Document:

Sale and Purchase Agreement

 

Exhibit 10.1

			
	
	 	Roll of Deeds No. 727/2006 K

Copy

of the notarial deed of the Civil Law Notary in Hamburg, Germany,

Dr. Matthias Kleiser

 

			
	
	 	Roll of Deeds No. 727/ 2006 K

N  e  g  o  t  i  a  t  e  d

in this Free and Hanseatic City of Hamburg

on this day

7h day of June 2006

Before me, the undersigned Civil Law Notary in Hamburg

Dr. Matthias Kleiser

with offices at Neuer Wall 55, 20354 Hamburg,

 

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appeared before me at my offices:

	1.	 	Ms. Paula Kathryn PKay Maracin-Krieg

date of birth 19 August 1960

Address: Lausitzer Weg 12, 23617 Stockelsdorf

who identified herself by means of her U.S. passport

	 
	2.	 	Ms. Stephanie Jörs

date of birth: 9 September 1971

Address: Tremskamp 5, 23611 Bad Schwartau

who identified herself by means of her German identity card
	 
	 	 	according to her declarations not acting in her own name but in the name and on behalf of

Mr. Karl Krieg

date of birth 10 March 1955

Address: Lausitzer Weg 12, 23617 Stockelsdorf

	 	 	upon power of attorney dated 10 May 2006 which was presented upon notarization in the
original and is attached to this deed in certified copy,

	3.	 	Mr. Kristian J. Heiser

date of birth 28 June 1970

Address: Wexstrasse 16, 20355 Hamburg

who identified himself by means of her German identity card
	 
	 	 	according to his declarations not acting in his own name
but in the name and on behalf of

Hollywood Media Corp.

	 	 	a Florida corporation, whose registered office is at 2255 Glades Rd., Suite 221A, Boca Raton, FL
33431, USA, upon power of attorney dated 8th of May 2006 which was presented upon
notarization in the original and is attached to this deed in certified copy.

The persons appearing requested the notarization of the following:

 

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SALE AND PURCHASE

AGREEMENT

regarding the purchase of all shares in

Screenline Film- und Medieninformations GmbH

by

Hollywood Media Corp.

 

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SALE AND PURCHASE AGREEMENT

by and between

	1.	 	Paula Kathryn PKay Maracin-Krieg, Lausitzer Weg 12, 23617 Stockelsdorf, Germany,

 – herein “PKay Krieg” –

	2.	 	Hollywood Media Corp., a Florida corporation, whose registered office is at 2255 Glades
Rd., Suite 221A, Boca Raton, FL 33431, USA,

 – herein “Hollywood Media” –

	 	 	and

	3.	 	Karl Krieg, Lausitzer Weg 12, 23617 Stockelsdorf, Germany,

 – PKay Krieg, Karl Krieg and Hollywood Media herein

referred to collectively as the “Parties” and individually as a “Party” –

 

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TABLE OF CONTENTS

	 	 	 	 	 
	A.	 	CURRENT STATUS AND TARGET STRUCTURE
	 

	 	1.
	 	Current Structure
	 

	 	2.
	 	Signing Date and Effective Date
	B.	 	TRANSACTIONS
	 

	 	3.
	 	Share Sale and Transfer
	 

	 	4.
	 	Consideration
	C.	 	REPRESENTATIONS AND WARRANTIES, REMEDIES AND INDEMNITIES
	 

	 	5.
	 	Representations and Warranties
	 

	 	6.
	 	Remedies
	 

	 	7.
	 	Indemnity
	 

	 	8.
	 	Expiration of Claims/ Limitation of Claims
	D.	 	SELLER’S COVENANTS
	 

	 	9.
	 	No Deviation from the Ordinary Course of Business
	 

	 	10.
	 	Liabilities vis-à-vis Screenline
	 

	 	11.
	 	Transition of Business
	 

	 	12.
	 	Damages
	E.	 	NON-COMPETITION, DIRECTOR SERVICE AGREEMENT
	 

	 	13.
	 	Non-Competition Clause
	 

	 	14.
	 	Cooperation, Director Service Agreement
	F.	 	ANNOUNCEMENTS, NOTICES, GOVERNING LAW
	 

	 	15.
	 	Restriction of Announcements
	 

	 	16.
	 	Notices
	 

	 	17.
	 	Governing Law/Jurisdiction
	G.	 	MISCELLANEOUS
	 

	 	18.
	 	Costs
	 

	 	19.
	 	Schedules
	 

	 	20.
	 	Entire Agreement
	 

	 	21.
	 	Assignment
	 

	 	22.
	 	Interests
	 

	 	23.
	 	Business days
	 

	 	24.
	 	Third Party Rights
	 

	 	25.
	 	Headings
	 

	 	26.
	 	Severability

 

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PREAMBLE

	(A)	 	WHEREAS, PKay Krieg is the sole shareholder in Screenline Film- und Medieninformations
GmbH, Lausitzer Weg 12, 23617 Stockelsdorf, Germany (herein “Screenline”).
	 
	(B)	 	WHEREAS, Screenline is engaged with obtaining, conditioning and translating
professional information, data and software for all media, in particular the film industry (the
“Screenline Business”).
	 
	(C)	 	WHEREAS, Hollywood Media is a leading provider of news, information and ticketing covering
the entertainment and media industry. Shares of Hollywood Media’s common stock are listed on the
NASDAQ National Market under the trading symbol “HOLL.”
	 
	(D)	 	WHEREAS, Hollywood Media intends to acquire (herein the “Agreement”) all shares in
Screenline by Hollywood Media against (i) a fixed consideration consisting of a cash payment and a
payment in Hollywood Media shares and (ii) an earn out payment depending on certain future target
revenues of Screenline.
	 
	(E)	 	WHEREAS, PKay Krieg, as the Company’s sole shareholder, resolved by notarial deed as of 6
December 2001 as follows:

	 	(i)	 	“The existing two shares in the Company with the par values of DM 37,500.00 and DM 12,500.00
are herewith merged into one share with the par value of DM 50,000.00.
	 
	 	(ii)	 	The registered capital of the Company in the amount of DM 50,000.00 is converted in EUR
25,264.59 according to the determined conversion rate of EUR 1.00 : 1.95583. The sole share in the
Company is similarly converted and amounts to (rounded) EUR 25,264.59.
	 
	 	(iii)	 	The registered capital of the Company is increased from EUR 25,564.59 by EUR 435.41 to EUR
26,000.00.
	 
	 	(iv)	 	PKay Krieg as the sole shareholder subscribes to the increased registered capital by EUR
435.41 and commits herself to immediately pay this amount by cash-contribution to the company.”

	(F)	 	WHEREAS, the increased share capital in the amount of EUR 26,000.00 was registered with the
commercial register of Screenline at the local court (Amtsgericht) of Bad Schwartau, Germany,
dated as of 15 January 2002.

 

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NOW, THEREFORE, the Parties agree as follows:

	A.	 	CURRENT STATUS AND TARGET STRUCTURE

	1.	 	Current Structure
	 
	1.1	 	Screenline is a limited liability company (Gesellschaft mit beschränkter Haftung, GmbH)
organized under the laws of Germany, registered with the commercial register (Handelsregister)
maintained at the local court (Amtsgericht) of Lübeck, Germany, under registration number
HRB 1397 BS and having its corporate domicile (Sitz) in Stockelsdorf, Germany. Screenline does not
hold any real estate (Grundeigentum) and does neither have any subsidiaries nor holds any
participation in other companies, businesses or entities.
	 
	1.2	 	The registered capital (Stammkapital) of Screenline amounts to EUR 26,000.00 (twenty-six
thousand Euros) and is divided into one fully paid-up share with a par value of EUR 26,000.00
(“Screenline Share”), which is held by PKay Krieg as the sole shareholder of the Company.
	 
	1.3	 	Hollywood Media is a public stock corporation under the laws of the State of Florida and
having its registered and corporate office at 2255 Glades Rd., Suite 221A, Boca Raton, FL 33431,
USA. The authorized capital stock of Hollywood Media consists of (i) 100,000,000 shares of common
stock, par value USD 0.01 per share (“Hollywood Media Shares” and each a “Hollywood Media
Share”), of which 32,938,997 were issued and outstanding as of May 1, 2006, and (ii) 1,000,000
shares of preferred stock, par value USD 0.01 per share, of which no shares were issued and
outstanding as of May 1, 2006. The Hollywood Media Shares are listed on the NASDAQ National
Market under the trading symbol “HOLL.”
	 
	2.	 	Signing Date and Effective Date
	 
	2.1	 	“Signing Date” (Unterzeichnungsstichtag) shall be the day on which this Agreement has been
duly executed before a notary public.
	 
	2.2	 	“Effective Date” (Wirksamkeitsstichtag) shall be the day on which the transfer of the
Screenline Shares pursuant to Section 3.1 respectively the transfer of the two shares pursuant to
Section 3.2 becomes effective.

 

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	B.	 	TRANSACTIONS

	3.	 	Share Sale and Transfer
	 
	3.1	 	PKay Krieg hereby sells and transfers the Screenline Share as described in Section 1.2 to
Hollywood Media. Hollywood Media hereby purchases the Screenline Share and accepts such transfer of
the Screenline Share.
	 
	3.2	 	By way of precaution and to provide for the event that the described merger of the two
original shares in Screenline into one new share as described in lit. (E) of the Preamble has
failed, PKay Krieg hereby sells and transfers (i) a share in Screenline with the par value of DM
12,500.00 (EUR 6,391.15) and (ii) a share in Screenline with the par value of DM 37,500.00 (EUR
19,174.45) to Hollywood Media; Hollywood Media purchases and accepts such transfer of the two
forenamed shares.
	 
	3.3	 	The sale and purchase of the Screenline Share pursuant to Section 3.1 and the
precautionary transfer of the two shares pursuant to Section 3.2 shall have economic effect
(wirtschaftliche Wirkung) as per 1 January 2006, 00.00 hours, and includes any and all claims and
other rights pertaining to the Screenline Share/shares, including, without limitation, the right to
receive dividends which have not yet been distributed prior to the Signing Date.
	 
