Document:

exv10w4

Exhibit 10.4

SUBLEASE AGREEMENT

          This
SUBLEASE AGREEMENT (“Sublease”) is made and entered into as
of the 22nd day of June 2007, by and between Miramax Film Corp., a New York corporation (“Sublandlord”) and
The Film Department, a Delaware LLC (“Subtenant”).

          WHEREAS, Mani Brothers Piazza Del Sol, LLC, a California limited liability company, as
landlord (“Landlord”), and Sublandlord, as tenant (“Tenant”), entered into a lease dated as of
February 14, 2000 (the “Original Lease”), whereby Landlord leased to Tenant the certain premises
(the “Master Premises”) in the building located at 8439 Sunset Boulevard, in West Hollywood, CA
(the “Building”), all as more particularly described in the Master Lease, upon the terms and
conditions contained therein. Such lease was subsequently amended by a First Amendment to Lease,
effective as of September 1, 2000 (the “First Amendment”), a Second Amendment to Lease, effective
as of October 23, 2002 (the “Second Amendment”), and a Third Amendment to lease, effective as of
May 30, 2003 (the “Third Amendment;” the Original Lease, as amended by the First Amendment, the
Second Amendment, and the Third Amendment is referred to herein as the “Master Lease.”) All
capitalized terms used herein shall have the same meaning ascribed to them in the Master Lease
unless otherwise defined herein. A copy of the Master Lease is attached hereto as Exhibit “A” and
made a part hereof.

          WHEREAS, Sublandlord and Subtenant are desirous of entering into a sublease of that portion of
the Master Premises shown cross-hatched in black on the demising plan annexed hereto as Exhibit “B”
and made a part hereof (“Sublease Premises”) on the terms and conditions hereafter set forth.

          NOW, THEREFORE, in consideration of the mutual covenants herein contained, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto mutually covenant and agree as follows:

     1. Demise. Sublandlord hereby subleases and demises to Subtenant and Subtenant hereby
hires and subleases from Sublandlord the Sublease Premises (which the parties stipulate contain
10,317 rentable square feet), upon and subject to the terms, covenants and conditions hereinafter
set forth. Sublandlord and Subtenant acknowledge and agree that the Sublease Premises do not
include the area shown as the “Lan Room” on the attached Exhibit “B;” however, because the Lan Room
is integral to the operation of Sublandlord’s business in the Master Premises, and because the Lan
Room is accessible only from the interior of the Sublease Premises, Sublandlord and Subtenant agree
that Sublandlord hereby reserves the right for its agents and employees to enter into the Sublease
Premises at all times during the Term (defined below) for the purpose of ingress to, and egress
from, the Lan Room. Notwithstanding the foregoing, Sublandlord shall provide Subtenant with at
least twenty-four (24) hours advance notice in the event that Sublandlord intends to enter into the
Sublease Premises; provided, however, that in the event of an emergency, Sublandlord’s agents
and/or employees may enter into the Sublease Premises for the purpose of gaining access to the Lan
Room without such prior notice to Subtenant.

 

 

     2. Lease Term. The term of this Sublease (“Term”) shall commence upon delivery of the
Sublease Premises to Subtenant (the “Sublease Commencement Date”) and ending, unless sooner
terminated as provided herein, on June 30, 2010 (the “Sublease Expiration Date”). Sublandlord
shall promptly notify Subtenant following receipt (if any) of Landlord’s consent to this Sublease,
and Subtenant shall not be required to accept delivery of the Sublease Premises from Sublandlord
until seventy-two (72) hours have elapsed following Subtenant’s receipt of such notification.

     3. Use. The Sublease Premises shall be used and occupied by Subtenant for the uses
permitted under, and in compliance with the terms and conditions, of the Master Lease, and for no
other purpose whatsoever.

