedures designed to promote and achieve compliance with such laws.

(b)The following new Section 6.13 is added to the end of Article VI of the Credit Agreement:

Section 6.13.  Anti-Corruption Laws.  Conduct its businesses, in all material respects, in compliance with the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, and other similar anti-corruption legislation in other jurisdictions where it conducts business, and maintain policies and procedures designed to promote and achieve compliance with such laws. 

(c)The following new Sections are added to the end of Article VII of the Credit Agreement:

(d)Section 7.11.  Sanctions.  Use the proceeds of any Credit Extension, or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other individual or entity, to fund any 

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activities of or business with any individual or entity, or in any Designated Jurisdiction, that, at the time of such funding, is the subject of Sanctions, or in any other manner that will result in (i) a material violation by the Borrower or its Subsidiaries of any Sanctions or (ii) any of the Lender, Arranger, Administrative Agent, L/C Issuer, Swing Line Lender or other participant in this transaction being in violation of Sanctions. 

Section 7.12.  Anti-Corruption Laws.  Use the proceeds of any Credit Extension for any purpose which would breach the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010 and other similar anti-corruption legislation in other jurisdictions where it conducts business.

(e)The following new Section 10.20 is added to the end of Article X of the Credit Agreement:

Section 10.20.  California Judicial Reference.  If any action or proceeding is filed in a court of the State of California by or against any party hereto in connection with any of the transactions contemplated by this Agreement or any other Loan Document, (a) the court shall, and is hereby directed to, make a general reference pursuant to California Code of Civil Procedure Section 638 to a referee (who shall be a single active or retired judge) to hear and determine all of the issues in such action or proceeding (whether of fact or of law) and to report a statement of decision; provided that at the option of any party to such proceeding, any such issues pertaining to a “provisional remedy” as defined in California Code of Civil Procedure Section 1281.8 shall be heard and determined by the court; and (b) without limiting the generality of Section 10.04, the Borrower shall be solely responsible to pay all fees and expenses of any referee appointed in such action or proceeding.

1.4Amendments to Certain Sections.  The following Sections of the Credit Agreement are hereby amended as follows:

(a)Clause (a) of Section 2.02 of the Credit Agreement is hereby amended as follows:

(i)The first sentence thereof is hereby amended and restated in its entirety to read as follows:

Each Committed Borrowing, each conversion of Committed Loans from one Type to the other, and each continuation of Eurodollar Rate Loans shall be made upon the Borrower’s irrevocable notice to the Administrative Agent, which may be given by (A) telephone or (B) a Committed Loan Notice; provided that any telephonic notice must be confirmed immediately by delivery to the Administrative Agent of a Committed Loan Notice.

(ii) the words “such notice” in the second sentence thereof are replaced with “Committed Loan Notice”, (iii) the fourth sentence thereof is deleted in its entirety, and (iv) the parenthetical phrase “(whether telephonic or written)” in the seventh sentence thereof is deleted in its entirety.

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(b)Clause (b) of Section 2.04 of the Credit Agreement is hereby amended as follows: 

(i)The first sentence thereof is hereby amended and restated in its entirety to read as follows:

Each Swing Line Borrowing shall be made upon the Borrower’s irrevocable notice to the Swing Line Lender and the Administrative Agent, which may be given by (A) telephone or (B) by a Swing Line Loan Notice; provided that any telephonic notice must be confirmed promptly by delivery to the Swing Line Lender and the Administrative Agent of a Swing Line Loan Notice.

(ii) the words “such notice” in the second sentence thereof are replaced with “Swing Line Loan Notice”, (iii) the third sentence thereof is deleted in its entirety, and (iv) the word “telephonic” appearing immediately before the phrase “Swing Line Loan Notice” in the fourth sentence thereof is deleted.

