EX-10.7 9 t1601634_ex10-7.htm EXHIBIT 10.7

 

Exhibit 10.7

 

EXECUTION VERSION

 

AMENDMENT TO

 

VOTING AND STANDSTILL AGREEMENT

 

dated as of

 

June 30, 2016

 

among

 

LIONS GATE ENTERTAINMENT CORP.,

 

LIBERTY GLOBAL INCORPORATED LIMITED,

 

DISCOVERY LIGHTNING INVESTMENTS LTD.,

 

JOHN C. MALONE,

 

MHR FUND MANAGEMENT, LLC,

 

LIBERTY GLOBAL PLC,

 

DISCOVERY COMMUNICATIONS, INC.

 

and

 

the Mammoth Funds (as defined herein)

 

 

 

 

VOTING AND STANDSTILL AGREEMENT

 

This AMENDMENT TO VOTING AND STANDSTILL AGREEMENT (this “Amendment”) dated as of June 30, 2016 among MHR Fund Management, LLC, a Delaware limited liability company (“Mammoth”), the affiliated funds of Mammoth party hereto (the “Mammoth Funds”), Liberty Global Incorporated Limited, a limited company organized under the laws of England and Wales (“Leopard”), Discovery Lightning Investments Ltd., a limited company organized under the laws of England and Wales (“Dragon”), John C. Malone (“M”), Lions Gate Entertainment Corp., a corporation organized under the laws of British Columbia, Canada (subject to Section 1.02(b) thereto, the “Company”), Liberty Global plc, a public limited company organized under the laws of England and Wales (“Leopard Parent”), and Discovery Communications, Inc., a Delaware corporation (“Dragon Parent” and, together with Mammoth, Leopard Parent and M, the “Investors” and each, an “Investor”) (collectively the “Parties”).

 

W I T N E S S E T H :

 

WHEREAS, the Parties entered into a Voting and Standstill Agreement, dated as of November 10, 2015 (the “Agreement”; capitalized terms used but not defined herein shall have the meanings set forth in the Agreement); and

 

WHEREAS, the Company, Orion Arm Acquisition Inc., a Delaware corporation and an indirect wholly-owned subsidiary of the Company (“Orion”), and Starz, a Delaware corporation, are entering into an Agreement and Plan of Merger, dated as of June 30, 2016, (the “Merger Agreement”, and the transactions contemplated therein, the “Merger”) upon the terms and subject to the conditions in force on such date; and

 

WHEREAS, the Company and Orion are entering into a Stock Exchange Agreement, dated as of June 30, 2016, with the stockholders listed on Schedule 1 thereto (the “2016 Exchange Agreement”), upon the terms and subject to the conditions in force on such date; and

 

WHEREAS, in connection with the Merger Agreement and the 2016 Exchange Agreement, the Parties desire to amend the Agreement.

 

NOW, THEREFORE, in consideration of the covenants and agreements contained herein, the parties hereto agree as follows:

 

1.  Initial Excess Securities. The definition of “Initial Excess Securities” is amended to replace the reference to “13.5% of the Total Voting Power” therein with “the greater of (a) 13.5% of the Total Voting Power and (b) if either the Merger (as defined in the Merger Agreement) or the Exchange (as defined in the Stock Exchange Agreement, dated as of June 30, 2016, by and among the

 

 

 

 

Company, Orion Arm Acquisition Inc., a Delaware corporation and an indirect wholly-owned subsidiary of the Company, and the stockholders listed on Schedule 1 thereto) occurs, the lesser of (i) 14.2% of the Total Voting Power and (ii) that percentage of the Total Voting Power that the LDM Investors and their respective Affiliates and any Person that is a member of a group with any such Persons shall have immediately following the consummation of the Merger or the Exchange, as the case may be”.

