Document:

exv10w48

Exhibit 10.48

BUYOUT AGREEMENT

     This
Buyout Agreement (this “Agreement”) is entered into
as of November 23, 2009, by
and among H & W MOVIE PARTNERS, LLC, a Delaware limited liability company (“HWMP”), THE
FILM DEPARTMENT HOLDINGS LLC, a Delaware limited liability company (“Holdings”), THE FILM
DEPARTMENT LLC, a Delaware limited liability company (the “Company”), the other Company
Parties (as defined in the Forbearance Agreement referred to below) party hereto, UNION BANK, N.A.,
in its capacity as collateral agent for Holders (in such capacity, together with its successors and
assigns, the “Collateral Agent”), and the Holders set forth on the signature pages to this
Agreement (each a “Holder” and collectively, the “Holders”).

PRELIMINARY STATEMENTS

          (A) Holdings, Company, Collateral Agent and Holders are parties to that certain Securities
Purchase Agreement dated as of June 27, 2007 (as amended, restated, supplemented or otherwise
modified from time to time prior to the date hereof, 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 (collectively, the “Forbearance Agreement”) (the
“Securities Purchase Agreement”). Capitalized terms used herein and not otherwise defined
shall have the respective meanings ascribed to them in the Securities Purchase Agreement or the
Forbearance Agreement, as applicable.

          (B) Holdings has advised Collateral Agent and Holders that it is seeking to consummate (1) an
initial public offering of securities of Holdings (following, among other things, its conversion
to, or merger with, a Delaware corporation (such resulting corporation, which shall be a successor
in interest to all of Holdings’ obligations hereunder and under any other Note Document,
hereinafter, the “Delaware Company”)) (the “IPO”) or (2) a private equity
investment in Holdings (the “Private Equity Investment”), in either case on or before April
1, 2010, and in an amount that in the aggregate will generate net cash proceeds: (a) sufficient to
finance the Initial IPO Cash Paydown or the Initial Private Equity Investment Cash Paydown (each as
defined below), as applicable; and (b) determined in good faith by Holdings’ Board of Directors to
be sufficient to commence the proposed U.S. distribution business of Company and otherwise to
provide for the operating needs of Holdings (exclusive of HWMP’s capital commitments to fund
overhead and development costs referred to in clauses (3) and (4) below) (the IPO
or Private Equity Investment shall hereinafter be referred to as the “Equity Transaction”),
and, in connection therewith, has requested, among other things, that Collateral Agent and Holders
consent and agree to the following (and, subject to the terms and conditions set forth in this
Agreement, Collateral Agent and Holders are willing to do so):

               (1) (a) upon and contemporaneous with the execution and delivery of this Agreement by all
parties hereto, the redemption of the Warrants for an aggregate purchase price of $1; and (b) a
Change of Control transaction pursuant to which HWMP will have the right to appoint a majority of
the members of the Board of Directors of Holdings or become the beneficial owner of 50.1% or more
of the Voting Stock of Holdings;

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               (2) the maintenance of the Overhead Reserve Account during the period from October 15, 2009,
through March 31, 2010 (the “HWMP Period”), and the disbursement of any funds on deposit
therein to Company from time to time in accordance with the Forbearance Agreement to fund all
overhead obligations that are set forth in the Interim Operating Budget (which, for all purposes of
this Agreement, shall be deemed to include the “Optional Overhead Budget” for the months of January
through March 2010, attached thereto) (collectively, the “Full Operating Budget”), in
consideration of:

                    (a) HWMP’s agreement to fund in immediately available funds on the Effective Date (i) $225,000
into Company’s operating account for payment of the base salaries and benefits of Mark Gill and
Neil Sacker for November and December 2009 (the “Key Executive Effective Date Funding
Amount”), (ii) an amount equal to the lesser of (A) $975,000 or (B) the aggregate outstanding
amount of the Senior Obligations (as defined in the Forbearance Agreement) on the Effective Date
(such lesser amount, the “Senior Obligations Effective Date Funding Amount”) into the
Collection Account for application as herein provided and (iii) if the Senior Obligations Effective
Date Funding Amount is less than $975,000, then an amount equal to (A) $975,000, minus (B)
the Senior Obligations Effective Date Funding Amount (the “Eton Park Effective Date Funding
Amount”) to an account designated by Collateral Agent for distribution to the Holders to be
applied against the EP Obligations (as defined below) (the Key Executive Effective Date Funding
Amount, the Senior Obligations Effective Date Funding Amount and the Eton Park Effective Date
Funding Amount shall hereinafter collectively be referred to as the “Effective Date Funding
Amounts”); and

                    (b) the agreement of the Company Parties to permit (promptly following the date on which the
Senior Obligations are repaid in full in cash) an amount equal to $225,000 to be disbursed out of
the Overhead Reserve Account to an account designated by Collateral Agent for distribution to the
Holders to be applied against the EP Obligations;

               (3) with respect to any persons employed by Company Parties on October 15, 2009, (a) pursuant
to valid employment agreements, or (b) as at-will employees without employment agreements, and in
each case whose employment is not presently scheduled to continue throughout the HWMP Period
pursuant to the Full Operating Budget (or, with respect to Mark Gill and Neil Sacker for the months
of November and December 2009, whose salaries and benefits are not provided to be paid out of
amounts on deposit in the Overhead Reserve Account) (“Non-Scheduled Employees”), if HWMP
agrees with Holdings and Company that any such Non-Scheduled Employees should be retained for all
or part of the time during the HWMP Period for which they are not scheduled to be retained pursuant
to the Full Operating Budget (or, with respect to Mark Gill and Neil Sacker for the months of
November and December 2009, should have their salaries and benefits paid for such months) (each, a
“Non-Scheduled Period”), to the extent that HWMP capitalizes Company Parties in an amount
sufficient for the payment of all amounts to be incurred in connection with the employment of such
individuals, including, without limitation, 100% of all salaries, taxes, benefits and other costs
associated with such Non-Scheduled Employees during the Non-Scheduled Period applicable to each
such Non-Scheduled Employee (the “Non-Scheduled Personnel Costs”) as provided herein, the
incurrence by Company Parties of such Non-Scheduled Personnel Costs;

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               (4) with respect to film or other entertainment projects and properties owned, optioned and/or
in development by Company Parties on October 15, 2009 (“Current Projects”), if HWMP agrees
with Holdings and Company that additional development should be done on any such Current Projects
during the HWMP Period (other than development for which Company has contracted prior to October
15, 2009, and for which payments are scheduled as part of the Full Operating Budget)
(“Non-Scheduled Development”), and HWMP pays for or capitalizes Company Parties to cover
all costs associated with such Non-Scheduled Development (“Non-Scheduled Development
Costs”) as provided herein, the incurrence by Company Parties of such Non-Scheduled Development
Costs;

               (5) the purchase by HWMP (or any direct or indirect Subsidiary thereof) of all right, title
and interest in and to the motion picture tentatively entitled “Earthbound” (“Earthbound”)
free and clear of the liens created by the Note Documents on the terms and conditions set forth in
the Forbearance Agreement, as modified by this Agreement;

               (6) the discharge of all “Obligations” as defined in the Securities Purchase Agreement as
amended by the Forbearance Agreement (“EP Obligations”) (as to which the parties agree that
the aggregate outstanding amount as of October 31, 2009, was $44,020,647.19) (other than those
Obligations that are expressly stated to survive the termination of any of the Note Documents), the
release of the liens created by the Note Documents in all Collateral and the concomitant
termination of the Note Documents (except for those provisions therein that by their express terms
survive the termination thereof), effective immediately upon (a) the receipt in good funds by
Holders (or their designees) of the Initial IPO Cash Paydown or the Initial Private Equity
Investment Cash Paydown (each as defined below), as applicable, payable out of the proceeds of the
Equity Transaction, and (b) the execution and delivery by Delaware Company (as applicable),
Holdings and the other Company Parties, on the one hand, and Collateral Agent and Holders, on the
other hand, of a mutual general release as herein provided; and

               (7) (a) Company’s execution of that certain Multi-Picture Sales Agency Agreement dated as of
October 21, 2009, by and between Weinstein Global Film Corp. (“Weinstein”) and Company (the
“Sales Agency Agreement”) pursuant to which Company shall be obligated to pay to Weinstein
a non-deferred sales agency fee (“Agency Fees”) of 7.5% of 100% of Collections from the
exploitation of the “Rights” (as such term is defined in the Sales Agency Agreement) in and to the
motion picture currently entitled “Law Abiding Citizen” (“LAC”) in the “Territories” (which
is defined in the Sales Agency Agreement as Italy, France and Japan and all other countries and
territories customarily included in a license in each such territory in the motion picture
industry) with respect to license agreements entered into for any such Territory after October 21,
2009, and (b) the disbursement out of the Collection Account of such Agency Fees to an account in
the name of Weinstein to be designated by Company in writing to the Credit Agreement Administrative
Agent (or, after repayment in full in cash of the Senior Obligations, Collateral Agent) for payment
on behalf of Company of such Agency Fees prior to the application of any such Collections as
otherwise provided in the Waterfall (as defined in the Forbearance Agreement).

     NOW, THEREFORE, in consideration of the foregoing and of the agreements, promises and
covenants set forth below, the parties hereto agree as follows:

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AGREEMENT

1. REDEMPTION OF WARRANTS AND CONSENT TO CHANGE OF CONTROL.

     (a) Upon and contemporaneous with the execution and delivery of this Agreement by all parties
hereto, each Holder shall cause its designee to redeem the Warrants for an aggregate purchase price
of $1 and in connection therewith agrees to execute and deliver to Holdings that certain Redemption
Agreement for Warrants to Purchase Class C Units in the form attached hereto as Exhibit A
(the “Redemption Agreement”) and surrender the original Warrants held by it for
cancellation by Holdings (or, in the event of the loss, theft or destruction thereof, a Lost
Warrant Affidavit and Indemnity in the form attached hereto as Exhibit B (the “Lost
Warrant Affidavit”). In the event that the Warrants have been so redeemed and the
recapitalization of the equity interests of Holdings (the “Recapitalization”) described in
and on substantially the terms set forth in Exhibit B to that certain Equity Investment and
Recapitalization Summary of Terms and Conditions dated as of November 12, 2009, and attached hereto
as Exhibit C (the “Equity Investment Summary”), shall not have occurred within the
period specified in the last paragraph of Section 6 hereof, then Holdings promptly
thereafter shall issue to the holder of the Warrants so redeemed for no additional consideration a
new Warrant to purchase 1,538 Class C Units of Holdings and otherwise on identical terms to the
Warrants so redeemed by such holder. In the event that the Warrants have been so redeemed and an
Equity Transaction is not timely consummated in accordance with this Agreement by April 1, 2010,
Delaware Company or Holdings, as applicable, shall not issue any replacement warrants or other
securities to any holder of warrants redeemed in connection with the Recapitalization without the
express prior written consent of the holder of the Warrants so redeemed; provided, that if
the holders of any other warrants that are redeemed in connection with the Recapitalization are
thereafter issued replacement warrants or other equity interests (or securities convertible into or
exchangeable for equity interests) in Delaware Company or Holdings, as the case may be, then:

