Document:

exv10w8

 

IMAX CORPORATION

Exhibit 10.8

Amended Employment Agreement

Imax (the “Company”) and Executive, subject to Section 5(e) hereof, agree to cancel the last year
of the term of employment of the Executive’s employment agreement dated July 1, 1998 (“Original
Employment Contract”) and extend the employment term for three additional years with the new term
from July 1, 2000 to June 30, 2003 (the “Amended Contract”) on the same terms and conditions as set
out in the Original Employment Contract, except as specified below. Terms used herein and not
defined shall have the meanings assigned to them in the Original Employment Contract.

	1.	 	Case Compensation – As set out in the Original Employment Contract.
	 
	2.	 	Additional Option Grants – The Company agrees to issue Executive 800,000 ten-year
options at a strike price equal to the closing price on the day the Board approves this
agreement. Except as provided below, options will vest 1/3 on January 1, 2001, 1/3 on July 1,
2001, and 1/3 on July 1, 2002.
	 
	3.	 	Restricted Stock Grant – The Company agrees to issue 180,000 restricted shares (or
their Phantom Stock equivalent) to Executive on the day the Board approves this agreement.
Except, as provided below, restricted stock will vest 1/3 on January 1, 2001, 1/3 on July 1,
2001, and 1/3 on July 1, 2002.
	 
	4.	 	Should any required regulatory or shareholder approvals with respect to the granting of the
options or restricted stock not be obtained by the Company, the Company shall make such
adjustments to the Executive’s compensation, hereunder as will put the Executive in the same
after-tax financial position as he would have been if such approvals had been received.
	 
	5.	 	Change of Control Provisions

	 	(a)	 	In the event of a Change of Control (without regard to any subsequent event)
there will be accelerated vesting of the Executive’s stock options and restricted
stock.
	 
	 	(b)	 	In the event of a Change of Control and subsequent termination (or
constructive termination) of the Executive there will be an acceleration (without any
discount to present value) of the cash component of Executive’s compensation under the
Amended Contract (and the Original Employment Agreement if the renewal term has not yet
commenced) equal to the number of years left on the Executive’s agreements (including a
fraction thereof) times the total cash compensation of the Executive for the
full (i.e., 12 month) fiscal year preceding termination.

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	 	(c)	 	If there is a Change of Control by way of stock merger the options will vest
(as set out in 5(a) directly above) and be converted at the stock merger conversion
ratio into options of the acquiring company (if it is public) or a cash-out of the
options (if it is not public).
	 
	 	(d)	 	A change of control is defined as any person or persons acting in concert
acquiring beneficial ownership of greater than 50% of the outstanding common shares of
the Company, whether by direct or indirect acquisition or as a result of a merger or
reorganization or a sale of all or substantially all of the Company’s assets and will
not include sale of the WP block to one or more third parties.
	 
	 	(e)	 	If there is no Change of Control by 12/31/00, the contract extension component
of this Amended Contract shall become void but the options and restricted stock grants
included in this Amended Contract become fully vested upon the earlier of a Change of
Control subsequent to 12/31/00, termination, non-renewal, constructive termination or
6/30/01. In addition, of there is no Change of Control by 12/31/00, the term of the
Original Employment Agreement shall be reinstated whereby Executive shall continue to
render services to Company until 6/30/01.

	6.	 	Voluntary Resignation, Termination, Etc.

	 	(a)	 	If the Executive shall voluntarily resign, all unvested options and restricted
stock shall be cancelled immediately and all vested options shall remain exercisable
for the duration of their original term.
	 
	 	(b)	 	If the Executive shall be terminated without cause all unvested stock options,
restricted stock and cash compensation (salary and bonus without any discount to
present value as described in section 5(b) above) shall immediately vest and become
due.
	 
	 	(c)	 	If the Executive shall be terminated for Cause all unvested options and
unvested restricted stock (including those granted pursuant to previous employment
agreements between Company and Executive) shall be cancelled immediately and all of the
Executive’s options and restricted stock must be exercised within 90 days of
termination, after which date they shall be cancelled.