     4. Rent.

          (a) Base Rental. For so long as the Subtenant is not in default of any of its duties
and obligations hereunder (after giving effect to any applicable notice and cure period), Subtenant
shall be entitled to an abatement of Base Rental for the first three full calendar months of the
Term. Accordingly, provided that Subtenant is entitled to apply the Security Deposit to the
monthly Base Rental pursuant to the terms of Paragraph 5(b), below), beginning on the first day of
the seventh (7th) month of the Term (and on the first day of each month thereafter
during the Term), Subtenant shall pay Sublandlord the sum of Twenty Six Thousand Eight Hundred
Twenty Four Dollars and Twenty Cents ($26,824.20) each month as installments of base rent (“Base
Rental”); provided, however, that effective as of the first day of the thirteenth (13th)
calendar month following the Sublease Commencement Date, and thereafter annually on each
anniversary of such date during the Term, the Base Rental shall be increased to a sum equal to One
Hundred and Three Percent (103%) of the Base Rental in effect immediately preceding such
adjustment.

          (b) Prorations. If the Sublease Commencement Date is not the first (1st) day of a
month, or if the Sublease Expiration Date is not the last day of a month, a prorated installment of
monthly Base Rental based on a thirty (30) day month shall be paid for the fractional month during
which the Term commenced or terminated.

          (c) Additional Rent. In addition to paying the Base Rental, during the Term of this
Sublease Subtenant shall pay to Sublandlord as additional rent for this subletting all after-hours
heating, ventilating and air-conditioning charges incurred with respect to the Sublease Premises,
or incurred at the request of, or on behalf of, Subtenant, and shall pay all other additional
expenses, costs and charges incurred pursuant to the terms and conditions of the Master Lease and
payable to Landlord in connection with Subtenant’s use of the Sublease Premises. Base Rental,
additional rent and all other sums due and owing by Subtenant hereunder, however characterized
(including without limitation, late fees and interest) shall hereinafter be collectively referred
to as “Rent.”

          (d) Operating Expenses. In addition to paying the Base Rental, Subtenant shall pay an
amount equal to twenty-seven and six-tenths percent (27.4%)(“Subtenant’s Share”) of the Direct
Expenses for the Master Premises which are in excess of the amount of Direct Expenses for the
Master Premises applicable to the calendar year 2007 (the “Base Year”); provided, however, that,
notwithstanding the foregoing, in no event shall any

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decreases in Direct Expenses for any Expense Year entitle Subtenant to any decrease in Base
Rental or any credit against sums due hereunder.

          (e) Payment of Rent. Except as otherwise specifically provided in this Sublease, Rent
shall be payable in lawful money without demand, and without offset, counterclaim, or setoff in
monthly installments, in advance, on the first day of each and every month during the Term of this
Sublease. All of said Rent is to be paid to Sublandlord at its office at the address set forth for
notices below, or at such other place or to such agent and at such place as Sublandlord may
designate by notice to Subtenant. Any additional rent payable on account of items which are not
payable monthly by Sublandlord to Landlord under the Master Lease is to be paid to Sublandlord as
and when such items are payable by Sublandlord to Landlord under the Master Lease unless a
different time for payment is elsewhere stated herein. Upon written request therefore, Sublandlord
agrees to provide Subtenant with copies of any statements or invoices received by Sublandlord from
Landlord pursuant to the terms of the Master Lease.

          (f) Late Charge. In addition to the late charge described in Paragraph 25 of the
Master Lease, any Rent or other amounts owing hereunder which are not paid when due shall bear
interest from the date when due until paid at a rate per annum equal to the prime rate charged from
time to time by Bank of America, N.T. & S.A. plus two percent (2%).

