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ex4_16.htm - Generated by SEC Publisher for SEC Filing

 

 

LIONS GATE ENTERTAINMENT INC.

2.9375% CONVERTIBLE SENIOR SUBORDINATED NOTE DUE 2026

LIONS GATE ENTERTAINMENT INC., a Delaware corporation (herein called the “Issuer”), for value received, hereby promises to pay to Kornitzer Capital Management Inc. or its assigns (the “Holder”), the principal sum of SIXTY-THREE MILLION SEVEN HUNDRED NINE THOUSAND ($63,709,000) on October 15,  2026 and interest thereon, as provided on the reverse hereof, until the principal and any unpaid and accrued interest is paid or duly provided for.  The right to payment of the principal and all other amounts due with respect hereto is subordinated to the rights of Senior Debt as (as defined in Exhibit A hereto) on the same terms and to the same extent as amounts due under the note and the indenture in substantially the form set forth as Exhibit A to this Note (any such note, an “Indenture Note”).

Interest Payment Dates:  April 15 and October 15, with the first payment to be made on October 15, 2010.

Record Dates:  April 1 and October 1.

REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.

 

 

 

IN WITNESS WHEREOF, LIONS GATE ENTERTAINMENT INC. has caused this instrument to be duly signed.

LIONS GATE ENTERTAINMENT INC.

By:_______________________________________

Name:

Title:

Dated:  ____________

 

 

 

LIONS GATE ENTERTAINMENT INC.

2.9375% CONVERTIBLE SENIOR SUBORDINATED NOTE DUE 2026

1.                  Interest.  Lions Gate Entertainment Inc., a Delaware corporation (the “Issuer”), promises to pay interest on the principal amount of this Note at the rate of 2.9375% per annum from April 15, 2010 or from the most recent date to which interest has been paid until July 19, 2013, and thereafter interest at the rate of 5.000% per annum until the principal of this Note is paid or made available for payment; provided that if this Note remains held by the initial holder five Business Days after the date hereof, interest will continue to accrue at a rate of 2.9375% per annum from and after July 19, 2013.  The Issuer will pay interest semi-annually on April 15 and October 15 of each year, with the first payment to be made on October 15, 2010.  Interest on the Notes will accrue on the principal amount from the most recent date to which interest has been paid or provided for or, if no interest has been paid, from April 15, 2010.  Interest will be computed on the basis of a 360-day year of twelve 30-day months.

The Holder of this Note (the “Holder”) is entitled to the benefits of a Note Guarantee whereby Lions Gate Entertainment Corp., a British Columbia corporation and parent of the Issuer (the “Company”), has fully and unconditionally guaranteed, as primary obligor and not merely as surety, to the Holder, the payment of principal and interest on this Note on an unsecured senior subordinated basis.

2.                  Maturity.  This Note will mature on October 15, 2026; provided that if this Note remains held by the initial holder five Business Days after the date hereof, the Note shall instead mature on March 15, 2025 (“Maturity”).

3.                  Method of Payment.  The Issuer will pay interest on this Note (except defaulted interest) to the Person who is the Holder at the close of business on the record date set forth on the face of this Note next preceding the applicable interest payment date.  The Holder must surrender this Note to the Issuer or its designated agent to collect the principal, Optional Redemption Price, Special Repurchase Price or Designated Event Repurchase Price of this Note.  The Issuer will pay all amounts due with respect to this Note in money of the United States that at the time of payment is legal tender for payment of public and private debts.  The Issuer will make payments:  (i) by U.S. Dollar check drawn on a bank in The City of New York mailed to the address of the Holder; or (ii) upon application to the Issuer not later than the relevant record date by the Holder, by wire transfer in immediately available funds.

 

4.                  [RESERVED].

5.                  Indenture Notes.  At the request of the Holder, at any time starting ten Business Days after the date of this Note, the Issuer shall reasonably promptly exchange this Note for an Indenture Note with a principal amount equal to the principal amount of this Note outstanding at such time.  Terms used herein which are defined in Exhibit A hereto have the meanings assigned to them in Exhibit A.

