IMAX Corporation Summary of Directors' Compensation Agreement (August 11, 2005)

Summary

This agreement outlines the annual compensation for directors of IMAX Corporation. Eligible directors receive a yearly fee, per-meeting payments, and stock options, with the option to choose between cash or stock options for their annual fee. Additional compensation is provided for the Chair of the Audit Committee. Directors are also reimbursed for expenses related to board or committee meetings. The compensation terms remain effective until changed by the company.

EX-10.20 2 t18470exv10w20.txt EX-10.20 IMAX CORPORATION Exhibit 10.20 SUMMARY OF DIRECTORS' COMPENSATION 1. In respect of each year during which an Eligible Director serves as a Director of the Corporation, he shall receive: a. $20,000 (Cdn.) per year payable quarterly in arrears provided that an Eligible Director may elect, at the commencement of each year of office, or as soon as practicable thereafter, to receive such number of options to purchase an equivalent number of Common Shares of the Corporation under the terms of the IMAX Stock Option Plan (the "Plan"). The options will be granted annually and will vest in equal amounts quarterly, in arrears; b. $1,500 (Cdn.) for every Board meeting attended in which an Eligible Director participates whether in person or by telephone; c. $1,200 (Cdn.) for any Committee of the Board meetings in which the Eligible Director participates, whether in person or by telephone; d. at the commencement of each year of office or upon joining the Board, or as soon as practicable thereafter, a grant of options to purchase 8,000 Common Shares of the Corporation under the terms of the IMAX Stock Option Plan at an exercise price equal to the Fair Market Value of the shares, as defined in the Plan; and e. reimbursement of any expenses incurred by the Eligible Director in connection with participation in Board or Committee meetings. 2. The Chair of the Audit Committee shall receive $8,000 (Cdn.) per year payable quarterly, in arrears. 3. The annual compensation for Directors, as set out above, shall remain in effect until it is amended or revoked by further resolution. August 11, 2005