Business Context and Reporting Period
This Form 8-K was filed by Lions Gate Entertainment Corp. on March 17, 2006. The report discloses the entry into a material definitive agreement involving an indirect wholly-owned subsidiary, Lions Gate Films Inc.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, margin, debt, or liquidity metrics. The document focuses exclusively on executive compensation terms.
Material Changes
The material change reported is the execution of a new employment agreement with Marni Wieshofer, effective February 1, 2006. Key terms include:
- Role: Executive Vice President, Corporate Development.
- Term: Ends January 31, 2008.
- Base Salary: $325,000 for the first year; $350,000 for the second year.
- Bonus: Discretionary bonus at the sole discretion of the Chief Executive Officer.
- Severance: Upon termination without cause, the executive is entitled to either base salary through the end of the term or a lump sum equal to 50% of the remaining compensation balance.
Guidance, Outlook, and Risks
The filing contains no financial guidance, outlook, management commentary on operations, or discussion of risks and contingencies beyond the specific terms of the employment agreement.
Investor Verification Points
- Confirm the effective date of the employment agreement (February 1, 2006) versus the filing date.
- Verify the total potential compensation liability including the discretionary bonus component.
- Review the specific conditions defining "termination without cause" to assess severance exposure.