Document:

exv10w6

Exhibit 10.6

SECOND AMENDED AND RESTATED

EXECUTIVE SERVICES AGREEMENT

     This SECOND AMENDED AND RESTATED EXECUTIVE SERVICES AGREEMENT (this “Agreement”), is
dated and effective as of December 1, 2009 (the “Effective Date”), by and among The Film
Department Holdings LLC, a Delaware limited liability company (the “Company”), Sacker
Consultants, Inc., a California corporation (the “Lender”), and Neil Sacker (the
“Executive”), for the executive services of the Executive.

     WHEREAS, the Company and the Executive entered into an Executive Services Agreement dated as
of June 25, 2007 (the “Original Agreement”);

     WHEREAS, the Company and the Executive entered into an Amended and Restated Executive Services
Agreement, dated as of July 22, 2007, as amended by that certain First Amendment to Employment
Agreement, effective as of January 16, 2009, as further amended by that certain Second Amendment to
Employment Agreement, effective as of July 16, 2009 (which the parties have agreed is void ab
initio), as further amended by that certain Third Amendment to Employment Agreement, effective as
of July 16, 2009, and as further amended by that certain Fourth Amendment to Employment Agreement,
dated as of September 1, 2009 (collectively, the “Amended and Restated Agreement”), all of which
superseded the Original Agreement;

     WHEREAS, the Company recognizes that the Executive possesses special and unique skills and the
Company wishes to assure itself of the services of the Executive;

     WHEREAS, the Executive and the Lender have requested that the Lender instead provide the
services of the Executive to the Company pursuant to an amended and restated agreement; and

     WHEREAS, the parties hereto have agreed to amend and restate the Amended and Restated
Agreement in its entirety upon the terms and conditions set forth herein.

     NOW THEREFORE, in consideration of the various covenants and agreements hereinafter set forth,
the parties hereto agree as follows:

     1. Engagement and Term. The Lender hereby lends to the Company, and the Company
hereby accepts, the services of the Executive, as an independent contractor, upon the terms and
subject to the conditions of this Agreement. The term of the engagement hereunder shall commence
on the Effective Date and shall continue until June 25, 2013, unless earlier terminated in
accordance with the provisions of this Agreement (the period from the date of such commencement
through the earlier of such expiration or termination is referred to herein the “Engagement
Term”); provided, however, in the event that the Company or its successor-in-interest
consummates an Equity Transaction (as defined below) on or prior to April 1, 2010, then the
Engagement Term shall continue until June 25, 2015, unless earlier terminated in accordance with
the provisions of this Agreement. Following expiration of the Engagement Term, any engagement by
the Company of the services of the Executive through the Lender shall be at will. Immediately upon
termination of the engagement of the Lender and the Executive for any reason, the Executive shall
be deemed to have concurrently resigned from

 

 

all offices and positions he then holds with the Company and any subsidiaries or affiliates of
the Company (“Subsidiaries”), including being a member of the Board of Directors of the
Company (the “Board”) or any Subsidiary.

For purposes of this Agreement: (a) “Equity Transaction” means, with respect to the Company
or its successor-in-interest, (i) a firm commitment underwritten public offering, pursuant to an
effective registration statement filed under the Securities Act of 1933, as amended, covering the
offer and sale of the Company’s (or any successor in interest’s) equity interests or (ii) the
closing of a private equity investment in the Company or its successor-in-interest, in either case,
with an aggregate offering price (after deduction of underwriters’ discounts and commissions) which
equals or exceeds the amount determined in good faith by the Board reasonably anticipated to be
sufficient to (1) finance the buy-out of the Holders (as defined in the Securities Purchase
Agreement (as defined below)) pursuant to the Eton Park Buyout Agreement (as defined in the LLC
Agreement (as defined below)), (2) commence the Company’s (or its successor-in-interest’s) proposed
U.S. distribution business and (3) otherwise provide for the operating needs of the Company or its
successor-in-interest; and (b) “Securities Purchase Agreement” means that certain
Securities Purchase Agreement, dated as of June 27, 2007 (as amended, restated, supplemented or
otherwise modified from time to time, including pursuant to that certain Forbearance Agreement and
Amendment to Securities Purchase Agreement and Other Note Documents dated as of September 2, 2009,
as amended to date), by and among the Company, the Operating Company (as defined below), Union
Bank, N.A., in its capacity as collateral agent for the Holders, and the Holders (as defined
therein).

     2. Position, Duties and Responsibilities.

          (a) President and Chief Operating Officer. During the Engagement Term, the Executive shall
be President and Chief Operating Officer of the Company, the Company’s wholly-owned Subsidiary, The
Film Department LLC (the “Operating Company”), and such other Subsidiaries of the Company
or the Operating Company as the Company’s Chief Executive Officer (the “Co-Executive”), or
he deems appropriate. In such capacity, the Executive, together with the Co-Executive,
who shall initially be Mark Gill, shall have the powers and authorities of a chief executive officer, president and chief operating officer
typically exercised by such officers of a Delaware corporation, shall be responsible for the
day-to-day business and operation of the Company and the Subsidiaries (including all creative
decisions and the hiring, firing and supervising of employees of the Company and the Subsidiaries,
in each case subject to the limitations set forth in the Company’s Second Amended and Restated
Limited Liability Company Agreement, dated as of December 1, 2009, as the same may be amended
thereafter (the “LLC Agreement”) including the Greenlight Protocol (as defined in the LLC
Agreement)), subject to the senior authority of the Co-Executive and the oversight and authority of
the Board including complying with the Company’s budget and operations plan adopted by the Board
from time to time in accordance with the LLC Agreement; provided, that at all times during which
Mark Gill serves as the Co-Executive (such period, the “Co-Executive Term”), the foregoing
powers and authorities of the Executive shall be shared with, and exercised jointly with, the
Co-Executive, upon the terms and conditions set forth in this Agreement. The Executive shall
report directly to the Board and the Co-Executive and serve at the pleasure of the Board.

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          (b) Hierarchy. The Executive shall be the second highest ranking executive officer of
the Company and its Subsidiaries during the Engagement Term. The Company shall not hire, or
otherwise engage the services of, anyone at a senior (other than a replacement for the Co-Executive
if the Co-Executive Term ends) or equal title, level or responsibility during the Engagement Term.
The Executive shall report directly to the Co-Executive and to the Board during the Engagement
Term. The Chief Financial Officer, the Head of International Sales, the President of Production
and all other employees or independent contractors of the Company shall report to both the
Executive and the Co-Executive (during the Co-Executive Term), jointly, or to lower ranking
subordinates thereof.

          (c) Greenlight Committee. At all times during the Engagement Term, the Executive
shall be a member of the Greenlight Committee of the Company (as defined in the LLC Agreement).

          (d) Performance of Duties. During the Engagement Term, the Executive shall devote all
of his working and business time, attention and energies to performing his duties hereunder. The
Executive shall perform his duties and obligations hereunder diligently, faithfully, competently
and to the best of his abilities in furtherance of the business of the Company, and in accordance
with the highest ethical and professional standards.

          (e) Disagreement with Co-Executive. In the event the Executive and the Co-Executive,
in their capacities as President & COO, and Chief Executive Officer, respectively, are unable to
agree as to any matter pertaining to the operation, employees or finances of the Company or any
Subsidiaries, the matter shall be resolved in accordance with the LLC Agreement.

          (f) Competition.

               (i) During the Engagement Term and for any applicable Severance Period (as defined
below) for which the Lender or the Executive are being compensated by the Company (including
pursuant to Section 8(c) or Section 8(d)), neither the Lender nor the
Executive shall, directly or indirectly, in any city, town, county, parish or other
municipality in any state of the United States (the names of each such city, town, parish,
or other municipality, including, without limitation, the name of each county in the State
of California, being expressly incorporated by reference herein), or any other place in the
world, where the Company, any of the Subsidiaries, or any of their successors or assigns,
engages or proposes to engage in the Business (as defined in the LLC Agreement) or any other
business then contemplated, discussed at a Board meeting or engaged in by the Company or any
Subsidiary (the “Competitive Business”), engage or in any way become interested in
any person or entity that engages in any capacity, including, without limitation, as an
individual, partner, shareholder, owner, member, principal, joint venturer, officer,
director, agent, employee, independent contractor, trustee, advisor, representative,
consultant or otherwise, in the Competitive Business; provided
however, that the
Lender and/or the Executive may (i) continue to maintain a passive involvement in the
projects described on Exhibit A attached hereto (i.e., no services to be provided or

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other activities to be undertaken by the Lender and/or the Executive with respect to
such matters; rather Lender and/or the Executive solely will be receiving credit and
collecting fees for services previously provided or activities previously undertaken) and
the Company shall have no right to the compensation, if any, payable to Lender and/or the
Executive in connection with the fulfillment of such obligations or to reduce any
compensation payable hereunder, (ii) serve as an officer or director of, or otherwise
participate in, educational, welfare, social, religious and civic organizations, (iii)
deliver lectures or fulfill speaking engagements, or (iv) manage personal investments
(provided that the Executive shall not manage actively any personal investments in
any person or entity in the entertainment industry or related to the Competitive Business or
that is or may be directly or indirectly competitive with the Company or any Subsidiary), in
each case under this Section 2(f)(i) as long as such activities do not in any way interfere
with the performance of the Executive’s duties or obligations hereunder.

               (ii) No provision of this Agreement shall be construed to prohibit the Lender’s and/or
the Executive’s acquisition, ownership, or trading of a passive, noncontrolling interest of
less than five percent (5%) of the issued and outstanding publicly traded stock of such
entity.

          (g) Nonsolicitation. At all times during the Engagement Term and for a period of two
(2) years after termination of this Agreement for any reason (including for purposes of this
Agreement the expiration of the Engagement Term), neither the Lender nor the Executive shall,
directly or indirectly, solicit, induce, or attempt to solicit or induce any officer, director,
employee, member, agent, advisor, representative or consultant of the Company or any Subsidiary to
terminate his, her or its employment or other relationship with the Company or any Subsidiary for
any reason whatsoever, including, without limitation, for the purpose of associating with any
competitor of the Company or any Subsidiary or otherwise encourage any such person or entity to
leave, sever or otherwise change his, her or its employment or other relationship with the Company
or any Subsidiary.

          (h) Noninterference. During the Engagement Term and for a period of two (2) years after
the termination of this Agreement for any reason, neither the Lender nor the Executive shall,
directly or indirectly, solicit, induce, or attempt to solicit or induce any customers, clients,
vendors, suppliers or consultants of, or others having a business relationship with, the Company or any Subsidiary to terminate or change his, her or its relationship
with the Company or any Subsidiary, for any reasons whatsoever, including, without limitation, for
the purpose of associating with any competitor of the Company or any Subsidiary or otherwise
encourage such customers, clients, vendors, suppliers or consultants of the Company or any
Subsidiary to terminate, sever or change his, her or its relationship with the Company or any
Subsidiary for any reason.

          (i) Rights and Remedies upon Breach. If the Lender or the Executive breaches any of
the provisions of Sections 2(f), (g) or (h) above (the “Restrictive Covenants”),
the Company and any Subsidiary shall have the following rights and remedies, each of which shall be
independent of the others and severally enforceable, and each of which shall be in addition to, and
not in lieu of, any other rights or remedies available to the Company or any Subsidiary:

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               (i) Specific Performance. The right and remedy to have the Restrictive
Covenants specifically enforced by any court of competent jurisdiction by injunctive decree
or other equitable relief without the obligation to post a bond or other security or proving
damages, it being agreed that any breach of the Restrictive Covenants would cause
irreparable injury to the Company and any Subsidiary and that money damages would not
provide an adequate remedy to the Company or any Subsidiary.

               (ii) Modification by the Court. If any court determines that any of the
Restrictive Covenants, or any part thereof, is illegal, invalid or unenforceable because of
the duration, scope or territorial restrictions of such provision or otherwise, such court
shall have the power (and is hereby instructed by the parties) to reduce the duration, scope
or territorial restrictions of such provision or otherwise modify the Restrictive Covenants,
as the case may be (it being the intent of the parties that any such reduction or
modification be limited to the minimum extent necessary to render such provision legal,
valid and enforceable), so that, in its reduced or modified form, such provision shall then
be legal, valid and enforceable.

               (iii) Enforceability in Jurisdictions. The Lender and the Executive intend to
and hereby confers jurisdiction to enforce the Restrictive Covenants, by seeking appropriate
injunctive relief in accordance with this Section 2(i) upon the courts of any
jurisdiction within the geographic scope of such covenants.