     5. Security Deposit.

          (a) Initial Security Deposit. Concurrently with the execution of this Sublease,
Subtenant shall deposit with Sublandlord the sum of One Hundred and Sixty Three Thousand Three
Hundred Eighty Three Dollars and Fifty Two Cents ($163,383.52)(the “Deposit”), which shall be held
by Sublandlord as security for the full and faithful performance by Subtenant of its covenants and
obligations under this Sublease. Except as expressly provide in this paragraph to the contrary,
the Deposit is not an advance Rent deposit, an advance payment of any other kind, or a measure of
Sublandlord’s damage in case of Subtenant’s default. If Subtenant defaults in the full and timely
performance of any or all of Subtenant’s covenants and obligations set forth in this Sublease, then
Sublandlord may, from time to time, without waiving any other remedy available to Sublandlord, use
the Deposit, or any portion of it, to the extent necessary to cure or remedy the default or to
compensate Sublandlord for all or a part of the damages sustained by Sublandlord resulting from
Subtenant’s default. Subtenant shall immediately pay to Sublandlord within five (5) days following
demand, the amount so applied in order to restore the Deposit to its original amount, and
Subtenant’s failure to immediately do so shall constitute a default under this Sublease. If
Subtenant is not in default with respect to the covenants and obligations set forth in this
Sublease at the expiration or earlier termination of the Sublease, Sublandlord shall return the
Deposit (or so much as then remains) to Subtenant [within ten (10) days] following the expiration
or earlier termination of this Sublease. Sublandlord’s obligations with respect to the Deposit are
those of a debtor and not a trustee. Sublandlord shall not be required to maintain the Deposit
separate and apart from Sublandlord’s general or other funds and Sublandlord may commingle the
Deposit with any of Sublandlord’s general or other funds. Subtenant shall not at any time be
entitled to interest on the Deposit.

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          (b) Periodic Reduction in Security Deposit. Notwithstanding anything to the contrary
set forth in the foregoing subparagraph 5(a), in the event that Subtenant is not then in default of
any of its duties and obligations hereunder (after giving effect to any applicable notice and cure
period), Subtenant shall be entitled to apply the Deposit as follows: on the first day of the
fourth (4th), fifth (5th) and sixth (6th) months of the Term,
Twenty Six Thousand Eight Hundred Twenty Four Dollars and Twenty Cents ($26,824.20) of the Deposit
shall be applied to the Base Rental due and owing for such month, and Subtenant shall thereafter
not be required to maintain a Deposit in excess of the sum of Eighty Two Thousand Nine Hundred Ten
Dollars and Ninety Two Cents ($82,910.92); on the first day of the twelfth (12th) full
month of the Term, Twenty Six Thousand Eight Hundred Twenty Four Dollars and Twenty Cents
($26,824,20) shall be applied to the Base Rental due and owing for such twelfth (12th)
month, and Subtenant shall thereafter not be required to maintain a Deposit in excess of the sum of
Fifty Six Thousand Eighty Six Dollars and Seventy Two Cents ($56,086.72); and on the first day of
the twenty fourth (24th) full month of the Term, Twenty Seven Thousand Six Hundred
Twenty Eight Dollars and Ninety Three Cents ($27,628.93) shall be applied to the Base Rental due
and owing for such twenty fourth (24th) month, and Subtenant shall thereafter not be
required to maintain a Deposit in excess of the sum of Twenty-Eight Thousand Four Hundred Fifty
Seven Dollars and Seventy Nine Cents ($28,457.79).

