Document:

exv10w23

 

Exhibit 10.23

November 18, 2004

Mr. Steve Beeks

224 18th Street

Santa Monica, CA 90402

     Re:     Clarification of Stock Appreciation Rights Award 

Dear Steve:

     On
February 2, 2004, Lions Gate Entertainment Corp. (“Lions Gate”)
granted to you an award of share appreciation rights (your “Award”). Your Award is
evidenced by Share Appreciation Rights Award Agreement dated as of February 2, 2004 (the “Award Agreement”).

     As
we have discussed, there is a potential ambiguity in the definition of
“Fair Market Value” as set forth in the Award Agreement. This letter agreement confirms our
mutual interpretation of the definition of “Fair Market Value” as set forth in the Award
Agreement as follows:

For as long as Lions Gate’s common shares are actively traded on the New York Stock
Exchange. the “Fair Market Value” of such a common share as of any date shall mean the
average of the closing prices for a common share of the Company for the five trading
dates immediately preceding the date in question as such closing prices are reported on the
composite tape for securities listed on the New York Stock Exchange. The closing prices used for
purposes of such determination shall be subject to adjustment
pursuant to Section 4 of your Award Agreement (for example, in
connection with stock splits, reverse stock
splits, and stock dividends) in order to preserve the intended level of
benefits. In the event that Lions Gate’s common shares are no longer actively traded on the
New York Stock Exchange, but otherwise continue to be actively traded on a national securities
exchange or in the Nasdaq National Market. The determination of Fair Market Value
for this purpose shall be made with respect to the closing or last sales price,
as applicable, of a Lions Gate common share on the principal exchange on
which such common shares are listed or admitted to trade.

     If the foregoing accurately reflects our conversations, and if you agree to and accept the
foregoing interpretation of your Award Agreement, please so indicate by
signing this letter agreement in the space provided below and returning a signed copy to
us.

Sincerely,

/s/ Jim Keegan

Jim Keegan, CFO

ACCEPTED AND AGREED:

Signature: /s/ Steve Beeks

               Steve Beeks

TORONTO – LOS ANGELES – MONTREAL – VANCOUVER

2700 Colorado Ave., Santa Monica, CA 90404-3521

Phone 310.449.9200exv10w24

 

Exhibit 10.24

EXECUTION VERSION

AMENDMENT
NO. 6 dated as of June 21, 2005 to the Amended
and Restated Credit, Security, Guaranty and Pledge Agreement
dated as of December 15, 2003 among Lions Gate Entertainment
Corp. and Lions Gate Entertainment Inc. (together, the
“Borrowers”), the Guarantors named therein, the Lenders referred
to therein, JPMorgan Chase Bank, National Association (formerly
known as JPMorgan Chase Bank), as Administrative Agent and as
Issuing Bank for the Lenders (the “Agent”), JPMorgan Chase Bank,
National Association Toronto Branch (formerly known as JPMorgan
Chase Bank, Toronto Branch) as Canadian Agent, Fleet National
Bank , as Co-Syndication Agent and BNP Paribas, as Co-Syndication
Agent (as the same may be amended, supplemented or otherwise
modified, the “Credit Agreement”).

INTRODUCTORY STATEMENT

     The Lenders have made available to the Borrowers a credit facility pursuant to the terms of
the Credit Agreement.

     The Lenders and the Agent have agreed to amend the Credit Agreement, all on the terms and
subject to the conditions herein set forth.

     Therefore, the parties hereto hereby agree as follows:

     Section 1. Defined Terms. Capitalized terms used herein and not otherwise defined
herein shall have the meaning given them in the Credit Agreement.