 

 

6.                  Optional Redemption.  This Note shall be redeemable, in whole or from time to time in part, at the option of the Issuer, on any Trading Day (an “Optional Redemption Date”), at a redemption price equal to, (i) if the Optional Redemption Date occurs before October 15, 2010, 100.839%, (ii) if the Optional Redemption Date occurs on or after October 15, 2010 but before October 15, 2011, 100.420%, or (iii) if the Optional Redemption Date occurs on or after October 15, 2011, 100%, of the principal amount of this Note plus accrued and unpaid interest on the principal amount to be redeemed, to, but excluding, the Optional Redemption Date (the “Optional Redemption Price”).  Notice of any such redemption by the Issuer will be given at least 20, but not more than 60, days before any Optional Redemption Date to the Holder.  The Issuer shall pay or deposit funds with a paying agent in the amount of the Optional Redemption Price on or before the Trading Day immediately preceding the Optional Redemption Date.  If notice of such a redemption is provided and funds are paid or deposited as required on or before the Optional Redemption Date, interest on and after the Optional Redemption Date will cease to accrue on this Note or the portion of this Note called for such a redemption.  In the event that any Optional Redemption Date is not a Business Day, the Issuer will pay the Optional Redemption Price on the next Business Day without any additional interest or other payment due.  This Note may be redeemed in part but only in whole multiples of $1,000 principal amount.

7.                  Repurchase at Option of Holder on Specified Dates.  On October 15, 2013, October 15, 2016 and October 15, 2021 (each a “Specified Repurchase Date”), the Holder shall have the right, at the Holder’s option, to require the Issuer to purchase this Note for a repurchase price equal to 100% of the principal amount of this Note  plus accrued and unpaid interest to, but excluding, the Specified Repurchase Date (the “Specified Repurchase Price”), provided that such interest will be paid to the person who was the Holder at the close of business on the record date for the corresponding interest payment date; provided further that if this Note remains held by the initial holder five Business Days after the date hereof, the Special Repurchase Dates shall thenceforth not be the dates listed above but instead shall be October 15, 2011, October 15, 2014 and October 15, 2019.  Notice of each Specified Repurchase Date shall be given by the Issuer to the Holder not less than 20 Business Days prior to each Specified Repurchase Date.  If the Holder elects to require the Issuer to repurchase the this Note, the Holder shall notify the Issuer or its designated agent of such election on or before the close of business on the Special Repurchase Date and shall deliver  this Note to the Issuer or its designated agent.  In the event that the Holder submits this Note to be repurchased, the Issuer shall pay or deposit funds with a paying agent in the amount of the Special Repurchase Price on the Trading Day immediately following the Special Repurchase Date.  If the Holder submits the notice required for the Note to be repurchased and funds are paid or deposited as required, interest on and after the Special Repurchase Date will cease to accrue on this Notes or the portion of this Note submitted for repurchase.

8.                  Repurchase at Option of Holder upon a Designated Event.  If a Designated Event  shall occur at any time prior to Maturity, the Holder shall have the right, at the Holder’s option, to require the Issuer to purchase this Note for cash or any portion of the principal amount thereof that is equal to $1,000 or whole multiples thereof for a repurchase price equal to 100% of the principal amount of the Note purchased plus accrued and unpaid 
interest to, but excluding, the Designated Event Repurchase Date (the “Designated Event Repurchase Price”), provided that such interest will be paid to the person who was the Holder at the close of business on the record date for the corresponding interest payment date.  Notice of the occurrence and type of Designated Event (the “Designated Event Repurchase Notice”), including, without limitation, the date selected by the Issuer that is not less than 20 nor more than 30 Business Days after the date of the Designated Event Repurchase Notice (the “Designated Event Repurchase Date”), shall be given by the Issuer to the Holder  not more than 10 days after the Issuer has become aware of such an occurrence.  If the Holder elects to require the Issuer to repurchase this Note, the Holder shall notify the Issuer or its designated agent of such election on or before the close of business on the Designated Event Repurchase Date and shall deliver this Note to the Issuer or its designated agent.  The Issuer shall pay the Designated Event Repurchase Price in cash.  In the event that the Holder submits this Note to be repurchased, the Issuer shall pay or deposit funds with a paying agent in the amount of the Designated Event Repurchase Price on the Trading Day immediately following the Designated Event Repurchase Date.  If the Holder submits the required notice for this Note to be repurchased and funds are paid or deposited as required, interest on and after the Designated Event Repurchase Date will cease to accrue on this Notes or the portion of this Notes submitted for repurchase.