	7.	 	Retirement and Long Term Health Coverage

	 	(a)	 	The Company agrees to create a retirement plan for the Executive as set out in
Exhibit 1.
	 
	 	(b)	 	Company agrees to maintain retiree health benefits for Executive upon
termination of the Executive’s employment equal to the benefits provided for active
employees until the Executive becomes eligible for Medicare and, thereafter, Medicare
supplement coverage selected by Executive.

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	8.	 	Restrictions on Competitive Employment – As agreed upon in the Original Employment
Contract; however, the term of the Non-Compete shall be extended to four (4) years beyond
termination of employment.

	9.	 	Consultancy – At the end of Executive’s employment (for whatever reason), Executive
agrees to consult with Company for a period of three years on such issues and items as
requested by Company, including but not limited to theatre signings, management issues, film
strategy issues, technological issues and/or issues with respect to management transition
subject to the Executive’s other commitments.

	10.	 	Incorporation by Reference – All clauses in the Original Employment Contract will
remain in full force and effect unless specifically amended in this agreement. In the event
of any conflict between the Original Employment Contract and the Amended Contract, the Amended
Contract shall prevail.

	11.	 	Arbitration – All disputes under this agreement shall be subject to binding
arbitration under the AAA Rules and Company shall be required to cover Executive’s legal costs
and the cost of arbitration.

	12.	 	Long Form Agreement – Until such time as this agreement is superceded by a long form
agreement, it will represent the binding agreement for both parties.

	 	 	 
	Richard L. Gelfond

	 	Imax Corporation
	 
	 	 
	“Richard L. Gelfond”

	 	“Garth M. Girvan”
	 

	 	 
	 

	 	By: Garth M. Girvan
	7/12/00
	 	 
	 

Date

	 	 

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EXHIBIT 1

SERP Benefit Summary

Richard Gelfond

Imax Corporation

Retirement Age – Age 55

SERP Benefit – Retirement and Survivor Benefits

Retirement Benefit – 76.5% of final five-year average full cash compensation (including
bonus)

Survivor Benefit – 100% of Retirement Benefit

Death Benefit – Survivor Benefit

Disability Benefit – SERP Benefit

Severance Benefits –

Change of Control – SERP Benefit

Termination – SERP Benefit

Registration – SERP Benefit, according to the

                        following Vesting Schedule;

50%
vested, plus 50% spread over the remaining working years to age 55

For Cause – Loss of benefits

			
	Cost of Living Adjustment – 	Applies to the Retirement and Survivor Benefits
At a rate according to the published Cost of Living Tables
(For illustrative purposes at 3.0% per annum)

4exv10w15

 

Exhibit 10.15

IMAX CORPORATION

2525 Speakman Drive, Sheridan Park

Mississauga, Ontario, Canada L5K 1B1

	 	 	 
	 	To: 	 Robert D. Lister
	 	From:	 Rich Gelfond and Brad Wechsler
	 	Date:	 August 21, 2000

As we discussed a few weeks back, among our top priorities as we go through the process of
evaluating potential strategic options for the Company is the retention of our key staff members.
Toward this end, we are providing our most valuable employees with incentives to remain with the
Company during this process and to be committed to, and focused on, advancing the business and
supporting our continued operations. Thus, the Company is pleased to offer you the following
package of incentive payments and benefits, on and subject to the terms and conditions set forth
below. Please read these terms and feel free to call us or Mary Sullivan with any questions you
may have.

2000 Bonus: We are committing that the Company’s management bonus plan will be honored this
year and bonuses for the calendar year 2000 will be paid in accordance with past practice. If
there is a Change of Control of the Company during 2000, we will ensure that any successor commits
to honoring the management bonus plan for your calendar year 2000 bonus.