          (i) if Holdings has not been converted to, merged with or acquired by (directly or indirectly)
Delaware Company, Holdings promptly thereafter shall issue to the holder of the Warrants so
redeemed replacement warrants to purchase units in Holdings having substantially similar terms and
rights as those set forth in the redeemed Warrants so that, after such issuance, the holder of the
Warrants so redeemed possesses and enjoys voting and consent rights equivalent in all respects to
those it presently enjoys as holder of the Warrants, which replacement warrants shall entitle the
holder of the Warrants so redeemed to receive upon exercise thereof units in Holdings representing
that percentage ownership of Holdings as the holder of the Warrants so redeemed would have received
had the Warrants not been so redeemed and had been exercised immediately prior to consummation of
the Recapitalization; provided further, that the percentage ownership of Holdings
represented by the number of units for which such replacement warrants would be exercisable would
be subject to dilution as a result of any and all equity investments in Holdings in the same
proportion as the percentage ownership of Holdings represented by the Class B Units of Holdings
would be subject to such dilution as described more fully in the Equity Investment Summary; and

          (ii) if Holdings has been converted to, merged with or acquired by (directly or indirectly)
Delaware Company, Delaware Company promptly thereafter shall issue to the holder

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of the Warrants so redeemed replacement warrants to purchase common stock in Delaware Company so
that, after such issuance, the holder of the Warrants so redeemed possesses and enjoys voting and
consent rights applicable to the common stock for which such replacement warrants are exercisable
on an as exercised basis, which replacement warrants shall entitle the holder of the Warrants so
redeemed to receive upon exercise thereof common stock in Delaware Company representing that
percentage ownership of Delaware Company as the holder of the Warrants so redeemed would have
received had the Warrants not been so redeemed and had been exercised immediately prior to
consummation of the Recapitalization; provided further, that the percentage ownership of
Delaware Company represented by the number of shares of common stock for which such replacement
warrants would be exercisable would be subject to dilution as a result of any and all equity
investments in Holdings prior to its conversion to or merger with Delaware Company in the same
proportion as the percentage ownership of Delaware Company represented by the number of shares of
common stock into which the Class B Units of Holdings have been converted or exchanged would be
subject to such dilution as described more fully in the Equity Investment Summary.

All references herein to “percentage ownership” shall mean percentage ownership on a common
equivalent and fully diluted basis. In addition to any other rights or remedies available to it
hereunder or at law or in equity, the holder of the Warrants shall be entitled to seek injunctive
relief and/or obtain specific performance of the provisions of this Section 1(a) or other
equitable relief in the event of a breach by Delaware Company (as applicable) or Holdings of this
Section 1(a).

          (b) Collateral Agent and Holders hereby consent and agree to a Change of Control transaction
pursuant to which HWMP will have the right to appoint a majority of the members of the Board of
Directors of Holdings or become the beneficial owner of 50.1% or more of the Voting Stock of
Holdings.

2. AGREEMENT BY HWMP TO FUND OVERHEAD OBLIGATIONS OF HOLDINGS AND COMPANY.

     (a) HWMP hereby agrees to fund the Effective Date Funding Amounts in immediately available
funds on the Effective Date into the applicable accounts specified in Preliminary Statement
B(2)(a). Collateral Agent and each Holder hereby agree that funds from the Overhead Reserve
Account, which as of November 10, 2009, had a balance of $984,435.72, shall continue to be
disbursed to Holdings during the HWMP Period and otherwise in accordance with the Forbearance
Agreement to be utilized in accordance with the Full Operating Budget. Notwithstanding any
contrary term or provision set forth in the Forbearance Agreement or any other Second Lien
Document, the Senior Obligations Effective Date Funding Amount shall be applied against the Senior
Obligations (as defined in the Forbearance Agreement). Promptly following the date on which the
Senior Obligations are repaid in full in cash, Collateral Agent shall cause an amount equal to
$225,000 to be disbursed out of the Overhead Reserve Account to an account designated by
Collateral Agent for distribution to the Holders to be applied against the EP Obligations. Any
funds remaining in the Overhead Reserve Account after March 31, 2010, shall be disbursed to an
account designated by Collateral Agent for distribution to the Holders to be applied against the
EP Obligations. The Company Parties agree they shall not incur any overhead obligations or

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expenditures during the HWMP Period, except for those that are made (i) in accordance with
the Full Operating Budget, or (ii) pursuant to Sections 2(b) or 25 hereof.
Notwithstanding any contrary term or provision set forth in the Forbearance Agreement or any other
Second Lien Document, no Holder shall have any obligation to advance funds for any overhead
obligations of the Company Parties (including any obligation in connection with the base salary
and benefits for Mark Gill and Neil Sacker for November and December 2009).

     (b) If HWMP agrees with Holdings and Company that any Non-Scheduled Employee(s) should be
retained for all or part of the Non-Scheduled Period(s) (or, with respect to Mark Gill and Neil
Sacker for the months of November and December 2009, should have their salaries and benefits paid
for such months), then: (i) Holdings shall provide Holders with a schedule of such Non-Scheduled
Employees and the times during such Non-Scheduled Periods when Holdings expects to retain such
Non-Scheduled Employees (or, with respect to Mark Gill and Neil Sacker for the months of November
and December 2009, to pay their salaries and benefits) (which schedule shall be updated from time
to time by Holdings to the extent necessary to correct any information set forth therein); (ii)
HWMP shall, prior to the commencement of such Non-Scheduled Period(s), fund directly to a deposit
account (for overhead expenses) in which the Collateral Agent has a perfected security interest
(“Pledged Overhead Account”) (it being understood and acknowledged by the parties hereto
that Company’s current operating account shall qualify as a Pledged Overhead Account for all
purposes hereunder) an amount equal to all Non-Scheduled Personnel Costs associated with each
applicable Non-Scheduled Employee for one payroll period, to be held in reserve, plus all
Non-Scheduled Personnel Costs associated with each applicable Non-Scheduled Employee for the first
payroll period of such Non-Scheduled Period; and (iii) thereafter, HWMP shall, on or prior to the
commencement of each succeeding payroll period, fund directly to the Pledged Overhead Account an
amount equal to all Non-Scheduled Personnel Costs associated with each applicable Non-Scheduled
Employee for such payroll period. Subject to and conditioned upon adherence to the foregoing
provisions of this Section 2, Collateral Agent and Holders hereby consent to the
incurrence of such Non-Scheduled Personnel Costs by Company Parties. For purposes of clarity, the
parties agree that the provisions of this Section 2(b) shall not be deemed to permit (x)
the employment of any employees, consultants or independent contractors by Company Parties other
than the Non-Scheduled Employees during the Non-Scheduled Period, or (y) any extension, renewal or
modification of the obligations of Company Parties to, or the terms of employment of, any employee
pursuant to such employee’s current employment contract or otherwise (other than modifications
that, at any time prior to the receipt by Holders of the Initial IPO Cash Paydown or the Initial
Private Equity Investment Cash Paydown (each as defined below), as applicable, do not increase any
such obligations or otherwise adversely affect Company Parties), and Holders do not consent
thereto. HWMP, Holdings and the Company acknowledge and agree for Holders’ benefit that any
monies paid to or on behalf of any Company Party by HWMP pursuant to this Section 2 are
intended to be and shall be deemed to be capital contributions of equity by HWMP and shall not for
any purpose be construed to be, and HWMP irrevocably waives any right to hereafter claim such
monies are or were intended to constitute, debt of any nature repayable to it by any Company
Party.

3. INCURRENCE OF CERTAIN DEVELOPMENT COSTS. If HWMP agrees with Holdings and Company that
any Non-Scheduled Development should occur with respect to any

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Current Project(s), HWMP shall, on or before the first date any Company Party enters into any
Contractual Obligation or incurs any liability for Non-Scheduled Development with respect to any
Current Project, fund directly to a separate deposit account (for development expenses) in which
the Collateral Agent has a perfected security interest (“Pledged Development Account”) an
amount that HWMP, Holdings and Company estimate will be sufficient to cover all Non-Scheduled
Development Costs that any Company Party is or will be obligated or liable to expend (without
further discretion on the part of any Company Party) in connection with all Non-Scheduled
Development during the HWMP Period, whether such Non-Scheduled Development Costs are to be incurred
during or after the HWMP Period (such as, by way of example only, amounts required in connection
with the delivery of any screenplay rewrites or polishes) (such Non-Scheduled Development Costs,
the “Committed Costs”). Subject to and conditioned upon: (a) HWMP’s and the Company
Parties’ adherence to and performance of their respective obligations under the foregoing
provisions of this Section 3; (b) the agreement of HWMP and all Company Parties that all
rights to the results and proceeds of all Non-Scheduled Development shall inure solely to the
benefit of the Company Party holding rights in such Current Project; and (c) the delivery to
Holders by Holdings or Company, prior to the incurrence of any Contractual Obligation or liability
or payment for any Non-Scheduled Development, of a notice of the proposed Non-Scheduled Development
accompanied by the proposed agreement with a third party(ies) with respect thereto, together with
the most recent statement or other evidence of the balance in the Pledged Development Account
showing sufficient funds to cover all Committed Costs related to such Non-Scheduled Development;
and notwithstanding any contrary provision set forth in the Securities Purchase Agreement or any
other Note Document, Collateral Agent and Holders hereby consent to the incurrence by the Company
Party of Non-Scheduled Development Costs that do not exceed, in the aggregate, the balance in the
Pledged Development Account. For purposes of clarity, the parties agree that the provisions of
this Section 3 do not apply to the incurrence of any development costs in connection with
Current Projects that are not incurred in accordance with this Section 3 or any development
costs whatsoever with respect to film or other entertainment projects other than Current Projects,
and Holders do not consent thereto. Further, if an Equity Transaction is not consummated on or
before April 1, 2010, then the parties agree that (x) any development done on any Current Projects
pursuant to this Section 3, and all rights to the results and proceeds therein and thereto,
shall inure solely to the benefit of the Company Party holding rights therein, as applicable,
without any obligation to reimburse or otherwise compensate HWMP with respect thereto, and (y) any
monies deposited by HWMP into and remaining on deposit in the Pledged Development Account that are
not needed to defray Committed Costs shall be promptly disbursed to HWMP. HWMP, Holdings and the
Company acknowledge and agree for Holders’ benefit that any monies paid to or on behalf of any
Company Party by HWMP pursuant to this Section 3 are intended to be and shall be deemed to
be capital contributions of equity by HWMP and shall not for any purpose be construed to be, and
HWMP irrevocably waives any right to hereafter claim such monies are or were intended to
constitute, debt of any nature repayable to it by any Company Party, subject only to the exception
provided in Section 3(y) above.