 

 

9.                  Conversion.  The Holder is entitled until the close of business on the Trading Day immediately preceding the Maturity Date, at its option, to convert this Note, including the principal amount thereof and any accrued and unpaid interest thereon, into Common Shares (or, at the option of the Issuer, into cash or a combination of cash and Common Shares) at the Conversion Rate in effect at the time of conversion, subject to the adjustments described below; provided that if, at any time, this Note ceases to be beneficially owned by the initial Holder or the Company, then the conversion right shall expire on the date that is five days after the date on which such Note ceases to be so beneficially owned.

The initial conversion rate is 161.2903 Common Shares per $1,000 principal amount of this Note (the “Conversion Rate”), or an effective initial conversion price of approximately $6.20 per share (the “Conversion Price”). On the fifth Business Day following the date that this Note is issued, if this Note is at that time still held by the initial holder thereof, the Conversion Rate shall be automatically adjusted to 86.9565 Common Shares per $1,000 principal amount of this Note, and the Conversion Rate shall be automatically adjusted to $11.50 per share.

Upon conversion, at the option of the Issuer, the Issuer may, in lieu of delivery of the Common Shares issuable upon conversion, deliver cash or a combination of cash and Common Shares in satisfaction of its obligations upon such conversion.

The Issuer will deliver cash in lieu of any fractional share.  If the Holder surrenders this Note for conversion after the record date for the payment of interest but prior to the corresponding interest payment date, this Note, when surrendered for conversion, must be accompanied by payment of an amount equal to the interest thereon which has accrued and will accrue and be paid on this Note on the corresponding interest payment date, unless (1) this Note has been called for redemption, (2) this Notes have been converted in connection with a Designated Event, or (3) if overdue interest, if any, exists at the time of conversion with respect to this Note.

 

 

To convert this Note, the Holder must (1) complete and sign the Conversion Notice on the back of this Note, (2) surrender this Note to the Issuer or its designated agent, (3) furnish appropriate endorsements and transfer documents if required by the Issuer or its designated agent, (4) pay funds equal to the interest payable on the next interest payment date to which the Holder is not entitled (as provided in the last sentence of the above paragraph) and (5) pay any transfer or similar tax if required (subject to the provisions of Section 14.8 of Exhibit A hereto).  The Holder may convert a portion of this Note if the portion is $1,000 principal amount or a positive integral multiple of $1,000 principal amount.

 

10.              Subordination.  This Note is subordinated in right of payment, in the manner and to the extent that an Indenture Note would be, to the prior payment in full of all Senior Debt.  The holder by accepting this Note agrees to such subordination.

11.               [RESERVED].

12.              [RESERVED].

13.              Merger or Consolidation.  The Issuer and the Company shall not consolidate with or merge with or into, or convey, transfer or lease all or substantially all of their assets, whether in a single transaction or series of related transactions to any person unless (i) the Issuer or Company is the resulting Successor Company or the Successor Company is a corporation organized and existing under the laws of the United States, any State thereof or the District of Columbia or under the laws of Canada or any province thereof and such Successor Company assumes by a written instrument, all of the Issuer’s and the Company’s obligations under this Note, including the conversion rights and, in the event that the Successor Company is a Public Entity and such Public Entity is required to assume the Company’s obligations under the Guarantee, such Public Entity shall assume the obligations of the Company under that certain Contribution Agreement or any successor agreement on similar terms as the Contribution Agreement; and (ii) immediately after giving effect to the transaction, no Default or Event of Default shall exist.