     6. Signage. Subtenant shall have the right (i) to display is company name, and the
name of its individual employees, on the electronic building directory located in the first floor
lobby of the Building, and (ii) to install a sign bearing its company name outside of the Sublease
Premises; provided, however, that (aa) the quality, style, size, design, color and other physical
aspects of all such permitted signs shall be subject to all of the applicable terms and conditions
of the Master Lease, shall be subject to Landlord’s and Sublandlord’s prior written approval (such
approval shall not be unreasonably withheld, delayed or conditioned by Sublandlord), (bb) shall
also be subject to any covenants, conditions or restrictions encumbering the Sublease Premises and
any applicable municipal or other governmental laws, rules, regulations or other similar
restrictions, and (cc) shall not be visible from the exterior of the Building. Except for the
foregoing, Subtenant shall have no right to install or maintain signage in any other location in,
on, or about the Building, including without limitation the Sublease Premises. All such signs,
including the installation, maintenance and removal thereof, shall be at Subtenant’s sole cost and
expense. If Subtenant fails to maintain its signs, or if Subtenant fails to remove same upon the
expiration or earlier termination of this Sublease and repair any damage caused by such removal,
Sublandlord may do so at Subtenant’s expense and Subtenant shall reimburse Sublandlord for all
actual costs incurred by Sublandlord to affect such removal.

     7. Parking. Subject to Landlord’s approval of such use, Subtenant shall have the
right, during the Term of this Sublease, to use twenty six (26) unreserved parking spaces, and two
(2) reserved parking spaces, which Sublandlord is entitled to use in the parking facilities of the
Building. All such parking privileges shall be at the rates and subject to the terms and
conditions set forth in the Master Lease, and Subtenant shall reimburse Sublandlord, upon demand,
for those amounts billed to Sublandlord by Landlord for said parking privileges.

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     8. Incorporation of Terms of Master Lease.

          (a) This Sublease is subject and subordinate to the Master Lease. Subject to the
modifications set forth in this Sublease, the terms of the Master Lease are incorporated herein by
reference, and shall, as between Sublandlord and Subtenant (as if they were Landlord and Tenant,
respectively, under the Master Lease) constitute the terms of this Sublease except to the extent
that they are inapplicable to, inconsistent with, or modified by, the terms of this Sublease. In
the event of any inconsistencies between the terms and provisions of the Master Lease and the terms
and provisions of this Sublease, the terms and provisions of this Sublease shall govern. Subtenant
acknowledges that it has reviewed the Master Lease and is familiar with the terms and conditions
thereof.

          (b) For the purposes of incorporation herein, the terms of the Master Lease are subject to the
following additional modifications:

               (i) In all provisions of the Master Lease (under the terms thereof and without regard to
modifications thereof for purposes of incorporation into this Sublease) requiring the approval or
consent of Landlord, Subtenant shall be required to obtain the approval or consent of both
Sublandlord and Landlord.

               (ii) In all provisions of the Master Lease requiring Tenant to submit, exhibit to, supply or
provide Landlord with evidence, certificates, or any other matter or thing, Subtenant shall be
required to submit, exhibit to, supply or provide, as the case may be, the same to both Landlord
and Sublandlord. In any such instance, Sublandlord shall determine if such evidence, certificate
or other matter or thing shall be satisfactory.

               (iii) Sublandlord shall have no obligation to restore or rebuild any portion of the Sublease
Premises after any destruction or taking by eminent domain.

               (iv) All references in the Master Lease to the “Base Year” shall mean the calendar year 2007,
and all references to “Tenant’s Share” shall mean “Subtenant’s Share,” as defined herein.

          (c) The following provisions of the Master Lease are specifically excluded: Paragraphs 2, 3,
4, 5, 6, 8, 9, 10, 11, 12 and 13 of the Summary of Basic Lease Information; Paragraph 1.1.1 (“The
Premises”); Paragraph 1.2 (“Verification of Rentable Square Feet and Usable Square Feet of
Premises”); Paragraph 1.3 (“Premises as of the Lease Commencement Date”); Paragraph 1.4
(“Relocation of Existing Tenants”); Section 2 (“Lease Term”); Section 3 (“Base Rent”); Paragraph
4.1 (“General Terms”); Section 4.2.1 (defining “Base Year”); Paragraph 8.6 (“Elevator
Improvements”); Paragraph 10.8 (“Landlord’s Insurance”); Paragraphs 18.1 (“Existing Security
Interests”), 18.2 and 18.3 (regarding, among other things, non-disturbance agreements); Paragraphs
23.1 (“Full Floors”), 23.2 (“Multi-Tenant Floors”), 23.4 (“Building Directory”), 23.5(a)(“Tenant
Approval of Exterior Signs”), and 23.5(b)(“Landlord Approval of Tenant Exterior Sign”); the last
sentence of Section 25 (“Late Charges”); the first three sentences of Section 28 (“Tenant
Parking”); Section 29.12 (“No Warranty”); Section 29.18 (“Notices”); Section 29.24 (“Brokers”);
Section 29.35 (“Satellite/Antennae”); Exhibits A, A-1, B, C and F; and the terms and conditions of
the First Amendment, the Second Amendment and the Third Amendment.