     Section 2. Amendments to the Credit Agreement. Subject to the satisfaction of the
conditions precedent set forth in Section 3 hereof, the Credit Agreement is hereby amended as of
the Effective Date (as hereinafter defined) as follows:

     (A) The definition of “Cash Equivalents” appearing in Article 1 of the Credit Agreement is
hereby amended by (a) deleting the “or” preceding subsection (v) thereof and inserting “,” in the
place thereof and (b) deleting the “.” following “above” in the last sentence thereof and adding
subsection (vi) as follows:

 

 

“or (vi) money market preferred stock, auction rate preferred stock, auction market
preferred stock, auction rate securities or similar instrument with a rating of AAA
or the equivalent thereof by Standard & Poor’s Corporation or Moody’s Investors
Service, Inc”

     (B) Section 6.5 of the Credit Agreement is hereby amended by deleting the “US$1,600,000”
appearing in subsection (xi) there of and replacing it with “US$2,000,000”.

     (C) Section 6.15 of the Credit Agreement is hereby amended by replacing the “US$60,000,000” in
subsection (x) thereof with “US$65,000,000”.

     (D) Schedule 1.2 of the Credit Agreement is hereby amended by (a) deleting the “125,000,000”
opposite “Twentieth Century Fox (includes F/X, Fox, Fox Latin America and Fox Family” on the list
of Acceptable Major Account Debtors and replacing it with “150,000,000”; (b) deleting the
“40,000,000” opposite “Viacom (Showtime, Paramount CBS, Comedy Partners, TNN, Blockbuster, UPN,
MTV/VH1)” on the list of Acceptable Major Account Debtors and replacing it with “70,000,000”; (c)
deleting the “1,500,000” opposite “HDNet Movies LLC” on the list of Acceptable Domestic Account
Debtors and replacing it with “4,000,000”; (d) deleting the “1,500,000” opposite “Movie Gallery” on
the list of Acceptable Domestic Account Debtors and replacing it with “3,000,000”; (e) deleting the
“250,000” opposite “Metro Tartan” on the list of Acceptable Foreign Account Debtors and replacing
it with “500,000”; and (f) adding the following Acceptable Account Debtors listed below in the
appropriate section of Schedule 1.2 noted to the left thereof and with monetary limit noted to the
right thereof :

	 	 	 	 	 
	Section:	 	Acceptable Obligors:	 	Limit:
	Acceptable Domestic Account Debtor

	 	Corus/Superchannel
	 	1,500,000

     Section 3. Conditions to Effectiveness. The effectiveness of this Amendment is subject
to the satisfaction of all of the following conditions precedent (the date on which all such
conditions have been satisfied being herein called the “Effective Date”):

     (A) the receipt by the Agent of counterparts of this Amendment which, when taken together,
bear the signatures of the Borrowers, each Guarantor, the Agent and the Required Lenders;

     (B) the payment of all fees and expenses (including, without limitation, fees and
disbursements of counsel and consultants retained by the Agent) due and payable by any Credit Party
to the Agent and/or the Lenders; and

     (C) all legal matters incident to this Amendment shall be satisfactory to Morgan, Lewis &
Bockius LLP, counsel for the Agent.

     Section 4. Representations and Warranties. Each Credit Party represents and warrants
that:

2

 

     (A) after giving effect to this Amendment, the representations and warranties contained in the
Credit Agreement are true and correct in all material respects on and as of the date hereof as if
such representations and warranties had been made on and as of the date hereof (except to the
extent that any such representations and warranties specifically relate to an earlier date);

     (B) after giving effect to this Amendment, no Event of Default or Default will have occurred
and be continuing on and as of the date hereof.

     Section 5. Further Assurances. At any time and from time to time, upon the Agent’s
request and at the sole expense of the Credit Parties, each Credit Party will promptly and duly
execute and deliver any and all further instruments and documents and take such further action as
the Agent reasonably deems necessary to effect the purposes of this Amendment.

     Section 6. Fundamental Documents. This Amendment is designated a Fundamental Document
by the Agent.

     Section 7. Full Force and Effect. Except as expressly amended hereby, the Credit
Agreement and the other Fundamental Documents shall continue in full force and effect in accordance
with the provisions thereof on the date hereof. As used in the Credit Agreement, the terms
“Agreement”, “this Agreement”, “herein”, “hereafter”, “hereto”, “hereof”, and words of similar
import, shall, unless the context otherwise requires, mean the Credit Agreement as amended by this
Amendment.