     3. Location of Engagement; Transportation. During the Engagement Term, the Executive
shall perform his services to the Company in the Los Angeles, California area (to be headquartered
at a specific location to be determined in accordance with the LLC Agreement), subject to the
travel needs of the Company’s business consistent with the policies and practices of the Company
adopted and approved by the Board, for which travel air transportation, hotel accommodations,
ground transportation to and from all such locations, a full size rental car, and a per diem (in
lieu of reimbursements of actual expenses) to be negotiated in good faith (all of the foregoing to
be reasonable “business class”) will be provided by the Company at its cost and expense.

     4. Compensation.

          (a) Compensation. During the Engagement Term, the Company shall pay or cause to be
paid to the Lender an annualized base compensation of $540,000 (the “Base Compensation”)
for the services of the Executive; provided, however, in the event that the Company or its
successor-in-interest consummates an Equity Transaction on or prior to April 1, 2010, then the Base
Compensation shall be an annualized base compensation of $600,000 from and after the date of such
Equity Transaction. The Base Compensation may be increased from time to time as determined by the
Board in its sole and absolute discretion (as adjusted, the “Compensation”). During the
Engagement Term, the Compensation shall be payable in equal installments in accordance with the
Company’s then current normal payroll practices and procedures for salaried employees, but no less
frequently than twice per month, less any deductions, withholdings and offsets required by law,
rule or regulation or otherwise authorized by the Lender.

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          (b) Bonuses. The Company shall pay the Executive such bonus compensation, if any, as
the Board may determine is appropriate from time to time in its sole and absolute discretion (in
each case, a “Bonus”). In the event that the Company or its successor-in-interest
consummates an Equity Transaction on or prior to April 1, 2010, the Board will devise and implement
a bonus compensation plan that will provide for the following: (i) an annual review of Executive’s
performance by the Board and its Compensation Committee, (ii) the establishment of objective
targets relating to profitability and other customary benchmarks, and (iii) an acknowledgement that
although profitability of the Company is unlikely in the initial two years after the date of the
Equity Transaction due to current motion picture industry accounting practices, the Board will
nevertheless consider granting appropriate bonuses to senior management provided the Company is
meeting its goals as outlined in the Business Plan (as defined in the LLC Agreement) with regard
to, at a minimum, the number of motion pictures produced and the commercial success thereof.

          (c) Units. Pursuant to the LLC Agreement, the Lender is the record holder of 752.50
Class H Units in the Company (“Class H Units”). The Class H Units shall vest in equal
annual installments of twenty percent (20%) of such Class H Units per year at the close of business
on each anniversary of the Restatement Date (as defined in the LLC Agreement) (commencing on the
first (1st) anniversary of the Restatement Date) until fully vested on the fifth (5th) anniversary
of the Restatement Date, and shall accelerate and vest in full upon a Company Liquidity Event (as
defined in the LLC Agreement) that occurs while the Lender is still providing the services of the
Executive in accordance with this Agreement; provided, however, that vesting shall cease if the
Lender’s engagement by the Company terminates for any reason and all Class H Units which are not
vested at such time shall be immediately and automatically redeemed by the Company on the date that
Lender’s engagement terminated for no additional consideration other than the mutual agreements set
forth herein and in the LLC Agreement and with no further action required by the parties to effect
such redemption.

          (d) Stock Options/Grant. In the event that the Company or its successor-in-interest
consummates an Equity Transaction on or prior to April 1, 2010 and the Company or its
successor-in-interest adopts a stock option plan for the benefit of management, then the Company or
its successor-in-interest shall promptly grant to Executive eighteen and seven-tenths percent
(18.70%) of the total employee stock options pool or common stock pool authorized under such plan
and subject to the other terms and conditions of such plan (the “Stock Options”), which
Stock Options shall vest as follows: (i) 20% of the Stock Options shall vest on the first
anniversary of the grant date, (ii) 20% of the Stock Options shall vest on the second anniversary
of the grant date, (iii) 20% of the Stock Options shall vest on the third anniversary of the grant
date, (iv) 20% of the Stock Options shall vest on the fourth anniversary of the grant date and (v)
the remaining 20% of the Stock Options shall vest on the fifth anniversary of the grant date;
provided, however, that vesting shall cease if the Executive’s employment terminates for any reason
and for such other reasons as may be set forth in the stock option plan.

          (e) The Lender and the Executive have reviewed with their own tax advisors the tax
consequences of this Agreement. The Lender and the Executive are relying solely on such advisors
and not on any statements or representations of the Company or any of its agents. The Lender and
the Executive understand that the Lender and the Executive (and not the Company) shall be
responsible for the Lender’s and the Executive’s own tax liability that may

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arise as a result of the transactions contemplated by this Agreement. Within 30 days from the
date of grant of the Class H Units, the Lender and the Executive will file an election under
Section 83(b) of the Internal Revenue Code with the Internal Revenue Service and will deliver a
copy of such election to the Company.

     5. Expenses. The Company shall reimburse the Lender and the Executive for all
reasonable business expenses incurred by the Lender or the Executive during the Engagement Term in
the performance of the Executive’s services pursuant to this Agreement and consistent with the
policies and practices of the Company as determined by the Board. The Company shall make
reimbursement within a reasonable time following the Lender’s, or the Executive’s, presentation of
expense statements, vouchers, receipts, and such other supporting information as the Company
reasonably may require from the Lender or the Executive. The Lender and the Executive acknowledge
that the Company’s policies and practices regarding the documentation of expenses for which
reimbursement is sought may change from time to time, and the Lender and the Executive agree that
they will comply with all such documentation requirements.

     6. Benefits.

          (a) The Executive, and the Executive’s dependents, shall be eligible to participate in any
group life insurance, hospitalization, medical, health and accident, dental, disability, or similar
plan or program generally made available by the Company to its most senior executives.

          (b) The Executive shall be eligible to participate in all savings, retirement and similar
plans generally made available by the Company to its most senior executives. Such plans include a
401(k) plan and a defined contribution pension plan where the aggregate costs of all such plans,
including administration thereof, do not exceed the Internal Revenue Code safe harbor for any
applicable year.

          (c) The Executive shall be entitled to two (2) weeks of paid vacation during each full year of
the Engagement Term, in accordance with the accrual methodology and vacation-day accrual
limitations in the vacation leave policy adopted and approved by the Board and applied by the
Company to its employees. The Executive may observe the legal and other holidays recognized by the
Board, and religious holidays that the Executive deems appropriate, in the sound exercise of his
business judgment.

     7. Confidential Information. The Lender and the Executive acknowledge that the
Executive’s engagement to provide services to the Company will result in the Lender or the
Executive having access to confidential or proprietary information (whether in oral, written,
electronic or other format) regarding the affairs, trade secrets, operations, results of
operations, business and prospects of the Company and its Subsidiaries (the “Confidential
Information”). Examples of Confidential Information include, without limitation, information
regarding business plans, marketing plans, financial information, acquisition information,
distribution information, licensing information, personnel information, scripts, ideas for
projects, motion pictures, processes, know-how, trade secrets, formulas, litigation, operations,
methods, pricing information, costs, marketing data, procedures, customer lists, customer
information, development activities and technical data and other information. The Lender and the
Executive

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acknowledge that the improper use or disclosure of Confidential Information would have a
material adverse effect on the Company and/or its Subsidiaries, including, without limitation,
their operations, financial performance, development of their business and prospects. The Lender
and the Executive therefore covenant and agree as set forth below:

          (a) The Lender and the Executive shall keep secret and confidential all Confidential
Information, and shall not disclose, divulge or otherwise use any Confidential Information other
than for the benefit of the Company in connection with the Executive’s proper performance of his
duties under and pursuant to this Agreement, except with the Board’s prior written consent,
provided that (i) during the Engagement Term the Lender and the Executive may use and disclose the
Confidential Information as reasonably necessary in the performance of the Executive’s duties and
responsibilities under this Agreement and for the benefit of the Company in the reasonable and good
faith exercise of his power and authority pursuant to this Agreement, (ii) the Lender and the
Executive shall have no such obligation to the extent Confidential Information is or becomes
publicly known, other than as a result of the Lender’s, or the Executive’s, breach, directly or
indirectly, of their obligations hereunder; and (iii) the Lender or the Executive may, after giving
prior written notice to the Company, disclose such matters to the extent required by applicable
laws or governmental regulations or judicial or regulatory process (by oral questions,
interrogatories, requests for information or documents, subpoena, civil investigative demand or
similar process); provided, however, that if the Lender or the Executive is so requested to
disclose any Confidential Information pursuant to the foregoing clause (iii), Lender and the
Executive agree to provide the Company with prompt prior written notice, if not precluded by
applicable law, in reasonable detail of each such request so that the Company may seek an
appropriate protective order; provided, further, that if, absent the entry of a protective order or
the receipt of a waiver under this Agreement, the Lender or the Executive is, in the reasonable
opinion of its counsel, legally compelled to disclose such Confidential Information under pain of
liability for contempt or other censure or penalty (civil or criminal), the Lender or the Executive
may disclose such information to the governmental entity to the extent required without liability
under this Agreement. In such event, the Lender and the Executive shall exercise their reasonable
commercial efforts to obtain reliable assurances that confidential treatment will be accorded any
such Confidential Information so disclosed.

          (b) The Lender and the Executive shall deliver to the Company at its principal executive
offices at the termination of this Agreement (including at the end of the Engagement Term), or at
any other time the Company may so request, (i) all memoranda, notes, records, reports, and other
documents and information (including, without limitation, drafts, whole or partial copies, and
information stored or maintained electronically, magnetically, in a computer, or through any other
medium currently existing or invented in the future) relating to, discussing or containing any
portion of the business of the Company or any Confidential Information and which they may then
possess or have under their direct or indirect control, excluding any documents dealing with
Lender’s or Executive’s rights under this Agreement, any other agreement or any benefit plan in
which Lender or Executive participates and (ii) all of the Company’s and any Subsidiary’s property
and equipment (including, without limitation, any cell phones, pagers, credit cards, computers,
etc.).

          (c) The Lender’s and/or the Executive’s duties may require entry into confidentiality
agreements, nondisclosure agreements, or comparable agreements with third

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parties, and a third party may require the Lender’s or the Executive’s entry into such an
agreement(s) personally and on behalf of the Company. In any such event, the Lender and the
Executive agree to engage in reasonable efforts to perform any such agreement.

     8. Termination.

          (a) Definitions. The following definitions shall apply to the use of such terms in
this Agreement:

               (i) “Cause” means:

                    (1) the Lender’s or the Executive’s willful malfeasance, gross negligence or
gross or willful misconduct in the performance of the duties or responsibilities of
his position with the Company or any Subsidiary in accordance with this Agreement;

                    (2) the Lender’s or the Executive’s failure to timely carry out any lawful directive prescribed by the Board in accordance with this Agreement
and the LLC Agreement other than any such failure resulting solely from Executive’s
Disability;

                    (3) Executive’s misappropriation of any funds or property of the Company or any
Subsidiary or the commission by Executive of an act of fraud or dishonesty;

                    (4) reasonable evidence (as determined in good faith by the Board) to indicate
that the Lender or the Executive has committed any felony;

                    (5) acting in any way (including any act of moral turpitude) that has or is
reasonably likely to have a material adverse effect on the Company’s or any
Subsidiary’s business, operations, results of operation, prospects or reputation;

                    (6) the improper disclosure, divulging or use by the Lender or the Executive of
any Confidential Information in violation of any confidentiality or proprietary
agreement or obligation to which the Lender or the Executive is a party or bound
(including Section 7 hereof);

                    (7) use of illegal drugs or improper use of alcohol, during work hours, being
under the influence of illegal drugs or excessive alcohol during work hours or,
subject to applicable federal or state law, chronic alcoholism or drug addiction
(which shall not include the proper use of lawfully prescribed drugs); or

                    (8) any other material violation of any provision of this Agreement;

provided, that with respect to any violation of Section (2) or (8) that is
reasonably subject to cure, the Lender and the Executive shall have the right, within thirty
(30) days after

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receipt of notice from the Company, to cure such event or circumstance giving rise to the
violation, in the event of which such event or circumstance shall be deemed to not
constitute Cause hereunder.

In the event that the Lender and the Executive fail to cure the events and/or circumstances
giving rise to Cause as described above, the Company agrees that each of the following must
occur before the Company may assert the existence of Cause under Section (2) or (8)
above: (A) the Company or the Board must provide written notice to the Lender and the
Executive, with reasonable detail, of the matter(s) giving rise to the notice; and (B) the
Lender and the Executive must have the opportunity to respond in writing to the written
notice, with the assistance of any counsel deemed appropriate by the Lender and the
Executive (at the Lender’s and the Executive’s expense), not later than ten (10) days after
delivery of the written notice; and (C) the Board must provide the Lender and the Executive,
if requested in the written response to the written notice contemplated above, the
opportunity to address the Board during a confidential meeting of the Board to be held as
soon as reasonably practicable after the request; provided, however, that the
Company may assert the existence of Cause under Section (2) or (8) above upon the
earlier of the completion of the foregoing procedures or the Lender’s and the Executive’s
failure to provide a written response or orally present their position at a Board meeting
within the time periods described above (the foregoing shall collectively be referred to
herein as, the “Cause Determination Procedure”).

