Amendment to Stock Option Agreement between Lions Gate Entertainment Corp. and Michael Burns
Lions Gate Entertainment Corp. and Michael Burns have agreed to amend a previous stock option agreement. The amendment replaces 375,000 stock options with phantom options, which provide cash compensation based on the company's stock price performance above $5.00 per share. The vesting schedule and other terms remain largely unchanged, and payment will be made within 30 days of exercise, minus required deductions. This agreement ensures Michael Burns receives cash benefits instead of shares, under similar conditions as the original agreement.
Exhibit 10.20
December 11, 2001
Mr. Michael Burns
8365 Sunset View Drive
Los Angeles, CA
90069
Dear Michael:
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 ###-###-####.
Sincerely,
/s/ Gordon Keep
Gordon Keep
Senior Vice President
Agreed and acknowledged
/s/ Michael Burns
Michael Burns
Suite 3123, Three Bentall Centre, 595 Burrard Street
P.O. Box 49139, Vancouver, BC Canada V7X 1J1
Tel: 604 ###-###-#### Fax: 604 ###-###-#### ###-###-####