(c)Clause (c) of Section 7.06 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

the Borrower and each Subsidiary may purchase, redeem or otherwise acquire Equity Interests issued by it (i) with proceeds received from the substantially concurrent issue of new shares of its common stock or other common Equity Interests or (ii) in cash so long as such Restricted Payments do not exceed $120,000,000 in the aggregate over the term of this Agreement

(d)Section 10.10 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

This Agreement and each of the other Loan Documents may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement, the other Loan Documents, and any separate letter agreements with respect to fees payable to the Administrative Agent or the L/C Issuer, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Except as provided in Section 4.01, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.  Delivery of an executed counterpart of a signature page of this Agreement or any other Loan Document, or any certificate delivered thereunder, by fax transmission or e-mail transmission (e.g. “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Agreement or such other Loan Document or certificate.  Without limiting the foregoing, to the extent a manually executed counterpart is not specifically required to be delivered under the terms of any Loan Document, upon the request of any party, such fax transmission or e-mail transmission shall be promptly followed by such manually executed counterpart.

5

 

(e)Section 10.17 of the Credit Agreement is hereby amended and restated in its entirety to read as follows: 

The words “delivery,” “execute,” “execution,” “signed,” “signature,” and words of like import in any Loan Document or any other document executed in connection herewith shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Administrative Agent, or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state Laws based on the Uniform Electronic Transactions Act; provided that notwithstanding anything contained herein to the contrary the Administrative Agent is under no obligation to agree to accept electronic signatures in any form or in any format unless expressly agreed to by the Administrative Agent pursuant to procedures approved by it; and provided, further, without limiting the foregoing, upon the request of the Administrative Agent, any electronic signature shall be promptly followed by such manually executed counterpart.

ARTICLE II
CONDITIONS TO EFFECTIVENESS

2.1Closing Conditions.  This Amendment shall become effective as of the day and year set forth above (the “Amendment Effective Date”) upon satisfaction of the following conditions (in each case, in form and substance reasonably acceptable to the Administrative Agent) on or prior to August 24, 2015:

(a)Executed Amendment.  The Administrative Agent shall have received a copy of this Amendment duly executed by the Company, the Required Lenders and the Administrative Agent.

(b)Default.  On and as of the date of this Amendment, no Default or Event of Default shall exist.

(c)Fees and Expenses.  The Administrative Agent shall have received from the Company such fees and expenses that are payable in connection with the consummation of the transactions contemplated hereby, and Winstead PC shall have received from the Company payment of all outstanding fees and expenses previously incurred and all fees and expenses incurred in connection with this Amendment.

(d)Resolutions; Good Standings; etc.  The Administrative Agent shall have received from the Company such documents and certifications as the Administrative Agent may reasonably require to evidence (i) the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Amendment; and (ii) that the Company is validly existing and in good standing under the laws of California.

(e)Miscellaneous.  All other documents and legal matters in connection with the transactions contemplated by this Amendment shall be reasonably satisfactory in form and substance to the Administrative Agent and its counsel.

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ARTICLE III
MISCELLANEOUS

3.1Amended Terms.  On and after the Amendment Effective Date, all references to the Credit Agreement in each of the Loan Documents shall hereafter mean the Credit Agreement as amended by this Amendment.  Except as specifically amended hereby or otherwise agreed, the Credit Agreement is hereby ratified and confirmed and shall remain in full force and effect according to its terms.

3.2FATCA.  For purposes of determining withholding Taxes imposed under FATCA, from and after the Amendment Effective Date, the Company and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) the Obligations as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).

3.3Representations and Warranties.  The Company represents and warrants as follows:

(a)It has taken all necessary action to authorize the execution, delivery and performance of this Amendment.

(b)This Amendment has been duly executed and delivered by the Company.  This Amendment constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

(c)No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, the Company of this Amendment, except for those which have been made or obtained and are in full force and effect and except for any filing of this Amendment with the SEC.

(d)The representations and warranties of (i) the Company contained in Article V of the Credit Agreement and (ii) each Loan Party contained in each other Loan Document, that (A) in either case are qualified by materiality, shall be true and correct on and as of the Amendment Effective Date, and (B) are not qualified by materiality, shall be true and correct in all material respects on and as of the Amendment Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date.

(e)After giving effect to this Amendment, no event has occurred and is continuing which constitutes a Default or an Event of Default.

(f)Except as specifically provided in this Amendment, the Obligations are not reduced or modified by this Amendment and are not subject to any offsets, defenses or counterclaims.

