Document:

exv10w19

 

EXHIBIT 10.19

LIONS GATE ENTERTAINMENT CORP.

2004 PERFORMANCE INCENTIVE PLAN

NONQUALIFIED STOCK OPTION AGREEMENT

     THIS NONQUALIFIED STOCK OPTION AGREEMENT (this “Option Agreement”) dated ____________
by and between LIONS GATE ENTERTAINMENT CORP., a company continued under the laws of the Province
of British Columbia (the “Corporation”), and _______________ (the “Grantee”) evidences
the nonqualified stock option (the “Option”) granted by the Corporation to the Grantee as to the
number of shares of the Corporation’s Common Stock first set forth below.

	 	 	 	 	 
	Number of Shares of Common Stock:1

	 	_________
	 	Award Date: _________
	 
	 	 	 	 
	Exercise Price per Share:1

	 	$_________
	 	Expiration Date:1,2 _________
	 
	 	 	 	 
	Vesting 1,2 The Option
shall become vested as to one-third of the total number of shares of Common Stock subject to the Option on each of the
first, second and third anniversaries of the Award Date.

     The Option is granted under the Lions Gate Entertainment Corp. 2004 Performance Incentive Plan
(the “Plan”) and subject to the Terms and Conditions of Nonqualified Stock Option (the “Terms”)
attached to this Option Agreement (incorporated herein by this reference) and to the Plan. The
Option has been granted to the Grantee in fulfillment of the Corporation’s obligations related to
stock options under the provisions of Grantee’s written employment agreement, if applicable, or if
no such agreement exists, in addition to, and not in lieu of, any other form of compensation
otherwise payable or to be paid to the Grantee. Capitalized terms are defined in the Plan if not
defined herein. The parties agree to the terms of the Option set forth herein. The Grantee
acknowledges receipt of a copy of the Terms, the Plan and the Prospectus for the Plan.

	 	 	 	 	 
	“GRANTEE”
 

	 	LIONS GATE ENTERTAINMENT CORP.
a company recognized under the laws of
the Province of British Columbia

	 	 	 	 	 
	Signature

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Print Name:	 	 
	 

	 	 	 	 
	 	 	 	 	 
	Print Name

	 	Title:	 	 
	 

	 	 	 	 

 
 

 

	1	 	Subject to adjustment under Section 7.1 of the Plan.
	 
	2	 	Subject to early termination under Section 4 of the Terms and Section 7.4 of the Plan.

 

 

CONSENT OF SPOUSE

     In consideration of the Corporation’s execution of this Option Agreement, the undersigned
spouse of the Grantee agrees to be bound by all of the terms and provisions hereof and of the Plan.

 

	 	 	 	 
	 

	 	 
	Signature of Spouse

	 	Date

 

 

TERMS AND CONDITIONS OF NONQUALIFIED STOCK OPTION

1. Vesting; Limits on Exercise; Incentive Stock Option Status.

     The Option shall vest and become exercisable in percentage installments of the aggregate
number of shares subject to the Option as set forth on the cover page of this Option Agreement.
The Option may be exercised only to the extent the Option is vested and exercisable.

	 	•	 	Cumulative Exercisability. To the extent that the Option is vested and
exercisable, the Grantee has the right to exercise the Option (to the extent not
previously exercised), and such right shall continue, until the expiration or earlier
termination of the Option.
	 
	 	•	 	No Fractional Shares. Fractional share interests shall be disregarded, but
may be cumulated.
	 
	 	•	 	Minimum Exercise. No fewer than 1001 shares of Common Stock may
be purchased at any one time, unless the number purchased is the total number at the
time exercisable under the Option.
	 
	 	•	 	Nonqualified Stock Option. The Option is a nonqualified stock option and is
not, and shall not be, an incentive stock option within the meaning of Section 422 of
the Code.

2. Continuance of Employment/Service Required; No Employment/Service Commitment.

     The vesting schedule requires continued employment or service through each applicable vesting
date as a condition to the vesting of the applicable installment of the Option and the rights and
benefits under this Option Agreement. Employment or service for only a portion of the vesting
period, even if a substantial portion, will not entitle the Grantee to any proportionate vesting or
avoid or mitigate a termination of rights and benefits upon or following a termination of
employment or services as provided in Section 4 below or under the Plan.

     Nothing contained in this Option Agreement or the Plan constitutes a continued employment or
service commitment by the Corporation or any of its Subsidiaries, affects the Grantee’s status, if
he or she is an employee, as an employee at will who is subject to termination without cause,
confers upon the Grantee any right to remain employed by or in service to the Corporation or any
Subsidiary, interferes in any way with the right of the Corporation or any Subsidiary at any time
to terminate such employment or service, or affects the right of the Corporation or any Subsidiary
to increase or decrease the Grantee’s other compensation.