     Section 8. APPLICABLE LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

     Section 9. Counterparts. This Amendment may be executed in two or more counterparts,
each of which shall constitute an original, but all of which when taken together shall constitute
but one instrument.

     Section 10. Expenses. The Borrowers agree to pay all out-of-pocket expenses incurred
by the Agent in connection with the preparation, execution and delivery of this Amendment,
including, but not limited to, the reasonable fees and disbursements of counsel for the Agent.

     Section 11. Headings. The headings of this Amendment are for the purposes of reference
only and shall not affect the construction of or be taken into consideration in interpreting this
Amendment.

3

 

     IN WITNESS WHEREOF, the parties hereby have caused this Amendment to be duly executed as of
the date first written above:

	 	 	 	 	 
	 	 	BORROWERS:
	 
	 	 	 	 
	 	 	LIONS GATE ENTERTAINMENT CORP.
	 

	 	By	 	/s/ JAMES KEEGAN 
	 

	 	 	 	 
	 	 	Name:    James Keegan
	 	 	Title:
	 
	 	 	 	 
	 	 	LIONS GATE ENTERTAINMENT INC.
	 

	 	By	 	/s/ JAMES KEEGAN 
	 

	 	 	 	 
	 

	 	 	 	Name:    James Keegan
	 

	 	 	 	Title:

	 	 	 
	 

	 	GUARANTORS:
	 
	 	 
	 

	 	AM PSYCHO PRODUCTIONS, INC.
	 

	 	ATTRACTION PRODUCTIONS LLC
	 

	 	BLUE PRODUCTIONS INC.
	 

	 	CINEPIX ANIMATION INC./ANIMATION CINEPIX INC.
	 

	 	CINEPIX FILMS INC./FILMS CINEPIX INC.
	 

	 	CONFIDENCE PRODUCTIONS, INC.
	 

	 	CUT PRODUCTIONS INC.
	 

	 	DEAD ZONE PRODUCTION CORP.
	 

	 	DEVILS REJECTS, INC.
	 

	 	FINAL CUT PRODUCTIONS CORP.
	 

	 	FIVE DAYS PRODUCTIONS CORP.
	 

	 	FRAILTY PRODUCTIONS, INC.
	 

	 	GC FILMS, INC.
	 

	 	HIGH CONCEPT PRODUCTIONS INC.

HYPERCUBE PRODUCTIONS CORP.
	 

	 	KING OF THE WORLD PRODUCTIONS LLC
	 

	 	LG PICTURES INC.
	 

	 	LIONS GATE FILMS CORP.

LIONS GATE FILMS DEVELOPMENT CORP.
	 

	 	LIONS GATE FILMS INC.
	 

	 	LIONS GATE FILMS PRODUCTIONS CORP./PRODUCTIONS FILMS
LIONS GATE S.A.R.F.
	 

	 	LIONS GATE MUSIC CORP.
	 

	 	LIONS GATE RECORDS, INC.
	 

	 	LIONS GATE STUDIO MANAGEMENT LTD.

4

 

	 	 	 
	 

	 	LIONS GATE TELEVISION DEVELOPMENT LLC
	 

	 	LIONS GATE TELEVISION INC.
	 

	 	LUCKY 7 PRODUCTIONS CORP.
	 

	 	MOTHER PRODUCTIONS CORP.
	 

	 	NGC FILMS, INC.
	 

	 	PLANETARY PRODUCTIONS, LLC
	 

	 	PROFILER PRODUCTIONS CORP.
	 

	 	PSYCHO PRODUCTIONS SERVICES CORP.
	 

	 	TERRESTRIAL PRODUCTIONS CORP.
	 

	 	WEEDS PRODUCTIONS INC.
	 

	 	WILDFIRE PRODUCTIONS INC.
	 

	 	WRITERS ON THE WAVE
	 

	 	3F SERVICES, INC.
	 

	 	ARIMA INC.
	 

	 	ARTISAN ENTERTAINMENT INC.
	 

	 	ARTISAN FILMED PRODUCTIONS, INC.
	 

	 	ARTISAN HOME ENTERTAINMENT INC.
	 

	 	ARTISAN MUSIC INC.
	 