4. PURCHASE BY HWMP OF “EARTHBOUND” ASSETS. Collateral Agent and Holders hereby consent to
the sale by the Company Parties and the purchase by HWMP (or any direct or indirect Subsidiary
thereof that is not a Company Party) of all right, title and interest in and to Earthbound (the
“Earthbound Rights”) free and clear of all liens created by the Note Documents, at any time
after the Effective Date hereof and on or before April 1, 2010 (but prior

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to the incurrence by any Company Party of any expenses or obligations on or in connection with
Earthbound), for a cash purchase price of $150,000 (to be paid as provided in the Intercreditor
Agreement), and otherwise on the terms and conditions set forth in an acquisition agreement to be
negotiated in good faith by the parties hereto and in form and substance reasonably satisfactory to
the Required Holders (the “Earthbound Acquisition Agreement”), but in all respects subject
to and conditioned upon the execution and delivery by a representative of Holders and HWMP (or the
applicable Subsidiary thereof purchasing the Earthbound Rights) of a participation agreement to be
negotiated in good faith by the parties hereto and in form and substance reasonably satisfactory to
the Required Holders but on substantially the terms set forth in the Forbearance Agreement (the
“Earthbound Participation Agreement”). Collateral Agent and Holders hereby agree to
execute and deliver to Holdings such further instruments and documents and do and cause to be done
such further acts as Holdings may reasonably request to evidence the foregoing release of liens
upon the Earthbound Rights created by the Note Documents, upon the full execution and delivery of
both the Earthbound Acquisition Agreement and the Earthbound Participation Agreement, and the
consummation of the sale and purchase (including without limitation receipt of the purchase price
thereunder in good funds) contemplated by the Earthbound Acquisition Agreement.

5. PROVISIONS APPLICABLE TO EQUITY TRANSACTION. The provisions of subsections (a), (b),
(c), (d) and (e) of this Section 5 shall be effective if and only if the Equity Transaction
is consummated on or before April 1, 2010. Holdings shall (i) promptly provide to Holders complete
and accurate copies of each private placement memorandum, registration statement, prospectus, or
other offering materials produced, or any amendment or supplement thereto (each an “Equity
Transaction Document,” and collectively, the “Equity Transaction Documents”), and (ii)
provide Holders not less than ten Business Days’ prior written notice of the anticipated closing
date of the Equity Transaction.

     (a) Paydown Provisions Applicable in IPO Transaction. The following paydown
provisions shall apply if the initial Equity Transaction is an IPO.

               (i) Initial Cash Paydown on Closing of IPO. HWMP, Delaware Company and Holdings shall
cause the underwriter of the IPO to remit directly to an account designated by the Collateral Agent
for the benefit of the Holders, concurrently with its first remittance to Delaware Company or any
Company Party of any net cash proceeds of the IPO, immediately available funds in an aggregate
amount equal to the lesser of (A) $37.5 million or (B)(I) the aggregate outstanding amount of the
EP Obligations as of the date of receipt by Holders of such funds, minus (II) $1.5 million
(the “Initial IPO Cash Paydown”). Holdings and HWMP each hereby agrees to cause the Equity
Transaction documents to provide for payment to the Collateral Agent for the benefit of the Holders
of the Initial IPO Cash Paydown as an express and required use of proceeds of the IPO.

               (ii) Holders’ Securities on Closing of IPO. At the closing of the IPO, Holders also
shall receive for no additional consideration, in addition to the Initial IPO Cash Paydown, shares
of common stock of Delaware Company having a Value (as defined below) equal to $1.5 million, which
shares of common stock shall be issued at the closing of the first issuance by Delaware Company of
securities in the IPO (the “IPO Holders’ Securities”). As used herein, “Value”
shall be defined as the product of (A) the number of shares of common stock to be

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issued by Delaware Company to Holders, multiplied by (B) the actual per share
issuance price to the public of such shares in the IPO. The IPO Holders’ Securities shall be
allocated among Holders (or their respective designees) in accordance with their respective Pro
Rata Shares as in effect immediately prior to the date of receipt by Holders of the Initial IPO
Cash Paydown or as otherwise designated by Holders to Holdings in writing prior to such date.

               (iii) Additional Payments to Holders Following Closing of IPO. In addition to the
Initial IPO Cash Paydown, and in consideration of the release and discharge of the EP Obligations
provided in Section 5(d) below, and if and only if the aggregate outstanding amount of the
EP Obligations as of the date of (but immediately prior to) receipt by Holders of the Initial IPO
Cash Paydown exceeds $39.0 million (such excess amount, the “Additional IPO Payment
Amount”), each Company Party hereby agrees to pay to Holders an amount equal to all cash
receipts actually received by (or credited to) such Company Party from Overture under the Overture
Agreement in respect of “Law Abiding Citizen” until such time as Holders have received an aggregate
amount equal to the Additional IPO Payment Amount (together with any accrued and unpaid interest
thereon (computed on the basis of a year of 360 days and twelve 30-day months) at a per
annum rate of 16.0%). All payments to Holders under this Section 5(a)(iii) shall
be made within three Business Days of any Company Party’s receipt of said cash receipts from
Overture, and shall be deemed applied first against any unreimbursed expenses of the Collateral
Agent and Holders, then against interest and then against the principal portion of the Additional
IPO Payment Amount. Holdings shall have the right, not later than the date of receipt by Holders
of the Initial IPO Cash Paydown, to cause Holders to receive (concurrently with the Initial IPO
Cash Paydown), an amount equal to the Additional IPO Payment Amount in full satisfaction of their
obligations under this Section 5(a)(iii).

     (b) Paydown Provisions Applicable in Private Equity Investment Transaction. The
following paydown provisions shall apply if the initial Equity Transaction is a Private Equity
Investment.

               (i) Initial Cash Paydown on Closing of Private Equity Investment. Concurrently with
the receipt by Holdings of the net proceeds of the Private Equity Investment, Holdings shall remit
and HWMP shall cause Holdings to remit out of the net proceeds of the Private Equity Investment and
directly to an account designated by the Collateral Agent for the benefit of the Holders
immediately available funds in an aggregate amount equal to the lesser of (A) $39.0 million or (B)
the aggregate outstanding amount of the EP Obligations as of the date of receipt by Holders of such
funds (the “Initial Private Equity Investment Cash Paydown”). Holdings and HWMP each
hereby agrees to cause the Equity Transaction documents to provide for payment to the Collateral
Agent for the benefit of the Holders of the Initial Private Equity Investment Cash Paydown as an
express and required use of proceeds of the Private Equity Investment.

               (ii) Additional Payments to Holders Following Closing of Private Equity Investment.
In addition to the Initial Private Equity Investment Cash Paydown, and in consideration of the
release and discharge of the EP Obligations provided in Section 5(d) below, and if and only
if the aggregate outstanding amount of the EP Obligations as of the date of (but immediately prior
to) receipt by Holders of the Initial Private Equity Investment Cash Paydown exceeds $39.0 million
(such excess amount, the “Additional Private Equity Payment Amount”),

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each Company Party hereby agrees to pay to Holders an amount equal to all cash receipts
actually received by (or credited to) such Company Party from Overture under the Overture Agreement
in respect of “Law Abiding Citizen” until such time as Holders have received an aggregate amount
equal to the Additional Private Equity Payment Amount (together with any accrued and unpaid
interest thereon (computed on the basis of a year of 360 days and twelve 30-day months) at a
per annum rate of 16.0%). All payments to Holders under this Section
5(b)(ii) shall be made within three Business Days of any Company Party’s receipt of said cash
receipts from Overture, and shall be deemed applied first against any unreimbursed expenses of the
Collateral Agent and Holders, then against interest and then against the principal portion of the
Additional Private Equity Payment Amount. Holdings shall have the right, not later than the date
of receipt by Holders of the Initial Private Equity Investment Cash Paydown, to cause Holders to
receive (concurrently with the Initial Private Equity Investment Cash Paydown), an amount equal to
the Additional Private Equity Payment Amount in full satisfaction of their obligations under this
Section 5(b)(ii).

     (c) Method of Payments to Holders Under Section 5. All payments to be made to
Holders pursuant to this Section 5 (including payments of the Initial IPO Cash Paydown or
the Initial Private Equity Investment Cash Paydown, as applicable, to be made to Holders from the
account designated by the Collateral Agent for the initial receipt thereof as specified in
Sections 5(a)(i) and 5(b)(i) above) shall be made pro rata among
Holders in accordance with their respective Pro Rata Shares as in effect immediately prior to the
date of receipt by Holders of the Initial IPO Cash Paydown or the Initial Private Equity
Investment Cash Paydown, as applicable, and shall be payable in lawful currency of the United
States by wire transfer in immediately available funds to the account or accounts previously
designated in writing by each Holder at least three Business Days prior to the applicable payment
date. As of the date hereof, the wire instructions for all such payments due to each Holder, and
its address, are set forth below each Holder’s name on Schedule 2 hereto.

     (d) Discharge of Obligations Under, Release of Liens Created by, and Termination of Note
Documents. Effective immediately upon receipt by Holders of the Initial IPO Cash Paydown or
the Initial Private Equity Investment Cash Paydown, as applicable, and the execution and delivery
by Delaware Company (as applicable), Holdings and the other Company Parties, on the one hand, and
Collateral Agent and Holders, on the other hand, of a mutual general release of any and all claims
arising from or in respect of the Note Documents as of such date of receipt by Holders of the
Initial IPO Cash Paydown or the Initial Private Equity Investment Cash Paydown, as applicable
(which release shall be in substantially the form of the release set forth in Section 26
hereof but fashioned as a mutual release and shall except from its scope the rights and
obligations of such parties under this Agreement (other than those rights and obligations
hereunder that are discharged as set forth below)): (i) all Obligations under the Note Documents
(other than those Obligations that are expressly stated to survive the termination of the Note
Documents, which Obligations are hereby expressly assumed by any successor in interest to
Holdings’ obligations hereunder and under any other Note Document, including, without limitation,
Delaware Company) shall thereupon be completely discharged and satisfied in full, and each Company
Party shall thereupon be released from all liability therefor; (ii) all liens and security
interests created by the Note Documents in and to the Collateral shall thereupon be released and
terminated without the need for any further action; (iii) all Note Documents shall thereupon be
terminated (other than those

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provisions therein (such as but not limited to indemnification provisions) that by their
express terms survive the termination of any such Note Documents), and all other rights and
remedies of Collateral Agent and Holders thereunder shall thereupon be extinguished (including but
not limited to any rights to receive or retain participation interests in any current or future
film properties of any Company Party); and (iv) all obligations of Holders under any Note
Document(s), including without limitation any obligation to pay management bonuses to executives
of Company Parties, shall thereupon be terminated and all rights of Company Parties and any other
Persons (including without limitation such executives) with respect thereto shall thereupon be
completely discharged and satisfied in full, and each Holder shall thereupon be released from all
liability therefor without the need for any further action; provided, that the foregoing
release and discharge shall not release or otherwise affect any rights or obligations of the
parties set forth in this Agreement (other than with respect to the obligations of HWMP or any
Company Party under, and the rights of Collateral Agent or any Holder under, Sections 2
(except the last sentences of each of Sections 2(a) and 2(b)), 3 (except
the last sentence thereof), 8 and 28 hereof, which rights and obligations shall be
so extinguished and discharged). Collateral Agent and Holders hereby agree to execute and deliver
or cause to be executed and delivered to Company, in each instance at the sole expense of Delaware
Company or Holdings, as applicable, such further instruments and documents and do and cause to be
done such further actions as may reasonably be requested by Company to evidence the foregoing
release and termination, including (A) returning all original Notes to Company for cancellation
and (B) executing and delivering to Company any required lien release documents.