	3.4	 	The foresaid transfers pursuant to Section 3.1 and Section 3.2, respectively, are subject
to the condition precedent (aufschiebende bedingt) of payment of the Fixed Consideration pursuant
to the following Section 4.2.
	 
	3.5	 	
Karl Krieg, as husband of PKay Krieg, hereby approves the transfer of the Screenline Share
pursuant to Section 3.1 and to the precautionary transfer of the two shares pursuant to Section 3.2
according to Section 1365 German Civil Code (BGB).
	 
	3.6	 	By way of precaution, PKay Krieg and Karl Krieg hereby assign all possible claims and
rights that they are each entitled to against Screenline to Hollywood Media with exception of all
claims and rights resulting from PKay Krieg’s employment as director of Screenline that will accrue
after the Signing Date. Hollywood Media accepts such assignment.
	 
	3.7	 	Hollywood Media, Screenline and their successors and assignees shall be entitled, but in
no way obligated, to operate under the present name of Screenline or variations hereof and to make
use of the trademark “Screenline” . PKay Krieg shall be prohibited from using such names,
variations thereof or other denominations that could be mistaken for such names in any way as from
Signing Date.

 

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	 	 	PKay Krieg hereby irrevocably agrees to transfer all rights that she holds related
to the trademark (eingetragene Marke) “Screenline” as attached hereto as Schedule
3.7, in particular but not limited to all trademarks, to Screenline. PKay Krieg agrees
to make all declarations and statements and to take all acts necessary in order to
effectuate the transfer and registration of such rights in favor of Screenline.
	 
	4.	 	Consideration
	 
	4.1	 	As a consideration for the share transfer pursuant to Section 3 above Hollywood Media
shall render to PKay Krieg (i) fixed consideration pursuant to Section 4.2 (“Fixed
Consideration”) and (ii) an earn out consideration pursuant to Section 4.3 (“Earn Out
Consideration”).
	 
	4.2	 	The Fixed Consideration consists of (i) a cash payment in the amount USD 500,000.00 (“Cash
Payment”) and (ii) the transfer of such number of unregistered shares of common stock of
Hollywood Media (“Consideration Shares”) equal to the quotient of (a) USD 100,000.00 divided
by (b) the Fair Market Value (as defined below) of the Hollywood Media Shares (“Share
Payment”). For the purposes hereof, “Fair Market Value” means the average closing sales price
of the Hollywood Media Shares on the ten trading days prior to the Effective Date on The
Nasdaq Stock Market, Inc., or such other U.S. national securities exchange, as reported by The
Nasdaq Stock Market, Inc. or, if not so reported by The Nasdaq Stock Market, Inc., the average
of the high bid and low asked quotations for one share of such stock as reported by the
National Quotations Bureau Incorporated or similar organization for the ten trading days prior
to the Effective Date; provided, that if none of the calculation methods set forth
above are applicable, then Fair Market Value shall be determined in good faith by the Board of
Directors of Hollywood Media. The Consideration Shares shall be available for sale, through
one or more market makers or other registered broker/dealer designated by Hollywood Media, in
accordance with Rule 144 promulgated under the Securities Act of 1933, as amended, at any time
following the one (1) year anniversary date of the Effective Date.

	 	4.2.1	 	The Cash Payment is payable by Hollywood Media within 5 Business Days after
signing of this contract by transfer to the following bank account of PKay Krieg:
Deutsche Bank AG, Branch: Lübeck, Account No.: 4607321 00, Bank Code: 230 707 00,
IBAN: DE22 2307 0700 0460 7321 00, BIC (SWIFT-CODE): DEUTDEDB237.
	 
	 	4.2.2	 	The Share Payment is payable by Hollywood Media within 14 days after signing
of this contract by transfer of the Consideration Shares to the following bank depot of
PKay Krieg: Deutsche Bank AG, Branch: Lübeck, Account No.: 4607321 00, Bank Code: 230
707 00,

 

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	 	 	 	IBAN: DE22 2307 0700 0460 7321 00, BIC (SWIFT-CODE): DEUTDEDB237.

	 	 	Bank fees, taxes and duties, if any relating to the transfer of the Cash Payment and the
Share Payment, shall be borne by PKay Krieg and Hollywood Media in equal amounts.
	 
	4.3	 	The Earn Out Consideration varies between USD 0.00 and USD 400,000.00 depending on the Gross
Revenue, as defined in Section 4.4, as follows:

	 	 	 
	Gross Revenue:	 	Earn Out Consideration:
	USD
0.00           
– USD 799,999.99

	 	     USD 0.00
	USD 800,000.00 – USD 899,999.99

	 	     USD 200,000.00
	USD 900,000.00 – USD 999,999.99

	 	     USD 300,000.00
	USD 1,000,000.00 or more

	 	     USD 400,000.00

	 	 	The Earn Out Considerations as named in the foregoing table apply alternatively not
cumulative. Whether and in what amount an Earn Out Consideration is payable will be
determined by Hollywood Media within three months after the end of the financial year 2008.
If (and only if) an Earn Out Consideration is payable to PKay Krieg such Earn Out
Consideration is due for payment at the latest on 30 June 2009 by transfer to a bank
account to be named by PKay Krieg. Bank fees, taxes and duties, if any relating to the
transfer of the Earn Out Consideration, shall be borne by PKay Krieg. If the Gross Revenue
amounts to less than USD 800,000.00 the Earn Out Consideration will cease and not become
due and payable and Hollywood Media will not have any obligations
vis-à-vis PKay Krieg in
this respect.
	 
	4.4	 	“Gross Revenue” is defined as the gross revenue made in the financial year 2008 with sales of
Screenline Data to customers of Screenline and customers of Hollywood Media. “Screenline Data”
is defined as international box office data and film credits collected by or on behalf of
Screenline. PKay Krieg will be provided by Hollywood Media with a yearly overview showing the
gross revenue for sales of Screenline Data in the financial years 2006, 2007 and 2008. The
yearly overview will be certified by the principal financial officer of Hollywood Media and
provided within the first three months after the end of the relevant financial year. PKay
Krieg acknowledges and agrees that the Gross Revenue shall be determined in good faith by the
principal accounting officer of Hollywood Media (which person currently is Hollywood Media’s
Chief Accounting Officer), based upon (i) generally accepted accounting principles in the
United States (“GAAP”), (ii) Screenline’s financial statements prepared in accordance with
GAAP consistent with past practice to the extent permissible and practicable (including as
prepared in connection with the preparation and audit of Hollywood Media’s audited
consolidated financial statements (“Hollywood Media Financial Statements”)) and (3) the
Hollywood Media Financial Statements.

 

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	C.	 	REPRESENTATIONS AND WARRANTIES, REMEDIES AND INDEMNITIES

	5.	 	Representations and Warranties
	 
	 	 	PKay Krieg hereby represents and warrants by way of an
independent guarantee (selbständiges
Garäntieversprechen) pursuant to Section 311
(1) German Civil Code (BGB) that the
statements set forth hereinafter are complete, correct and not misleading as of the Signing
Date and Effective Date (herein collectively “Guarantees” and each a “Guarantee”), it being
understood that such statements shall not constitute a quality guaranty concerning the
object of the purchase within the meaning of Section 444 German
Civil Code (Garantie für die
Beschaffenheit der Sache):
	 
	5.1	 	Existence of Company; Screenline Share. Screenline is duly incorporated and validly existing
under the laws of Germany. All statements set out in Section 1.1 and 1.2 above, including,
without limitation, with respect to Screenline’s registered share capital and division of the
share capital are complete, correct and not misleading. As of the Signing Date and the
Effective Date, the Screenline Share exists and is paid-up in the amount set forth in Section
1.2. Neither the Screenline Share nor any other share in Screenline has been repaid (directly
or indirectly, openly or concealed) or is assessable (unterliegt einer Nachschuss-oder
Nebenleistungspflicht). The Screenline Share or any other share in Screenline is free and
clear of any third party rights and has not been pledged, assigned, charged or otherwise
encumbered or used as a security. There are no options, pre-emptive rights, shareholder
agreements, trust agreements, sub-participations or other agreements with respect to the
Screenline Share or any other share in Screenline. Upon transfer of either the Screenline
Share pursuant to Section 3.1 or the two shares pursuant to Section 3.2, Hollywood Media
acquires full and unrestricted title to the Screenline Share or the two shares named in
Section 3.2, as applicable, free and clear of any rights of third parties.
	 
	5.2	 	Articles of Association; Commercial Register. The articles of association of Screenline are
valid, in full force and effective in the form attached hereto as Schedule 5.2(i) and
no resolution for the amendment for the articles of association of Screenline has been adopted
and no filings with official registers for change or amendment of the articles of association
of Screenline are pending. Any facts and other documents required by applicable law to be
filed with the competent commercial register or other comparable authorities have been
completely, duly and timely filed. The copy of the excerpt of the commercial register attached
hereto as Schedule 5.2(ii) is complete, correct and not misleading and reflects the
present recordings in the competent commercial register. All applicable provisions under
applicable law and articles of

 

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	 	 	association regarding the increase of the share capital of Screenline have been duly
observed.
	 
	5.3	 	Free Disposal of Shares. PKay Krieg is entitled to freely dispose of any shares in Screenline
without any limitations or restrictions.
	 
	5.4	 	Corporate Agreements. Screenline has not entered into any silent partnership agreements
(Stille Beteiligungen), domination and profit and loss pooling agreements or any other
agreements within the meaning of Section 291 et seq. of the German Stock Corporation Act
or similar agreements such as management agreements
(Betriebsführungsverträge).
Screenline has not entered into any cash pooling agreements or similar agreements.
	 
	5.5	 	Participations. Screenline does not hold — neither directly, indirectly nor in trust — any
shares, interests or equity (including, without limitation, silent partnerships and
sub-participations) in, or has entered into any agreement to hold any shares, interests or
equity in or to establish any other entity. Screenline is not party to any joint venture,
consortium, partnership or other syndicate.
	 