14.              [RESERVED].

15.              Defaults and Remedies.  An Event of Default includes the occurrence of any of the following:  default in payment of principal and premium, if any, at maturity, upon redemption or exercise of a repurchase right or otherwise; default for 30 days in payment of interest or other amounts due; failure by the Issuer or the Company for 60 days after notice to it to comply with any of its other agreements in this Note; certain payment defaults or the acceleration of other indebtedness of the Issuer or its subsidiaries; certain events of bankruptcy or insolvency involving the Issuer, the Company or any of the Company’s subsidiaries; and failure by the Issuer to provide timely notice of the occurrence of a Designated Event.  If any Event of Default occurs and is continuing, the Holder may declare all this Note to be due and payable immediately.

16.              [RESERVED].

 

 

17.              No Recourse Against Others.  No past, present or future director, officer, employee or shareholder, as such, of the Company shall have any liability for any obligations of the Issuer under this Note  or for any claim based on, in respect of or by reason of such obligations or their creation.  The holder by accepting this Note waives and releases all such liability.  The waiver and release are part of the consideration for the issue of this Note.

18.              [RESERVED].

19.              Abbreviations.  Customary abbreviations may be used in the name of a Holder or an assignee, such as:  TEN COM (= tenants in common), TEN ENT (= tenants by the entirety), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (Uniform Gifts to Minors Act).

 

 

CONVERSION NOTICE 

To convert this Note into Common Shares of the Company, check the box:  [ ]

To convert only part of this Note, state the principal amount to be converted (must be in multiples of $1,000):

$__________________

If you want the share certificate made out in another person’s name, fill in the form below:

	
 

	
                                                                                                                                                            

(Insert other person’s soc. sec. or tax I.D. no.)

	
 

	
                                                                                                                                                            

                                                                                                                                                            

                                                                                                                                                            

(Print or type other person’s name, address and zip code)

	
Date:                                         

	
Signature(s):                                                                                   

	
 

	
 

	
                                                                               

	
 

	
 

	
(Sign exactly as your name(s) appear(s) on the other side of this Note)ex10_80.htm - Generated by SEC Publisher for SEC Filing

 

 

Refinancing Exchange Agreement

 

July 20, 2010

 

Kornitzer Capital Management, Inc.

5420 W. 61st Place

Shawnee Mission, Kansas  66205

 

 

Re:  Exchange of Convertible Senior Subordinated Notes

 

Ladies and Gentlemen:

 

Reference is hereby made to the Indenture (the “Old “3.625% Indenture”), dated as of February 24, 2005, by and among Lions Gate Entertainment Inc., a Delaware corporation (the “Issuer”), Lions Gate Entertainment Corp., a British Columbia corporation (the “Company”), and J.P. Morgan Trust Company, National Association or its successor (the “Trustee”), relating to the Issuer’s 3.625% Convertible Senior Subordinated Notes due 2025 (CUSIP No. 535919 AG 9) (the “Old 3.625% Notes”), and the Indenture (the “Old 2.9375% Indenture” and together with the Old 3.625% Indentures, the “Old Indentures”), dated as of October 4, 2004, by and among the Issuer, Company, and Trustee, relating to the Issuer’s 2.9375% Convertible Senior Subordinated Notes due 2024 (CUSIP No. 535919 AF 1) (the “Old 2.9375% Notes” and, together with the Old 3.625% Notes, the “Old Notes”).  The Issuer and the parties listed on Schedule 1 (each, a “Holder” and collectively the “Holders”) hereby agree as follows (this Refinancing Exchange Agreement being referred to hereinafter as this “Agreement”):