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     9. Subtenant’s Obligations. Subtenant covenants and agrees that all obligations of
Sublandlord under the Master Lease shall be done or performed by Subtenant with respect to the
Sublease Premises, except as otherwise provided by this Sublease, and Subtenant’s obligations shall
run to Sublandlord and Landlord as Sublandlord may determine to be appropriate or be required by
the respective interests of Sublandlord and Landlord. Subtenant agrees to indemnify Sublandlord,
and hold it harmless, from and against any and all claims, damages, losses, expenses and
liabilities (including reasonable attorneys’ fees) incurred as a result of the non-performance,
non-observance or non-payment of any of Sublandlord’s obligations under the Master Lease which, as
a result of this Sublease, became an obligation of Subtenant. If Subtenant makes any payment to
Sublandlord pursuant to this indemnity, Subtenant shall be subrogated to the rights of Sublandlord
concerning said payment. Subtenant shall not do, nor permit to be done, any act or thing which is,
or with notice or the passage of time would be, a default under this Sublease or the Master Lease.

     10. Sublandlord’s Obligations. Sublandlord agrees that Subtenant shall be entitled to
receive all services and repairs to be provided by Landlord to Sublandlord under the Master Lease.
Subtenant shall look solely to Landlord for all such services and repairs and shall not, under any
circumstances, seek nor require Sublandlord to perform any of such services or repairs, nor shall
Subtenant make any claim upon Sublandlord for any damages which may arise by reason of Landlord’s
default under the Master Lease. Any condition resulting from a default by Landlord shall not
constitute as between Sublandlord and Subtenant an eviction, actual or constructive, of Subtenant
and no such default shall excuse Subtenant from the performance or observance of any of its
obligations to be performed or observed under this Sublease, or entitle Subtenant to receive any
reduction in or abatement of the Rent provided for in this Sublease. In furtherance of the
foregoing, Subtenant does hereby waive any cause of action and any right to bring any action
against Sublandlord by reason of any act or omission of Landlord under the Master Lease.
Sublandlord covenants and agrees with Subtenant that Sublandlord will pay all fixed rent and
additional rent payable by Sublandlord pursuant to the Master Lease to the extent that failure to
perform the same would adversely affect Subtenant’s use or occupancy of the Sublease Premises
during the Term. In addition, and notwithstanding anything to the contrary set forth above,
Sublandlord agrees that it will use commercially reasonable efforts (i) to enforce Landlord’s
obligations under the Master Lease, and/or (ii) to otherwise seek to enforce such rights as
Sublandlord may have pursuant to applicable law, in order to cause Landlord to perform its duties
and obligations in accordance with the terms of the Master Lease as they may relate to the Sublease
Premises.

     11. Default by Subtenant. In the event Subtenant shall be in default of any covenant
of, or shall fail to honor any obligation under, this Sublease, Sublandlord shall have available to
it against Subtenant all of the remedies available (a) to Landlord under the Master Lease in the
event of a similar default on the part of Sublandlord thereunder or (b) at law.

     12. Quiet Enjoyment. So long as Subtenant pays all of the Rent due hereunder and
performs all of Subtenant’s other obligations hereunder, Sublandlord shall do nothing to affect
Subtenant’s right to peaceably and quietly have, hold and enjoy the Sublease Premises during the
Term.