3. Method of Exercise of Option.

     The Option shall be exercisable by the delivery to the Secretary of the Corporation (or such
other person as the Administrator may require pursuant to such administrative exercise procedures
as the Administrator may implement from time to time) of:

 

 

	 	•	 	a written notice stating the number of shares of Common Stock to be purchased
pursuant to the Option or by the completion of such other administrative exercise
procedures as the Administrator may require from time to time,
	 
	 	•	 	payment in full for the Exercise Price of the shares to be purchased in cash, check
or by electronic funds transfer to the Corporation, or (subject to compliance with all
applicable laws, rules, regulations and listing requirements and further subject to
such rules as the Administrator may adopt as to any non-cash payment) in shares of
Common Stock already owned by the Participant, valued at their Fair Market Value on the
exercise date, provided, however, that any shares initially acquired
upon exercise of a stock option or otherwise from the Corporation must have been owned
by the Participant for at least six (6) months before the date of such exercise;
	 
	 	•	 	any written statements or agreements required pursuant to Section 8.1 of the Plan;
and
	 
	 	•	 	satisfaction of the tax withholding provisions of Section 8.5 of the Plan.

The Administrator also may, but is not required to, authorize a non-cash payment alternative by
notice and third party payment in such manner as may be authorized by the Administrator.

4. Early Termination of Option.

     4.1 Possible Termination of Option upon Change in Control. The Option is subject to
termination in connection with a Change in Control Event or certain similar reorganization events
as provided in Section 7.4 of the Plan.

     4.2 Termination of Option upon a Termination of Grantee’s Employment or Services. Subject to
earlier termination on the Expiration Date of the Option or pursuant to Section 4.1 above, if the
Grantee ceases to be employed by or ceases to provide services to the Corporation or a Subsidiary,
the following rules shall apply (the last day that the Grantee is employed by or provides services
to the Corporation or a Subsidiary is referred to as the Grantee’s “Severance Date”):

	 	•	 	other than as expressly provided below in this Section 4.2, (a) the Grantee (or the
Grantee’s beneficiary or personal representative in the event of the Grantee’s death)
will have until the date that is six (6) months after his or her Severance Date to
exercise the Option (or portion thereof) to the extent that it was vested on the
Severance Date, (b) the Option, to the extent not vested on the Severance Date, shall
terminate on the Severance Date, and (c) the Option, to the extent exercisable for the
6-month period following the Severance Date and not exercised during such period, shall
terminate at the close of business on the last day of the 6-month period;
	 
	 	•	 	if the Grantee’s employment or services are terminated by the Corporation or a
Subsidiary for Cause (as defined below), the Option (whether vested or not) shall
terminate on the Severance Date.

 

 

     For purposes of the Option, “Cause” means that the Grantee:

	 	(1)	 	has been negligent in the discharge of his or her duties to the Corporation or
any of its Subsidiaries, has refused to perform stated or assigned duties or is
incompetent in or (other than by reason of a disability or analogous condition)
incapable of performing those duties;
	 
	 	(2)	 	has been dishonest or committed or engaged in an act of theft, embezzlement or
fraud, a breach of confidentiality, an unauthorized disclosure or use of inside
information, customer lists, trade secrets or other confidential information; has
breached a fiduciary duty, or willfully and materially violated any other duty, law,
rule, regulation or policy of the Corporation, any of its Subsidiaries or any affiliate
of the Corporation or any of its Subsidiaries; or has been convicted of a felony or
misdemeanor (other than minor traffic violations or similar offenses);
	 
	 	(3)	 	has materially breached any of the provisions of any agreement with the
Corporation, any of its Subsidiaries or any affiliate of the Corporation or any of its
Subsidiaries; or
	 
	 	(4)	 	has engaged in unfair competition with, or otherwise acted intentionally in a
manner injurious to the reputation, business or assets of, the Corporation, any of its
Subsidiaries or any affiliate of the Corporation or any of its Subsidiaries; has
improperly induced a vendor or customer to break or terminate any contract with the
Corporation, any of its Subsidiaries or any affiliate of the Corporation or any of its
Subsidiaries; or has induced a principal for whom the Corporation, any of its
Subsidiaries or any affiliate of the Corporation or any of its Subsidiaries acts as
agent to terminate such agency relationship.

     In all events the Option is subject to earlier termination on the Expiration Date of the
Option or as contemplated by Section 4.1. The Administrator shall be the sole judge of whether the
Grantee continues to render employment or services for purposes of this Option Agreement.

5. Non-Transferability.

     The Option and any other rights of the Grantee under this Option Agreement or the Plan are
nontransferable and exercisable only by the Grantee, except as set forth in Section 5.7 of the
Plan.