               (ii) “Constructive Termination without Cause” means the termination of the
Lender’s engagement to provide the Executive’s services to the Company pursuant to this
Agreement at the Lender’s initiative, after one or more of the following events, but within
ninety (90) days of the occurrence thereof, in any case where no Cause exists and after the
Lender provides written notice to the Board, with reasonable detail, of the matter:

                    (1) a reduction in the Compensation or the uncured material violation by the
Company of any provision of this Agreement;

                    (2) any material diminution in the duties, authority, responsibilities, or
positions of the Executive from that specified in this Agreement; or

                    (3) the assignment to the Executive of duties or responsibilities that are
materially inconsistent or different from those set forth herein (excluding an
isolated and inadvertent action by the Company not taken in bad faith and which is
remedied by the Company promptly after receipt by the Board of written notice from
the Lender or the Executive specifying in reasonable detail the applicable action);

provided, that with respect to any violation or event that is reasonably subject to
cure, the Company shall have the right, within thirty (30) days after receipt of notice, to
cure such event or circumstance giving rise to the violation, in the event of which such
event or circumstance shall be deemed to not constitute Constructive Termination without
Cause.

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“Disability” means the inability of the Executive to perform the essential functions
of his position in accordance with this Agreement with or without reasonable accommodation
on account of mental or physical disability, illness or other incapacity for (a) sixty (60)
consecutive days, or (b) any one hundred twenty (120) days in any three hundred sixty (360)
day period, it being understood and agreed that the Executive’s continuous and sustained
participation in the operation of the Company and presence at work is an essential function
of the job.

          (b) Termination by the Company for Cause or by the Lender other than upon Constructive
Termination without Cause.

               (i) The Executive’s engagement to provide services to the Company on behalf of the
Lender pursuant to this Agreement may only be terminated for Cause upon the affirmative vote
of a majority of the Board and in compliance with the Cause Determination Procedure.

               (ii) If the Company terminates this Agreement for Cause or the Lender terminates this
Agreement other than upon Constructive Termination without Cause, (x) the Lender shall be
paid all earned but unpaid Compensation or Bonus, together with accrued, but unused,
vacation pay (as determined in accordance with the Company’s then current policy on vacation
accrual) through the date of termination, and any other benefits accrued through the date of
termination pursuant to the terms of this Agreement and (y) the Lender shall retain all of
the Class H Units initially issued to, or owned of record or beneficially by, the Executive,
the Lender or any Affiliate (as defined in the LLC Agreement) of either of the foregoing
(the “Lender’s Units”) that have vested prior to the date of termination (subject to
Section 8(e)). The Company shall also reimburse the Lender and the Executive in
accordance with Section 5 hereof for expenses incurred prior to the date of
termination which are otherwise reimbursable but which have not then been reimbursed
pursuant to Section 5 hereof.

          (c) Termination by the Company without Cause or by the Lender for Constructive Termination
without Cause. In the event the Executive’s engagement to provide services to the Company on
behalf of the Lender pursuant to this Agreement is terminated by the Company without Cause, or by
the Lender for Constructive Termination without Cause, the Lender or the Executive, as the case may
be, shall be entitled to the following:

               (i) to be paid on the date of termination, earned but unpaid Compensation and Bonus,
together with accrued but unused, vacation pay (as determined in accordance with the
Company’s then current policy on vacation accrual) through the date of termination;

               (ii) to reimbursement in accordance with Section 5 hereof of the expenses
incurred prior to the date of termination which are otherwise reimbursable but which have
not been reimbursed pursuant to Section 5 hereof;

               (iii) to be paid the cash equivalent of the Compensation (the “Compensation
Payment”) for the lesser of (x) twenty-four (24) months or (y) the

11

 

unexpired portion of the Engagement Term as if the Engagement Term had not been
terminated (the “Severance Period”), with the pro rata equivalent of the
Compensation Payment, subject to Section 11(p) herein, payable by the Company to the
Lender in accordance with the Company’s then current normal payroll practices, but not less
frequently than twice per month, and the Executive and the Executive’s family, as
applicable, shall also continue, for the Severance Period, to be entitled to the
continuation of all benefits set forth in Section 6(a) hereof; and

               (iv) to retain that number of the Lender’s Units that have vested prior to the date of
notice of such termination.

          (d) Death and Disability. This Agreement shall automatically terminate upon the death
of the Executive and may be terminated by the Board in the event of the Disability of the
Executive. In the event that this Agreement is terminated due to the death or Disability of the
Executive, the Lender or the Executive’s estate, as the case may be, shall be entitled to receive
in full satisfaction of all obligations due to the Lender and the Executive from the Company
hereunder,

               (i) all earned but unpaid Compensation and Bonus, together with accrued, but unused,
vacation pay (as determined in accordance with the Company’s policy on vacation accrual)
through the date of termination;

               (ii) reimbursement in accordance with Section 5 hereof of expenses incurred
prior to the date of termination which are otherwise reimbursable but which have not been
reimbursed pursuant to Section 5 hereof;

               (iii) an amount equal to the lesser of (x) three (3) months’ Compensation or (y) the
unexpired portion of the Engagement Term as if the Engagement Term had not been terminated,
with the pro rata equivalent thereof, subject to Section 11(p) hereof, payable by
the Company to the Lender in accordance with the Company’s then current normal payroll
practices, but no less frequently than twice per month; and

               (iv) retain that number of the Lender’s Units that have vested prior to the date of
such termination (subject to Section 8(e)).

          (e) Repurchase Right. If termination of the engagement occurs pursuant to Section
8(b) or 8(d), the Company shall have the right, but not the obligation, to purchase for
cash all, but not part, of the vested units of the Lender’s Units (the “Retained Units”) at
the fair market value of such Retained Units as of the date of a notice to the Lender exercising
such right; provided, however, that the exercise of such right and the delivery of such notice may
only occur within the six (6) month period immediately following the date of termination. The fair
market value of the Retained Units shall be determined as of the date of such exercise notice based
upon the amounts payable with respect to the Class H Units, as applicable, pursuant to the
distribution waterfall in Section 7.4(a) of the LLC Agreement. The Lender and the Company
through the Board shall negotiate in good faith to determine such fair market value. If they are
unable to agree on such fair market value within thirty (30) days of such termination, such fair

12

 

market value shall be determined in accordance with Sections 5.5(a)(i), (a)(ii), (b) and
(c) of the LLC Agreement with appropriate usage of parties and similar concepts to reflect the
application thereof to the repurchase right versus a put right.

     9. Indemnification. Except as otherwise required by applicable law or as provided in
this Agreement, the Company shall indemnify and hold harmless the Lender and the Executive from and
against all liabilities, judgments, losses (including amounts paid in settlement), costs, damages
and expenses (including all reasonable legal or other expenses incurred in investigating or
defending against any such liability, judgment, loss, cost, damage or expense) actually incurred by
the Lender or the Executive by reason of any act or omission or any alleged act or alleged omission
performed or omitted by the Lender or the Executive (including those in connection with serving as
officers or on boards of directors of the Company or for any Subsidiary or affiliate of the
Company) so long as the Lender and the Executive shall have acted in good faith on behalf of the
Company and in a manner reasonably believed to be within the scope of authority conferred on the
Lender or the Executive by or pursuant to this Agreement, except that the Lender and the Executive
shall not be entitled to be indemnified in respect of any liability, loss, cost, damage or expense
incurred by the Lender or the Executive by reason of fraud, gross negligence or willful misconduct.
The rights granted pursuant to this Section 9 shall be deemed contract rights, and no amendment,
modification or repeal of this Section 9 shall have the effect of limiting or denying any such
rights with respect to actions taken or proceedings, appeals, inquiries or investigations arising
prior to any amendment, modification or repeal. To the fullest extent permitted by applicable law,
expenses (including reasonable legal fees) incurred by the Lender or the Executive in defending any
claim, demand, action, suit or proceeding shall promptly, from time to time, be advanced by the
Company prior to the final disposition of such claim, demand, action, suit or proceeding upon
receipt by the Company of an undertaking by or on behalf of the Lender and the Executive to repay
such amount if it shall be determined that the Lender or the Executive is not entitled to be
indemnified as authorized in Section 9 hereof. The rights set forth in this Section 9 are in
addition to, and not in lieu of, any indemnification rights of the Lender or the Executive set
forth in the LLC Agreement; provided that in no event shall the Lender or the Executive receive or
be entitled to duplicative indemnification. The indemnification obligations set forth in this
Section 9 shall survive the termination of this Agreement and the Engagement Term for any reason.

     10. Assignment of Intellectual Property Rights.

          (a) Definition of “Intellectual Property”; Certain Limitations.

               (i) As used herein, the term “Intellectual Property” shall mean all software,
inventions, discoveries, processes, know-how, plans, procedures, formula, trade secrets,
methods, artistic or creative materials (including, without limitation, concepts, scripts,
ideas for projects, motion pictures and development materials), service marks, designs,
licenses, logos, proprietary or technical information and all other intellectual property of
any nature and in any media, including works-in-progress, whether or not subject to patent,
trademark, tradename, tradedress, copyright, trade secret, or mask work protection, and
whether or not reduced to practice, which are made, created, authored, conceived, or reduced
to practice by the Lender or the Executive, either alone or jointly with others, during the
period of engagement by the Company which (x) relate, to any

13

 

extent, to the past, actual or planned business or activities of the Company or any
Subsidiary, (y) result from or is suggested by, to any extent, work performed by the Lender
or the Executive for the Company or any Subsidiary (whether or not made or conceived during
normal working hours or on the premises of the Company) or (z) which result, to any extent,
from use of the premises or property of the Company.

               (ii) The Company hereby notifies the Lender and the Executive that the provisions of
this Section 10 do not apply to any Intellectual Property for which no equipment,
supplies, facilities or trade secret information of the Company was used and which was
developed entirely on the Lender’s or the Executive’s own time, unless (x) such Intellectual
Property relates to the past, actual or planned business or activities of the Company,
including, without limitation, research and development or (y) such Intellectual Property
results in any way from any work performed by the Executive for the Company.

          (b)
Work for Hire. Except as provided in Section 10(a)(ii) above, the Lender
and the Executive expressly acknowledge that all copyrightable aspects of the Intellectual Property
are to be considered “works made for hire” within the meaning of the Copyright Act of 1976, as
amended (the “Act”), and that the Company is to be the “author” within the meaning of such
Act for all purposes. All such copyrightable works, as well as all copies of such works in
whatever medium fixed or embodied, shall be owned exclusively by the Company as of its creation,
and the Lender and the Executive hereby expressly disclaim any and all interest in any of such
copyrightable works.

          (c) Assignment. The Lender and the Executive acknowledge and agree that all
Intellectual Property constitutes trade secrets of the Company (other than any Intellectual
Property described in clause (ii) of Section 10(a)) and shall be the sole property of the
Company or any other entity designated by the Company. In the event that title to any or all of
the Intellectual Property, or any part or element thereof, may not, by operation of law, vest in
the Company, or such Intellectual Property may be found as a matter of law not to be “works made
for hire” within the meaning of the Act, the Lender and the Executive hereby convey and irrevocably
assign to the Company, without further consideration, all of their right, title and interest,
throughout the universe and in perpetuity, in all Intellectual Property and all copies thereof, in
whatever medium fixed or embodied, and in all written records, graphics, diagrams, notes, or
reports relating thereto in the Lender’s or the Executive’s possession or under their control,
including, with respect to any of the foregoing, all rights of patent, trademark, tradename,
tradedress, copyright, trade secret, mask work, and any and all other proprietary rights therein,
the right to modify and create derivative works, the right to invoke the benefit of any priority
under any international convention, and all rights to register and renew same.

          (d) Proprietary Notices; No Filings; Waiver of Moral Rights. The Lender and the
Executive acknowledge that all Intellectual Property shall, at the sole option of the Company, bear
the Company’s patent, copyright, trademark, trade secret, mask work and other proprietary rights
notices. The Lender and the Executive agree not to file any patent, copyright, or trademark
applications relating to any Intellectual Property, except with prior written consent of an
authorized officer of the Company (other than the Executive). The Lender and the Executive hereby
expressly disclaim any and all interest in any Intellectual Property and waive any right of

14

 

droit morale or similar rights, such as rights of integrity or the right to be attributed as
the creator of any Intellectual Property.