3.4Reaffirmation of Obligations, etc.  The Company hereby ratifies the Credit Agreement (including after giving effect to this Amendment) and acknowledges and reaffirms that (a) it is bound by all terms of the Credit Agreement (including after giving effect to this Amendment) applicable to it and (b) it is responsible for the observance and full performance of its Obligations thereunder.  The execution, 

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delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents. 

3.5Loan Document.  This Amendment shall constitute a Loan Document under the terms of the Credit Agreement.

3.6Further Assurances.  The Company agrees to promptly take such action, upon the request of the Administrative Agent, as is necessary to carry out the intent of this Amendment.

3.7Entirety.  This Amendment and the other Loan Documents embody the entire agreement among the parties hereto and supersede all prior agreements and understandings, oral or written, if any, relating to the subject matter hereof.

3.8Counterparts; Telecopy.  This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this Amendment or any other document required to be delivered hereunder, by fax transmission or e-mail transmission (e.g. “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Agreement.  Without limiting the foregoing, upon the request of any party, such fax transmission or e-mail transmission shall be promptly followed by such manually executed counterpart.

3.9No Actions, Claims, Etc.  As of the date hereof, the Company hereby acknowledges and confirms that it has no knowledge of any actions, causes of action, claims, demands, damages and liabilities of whatever kind or nature, in law or in equity, against the Administrative Agent, the Lenders, or the Administrative Agent’s or the Lenders’ respective officers, employees, representatives, agents, counsel or directors arising from any action by such Persons, or failure of such Persons to act under the Credit Agreement on or prior to the date hereof.  

3.10GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

3.11Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

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IN WITNESS WHEREOF the parties hereto have caused this Amendment to be duly executed on the date first above written.

	
COMPANY:
	
MCGRATH RENTCORP,
a California corporation

By: /s/ Keith E. Pratt
       Keith E. Pratt
       CFO

 

4844-1165-7510

[Signature Page to First Amendment to Credit Agreement]

 

	
ADMINISTRATIVE AGENT:
	
BANK OF AMERICA, N.A., as Administrative Agent

By:/s/ Dora Brown
       Dora A. Brown
       Vice President 

4844-1165-7510

[Signature Page to First Amendment to Amended and Restated Credit Agreement]

	
LENDERS:
	
BANK OF AMERICA, N.A., as a Lender, L/C Issuer and Swing Line Lender

By:/s/ Karina Skuggedal
       Karina Skuggedal
       Vice President

4844-1165-7510

[Signature Page to First Amendment to Amended and Restated Credit Agreement]

	

	
UNION BANK, N.A., as a Lender

 

By:/s/ Henry G. Montgomery

     Henry G. Montgomery

     Director

 

4844-1165-7510

[Signature Page to First Amendment to Amended and Restated Credit Agreement]

	

	
U.S. BANK NATIONAL ASSOCIATION, as a Lender

 

By:/s/ Ashlee Holdgrafer

     Ashlee Holdgrafer

     Assistant Vice President

 

4844-1165-7510

[Signature Page to First Amendment to Amended and Restated Credit Agreement]

	

	
WELLS FARGO BANK, N.A., as a Lender

 

By:/s/ Jose Henriquez

     Jose HenriquezLoan 

     Team Manager

4844-1165-7510

[Signature Page to First Amendment to Amended and Restated Credit Agreement]

	

	
CITIBANK, N.A., as a Lender

 

By: /s/ Nancy Dias

     Nancy Dias

     SV & Sr. Relationship Manager

 

4844-1165-7510

[Signature Page to First Amendment to Amended and Restated Credit Agreement]

	

	
FIFTH THIRD BANK, as a Lender

 

By: /s/ Suzanne Rode

     Suzanne Rode

     Managing Director

 

4844-1165-7510

[Signature Page to First Amendment to Amended and Restated Credit Agreement]

	

	
THE NORTHERN TRUST COMPANY, as a Lender

 

By: /s/ John Lascody

     John Lascody

     Vice President

 

 

 

4844-1165-7510

[Signature Page to First Amendment to Amended and Restated Credit Agreement]

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