 

2.  Standstill.  The following words shall be added at the end of Section 2.01(a) of the Agreement: “; provided, further, that any LDM Investor shall be permitted to acquire Parent Non-Voting Stock (as defined in the Merger Agreement) pursuant to the transactions contemplated by the Merger Agreement, dated as of June 30, 2016 (the “Merger Agreement”), by and among the Company, Orion Arm Acquisition Inc., a Delaware corporation and an indirect wholly-owned subsidiary of the Company, and Starz, a Delaware corporation.”

 

3. Definitions.

 

(a)            The definition of Common Share is amended to add the following words at the end: “, including, for the avoidance of doubt, the Parent Voting Stock and the Parent Non-Voting Stock (in each case as defined in the Merger Agreement).”

 

(b)            The definition of Voting Securities is amended to add the following words after “Common Shares”:  “entitled to vote in the election of directors of the Company”.

 

4. No Other Changes. All terms of the Agreement, except as amended by this Amendment, remain in full force and effect.

 

[Signature Pages Follow]

 

 2 

 

 

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

 

  LIBERTY GLOBAL
INCORPORATED LIMITED
   
  By: /s/ Jeremy Evans
    Name: Jeremy Evans
    Title: Authorized Signatory
       
  LIBERTY GLOBAL
INCORPORATED LIMITED
   
  By: /s/ Jeremy Evans
    Name: Jeremy Evans
    Title: Authorized Signatory

 

  For Notices:
  Leopard
  Griffin House
  161 Hammersmith Road
  London W6 8BS
  United Kingdom
  Attention: General Counsel, Legal
  Department
  Fax:  +44 20 8483 6400
  E-mail: As Provided Previously
   
  with a copy to:
   
  Leopard
  12300 Liberty Boulevard
  Englewood, CO 80112
  Attention: General Counsel, Legal
   Department
  Facsimile No.: (303) 220-6691
  E-mail: As Provided Previously
   
  with a copy (which shall not
  constitute notice) to:

 

Signature Page to Amendment to Standstill and Voting Agreement

 

 

 

 

  Shearman & Sterling LLP
  599 Lexington Avenue
  New York, NY 10022
  Attention: Robert Katz
  Facsimile No.: (646) 848-8008
  E-mail: rkatz@shearman.com

 

Signature Page to Amendment to Standstill and Voting Agreement

 

 

 

 

  DISCOVERY LIGHTNING
INVESTMENTS LTD.
   
  By: /s/ Bruce Campbell
    Name: Bruce Campbell
    Title: Chief Development, Distribution and Legal Officer

 

  For Notices:
  Discovery Lightning Investments, Ltd
  Chiswick Park Building 2
  566 Chiswick High Road
  London W4 5YB
  Attention:  Roanne Weekes, SVP
DNI Finance and Director
  Facsimile: +44 20 8811 3310
  E-mail: As Provided Previously
   
  with a copy to:
   
  Discovery Communications, LLC
  850 Third Avenue
  New York, NY 10022
  Attention:   Bruce Campbell, Chief
    Development,
   

Distribution and Legal

Officer

  Facsimile No.: (212) 548-5848
  E-mail: As Provided Previously
   
  with a copy (which shall not
constitute notice) to:
   
  Debevoise & Plimpton LLP
  919 Third Avenue
  New York, NY 10022
  Attention: Jonathan Levitsky
  Facsimile No.: (212) 909-6836
  E-mail: jelevitsky@debevoise.com

 

Signature Page to Amendment to Standstill and Voting Agreement

 

 

 

 

  /s/ John C. Malone
  John C. Malone

 

  For Notices:
  John C. Malone
  12300 Liberty Blvd., 2nd Floor
  Englewood, CO 80112
  Facsimile No.: (720) 875-5394
  Email: As Provided Previously
   
  with a copy (which shall not
  constitute notice) to:
   
  Sherman & Howard L.L.C.
  633 17th Street, Suite 3000
  Denver, CO  80202
  Attention: Steven D. Miller
  Facsimile No.: (303) 298-0940
  Email: smiller@shermanhoward.com