	5.6	 	Insolvency, Bankruptcy or Judicial Composition Proceedings. No
bankruptcy, insolvency, judicial composition or comparable proceedings have been initiated
or applied for under any applicable law against PKay Krieg or Screenline, nor have any
legal proceedings or other enforcement measures been initiated or applied for with respect
to any property or other assets of PKay Krieg or Screenline. There exist no circumstances
that would justify the opening of such proceedings or the avoidance, challenge or
rescission of this Agreement in the future; in particular, neither PKay Krieg nor
Screenline is over-indebted (überschuldet) or illiquid
(zahlungsunfähig), nor is
illiquidity impending. Neither PKay Krieg nor Screenline has ceased or suspended payments
(Zahlungen eingestellt), and no debt settlement arrangement with respect to Screenline, or
other compromise or arrangement between Screenline and any of its creditors, has been
proposed or approved.
	 
	5.7	 	Third Party Rights and Regulations. The execution and consummation of this Agreement,
including the transactions contemplated hereunder, by PKay Krieg does and will neither result
in a violation of third party rights nor of any duties or obligations arising from or in
connection with any (i) statutes, regulations, ordinances, international treaties,
administrative regulations, orders, judgments, decrees, licenses, permits, rulings,
decisions, awards or other legal norms of any supranational, international, national, regional
or local authority, institution, court, tribunal or any other public body or arbitration
tribunal, or any common or customary law (all items under (i) above are hereinafter
collectively referred to as the “Regulations”), (ii) contracts, other agreements or offers to
enter into contracts or other agreements (assuming that

 

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	 	 	such offers have already been accepted) (all items under (ii) above are hereinafter
collectively referred to as the “Transactions”).
	 
	5.8	 	Enforceability. This Agreement constitutes the legal, valid and binding obligation of PKay
Krieg, enforceable under German law against PKay Krieg in accordance with its terms and
conditions. PKay Krieg is not required to give any notice to any third party (including,
without limitation, authorities or other public bodies) or to obtain any third party’s consent
or authorization in connection with the execution and consummation of this Agreement by PKay
Krieg under applicable private or public law. The execution and consummation of this Agreement
do not constitute any rights of cancellation or reclaim or other rights of any counterparty of
Screenline or other third parties. Any actions required on part of PKay Krieg in order to
validly authorize and perform the execution and consummation of this Agreement have been
taken. In particular, all necessary consents and approvals by corporate bodies and
shareholders have been validly granted and validly exist.
	 
	5.9	 	Notice Requirements. Any mandatory notice requirements with respect to the shares in
Screenline, in particular under Section 16 of the German Limited Liability Company Act have
been, at any time, duly and timely fulfilled.
	 
	5.10	 	Financial Statements. The copies of the reports on the final accounts as of 2002, 2003, 2004
and 2005 (“Financial Statements” and each
“Financial Statement [year]”) as attached hereto as
Schedule 5.10(i) to (iv) are complete and true to original and correspond to the
Financial statements of the relevant years as adopted by the shareholders. The Financial
Statements have been prepared in accordance with any applicable provisions and in particular
generally accepted accounting principles as consistently applied with past practice,
maintaining the same accounting and valuation principles, methods and rules. All options to
capitalize or to include items on the liabilities side have been consistently exercised. The
Financial Statements present a true and fair view of the assets and liabilities
(Vermögenslage), financial condition (Finanzlage) and results of operation (Ertragslage) of
Screenline as for the times and for the periods referenced therein. The balance sheets within
the Financial Statements are complete and correct with respect to the items to be shown on the
assets and liabilities side, including, without limitation, as to their specific amount.
However, assets and other items have only been capitalized if and to the extent that such
capitalization is required by applicable law. All depreciations and value adjustments
(Abschreibungen und Wertberichtigungen) and all accruals
(Rückstellungen) permitted under
applicable law have been made in the maximum amount permitted. The results of ordinary
business operations of Screenline (Sections 298 in conjunction with 275 para. 2 no. 14 and,
respectively, para. 3 no. 13 of the German Commercial Code) were not affected by any
exceptional, recurrent incidents. The report on the situation within the Financial Statements
present an overall correct view of the situation of Screenline. The risks of the future
development are reflected accurately.

 

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	5.11	 	Liabilities. Screenline does not have, as of the Signing Date and the Effective Date,
any liabilities, including, without limitation, uncertain and contingent liabilities,
whether known or unknown, other than those accounted or accrued for in their full amount in
the list attached hereto as Schedule 5.11. Screenline does not have any liabilities,
including, without limitation, uncertain and contingent liabilities and irrespective of
whether known or unknown, from swaps, options or other derivatives.
	 
	5.12	 	Intellectual Property, Information Technology. Schedule 5.12 completely and correctly
lists Intellectual Property Rights (i) to which Screenline holds free and unencumbered title
(or the right, as the case may be), or, to the extent the title (or the right, as the case may
be) to certain Intellectual Property Rights is not transferable due to legal reasons, (ii) to
which unrestricted (as to time, area and matter) and exclusive rights to use have been granted
to Screenline, and the dates on which those Intellectual Property Rights whose period of
protection is limited by statutory law expire. For the purposes of this Agreement,
“Intellectual Property Rights” shall mean any and all intellectual property rights and similar
rights, regardless of whether registered in a public register or whether registrable, as
well as  — where appropriate — any applications with respect to such rights, including,
without limitation, patents, trademarks, utility models, design patents, semiconductor
protective rights (Halbleiterschutzrechte), plant varieties protective rights
(Sortenschutzrechte), domain names, proprietary business
descriptions (geschäftliche
Bezeichnungen), geographical indications of origin (geographische
Herkunftsangaben) and copyrights. In particular, Screenline holds free an unencumbered title
to all information and data collected and stored by Screenline on films and movies which are,
have been or shall be used for the Screenline Business.
	 
	5.13	 	Licenses. Screenline has not granted licenses or any other rights of use to third parties
with respect to any of the Intellectual Property Rights, and Screenline is under no obligation
to grant such rights of use. Schedule 5.13 contains a complete and correct list of all
licenses and other rights of use for Intellectual Property Rights granted by third parties to
Screenline, specifying any royalties, license fees or other compensation to be paid by
Screenline for such license.
	 
	5.14	 	Trade Secrets. At any time, Screenline has effectively protected as trade secrets any
Know-How relating to the Screenline Business against access by third parties. For the purposes
of this Agreement, “Know-How” means all information and data not present in the public domain
(held in whatever form, including, without limitation, information comprised in or
derived from formulae, designs, specifications, drawings, component lists,
manuals, instructions) relating to the business of an undertaking (including, without
limitation, procurement, research and development, information technology, quality management,
marketing, logistics, sales and distribution and customer

 

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	 	 	relationship). No licenses or other rights of use for the Know-How have been granted to
third parties.
	 
	5.15	 	Inventions, Developments and Work Products. Screenline has the unrestricted and
exclusive rights to all inventions, developments and other work products made by their
directors, employees, freelancers, service providers, contractors and other third parties
(including the third parties’ respective managing directors and employees) arising from any
activity for, or in the course of, the business of Screenline. In particular, Screenline has
exercised all rights under the German Act on Employee Inventions
(Arbeitnehmererfindungsgesetz) or similar legislation and fulfilled any
obligations under such legislation
	 
	5.16	 	Information Technology. Any computer hardware, software, networks and other information
technology used by or required to carry on the business operations of Screenline
(hereinafter referred to as the “Information Technology”) to the extent and in the
manner as heretofore operated, is either owned by or validly leased or licensed to Screenline.
The Information Technology has the necessary capacity to fulfill the requirements of the
Screenline Business. There have been no interruptions, outages or data loss in the respective
business of Screenline which have had a material adverse effect on the business, and there are
no defects in the Information Technology which are likely to have such effect. Screenline has
taken all measures customary for its business to prevent unauthorized access to the
Information Technology and/or impairment of the Information Technology by computer viruses or
similar programs. Screenline makes regularly and sufficiently backup files of the software,
data and databases and prevents such software, data and databases from third parties’ access.
	 
	5.17	 	Real Property, Office Lease. Screenline does not own
any real property (Grundstücke),
including, without limitation, proprietary (Wohnungseigentum), and is not entitled to any
rights similar to real property (grundstiicksgleiche Rechte). Screenline is authorized to use
its office rooms under a legally valid and enforceable lease agreement as attached hereto as
Schedule 5.17 (“Lease”). All obligations under the Lease have been fully, duly and
timely performed and complied with, and the Lease has not been cancelled, otherwise terminated
or materially amended or modified within the past twelve (12) months prior to the Signing
Date. In particular, the consummation of the transactions contemplated herein will not give
the counterparty to the Lease any right to terminate the Lease. Screenline will be able to
continue the use of its office rooms at least for further three (3) years at terms not
materially less favorable than those under the current Lease.
	 
	5.18	 	Other fixed Assets. All fixed assets
(Anlagevermögen) reflected in the lists of assets
attached hereto as Schedule 5.18 are legally and beneficially owned and lawfully
possessed by Screenline. Such fixed assets are not charged or

 

- 16 -

	 	 	otherwise encumbered with third party rights. Schedule 5.18 completely and
correctly lists all fixed assets legally and beneficially owned and lawfully possessed by
Screenline (including assets of low value and fully-depreciated assets) as of Signing Date.
These fixed assets described in Schedule 5.18 are in sound condition for the
purposes of operating and carrying on the Screenline Business to the extent and in the
manner as heretofore operated. With respect to such fixed assets, all routine maintenance
has been timely performed, and no relating capital expenditure has
been deferred.
	 
	5.19	 	Current Assets. All current assets (Umlaufvermögen) reflected in the Financial Statements or
acquired since 1 January 2006 by Screenline are legally and beneficially owned and lawfully
possessed by Screenline unless sold in the ordinary course of business. Such current assets
are not charged or otherwise encumbered with third party rights.
	 
	5.20	 	Inventory. The inventory (within the meaning of Section 266 para. 2 lit. B I of the German
Commercial Code) is in sound, serviceable, processable and marketable condition and sufficient
for the purposes of operating and carrying on the Screenline Business to the extent and in the
manner as heretofore operated.
	 
	5.21	 	Receivables. The receivables reflected in the Financial Statement 2005 will be fully
collectible without any further collection procedure within ninety (90) days from the Signing
Date with the exceptions of such receivables as listed in Schedule 5.21.
	 