     13. Notices. Anything contained in any provision of this Sublease to the contrary

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notwithstanding, Subtenant agrees, with respect to the Sublease Premises, to comply with and remedy
any default in this Sublease or the Master Lease which is Subtenant’s obligation to cure, within
the period allowed to Sublandlord under the Master Lease, even if such time period is shorter than
the period otherwise allowed therein due to the fact that notice of default from Sublandlord to
Subtenant is given after the corresponding notice of default from Landlord to Sublandlord.
Sublandlord agrees to forward to Subtenant, promptly upon receipt thereof by Sublandlord, a copy of
each notice of default received by Sublandlord in its capacity as Tenant under the Master Lease.
Subtenant agrees to forward to Sublandlord, promptly upon receipt thereof, copies of any notices
received by Subtenant from Landlord or from any governmental authorities. All notices, demands and
requests shall be in writing and shall be sent either by hand delivery or by a nationally
recognized overnight courier service (e.g., Federal Express), in either case return receipt
requested, to the address of the appropriate party. Notices, demands and requests so sent shall be
deemed given when the same are received, or upon any earlier refusal by the addressee to take
delivery of such notice, demand and/or request.

Notices to Sublandlord shall be sent as follows:

Miramax Film Corp.

c/o Disney CORE Services

500 South Buena Vista Street

Burbank, CA 91521-2515

Attention: Lease Administration

with a copy to:

The Walt Disney Company

500 South Buena Vista Street

Burbank, CA 91521-0183

Attention: Corporate Legal-Real Estate

Notices to Subtenant shall be sent as follows:

The Film Department

8439 Sunset Boulevard

Suite 200

Los Angeles, CA 90069

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     14. Broker. Sublandlord represents and warrants to Subtenant that, with the exception
of Cushman & Wakefield (“Sublandlord’s Broker”), no brokers were engaged by Sublandlord, or
otherwise entitled to a commission or other payment, in connection with the negotiation or
consummation of this Sublease by Sublandlord. Subtenant represents and warrants to Sublandlord
that, with the exception of First Property (“Subtenant’s Broker”), no brokers were engaged by
Subtenant, or otherwise entitled to a commission or other payment, in connection with the
negotiation or consummation of this Sublease by Subtenant. [Sublandlord] agrees to pay the
commission of the Sublandlord’s Broker and Subtenant’s Broker pursuant to a separate agreement or
agreements. Each party agrees to indemnify the other, and hold it harmless, from and against any
and all claims, damages, losses, expenses and liabilities (including reasonable attorneys’ fees)
incurred by said party as a result of any breach of the foregoing representation and warranty by
the other party.

     15. Condition of Premises. Sublandlord agrees that prior to delivering the Sublease
Premises to Subtenant, Sublandlord shall cause the Sublease Premises to be professionally cleaned,
and shall remove all loose furniture from the Sublease Premises, at Sublandlord’s sole cost and
expense. Except as expressly set forth in the prior sentence, Subtenant acknowledges that it is
subleasing the Sublease Premises “as-is” and that Sublandlord is not making any representation or
warranty concerning the condition of the Sublease Premises and that Sublandlord is not obligated to
perform any work to prepare the Sublease Premises for Subtenant’s occupancy. Subtenant
acknowledges that it is not authorized to make or do any alterations or improvements in or to the
Sublease Premises except as permitted by the provisions of this Sublease and the Master Lease and
that it must deliver the Sublease Premises to Sublandlord on the Sublease Expiration Date in the
condition required by the Master Lease. Further, in executing and delivering this Sublease,
Subtenant has not relied on any representation, including without limitation any representation as
to the amount of any item comprising additional rent or the amount of the additional rent in the
aggregate, or that Landlord or Sublandlord is/are furnishing the same services to Subtenant as to
other (sub)tenants, at all, or on the same level or on the same basis, or any warranty or any
statement of Sublandlord which is not expressly set forth in this Sublease.