     (e) Waiver of Redemption Premium Provisions. Notwithstanding any contrary term or
provision in the Securities Purchase Agreement or any other Note Document, including Section
2.6 of the Securities Purchase Agreement, no redemption premium shall be owed in connection
with any repayment of the Obligations effected directly in connection with any Equity Transaction
consummated on or before April 1, 2010, pursuant to the terms of this Agreement.

     (f) Indemnification of Holders. (i) Indemnification. To the full extent
permitted by law, each of Holdings (which shall include any successor in interest to Holdings’
obligations hereunder, including Delaware Company) and each other Company Party (each an
“Indemnitor,” and collectively, the “Indemnitors”) agrees to jointly and severally
indemnify, defend (subject to this Section 5(f)) and hold harmless Collateral Agent and
each Holder, each of their respective officers, directors, shareholders, members, employees,
representatives, attorneys, advisors and partners, and each Affiliate and “Controlling Person”
(i.e., a Person that controls such entity within the meaning of Section 15 of the Securities Act
(as defined below)) of such Holder (each an “Indemnified Party,” and collectively, the
“Indemnified Parties”), against all expenses, claims, losses, damages or liabilities (or
actions in respect thereon), including any of the foregoing incurred in any investigation or
inquiry or in any settlement of any litigation commenced or threatened, arising out of or based on
any untrue statement (or alleged untrue statement) of a material fact contained in any Equity
Transaction Document, or on any omission (or alleged omission) to state therein a material fact
required to be stated therein or necessary to make the statements therein, in light of the
circumstances in which they were made, not misleading, or any violation by any Indemnitor of the
Securities Act of 1933, as amended, and the rules and regulations of the Securities and Exchange
Commission

11

 

(“Commission”) promulgated thereunder (the “Securities Act”), the Securities
Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated
thereunder (the “Exchange Act”), any state securities or blue sky law, and the Indemnitors
will reimburse each such Indemnitee, for any legal and any other expenses incurred in connection
with investigating, preparing or defending any such claim, loss, damage, liability or action
(including any appeals or the enforcement of any right hereunder) as such expenses are incurred;
provided, that the indemnity agreement contained in this Section 5(f) shall not
apply to any such loss, claim, damage, liability, or action to the extent that it arises out of or
is based upon an untrue statement or alleged untrue statement or omission or alleged omission made
in connection with any such Equity Transaction Document, in reliance upon and in conformity with
written information furnished expressly for use in connection therewith by a Holder. This
indemnity is not intended as a sole or exclusive remedy and shall not affect or limit any other
rights otherwise available to any Indemnified Party under law or equity.

          (ii) Defense of Claims. Each Indemnified Party shall give notice to Delaware Company
(and Holdings if it is a separate legal entity from Delaware Company) promptly after such
Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall
permit the Indemnitors (or any of them) to assume the defense of any such claim or any litigation
resulting therefrom, provided that counsel for the Indemnitors, who shall conduct the defense of
such claim or litigation, shall be approved by the Indemnified Parties (whose approval shall not
unreasonably be withheld or delayed), and the Indemnified Parties may participate in such defense,
and provided further that the failure of any Indemnified Party to give notice as provided herein
shall not relieve any Indemnifying Party of any obligation or liability under this Section
5(f) except to the extent the failure to give such notice is materially prejudicial to the
Indemnitors’ ability to defend such action. Notwithstanding the foregoing, however, if an
Indemnified Party reasonably determines that there is or may be a conflict between the positions of
such Indemnified Party and any of the Indemnitors in connection with the defense of such action,
suit, investigation, inquiry or other proceeding or that there may be legal defenses available to
such Indemnified Party different from or in addition to those available to any of the Indemnitors,
then counsel for the Indemnified Party shall be entitled to conduct the defense of such matter at
the Indemnitors’ sole expense, and in any event, such Indemnified Party shall be entitled to have
counsel chosen by such Indemnified Party participate in, but not to conduct, the defense. No
Indemnitor, in the defense of any such claim or litigation, shall, except with the written consent
of each Indemnified Party, consent to entry of any judgment or enter into any settlement that does
not include as an unconditional term thereof the giving by the claimants or plaintiffs to such
Indemnified Party of a release from all liability in respect to such claim or litigation or that
provides for the payment by any Indemnified Party of any amounts in settlement of such claim or
litigation.

          (iii) Contribution. If the indemnification provided in this Section 5(f) is
held by a court of competent jurisdiction to be unavailable to an Indemnified Party with respect to
any loss, liability, claim, damage or expense referred to herein, then the Indemnitors thereunder
shall contribute to the amount paid or payable by such Indemnified Party as a result of such loss,
liability, claim, damage or expense in such proportion as is appropriate to reflect the relative
fault of the Indemnitors, on the one hand, and of the Indemnified Party, on the other hand, in
connection with the statements, omissions or violations that resulted in such loss, liability,
claim, damage or expense as well as any other relevant equitable considerations; provided,
that in no

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event shall any contribution by a Holder under this Section 5(f)(iii) exceed the total of
the net cash proceeds and the Value of the IPO Holders’ Securities (if applicable) from the
applicable Equity Transaction received by such Holder. The relative fault of the Indemnitor and of
the Indemnified Party shall be determined by reference to, among other things, whether the untrue
or alleged untrue statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by any Indemnitor or by the Indemnified Parties and
the parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission. No Person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation.

6. CONDITIONS TO EFFECTIVENESS. Each of the parties hereto hereby agrees and acknowledges
that this Agreement shall not be effective until such time as each of the following conditions
shall have been satisfied (or waived in writing by the beneficiary thereof) in form and substance
satisfactory to all parties (the date the last of such conditions shall be so satisfied (or waived)
being referred to herein as the “Effective Date”):

     (a) Each party hereto shall have received a copy of this Agreement duly executed and
delivered by the other parties;

     (b) The Company Parties shall have received any consents required under the Credit Agreement
Documents;

     (c) HWMP shall have funded in immediately available funds the Effective Date Funding Amounts
into the applicable accounts specified in Preliminary Statement B(2)(a); and

     (d) HWMP shall have advanced an aggregate amount of $100,000 to Holders as an advance against
attorneys’ fees for services rendered by Manatt Phelps & Phillips, LLP (“Manatt”), as
counsel to Holders, in connection with the transactions contemplated hereby (which amount Holders
hereby acknowledge as having received) (with any excess remaining after the closing of such
transactions to be promptly returned to HWMP, subject to the provisions of Section 25
hereof).

In the event any of the foregoing conditions has not been satisfied (or waived in writing by the
beneficiary thereof) by the close of business on the fifth Business Day after the execution and
delivery hereof by all parties hereto, this Agreement shall be of no further force or effect and
shall not be binding on the parties hereto; provided, that notwithstanding the foregoing,
Sections 6(d) and 25 hereof shall be applicable and in full force and effect.

7. REPRESENTATIONS AND WARRANTIES. To induce the parties hereto to enter into this
Agreement, each party hereto represents and warrants to the other parties that: (a) such party is
duly organized, validly existing and in good standing under the laws of its jurisdiction of
organization and has full power and authority to execute and deliver, and to perform its
obligations under, this Agreement and the other agreements contemplated hereby to which it is a
party (including, for the avoidance of doubt, the Earthbound Acquisition Agreement and the
Earthbound Participation Agreement); (b) the execution, delivery and performance by such party of
this Agreement and all documents contemplated hereunder are within such party’s powers,

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have been duly authorized, executed and delivered by such party, and are not in conflict with such
party’s articles, bylaws, limited liability company agreement, operating agreement, partnership
agreement or other organizational documents; (c) this Agreement and each other agreement
contemplated to be entered into by such party constitutes a valid and binding obligation of such
party enforceable in accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or conveyance or similar
laws relating to or limiting creditors’ rights generally or by equitable principles relating to
enforceability; and (d) the execution, delivery and performance of this Agreement and each other
agreement contemplated to be entered into by such party will not violate any applicable law, rule
or order of any court or governmental agency or body to which such party is subject, or any
agreement with any Person to which such party is subject. In addition, Holdings and Company hereby
represent and warrant to Collateral Agent and Holders that no Forbearance Default has occurred, now
exists or will be triggered by the performance of such parties’ entry into and performance of their
obligations under this Agreement and the agreements contemplated hereby. Each of Holdings and
Company agrees that any breach by it of any representations, warranties or covenants by it under
this Agreement shall be a Forbearance Default.

8. NO AMENDMENT OR GENERAL WAIVER. This Agreement shall be limited solely to the matters
expressly set forth herein and, except as expressly provided herein, shall not (a) constitute an
amendment, modification or waiver of, or a forbearance with respect to, any term or condition of
the Securities Purchase Agreement, the Forbearance Agreement or any other Note Document, (b)
prejudice, restrict or affect any right or rights that Collateral Agent or any Holder may now have
or may have in the future under or in connection with the Securities Purchase Agreement, the
Forbearance Agreement or any other Note Document, or (c) require Collateral Agent or any Holder to
agree to any amendment, modification or waiver of, or forbearance with respect to, any term or
condition of the Securities Purchase Agreement, the Forbearance Agreement or any other Note
Document on a future occasion. Each of Holdings, the Company and each other Company Party
expressly acknowledges and agrees that the Securities Purchase Agreement and the other Note
Documents to which it is a party are valid and enforceable by Collateral Agent and the Holders
against it, and expressly reaffirms each of its Obligations under each Note Document to which it is
a party. Holdings, the Company and each other Company Party further expressly acknowledge and
agree that Collateral Agent, on behalf of the Holders, has a valid, duly perfected, first priority
and fully enforceable security interest in and lien against each item of Collateral (except as
otherwise provided in the Intercreditor Agreement or the Note Documents). Each of Holdings, the
Company and the other Company Parties agrees that it shall not dispute the validity or
enforceability of the Securities Purchase Agreement or any of the other Note Documents or any of
its Obligations thereunder, or the validity, priority, enforceability or extent of Collateral
Agent’s security interest in or lien against any item of Collateral. Holdings, the Company and
each of the other Company Parties hereby acknowledge and agree that this Agreement shall be a Note
Document and, as such, Collateral Agent shall have the same rights and remedies against the Company
Parties under this Agreement as it has with respect to breaches of covenants, representations and
warranties in other Note Documents. Pursuant to Section 9-624 of the UCC, Holdings, the Company
and each Company Party hereby irrevocably waives to the fullest extent permissible under the UCC
and other applicable law: (a) the right to notification of the disposition of any or all Collateral
pursuant to Section 9-611 of the UCC or any similar provisions under other applicable law; and

14

 

(b) any and all rights it may possess to redeem the Collateral under Section 9-623 of the UCC or
any similar provisions under other applicable law.

9. TIME OF ESSENCE. Time is of the essence for all payments to be made and all obligations
to be performed under this Agreement.

10. FURTHER ASSURANCES. Each of the parties hereto agrees that it will promptly execute
and deliver or cause to be executed and delivered such further instruments and documents, and take
or cause to be taken such further action, as may be necessary, or that any other party hereto may
reasonably request, in order to give effect to, or implement to the fullest extent, each of the
terms and provisions of this Agreement, in each case at the sole expense of Holdings and the
Company.