	5.22	 	Customers and Supply of Screenline Data. Schedule 5.22 contains a complete,
correct and not misleading list of all customers of Screenline, as of Signing Date. There are
no circumstances making it reasonably likely that any of said customers will materially reduce
the volume of its previous commercial activity with Screenline. Within the past three years
prior to the Signing Date there has been no substantial change (apart from usual price
changes) in the basis or terms on which any such customer has been prepared to enter into
agreements with Screenline, and to PKay Krieg’s Best Knowledge no such change is expected.
Within the past three years prior to the Signing Date the supply of Screenline Data has been
constant and according to PKay Krieg’s Best Knowledge no such change is expected.
	 
	5.23	 	Bank Accounts. Schedule 5.23 contains a complete and correct list of all bank
accounts of Screenline and its balances as of Signing Date.
	 
	5.24	 	Insurances. Schedules 5.24(i) und (ii) contain a complete, correct and not misleading
list of all insurances taken out by, or for the benefit of, Screenline, its assets, business
operations, directors or employees. Such insurances cover all risks required by law to be
covered (Pflichtversicherungen) as well as, on a usual scale, all risks usually covered by
companies engaged in similar business

 

- 17 -

	 	 	as, and of a comparable size to, Screenline. All insurance contracts are valid, subsisting
and enforceable on part of Screenline, and there have not been any material amendments or
modifications to such insurance contracts within the past twelve (12) months prior to the
Signing Date. Both the respective policy holder and the insurer have timely, duly and
completely fulfilled all obligations under the respective insurance policies.
	 
	5.25	 	Agreements. Schedule 5.25 contains a complete and — with respect to all details
included therein — correct and not misleading list of all agreements (whether express or
implied and whether entered into in writing or orally, in each case as amended) Screenline is
party to and which have not yet been fully performed  — including any secondary,
accessory, contingent or future obligations — by both parties to such agreements. Each
of the forenamed agreements is valid, legally binding and enforceable and entered into at
arm’s length terms. As of the Signing Date, none of the agreements has been terminated or
materially amended; in addition, Screenline has not given or received any notice of ordinary
or extraordinary termination to or from any counterparty with respect to an agreement.
Neither Screenline nor any counterparty to any of the agreements has been within the past
three years prior to the Signing Date, or is currently, in breach of any obligation under any
such agreement. In particular, without limitation, neither Screenline nor any
counterparty is in default with any obligation under any such agreement.
	 
	5.26	 	Directors. The director service agreement
(Geschäftsführeranstellungsvertrag) between PKay
Krieg and Screenline was in force in the form as attached hereto as Schedule 5.26(i)
until 31 May 2006 and no resolution for the amendment besides the resolution attached hereto
as Schedule 5.26(ii) or any other amendment to this agreement has been made or agreed
upon between PKay Krieg and Screenline. Besides a direct insurance (Direktversicherung) of
which the insurance certificate is attached hereto as Schedule 5.26(iii) Screenline
has not entered into any other agreements, arrangements or commitments in favor or for the
benefit of its director.
	 
	5.27	 	Employees. Besides PKay Krieg, Screenline presently employs only two employees of whom the
employment contracts are attached hereto as Schedule 5.27(i). The attached employment
contracts are complete and correct, each in their current version. Screenline has not employed
any other persons besides the forenamed two present employees and the employees as named in
Schedule 5.27 (ii) and presently does not employ any other persons, neither as full or
part-time employees, as free-lancers, as apprentices or in any other relationship with Screenline. Besides a company pension scheme (Betriebliche Altersversorgung)
for the benefit of Franziska Backofen, attached hereto as Schedule 5.27(iii),
Screenline has not entered into any other company pension or retirement schemes or
other similar agreements commitments or arrangements in favor of or for the benefit of
its employees, besides the direct insurance for the benefit of PKay Krieg. Screenline has in
all material respects

 

- 18 -

 

duly and timely fulfilled all payment and other obligations vis-à-vis their
respective employees including its director PKay Krieg and any other former employee.

	5.28	 	Powers of Attorney. No powers of attorney to sign or to represent Screenline have been issued
to persons, companies or third parties, and are presently in force.
	 
	5.29	 	Taxes. All returns, statements, reports and forms of Screenline with respect to Taxes (within
the meaning of Section 7.1) have been, or will be prior to or on the Signing Date, in
accordance with all Regulations, duly (in particular completely and correctly) prepared and
duly and timely filed. All information required to be supplied to any Tax Authority has been
prior to or on the Signing Date, duly and timely supplied. All Taxes due and payable by
Screenline on such returns or any other legal grounds prior to or on the Signing Date have
been timely and fully paid. There are no tax-related investigations (suspending the expiration
of the term for the tax assessment), audits, actions, proceedings, claims or assessments
pending, proposed or threatened against or with respect to Screenline. Screenline has not
received any tax ruling or entered into any written and legally binding agreement or is
currently under negotiations to enter into any such agreement with any Tax Authority which
would affect the tax situation of Screenline in any period ending after the Signing Date.
	 
	5.30	 	Public Grants. No public subsidies, allowances, aids and other public grants, in particular,
without limitation, within the meaning of Article 87 of the EC Treaty (hereinafter
collectively referred to as the “Public Grants”) have been granted to Screenline. Screenline
has not claimed or received any payment under any suretyship granted by any governmental or
other public authority which may constitute Public Grants.
	 
	5.31	 	Legal Proceedings. There are no judicial, arbitration or administrative litigations or
other proceedings initiated, pending, imminent or intended to which Screenline is, directly or
indirectly, a party or which may otherwise result in an obligation or liability of (including,
without limitation, a right of recourse of any third party against) Screenline. Within the
past five years prior to the date of this Agreement, no proceedings have been finished. The
aforesaid shall apply mutatis mutandis to any judicial, arbitration or administrative
litigations or other proceedings against managing directors or employees of Screenline arising
from or in connection with their occupation with Screenline.
	 
	5.32	 	Product Liability. Screenline has not manufactured, sold, distributed or otherwise delivered
for the use of third parties, any product or service in a manner which could give rise to
liabilities or other obligations under product liability or warranty or other claims, and no
such liabilities or other obligations exist. No third party has asserted any claim against
Screenline based on product liability, warranty or any other legal cause arising from or in
connection with

 

- 19 -

the manufacturing, sale, distribution or other delivery of any product or service by
Screenline.

	5.33	 	Licenses, Concessions and Permits. The operation of Screenline’s business does not require
any license, concession or permit of any kind pursuant to the applicable statutory
regulations.

	5.34	 	Non-Competition. Screenline is not subject to any non-competition clause or any other
restriction of competition, whether contractually or otherwise.

	5.35	 	Compliance with Regulations. Screenline is, and has always been, conducted in full compliance
with all applicable Regulations (including with respect to environmental protection, product
safety and occupational health and safety). Neither the present business operations of
Screenline nor any product or service manufactured, sold, distributed or delivered by them
contravene or violate any applicable Regulations.

	5.36	 	Conduct of Business. From beginning of current fiscal year through the Signing Date and until
the Effective Date, the business operations of Screenline have been and will be conducted
exclusively in the ordinary course of business, with the standard of care of a prudent
merchant and consistent with prior practice. In particular, without limitation, Screenline has
not

	 	(1)	 	incurred any obligation or liability, absolute, accrued, to be accrued,
contingent or otherwise, whether due or to become due, exceeding the amount of EUR
10,000.00 in the individual case, except for the obligations or liabilities listed in
Schedule 5.36(1);
	 
	 	(2)	 	mortgaged, pledged, transferred or assigned for security purposes or subjected
to liens, charges or any other encumbrances any of its tangible or
intangible assets - whether to be shown in the balance sheet or not (bilanzierungsfähig) -, in each case
except as in accordance with the ordinary course of business and consistent with its
prior practice;
	 
	 	(3)	 	sold, transferred, agreed to transfer, leased to others or otherwise disposed
of any of its tangible or intangible assets — whether to be shown in the balance sheet
or not -, except for the assets listed in Schedule 5.36(3);
	 
	 	(4)	 	had any material change in its relations with third parties including its
employees, customers, suppliers or any governmental authorities or other public bodies;
	 
	 	(5)	 	made any change in the rate of salaries, bonuses or other incentives payable
to, or paid or agreed or promised to pay, conditionally or otherwise, any bonus, extra
compensation, pension or severance pay to, any managing director or employee of
Screenline, except for (i) a salary increase made to

 

- 20 -

	 	 	 	Franziska Backofen in March 2006 in the maximum amount of € 100.00 per month,
and (ii) the exchange of the employment agreement of PKay Krieg as described in Section
14.2.
	 
	 	(6)	 	increased or reduced its respective share capital or issued, sold, transferred
or agreed to issue, sell or transfer any shares or other securities, or issued, granted
or sold, or agreed to issue, grant or sell, any options, rights or warrants with
respect thereto;
	 
	 	(7)	 	made or agreed to make, any capital expenditures;
	 
	 	(8)	 	entered into Transactions other than in the ordinary course of business.

	5.37	 	Brokerage etc. Screenline is not under any obligation to pay any brokerage, finder’s fee,
commission, advisors’ fee, bonus, extra compensation, severance payment or other incentive to
any third party (including, without limitation, managing directors and employees of
Screenline) in relation to the execution or consummation of the Agreement.

	5.38	 	Accuracy of Information. All information supplied to Hollywood Media and its advisors by PKay
Krieg or Screenline or any advisor of Screenline to Signing Date is complete, correct and not
misleading. Any facts relating to Screenline and its business operations, which a prudent
merchant would in his reasonable judgment consider important in order to be able to properly
evaluate the chances and risks involved in the acquisition of Screenline’s shares, have been
fully disclosed to Hollywood Media and its advisors. At the Signing Date, there are no
material facts or circumstances which in the future could have a materially adverse effect on
Screenline or its business operations, except for general developments of the economy or the
market situation, and which are not disclosed in this Agreement.