1.                  Exchange of Old Notes.
 (a)                On the terms and subject to the conditions of this Agreement, each Holder hereby agrees to sell, transfer and deliver to the Issuer, and the Issuer hereby agrees to accept from each Holder, Old 3.625% Notes and/or Old 2.9375% Notes in the aggregate principal amount set forth opposite such Holder’s name with respect to each series on Schedule 1 hereto in exchange for notes (“New 3.625% Notes”) to be issued by the Issuer substantially in the form attached as Exhibit A hereto and notes (“New 2.9375% Notes” and, together with the New 3.625% Notes, the “New Notes”) to be issued by the Issuer substantially in the form attached as Exhibit B hereto, respectively, in each case in an aggregate principal amount equal to the aggregate principal amount of the applicable series of such Holder’s Old Notes.
 (b)               Each Holder shall deliver to the Issuer, on a date (with respect to each Holder, a “Settlement Date”) to be agreed upon between the Issuer and such Holders (but in no event later than the end of the business day on the date of this Agreement), all of such Holder’s Old Notes by book-entry transfer in accordance with the Old Indenture and the procedures of The Depository Trust Company (“DTC”); provided that, in the event book-entry transfer through DTC is unavailable, such Holder shall deliver its Old Notes 

 

                                                                                                                                                                                                                                                         

 

 

 to the Issuer duly endorsed in blank, or accompanied by bond powers duly endorsed in blank, in proper form for transfer as promptly as practicable.  For purposes of this Agreement, delivery by a Holder of such Holder’s Old Notes to the Issuer by book-entry transfer shall consist of the Trustee effecting a one-sided withdrawal of such Holder’s Old Notes via DTC’s DWAC system, and such Holder shall, on or prior to the Settlement Date with respect to such Holder, cause to be delivered to the Trustee a letter of instruction containing such information and bearing such signature guarantees as may be required by the Trustee in order for the Trustee to effect such one-sided withdrawal on such Settlement Date.  Upon confirmation that the Holders are prepared to transfer each Holder’s Old Notes to the Issuer by book-entry delivery in accordance with the Old Indentures and the procedures of DTC (or, in the event book-entry transfer through DTC is unavailable, upon delivery as promptly as practicable by such Holder of such Holder’s Old Notes to the Issuer duly endorsed in blank, or accompanied by bond powers duly endorsed in blank, in proper form for transfer), the Issuer shall immediately issue a certificate representing New Notes to such Holder in accordance with the terms and conditions set forth in the New Notes.
 2.                  Representations of Issuer. The Issuer represents and warrants to each of the Holders as follows:
 (a)                The Issuer has all requisite corporate power and authority to enter into this agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby.  This Agreement has been duly authorized, executed and delivered by the Issuer and constitutes the legal and binding agreement of the Issuer, enforceable against it in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting the enforcement of creditors’ rights generally or general principles of equity.
 (b)               The execution, delivery and performance by the Issuer of this Agreement, and the consummation of the transactions contemplated by this Agreement, do not as of the date hereof and will not as of the Settlement Date (i) violate the certificate of incorporation or bylaws of the Issuer, (ii) violate any material agreement to which the Issuer is a party or by which the Issuer or any of its property or assets is bound, or (iii) violate any law, rule, regulation, judgment, injunction, order or decree applicable to the Issuer.
 (c)                 (i) the issuance of the New Notes on the Settlement Date will be exempt from registration under the Securities Act of 1933 (the “Securities Act”) and (ii) the Issuer will have complied with Section 4(2) of and Regulation D under the Securities Act in connection with the transactions contemplated by this Agreement.
 3.                  Representations of Holder. Each Holder represents and warrants to the Issuer as follows:
 (a)                The Holder has all requisite corporate power and authority to enter into this agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby.  This Agreement has been duly authorized, executed and delivered 