          (e) Further Assurances. The Lender and the Executive agree to assist the Company, or
any party designated by the Company, promptly on the Company’s request, whether before, during or
after the termination of engagement with the Company, in perfecting, registering, maintaining, and
enforcing, in any jurisdiction, the Company’s rights in the Intellectual Property by performing all
acts and executing all documents and instruments deemed necessary or convenient by the Company,
including, by way of illustration and not limitation:

               (i) Executing assignments, applications, and other documents and instruments in
connection with (x) obtaining patents, copyrights, trademarks, mask works, or other
proprietary protections for the Intellectual Property and (y) confirming the assignment to
the Company of all right, title, and interest in the Intellectual Property or otherwise
establishing the Company’s exclusive ownership rights therein; and

               (ii) Cooperating in the prosecution of patent, copyright, trademark and mask work
applications, as well as in the enforcement of the Company’s rights in the Intellectual
Property, including, but not limited to, testifying in court or before any patent,
copyright, trademark or mask work registry office or any other administrative body.

     The Lender and the Executive shall be reimbursed for all reasonable out-of-pocket costs
incurred in connection with the foregoing if such assistance is requested by the Company after the
termination of the Executive’s engagement.

          (f) Disclosure of Intellectual Property. The Lender and the Executive shall make full
and prompt disclosure to the Company on a continuing basis of all Intellectual Property subject to
assignment by the Lender and the Executive to the Company.

     11. General.

          (a) Notices. All notices, requests and other communications hereunder must be in
writing and shall be deemed to have been duly given only if delivered personally, by facsimile
transmission or certified mail (first class postage prepaid) return receipt requested, or
nationally recognized overnight delivery service with proof of receipt maintained, to the parties
at the following addresses or facsimile numbers:

If to the Company, to:

The Film Department Holdings LLC

8439 Sunset Boulevard, Second Floor

West Hollywood, California 90069

Facsimile: (866) 311-4894

Attn: Mark Gill, CEO;

          and to all Board members

15

 

If to the Lender or the Executive, to:

Neil Sacker

10833 Wilshire Boulevard, Suite 132

Los Angeles, California 90024

Facsimile: (866) 311-4894

All such notices, requests and other communications shall (a) if delivered personally to the
address as provided in this Section, be deemed given upon delivery, (b) if delivered by facsimile
transmission to the facsimile number as provided in this Section, be deemed given on the first
business day following confirmation, (c) if delivered by nationally recognized overnight delivery
service in the manner described above to the address as provided in this Section, be deemed
received the first business day after the business day sent, and (d) if delivered by mail in the
manner described above to the address as provided in this Section, be deemed given upon the earlier
of actual receipt or seven (7) business days after deposit in the mail (in each case regardless of
whether such notice, request or other communication is received by any other Person to whom a copy
of such notice is to be delivered pursuant to this Section). Any party from time to time may
change its address, facsimile number or other information for the purpose of notices to that party
by giving notice specifying such change to the other parties hereto.

          (b) Entire Agreement. This Agreement sets forth the entire understanding of the
parties with respect to the subject matter hereof; supersedes in its entirety the Amended and
Restated Agreement and all other existing agreements between them concerning such subject matter,
and may be modified only by a written instrument duly executed by each party.

          (c) Waiver. Any term or condition of this Agreement may be waived at any time by the
party that is entitled to the benefit thereof, but no such waiver shall be effective unless set
forth in a written instrument duly executed (with respect to the Company, after due authorization
by the Board) by or on behalf of the party waiving such term or condition. No waiver by any party
of any term or condition of this Agreement, in any one or more instances, shall be deemed to be or
construed as a waiver of the same or any other term or condition of this Agreement on any future
occasion. All remedies, either under this Agreement or by law or otherwise afforded, shall be
cumulative and not alternative.

          (d) Amendment. This Agreement may be amended, supplemented or modified only by a
written instrument duly executed (with respect to the Company, after due authorization by the
Board) by or on behalf of each party hereto.

          (e) No Third Party Beneficiary. The terms and provisions of this Agreement are
intended solely for the benefit of each party hereto and their respective successors or permitted
assigns, and it is not the intention of the parties to confer third-party beneficiary rights upon
any other person.

          (f) Headings; Definitional Provisions; etc. The headings used in this Agreement have
been inserted for convenience of reference only and do not define or limit the provisions hereof.
Any reference to the masculine, feminine, or neuter gender shall be a reference to such other
gender as is appropriate. References to the singular shall include the

16

 

plural and vice versa. The words “herein” and “hereunder” and words of similar import, when
used in this Agreement, shall refer to this Agreement as a whole and not to any particular
provision of this Agreement. Whenever the words “include,” “including” or “includes” appear in
this Agreement, they shall be read to be followed by the words “without limitation” or words having
similar import.

          (g) Invalid Provisions. If any provision of this Agreement is held to be illegal,
invalid or unenforceable under any present or future law, and if the rights or obligations of any
party hereto under this Agreement shall not be materially and adversely affected thereby, (a) such
provision shall be fully severable, (b) this Agreement shall be construed and enforced as if such
illegal, invalid or unenforceable provision had never composed a part hereof, (c) the remaining
provisions of this Agreement shall remain in full force and effect and shall not be affected by the
illegal, invalid or unenforceable provision or by its severance and (d) in lieu of such illegal,
invalid or unenforceable provision, there shall be added automatically as a part of this Agreement
a legal, valid and enforceable provision as similar in terms to such illegal, invalid or
unenforceable provision as may be possible.

          (h) Drafting History. In resolving any dispute or construing any provision in the
Agreement, there shall be no presumption made or inference drawn (a) because the attorneys for one
of the parties drafted such provision of the Agreement, (b) because of the drafting history of the
Agreement, or (c) because of the inclusion of a provision not contained in a prior draft or the
deletion of a provision contained in a prior draft. The parties acknowledge and agree that this
Agreement was negotiated and drafted with each party being represented by counsel of its choice and
with each party having an equal opportunity to participate in the drafting of the provisions hereof
and shall therefore be construed as if drafted jointly by the parties.

          (i) Arbitration. The Company, on the one hand, and the Lender and the Executive, on
the other hand, agree that, if a dispute arises concerning or relating to this Agreement or the
provision of the Executive’s services hereunder, the dispute shall be submitted to binding
arbitration under the rules of the American Arbitration Association then in effect. The
arbitration shall take place in Los Angeles County, California and all of the parties agree to
submit to the jurisdiction of the arbitrator selected in accordance with the American Arbitration
Association Commercial Rules and procedures. Except for any claims for injunctive relief, the
parties agree that this arbitration procedure shall be the exclusive means of redress for any
disputes relating to or arising from this Agreement between or among the parties, including
disputes over rights provided by federal, state or local statutes, regulations, ordinances and
common law, including all laws that prohibit discrimination based on any protected classification.
The parties expressly waive the right to trial in a court of law, and agree that the arbitrator’s
award shall be final and binding on the parties, and not appealable, subject to manifest error
which can only be corrected by the arbitrator. Each party shall pay for its own costs and
attorneys’ fees related to the arbitration; however, the Company shall pay for all costs that are
unique to the arbitration. If a party prevails on a statutory claim that affords the prevailing
party their attorneys’ fees, or where there is a written agreement providing for such fees, the
arbitrator may award reasonable fees to the prevailing party. The arbitrator shall have the
authority to award any damages authorized by law other than punitive, consequential or special
damages. The parties agree to keep the fact, and results and findings, of the arbitration

17

 

confidential (subject to applicable law) and agree to execute all necessary documents to
maintain such confidentiality.

          (j) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of California applicable to a contract executed and performed in such
State without giving effect to the conflicts of laws principles thereof that would result in the
applicability of the laws of another jurisdiction.

          (k) Attorneys’ Fees. If any legal action, arbitration or other proceeding is brought
for the enforcement of this Agreement, or because of any alleged dispute, breach, default or
misrepresentation in connection with this Agreement, the successful or prevailing party shall be
entitled to recover reasonable attorneys’ fees and other costs it incurred in that action or
proceeding, in addition to any other relief to which it may be entitled.

          (l) Mitigation. The Lender and the Executive shall be obligated to take reasonable
steps to mitigate any damages hereunder including seeking other employment or engagement of
services and taking other reasonable actions by way of mitigation of the amounts payable to the
Lender or the Executive under any provisions of this Agreement, and such amounts otherwise so
payable shall be reduced if the Lender and the Executive obtain other employment or engagement.
The Company’s obligation to make payments provided for in this Agreement and otherwise to perform
its obligations hereunder shall be subject to setoff, counterclaim, recoupment, defense and other
claim, right or action which the Company (or any other party) may have against the Lender, the
Executive or others.

          (m) Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

          (n) Successors and Assigns. This Agreement, and the Lender’s and the Executive’s
rights and obligations hereunder, may not be assigned by the Lender or the Executive and any
prohibited assignment attempted by the Lender or the Executive is void. This Agreement shall be
binding on and enforceable by any successor to the Company, whether by merger, acquisition of
substantially all of the Company’s assets or otherwise, as fully as if such successor was a
signatory hereto and the Company shall cause such successor to, and such successor shall, expressly
assume the Company’s obligations hereunder. Notwithstanding anything else herein contained, the
term “Company” as used in this Agreement, shall include all such successors.

          (o) No Conflicting Obligations. The Lender and the Executive affirm that no
obligation of the Lender or the Executive precludes or in the future may preclude the Lender’s or
the Executive’s entry into and full faithful performance of each and all of the Executive’s duties
and obligations under this Agreement.

          (p) Section 409A. Unless otherwise expressly provided, any payment of compensation by
the Company to the Lender, whether pursuant to this Agreement or otherwise, shall be made within
two and one-half months (21/2 months) after the later of the end of the calendar year of the
Company’s fiscal year in which the Lender’s right to such payment vests

18

 

(i.e., is not subject to a “substantial risk of forfeiture” for purposes of Code Section 409A
of the Internal Revenue Code of 1986, as amended (“Code”)). For purposes of this
Agreement, termination of the engagement shall be deemed to occur only upon “separation from
service” as such term is defined under Code Section 409A. To the extent that any severance payments
(including payments on constructive termination for “good reason”) come within the definition of
“involuntary severance” under Code Section 409A, such amounts up to the lesser of two times the
Lender’s annual compensation for the year preceding the year of termination or two times the
401(a)(17) limit for the year of termination, shall be excluded from “deferred compensation” as
allowed under Code Section 409A, and shall not be subject to the following Code Section 409A
compliance requirements. All payments of “nonqualified deferred compensation” (within the meaning
of Section 409A) are intended to comply with the requirements of Section 409A, and shall be
interpreted in accordance therewith. No party may accelerate any such deferred payment, except in
compliance with Section 409A, and no amount shall be paid prior to the earliest date on which it is
permitted to be paid under Section 409A. In the event that the Executive is a “key employee” (as
defined in Code Section 416(i) without regard to paragraph (5) thereof) of a corporation any stock
of which is publicly traded on an established securities market, payments determined to be
“nonqualified deferred compensation” payable by reason of termination of the engagement shall be
deferred and not paid until the earlier of (i) the last day of the sixth (6th) complete calendar
month following such termination of the engagement, or (ii) the Executive’s death, consistent with
the provisions of Code Section 409A. All expense reimbursement or in-kind benefits provided under
this Agreement or, unless otherwise specified, under any Company program or policy shall be subject
to the following rules: (i) the amount of expenses eligible for reimbursement or in-kind benefits
provided during one calendar year may not affect the benefits provided during any other year; (ii)
reimbursements shall be paid no later than the end of the calendar year following the year in which
the Executive incurs such expenses, and the Executive shall take all actions necessary to claim all
such reimbursements on a timely basis to permit the Company to make all such reimbursement payments
prior to the end of said period, and (iii) the right to reimbursement or in-kind benefits shall not
be subject to liquidation or exchange for another benefit. Notwithstanding anything herein to the
contrary no amendment may be made to this Agreement if it would cause the Agreement or any payment
hereunder not to be in compliance with Section 409A.

[signature page follows]

19

 

IN WITNESS WHEREOF, the parties have duly executed this Second Amended and Restated Executive
Services Agreement as of the date first above written.

	 	 	 	 	 
	 	COMPANY:

THE FILM DEPARTMENT HOLDINGS LLC

 	 
	 	By:  	/s/ Mark Gill	 
	 	 	Mark Gill, Chief Executive Officer 	 
	 	 	 	 
	 
	 	LENDER:

SACKER CONSULTANTS, INC.