	6.	 	  Remedies
	 
	6.1	 	  Restitution in Kind; Damages.

	6.1.1	 	If and to the extent any of the Guaranties set forth in
Section 5 is incomplete,
incorrect or misleading, PKay Krieg shall put Hollywood Media and/or (in Hollywood Media’s
absolute discretion) Screenline within a period of 30 Business Days of written notice by
Hollywood Media of such breach of Guaranty in such position as Hollywood Media or Screenline
(as the case may be) would have been in had the Guaranty given by PKay Krieg been complete,
correct and not misleading (restitution in kind; Naturalrestitution). To the extent that such
breach of Guaranty consists in the existence of a liability, Hollywood Media’s right to
demand restitution in kind shall include the right to demand a full indemnity with respect to
such Guaranty.

 

- 21 -

	6.1.2	 	If restitution in kind as contemplated in Section 6.1.1 is impossible, or
insufficient to fully compensate Hollywood Media, PKay Krieg shall pay monetary damages
(Schadenersatz in Geld) to Hollywood Media (and/or, in the Hollywood Media’s absolute
discretion, to Screenline). If restitution in kind is fully impossible, such monetary damages
shall substitute the restitution in kind; otherwise, monetary damages may be claimed by
Hollywood Media in addition to restitution in kind.

	6.1.3	 	If and to the extent that PKay Krieg fails to provide restitution in kind within
the period set forth in Section 6.1.1, Hollywood Media shall, in its absolute discretion,
in whole or in part and in lieu of its right to demand restitution in kind, have the right
to demand that PKay Krieg shall pay monetary damages to Hollywood Media (and/or, in
Hollywood Media’s absolute discretion, to Screenline) in such amount as would be necessary
to effect the restitution in kind. Until PKay Krieg has fully performed, Hollywood Media
may freely modify its claim.

	6.1.4	 	Any claims of Hollywood Media under this Section 6 are heretofore and hereinafter
collectively referred to as “Guaranty Claims”, and each of them as a “Guaranty Claim”.

	6.2	 	Exclusion of further Remedies
	 
	 	 	PKay Krieg and Hollywood Media agree that the Guaranty Claims under this Agreement
supersede and replace any statutory buyer’s rights, warranties or guaranties under
applicable law, and that the remedies for breach of Guaranties provided for by this
Agreement shall be the exclusive remedies available to Hollywood Media or Screenline, as
the case may be. Any claims resulting from statutory buyer’s rights, warranties or
guaranties are herewith excluded to the extent permitted by law.
	 
	6.3	 	“PKay Krieg’s Best Knowledge”
	 
	6.3.1	 	For the purposes of this Agreement, any fact or circumstance shall be deemed to exist
to the “PKay Krieg’s Best Knowledge” whenever a Relevant Person is, was or could have been
consciously aware (Kennen oder Kennenmüssen) of such fact or circumstance, including any fact
or circumstance the knowledge of which is attributable to PKay Krieg or Screenline under
general rules. For the purposes of this Section 6.3, “Relevant Persons” shall include any
individual who acts or has acted for PKay Krieg or Screenline in an advisory function in
connection with the preparation, negotiation or execution of this Agreement or the
transactions contemplated herein (including, without limitation, any attorneys-at-law and
tax advisors).

	6.3.2	 	To be “consciously aware” (Kennenmüssen) of facts or circumstances within the meaning of
Section 6.3.1 sentence 1 above shall particularly include (but is

 

- 22 -

not limited to) facts or circumstances the respective Relevant Persons would have been
aware of if they had thoroughly and diligently selected, instructed or interrogated their
staff members, or if any documents, files or records (whether printed, electronic or
otherwise) the Relevant Persons had access to in the ordinary fulfillment of their duties
were or are available in which such fact or circumstance is or was specifically referred
to.

	6.4	 	No Double Relief
	 
	 	 	All remedies, including the claim for specific performance under this Agreement,
shall be cumulative and not alternative, except as expressly agreed to the contrary between
the PKay Krieg and Hollywood Media.
	 
	6.5	 	No Quality Guaranties
	 
	 	 	In the unlikely event that (i) the provisions of Section 5 are, contrary to the
intention and explicit understanding of PKay Krieg and Hollywood Media, regarded and
construed as quality guaranties concerning the object of the purchase within the meaning of
Sections 443, 444 of the German Civil Code by a competent court or arbitration tribunal,
and (ii) the limitations of PKay Krieg’s liability contained in Section 6 are regarded,
wholly or partially, as contravening Section 444 of the German Civil Code, and (iii)
therefore PKay Krieg is refused to invoke and rely on the limitations of PKay Krieg’s
liability contained in Section 6, Hollywood Media, having consulted with its counsel,
hereby waives the right to assert claims going beyond the limitations of PKay Krieg’s
liability provided for herein. PKay Krieg accepts such waiver.
	 
	7.	 	Indemnity
	 
	7.1	 	Definitions
	 
	 	 	For the purposes of this Agreement, “Tax”/“Taxes” shall mean any taxes within the
meaning of Section 3 paras. 1 through 3 of the German Tax Code (Abgabenordnung), charges,
duties and levies of any kind including social security contributions and other public law
dues and public impositions of any kind imposed by any governmental authority or other
public body competent for the imposition of any such Tax (heretofore and hereinafter
referred to as the “Tax Authority”) or owed due to Regulations. For the purposes of this
Agreement, Taxes shall further include any payments made as party liable for Taxes and
payments to any other party pursuant to a tax sharing or indemnity arrangement, as well as
any interest and any penalties, additions to tax or additional amounts under applicable law
or imposed by a Tax Authority.
	 
	7.2	 	Indemnification

 

- 23 -

	 	PKay Krieg shall indemnify and hold harmless Hollywood Media and/or, at the
Hollywood Media’s discretion, Screenline from and against
	 
	 	(l)	any Taxes unpaid which have been or will be imposed on Screenline
attributable based on an “as-if assessment” to the period up to and including or
resulting from action taken on or prior to Effective Date;
	 
	 	(2)	any Taxes that will be imposed on Screenline caused by or connected with the
purchase and sale of a Lexus IS250 Limousine on 24 February 2006 pursuant to the
agreements as attached to this Agreement as Schedule 5.36(1);
	 
	 	(3)	any liability arising from or in connection with any breach of any Guaranty
contained in Section 5.29 above.

	7.3	 	Accruals
	 
	 	 	Any accrual made for Taxes of Screenline in the Financial Statement 2005 may be set and
credited against any claim by Hollywood Media under Section 7.2 above provided that such
accrual was specifically made for the Tax of Screenline giving rise to such claim.
	 
	7.4	 	Tax Benefit
	 
	 	 	If any circumstance or event giving rise to a claim under Section 7.2 (1) has given rise to
a reduction of any Tax liability on part of Screenline by means of a refund, set-off or
reduction of Taxes (hereinafter referred to as the “Tax
Benefit”), and if such Tax Benefit
would not otherwise have arisen, neither by taking into account any other potential Tax
Benefit including any Tax Benefit derived from subsequent assessment periods, the following
shall apply: the amount by which such Tax liability which would otherwise have arisen, is
reduced (hereinafter referred to as the “Relevant
Amount”) shall first be set off against
any payment then due on a claim under Section 7.2 (1) and, secondly, to the extent that the
Relevant Amount is not already exhausted, against payments to become due in the future on a
claim under Section 7.2 (1).
	 
	7.5	 	Exclusion of PKay Krieg’s Liability
	 
	 	 	PKay Krieg shall not be liable for any Taxes attributable to periods ending prior to or on
the Effective Date resulting from any change in the accounting and taxation practices made
by Screenline (including methods of submitting taxation returns) introduced after the
Effective Date, except if required under mandatory law or by applicable generally accepted
accounting principles.

 

- 24 -

	7.6	 	Additional Profit and Loss
	 
	 	 	Notwithstanding the provisions set forth in Section 7.2, any additional profit and loss
allocations resulting from any tax audit relating to periods ending prior to or on the
Effective Date shall not increase or reduce the Consideration as of Section 4 and shall not
entitle PKay Krieg to any additional profit distribution.
	 
	7.7	 	Other Indemnity
	 
	 	 	Furthermore, PKay Krieg shall indemnify and hold harmless Screenline and Hollywood
Media from and against any and all liabilities or obligations of any nature (whether
accrued, absolute, contingent, unasserted, inherited or otherwise) incurred or resulting
from occurrences prior to the Effective Date, unless those liabilities or obligations (i)
were disclosed, reflected or reserved against in the Financial Statements or (ii) disclosed
in Schedule 5.11.
	 
	8.	 	Expiration of Claims/ Limitation of Claims
	 
	8.1	 	Time Limits
	 
	 	 	All claims of Hollywood Media arising under this Agreement shall be time-barred
thirty-six (36) months after the Effective Date. Exempted here from are:

	 	8.1.1	 	All claims of Hollywood Media arising under Section 7.2 (Tax Indemnity) which
shall be time barred twelve (12) months after the date of the final, non-appealable
assessment concerning the respective Tax;
	 
	 	8.1.2	 	all claims of Hollywood Media in respect of liabilities arising from a breach in
respect of Sections 5.1 and 5.2 which shall be time barred on the tenth
(10th) anniversary of the Effective Date;
	 
	 	8.1.3	 	all claims of Hollywood Media arising as a result of willful or intentional
breaches of PKay Krieg’s obligations under this Agreement which shall be time
barred in accordance with the statutory rules in Sections 195, 199 German Civil Code,
if not any longer limitation period arises from subsections 8.1.1 and 8.1.2;

     (herein collectively “Time Limitations”).

	8.2	 	Suspension

 

- 25 -

	 	 	The expiry period for any claims of Hollywood Media under this Agreement shall be
suspended (gehemmt) pursuant to Section 209 German Civil Code as soon as Hollywood Media
has notified PKay Krieg in writing that it intends to bring a claim against PKay Krieg.
Such suspension shall expire six months from receipt of such notification by PKay Krieg
unless Hollywood Media commences judicial proceedings against PKay Krieg within such
period. Any statutory provisions concerning the suspension of claims shall remain
unaffected.
	 
	8.3	 	Knowledge of Purchaser
	 
	 	 	The provisions of, and legal principles contained in, Sections 442 of the German
Civil Code and 377 of the German Commercial Code shall not apply.
	 
	D.	 	SELLER’S COVENANTS
	 
	9.	 	No Deviation from the Ordinary Course of Business
	 
	 	 	From Signing Date until Effective Date, PKay Krieg shall procure that Screenline
operates its business only in the ordinary course of business, with the standard of care
of a prudent merchant and consistent with prior practice and not to deviate from such
ordinary course of business.
	 