	 	ARTISAN PICTURES INC.
	 

	 	ARTISAN RELEASING INC.
	 

	 	ARTISAN TELEVISION INC.
	 

	 	BD OPTICAL MEDIA, INC.
	 

	 	BL DISTRIBUTION CORP.
	 

	 	CAVE PRODUCTIONS, INC.
	 

	 	FHCL, LLC
	 

	 	FILM HOLDINGS CO.
	 

	 	FUSION PRODUCTIONS, INC.
	 

	 	LANDSCAPE ENTERTAINMENT CORP.
	 

	 	POST PRODUCTION, INC.
	 

	 	PUNISHER PRODUCTIONS, INC.
	 

	 	SCREENING ROOM, INC.
	 

	 	SILENT DEVELOPMENT CORP.
	 

	 	VESTRON INC.

	 	 	 	 	 
	 

	 	By:	 	/s/ JAMES KEEGAN 
	 

	 	 	 	 
	 

	 	 	 	Name:    James Keegan
	 

	 	 	 	Title:

5

 

	 	 	 	 	 
	 	 	BLAIR WITCH FILM PARTNERS LTD.
	 

	 	By:
	 	Artisan Filmed Productions Inc.
	 

	 	Its:
	 	General Partner
	 
	 	 	 	 
	 

	 	By:	 	/s/ JAMES KEEGAN 
	 

	 	 	 	 
	 

	 	 	 	Name:    James Keegan
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	LENDERS:
	 
	 	 	 	 
	 	 	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, (formerly known as JPMorgan Chase Bank), individually and as Administrative Agent

	 	 	 	 	 	 	 
	 

	 	By	 	 	 	/s/ GARRETT J. VERDONE 
	 	 	 	 	 
	 	 	Name:	 	Garrett
J. Verdone 
	 	 	Title:	 	Senior
Vice President 
	 	 	Address:	 	277 Park Avenue
	 

	 	 	 	 	 	16th Floor,
	 

	 	 	 	 	 	New York, NY 10172
	 	 	Attention:	 	Garrett Verdone
	 	 	Facsimile:	 	(212) 899-2893

6

 

	 	 	 	 	 
	 	 	BANK LEUMI USA
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 

	 	 	 	Address:
	 

	 	 	 	Attention:
	 

	 	 	 	Facsimile:
	 
	 	 	 	 
	 	 	BNP PARIBAS
	 
	 	 	 	 
	 

	 	By	 	/s/ FREDERIQUE MERHAUT 
	 

	 	 	 	 
	 

	 	 	 	Name:   Frederique
Merhaut
	 

	 	 	 	Title:     Director
	 

	 	 	 	Address:
	 

	 	 	 	Attention:
	 

	 	 	 	Facsimile:
	 
	 	 	 	 
	 

	 	By	 	/s/ C. BETTLES 
	 

	 	 	 	 
	 

	 	 	 	Name:   C.
Bettles
	 

	 	 	 	Title:     Managing
Director
	 

	 	 	 	Address:
	 

	 	 	 	Attention:
	 

	 	 	 	Facsimile:
	 
	 	 	 	 
	 	 	CITY NATIONAL BANK
	 
	 	 	 	 
	 

	 	By	 	/s/ NORMAN B. STARR 
	 

	 	 	 	 
	 

	 	 	 	Name:   Norman
B. Starr
	 

	 	 	 	Title:     Senior
Vice President
	 

	 	 	 	Address:
	 

	 	 	 	Attention:
	 

	 	 	 	Facsimile:

7

 

	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.,
as successor by merger to Fleet National Bank
	 
	 	 	 	 
	 

	 	By	 	/s/ THOMAS J. KANE 
	 

	 	 	 	 
	 

	 	 	 	Name: Thomas J. Kane
	 

	 	 	 	Title: Senior Vice President
	 

	 	 	 	Address: 335 Madison Ave., New York, NY 10017
	 

	 	 	 	Attention:
	 

	 	 	 	Facsimile: 212-503-7173
	 
	 	 	 	 
	 	 	ISRAEL DISCOUNT BANK OF NEW YORK
	 
	 	 	 	 
	 