11. NOTICES. All notices, demands, requests, directions and other communications required
or expressly authorized to be made by this Agreement shall, whether or not specified to be in
writing but unless otherwise expressly specified to be given by any other means, be given in
writing and addressed to the party to be notified at its address specified opposite its name on
Schedule 1 hereto (or to such other address or facsimile number as may be substituted by
notice given as herein provided) and shall be effective and be deemed to have been received: (a) if
delivered by hand, upon personal delivery; (b) if delivered by reputable overnight courier service,
one Business Day after delivery to such courier service with all charges prepaid (or charged to the
account of the sender) and with receipt confirmed (by a record of receipt maintained) by such
overnight courier; (c) if delivered by United States mail, upon the earlier of actual receipt and
three Business Days after deposit, registered or certified mail, return receipt requested, with
proper postage prepaid; and (d) if delivered by facsimile, upon sender’s receipt of confirmation of
proper transmission. The giving of any notice required hereunder may be waived in writing by the
party entitled to receive such notice. Failure or delay in delivering copies of any notice,
demand, request, direction or other communication to any Person designated in Schedule 1 to
receive copies shall in no way adversely affect the effectiveness of such notice, demand, request,
direction or other communication.

12. NO WAIVER. No party’s failure, at any time or times hereafter, to require strict
performance by any other party of any provision or term of this Agreement shall waive, affect or
diminish any right of such party thereafter to demand strict compliance and performance therewith.

13. SOLE BENEFIT OF PARTIES. This Agreement (including each Exhibit hereto) is solely for
the benefit of the parties hereto and their respective successors and assigns (including, with
respect to Holdings, Delaware Company), and no other Person shall have any right, benefit or
interest under or because of the existence of this Agreement.

14. LIMITATION ON RELATIONSHIP BETWEEN PARTIES. The relationship of Collateral Agent and
the Holders, on the one hand, and the Company Parties, on the other hand, with respect to the
Securities Purchase Agreement, the Forbearance Agreement, the Notes and the other Note Documents,
has been and shall continue to be, at all times until receipt by Holders of the Initial IPO Cash
Paydown or the Initial Private Equity Investment Cash Paydown (as applicable), that of creditor and
debtor. Nothing contained in this Agreement, any instrument,

15

 

document or agreement delivered in connection herewith, the Securities Purchase Agreement or any of
the other Note Documents shall be deemed or construed to create a fiduciary relationship among any
of the parties hereto.

15. NO ADVERSE CONSTRUCTION. The parties hereto agree that each party and its counsel have
reviewed and revised this Agreement and that any rule of construction to the effect that
ambiguities are to be resolved against the drafting party shall not apply in the interpretation of
this Agreement (or any Exhibits hereto) or any subsequent amendment hereto or thereto.

16. NO ASSIGNMENT. This Agreement (including each Exhibit hereto) shall not be assignable
by HWMP or the Company Parties, or any one of them, without the prior written consent of Holders
(which may be granted or withheld in the Holders’ sole discretion). Collateral Agent and each
Holder may assign to one or more Persons all or any part of, or any participation interest in,
Collateral Agent’s or such Holder’s rights and benefits hereunder in accordance with the Securities
Purchase Agreement, including, without limitation, the rights to payments pursuant to Section
5 hereof.

17. ENTIRE AGREEMENT; MISCELLANEOUS. Subject to Section 27 below, this Agreement
constitutes the entire understanding and agreement among the parties hereto with respect to the
subject matter hereof and supersedes any prior agreements, oral or written, with respect thereto.
The section and subsection titles contained in this Agreement are included for the sake of
convenience only, and shall not affect the meaning or interpretation of this Agreement.

18. LIMITED EFFECT. Subject to Section 27 below, in the event of a conflict
between the terms and provisions of this Agreement and the terms and provisions of the Securities
Purchase Agreement and other Note Documents with respect solely to the express subject matter and
provisions of this Agreement, the terms and provisions of this Agreement shall govern. In all
other respects, the Note Documents shall remain in full force and effect.

19. WAIVER OF JURY TRIAL. THE PARTIES HERETO, AND EACH OF THEM, HEREBY IRREVOCABLY WAIVE
ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

20. NO ORAL MODIFICATION. Neither this Agreement nor any provision hereof may be changed,
waived, discharged or terminated, nor may any consent to the departure from the terms hereof be
given, orally (even if supported by new consideration), but only by an instrument in writing signed
by all parties to this Agreement. Any waiver or consent so given shall be effective only in the
specific instance and for the specific purpose for which given.

21. SEVERABILITY. In the event any one or more of the provisions contained in this
Agreement is held to be invalid, illegal or unenforceable in any respect, then such provision shall
be ineffective only to the extent of such prohibition or invalidity, and the validity, legality,
and enforceability of the remaining provisions contained herein shall not in any way be affected or
impaired thereby.

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22. GOVERNING LAW; JURISDICTION. IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION,
VALIDITY AND PERFORMANCE, THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND
INTENDED TO BE PERFORMED IN THAT STATE (WITHOUT REGARD TO THE CHOICE OF LAW OR CONFLICTS OF LAW
PROVISIONS THEREOF) AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. ANY LEGAL ACTION OR
PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK
LOCATED IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, OR OF THE UNITED STATES OF AMERICA FOR THE
SOUTHERN DISTRICT OF NEW YORK AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY HERETO
HEREBY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE
JURISDICTION OF THE AFORESAID COURTS. THE PARTIES HERETO HEREBY IRREVOCABLY WAIVE ANY OBJECTION,
INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON
CONVENIENS, THAT ANY OF THEM MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION
OR PROCEEDING IN SUCH JURISDICTIONS. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE
OF ANY AND ALL LEGAL PROCESS, SUMMONS, NOTICES AND OTHER DOCUMENTS AND OTHER SERVICE OF PROCESS OF
ANY KIND AND CONSENTS TO SUCH SERVICE IN ANY SUIT, ACTION OR PROCEEDING BROUGHT IN THE UNITED
STATES OF AMERICA WITH RESPECT TO OR OTHERWISE ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT
BY ANY MEANS PERMITTED BY APPLICABLE REQUIREMENTS OF LAW, INCLUDING BY THE MAILING THEREOF (BY
REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID) TO THE ADDRESS OF SUCH PARTY SPECIFIED IN
SECTION 11 (AND SHALL BE EFFECTIVE WHEN SUCH MAILING SHALL BE EFFECTIVE, AS PROVIDED
THEREIN). EACH PARTY HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE
CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER
MANNER PROVIDED BY LAW. NOTHING CONTAINED IN THIS SECTION 22 SHALL AFFECT THE RIGHT OF ANY
PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE REQUIREMENTS OF LAW OR
COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY OTHER PARTY HERETO IN ANY OTHER
JURISDICTION.

23. CONSULTATION WITH COUNSEL. Each of the parties hereto represents to the others that it
has discussed this Agreement with its attorneys.

24. COUNTERPARTS. This Agreement may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the same agreement.
Delivery of an executed counterpart of a signature page hereto by facsimile or other electronic
transmission shall be effective as delivery of a manually executed counterpart hereof.

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25. PAYMENT OF LEGAL FEES. HWMP hereby agrees to pay for all reasonable legal fees and
out-of-pocket costs for services rendered by Manatt, as counsel to Holders, Loeb & Loeb LLP
(“Loeb”), as counsel to the Company Parties and HWMP, and Akin Gump Strauss Hauer & Feld
LLP (“Akin”), as counsel to Union Bank, in connection with the transactions contemplated
hereby and, to the extent that HWMP agrees to pay such fees and costs, Collateral Agent and Holders
hereby consent to the incurrence by the Company Parties and HWMP of the obligation to pay for same.
Without limiting the foregoing: (a) the parties agree that there is no undertaking on the part of
Holders to pay or reimburse any party or law firm with respect to the fees and costs of Loeb and
Akin (“Loeb/Akin Fees”), and the parties therefore agree that in no event shall Holders
have any liability for such Loeb/Akin Fees; and (b) HWMP hereby agrees that, upon the exhaustion of
the $100,000 paid by HWMP to Holders pursuant to Section 6(d) above, HWMP shall provide
additional advances to Holders against Holders’ legal expenses, as reasonably required by Holders.
Holders shall provide or cause to be provided to HWMP copies of summary invoices provided to
Holders by Manatt in connection with the transactions contemplated hereby upon request by HWMP.

26. RELEASE. Each of Holdings, the Company and each other Company Party hereby
acknowledges that as of the Effective Date it has no defense, counterclaim, offset,
cross-complaint, claim or demand of any kind or nature whatsoever (other than payment) that can be
asserted to (i) reduce or eliminate all or any part of its EP Obligations or liabilities under the
Note Documents or (ii) seek affirmative relief or damages of any kind or nature from Collateral
Agent or any Holder or their respective affiliates or participants, or any of their respective
directors, managers, members, partners, officers, agents, employees or attorneys (the “Covered
Persons”). Each of Holdings, the Company and the other Company Parties hereby voluntarily and
knowingly releases and forever discharges each of the Covered Persons, and their successors and
assigns, from all possible claims, demands, actions, causes of action, damages, costs, expenses,
and liabilities whatsoever, known or unknown, anticipated or unanticipated, suspected or
unsuspected, fixed, contingent, or conditional, at law or in equity, which Holdings, the Company or
such Company Party may now or hereafter have against any Covered Person, and irrespective of
whether any such claims arise out of contract, tort, violation of law or regulations, or otherwise,
with respect to matters occurring or arising prior to the effectiveness of this Agreement and
arising from or in respect of the Note Documents.

     Each of Holdings, the Company and each other Company Party hereby waives the provisions of any
applicable laws (including Section 1542 of the California Civil Code) restricting the release of
claims which the releasing parties do not know or suspect to exist at the time of release, which,
if known, would have materially affected Holdings’, the Company’s or such Company Party’s decision
to agree to such release. Each of Holdings, the Company and each other Company Party hereby
agrees, represents and warrants to Collateral Agent, the Holders and their respective affiliates
and participants, and their respective predecessors, agents, officers, directors, employees,
successors and assigns that it realizes and acknowledges that factual matters now unknown to
Holdings, the Company or such Company Party may have given or may hereafter give rise to causes of
action, claims, demands, debts, controversies, damages, costs, losses and expenses which are
presently unknown, unanticipated and unsuspected, and further agrees, represents and warrants that
the release provided hereunder has been negotiated and agreed upon in light of that realization and
that Holdings, the Company and such Company Party nevertheless hereby intend to release, discharge
and acquit the Covered Persons, and their

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successors and assigns, from any such unknown claims. Section 1542 of the California Civil Code
provides as follows:

A general release does not extend to claims which the
creditor does not know or suspect to exist in his or her
favor at the time of executing the release, which if known
by him or her must have materially affected his or her
settlement with the debtor.

Holdings, the Company and each Company Party agrees this section shall be immediately effective as
to Holdings, the Company and each Company Party on the date such party executes this Agreement.
The effectiveness of this section shall survive the expiration or any other termination of this
Agreement.