	10.	 	Liabilities vis-à-vis Screenline
	 
	10.1	 	PKay Krieg shall fulfill and discharge any liabilities vis-à-vis Screenline existing as
of the Effective Date irrespective of their due date, in particular but not limited to her
liability to pay interests for a shareholders loan to Screenline in the amount of EUR
2,284.00, at the latest on or prior to the Effective Date.
	 
	10.2	 	Also Karl Krieg shall fulfill and discharge any liabilities vis-à-vis Screenline existing as
of the Effective Date irrespective of their due date at the latest on or prior to the
Effective Date.
	 
	11.	 	Transition of Business
	 
	 	 	PKay Krieg covenants that Screenline and the Screenline Business are duly
transferred over to the Hollywood Media on request of Hollywood Media following the
Effective Date, in particular, without limitation, that any information necessary for
Hollywood Media is available in order to effect a seamless transition of the Screenline
Business.
	 
	12.	 	Damages
	 
	 	 	PKay Krieg shall — irrespective of any fault on her part
(verschuldensunabhängig) —
indemnify and hold harmless Hollywood Media

 

- 26 -

	 	 	and/or, at Hollywood Media’s absolute discretion, Screenline, from and against
any and all losses arising out of or in connection with a breach of any of the
covenants set forth in this Section D.
	 
	E.	 	NON-COMPETITION, DIRECTOR SERVICE AGREEMENT
	 
	13.	 	Non-Competition Clause
	 
	13.1	 	PKay Krieg shall, for a period of three (3) years from the Effective Date, in any
area in which Screenline currently conducts business, not engage in any activity
which would, directly or indirectly, compete with or result in competition with
such present business operations. PKay Krieg shall not establish or acquire, or
acquire shares in, any business or business entity which would, directly or
indirectly, compete with the business operations of Screenline. It is understood,
however, that PKay Krieg shall be entitled to acquire (i) shares in Hollywood Media
and (ii) up to 5 % of the share capital of any corporation listed on a stock
exchange, provided that PKay Krieg is excluded from any control over the management
of such listed corporation.
	 
	13.2	 	In case of a breach of the covenants set forth in Section 13.1 Hollywood Media may
request that PKay Krieg refrains from any such future breaches. In
addition, PKay Krieg shall, upon request by Hollywood Media, put Hollywood Media (and/or, in Hollywood Media’s absolute discretion, Screenline) in such
position it would be in had the transaction violating such covenants been
undertaken for Hollywood Media’s account. In particular, without limitation,
any benefits and advantages on part of PKay Krieg taken of the breach of such
covenants shall be released and refunded. The claiming of further damages for
any losses incurred by Hollywood Media and/or any other company affiliated to
Hollywood Media (within the meaning of Section 15 of the German Stock
Corporation Act) due to actions prohibited by the aforesaid covenants shall
remain unaffected.
	 
	14.	 	Cooperation, Director Service Agreement
	 
	14.1	 	PKay Krieg and Hollywood Media shall cooperate with each other for a reasonable
period after the Effective Date to ensure the orderly transition of Screenline’s
business to Hollywood Media and to minimize any disruption to the business of
Screenline and PKay Krieg shall use her best efforts to execute and deliver or
procure to be done, executed and delivered all such further acts, deeds, documents,
instruments of conveyance, assignment and transfer and things as may be reasonably
necessary to implement the terms of this Agreement.
	 
	14.2	 	PKay Krieg is obliged to remain as managing director (Geschäftsführer) of
Screenline at least until 31 May 2009 and has entered prior to Signing Date into
the director service agreement (Employment Agreement) with Screenline as set

 

- 27 -

forth in Schedule 14.2(1). This new director service agreement fully and without the
right of any compensation of whatsoever, replaced the existing director service agreement of PKay
Krieg with Screenline as of 1 June 2006. Furthermore, PKay Krieg as sole shareholder of Screenline
resolved by shareholders’ resolution as of 7 June 2006 prior to the signing of this Agreement and
as attached as Schedule 14.2(ii) on the following: (i) Waiver of her exemption as managing
director from the restrictions of Section 181 German Civil Code
(BGB), (ii) affirmation of her
right as managing director to represent Screenline solely, (iii) Schedule of Responsibilities
(Geschäftsordnung) for PKay Krieg stating all her acts as managing director that require prior
approval of the shareholders’ meeting and (iv) the appointment of Rafi Gordon as further managing
director of Screenline with the right to represent Screenline solely and not exempted from the
restrictions of Section 181 German Civil Code (BGB).

	14.3	 	PKay Krieg guarantees and warrants that — as long as she
remains shareholder of Screenline —
she will neither resolve by shareholders’ resolution on anything contravening the forgoing
resolutions nor on their modification, overruling or rescission and that she will not perform any
acts as listed in the Schedule of Responsibilities without prior written approval of Hollywood
Media.
	 
	F.	 	ANNOUNCEMENTS, NOTICES, GOVERNING LAW
	 
	15.	 	Restriction of Announcements
	 
	 	 	PKay Krieg and Karl Krieg undertake that they will not make an announcement or disclosure of
information in connection with this Agreement unless required by applicable mandatory law or unless
Hollywood Media hereto has given its respective consent to such announcement or disclosure,
including the form of such announcement or disclosure, which consents may not be unreasonably
withheld and may be subject to conditions. If and to the extent any announcement or disclosure of
information regarding the subject matter of this Agreement is to be made under applicable mandatory
laws PKay Krieg and Karl Krieg shall not disclose any such information without prior consultation
with Hollywood Media.
	 
	16.	 	Notices
	 
	 	 	All notices and other communications hereunder shall be made in writing and shall be delivered or
sent by registered mail or courier to the addresses below or to such other addresses which may be
specified by any Party to the other Parties in the future in writing:
	 
	 	 	If to PKay Krieg:

 

 - 28 -

     Lausitzer Weg 12,

     23617 Stockelsdorf,

     Germany

     If
to Karl Krieg:

     Lausitzer Weg 12,

     23617 Stockelsdorf,

     Germany

     If to Hollywood Media:

     2255 Glades Road, Suite 221A

     Boca Raton, Florida 33431 USA

     Attention: Legal Department

     with each a copy to:

     Dr. Ulf Renzenbrink and Dr. Kristian J. Heiser

     Renzenbrink Raschke von Knobelsdorff Heiser

     Wexstrasse 16 

     20355 Hamburg

	17.	 	Governing Law/Jurisdiction
	 
	17.1	 	This Agreement shall be governed by, and be construed in accordance with, the laws of
the Federal Republic of Germany, except if the applicability of other law is mandatory.
	 
	17.2	 	The courts in Hamburg, Germany, shall have jurisdiction.
	 
	G.	 	MISCELLANEOUS
	 
	18.	 	Costs
	 
	 	 	All expenses, costs, fees and charges in connection with the transactions contemplated under this
Agreement including without limitation, legal services, shall be borne by the Party commissioning
the respective costs, fees and charges. All notarial fees incurred with the notarization of this
Agreement as well as all official fees charged by the cartel authorities in connection with the
merger clearances required under this Agreement shall be borne by PKay Krieg and Hollywood Media in
equal amounts. Sections 4.2 and 4.3 remain unaffected.

 

 - 29 -

	19.	 	Schedules
	 
	 	 	All Schedules to this Agreement or the Reference Deed, respectively, constitute an integral part of
this Agreement.
	 
	20.	 	Entire Agreement
	 
	 	 	This Agreement and the Schedules referred to under Section 19 above comprise the entire agreement
between the Parties concerning the subject matter hereof and supersede and replace all oral and
written declarations of intention made by the Parties in connection with the contractual
negotiations. Changes or amendments to this Agreement (including this Section 20) must be made in
writing by the Parties or in any other legally required form, if so required.
	 
	21.	 	Assignment
	 
	 	 	No Party shall be entitled to assign any rights or claims under this Agreement without the written
consent of the other Parties. Hollywood Media, however, may transfer or assign this Agreement or
any rights or obligations hereunder to any of its affiliated companies within the meaning of
Section 15 et seq. of the German Stock Corporation Act. In the event of such transfer or
assignment, Hollywood Media hereby guarantees the performance of the obligation of the transferee
or assignee under this Agreement.
	 
	22.	 	Interests
	 
	 	 	Interest payable under any provision of this Agreement shall be calculated on the basis of actual
days elapsed divided by 360.
	 
	23.	 	Business days
	 
	 	 	Business days (Werktage) (including, for the avoidance of doubt, Saturdays) and banking days
(Bankarbeitstage) shall be those prevailing in Frankfurt am Main.
	 
	24.	 	Third Party Rights
	 
	 	 	This Agreement shall not grant any rights to, and is not intended to operate for, the benefit of
third parties unless otherwise explicitly provided for herein.
	 
	25.	 	Headings
	 
	 	 	In this Agreement the headings are inserted for convenience only and shall not affect the
interpretation of this Agreement. English shall be the authoritative language for this Agreement,
provided, however, that where a German term has been inserted in quotation marks and/or italics in
this Agreement it alone (and

 

 - 30 -

	 	 	not the English term to which it relates) shall be authoritative for the purpose of the
interpretation of the relevant English term in this Agreement.

	26.	 	Severability
	 
	 	 	In the event that one or more provisions of this Agreement shall, or shall be deemed to, be invalid
or unenforceable, the validity and enforceability of the other provisions of this Agreement shall
not be effected thereby. In such case, the Parties hereto agree to recognize and give effect to
such valid and enforceable provision or provisions which correspond as closely as possible with the
commercial intent of the Parties. The same shall apply in the event that the Agreement contains any
gaps (Vertragslücken).
	 
	 	 	The persons appearing referred to the reference deed dated 7 June 2006 (roll of deeds no.
726/2006, notary Dr. Matthias Kleiser, Hamburg — heretofore and hereinafter referred to as the
“Reference Deed”) and declared that they know the content thereof including the schedules. The
original of the Reference Deed was present during notarization of this record. The persons
appearing waived their right to have the Reference Deed read aloud and to have a copy thereof
attached to this record. Hollywood Media herewith ratifies all declarations made by Ms. Madlen
Maiwald in the Reference Deed.
	 