 	 
	 	By:  	/s/ Neil Sacker	 
	 	 	Neil Sacker, President 	 
	 	 	 	 
	 
	 	EXECUTIVE:

 	 
	 	By:  	/s/ Neil Sacker	 
	 	 	NEIL SACKER 	 
	 

 

 

EXHIBIT A

Pre-Existing Projects

1. Executive is serving as a producer on the following projects:

an untitled Lacrosse project

2. Executive is serving as an executive producer on the following projects:

“No Woman, No Cry”

“Elements”

“Urban Wizard of Oz Project”

an untitled contemporary Cinderella project

“Urban Record Store Project”

an untitled teenage football project

“Crawlers”exv10w7

Exhibit 10.7

AMENDED AND RESTATED

EXECUTIVE SERVICES AGREEMENT

     This AMENDED AND RESTATED EXECUTIVE SERVICES AGREEMENT (this “Agreement”), dated as of
December 1, 2009 (the “Effective Date”), by and among The Film Department Holdings LLC, a
Delaware limited liability company (the “Company”), Chateau Holdings, Inc., an Idaho
corporation (the “Lender”), and Robert Katz (the “Executive”), for the executive
services of the Executive.

     WHEREAS, the Company and the Executive entered into an Executive Services Agreement dated as
of June 25, 2007, as amended by that certain First Amendment to Employment Agreement, effective as
of January 16, 2009, as further amended by that certain Second Amendment to Employment Agreement,
effective as of July 16, 2009 (which the parties have agreed is void ab initio), as further amended
by that certain Third Amendment to Employment Agreement, effective as of July 16, 2009, and as
further amended by that certain Fourth Amendment to Employment Agreement, dated as of September 1,
2009 (collectively, the “Original Agreement”);

     WHEREAS, the Company recognizes that the Executive possesses special and unique skills and the
Company wishes to assure itself of the services of the Executive;

     WHEREAS, the Executive and the Lender have requested that the Lender instead provide the
services of the Executive to the Company pursuant to an amended and restated agreement; and

     WHEREAS, the parties hereto have agreed to amend and restate the Original Agreement in its
entirety upon the terms and conditions set forth herein.

     NOW THEREFORE, in consideration of the various covenants and agreements hereinafter set forth,
the parties hereto agree as follows:

     1. Engagement and Term. The Lender hereby lends to the Company, and the Company
hereby accepts, the services of the Executive, as an independent contractor, upon the terms and
subject to the conditions of this Agreement. The term of the engagement hereunder shall commence
on the Effective Date and shall continue until July 31, 2011 (the period from the Effective Date
through the earlier of such expiration or termination, as such period may be extended hereunder, is
referred to herein the “Engagement Term”); provided, however, in the event that the Company
or its successor-in-interest consummates an Equity Transaction (as defined below) on or prior to
April 1, 2010, then the Engagement Term shall continue until July 31, 2013, unless earlier
terminated in accordance with the provisions of this Agreement. Following expiration of the
Engagement Term, any engagement by the Company of the services of the Executive through the Lender
shall be at will. Immediately upon termination of the engagement of the Lender and the Executive
for any reason, the Executive shall be deemed to have concurrently resigned from all offices and
positions he then holds with the Company and any subsidiaries or affiliates of the Company
(“Subsidiaries”).

For purposes of this Agreement: (a) “Equity Transaction” means, with respect to the Company
or

 

 

its successor-in-interest, (i) a firm commitment underwritten public offering, pursuant to an
effective registration statement filed under the Securities Act of 1933, as amended, covering the
offer and sale of the Company’s (or any successor in interest’s) equity interests or (ii) the
closing of a private equity investment in the Company or its successor-in-interest, in either case,
with an aggregate offering price (after deduction of underwriters’ discounts and commissions) which
equals or exceeds the amount determined in good faith by the Board reasonably anticipated to be
sufficient to (1) finance the buy-out of the Holders (as defined in the Securities Purchase
Agreement (as defined below)) pursuant to the Eton Park Buyout Agreement (as defined in the LLC
Agreement (as defined below)), (2) commence the Company’s (or its successor-in-interest’s) proposed
U.S. distribution business and (3) otherwise provide for the operating needs of the Company or its
successor-in-interest; and (b) “Securities Purchase Agreement” means that certain
Securities Purchase Agreement, dated as of June 27, 2007 (as amended, restated, supplemented or
otherwise modified from time to time, including pursuant to that certain Forbearance Agreement and
Amendment to Securities Purchase Agreement and Other Note Documents dated as of September 2, 2009,
as amended to date), by and among the Company, the Operating Company (as defined below), Union
Bank, N.A., in its capacity as collateral agent for the Holders, and the Holders (as defined
therein).

     2. Position, Duties, and Responsibilities.

          a. President of Production. During the Engagement Term, the Executive shall be
President of Production of the Company and the Company’s wholly-owned Subsidiary, The Film
Department LLC (the “Operating Company”). In such capacity, the Executive shall have the
powers and authorities of a president of production as customarily exercised by comparable
companies in the independent film industry, and shall be responsible for the day-to-day business
and operations of the production efforts on behalf of the Company and its Subsidiaries. The
Executive shall report directly to the Chief Executive Officer (the “CEO”) and President &
Chief Operating Officer (the “President & COO”) of the Company.

          b. Hierarchy. The Executive shall be the highest ranking production executive at the
Company and its Subsidiaries during the Engagement Term.

          c. Greenlight Committee. At all times during the Engagement Term, Executive shall be
a member of the Greenlight Committee of the Company (as defined in the Company’s Second Amended and
Restated Limited Liability Company Agreement, dated as of December 1, 2009 (the “LLC
Agreement”)).

          d. Performance of Duties. During the Engagement Term, the Executive shall devote all
of his working and business time, attention and energies to performing his duties hereunder. The
Executive shall perform his duties and obligations hereunder diligently, faithfully, competently
and to the best of his abilities in furtherance of the business of the Company, and in accordance
with the highest ethical and professional standards.

          e. Competition.

          (i) During the Engagement Term and for any applicable Severance Period (as defined
below) for which the Lender or the Executive are being compensated

2

 

by the Company (including pursuant to Section 8(c) or Section 8(d)),
neither the Lender nor the Executive shall, directly or indirectly, in any city, town,
county, parish or other municipality in any state of the United States (the names of each
such city, town, parish, or other municipality, including, without limitation, the name of
each county in the State of California, being expressly incorporated by reference herein),
or any other place in the world, where the Company, any of the Subsidiaries, or any of their
successors or assigns, engages or proposes to engage in the Business (as defined in the LLC
Agreement) or any other business then contemplated, engaged in by the Company or any
Subsidiary (the “Competitive Business”), engage or in any way become interested in
any person or entity that engages in any capacity, including, without limitation, as an
individual, partner, shareholder, owner, member, principal, joint venturer, officer,
director, agent, employee, independent contractor, trustee, advisor, representative,
consultant or otherwise, in the Competitive Business; provided however, that the
Lender and/or the Executive may (i) continue to maintain a passive involvement in the
projects described on Exhibit A attached hereto (i.e., no services to be provided or
other activities to be undertaken by the Lender and/or the Executive with respect to such
matters; rather Lender and/or the Executive solely will be receiving credit and collecting
fees for services previously provided or activities previously undertaken) and the Company
shall have no right to the compensation, if any, payable to Lender and/or the Executive in
connection with the fulfillment of such obligations or to reduce any compensation payable
hereunder, (ii) serve as an officer or director of, or otherwise participate in,
educational, welfare, social, religious and civic organizations, (iii) deliver lectures or
fulfill speaking engagements, or (iv) manage personal investments (provided that the
Executive shall not manage actively any personal investments in any person or entity in the
entertainment industry or related to the Competitive Business or that is or may be directly
or indirectly competitive with the Company or any Subsidiary), in each case under this
Section 2(e)(i) as long as such activities do not in any way interfere with the
performance of the Executive’s duties or obligations hereunder.

          (ii) No provision of this Agreement shall be construed to prohibit the Lender’s and/or
the Executive’s acquisition, ownership, or trading of a passive, noncontrolling interest of
less than five percent (5%) of the issued and outstanding publicly traded stock of such
entity.

          f. Nonsolicitation. At all times during the Engagement Term and for a period of two
(2) years after termination of this Agreement for any reason (including for purposes of this
Agreement the expiration of the Engagement Term), neither the Lender nor the Executive shall,
directly or indirectly, without first acquiring the prior written consent of the Company, solicit,
induce, or attempt to solicit or induce any officer, director, employee, member, agent, advisor,
representative or consultant of the Company or any Subsidiary to terminate his, her or its
employment or other relationship with the Company or any Subsidiary for any reason whatsoever,
including, without limitation, for the purpose of associating with any competitor of the Company or
any Subsidiary or otherwise encourage any such person or entity to leave, sever or otherwise change
his, her or its employment or other relationship with the Company or any Subsidiary.

3

 

          g. Noninterference. During the Engagement Term and for a period of two (2) years
after the termination of this Agreement for any reason, neither the Lender nor the Executive shall,
directly or indirectly, solicit, induce, or attempt to solicit or induce any customers, clients,
vendors, suppliers or consultants of, or others having a business relationship with, the Company or
any Subsidiary to terminate or change his, her or its relationship with the Company or any
Subsidiary, for any reasons whatsoever, including, without limitation, for the purpose of
associating with any competitor of the Company or any Subsidiary or otherwise encourage such
customers, clients, vendors, suppliers or consultants of the Company or any Subsidiary to
terminate, sever or change his, her or its relationship with the Company or any Subsidiary for any
reason.

          h. Rights and Remedies upon Breach. If the Lender or the Executive breaches any of
the provisions of Sections 2(e), (f) or (g) above (the “Restrictive Covenants”),
the Company and any Subsidiary shall have the following rights and remedies, each of which shall be
independent of the others and severally enforceable, and each of which shall be in addition to, and
not in lieu of, any other rights or remedies available to the Company or any Subsidiary:

          (i) Specific Performance. The right and remedy to have the Restrictive
Covenants specifically enforced by any court of competent jurisdiction by injunctive decree
or other equitable relief without the obligation to post a bond or other security or proving
damages, it being agreed that any breach of the Restrictive Covenants would cause
irreparable injury to the Company and any Subsidiary and that money damages would not
provide an adequate remedy to the Company or any Subsidiary.

          (ii) Modification by the Court. If any court determines that any of the
Restrictive Covenants, or any part thereof, is illegal, invalid or unenforceable because of
the duration, scope or territorial restrictions of such provision or otherwise, such court
shall have the power (and is hereby instructed by the parties) to reduce the duration, scope
or territorial restrictions of such provision or otherwise modify the Restrictive Covenants,
as the case may be (it being the intent of the parties that any such reduction or
modification be limited to the minimum extent necessary to render such provision legal,
valid and enforceable), so that, in its reduced or modified form, such provision shall then
be legal, valid and enforceable.

          (iii) Enforceability in Jurisdictions. The Lender and the Executive intend to
and hereby confers jurisdiction to enforce the Restrictive Covenants, by seeking appropriate
injunctive relief in accordance with this Section 2(h) upon the courts of any
jurisdiction within the geographic scope of such covenants.

          i. Credits. In connection with the exhibition and exploitation of any film developed,
produced or marketed by the Company or any Subsidiary, the Company and any such Subsidiary will use
commercially reasonable efforts to obtain two (2) producer credits and one (1) executive producer
credit. For any film in which such credits are secured, each of the Executive and the CEO shall
each receive a “produced by” credit for such film and the President & COO shall receive an
“executive produced by” credit for such film. For any film in which the Company or any Subsidiary
is not able to secure any “produced by” credits, the Company or any such Subsidiary shall require
that each of the CEO, the President & COO and the Executive are

4

 

provided with an “executive produced by” credit. For any film in which the Company or any
Subsidiary is only able to secure one (1) “produced by” credit, the CEO shall receive such credit
and each of the President & COO and the Executive shall receive an “executive produced by” credit.

     3. Location of Engagement; Transportation. During the Engagement Term, the Executive
shall perform his services to the Company in the Los Angeles, California area (to be headquartered
at a specific location to be determined in accordance with the LLC Agreement), subject to the
travel needs of the Company’s business consistent with the policies and practices of the Company,
for which travel air transportation, hotel accommodations, ground transportation to and from all
such locations, a full size rental car, and a per diem (in lieu of reimbursements of actual
expenses) to be negotiated in good faith (all of the foregoing to be reasonable “business class”)
will be provided by the Company at its cost and expense.

     4. Compensation.

          (a) Compensation. During the Engagement Term, the Company shall pay or cause to be
paid to the Lender an annualized base compensation of $432,000 (the “Base Compensation”)
for the services of the Executive. The Base Compensation may be increased from time to time as
determined by the Chief Executive Officer and President & Chief Operating Officer of the Company in
their sole and absolute discretion (as adjusted, the “Compensation”); provided, however, in
the event that the Company or its successor-in-interest consummates an Equity Transaction on or
prior to April 1, 2010, then the Base Compensation shall be increased to (i) $482,000 during the
period commencing August 1, 2011 and ending July 31, 2012 (and in the event that the Company awards
a Bonus (as defined below) to the Lender during such period, then the first $50,000 of such Bonus
shall be deemed to have been paid to the Lender as part of its Base Compensation and the Lender
shall only receive a Bonus to the extent that such Bonus exceeds $50,000) and (ii) $532,000 during
the period commencing August 1, 2012 and ending July 31, 2013 (and in the event that the Company
awards a Bonus to the Lender during such period, then the first $50,000 of such Bonus shall be
deemed to have been paid to the Lender as part of its Base Compensation and the Lender shall only
receive a Bonus to the extent that such Bonus exceeds $50,000). During the Engagement Term, the
Compensation shall be payable in equal installments in accordance with the Company’s then current
normal payroll practices and procedures for salaried employees, but no less frequently than twice
per month, less any deductions, withholdings and offsets required by law, rule or regulation or
otherwise authorized by the Lender.

