Exhibit 10.7

 

Image Entertainment, Inc.

20525 Nordhoff Street, Suite 200,

Chatsworth, California 91311

 

April 12, 2010

 

Ted Green

John Hyde

John Avagliano

 

Re:          Equity Incentive Allocation

 

Gentlemen:

 

The Company agrees for the benefit of each of you that in the event that, out of
the 14.4% of the fully diluted equity of the Company as of January 8, 2010
(i.e., the “management pool” of equity), equity awards are granted to employees
or consultants of the Company other than John Hyde (or Producers Sales
Organization), Ted Green or Executive (e.g., Messrs. Gagnon and Bromiley), and
such consultants or employees forfeit any such equity awards, the Company shall
award all of such forfeited shares (i) to any new employees or consultants
taking over the duties of the consultants or employees who forfeited such
awards, and (ii) to John Hyde (or Producers Sales Organization), Ted Green
and/or Executive, in each case at such times and in such amounts as the Chief
Executive Officer shall recommend to the Compensation Committee of the Board of
Directors.

 

Very truly yours,

 

IMAGE ENTERTAINMENT, INC.

 

By:

/s/ THEODORE GREEN

 

Name:

Theodore Green

 

Its:

Chairman/CEO

 

 

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