	 	 	PKay Krieg, Karl Krieg and Hollywood Media agree that the schedules to the Reference Deed are the
Schedules mentioned in this Agreement, with exception of schedule 5.11 to the Reference Deed with
shall be superseded by Schedule 5.11 to this Deed.
	 
	 	 	This record including Schedule 5.11 was read aloud to the persons appearing by the notary, was
approved by the persons appearing and signed by them as follows:

	 	 	 
	/s/ Paula Kathryn

	 	[ILLEGIBLE]
	/s/ Maracin-Krieg
	 	 
	 
	 	 
	[ILLEGIBLE]
	 	 

/s/
Matthias Kleiser

NOTARY

[SEAL]Employment Agreement

 

Exhibit 10.2

EMPLOYMENT AGREEMENT

entered into by and between

	1.	 	Screenline Film- und Medieninformations GmbH (limited liability
company under German law), represented by its shareholders’ meeting,
Lausitzer Weg 12, 23617 Stockelsdorf, Germany,

 —  hereinafter referred to as the “Company”  —

and

	2.	 	Mrs. Paula Kathryn Maracin-Krieg,
Lausitzer Weg 12, 23617 Stockelsdorf, Germany,

On 17 September 1996, the shareholders’ meeting appointed Mrs. Maracin-Krieg as managing
director of Screenline Film- und Medieninformations GmbH, effective as of 17 September 1996. An
employment agreement dated as of 27 September 1996 and modified by shareholders’ resolution as of
31 December 2003 regulates the content of the present employment relationship between the Company
and Mrs. Maracin-Krieg. The agreement set forth below (“Employment Agreement”) shall replace the
employment agreement presently in force and shall regulate as of 1 June 2006 the new contents of
the employment relationship.

 

2

Art. 1

Appointment; Area of Responsibility

	1.	 	Mrs. Maracin-Krieg shall be responsible for aggregating and selling the Screenline Data,
providing customer service and support and generally running the day to day operation of the
Company. Mrs. Maracin-Krieg’s duties and responsibilities are described in more detail in the
Schedule of Responsibilities of the Management of the Company. The Schedule of Responsibilities may
be amended from time to time to reflect the development of the Company as well as its operational
requirements.
	 
	2.	 	Mrs. Maracin-Krieg shall perform her duties and responsibilities in compliance with all
statutory provisions, in particular in compliance with the German “GmbH-Gesetz” (Limited
Liability Companies Act) as well as the Articles of Association of the Company and the By-laws
(e.g. Schedule of Responsibilities) for the Management, as amended from time to time, and
devote all of her efforts, professional know-how and experience to the Company.
	 
	3.	 	Mrs. Maracin-Krieg shall represent the Company alone. The Company reserves the
right at any time to appoint further managing directors and to establish a different
arrangement regarding the Company’s representation.
Mrs. Maracin-Krieg shall not be exempt
from the restrictions imposed by Sec. 181 of the (Gennan) “BGB”
(Civil Code).

Art. 2

Compensation

	1.	 	Mrs. Maracin-Krieg shall receive the following compensation for her services:

	 	a)	 	a fixed annual salary in the gross amount of EUR 84,500.00 (eighty four thousand five
hundred Euros), payable in 12 equal monthly installments, in each case at the end of the
month;
	 
	 	b)	 	a bonus in the amount of 10% of the Company’s profit from ordinary business activities
(excluding extraordinary gains, before income taxes, but after all other taxes, not taking
into account Mrs. Maracin-Krieg’s bonus) that exceeds the
amount of EUR 169,000.00 (one
hundred sixty nine Euros), payable on an

 

3

	 	 	 	annual basis in arrears. Such bonus shall not exceed 100% of the fixed annual
salary stipulated in paragraph a). In the event of extraordinary developments
(e.g., the sale or acquisition of assets, operations and/or enterprises, merger or
spin-off of the Company, conclusion of group agreements, etc.), the shareholders’
meeting may at its reasonable discretion determine a different method for the
calculation of the performance-related bonus, if such a change is necessary to
preserve the fair and equitable nature of the Employment Agreement. The bonus shall
be due and payable on 31 March of each calendar year, however, not
before approval of the annual financial statements of the Company by the
shareholders’ meeting.
	 
	 	c)	 	Mrs. Maracin-Krieg acknowledges and agrees that the Company’s profit from ordinary
business activities shall be determined in good faith by the principal accounting officer
of Hollywood Media Corp., the parent corporation of the Company (“HMC”) (which person
currently is HMC’s Chief Accounting Officer), based upon (1) generally accepted accounting
principles in the United States (“GAAP”), (2) the Company’s financial statements prepared in
accordance with GAAP consistent with past practice to the extent permissible and
practicable (including as prepared in connection with the preparation and audit of HMC’s
audited consolidated financial statements (“HMC Financial Statements”) and (3) the HMC
Financial Statements.

	2.	 	The compensation provided for in Section 1 shall be deemed full consideration for all
services performed under this Employment Agreement, including any services Mrs. Maracin-Krieg
may for operational reasons be required to perform outside the Company’s regular business
hours. If this Employment Agreement should be terminated prior to the end of any given
calendar year, the compensation stipulated herein shall be payable on
a pro-rata basis. The
assignment or pledging of claims to compensation hereunder shall be subject to the prior
written approval
of the shareholders’ meeting.

Art. 3

Non-cash Benefits; Expenses

	1.	 	Mrs. Maracin-Krieg shall be provided with a company car (reference model: BMW Mini Cooper S)
for both professional and private use. The Company shall pay all

 

4

	 	 	costs, including insurance premiums, motor vehicle taxes, cost of repairs, fuel, oil,
etc. incurred in connection with the maintenance and use of the forenamed vehicle. Mrs.
Maracin-Krieg hereby waives any and all claims against the Company which may accrue to her,
her family members or any third parties in connection with the private use of the forenamed
vehicle, and agrees to indemnify the Company from or against any and all claims brought
against the Company by family members or third parties, to the extent that such claims are
not covered by the insurance policies taken out with regard to the company car. The
provisions of this paragraph may be supplemented by rules regarding the use of company cars
by managing directors, as amended from time to time.

	2.	 	The Company shall reimburse Mrs. Maracin-Krieg for all expenses and costs of travel
incurred within the scope of her employment, in accordance with the Company’s guidelines, as
applicable from time to time and in compliance with applicable tax laws.
	 
	3.	 	Mrs. Maracin-Krieg shall be responsible for all wage taxes payable on non-cash benefits
provided by the Company.

Art. 4

Prevention from Work

In the event that she is prevented from the performance of her duties for a considerable period of
time, Mrs. Maracin-Krieg shall inform the shareholders’ meeting without delay, also stating the
reasons for such incapacity.

Art. 5

Vacation

Mrs. Maracin-Krieg shall be entitled to a vacation of thirty (30) working days per calendar year.
For the purposes of this provision, “working day” shall mean all business days with the exception
of Saturdays. The duration and dates of each vacation shall be coordinated with any other managing
directors and agreed to by the shareholders’ meeting. The vacation days that

 

5

have accrued during any one calendar year shall be used by June 30 of the following
year, otherwise they shall be forfeited.

Art. 6

Secondary Employment; Covenant Not to Compete;

Conflicts of Interest

	1.	 	Any secondary employment, whether compensated or uncompensated, that may possibly affect the
interests of the Company shall require the prior approval of the shareholders’ meeting. The
foregoing provisions shall apply, mutatis mutandis, if Mrs. Maracin-Krieg assumes any
responsibilities on supervisory boards, advisory boards or similar bodies of enterprises not
affiliated with the Company (hereinafter referred to as “Further Responsibilities”). In case
of doubt, the opinion of the shareholders’ meeting shall be sought before taking on such
secondary employment. Before taking on any secondary employment, prior notice shall be given
to the shareholders’ meeting. If Mrs. Maracin-Krieg presently is party to a secondary
employment agreement of any kind or has assumed Further
Responsibilities, Mrs. Maracin-Krieg
shall give notice to the shareholders’ meeting within one week after entering into this
Employment Agreement. On request of the shareholders’ meeting Mrs. Maracin-Krieg will have to
terminate any such secondary employments and/or Further Responsibilities.
	 
	2.	 	Mrs. Maracin-Krieg shall not compete with the Company or any companies affiliated with
the Company for the duration of this Employment Agreement. In particular, Mrs.
Maracin-Krieg shall not acquire any interests in competitors of the Company, transact
business on behalf of such competitors, be it for her own account or for the account of
third parties, or provide any other services to such competitors. Excepted from the
foregoing shall be the acquisition of shares in publicly traded companies, provided that
such acquisitions do not give him a considerable influence over the actions of such
Company.
	 
	 	 	Furthermore, Mrs. Maracin-Krieg undertakes to strictly comply with all insider trading
regulations stipulated by the applicable law and/or by the Company, each as amended from
time to time.

 

6

	3.	 	Mrs. Maracin-Krieg agrees that for a period of one year
following termination of
this Employment Agreement she shall neither directly nor indirectly provide professional
services to any enterprise doing business within the geographic area of the Europe and North
America in the business of aggregating and selling global
entertainment industry data, form
an enterprise that is supposed to do or does such business in the forenamed geographic area or
take part in such formation. Mrs. Maracin-Krieg further shall not acquire any shares or
interests in such an enterprise within one year following termination of this Employment
Agreement, unless such acquisition is made for investment purposes only and provided that it
is safeguarded that no control over the management can be exercised. In consideration of Mr.
Maracin-Krieg’s observance of this covenant,
the Company shall pay Mrs. Maracin-Krieg each month 50% of the monthly compensation
stipulated in Art. 2 section 1 para. a) (Karenzentschadigung). Any salary or other
compensation that Mrs. Maracin-Krieg will earn or that
Mrs. Maracin-Krieg maliciously
refrains from earning shall be deducted from such compensation. Mrs. Maracin-Krieg agrees
to provide on request of the Company any information to the Company on the amount of her
salary or compensation and the address of her employer. Unless stipulated otherwise in the
foregoing provisions, Sec. 74 et seq. of the (German) “Handelsgesetzbuch” (Commercial Code)
shall govern the performance of this covenant not to compete, except that the one-year
period specified in Sec. 75 a of the Commercial Code shall be reduced to six months.
	 
