Document:

exv10w21

 

Exhibit 10.21

December 11, 2001

Mr. Jon Feltheimer

375 North Saltair Ave.

Los Angeles, CA

90049

Dear Jon:

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/ Jon Feltheimer

Jon Feltheimer

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 1.888.609.6120exv10w22

 

Exhibit 10.22

LIONS GATE ENTERTAINMENT CORP.

SHARE APPRECIATION RIGHTS AWARD AGREEMENT

     THIS
SHARE APPRECIATION RIGHTS AWARD AGREEMENT (this “Award
Agreement”) is made
by and between Lions Gate Entertainment Corp., (the “Corporation”), and Steve Beeks (the “Grantee”)
as of February 2, 2004 to evidence the award (the “Award”) by the Corporation to the Grantee of
the number of share appreciation rights (the “SARs”) set forth below.

	 	 	 	 	 	 	 
	Number of SARs:1

	 	 	1,000,000	 	 	Award Date: February 2, 2004
	 
	 	 	 	 	 	 
	Base Price per SAR:1

	 		$5.20	 	 	Expiration Date:
February 2, 2009

Vesting1,2

25% of the total number of SARs subject to the Award shall become vested on the
Award Date, and 25% of the total number of SARs subject to the Award shall become
vested on each of the first, second and third anniversaries of the Award Date.

     The Award is subject to the Terms and Conditions of Share Appreciation Rights (the
“Terms”) attached to this Award Agreement and incorporated herein by this reference. The
Award has been granted to the Grantee in addition to, and not in lieu of, any other form
of compensation, equity rights, incentive awards or employee benefits otherwise payable
or to be paid to the Grantee pursuant to the Employment Agreement. The parties agree to
the terms of the Award set forth herein, and the Grantee acknowledges receipt of a copy of the
Terms.

“GRANTEE”

/s/ Steven P. Beeks

Signature

Steven P. Beeks

Print Name

LIONS GATE ENTERTAINMENT CORP.

By: /s/ Wayne Levin

Its: GC 

CONSENT OF SPOUSE

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

	 	 	 
	/s/ Pamela H. Beeks

	 	2/11/04
	Signature of Spouse

	 	Date

 

	1	 	Subject to adjustment under Section 4.1 of the Terms.

 

 

TERMS AND CONDITIONS OF SHARE APPRECIATION RIGHTS

	1.	 	Vesting; Limits on Exercise.

     As set forth on the cover page of this Award Agreement, the SARs shall vest and
become exercisable in percentage installments of the aggregate number of SARs subject to the Award.
The SARs may be exercised only to the extent the SARs are then vested and exercisable.

	 	1.1	 	Cumulative Exercisability. To the extent that the SARs are vested and exercisable, the
Grantee has the right to exercise the SARs (to the extent not previously
exercised), and such right shall continue until the expiration or earlier termination
of the SARs.
	 
	 	1.2	 	Minimum Exercise. No fewer than 100 SARs
may be exercised at any one time, unless the number exercised is the total number of SARs
that are exercisable at the time they are exercised.

	2.	 	No Employment or Service Commitment.

     Except
as otherwise specifically provided in the Award Agreement, including paragraph 4.3.3,
below, the vesting schedule requires continued employment through each applicable vesting date as a
condition to the vesting of the SARs and the rights and benefits under this Award
Agreement. Except as otherwise specifically provided in the Award Agreement,
including paragraph 4.3.3, below, employment 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.

     Nothing contained in this Award Agreement constitutes an employment or service commitment by
the Corporation or Employer, affects the Grantee’s status as an employee who is subject to
termination without Cause, confers upon the Grantee any right to remain in the employ or service of
the Corporation or Employer, interferes in any way with the right of the Corporation or Employer at
any time to terminate such employment or service, or affects the right of the
Corporation or Employer to increase or decrease the Grantee’s other compensation; subject in each
case to any independent rights the Grantee may be entitled to under the Employment Agreement or any
other separate employment or service contract, employment-related agreement or arrangement other
than this Award Agreement.