27. TERMINATION; SURVIVAL OF AGREEMENTS. This Agreement shall terminate upon the earlier
to occur of (i) the termination of the Forbearance Period by the Holders following the occurrence
of a Forbearance Default, and (ii) the failure of an Equity Transaction to be consummated by April
1, 2010. Upon any such termination of this Agreement, except as provided in the immediately
succeeding sentence, the parties shall have no further obligations to each other hereunder.
Notwithstanding anything to the contrary herein, Sections 2, 3, 7,
16, 19, 21, 22, 25, 26, 27 and 29
shall survive any such termination of this Agreement.

28. REAFFIRMATION AND AMENDMENT OF GUARANTY. Each of the Company Parties who are
Guarantors acknowledges the terms of this Agreement and reaffirms and agrees that: (i) the
Guaranty and Security Agreement remains in full force and effect and that its Guaranty Obligations
cover the full and punctual payment of the EP Obligations (payable without demand upon any failure
by the Company or any other Note Party obligated thereon to make payment thereof and including any
damages incurred by Collateral Agent or Holders arising therefrom); (ii) nothing in such Guaranty
and Security Agreement obligates Collateral Agent or any Holder to notify the undersigned of any
changes in the financial accommodations made available to the Company or to seek reaffirmations of
such Guaranty Obligation; and (iii) no requirement to so notify any Guarantor or to seek
reaffirmations in the future shall be implied by this reaffirmation.

29. CONSENT TO PRIORITY RECOUPMENT OF WEINSTEIN SALES AGENCY FEE. Notwithstanding any
contrary term or provision set forth in the Securities Purchase Agreement or any other Note
Document, and effective as of October 31, 2009, Collateral Agent and Holders hereby consent and
agree to (a) Company’s execution of the Sales Agency Agreement pursuant to which Company shall be
obligated to pay to Weinstein a non-deferred sales agency fee of 7.5% of 100% of Collections from
exploitation of the “Rights” (as such term is defined in the Sales Agency Agreement) in and to LAC
in the “Territories” (which is defined in the Sales Agency Agreement as Italy, France and Japan and
all other countries and territories customarily included in a license in each such territory in the
motion picture industry) with respect to license agreements entered into for any such Territory
after October 21, 2009, and (b) the disbursement out of the Collection Account of such Agency Fees
to an account in the name of Weinstein to be designated by Company in writing to the Credit
Agreement Administrative Agent (or, after repayment in full in cash of the Senior Obligations,
Collateral Agent) for payment on behalf of

19

 

Company of such Agency fees prior to the application of any such Collections as otherwise provided
in the Waterfall (as defined in the Forbearance Agreement).

[Remainder of Page Intentionally Left Blank]

20

 

     IN WITNESS WHEREOF, the parties hereto have executed this Buyout Agreement as of the date
first written above.

	 	 	 	 	 
	 	H & W MOVIE PARTNERS, LLC

 	 
	

	 	By:  	[ILLEGIBLE]	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	

	 

21

 

	 	 	 	 	 
	 	THE FILM DEPARTMENT HOLDINGS LLC

 	 
	 	By:  	/s/ Neil Sacker	 
	 	 	Neil Sacker, President & Chief Operating  	 
	 	 	Officer 	 
	 
	 	THE FILM DEPARTMENT LLC

By: The Film Department Holdings LLC, its sole Member

 	 
	 	By:  	/s/ Neil Sacker	 
	 	 	Neil Sacker, President &  	 
	 	 	Chief Operating Officer 	 
	 
	 	TFD LITERARY ACQUISITIONS, LLC

By: The Film Department LLC, its sole Member

 	 
	 	By:  	/s/ Neil Sacker	 
	 	 	Neil Sacker, President &  	 
	 	 	Chief Operating Officer 	 
	 
	 	THE FILM DEPARTMENT INTERNATIONAL, LLC

By: The Film Department LLC, its sole Member

 	 
	 	By:  	/s/ Neil Sacker	 
	 	Name: Neil Sacker	 	 
	 	Title: President and COO	 	 
	 
	 	REBOUND DISTRIBUTION LLC

By: The Film Department LLC, its sole Member

 	 
	 	By:  	/s/ Neil Sacker	 
	 	 	Name: Neil Sacker
Title: President and COO		 
	 

22

 

	 	 	 	 	 
	 	LAC FILMS, LLC

By: The Film Department LLC, its sole Member

 	 
	 	By:  	/s/
Neil Sacker	 
	 	Name:  	Neil Sacker	 
	 	Title:  	President and COO	 
	 
	 	TFD MUSIC, LLC

By: The Film Department LLC, its sole Member

 	 
	 	By:  	/s/
Neil Sacker	 
	 	Name:  	Neil Sacker	 
	 	Title:  	President and COO	 
	 
	 	FILM DEPARTMENT MUSIC, LLC

By: The Film Department LLC, its sole Member

 	 
	 	By:  	/s/
Neil Sacker	 
	 	Name:  	Neil Sacker	 
	 	Title:  	President and COO	 
	 
	 	BD PRODUCTIONS, LLC

By: The Film Department LLC, its sole Member

 	 
	 	By:  	/s/
Neil Sacker	 
	 	Name:  	Neil Sacker	 
	 	Title:  	President and COO	 

23

 

	 	 	 	 	 

	 	 	 	 	 
	 	ETON PARK CLO MANAGEMENT 1

By: Eton Park Asset Management, L.L.C., 
as Collateral Manager, as a Holder
 

	 
	 	By:  	/s/
Terrence Aquino 	 
	 	 	Name:  	Terrence Aquino 	 
	 	 	Its:  Chief Financial Officer	 
	 
	 	ETON PARK CLO MANAGEMENT 2

By: Eton Park Asset Management, L.L.C., 
as Collateral Manager, as a Holder
 

	 
	 	By:  	/s/
Terrence Aquino 	 
	 	 	Name:  	Terrence Aquino 	 
	 	 	Its:  Chief Financial Officer	 
	 
	 	ETON PARK MASTER FUND, LTD.

BY: Eton Park Capital Management, L.P.,
 its Investment Manager, as a Holder

 	 
	 	By:  	/s/
Terrence Aquino 	 
	 	 	Name:  	Terrence Aquino 	 
	 	 	Its:  Chief Financial Officer	 
	 
	 	ETON PARK FUND, L.P.

By: Eton Park Capital Management, L.P.,
 its investment manager, as a Holder

 	 
	 	By:  	/s/
Terrence Aquino 	 
	 	 	Name:  	Terrence Aquino 	 
	 	 	Its:  Chief Financial Officer	 
	 

24

 

	 	 	 	 	 
	 	UNION BANK, N.A.,

as Collateral Agent

 	 
	

	 	By:  	/s/
Alex Cho 	 
	 	 	Name:  	Alex Cho 	 
	 	 	Its:  Duly Authorized Signatory 	 
	

	 

25

 

Exhibit A

Redemption Agreement

[See attached]

26

 

Exhibit B

Lost Warrant Affidavit

[See attached]

27

 

Exhibit C

Equity Investment Summary

[See attached]

28

 

SCHEDULE 1

Notice Addresses

	(A)	 	If to HWMP, at:
	 
	 	 	H & W Movie Partners, LLC

2701 E. Camelback Rd., Suite #180

Phoenix, Arizona 85016

Attention: Mr. Michael J. Witherill

Facsimile No.: (602) 424-1803

Telephone No.: (602) 424-9555
	 
	 	 	with copies to:
	 
	 	 	Loeb & Loeb LLP

10100 Santa Monica Boulevard, Suite 2200

Los Angeles, California 90068

Attention: Susan Zuckerman Williams, Esq. and Michael A. Mayerson, Esq.

Facsimile No.: (310) 282-2200

Telephone No.: (310) 282-2000
	 
	(B)	 	If to any Company Party, at:
	 
	 	 	[Company Party]

c/o The Film Department LLC

8439 Sunset Boulevard, 2nd Floor

Hollywood, California 90069

Attention: Mr. Mark Gill and Mr. Neil Sacker

Facsimile No.: (866) 311-4894

Telephone No.: (323) 785-3700
	 
	 	 	with copies to:
	 
	 	 	Loeb & Loeb LLP

10100 Santa Monica Boulevard, Suite 2200

Los Angeles, California 90068

Attention: Susan Zuckerman Williams, Esq. and Michael A. Mayerson, Esq.

Facsimile No.: (310) 282-2200

Telephone No.: (310) 282-2000
	 
	(C)	 	If to Collateral Agent, at:
	 
	 	 	Union Bank, N.A.

Entertainment Finance Group

1901 Avenue of the Stars, Suite 600

Los Angeles, California 90067

Attention: Mr. Alex Cho

29

 

	 	 	Facsimile No.: (310) 551-8980

Telephone No.: (310) 551-8963
	 
	 	 	with copies to:
	 
	 	 	Akin Gump Strauss Hauer & Feld LLP

2029 Century Park East, Suite 2400

Los Angeles, California 90067

Attention: P. John Burke, Esq.

Facsimile No.: (310) 229-1001

Telephone No.: (310) 229-1038
	 
	(D)	 	If to any Holder, at
	 
	 	 	[Holder]

c/o Eton Park Capital Management, L.P.

399 Park Avenue, 10th Floor

New York, New York 10022

Attention: Mr. Ralph Rosenberg

Facsimile No.: (646) 521-6396

Telephone No.: (212) 756-5321
	 
	 	 	with copies to:
	 
	 	 	Manatt, Phelps & Phillips, LLP

11355 W. Olympic Boulevard

Los Angeles, California 90064

Attention: Lindsay Conner, Esq.

Facsimile No.: (310) 914-5881

Telephone No.: (310) 312-4229

30

 

SCHEDULE 2

Wire Transfer Information for Holders

	(A)	 	Eton Park CLO Management 1:
	 
	 	 	Bank of America

ABA # 026 009 593

Swift: BOFAUS3N

Acct: 2047628893919

FFC: 711088.15

Acct Name: Trust Wires Clearing / R6CMWARE

Ref: (The Film Department LLC) / Eton Park CLO Management 1

Attn: Christopher Kim / R6CMWARE
	 
	(B)	 	Eton Park CLO Management 2:
	 
	 	 	Bank of America

ABA # 026 009 593

Swift: BOFAUS3N

Acct: 2047628893919

FFC: 711114.2

Acct Name: Trust Wires Clearing / R6IIWARE

Ref: (The Film Department LLC) / Eton Park CLO Management 2

Attn: Christopher Kim / R6IIWARE
	 
	(C)	 	Eton Park Master Fund, Ltd.:
	 
	 	 	Account Name: Eton Park Master Fund Ltd

Account number: 957080700

JPM ABA: 021000021
	 
	(D)	 	Eton Park Fund, L.P.:
	 
	 	 	Account Name: Eton Park Fund LP

Account number: 957080727

JPM ABA: 021000021

31exv10w49

Exhibit 10.49

FORBEARANCE AGREEMENT AND

AMENDMENT TO SECURITIES PURCHASE AGREEMENT

AND OTHER NOTE DOCUMENTS

          This Forbearance Agreement and Amendment to Securities Purchase Agreement and other Note
Documents (this “Agreement”) is entered into as of
September 2, 2009, by and among THE
FILM DEPARTMENT, LLC, a Delaware limited liability company (the “Company”), THE FILM
DEPARTMENT HOLDINGS, LLC, a Delaware limited liability company (“Holdings”), the other
Company Parties (as defined below and set forth on the signature pages to this Agreement party
hereto and UNION BANK, in its capacity as collateral agent for the Holders (in such capacity,
together with its successors and assigns, the “Collateral Agent”), and the Holders set
forth on the signature pages to this Agreement (each a “Holder” and collectively, the
“Holders”). Capitalized terms used herein and not otherwise defined herein shall have the
meanings assigned to such terms in the Securities Purchase Agreement referred to below.

