Business Context and Reporting Period
This Form 8-K Current Report was filed by Lions Gate Entertainment Corp. on October 14, 2008, covering events occurring on October 8, 2008. The filing details a material definitive agreement regarding the amendment of the employment contract for Jon Feltheimer, the Company's Co-Chairman and Chief Executive Officer.
Key Financial Metrics
The filing does not provide financial statements, revenue, profit, cash flow, margins, debt, or liquidity metrics. The document focuses exclusively on executive compensation arrangements.
Material Changes
The primary material change is the amendment of Mr. Feltheimer's employment agreement, effective October 8, 2008. Key changes include:
- Term Extension: Employment term extended by three years, ending March 31, 2014.
- Base Salary: Remains at $1,200,000 annually. Starting October 8, 2011, salary will adjust based on the Consumer Price Index (CPI) for Urban Wage Earners in the Los Angeles-Riverside-Orange County area.
- Equity Grants:
- 458,036 time-vesting restricted share units (vesting in three equal annual installments starting March 31, 2012).
- 458,035 performance-vesting restricted share units (vesting subject to annual performance targets).
- Quarterly Grants: Eligible for quarterly grants of common shares valued at $250,000, subject to regulatory approval, commencing three months after the agreement date.
Guidance, Outlook, and Risks
The filing contains no financial guidance, outlook, or management commentary regarding business operations. Risks and contingencies are limited to the compensation structure:
- Forfeiture Risk: Future Quarterly Grants will be forfeited if employment is terminated for cause, death, or disability.
- Approval Contingency: Quarterly Grants are subject to regulatory approval; if not obtained, alternative commensurate compensation will be provided.
Investor Verification Checklist
- Verify the total number of restricted share units granted (916,071 total) and their specific vesting schedules.
- Confirm the mechanism for CPI-based salary adjustments beginning in 2011.
- Review the attached Exhibit 10.54 for the complete legal text of the Amendment of Employment Agreement.
- Monitor future filings for the issuance of Quarterly Grants and any required shareholder or regulatory approvals.