	3.	 	Exercise and Payment of SARs.

	 	3.1	 	Method of Exercise. The SARs shall be exercisable by delivery to the
Corporation of an executed Exercise Agreement substantially in the form
attached hereto as Exhibit A or such other written reasonable form as from
time to time may be required by the Corporation (the
“Exercise Agreement”).
	 
	 	3.2	 	Payment of SARs.

	 	3.2.1	 	Amount. Upon the exercise of the SARs and the attendant
surrender of an exercisable portion of the Award, the Grantee will be entitled to
receive

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payment of
an amount (subject to the tax withholding provisions of
Section 3.3) determined by multiplying:

	 	(a)	 	the difference (but not less than zero) obtained by subtracting the Base Price
of the SARs being exercised from the per-share Fair Market Value (as
defined below) of the common shares of the Corporation (the “Common
Shares”) as of the date of exercise, by
	 
	 	(b)	 	the number of SARs being exercised.

	 	3.2.2	 	Form of Payment. Subject to Section 3.2.3,
payment of the amount
determined under Section 3.2.1 will be paid in cash or cash equivalent (i.e., certified,
cashier’s or Corporation check) as soon as administratively practicable after
the applicable exercise date of the SARs.
	 
	 	3.2.3	 	Corporation Right to Defer Payment and Pay in Installments. If the
amount due to the Grantee for the exercise of an SAR exceeds an amount determined by the
Board of Directors of the Corporation (the “Board”) to be necessary to maintain in the
business of the Corporation, the
Corporation may, in its discretion, elect to pay such amount due in up to
three annual installments. If the Corporation so elects, the first
installment shall be paid within 90 days of the date of such SAR exercise (the
“First Delivery Date”), the second installment shall be paid (with interest on the
unpaid principal amount accruing from the First Delivery Date) on the first
anniversary of the First Delivery Date, and the third installment shall be paid
(with interest on the unpaid principal amount accruing from the first anniversary
of the First Delivery Date) in the same manner on the second anniversary of the
First Delivery Date. Interest on unpaid principal amounts shall accrue at a
variable annual rate equal to the prime rate of the Corporation’s primary bank
lender (“Prime”) determined as of the beginning of each 12-month period (commencing
on a delivery date) included in the deferred payment period.
	 
	 	3.2.4	 	SARs Not Funded. SARs payable under this Award Agreement will be paid
from the general assets of the Corporation, and no special or separate
reserve, fund or deposit will be made to assure payment of the SARs. Neither this Award
Agreement nor any action taken pursuant to the provisions of this Award Agreement will
create, or be construed to create, a trust of any kind or a fiduciary relationship between
the Corporation and Grantee (or any other person). To the extent that Grantee
(or any permitted transferee) acquires a
right to receive payment pursuant to any SAR hereunder, such right will be no greater than
the right of any unsecured general creditor of the Corporation.
	 
	 	3.2.5	 	Definition of Fair Market Value. For purposes of this Award Agreement,
“Fair Market Value” means the weighted average price per share of the Common
Shares on the principal stock exchange upon which the Common Shares are listed or upon
which the Common Shares have been approved for listing (the “Stock Exchange”) for the five
days on which Common

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Shares were
traded immediately preceding the date in respect of which
Fair Market Value is to be determined. If the Common Shares are not listed
and posted for trading on a Stock Exchange on such date, the Fair Market
Value shall be such price per Common Share as the Board, acting in
good faith, may determine.

	 	3.3	 	Tax Withholding. Upon payment of any SAR, the Corporation may deduct
from any amount payable in cash the amount of any taxes which the Corporation
may be required to withhold with respect to such payment. In the event that the
Corporation is not permitted to satisfy such tax obligations in such manner, or should any
tax withholding obligation arise upon the grant or vesting of any SAR, the
Corporation may require the Grantee (or his personal representative or his beneficiary, in
the case of the Grantee’s disability or death, as the case may be) to pay or provide for
payment of the amount of any taxes which the Corporation may be required to withhold with
respect to such SAR event or payment.