PRELIMINARY STATEMENTS

     A. Holdings, the Company, Collateral Agent and the Holders are parties to that certain
Securities Purchase Agreement dated as of June 27, 2007 (as amended, restated, supplemented or
otherwise modified from time to time, the “Securities Purchase Agreement”), pursuant to
which, among other things, the Purchasers, as predecessors-in-interest to the Holders: (i)
purchased from the Company Secured Second Lien Notes Due 2014 in the aggregate principal face
amount of $30,000,000 (each a “Note” and collectively, the “Notes”) and (ii)
purchased from Holdings the Warrants. Terms defined in the Securities Purchase Agreement and not
otherwise defined herein are used as therein defined.

     B. A scheduled interest payment in the original amount of $1,095,543.74 was due and payable by
the Company to the Holders pursuant to the Notes on June 30, 2009. Pursuant to three prior
Amendments to the Securities Purchase Agreement and Other Note Documents, the Holders granted the
Company successive extensions to such scheduled interest payment date in order to permit the
Company to obtain additional equity financing necessary for the Company’s making of such interest
payment and the performance of certain of its other obligations under the Securities Purchase
Agreement and the Notes. As a result of such extensions, an interest payment (taking into account
additional interest accrued since the scheduled June 30th payment date) in the amount of
$1,835,279.22 was due and payable to the Holders on August 28, 2009. The Company failed to remit
such interest payment and has informed the Holders that it will not be able to remit, and has not
remitted, such interest payment within the 3 Business Day cure period set forth in Section
9.1(a)(ii) of the Securities Purchase Agreement and therefore an Event of Default has occurred
under the Securities Purchase Agreement (such Event of Default, the “Interest Payment Event of
Default”).

1

 

     C. The Interest Payment Event of Default and each of the other Events of Default listed on
Annex I hereto (each a “Stipulated Default” and collectively, the “Stipulated
Defaults”) have occurred and remain continuing as of the date of this Agreement.

     D. The Obligations are secured, pursuant to the Security Documents, by first priority liens,
subject to the terms of the Intercreditor Agreement, that have been duly perfected by the filing of
UCC-1 financing statements against each Company Party in the appropriate filing office, the
recording of copyright security agreements against all registered copyrights constituting
Collateral, and by the taking of such other appropriate actions under the UCC (as defined below)
and other applicable laws.

     E. Pursuant to the Notes, the Company was permitted to capitalize certain amounts of accrued
and unpaid interest on the Notes (the “PIK Interest”). As of August 28, 2009,
$7,613,668.26 of PIK interest has accrued and is outstanding. As of the date of this Agreement,
the outstanding aggregate principal balance of the Notes, inclusive of PIK Interest and accrued and
unpaid interest is $[38,353,403.74]. Subject to the terms and conditions set forth below, the
Holders have agreed to permit the Company to capitalize all accrued interest that would otherwise
be payable in cash on each successive Interest Payment Date (as defined in the Notes) until such
time as the Senior Obligations (as defined below) have been repaid in full.

     F. Pursuant to that certain distribution agreement by and between LAC FILMS, LLC, a Delaware
limited liability company (“LAC”), the Company and Overture Films, LLC
(“Overture”), dated as of January 20, 2009 (as amended pursuant to that certain amendment
letter dated as of February 20, 2009, that certain Second Amendment to Agreement dated as of May
20, 2009, and that certain Third Amendment to Agreement dated as of July 20, 2009, the
“Overture Agreement”), the Company is required to provide a letter of credit in favor of,
or make a payment to, Overture in the amount of $5 million (such amount, the “Overture
Obligation”) for Overture’s use in covering certain domestic distribution expenses in
connection with the motion picture presently entitled “Law Abiding Citizen”. To date the Company
has deposited monies in the aggregate amount of $1,244,416.00 into a reserve account maintained at
the Collateral Agent (the “Overture Reserve Account”), thus leaving a shortfall of
$3,755,585.00 (such funding shortfall, the “Overture Reserve Account Shortfall”) with
respect to the Company’s ability to comply with its obligation to satisfy the Overture Obligation.
Subject to the terms and conditions set forth below, the Holders have agreed to deposit immediately
available funds in the amount of the Overture Reserve Account Shortfall (the advancing of such
funds, the “Overture Advance”) into the Overture Reserve Account (or, at the Holders
discretion, directly to an account designated by Overture in accordance with the Overture
Agreement) upon the satisfaction of each condition precedent to the effectiveness of this
Agreement.

     G. As a condition to the Holders’ agreement to the forbearance provided for herein, the
Company Parties, the Credit Agreement Administrative Agent and the Lenders have agreed that the
Overture Advance shall (i) constitute additional Obligations of the Note Parties for all purposes
under the Note Documents, (ii) bear interest at the rate of sixteen percent (16.00%) per annum,
(iii) benefit from and be secured by the Security Documents and (iv) be repayable in the priority
provided in to the Collection Account Payment Waterfall attached hereto as Exhibit A (the
“Waterfall”).

2

 

     H. In connection with the exercise of remedies by the Credit Agreement Administrative Agent
upon the declaration of an event of default under the Credit Agreement, the entire balance of such
Interest Reserve Account (in the amount of $4,289,415.84) was disbursed on August 31, 2009 to repay
Indebtedness owing by the Company to the Lenders under the Credit Agreement and the Notes issued
thereunder.

     I. As of the date of this Agreement, Loans with the aggregate principal and interest amount of
$28,320,012.51 are outstanding to the Company by the Lenders pursuant to the Credit Agreement and
the Notes issued to the Lenders thereunder (the “Current Senior Obligations”). Pursuant to
the terms of that certain Amendment No. 5 to Credit Agreement and Forbearance Agreement of even
date herewith (the “Senior Forbearance Agreement”) and that Amended and Restated
Intercreditor Agreement of even date herewith (the “A&R Intercreditor”), the Lenders and
the Credit Agreement Administrative Agent have agreed with the Company and the Holders,
respectively, not to make any additional Loans or other advances to the Company or any other
Company Party following the Effective Date, except for additional advances in an aggregate amount
not to exceed (i) $2,461,062.92 that are necessary for and are used exclusively by the Company
Parties for the express and limited purpose of completing and delivering to Overture the motion
picture currently entitled “Law Abiding Citizen” (any such additional advances made for such
purpose, the “LAC Completion Advances”) and (ii) $1,569,533.74, to the extent required to
fund interest payments as and when due to the Lenders with respect to the Senior Obligations
pursuant to the terms of the Credit Agreement (any such additional advances made for such purpose,
the “Additional Interest Advances”). The Current Senior Obligations together with any LAC
Completion Advances and any Additional Interest Advances, fees, costs and expenses at any time
payable to the Credit Agreement Administrative Agent and the Lenders pursuant to the existing terms
of the Credit Agreement is referred to sometimes hereinafter as the “Senior Obligations”

     J. The Credit Agreement Administrative Agent and the Lenders have agreed to make disbursements
from the Overhead Reserve Account (which has a current balance of $3,007,475.51) to the Company in
the amounts, at such times and for the types of working capital and general corporate and similar
purposes described in an interim operating budget in form and substance acceptable to the Holders
in the exercise of their sole and absolute discretion (a copy of which is attached hereto as
Exhibit B, the “Interim Operating Budget”), for the period from the Effective Date
through March 31, 2010, in an amount not to exceed the monthly amount set forth in the Interim
Operating Budget with respect to any covered calendar month, with any remaining balance of the
Overhead Reserve Account at such time as the Senior Obligations have been repaid in full to be
remitted by the Credit Agreement Collateral Agent to the Holders.

     K. The Company has granted the Holders the option, at the Holders’ sole discretion, to acquire
the Collateral (or such portion thereof as the Holders may select) on the terms described on
Exhibit C attached hereto.

     L. The Holders have agreed to establish a bonus pool for the benefit of Company management
subject to such terms and conditions provided below.

     M. The Company has agreed to (i) amend the limited liability company agreements of each of (a)
REBOUND DISTRIBUTION, LLC, a Delaware limited liability company and (b)

3

 

LAC FILMS, LLC, a Delaware limited liability company (collectively, each a “Film SPE” and collectively, the “Film
SPEs” in a manner acceptable to the Holders and (ii) appoint 2 independent managers acceptable
to the Holders to the boards of each Film SPE, in each case as and when provided below.

     N. Subject to the terms and conditions set forth below, the Company and Holdings have
requested that Collateral Agent and the Holders agree to forbear from exercising any rights and
remedies that they otherwise may have under the Note Documents with respect to the Stipulated
Defaults through the Forbearance Termination Date (as defined below), and subject to the terms and
conditions set forth below, Collateral Agent and the Holders are willing to do so.

     NOW, THEREFORE, in consideration of the foregoing and of the agreements, promises and
covenants set forth below, the parties hereto agree as follows:

AGREEMENT

     1. INCORPORATION OF PRELIMINARY STATEMENTS. The preliminary statements set forth
above are hereby incorporated into this Agreement as accurate and complete statements of fact.
Without limiting the foregoing, the Company and each other Company Party hereby acknowledge and
agree that (a) the Stipulated Defaults have occurred and are continuing under the terms of the
Securities Purchase Agreement and none of the Company Parties has any disputes, defenses or
counterclaims, or setoffs of any kind or nature which would in any way reduce or offset their
Obligations to Collateral Agent and Holders under the Note Documents as in effect on the date
hereof and (b) absent the effectiveness of this Agreement, Collateral Agent has the right to
declare immediately due and payable all or part of any Obligation (including any accrued but unpaid
interest thereon), and to cause the Collateral Agent, subject to the Intercreditor Agreement, to
enforce any and all rights and remedies created pursuant to the Security Documents, including,
without limitation, exercising any rights under the UCC or other applicable law, among other rights
and remedies available to the Holders under the Securities Purchase Agreement and other Note
Documents.

     2. DEFINITIONS

          Certain Definitions. As used in this Agreement, the following terms shall have the
meanings specified below:

     (a) “Affiliate” means, with respect to any Person, each officer, director, general
partner or joint-venturer of such Person and any other Person that directly or indirectly through
one or more intermediaries controls, is controlled by, or is under common control with, such
Person; provided, however, that no Secured Party shall be an Affiliate of the
Company. For purpose of this definition, (i) “control” means the possession of either (a)
the power to vote, or the beneficial ownership of, 10% or more of the Stock having the right,
either by ordinary power or by reason of the occurrence of any contingency, to vote for the
election of members of the board of directors, managers, trustees or other controlling Persons of
such Person or (b) the power to direct or cause the direction of the management and policies of
such Person, whether by contract or otherwise. The parties hereto agree that as of the Effective
Date each Designated Member and each of their respective Affiliates shall be deemed to constitute
an Affiliate of

4

 

Holdings; provided, that Universal Pictures shall not be deemed to constitute an
Affiliate of any Note Party.