	 	 	The covenant not to compete shall automatically become
ineffective when Mrs. Maracin-Krieg
attains the age of 65.
	 
	4.	 	Mrs. Maracin-Krieg acknowledges and agrees that, as part of her employment with the
Company, she will have access to certain entertainment industry databases that are owned by
the Company or certain subsidiaries of HMC, including but not limited to Baseline, Inc.
(“Baseline”). Mrs. Maracin-Krieg acknowledges that the data contained in these databases (the
“Protected Data”) shall be considered by her to be confidential, and she covenants and agrees
not to publish, disclose or reveal (whether directly or indirectly) any part of the Protected
Data to any entity or person for any purpose other than the fulfillment of her employment
obligations hereunder, or use the same for her own purposes or personal gain, at any
time during the term of this Employment Agreement or after its termination or expiration.
	 
	5.	 	For each violation of the covenant not to compete as set forth in Section 2 and Section 3
above and for each violation of the covenant not to publish, disclose or reveal

 

7

	 	 	Protected Data as set forth in Section 4 above, a penalty in the amount of USD (US
Dollars) 50,000.00 shall be assessed against Mrs. Maracin-Krieg. In the event of a
continuing violation, in particular in the event of the conclusion of any long-term
agreements in violation of this covenant not to compete, a penalty in the above amount
shall be assessed for each month in which such violation continues. The Company reserves
the right to assert any additional damage sustained as a result of a violation of the
covenant not to compete and/or of a violation of the covenant not to publish, disclose or
reveal Protected Data.
	 
	6.	 	In the interest of both parties, Mrs. Maracin-Krieg shall disclose to the shareholders’
meeting any conflict of interests arising in connection with the performance of her duties and
responsibilities. The foregoing provision shall apply, in particular, if customers, suppliers
or any other business partners of the Company or enterprises affiliated with the Company are
relatives, personal friends or close business associates of Mrs. Maracin-Krieg or stand in a
close relationship with such relatives, personal friends or close business associates. The
duty of disclosure shall not be limited to cases in which a conflict of interests may have a specific effect
on the performance of Mrs. Maracin-Krieg’s duties and responsibilities;
rather, the mere appearance of a conflict of interests shall be sufficient to give rise to
such a duty.

Art. 7

Duty of Confidentiality;

Exclusive License to Use Work Results; Inventions

	1.	 	Mrs. Maracin-Krieg shall keep all business affairs of the Company and enterprises affiliated
with the Company confidential, if such affairs are confidential in nature and/or have not
already become public knowledge. Mrs. Maracin-Krieg further shall not grant any third parties
access to the Company’s records and files. These obligations shall survive termination of this
Employment Agreement.
	 
	2.	 	All work results produced by Mrs. Maracin-Krieg in the performance of her duties and
responsibilities shall be the exclusive property of the Company. To the extent that such work
results are protected by copyright, Mrs. Maracin-Krieg hereby grants the Company the exclusive
and unlimited license to use such work results in all forms conceivable now or at a later date.
This exclusive license shall survive termination of this Employment Agreement. Mrs.
Maracin-Krieg shall not be entitled to any

 

8

	 	 	additional compensation for the exclusive license granted to the Company hereunder.
The compensation stipulated in this Employment Agreement shall be deemed full and
adequate consideration for the exclusive license granted to the Company hereunder.
	 
	3.	 	The Company shall be entitled to exclusive use of any inventions and proposed
technical improvements, as well as any patents, utility models and designs, etc., developed by
Mrs. Maracin-Krieg in the performance of her duties and responsibilities as managing director,
without additional payment. The (German) “Arbeitnehmererfindungsgesetz” (Act on
Employees’ Inventions) shall apply, except for the provisions providing for the inventor’s
claim to compensation.

Art.
8 Return of Property

Following
termination of this Employment Agreement or Mrs. Maracin-Krieg’s release from work,
Mrs. Maracin-Krieg shall, of her own accord, return to the Company all objects due to the Company
or enterprises affiliated with the Company in her possession, including all documents, notes and
instruments as well as other data stored by technical means, including any copies thereof. The
foregoing duty shall include the duty to return the company car provided to Mrs. Maracin-Krieg
pursuant to Art. 3 Section 1 of this Agreement. The right to retain any documents or objects defined in this section is hereby
expressly excluded. Mrs. Maracin-Krieg shall not be entitled to any compensation or damages for
returning Company property prior to termination of this Employment
Agreement. Upon termination of
her employment relationship Mrs. Maracin-Krieg shall affirm in writing the full discharge of her
duty to return property.

Art. 9

Term of Employment and Termination

	1.	 	This Employment Agreement shall begin on 1 June 2006 and is concluded for a
period of three years; consequently, it shall expire on 31 May 2009. Prior to the
above date, this Employment Agreement may be terminated for good cause only (sec. 626 of the
German “BGB” [Civil Code]) or by mutual agreement.
Notice of termination for good cause shall
be effective in writing only. If the appointment as managing director ends without
simultaneous termination of the Employment Agreement, Mrs. Maracin-Krieg

 

9

	 	 	shall be released from her duty to work for the remaining term of the Agreement,
provided that the Company shall continue to pay the compensation stipulated in Art. 2 section 1; the time of such release from the duty to work shall be taken into
account in calculating the managing director’s remaining claim to vacation. The Company
shall have the right at any time to release Mrs. Maracin-Krieg from her duty to work (such
release being either irrevocable or in a form that can be revoked), provided that the
Company continues to pay the contractual compensation due to Mrs. Maracin-Krieg pursuant to
Art. 2 section 1. In the event of an irrevocable release of
Mrs. Maracin-Krieg from work,
the time of such release shall be taken into account in calculating the managing director’s
claim to vacation.
	 
	2.	 	If the parties mutually agree on an extension of the term of office agreed upon in Section 1,
this Employment Agreement shall remain in effect for such extension
of the term of office,
unless otherwise agreed by the parties in connection with the
extension. Mrs. Maracin-Krieg
shall contact the shareholders’ meeting as regards the extension of her term of office and
this Employment Agreement 12 months prior to expiration of this Agreement. No later than 9
months prior to the end of Mrs. Maracin-Krieg’s term of office, the shareholders’ meeting
shall notify Mrs. Maracin-Krieg whether and, if so, under what terms and conditions her
appointment as managing director and her employment agreement with the Company will be
extended.
	 
	3.	 	In the event that Mrs. Maracin-Krieg should become
permanently disabled during her term of
employment, this Employment Agreement shall expire as of the date
such permanent disability is
established. Permanent disability within the meaning of this section shall mean that Mrs.
Maracin-Krieg is no longer able to perform her duties and responsibilities due to illness or
accident. In making the relevant
determination, Mrs. Maracin-Krieg’s special duties and responsibilities, as well as the
special demands on her, as a member of the Management, shall be taken into consideration.
The determination of permanent disability shall be made by the shareholders’ meeting in
accordance with the above and based on the opinion of a physician.
Mrs. Maracin-Krieg
hereby consents to undergo a physical examination by such physician, and agrees to release
such physician from the duty of medical confidentiality to the extent necessary for the
purpose stipulated above. The examining physician shall be selected by mutual agreement. If
no such agreement can be reached, the examining physician shall be appointed by the
President of the Medical Association of Hamburg. If the permanent disability of Mrs.
Maracin-Krieg is not caused due to the fault of her own, the Company will continue the
payment of 50% of the compensation stipulated in Art.

 

10

	 	 	2 Sec. l.a) for a period of six months following the expiration of this Employment
Agreement, however, not any longer than until 31 May 2009.

Art. 10
Direct Insurance
(Direktversicherung)

	1.	 	The Company entered into a direct insurance
(Direktversicherung) for the benefit of Mrs.
Maracin-Krieg as attached hereto as Annex 10 which will remain in force subject to the
following Sections of this Art. 10 (“Pension Promise”).
	 
	2.	 	The Pension Promise is within the binding provision of the Improvement of Company Benefit
Schemes (Gesetz zur Verbesserung der betrieblichen Altersversorgung — BetrAVG)
at any time revocable.
	 
	3.	 	The Company reserves the right to reduce or to cease the payment of the insurance premiums in
case of substantial reasons, in particular in case of a substantial deterioration of the
economic situation of the Company; in such a case Sec. 4 shall apply accordingly.
	 
	4.	 	If this Employment Agreement is terminated before the occurrence of the insured event the
claim against the insurance is limited to such benefits that result from the payment of the
insurance premiums until the date of the termination of this Employment Agreement (Sec. 2 para 2 sentence 2 BetrAVG). Mrs. Maracin-Krieg has the right to continue the
payment of the insurance premiums or to convert the insurance into an insurance free of
premium.
	 
	5.	 	Any mortgaging, assignment or pledging of the insurance claim is excluded.

Art.
11
Final Provisions

	1.	 	This Employment Agreement shall supersede all former agreements regarding the
employment relationship that may hitherto have been concluded by the parties. In
particular the parties agree, that the employment agreement between
Mrs. Maracin-Krieg
and the Company as of 27 September 1996 and modified by shareholders’

 

11

	 	 	resolution as of 31 December 2003 is terminated with signing this agreement with effect as
of 31 May 2006. This Employment Agreement contains all agreements and arrangements between
the parties; there are no subsidiary side agreements.
	 
	2.	 	Modifications of and/or amendments to this Employment Agreement shall only be valid if made
in writing. This shall also apply to the cancellation or amendment of the requirement for the
written form.
	 
	3.	 	If any provision hereof is or becomes invalid, the validity of the other provisions hereof
shall not be affected thereby. In such a case, the invalid provision shall be replaced with a
valid provision which is as consistent as possible with the economic purpose of the invalid
provision intended by the parties to this Employment Agreement.
	 
	4.	 	Mrs. Maracin-Krieg acknowledges receipt of one
counter-part of this Employment
Agreement signed by each party hereto on this day.

Hamburg, 7 June 2006

Place, date

Screenline Film- und

Medieninformations GmbH,

represented by its shareholders’ meeting

Paula Kathryn Maracin-Krieg

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