6. Notices.

     Any notice to be given under the terms of this Option Agreement shall be deemed to have been
well and sufficiently given if mailed by prepaid registered mail, telexed, telecopied, telegraphed,
or delivered, if to the Corporation, at its principal office to the attention of the Secretary, and
if to the Grantee, at the Grantee’s last address on the payroll records of the Corporation, or at
such other address as each party may from time to time direct in writing. Any such notice shall be
deemed to have been received, if mailed, telexed, telecopied, or telegraphed, forty-eight hours
after the time of mailing, telexing, telecopying, or telegraphing, and if delivered, upon delivery.
If normal mail service is interrupted by a labour dispute, slowdown,

 

 

strike, force majeure, or other cause, a notice sent by mail shall not be deemed to be
received until actually received, and the party giving such notice shall use such other services as
may be available to ensure prompt delivery or shall deliver such notice.

7. Plan.

     The Option and all rights of the Grantee under this Option Agreement are subject to, and the
Grantee agrees to be bound by, all of the terms and conditions of the Plan, incorporated herein by
this reference. In the event of a conflict or inconsistency between the terms and conditions of
this Option Agreement and of the Plan, the terms and conditions of the Plan shall govern. The
Grantee agrees to be bound by the terms of the Plan and this Option Agreement (including these
Terms). The Grantee acknowledges having read and understanding the Plan, the Prospectus for the
Plan, and this Option Agreement. Unless otherwise expressly provided in other sections of this
Option Agreement, provisions of the Plan that confer discretionary authority on the Board or the
Administrator do not and shall not be deemed to create any rights in the Grantee unless such rights
are expressly set forth herein or are otherwise in the sole discretion of the Board or the
Administrator so conferred by appropriate action of the Board or the Administrator under the Plan
after the date hereof.

8. Entire Agreement.

     This Option Agreement (including these Terms) and the Plan together constitute the entire
agreement and supersede all prior understandings and agreements, written or oral, of the parties
hereto with respect to the subject matter hereof. The Plan and this Option Agreement may be
amended pursuant to Section 8.6 of the Plan. Such amendment must be in writing and signed by the
Corporation. The Corporation may, however, unilaterally waive any provision hereof in writing to
the extent such waiver does not adversely affect the interests of the Grantee hereunder, but no
such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a
waiver of any other provision hereof.

9. Governing Law.

     This Option Agreement shall be governed by, and construed in accordance with the laws of
California, except to the extent that the laws of British Columbia are applicable as the
jurisdiction of incorporation of the Corporation.

10. Effect of this Agreement.

     Subject to the Corporation’s right to terminate the Option pursuant to Section 7.4 of the
Plan, this Option Agreement shall be assumed by, be binding upon and inure to the benefit of any
successor or successors to the Corporation.

11. Quebec Optionees.

     If the Grantee is a resident of the Province of Quebec, the Grantee acknowledges receipt of an
information memorandum in respect of the Plan.

 

 

12. Language.

     The parties hereto have requested that this Option Agreement and the certificates, documents
or notices relating thereto be drafted in the English language. Les parties a cet accord ont exige
que cet accord et tous certifcats, documents ou avis y afferent soit redige en langue anglaise.

13. Counterparts.

     This Option Agreement may be executed simultaneously in any number of counterparts, each of
which shall be deemed an original but all of which together shall constitute one and the same
instrument.

14. Section Headings.

     The section headings of this Option Agreement are for convenience of reference only and shall
not be deemed to alter or affect any provision hereof.exv10w20

 

Exhibit 10.20

December 11, 2001

Mr. Michael Burns

8365 Sunset View Drive

Los Angeles, CA

90069

Dear Michael:

Re:   Amendment
to January 5, 2000 Stock Option Agreement 

This letter agreement amends the January 5, 2000 Lions Gate Entertainment Corp. Incentive
Plan Stock Option Agreement (the “Agreement”) as follows:

	a)	 	the 375,000 Optioned Shares exercisable at US$5.00 shall be replaced by 375,000 Phantom Options
which entitle the holder to a cash compensation equal to the amount that
the Market Price exceeds US$5.00 multiplied by the number of Phantom Options exercised;
	 
	b)	 	the vesting terms will be the same as outlined in clause 5(f) of the Agreement and where the
clause refers to Optioned Shares it will now read Phantom Options;
	 
	c)	 	Market Price shall be defined as the twenty trading day average closing price on the American
Stock Exchange ending the day prior to the exercise notice date;
	 
	d)	 	Lions Gate Entertainment will pay the resultant cash compensation less any statutory deductions
within 30 days of the exercise notice date;
	 
	e)	 	All other terms and conditions of the Agreement will apply to the Phantom Options, where
applicable.

If you agree with the above amendments please sign in the space provided below and return the
letter to this office.

If you have any further questions or concerns, please contact the undersigned at 605-609-6110.

Sincerely,

/s/ Gordon Keep

Gordon Keep

Senior Vice President

Agreed and acknowledged

/s/ Michael Burns

Michael Burns

Suite 3123, Three
Bentall Centre, 595 Burrard Street

P.O. Box 49139, Vancouver, BC Canada V7X 1J1

Tel: 604.609.6100 Fax: 604.609.6149 1.888.609.6120

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