 

Signature Page to Amendment to Standstill and Voting Agreement

 

 

 

 

  MHR FUND MANAGEMENT, LLC
   
  By: /s/ Janet Yeung
    Name:  Janet Yeung
    Title: Authorized Signatory

 

  For Notices:
  MHR Fund Management LLC
  1345 Avenue of the Americas, Floor 42
  New York, NY 10105
  Attention: Janet Yeung
  Facsimile No.: (212) 262-9356
  Email: jyeung@mhrfund.com
   
  with a copy (which shall not constitute notice) to:
   
  Davis Polk & Wardwell LLP
  450 Lexington Avenue
  New York, New York  10017
  Attention:   Phillip Mills
    Brian Wolfe
  Facsimile No.: (212) 701-5800
  E-mail: phillip.mills@davispolk.com
    brian.wolfe@davispolk.com

 

Signature Page to Amendment to Standstill and Voting Agreement

 

 

 

 

  DISCOVERY COMMUNICATIONS, INC.
   
  By: /s/ Bruce Campbell
    Name: Bruce Campbell
    Title: Chief Development, Distribution and Legal Officer

 

  For Notices:
  Discovery Communications, LLC
  850 Third Avenue
  New York, NY 10022
  Attention: Bruce Campbell, Chief
    Development,
    Distribution and Legal
    Officer
  Facsimile No.: (212) 548-5848
  E-mail:
  bruce_campbell@discovery.com
   
  with a copy (which shall not
  constitute notice) to:
   
  Debevoise & Plimpton LLP
  919 Third Avenue
  New York, NY 10022
  Attention: Jonathan Levitsky
  Facsimile No.: (212) 909-6836
  E-mail: jelevitsky@debevoise.com

 

Signature Page to Amendment to Standstill and Voting Agreement

 

 

 

 

  MHR Capital Partners Master Account LP
   
  By: MHR Advisors LLC, its general partner
   
  By: /s/ Janet Yeung
    Name: Janet Yeung
    Title: Authorized Signatory

 

  MHR Capital Partners (100) LP
   
  By: MHR Advisors LLC, its general partner
   
  By: /s/ Janet Yeung
    Name: Janet Yeung
    Title: Authorized Signatory

 

  MHR Institutional Partners II LP
   
  By: MHR Institutional Advisors II LLC,
  its general partner
   
  By: /s/ Janet Yeung
    Name: Janet Yeung
    Title: Authorized Signatory

 

  MHR Institutional Partners IIA LP
   
  By: MHR Institutional Advisors II LLC,
  its general partner
   
  By: /s/ Janet Yeung
    Name: Janet Yeung
    Title: Authorized Signatory

 

Signature Page to Amendment to Standstill and Voting Agreement

 

3

 

 

  MHR Institutional Partners III LP
   
  By: MHR Institutional Advisors III LLC,
  its general partner
   
  By: /s/ Janet Yeung
    Name: Janet Yeung
    Title: Authorized Signatory

 

Signature Page to Amendment to Standstill and Voting Agreement

 

 

 

  Lions Gate Entertainment Corp.
   
  By: /s/ Wayne Levin
    Name:

Wayne Levin

    Title: General Counsel and Chief Strategy Officer

 

 

  For Notices:
   
  Lions Gate Entertainment Corp.
2700 Colorado Avenue
Santa Monica, CA 90404
Attention: Wayne Levin, General Counsel
and Chief Strategic Officer
Facsimile No.: (310) 496-1359
Email: wlevin@lionsgate.com
       

 

  with a copy (which shall not constitute notice) to:
   
  Wachtell, Lipton, Rosen & Katz
  51 West 52nd Street
  NY, NY 10019
  Attention: David E. Shapiro
  Facsimile No.: 212-403-2000
  Email: DEShapiro@wlrk.com

 

Signature Page to Amendment to Standstill and Voting Agreement