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 by the Holder and constitutes the legal and binding agreement of the Holder, enforceable against it in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting the enforcement of creditors’ rights generally or general principles of equity.
 (b)               The execution, delivery and performance by the Holder of this Agreement, and the consummation of the transactions contemplated by this Agreement, do not as of the date hereof and will not as of the Settlement Date (i) violate the organizational documents of the Holder, (ii) violate any material agreement to which the Holder is a party or by which the Holder or any of its property or assets is bound, or (iii) violate any law, rule, regulation, judgment, injunction, order or decree applicable to the Holder.
 (c)                The Holder acknowledges that the New Notes have not been registered under the Securities Act or under any state securities laws and that the Holder is acquiring the New Notes pursuant to an exemption from registration under the Securities Act.  The Holder understands that they may not sell or otherwise dispose of any of the New Notes except in compliance with the registration requirements or exemption provisions of the Securities Act and any other applicable securities laws, and that they may therefore be required to hold such New Notes indefinitely.
 (d)               The Holder is an “accredited investor” as that term is defined by Rule 501 of the Securities Act, and has such knowledge and experience in financial and business matters and in investments of this type that they are capable of evaluating the merits and risks of their investment in the New Notes and of making an informed investment decision.  The Holder is able to bear the economic risk of an investment in the New Notes.
 4.                  Indemnification.  The Issuer shall indemnify and hold harmless each Holder (an “Indemnified Party”) from and against any and all losses, claims, damages, liabilities (or actions or proceedings in respect thereof, whether or not such Indemnified Party is a party thereto) and expenses (including reasonable costs of investigations and legal expenses) (each a “Loss” and collectively “Losses”), to which such Indemnified Party may become subject, to the extent that such Losses arise out of or are based upon a breach by the Issuer of any representation or covenant contained in this Agreement.  The indemnity provided in this Section 5 shall remain in full force and effect regardless of any investigation made by or on behalf of any Indemnified Party and shall survive the exchange of Old Notes pursuant to this Agreement or any sale or transfer by the Holder of New Notes or any securities of the Issuer or the Company into which such notes may be converted or exchanged.
 5.                  Fees and Expenses.  The Issuer shall pay the reasonable costs and expenses of outside counsel to the Holders in connection with the transactions consummated by this Agreement, subject to a cap of $50,000 in the aggregate on such fees and expenses.
 6.                  Governing Law; Waiver of Trial by Jury.  THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS TO BE EXECUTED AND PERFORMED ENTIRELY IN SUCH STATE.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED 

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 BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.
 7.                  Miscellaneous.  This Agreement constitutes the entire agreement between the Issuer and each of the Holders with respect to the subject matter hereof.  The Company is an intended third-party beneficiary of this Agreement.  Except as provided in the preceding sentence, this Agreement is not intended to confer upon any Person other than the parties hereto any rights or remedies hereunder.  Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by the Issuer or any Holder without the prior written consent of the other.  Any purported assignment without such consent shall be void.  This Agreement may only be amended by a writing signed by all the parties hereto.  Each party agrees that money damages would not be a sufficient remedy for any breach of this Agreement by any party and that each non-breaching party shall be entitled to specific performance, injunctive, rescissionary or other equitable relief as a remedy for any such breach.

[Signature page follows.]

 

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Signature Page

If the foregoing is in accordance with your understanding of our agreement, please sign and return to the Issuer a counterpart hereof, whereupon this Agreement, along with all counterparts, will become a binding agreement between the Issuer and each of the Holders in accordance with its terms.

Very truly yours,

LIONS GATE ENTERTAINMENT INC.

 

By:   /s/                                                

        Name:      

        Title:        

 

                                                                                                                                                                                                                                                         

 

 

Signature Page

Acknowledged and agreed:

KORNITZER CAPITAL MANAGEMENT, INC.

 

 

By:   /s/                                                            

        Name:    

        Title:      

 

 

                                                                                                                                                                                                                                                         

 

 

Schedule 1

 

	
 

	
 

	
 

	
 

	
Aggregate Principal Amount ($) of

	
Aggregate Principal Amount ($)

	

 

Name of Holder

	

Old 3.625% Notes and New 3.625% Notes

	

Old 2.9375% Notes and New 2.9375% Notes

	
 

	
 

	
 

	
Kornitzer Capital Management, Inc.

	
$36,009,000

	
$63,709,000

 

 

 

                                                                                                                                                                                                                                                         

 

 

Exhibit A

[See attached]

 

 

                                                                                                                                                                                                                                                         

 

 

Exhibit B

[See attached]

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