	4.	 	Adjustments; Termination of Employment.

	 	4.1	 	Adjustments. Upon or in contemplation of any reclassification, recapitalization,
stock split (including a stock split in the form of a stock dividend) or
reverse stock split; any amalgamation, merger, combination, consolidation or other
reorganization; any split-up; spin-off, or similar extraordinary dividend distribution
(“spin-off”) in respect of the Common Shares (whether in the form of securities or
property); any exchange of Common Shares or other securities of the Corporation, or any
similar, unusual or extraordinary corporate transaction in respect of the Common Shares; or
a sale of substantially all the assets of the Corporation as an entirety (“asset sale”);
then the Corporation shall, in such manner, to such extent (if any) and at such time as it
deems appropriate and equitable in the circumstances:

	 	•	 	in any of such events, proportionately adjust (i) the number of SARs subject to any or all outstanding SARs or that thereafter may
be made subject to such SARs, or (ii) the Base Price and/or the methodology for
determining Fair Market Value with respect to any or all outstanding
SARS, or
	 
	 	•	 	in the case of a reclassification, recapitalization, amalgamation,
merger, consolidation, combination, or other reorganization, spin off or asset
sale, make provision for a cash payment or for the substitution or exchange of any
or all outstanding SARs.

	 	 	In any of such events, the Corporation may take such action prior to such event to
the extent that the Corporation deems the action necessary to permit the Grantee
to realize the benefits intended to be conveyed under the Award.
	 
	4.2	 	Change in Control.

	 	4.2.1	 	Possible Early Termination of Accelerated SARs. The
Corporation may deem the SARs to have been exercised (in which case, the
outstanding and otherwise unvested SARs shall be deemed to be fully vested and so

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exercised) upon or immediately prior to any of the following events: (a) a
dissolution of the Corporation, (b) an event described in
Section 4.1 that the Corporation does not survive, or (c) the consummation
of a Change in Control Event approved by the Board. In such event,
the SARs shall terminate and the Grantee’s right with respect to
this Award thereafter shall be only the right that the Grantee has to receive the
payment due to the Grantee (if any) pursuant to Section 3.2 with respect to such
deemed exercised and terminated SARs.

	 	4.2.2	 	Definition of Change in Control Event. “Change in Control
Event” means any of the following:

	 	(a)	 	The acquisition by any “Person” (an individual, entity or group
within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of 50% or more of either (1) the then-outstanding common shares of the Corporation (the
“Outstanding Common Shares”) or (2) the combined voting power of the
then-outstanding voting securities of the Corporation entitled to vote
generally in the election of directors (the
“Outstanding Voting Securities”).
	 
	 	(b)	 	Consummation of a reorganization, merger, statutory
share exchange or consolidation or similar corporate transaction involving the
Corporation or any of its subsidiaries, a sale or other disposition of
all or substantially all of the assets of the Corporation, or the
acquisition of assets or stock of another entity by the Corporation or any of its
subsidiaries (each, a “Business Combination”), in each
case, unless, following such Business Combination, all or substantially all of
the individuals and entities that were the beneficial owners of, the Outstanding
Common Shares of the Corporation, and the Outstanding Voting Securities of the
Corporation, immediately prior to such Business Combination beneficially own,
directly or indirectly, more than 50% of the then-outstanding shares
of common stock and the combined voting power of the
then-outstanding voting securities entitled to vote generally in the election of
directors, as the case may be, of the entity resulting from such Business
Combination (including, without limitation, an entity that, as a result of
such transaction owns the Corporation or all or substantially all of the
assets of the Corporation assets directly or through one or more subsidiaries).