Retention Bonus: You shall be eligible to receive a retention bonus of up to a total of
US$215,000, based upon the following terms: (a) On July 1, 2001, you shall receive US$107,500,
provided that you have not resigned from the Company or been terminated For Cause prior thereto,
regardless of whether there has been a Transaction; (b) if there is a Transaction, and you are
terminated Without Cause after July 1, 2001, but within two (2) years of the completion of the
Transaction, you shall receive (in addition to the July 1 payment) an additional US$107,500; (c) if
there is a Transaction and you are terminated Without Cause prior to July 1, 2001, you shall
receive (in lieu of the July 1 payment) US$215,000.

Severance: If a Transaction occurs and you are terminated Without Cause by the Company
within two (2) years after the completion of the Transaction, you will be entitled to a severance
benefit at least equal to six (6) months of your base salary (at the time of such termination).
This benefit will be payable, at the Company’s option, in either a lump sum or by salary
continuation in accordance with the Company’s normal payroll procedures. This payment shall be in
addition to any bonus that may be payable to you pursuant to the preceding paragraph. In the event
you are entitled to other benefits in the nature of severance, whether under contract or law, the
severance benefit payable under this paragraph shall be offset by the amount of such other
severance benefits.

 

 

The Company will require any successor to expressly assume and agree to perform the obligations
under this letter agreement.

Please make sure you have read the above and the attached terms and conditions and indicate your
agreement with all of such terms and conditions by executing this letter agreement in the space
provided below and returning it to Mary Sullivan.

	 	 	 	 	 
	 	 	Sincerely,
	 
	 	 	 	 
	 	 	IMAX LTD.
	 
	 	 	 	 
	 

	 	 	 	“Bradley J. Wechsler
	 	 	 
	 

	 	By:
	 	Bradley J. Wechsler
	 

	 	Title:
	 	Co-CEO

Agreed to and accepted,

this 23rd day of August 2000:

	 	 	 
	      “Robert D. Lister
	 	 
	 

      Robert D. Lister

	 	 

 

 

Terms and Conditions of Retention Incentive Package

Definitions:

For purposes of this letter agreement, a “Change of Control” of the Company will be deemed to occur
if (a) (i) there is a sale of more than 50% of the assets of the Company to a third party (other
than to a person or group including Brad Wechsler or Rich Gelfond); or (ii) any person or group
(other than a person or group including Brad Wechsler or Rich Gelfond) acquires 50% or more of the
voting power of the outstanding stock of the Company or the shareholders of the Company immediately
prior to any corporate transaction cease to own at least 50% of the voting power of the outstanding
stock of the surviving entity (any of the above, a “Transaction”); and (b) immediately after the
Transaction is completed, Brad Wechsler and Rich Gelfond either (i) are no longer co-CEOs of the
Company or (ii) do not have the power to determine your year-end bonus for calendar year 2000.

For purposes of this letter agreement, termination “Without Cause” shall mean termination of your
employment for any reason or no reason, including by virtue of the Company’s decision not to renew
or extend your employment agreement, other than For Cause

For purposes of this letter agreement, termination “For Cause” shall have the same meaning as
defined in your employment agreement, and shall include as further grounds your breaching of the
confidentiality provision of this letter agreement.

Legal Terms and Conditions:

The payments and benefits referred to herein are one-time-only payments and benefits, applicable to
just one (1) Transaction and not to any subsequent such event. 

The terms of this letter agreement are strictly confidential. Your disclosure of these terms to
any other person (aside from your immediate family, your legal, financial or other advisors or as
required by law) shall subject you to the revocation of any or all of the payments and benefits
provided herein, at the sole discretion of the Company.

This letter agreement, together with your employment agreement, shall constitute the entire
agreement between the parties hereto with respect to the subject matter of benefits in connection
with a Change of Control or Transaction, and all promises, representations, understandings,
arrangements and prior arrangements relating to such subject matter are merged and superseded by
such agreements.

Any payments made under this letter agreement shall be subject to all applicable federal, state,
city or other taxes required under relevant law.

This letter agreement shall be binding on and inure to the benefit of the Company and its
successors and permitted assigns. This agreement shall also be binding on and inure to the benefit
of you and your heirs, executors, administrators and legal representatives.

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