          (b) Bonuses. The Company shall pay the Lender such bonus compensation, if any, as the
Chief Executive Officer and President & Chief Operating Officer of the Company may determine is
appropriate from time to time in its sole and absolute discretion (in each case, a
“Bonus”). In the event that the Company or its successor-in-interest consummates an Equity
Transaction on or prior to April 1, 2010, the Company will devise and implement a bonus
compensation plan that will provide for the following: (i) an annual review of Executive’s
performance by the Company and its Compensation Committee, (ii) the establishment of objective
targets relating to profitability and other customary benchmarks, and (iii) an acknowledgement that
although profitability of the Company is unlikely in the initial two years after the date of the
Equity Transaction due to current motion picture industry accounting

5

 

practices, the Company will nevertheless consider granting appropriate bonuses to senior
management provided the Company is meeting its goals as outlined in the Business Plan (as defined
in the LLC Agreement) with regard to, at a minimum, the number of motion pictures produced and the
commercial success thereof.

          (c) Units. Pursuant to the LLC Agreement, the Lender is the record holder of 484.75
Class H Units in the Company (“Class H Units”). The Class H Units shall vest in equal
annual installments of twenty percent (20%) of such Class H Units per year at the close of business
on each anniversary of the Restatement Date (as defined in the LLC Agreement) (commencing on the
first (1st) anniversary of the Restatement Date) until fully vested on the fifth (5th) anniversary
of the Restatement Date, and shall accelerate and vest in full upon a Company Liquidity Event (as
defined in the LLC Agreement) that occurs while the Lender is still providing the services of the
Executive in accordance with this Agreement; provided, however, that vesting shall cease if the
Lender’s engagement by the Company terminates for any reason and all Class H Units which are not
vested at such time shall be immediately and automatically redeemed by the Company on the date that
Lender’s engagement terminated for no additional consideration other than the mutual agreements set
forth herein and in the LLC Agreement and with no further action required by the parties to effect
such redemption.

          (d) Stock Options/Grant. In the event that the Company or its successor-in-interest
consummates an Equity Transaction on or prior to April 1, 2010 and the Company or its
successor-in-interest adopts a stock option plan for the benefit of management, then the Company or
its successor-in-interest shall promptly grant to Executive twelve percent (12%) of the total
employee stock options pool or common stock pool authorized under such plan and subject to the
other terms and conditions of such plan (the “Stock Options”), which Stock Options shall
vest as follows: (i) 20% of the Stock Options shall vest on the first anniversary of the grant
date, (ii) 20% of the Stock Options shall vest on the second anniversary of the grant date,
(iii) 20% of the Stock Options shall vest on the third anniversary of the grant date, (iv) 20% of
the Stock Options shall vest on the fourth anniversary of the grant date and (v) the remaining 20%
of the Stock Options shall vest on the fifth anniversary of the grant date; provided, however, that
vesting shall cease if the Executive’s employment terminates for any reason and for such other
reasons as may be set forth in the stock option plan.

          (e) Tax Consequences. The Lender and the Executive have reviewed with their own tax
advisors the tax consequences of this Agreement. The Lender and the Executive are relying solely
on such advisors and not on any statements or representations of the Company or any of its agents.
The Lender and the Executive understand that the Lender and the Executive (and not the Company)
shall be responsible for the Lender’s and the Executive’s own tax liability that may arise as a
result of the transactions contemplated by this Agreement. Within 30 days from the date of grant
of the Class H Units, the Lender and the Executive will file an election under Section 83(b) of the
Internal Revenue Code with the Internal Revenue Service and will deliver a copy of such election to
the Company.

     5. Expenses. The Company shall reimburse the Lender and the Executive for all
reasonable business expenses incurred by the Lender or the Executive during the Engagement Term in
the performance of the Executive’s services pursuant to this Agreement and consistent with the
policies and practices of the Company. The Company shall make reimbursement within

6

 

a reasonable time following the Lender’s, or the Executive’s, presentation of expense
statements, vouchers, receipts, and such other supporting information as the Company reasonably may
require from the Lender or the Executive. The Lender and the Executive acknowledge that the
Company’s policies and practices regarding the documentation of expenses for which reimbursement is
sought may change from time to time, and the Lender and the Executive agree that they will comply
with all such documentation requirements.

     6. Benefits.

          a. The Executive, and the Executive’s dependents, shall be eligible to participate in any
group life insurance, hospitalization, medical, health and accident, dental, disability, or similar
plan or program generally made available by the Company to its most senior executives.

          b. The Executive shall be eligible to participate in all savings, retirement and similar plans
generally made available by the Company to its most senior executives. Such plans include a 401(k)
plan and a defined contribution pension plan where the aggregate costs of all such plans, including
administration thereof, do not exceed the Internal Revenue Code safe harbor for any applicable
year.

          c. The Executive shall be entitled to two (2) weeks of paid vacation during each full year of
the Engagement Term, in accordance with the accrual methodology and vacation-day accrual
limitations in the vacation leave policy adopted and approved by the Company for its employees.
The Executive may observe the legal and other holidays recognized by the Company, and religious
holidays that the Executive deems appropriate, in the sound exercise of his business judgment.

     7. Confidential Information. The Lender and the Executive acknowledge that the
Executive’s engagement to provide services to the Company will result in the Lender or the
Executive having access to confidential or proprietary information (whether in oral, written,
electronic or other format) regarding the affairs, trade secrets, operations, results of
operations, business and prospects of the Company and its Subsidiaries (the “Confidential
Information”). Examples of Confidential Information include, without limitation, information
regarding business plans, marketing plans, financial information, acquisition information,
distribution information, licensing information, personnel information, scripts, ideas for
projects, motion pictures, processes, know-how, trade secrets, formulas, litigation, operations,
methods, pricing information, costs, marketing data, procedures, customer lists, customer
information, development activities and technical data and other information. The Lender and the
Executive acknowledge that the improper use or disclosure of Confidential Information would have a
material adverse effect on the Company and/or its Subsidiaries, including, without limitation,
their operations, financial performance, development of their business and prospects. The Lender
and the Executive therefore covenant and agree as set forth below:

          a. The Lender and the Executive shall keep secret and confidential all Confidential
Information, and shall not disclose, divulge or otherwise use any Confidential Information other
than for the benefit of the Company in connection with the Executive’s proper performance of his
duties under and pursuant to this Agreement, except with the prior written consent of the CEO or
the President & COO; provided that (i) during the Engagement Term the

7

 

Lender and the Executive may use and disclose the Confidential Information as reasonably
necessary in the performance of the Executive’s duties and responsibilities under this Agreement
and for the benefit of the Company in the reasonable and good faith exercise of his power and
authority pursuant to this Agreement, (ii) the Lender and the Executive shall have no such
obligation to the extent Confidential Information is or becomes publicly known, other than as a
result of the Lender’s or the Executive’s breach, directly or indirectly, of their obligations
hereunder; and (iii) the Lender or the Executive may, after giving prior written notice to the
Company, disclose such matters to the extent required by applicable laws or governmental
regulations or judicial or regulatory process (by oral questions, interrogatories, requests for
information or documents, subpoena, civil investigative demand or similar process); provided,
however, that if the Lender or the Executive is so requested to disclose any Confidential
Information pursuant to the foregoing clause (iii), Lender and the Executive agree to provide the
Company with prompt prior written notice, if not precluded by applicable law, in reasonable detail
of each such request so that the Company may seek an appropriate protective order; provided,
further, that if, absent the entry of a protective order or the receipt of a waiver under this
Agreement, the Lender or the Executive is, in the reasonable opinion of its counsel, legally
compelled to disclose such Confidential Information under pain of liability for contempt or other
censure or penalty (civil or criminal), the Lender or the Executive may disclose such information
to the governmental entity to the extent required without liability under this Agreement. In such
event, the Lender and the Executive shall exercise their reasonable commercial efforts to obtain
reliable assurances that confidential treatment will be accorded any such Confidential Information
so disclosed.

          b. The Lender and the Executive shall deliver to the Company at its principal executive
offices at the termination of this Agreement (including at the end of the Engagement Term), or at
any other time the Company may so request, (i) all memoranda, notes, records, reports, and other
documents and information (including, without limitation, drafts, whole or partial copies, and
information stored or maintained electronically, magnetically, in a computer, or through any other
medium currently existing or invented in the future) relating to, discussing or containing any
portion of the business of the Company or any Confidential Information and which they may then
possess or have under their direct or indirect control, excluding any documents dealing with
Lender’s or Executive’s rights under this Agreement, any other agreement or any benefit plan in
which Lender or Executive participates and (ii) all of the Company’s and any Subsidiary’s property
and equipment (including, without limitation, any cell phones, pagers, credit cards, computers,
etc.).

          c. The Lender’s and/or the Executive’s duties may require entry into confidentiality
agreements, nondisclosure agreements, or comparable agreements with third parties, and a third
party may require the Lender’s or the Executive’s entry into such an agreement(s) personally and on
behalf of the Company. In any such event, the Lender and the Executive agree to engage in
reasonable efforts to perform any such agreement.

     8. Termination.

          a. Definitions. The following definitions shall apply to the use of such terms in
this Agreement:

8

 

          (i) “Cause” means:

                    (1) the Lender’s or the Executive’s willful malfeasance, gross negligence or gross or willful
misconduct in the performance of the duties or responsibilities of his position with the Company or
any Subsidiary in accordance with this Agreement;

                    (2) the Lender’s or the Executive’s failure to timely carry out any reasonable lawful
directive prescribed by the CEO or the President & COO in accordance with this Agreement and the
LLC Agreement other than any such failure resulting solely from Executive’s Disability;

                    (3) the Lender’s or the Executive’s misappropriation of any funds or property of the Company
or any Subsidiary or the commission by Executive of an act of fraud or material dishonesty;

                    (4) reasonable evidence (as determined in good faith by the CEO or the President & COO) to
indicate that the Lender or the Executive has committed any felony;

                    (5) acting in any way (including any act of moral turpitude) that has or is reasonably likely
to have a material adverse effect on the Company’s or any Subsidiary’s business, operations,
results of operation, prospects or reputation;

                    (6) the improper disclosure, divulging or use by the Lender or the Executive of any
Confidential Information in violation of any confidentiality or proprietary agreement or obligation
to which the Lender or the Executive is a party or bound (including Section 7 hereof);

                    (7) use of illegal drugs or improper use of alcohol, during work hours, being under the
influence of illegal drugs or excessive alcohol during work hours or, subject to applicable federal
or state law, chronic alcoholism or drug addiction (which shall not include the proper use of
lawfully prescribed drugs); or

                    (8) any other material violation of any material provision of this Agreement;

provided, that with respect to any violation of Section (2) or (8) that is
reasonably subject to cure, the Lender and the Executive shall have the right, within thirty
(30) days after receipt of notice from the Company, to cure such event or circumstance
giving rise to the violation, in the event of which such event or circumstance shall be
deemed to not constitute Cause hereunder.

In the event that the Lender and the Executive fail to cure the events and/or circumstances
giving rise to Cause as described above, the Company agrees that each of the following must
occur before the Company may assert the existence of Cause under Section (2) or (8)
above: (A) the Company must provide written notice to the Lender and the Executive, with
reasonable detail, of the matter(s) giving rise to the notice; and (B) the Lender and the
Executive must have the opportunity to respond in writing to the written notice, with the
assistance of any counsel deemed appropriate by the Lender and

9

 

the Executive (at the Lender’s and the Executive’s expense), not later than ten (10) days
after delivery of the written notice; and (C) the Company must provide the Lender and the
Executive, if requested in the written response to the written notice contemplated above,
the opportunity to address the CEO and President & COO during a confidential meeting to be
held as soon as reasonably practicable after the request; provided, however, that the
Company may assert the existence of Cause under Section (2) or (8) above upon the
earlier of the completion of the foregoing procedures or the Lender’s and the Executive’s
failure to provide a written response or orally present their position at a meeting with the
CEO and President & COO within the time periods described above (the foregoing shall
collectively be referred to herein as, the “Cause Determination Procedure”).