	4.3	 	Effect of Termination of Employment on Outstanding SARs.

	 	4.3.1	 	Dismissal for Cause. Subject to earlier termination on the Expiration Date of
the Award or pursuant to Section 4.2, if the Grantee’s employment by Employer is
terminated by the Corporation or Employer for Cause (as

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defined in
the Employment Agreement), the Award and all SARs subject to the
Award will terminate on the date of the Employment Severance Date, whether or not then
vested andor exercisable.

	 	4.3.2	 	Termination for Any Reason other than Cause and other than
by the
Employer or Corporation without Cause.

     Subject
to earlier termination on the Expiration Date of
the Award or pursuant to Section 4.2, if the Grantee’s
employment by Employer or the Corporation terminates for any
reason (including for Good Reason (as such term is defined in the Employment
Agreement)) other than (i) by the Corporation or Employer for
Cause, or (ii) by the Corporation or the Employer without Cause, the
following shall govern:

	 	(a)	 	the Grantee will have until the date that is six months after
the Employment Severance Date to exercise any or all of the SARs to the
extent that such SARs are vested on the Employment Severance
Date;
	 
	 	(b)	 	the SARs, to the extent not vested on the Employment Severance
Date, shall terminate on the Employment Severance Date; and
	 
	 	(c)	 	the SARs, to the extent exercisable for the six month
period following the Employment Severance Date and not
exercised during such period, shall terminate at the close of business on
the last day of the six month period.

If the termination of the Grantee’s services to Employer is
a result of the Grantee’s death, the SARs may be
exercised only by the person or persons to whom the Grantee’s rights under
the Award pass by the Grantee’s will or applicable laws of
descent and distribution and only to the extent that the Grantee was
entitled to exercise such SARs at the date of his death.

	 	4.3.3	 	Termination for by the Employer or the Corporation without Cause.

Subject to earlier termination on the Expiration Date of the Award or
pursuant to Section 4.2, notwithstanding anything to the contrary, if the
Employer terminates Executive’s employment without Cause, then, to the
extent not vested, Executive’s SARs shall continue to vest in
accordance with the terms of this Award Agreement; specifically, 25% of
the total number of SARs shall become vested on the Award Date, and 25% of
the total number of SARs shall become vested on each of the
first, second, and third anniversaries of the Award Date.

	5.	 	Non-Transferability and Other Restrictions.

     The Award and any other rights of the Grantee under this Award Agreement are nontransferable
and exercisable only by the Grantee, except that such transfer and exercise restrictions shall
not apply to:

5

 

	 	•	 	transfers to the Corporation;
	 
	 	•	 	the designation of a beneficiary to receive benefits if the Grantee dies or, if
the Grantee has died, transfers to or exercises by the Grantee’s beneficiary, or, in the
absence of a validly designated beneficiary, transfers by will or the laws of descent and
distribution;
	 
	 	•	 	if the Grantee has suffered a disability, permitted transfers or exercises on
behalf of the Grantee by the Grantee’s duly authorized legal representative; or
	 
	 	•	 	transfers pursuant to a qualified domestic relations order.

	6.	 	Securities Law Compliance.

     The Grantee acknowledges that the Award and the SARs subject to the Award are not being
registered or qualified under applicable securities laws based, in part, in reliance upon an
exemption from registration and qualification under such laws. The Grantee by executing this Award
Agreement hereby makes the following representations to the Corporation and acknowledges that the
Corporation’s reliance on such securities law exemptions from registration and qualification is
predicated, in substantial part, upon the accuracy of these representations:

	 	•	 	The Grantee has an individual net worth, or joint net worth with his spouse,
of more than $1,000,000; or has had individual net income in
excess of $200,000 in each of the two most recent
years (or joint net income with his spouse in excess of $300,000 in each
of those years) and reasonably expects to reach that same income level in the
current year.
	 
	 	•	 	The Grantee is aware that the SARs may be of no practical
value, that any value they may have depends on their vesting and exercisability as well as
an increase in the Fair Market Value of the underlying Common Shares to an amount in
excess of the Base Price.