     16. Consent of Landlord. Section 14 of the Master Lease requires Sublandlord to
obtain the written consent of Landlord to this Sublease. Sublandlord shall solicit Landlord’s
consent to this Sublease promptly following the execution and delivery of this Sublease by
Sublandlord and Subtenant. In the event Landlord’s written consent to this Sublease has not been
obtained within thirty (30) days after the execution hereof, then this Sublease may be terminated
by either party hereto upon notice to the other, and upon such termination neither party hereto
shall have any further rights against or obligations to the other party hereto.

     17. Termination of the Lease. If for any reason the term of the Master Lease shall
terminate prior to the Sublease Expiration Date, this Sublease shall automatically be terminated
and Sublandlord shall not be liable to Subtenant by reason thereof unless said termination shall
have been caused by the default of Sublandlord under the Master Lease, and said Sublandlord default
was not as a result of a Subtenant default hereunder.

     18. Limitation of Estate. Subtenant’s estate shall in all respects be limited to, and
be construed in a fashion consistent with, the estate granted to Sublandlord by Landlord.

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Subtenant shall stand in the place of Sublandlord and shall defend, indemnify and hold Sublandlord
harmless with respect to all covenants, warranties, obligations, and payments made by Sublandlord
under or required of Sublandlord by the Master Lease with respect to the Subleased Premises. In
the event Sublandlord is prevented from performing any of its obligations under this Sublease by a
breach by Landlord of a term of the Master Lease, then Sublandlord’s sole obligation in regard to
its obligation under this Sublease shall be to use reasonable efforts in diligently pursuing the
correction or cure by Landlord of Landlord’s breach.

     19. Notification of Availability of Additional Premises. Sublandlord shall notify
Subtenant in the event that Sublandlord elects to sublease, or to offer for subletting, any portion
of the Master Premises (other than the Sublease Premises) which has not been sublet prior to the
date of this Sublease.

     20. Use of Proprietary Names. Subtenant shall not acquire any right under this
Sublease, and shall not use, Sublandlord’ name, the name “Disney” (either alone or in conjunction
with or as a part of any other word or name) or any fanciful characters of designs of Sublandlord
or any of Sublandlord’s affiliates (i) in any advertising, publicity or promotion; (ii) to express
or imply any endorsement by Sublandlord of any services provided by Subtenant or any other person
or entity; or (iii) in any other manner whatsoever (whether or not similar to the uses hereinabove
specifically prohibited). The provisions of this Section shall survive the expiration or earlier
termination of this Sublease.

     21. Counterpart Signature. This Sublease may be executed in any number of duplicate
counterparts, each of which shall be deemed an original once executed, and all of which together
shall constitute one and the same agreement.

     22. Authority to Sign/Warranties. Each individual executing this Sublease on behalf
of Sublandlord warrants that Sublandlord has full authority to execute and deliver this Sublease,
and that each such person is authorized to sign on behalf of Sublandlord. Each individual
executing this Sublease on behalf of Subtenant warrants that Subtenant has full authority to
execute and deliver this Sublease, and that each such person is authorized to sign on behalf of
Subtenant.

     23. Entire Agreement. It is understood and acknowledged that there are no oral
agreements between the parties hereto affecting this Sublease and this Sublease supersedes and
cancels any and all previous negotiations, arrangements, brochures, agreements and understandings,
if any, between the parties hereto or displayed by Sublandlord to Subtenant with respect to the
subject matter thereof, and none thereof shall be used to interpret or construe this Sublease.
This Sublease, and the exhibits and schedules attached hereto, contain all of the terms, covenants,
conditions, warranties and agreements of the parties relating in any manner to the rental, use and
occupancy of the Sublease Premises and shall be considered to be the only agreements between the
parties hereto and their representatives and agents. None of the terms, covenants, conditions or
provisions of this Sublease can be modified, deleted or added to except in writing signed by the
parties hereto. All negotiations and oral agreements acceptable to both parties have been merged
into and are included herein. There are no other representations or warranties between the
parties, and all reliance with respect to representations is based totally upon the representations
and agreements contained in this

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Sublease.