	 	By	 	/s/ HOWARD WEINBERG 
	 

	 	 	 	 
	 

	 	 	 	Name: Howard Weinberg
	 

	 	 	 	Title: Senior Vice President I
	 

	 	 	 	Address: 511 Fifth Avenue, New York, NY 10017
	 

	 	 	 	Attention: Howard Weinberg
	 

	 	 	 	Facsimile: 212-551-8259
	 
	 	 	 	 
	 

	 	By	 	/s/ DAVID ACOSTA 
	 

	 	 	 	 
	 

	 	 	 	Name: David Acosta
	 

	 	 	 	Title: Vice President
	 

	 	 	 	Address: 511 Fifth Avenue, New York, NY 10017
	 

	 	 	 	Attention: David Acosta
	 

	 	 	 	Facsimile: 212-551-8259
	 
	 	 	 	 
	 	 	MANUFACTURERS BANK
	 
	 	 	 	 
	 

	 	By	 	/s/ MAUREEN KELLY 
	 

	 	 	 	 
	 

	 	 	 	Name: Maureen Kelly
	 

	 	 	 	Title: Vice President
	 

	 	 	 	Address: 515 South Figueroa St., CA 90071
	 

	 	 	 	Attention:
	 

	 	 	 	Facsimile: 213-489-6028

8

 

	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION
	 
	 	 	 	 
	 

	 	By	 	/s/ JOAN F. STIGLIANO 
	 

	 	 	 	 
	 

	 	 	 	Name: Joan F. Stigliano
	 

	 	 	 	Title: Senior Vice President
	 

	 	 	 	Address:
	 

	 	 	 	Attention:
	 

	 	 	 	Facsimile:
	 
	 	 	 	 
	 	 	SOCIETE GENERALE
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 

	 	 	 	Address:
	 

	 	 	 	Attention:
	 

	 	 	 	Facsimile:
	 
	 	 	 	 
	 	 	THE LEWIS HORWITZ ORGANIZATION, a division of Imperial Capital Bank
	 
	 	 	 	 
	 

	 	By	 	/s/ DAVID HUTKIN 
	 

	 	 	 	 
	 

	 	 	 	Name: David Hutkin
	 

	 	 	 	Title: Vice President
	 

	 	 	 	Address:
	 

	 	 	 	Attention:
	 

	 	 	 	Facsimile:
	 
	 	 	 	 
	 	 	UNION BANK OF CALIFORNIA, N.A.
	 
	 	 	 	 
	 

	 	By	 	/s/ KIN CHENG 
	 

	 	 	 	 
	 

	 	 	 	Name: Kin Cheng
	 

	 	 	 	Title: AVP
	 

	 	 	 	Address: 445 S. Figueroa St., 16th Floor, Los Angeles, CA 90071
	 

	 	 	 	Attention: Danny Mandel
	 

	 	 	 	Facsimile: 213-236-5852

9

 

	 	 	 	 	 
	 	 	WESTLB AG (formerly Westdeutsche Landesbank Girozentrale), NEW YORK BRANCH
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 

	 	 	 	Address:
	 

	 	 	 	Attention:
	 

	 	 	 	Facsimile:
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 

	 	 	 	Address:
	 

	 	 	 	Attention:
	 

	 	 	 	Facsimile:
	 
	 	 	 	 
	 	 	THE ROYAL BANK OF SCOTLAND PLC
	 
	 	 	 	 
	 

	 	By	 	/s/ ALEXANDER STEWART BROWN 
	 

	 	 	 	 
	 

	 	 	 	Name: Alexander Stewart Brown
	 

	 	 	 	Title: Attorney for the Royal Bank of Scotland PLC
	 

	 	 	 	Address:
	 

	 	 	 	Attention: Jacqueline Baer
	 

	 	 	 	Facsimile: + 44 20 7085 3931
	 
	 	 	 	 
	 	 	GRAYSON & CO.
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 

	 	 	 	Address:
	 

	 	 	 	Attention:
	 

	 	 	 	Facsimile:

10

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