	7.	 	Legal Compliance.

     The granting, vesting, exercise and payment of SARs under this Award Agreement are
subject to compliance with all applicable laws, rules and regulations (including but not limited to
securities laws) and to such approvals by any listing, regulatory or governmental authority as may,
in the opinion of counsel for the Corporation, be necessary or advisable in connection therewith.

	8.	 	Notices.

     Any notice to be given under the terms of this Award Agreement or the Exercise 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

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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.

	9.	 	Entire Agreement.

     This Award Agreement, together with the form of Exercise Agreement
attached hereto and the Employment Agreement, 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. This Award Agreement and the Exercise Agreement
may be amended only by a written instrument signed by both the Grantee and the Corporation. The
Corporation may, however, unilaterally waive any provision hereof or of the Exercise Agreement
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.

	10.	 	No Privileges of Share Ownership.

     SARs are used solely as a device for determining the cash benefits (if any) to be
paid to the Grantee in accordance with the terms of this Award Agreement. The Grantee
shall not be entitled to any voting, dividend, or other shareholder rights, or financial
equivalents thereof, with respect to SARs. Unless otherwise provided by the
Board, no payment, nor any other adjustment, will be made with respect to any outstanding SAR.

	11.	 	Governing Law; Captions; Language; Corporate Powers; Other Benefits.

     This Award Agreement shall be governed by and construed and enforced in accordance with the
laws of the State of California without regard to conflict of law principles thereunder. Captions
and headings are given to the sections and subsections of this Award Agreement solely as a
convenience to facilitate reference. Such headings will not be deemed in any way material or
relevant to the construction or interpretation of this Award Agreement or any provision
hereof.

     The parties hereto have requested that this Award Agreement and the certificates, documents or
notices relating thereto be drafted in the English language.

     The existence of the Award and this Award Agreement shall not affect or restrict in any way
the right or power of the Board or the shareholders of the Corporation to make or
authorize any adjustment, recapitalization, reorganization or other change in the Corporation’s
capital structure or its business, any merger or consolidation of the Corporation, any issue of
bonds, debentures, preferred or prior preference stocks ahead of or affecting the Corporation’s
capital stock or the rights thereof, the dissolution or liquidation of the Corporation or any sale
or transfer of all or any part of its assets or business, or any other corporate act or
proceeding.

     Payments and other benefits received by the Grantee made pursuant to this Award Agreement
shall not be deemed a part of the Grantee’s regular, recurring compensation for
purposes of the termination, indemnity or severance pay law of any country or state and shall not
be included in, nor have any effect on, the determination of benefits under any other employee

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benefit plan or similar
arrangement provided by the Corporation, Employer or one of their
affiliates unless expressly so provided by such other plan or arrangements.

(Remainder of Page Intentionally Left Blank)

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EXHIBIT A

LIONS GATE ENTERTAINMENT CORP.

SHARE APPRECIATION RIGHTS EXERCISE AGREEMENT

     The
undersigned (the “Purchaser”) hereby irrevocably elects to exercise
his/her; right, evidenced by that certain Share Appreciation Rights
Award Agreement dated as
of
                                                            
(the “Award Agreement”), to exercise                                                              SARs (as such term
is defined in the Award Agreement) (subject to applicable
withholding taxes pursuant to Section 3.3 of the Award Agreement).

     The
Purchaser acknowledges that all of his rights are subject to, and the Purchaser
agrees to be bound by, all of the terms and conditions of the Award Agreement,
which is incorporated herein by this reference. If a conflict or inconsistency between the terms
and conditions of this Exercise Agreement and of the Award Agreement shall arise, the
terms and conditions of the Award Agreement shall govern. The Purchaser acknowledges
reading and understanding these documents and having an opportunity to ask any questions
that he may have had about them.

“PURCHASER”

                                                            

Signature

                                                            

Print Name

                                                            

Date

ACCEPTED BY:

LIONS GATE ENTERTAINMENT CORP.

By:                                                             

Its:                                                             

(To be completed by the Corporation after the
satisfaction of applicable withholding taxes has
been verified.)

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