     IN WITNESS WHEREOF, the parties have entered into this Sublease as of the date first written
above.

	 	 	 	 	 	 	 
	 	 	SUBLANDLORD:	 	 
	 
	 	 	 	 	 	 
	 	 	Miramax Film Corp.,	 	 
	 	 	a New York corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Marsha L. Reed	 	 
	 

	 	Its:
	 
Marsha L. Reed, Secretary
	 	 
	 

	 		 	
	 	 
	 
	 	 	 	 	 	 
	 	 	SUBTENANT:	 	 
	 
	 	 	 	 	 	 
	 	 	The Film Department,	 	 
	 

	 	a
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Neil Sacker	 	 
	 

	 	Its:
	 	 
President
& COO
	 	 
	 

	 	 	 	 

	 	 

10exv10w5

Exhibit 10.5

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”), Pain Cuit,
Inc., a California corporation (the “Lender”), and Mark Gill (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. Chief Executive Officer. During the Engagement Term, the Executive shall be Chief
Executive 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 he deems appropriate. In such capacity, the Executive shall have the powers and
authorities of a chief executive officer typically exercised by a chief executive officer 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 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 Neil Sacker (the “Co-Executive”) serves as the Company’s President & COO (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 serve at the
pleasure of the Board.

          b. Hierarchy. The Executive shall be the 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 or equal title, level or responsibility during

2

 

the Engagement Term. The Co-Executive shall report directly to the 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, and serve as chair 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 Chief Executive Officer, and President & COO, 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
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

3

 

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:

          (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

4

 

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 $810,000 (the “Base Compensation”)
for the services of the Executive. 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.

          b. Bonuses. The Company shall pay the Lender 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

5

 

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 997.50
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 twenty-four and seventy one hundredths
percent (24.70%) 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 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

6

 

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 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

7

 

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 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:

8

 

          (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 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

9

 

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.

“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.

10

 

          (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 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.

11

 

          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
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

12

 

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.

          (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

13

 

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, 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

14

 

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: Neil Sacker, President & COO;

     and to all Board members

          If to the Lender or the Executive, to:

Mark Gill

1937 Cedar Lodge Terrace

Los Angeles, California 90039

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

15

 

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 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

16

 

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
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

17

 

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 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”

18

 

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/ Neil Sacker	 	 
	 

	 	 	 	 

Neil Sacker, President & COO
	 	 
	 
	 	 	 	 	 	 
	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 
	 	 	PAIN CUIT, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Mark Gill	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Mark Gill, Chief Executive Officer	 	 
	 
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE	 	 
	 
	 	 	 	/s/ Mark Gill	 	 
	 	 	 	 	 
	 	 	MARK GILL	 	 

 

 

EXHIBIT A

Pre-Existing Projects

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

	 
	 	 	“Orders to Kill”
	 
	 	 	“Eli Webb”
	 
	 	 	“Read My Lips”
	 
	 	 	“The Pre-Nup”
	 
	 	 	“Standing In”
	 
	 	 	“Strange Skies”
	 
	2.	 	Executive is serving as an executive producer on the following projects:

	 
	 	 	“Mama’s Boy”
	 
	 	 	“Mr. Nobody”
	 
	 	 	“Queen of the South”
	 
	 	 	“One Thing Always”
	 
	 	 	“Superfreak”
	 
	 	 	“The Way the Dead Love”
	 
	 	 	“A Perfect Scandal”
	 
	3.	 	Executive is an adviser to Burn Lounge, an internet company.

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