3. No Further Right to Payment; Return of Property: Employee understands and agreesthat after March 31, 2008, Employee shall neither earn nor accrue any (i) additional wages,bonuses or commissions, or (ii) right to payments, perquisites and/or benefits of any kind fromCompany, except as otherwise expressly set forth in this Agreement. Employee agrees to return toCompany by April 30, 2008, any and all notes, property, files, information or materials of anykind belonging to Company which Employee may have in Employee’s possession or control outside theCompany offices.4. Release: Except for obligations arising from this Agreement, Employee herebyreleases and discharges forever Company and its current and former officers, directors, parents,subsidiaries, partners, employees, affiliates, agents, and attorneys (“Released Parties”) of andagainst all liabilities, claims, causes of action, charges, complaints, obligations, costs,losses, damages, injuries, attorneys’ fees, and other legal responsibilities (collectivelyreferred to as “claims”), of any form whatsoever, relating to, or arising out of Employee’semployment relationship with Company and/or any of the Released Parties and/or the termination ofsaid employment, including but not limited to any claims in law, equity, contract or tort, or anyclaims under the California Labor Code, California Business and Professions Code, California FairEmployment and Housing Act, Title VII of the Civil Rights Act of 1964, as amended, Americans WithDisability Act, Employee Retirement Income Security Act (except with respect to vested benefitsthat are not affected by this Agreement), the Age Discrimination in Employment Act, or any otherclaim under any local ordinance or federal or state statute, or any claims for wages, stock,commissions, overtime, sick pay, vacation pay, paid leave benefits, severance pay, bonuses,penalties, interest or any other compensation, employment perquisites or benefits, whether knownor unknown, unforeseen, unanticipated, unsuspected or latent, which Employee or his/her successorsin interest now own or hold, or have at any time heretofore owned or held, or may at any time ownor hold by reason of any matter or thing arising from any cause whatsoever prior to the date ofexecution of this instrument, and without limiting the generality of the foregoing, from allclaims, demands and causes of action based upon, relating to, or arising out of Employee’semployment relationship with Company and/or any of the Released Parties and/or the termination ofsaid employment. This Release does not extend to those rights which as a matter of law cannot bewaived, including but not limited to unwaivable rights the Employee may have under the CaliforniaLabor Code.5. ADEA Release: Without limiting the scope of this Agreement in any way, Employeecertifies that this Agreement constitutes a knowing and voluntary waiver of any and all rights orclaims that exist or that Employee has or may claim to have under the Age Discrimination inEmployment Act (“ADEA”), as amended by the Older Workers’ Benefit Protection Act of 1990 (29U.S.C. § 9621, et seq.). This release does not govern any rights or claims that might arise underthe ADEA after the date this Agreement is signed by Employee. Employee acknowledges that: (a) theconsideration provided pursuant to this Agreement is in addition to any consideration that hewould otherwise be entitled to receive; (b) he has been and is hereby advised in writing toconsult with an attorney prior to signing this Agreement; (c) he has been provided a full andample opportunity to study this Agreement, including a period of at least twenty-one (21) days toconsider this Agreement prior to execution; (d) he has had sufficient time to consider thisAgreement with counsel and that he expressly, voluntarily andknowingly waives the twenty-one day notice period prior to signing this Agreement; and (e) he isaware of his right to revoke this Agreement at any time within the seven (7) day period followingthe date he signs the Agreement and that the Agreement shall not become effective or enforceableuntil the seven (7) day revocation period expires. Employee further understands that he shallrelinquish any right he has to the consideration specified in this Agreement if he exercises hisright to revoke it.
 
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6. Civil Codes Section 1542 Waiver: It is further understood and agreed that allrights under Section 1542 of the California Civil Code are hereby expressly waived by Employee.Said Section reads as follows:“Section 1542. [Certain claims not affected by general release.] A general release does not extendto claims which the creditor does not know or suspect to exist in his favor at the time ofexecuting the release, which if known to him must have materially affected his settlement with thedebtor.”Notwithstanding the provisions of Section 1542, and for the purpose of implementing a full andcomplete release and discharge of all claims, Employee expressly acknowledges that this Agreementis intended to include in its effect, without limitation, all claims Employee does not know orsuspect to exist in his/her favor at the time of execution hereof, and that the settlement agreedupon contemplates the extinguishment of any such claim or claims. Employee agrees that his/herwaiver of Section 1542 is not a mere recital of Section 1542, but is indeed the intent of theparties in entering into this agreement.7. No Assignment: Employee covenants and affirms that Employee has made no assignmentand will make no assignment of the claims, demands or causes of action released herein and furthercovenants and affirms that Employee has not and will not institute legal proceedings, or file,initiate, or cause to be filed, any claims, charge, suit, complaint, action, or cause of actionbased upon, arising out of, or relating to any claim, demand, or cause of action released herein,nor shall Employee participate, assist or cooperate in any claim, charge, suit, complaint, actionor proceeding regarding Company whether before a court, administrative agency, arbitrator or othertribunal unless required to do so by law.8. No Admissions: Employee and Company understand that the foregoing payments,consideration and promises are not to be construed as an admission on the part of either Employeeor Company or any of the Released Parties of any wrongdoing or liability, nor to be admissible asevidence in any proceeding other than for enforcement of the provisions of this Agreement.9. Confidentiality: The parties acknowledge and agree that the terms and provisionsof this Agreement were made and entered into in strict confidence, and that Employee is receivingconsideration hereunder in exchange for maintaining confidence. Each party promises, warrants, andrepresents that it/he shall not disclose or offer to disclose, and has not disclosed privately orpublicly, any of the terms or provisions of this Agreement or the negotiations leading to thisAgreement to any person or entity other than attorneys, accountantsor immediate family, or as required under a Form 8-K filing and other filings with the UnitedStates Securities & Exchange Commission to the extent necessary to comply with federal law.Employee acknowledges that Employee shall relinquish any right Employee has to the considerationspecified in this Agreement if Employee breaches this confidentiality provision, and agrees toimmediately repay to Company said consideration if Employee breaches this confidentialityprovision.
 
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10. Entire Agreement/Severability: Each party understands that the Agreementrepresents, as to Employee’s employment with and separation from Company, the entire agreement andunderstanding between the parties and supersedes any prior agreement, understanding, ornegotiations respecting such subject. No change to or modification of this Agreement shall bevalid or binding unless it is in writing and signed by Employee and a duly authorized officer ofCompany.In the event any immaterial term, condition or portion of this Agreement is found, judiciallyor otherwise, to be unlawful, void or, for any other reason, unenforceable, that immaterial term,condition or provision shall be deemed severable from this Agreement and the invalidity or lack ofenforceability shall not affect the validity and enforceability of the remaining portions of thisAgreement.11. California Law; Arbitration: This Agreement shall be governed and construed underthe applicable laws of the State of California. The parties hereto agree that any claim ofviolation of this Agreement or arising out of or related to this Agreement shall be resolvedfinally through binding arbitration before a neutral, mutually-selected arbitrator, pursuant to theprocedural rules of either the American Arbitration Association or JAMS/Endispute. The prevailingparty in any such dispute shall be entitled to an award of fees and costs, including attorneys’fees, as well as all other available forms of relief or damages.12. Continuation of Stock Option Plan: Employee’s stock options shall continue to beexercisable in accordance with the terms set forth in Employee’s employment agreement.IN WITNESS WHEREOF, this Agreement is executed by the parties hereto as of the dateindicated by the signature.        Dated: May 15, 2008 **Employee:** /s/ MARTIN W. GREENWALD          Dated: May 9, 2008 Image Entertainment, Inc.