          (ii) “Constructive Termination without Cause” means the termination of the
Lender’s engagement to provide the Executive’s services to the Company pursuant to this
Agreement at the Lender’s initiative, after one or more of the following events, but within
ninety (90) days of the occurrence thereof, in any case where no Cause exists and after the
Lender provides written notice to the Company, with reasonable detail, of the matter:

                    (1) a reduction in the Compensation or the uncured material violation by the Company of any
provision of this Agreement;

                    (2) any material diminution in the duties, authority, responsibilities, or positions of the
Executive from that specified in this Agreement; or

                    (3) the assignment to the Executive of duties or responsibilities that are materially
inconsistent or different from those set forth herein (excluding an isolated and inadvertent action
by the Company not taken in bad faith and which is remedied by the Company promptly after receipt
by the Company of written notice from the Lender or the Executive specifying in reasonable detail
the applicable action);

provided, that with respect to any violation or event that is reasonably subject to
cure, the Company shall have the right, within thirty (30) days after receipt of notice, to
cure such event or circumstance giving rise to the violation, in the event of which such
event or circumstance shall be deemed to not constitute Constructive Termination without
Cause.

“Disability” means the inability of the Executive to perform the essential functions
of his position in accordance with this Agreement with or without reasonable accommodation
on account of mental or physical disability, illness or other incapacity for (a) sixty (60)
consecutive days, or (b) any one hundred twenty (120) days in any three hundred sixty (360)
day period, it being understood and agreed that the Executive’s continuous and sustained
participation in the operation of the Company and presence at work is an essential function
of the job.

10

 

          b. Termination by the Company for Cause or by the Lender other than upon Constructive
Termination without Cause.

          (i) The Executive’s engagement to provide services to the Company on behalf of the
Lender pursuant to this Agreement may only be terminated for Cause by the Company in
compliance with the Cause Determination Procedure.

          (ii) If the Company terminates this Agreement for Cause or the Lender terminates this
Agreement other than upon Constructive Termination without Cause, (x) on the date of such
termination, the Lender shall be paid all earned but unpaid Compensation or Bonus, together
with accrued, but unused, vacation pay (as determined in accordance with the Company’s then
current policy on vacation accrual) through the date of termination, and any other benefits
accrued through the date of termination pursuant to the terms of this Agreement and (y) the
Lender shall retain all of the Class H Units initially issued to, or owned of record or
beneficially by, the Executive, the Lender or any Affiliate (as defined in the LLC
Agreement) of either of the foregoing (the “Lender’s Units”) that have vested prior
to the date of termination (subject to Section 8(e)). The Company shall also
reimburse the Lender and the Executive in accordance with Section 5 hereof for
expenses incurred prior to the date of termination which are otherwise reimbursable but
which have not then been reimbursed pursuant to Section 5 hereof.

          c. Termination by the Company without Cause or by the Lender for Constructive Termination
without Cause. In the event the Executive’s engagement to provide services to the Company on
behalf of the Lender pursuant to this Agreement is terminated by the Company without Cause, or by
the Lender for Constructive Termination without Cause, the Lender or the Executive, as the case may
be, shall be entitled to the following:

          (i) to be paid on the date of termination, earned but unpaid Compensation and Bonus,
together with accrued but unused, vacation pay (as determined in accordance with the
Company’s then current policy on vacation accrual) through the date of termination;

          (ii) to reimbursement in accordance with Section 5 hereof of the expenses
incurred prior to the date of termination which are otherwise reimbursable but which have
not been reimbursed pursuant to Section 5 hereof;

          (iii) to be paid the cash equivalent of the Compensation (the “Compensation
Payment”) for the lesser of (x) twenty-four (24) months or (y) the unexpired portion of
the Engagement Term as if the Engagement Term had not been terminated (the “Severance
Period”), with the pro rata equivalent of the Compensation Payment, subject to
Section 11(p) herein, payable by the Company to the Lender in accordance with the
Company’s then current normal payroll practices, but not less frequently than twice per
month, and the Executive and the Executive’s family, as applicable, shall also continue, for
the Severance Period, to be entitled to the continuation of all benefits set forth in
Section 6(a) hereof; and

11

 

          (iv) to retain that number of the Lender’s Units that have vested prior to the date of
notice of such termination.

          d. Death and Disability. This Agreement shall automatically terminate upon the death
of the Executive and may be terminated by the Company in the event of the Disability of the
Executive. In the event that this Agreement is terminated due to the death or Disability of the
Executive, the Lender or the Executive’s estate, as the case may be, shall be entitled to receive
in full satisfaction of all obligations due to the Lender and the Executive from the Company
hereunder,

          (i) all earned but unpaid Compensation and Bonus, together with accrued, but unused,
vacation pay (as determined in accordance with the Company’s policy on vacation accrual)
through the date of termination payable promptly after termination;

          (ii) reimbursement in accordance with Section 5 hereof of expenses incurred
prior to the date of termination which are otherwise reimbursable but which have not been
reimbursed pursuant to Section 5 hereof;

          (iii) an amount equal to the lesser of (x) three (3) months’ Compensation or (y) the
unexpired portion of the Engagement Term as if the Engagement Term had not been terminated,
with the pro rata equivalent thereof, subject to Section 11(p) hereof, payable by
the Company to the Lender in accordance with the Company’s then current normal payroll
practices, but no less frequently than twice per month; and

          (iv) retain that number of the Lender’s Units that have vested prior to the date of
such termination (subject to Section 8(e)).

          e. Repurchase Right. If termination of the engagement occurs pursuant to Section
8(b) or 8(d), the Company shall have the right, but not the obligation, to purchase for cash
all, but not part, of the vested units of the Lender’s Units (the “Retained Units”) at the
fair market value of such Retained Units as of the date of a notice to the Lender exercising such
right; provided, however, that the exercise of such right and the delivery of such notice may only
occur within the six (6) month period immediately following the date of termination. The fair
market value of the Retained Units shall be determined as of the date of such exercise notice based
upon the amounts payable with respect to the Class H Units, as applicable, pursuant to the
distribution waterfall in Section 7.4(a) of the LLC Agreement. The Lender and the Company
shall negotiate in good faith to determine such fair market value. If they are unable to agree on
such fair market value within thirty (30) days of such termination, such fair market value shall be
determined in accordance with Sections 5.5(a)(i), (a)(ii), (b) and (c) of the LLC Agreement
with appropriate usage of parties and similar concepts to reflect the application thereof to the
repurchase right versus a put right.

     9. Indemnification. Except as otherwise required by applicable law or as provided in
this Agreement, the Company shall indemnify and hold harmless the Lender and the Executive from and
against all liabilities, judgments, losses (including amounts paid in

12

 

settlement), costs, damages and expenses (including all reasonable legal or other expenses
incurred in investigating or defending against any such liability, judgment, loss, cost, damage or
expense) actually incurred by the Lender or the Executive by reason of any act or omission or any
alleged act or alleged omission performed or omitted by the Lender or the Executive (including
those in connection with serving as officers or on boards of directors of the Company or for any
Subsidiary or affiliate of the Company) so long as the Lender and the Executive shall have acted in
good faith on behalf of the Company and in a manner reasonably believed to be within the scope of
authority conferred on the Lender or the Executive by or pursuant to this Agreement, except that
the Lender and the Executive shall not be entitled to be indemnified in respect of any liability,
loss, cost, damage or expense incurred by the Lender or the Executive by reason of fraud, gross
negligence or willful misconduct. The rights granted pursuant to this Section 9 shall be
deemed contract rights, and no amendment, modification or repeal of this Section 9 shall
have the effect of limiting or denying any such rights with respect to actions taken or
proceedings, appeals, inquiries or investigations arising prior to any amendment, modification or
repeal. To the fullest extent permitted by applicable law, expenses (including reasonable legal
fees) incurred by the Lender or the Executive in defending any claim, demand, action, suit or
proceeding shall promptly, from time to time, be advanced by the Company prior to the final
disposition of such claim, demand, action, suit or proceeding upon receipt by the Company of an
undertaking by or on behalf of the Lender and the Executive to repay such amount if it shall be
determined that the Lender or the Executive is not entitled to be indemnified as authorized in
Section 9 hereof. The rights set forth in this Section 9 are in addition to, and
not in lieu of, any indemnification rights of the Lender or the Executive set forth in the LLC
Agreement; provided that in no event shall the Lender or the Executive receive or be entitled to
duplicative indemnification. The indemnification obligations set forth in this Section 9
shall survive the termination of this Agreement and the Engagement Term for any reason.

     10. Assignment of Intellectual Property Rights.

          a. Definition of “Intellectual Property”; Certain Limitations.

          (i) As used herein, the term “Intellectual Property” shall mean all software,
inventions, discoveries, processes, know-how, plans, procedures, formula, trade secrets,
methods, artistic or creative materials (including, without limitation, concepts, scripts,
ideas for projects, motion pictures and development materials), service marks, designs,
licenses, logos, proprietary or technical information and all other intellectual property of
any nature and in any media, including works-in-progress, whether or not subject to patent,
trademark, tradename, tradedress, copyright, trade secret, or mask work protection, and
whether or not reduced to practice, which are made, created, authored, conceived, or reduced
to practice by the Lender or the Executive, either alone or jointly with others, during the
period of engagement by the Company which (x) relate, to any extent, to the past, actual or
planned business or activities of the Company or any Subsidiary, (y) result from or is
suggested by, to any extent, work performed by the Lender or the Executive for the Company
or any Subsidiary (whether or not made or conceived during normal working hours or on the
premises of the Company) or (z) which result, to any extent, from use of the premises or
property of the Company.

13

 

          (ii) The Company hereby notifies the Lender and the Executive that the provisions of
this Section 10 do not apply to any Intellectual Property for which no equipment,
supplies, facilities or trade secret information of the Company was used and which was
developed entirely on the Lender’s or the Executive’s own time, unless (x) such Intellectual
Property relates to the past, actual or planned business or activities of the Company,
including, without limitation, research and development or (y) such Intellectual Property
results in any way from any work performed by the Executive for the Company.

          b. Work for Hire. Except as provided in Section 10(a)(ii) above, the Lender
and the Executive expressly acknowledge that all copyrightable aspects of the Intellectual Property
are to be considered “works made for hire” within the meaning of the Copyright Act of 1976, as
amended (the “Act”), and that the Company is to be the “author” within the meaning of such
Act for all purposes. All such copyrightable works, as well as all copies of such works in
whatever medium fixed or embodied, shall be owned exclusively by the Company as of its creation,
and the Lender and the Executive hereby expressly disclaim any and all interest in any of such
copyrightable works.

          c. Assignment. The Lender and the Executive acknowledge and agree that all
Intellectual Property constitutes trade secrets of the Company (other than any Intellectual
Property described in clause (ii) of Section 10(a)) and shall be the sole property of the
Company or any other entity designated by the Company. In the event that title to any or all of
the Intellectual Property, or any part or element thereof, may not, by operation of law, vest in
the Company, or such Intellectual Property may be found as a matter of law not to be “works made
for hire” within the meaning of the Act, the Lender and the Executive hereby convey and irrevocably
assign to the Company, without further consideration, all of their right, title and interest,
throughout the universe and in perpetuity, in all Intellectual Property and all copies thereof, in
whatever medium fixed or embodied, and in all written records, graphics, diagrams, notes, or
reports relating thereto in the Lender’s or the Executive’s possession or under their control,
including, with respect to any of the foregoing, all rights of patent, trademark, tradename,
tradedress, copyright, trade secret, mask work, and any and all other proprietary rights therein,
the right to modify and create derivative works, the right to invoke the benefit of any priority
under any international convention, and all rights to register and renew same.

          d. Proprietary Notices; No Filings; Waiver of Moral Rights. The Lender and the
Executive acknowledge that all Intellectual Property shall, at the sole option of the Company, bear
the Company’s patent, copyright, trademark, trade secret, mask work and other proprietary rights
notices. The Lender and the Executive agree not to file any patent, copyright, or trademark
applications relating to any Intellectual Property, except with prior written consent of an
authorized officer of the Company (other than the Executive). The Lender and the Executive hereby
expressly disclaim any and all interest in any Intellectual Property and waive any right of droit
morale or similar rights, such as rights of integrity or the right to be attributed as the creator
of any Intellectual Property.

          e. Further Assurances. The Lender and the Executive agree to assist the Company, or
any party designated by the Company, promptly on the Company’s request, whether before, during or
after the termination of engagement with the Company, in perfecting,

14

 

registering, maintaining, and enforcing, in any jurisdiction, the Company’s rights in the
Intellectual Property by performing all acts and executing all documents and instruments deemed
necessary or convenient by the Company, including, by way of illustration and not limitation:

          (i) Executing assignments, applications, and other documents and instruments in
connection with (x) obtaining patents, copyrights, trademarks, mask works, or other
proprietary protections for the Intellectual Property and (y) confirming the assignment to
the Company of all right, title, and interest in the Intellectual Property or otherwise
establishing the Company’s exclusive ownership rights therein; and

          (ii) Cooperating in the prosecution of patent, copyright, trademark and mask work
applications, as well as in the enforcement of the Company’s rights in the Intellectual
Property, including, but not limited to, testifying in court or before any patent,
copyright, trademark or mask work registry office or any other administrative body.

     The Lender and the Executive shall be reimbursed for all reasonable out-of-pocket costs
incurred in connection with the foregoing if such assistance is requested by the Company after the
termination of the Executive’s engagement.

          f. Disclosure of Intellectual Property. The Lender and the Executive shall make full
and prompt disclosure to the Company on a continuing basis of all Intellectual Property subject to
assignment by the Lender and the Executive to the Company.

     11. General.

          a. Notices. All notices, requests and other communications hereunder must be in
writing and shall be deemed to have been duly given only if delivered personally, by facsimile
transmission or certified mail (first class postage prepaid) return receipt requested, or
nationally recognized overnight delivery service with proof of receipt maintained, to the parties
at the following addresses or facsimile numbers:

     If to the Company, to:

The Film Department Holdings LLC

8439 Sunset Boulevard, Second Floor

West Hollywood, California 90069

Facsimile: (866) 311-4894

			
	          Attn:	 	Mark Gill, CEO

Neil Sacker, President & COO

15

 

     If to the Lender or the Executive, to:

Robert Katz

2206 5th St.

Santa Monica, California 90405

All such notices, requests and other communications shall (a) if delivered personally to the
address as provided in this Section, be deemed given upon delivery, (b) if delivered by facsimile
transmission to the facsimile number as provided in this Section, be deemed given on the first
business day following confirmation, (c) if delivered by nationally recognized overnight delivery
service in the manner described above to the address as provided in this Section, be deemed
received the first business day after the business day sent, and (d) if delivered by mail in the
manner described above to the address as provided in this Section, be deemed given upon the earlier
of actual receipt or seven (7) business days after deposit in the mail (in each case regardless of
whether such notice, request or other communication is received by any other Person to whom a copy
of such notice is to be delivered pursuant to this Section). Any party from time to time may
change its address, facsimile number or other information for the purpose of notices to that party
by giving notice specifying such change to the other parties hereto.

          b. Entire Agreement. This Agreement sets forth the entire understanding of the
parties with respect to the subject matter hereof; supersedes in its entirety the Original
Agreement and all other existing agreements between them concerning such subject matter, and may be
modified only by a written instrument duly executed by each party.

          c. Waiver. Any term or condition of this Agreement may be waived at any time by the
party that is entitled to the benefit thereof, but no such waiver shall be effective unless set
forth in a written instrument duly executed (with respect to the Company, after due authorization
by the CEO or the President & COO) by or on behalf of the party waiving such term or condition. No
waiver by any party of any term or condition of this Agreement, in any one or more instances, shall
be deemed to be or construed as a waiver of the same or any other term or condition of this
Agreement on any future occasion. All remedies, either under this Agreement or by law or otherwise
afforded, shall be cumulative and not alternative.

          d. Amendment. This Agreement may be amended, supplemented or modified only by a
written instrument duly executed (with respect to the Company, after due authorization by the CEO
or the President & COO) by or on behalf of each party hereto.

          e. No Third Party Beneficiary. The terms and provisions of this Agreement are
intended solely for the benefit of each party hereto and their respective successors or permitted
assigns, and it is not the intention of the parties to confer third-party beneficiary rights upon
any other person.

          f. Headings; Definitional Provisions; etc. The headings used in this Agreement have
been inserted for convenience of reference only and do not define or limit the provisions hereof.
Any reference to the masculine, feminine, or neuter gender shall be a reference to such other
gender as is appropriate. References to the singular shall include the plural and vice versa. The
words “herein” and “hereunder” and words of similar import, when used in this Agreement,

16

 

shall refer to this Agreement as a whole and not to any particular provision of this
Agreement. Whenever the words “include,” “including” or “includes” appear in this Agreement, they
shall be read to be followed by the words “without limitation” or words having similar import.

          g. Invalid Provisions. If any provision of this Agreement is held to be illegal,
invalid or unenforceable under any present or future law, and if the rights or obligations of any
party hereto under this Agreement shall not be materially and adversely affected thereby, (a) such
provision shall be fully severable, (b) this Agreement shall be construed and enforced as if such
illegal, invalid or unenforceable provision had never composed a part hereof, (c) the remaining
provisions of this Agreement shall remain in full force and effect and shall not be affected by the
illegal, invalid or unenforceable provision or by its severance and (d) in lieu of such illegal,
invalid or unenforceable provision, there shall be added automatically as a part of this Agreement
a legal, valid and enforceable provision as similar in terms to such illegal, invalid or
unenforceable provision as may be possible.

          h. Drafting History. In resolving any dispute or construing any provision in the
Agreement, there shall be no presumption made or inference drawn (a) because the attorneys for one
of the parties drafted such provision of the Agreement, (b) because of the drafting history of the
Agreement, or (c) because of the inclusion of a provision not contained in a prior draft or the
deletion of a provision contained in a prior draft. The parties acknowledge and agree that this
Agreement was negotiated and drafted with each party being represented by counsel of its choice and
with each party having an equal opportunity to participate in the drafting of the provisions hereof
and shall therefore be construed as if drafted jointly by the parties.

          i. Arbitration. The Company, on the one hand, and the Lender and the Executive, on
the other hand, agree that, if a dispute arises concerning or relating to this Agreement or the
provision of the Executive’s services hereunder, the dispute shall be submitted to binding
arbitration under the rules of the American Arbitration Association then in effect. The
arbitration shall take place in Los Angeles County, California and all of the parties agree to
submit to the jurisdiction of the arbitrator selected in accordance with the American Arbitration
Association Commercial Rules and procedures. Except for any claims for injunctive relief, the
parties agree that this arbitration procedure shall be the exclusive means of redress for any
disputes relating to or arising from this Agreement between or among the parties, including
disputes over rights provided by federal, state or local statutes, regulations, ordinances and
common law, including all laws that prohibit discrimination based on any protected classification.
The parties expressly waive the right to trial in a court of law, and agree that the arbitrator’s
award shall be final and binding on the parties, and not appealable, subject to manifest error
which can only be corrected by the arbitrator. Each party shall pay for its own costs and
attorneys’ fees related to the arbitration; however, the Company shall pay for all costs that are
unique to the arbitration, including the arbitrator’s fees. If a party prevails on a statutory
claim that affords the prevailing party their attorneys’ fees, or where there is a written
agreement providing for such fees, the arbitrator may award reasonable fees to the prevailing
party. The arbitrator shall have the authority to award any damages authorized by law other than
punitive, consequential or special damages. The parties agree to keep the fact, and results and
findings, of the arbitration confidential (subject to applicable law) and agree to execute all
necessary documents to maintain such confidentiality.

17

 

          j. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of California applicable to a contract executed and performed in such
State without giving effect to the conflicts of laws principles thereof that would result in the
applicability of the laws of another jurisdiction.

          k. Attorneys’ Fees. If any legal action, arbitration or other proceeding is brought
for the enforcement of this Agreement, or because of any alleged dispute, breach, default or
misrepresentation in connection with this Agreement, the successful or prevailing party shall be
entitled to recover reasonable attorneys’ fees and other costs it incurred in that action or
proceeding, in addition to any other relief to which it may be entitled,

          l. Mitigation. The Lender and the Executive shall be obligated to take reasonable
steps to mitigate any damages hereunder including seeking other suitable employment or engagement
of services and taking other reasonable actions by way of mitigation of the amounts payable to the
Lender or the Executive under any provisions of this Agreement, and such amounts otherwise so
payable shall be reduced if the Lender and the Executive obtain other employment or engagement.
The Company’s obligation to make payments provided for in this Agreement and otherwise to perform
its obligations hereunder shall be subject to setoff, counterclaim, recoupment, defense and other
claim, right or action which the Company (or any other party) may have against the Lender, the
Executive or others.

          m. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

          n. Successors and Assigns. This Agreement, and the Lender’s and the Executive’s
rights and obligations hereunder, may not be assigned by the Lender or the Executive and any
prohibited assignment attempted by the Lender or the Executive is void. This Agreement shall be
binding on and enforceable by any successor to the Company, whether by merger, acquisition of
substantially all of the Company’s assets or otherwise, as fully as if such successor was a
signatory hereto and the Company shall cause such successor to, and such successor shall, expressly
assume the Company’s obligations hereunder. Notwithstanding anything else herein contained, the
term “Company” as used in this Agreement, shall include all such successors.

          o. No Conflicting Obligations. The Lender and the Executive affirm that no obligation
of the Lender or the Executive precludes or in the future may preclude the Lender’s or the
Executive’s entry into and full faithful performance of each and all of the Executive’s duties and
obligations under this Agreement.

          p. Section 409A. Unless otherwise expressly provided, any payment of compensation by
the Company to the Lender, whether pursuant to this Agreement or otherwise, shall be made within
two and one-half months (21/2 months) after the later of the end of the calendar year of the
Company’s fiscal year in which the Lender’s right to such payment vests (i.e., is not subject to a
“substantial risk of forfeiture” for purposes of Code Section 409A of the Internal Revenue Code of
1986, as amended (“Code”)). For purposes of this Agreement, termination of the engagement shall be
deemed to occur only upon “separation from service” as

18

 

such term is defined under Code Section 409A. To the extent that any severance payments
(including payments on constructive termination for “good reason”) come within the definition of
“involuntary severance” under Code Section 409A, such amounts up to the lesser of two times the
Lender’s annual compensation for the year preceding the year of termination or two times the
401(a)(17) limit for the year of termination, shall be excluded from “deferred compensation” as
allowed under Code Section 409A, and shall not be subject to the following Code Section 409A
compliance requirements. All payments of “nonqualified deferred compensation” (within the meaning
of Section 409A) are intended to comply with the requirements of Section 409A, and shall be
interpreted in accordance therewith. No party may accelerate any such deferred payment, except in
compliance with Section 409A, and no amount shall be paid prior to the earliest date on which it is
permitted to be paid under Section 409A. In the event that the Executive is a “key employee” (as
defined in Code Section 416(i) without regard to paragraph (5) thereof) of a corporation any stock
of which is publicly traded on an established securities market, payments determined to be
“nonqualified deferred compensation” payable by reason of termination of the engagement shall be
deferred and not paid until the earlier of (i) the last day of the sixth (6th) complete calendar
month following such termination of the engagement, or (ii) the Executive’s death, consistent with
the provisions of Code Section 409A. All expense reimbursement or in-kind benefits provided under
this Agreement or, unless otherwise specified, under any Company program or policy shall be subject
to the following rules: (i) the amount of expenses eligible for reimbursement or in-kind benefits
provided during one calendar year may not affect the benefits provided during any other year; (ii)
reimbursements shall be paid no later than the end of the calendar year following the year in which
the Executive incurs such expenses, and the Executive shall take all actions necessary to claim all
such reimbursements on a timely basis to permit the Company to make all such reimbursement payments
prior to the end of said period, and (iii) the right to reimbursement or in-kind benefits shall not
be subject to liquidation or exchange for another benefit. Notwithstanding anything herein to the
contrary no amendment may be made to this Agreement if it would cause the Agreement or any payment
hereunder not to be in compliance with Section 409A.

[signature page follows]

19

 

     IN WITNESS WHEREOF, the parties have duly executed this Amended and Restated Executive
Services Agreement as of the date first above written.

	 	 	 	 	 
	 	 	COMPANY:
	 
	 	 	 	 
	 	 	THE FILM DEPARTMENT HOLDINGS LI,C
	 
	 	 	 	 
	 

	 	By:	 	/s/ Mark Gill
	 

	 	 	 	 
	 

	 	 	 	Mark Gill, CEO
	 
	 	 	 	 
	 	 	LENDER:
	 
	 	 	 	 
	 	 	CHATEAU HOLDINGS, INC.,
	 
	 	 	 	 
	 

	 	By:	 	/s/ Robert Katz
	 

	 	 	 	 
	 

	 		 	Robert Katz, Chief Executive Officer
	 
	 	 	 	 
	 	 	EXECUTIVE:
	 
	 	 	 	/s/ Robert Katz
	 	 	 
	 	 	ROBERT KATZ

 

 

EXHIBIT A

Pre-Existing Projects

	1.	 	Executive is serving as a producer on the following projects:

	 	 	 	Blue in Green
	 
	 	 	 	Slipstream
	 
	 	 	 	Blackwater Transit
	 
	 	 	 	Ruthless
	 
	 	 	 	Bro
	 
	 	 	 	ABCs of Mr. D

	2.	 	Executive is serving as an executive producer on the following project:

	 	 	 	Crevice

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