     (b) “Applicable Standard of Care” means to take all actions (and not fail to take any
actions or take any actions reasonably likely to have the contrary effect) that a reasonable and
prudent person acting in good faith and under an obligation of good faith and fair dealing would
take (or not fail to take) in similar circumstances to achieve the goal of maximizing the
amounts available to be distributed to the Holders under the Waterfall.

     (c) “Company Party” means, collectively, Holdings, the Company and each other Group
Member and Note Party.

     (d) “Designated Member” means any of the following members of Holdings: (a) Sandeman,
Ltd.; (b) Mr. Mark Gill and/or Pain Cuit, Inc., (c) Mr. Neil Sacker and/or Sacker Consultants,
Inc., (d) Silver Haze Partners III, L.P., (e) the Singer 1995 Family Trust, (f) The Singer
Children’s 2002 Irrevocable Trust, (g) GE Capital Equity Holdings, Inc., (g) CRG Movie Partners, or
(h) Allen & Company, LLC.

     (e) “Film” means each of the following motion pictures produced by or on behalf of a
Company Party (under whatever title such motion may hereafter become known) and presently entitled
: (a) “The Rebound”; and (b) “Law Abiding Citizen”.

     (f) “Forbearance Default” shall mean any one or more of the following events,
occurrences, circumstances or conditions, any one of which shall constitute an immediate,
incurable, Event of Default under the Securities Purchase Agreement:

          (i) the existence, occurrence or continuation of any “Event of Default” as such term is
defined in the Note Documents (other than a Stipulated Default) or any event or condition shall
occur after the Effective Date which shall constitute a Material Adverse Effect;

          (ii) the Company’s failure to pay as and when due any of the sums required to be paid pursuant
to this Agreement or the Note Documents as modified by this Agreement and the A&R Intercreditor
Agreement;

          (iii) the Company’s or any other Note Party’s failure to keep or perform any other covenant or
agreement contained in this Agreement;

          (iv) (A) delivery by Overture of a Licensee’s Forecast (as defined in the Overture
Distribution Agreement) that projects a Distribution Expense Shortfall (as defined in the Overture
Distribution Agreement), or (B) any Company Party’s payment of any Distribution Expense Shortfall;

          (v) The Company’s good faith determination, based upon the ultimates/forecast of “Law Abiding
Citizen” delivered pursuant to Section 4(i)(ii) of this Agreement, that Borrower anticipates a
Distribution Expense Shortfall will occur;

          (vi) The Holders’ determination, in their sole discretion, based upon the ultimates/forecast
of “Law Abiding Citizen” delivered pursuant to Section 4(i)(ii) of this Agreement, that a
Distribution Expense Shortfall will occur;

5

 

          (vii) any representation or warranty made or deemed made by any Company Party in this
Agreement shall be false, misleading or erroneous in any material respect when made or deemed to
have been made (or if such representation or warranty is qualified by materiality or a Material
Adverse Effect qualification, false, misleading or erroneous in any respect);

          (viii) the occurrence of any Forbearance Default under the Senior Forbearance Agreement;

          (ix) the employment of either of Mark Gill or Neil Sacker shall cease for any reason (other
death or permanent disability) on a date prior to the date that is at least two weeks after the
initial wide U.S. theatrical release of “Law Abiding Citizen” by Overture.

     (g) “Forbearance Termination Date” shall mean the earliest to occur of (a) June 30,
2010, (b) the date of receipt by the Company of written notice from the Collateral Agent
terminating the agreement by the Collateral Agent and the Holders to forbear based upon (i) any
Event of Default, including, without limitation, a Forbearance Default (as defined below), other
than a Stipulated Default, including, without limitation, (x) the expiration or termination of the
“Forbearance Period” (as defined in the Senior Forbearance Agreement) or (y) the date upon which
the Company, Holdings and the Required Holders shall have agreed, in writing, that the Forbearance
Period shall terminate.

     (h) “Proceeds” (whether or not initially capitalized) shall mean and include
“proceeds” as defined in Section 9-102(a)(64) of the UCC and, without in any way limiting the
foregoing, shall further mean and include “proceeds” as defined in Section 552 of the U.S.
Bankruptcy Code.

     (i) “Second Lien Documents” shall mean this Agreement, the Note Documents together
with any and all agreements, instruments, notices, powers and documents executed, acknowledged,
delivered, served, filed or recorded pursuant to or in connection with this Agreement or the
transactions contemplated hereby, including (but not limited to) any copyright mortgage or
supplemental security agreement (in all cases as the same may be amended, supplemented or otherwise
modified and in effect from time to time).

     (j) “UCC” shall mean the Uniform Commercial Code as in effect in the State of New York
from time to time.

     3. LIMITED FORBEARANCE AND OTHER AGREEMENTS. Subject to satisfaction of each of the
terms and conditions set forth herein (as determined by the Holders in the exercise of their sole
and absolute discretion), and in consideration thereof,

          (a) commencing on the Effective Date (as defined below) and continuing until the Forbearance
Termination Date (the “Forbearance Period”), Collateral Agent and the Holders hereby agree
to forbear from exercising any rights, powers or remedies that it or they otherwise may have under
the Note Documents or applicable law with respect to the Stipulated Defaults except as may be
otherwise specified herein. Notwithstanding the foregoing, the forbearance granted by the
Collateral Agent and the Holders pursuant hereto shall not constitute and shall not be deemed to
constitute, a waiver of the Stipulated Default or of any other Default or Event of Default under
the Securities Purchase Agreement, or any Second

6

 

Lien Document, or a waiver of any of the rights
and remedies provided thereunder, under law, at equity or otherwise. On and after the Forbearance
Termination Date, or such earlier date on which a Forbearance Default occurs, the Collateral
Agent’s and the Holders’ agreement hereunder to forbear shall terminate automatically without
further act or action by the Collateral Agent or the Holders, and the Collateral Agent and the
Holders shall be entitled to exercise any and all rights and remedies available to them under the Securities Agreement, or
any Second Lien Document and this Agreement, at law, in equity, or otherwise without any further
lapse of time, expiration of applicable grace periods, or requirements of notice, all of which are
hereby expressly waived by the Company Parties;

          (b) the Holders shall deposit, or cause, the Overture Advance to be deposited into or
credited to the Overture Reserve Account (or, at the Holders discretion, directly to an account
designated by Overture in accordance with the Overture Agreement);

          (c) the Holders shall execute and deliver the A&R Intercreditor Agreement;

          (d) the Holders shall grant such consents and execute such documents as may be reasonably
requested by the Credit Agreement Administrative Agent or the Credit Agreement Collateral Agent in
order to effect the transactions contemplated by the preliminary statements to this Agreement and
the A&R Intercreditor Agreement; and

          (e) The Holders agree to establish a bonus pool for the benefit of Company management as
outlined, and subject to such terms and conditions provided, on Exhibit D attached hereto.

     4. AGREEMENTS IN CONSIDERATION OF THE FORBEARANCE. As consideration for the
forbearance described above, and, in each case, notwithstanding anything to the contrary in the
Securities Purchase Agreement or in any other Note Document, each of the Company Parties hereto
hereby agrees and acknowledges: (i) that the Securities Purchase Agreement and the other Note
Documents are each hereby amended as of the Effective Date as follows, (ii) to observe and comply
with each of the following terms, conditions and covenants and (iii) that any failure to comply
with any such term, condition or covenant shall result in an immediate Event of Default and
Forbearance Default:

          (a) Issuance of Amended and Restated Notes; Applicable Interest Rate. On the
Effective Date, in exchange for return of the outstanding Notes for cancellation, the Company
shall amend and restate the Notes and deliver Amended and Restated Notes (each substantially in
the form attached hereto as Exhibit E, the “A&R Notes”) to each Holder. The
Company Parties acknowledge and agree that the A&R Notes will, collectively, evidence the
aggregate sum of: (a) all Obligations outstanding immediately prior to the Effective Date, (b) the
Overture Advance, and (c) all other Obligations at any time owing to the Holders under this
Agreement and the Second Lien Documents. From and following the issuance of the A&R Notes, all
references herein or in any Second Lien Document to the “Notes” shall be deemed to refer to such
A&R Notes. From and after the Effective Date, the Obligations will bear interest at the rate of
sixteen percent (16.00%) per annum.

7

 

          (b) Note Documents. This Agreement and all Related Agreements entered into at any
time shall be deemed to constitute “Note Documents” as defined in and for all purposes under the
Securities Purchase Agreement and all Second Lien Documents.

          (c) Obligations. The definition of “Obligations” in the Securities Purchase
Agreement is deleted and amended and restated in its entirety to read as follows:

     “Obligations” means, with respect to any Note Party, all
amounts, obligations, liabilities, covenants and duties of every type and
description owing by such Note Party to the Collateral Agent, any Holder or
any other Indemnitee arising out of, under, or in connection with, any Note
Document, whether direct or indirect (regardless of whether acquired by
assignment), absolute or contingent, due or to become due, whether
liquidated or not, now existing or hereafter arising and however acquired,
and whether or not evidenced by any instrument or for the payment of money,
including, without duplication, (a) all Indebtedness outstanding in respect
of the Notes (and/or any “A&R Notes” as defined in that Forbearance
Agreement and Amendment to Securities Purchase Agreement and Other Note
Documents dated as of September ___, 2009, the “Forbearance
Agreement”) (including all Indebtedness in respect of the “Overture
Advance” as defined in and made pursuant the Forbearance Agreement), (b) all
interest, whether or not accruing after the filing of any petition in
bankruptcy or after the commencement of any insolvency, reorganization or
similar proceeding, and whether or not a claim for post-filing or
post-petition interest is allowed in any such proceeding, (c) all other
fees, expenses (including fees, charges and disbursement of counsel),
interest, commissions, charges, costs, disbursements, indemnities and
reimbursement of amounts paid and other sums chargeable to such Note Party
under and in accordance with the terms of any Note Document.

          (d) Amendments to Waterfall; Amendments to Payment Provisions. Each Company Party
hereby approves the Waterfall (which for all purposes shall be deemed to amend and restate
Schedule II to the Securities Purchase Agreement) and agrees that all Collections and proceeds of
Collateral shall be deposited into the Collection Account and that disbursements of the proceeds
of all Collections and other proceeds of Collateral to the Lenders, the Company Parties, the
Holders and all other Persons listed therein shall be governed by and made in accordance with the
priorities set forth in the Waterfall. Each Company Party hereby disclaims any right or claim to
payments arising from or in relation to the Collateral or the proceeds thereof except as provided
in the Waterfall. The disclaimer by each Company Party set forth in the immediately preceding
sentence is irrevocable and coupled with an interest. Notwithstanding Sections 2.5, 2.6, 2.7, 2.8
and 2.9 of the Securities Purchase Agreement to the contrary (all of which Sections are deemed
amended to the extent necessary to conform to the provisions of this Agreement), the aggregate
principal amount of the Notes (including all capitalized interest and other amounts owed
thereunder at such time) shall be paid without premium or penalty: (a) on each Settlement Date to
the extent that disbursements are available for such purpose under the Waterfall and (b) to the
extent that any amounts remain outstanding thereunder, shall be paid in full in cash on the
“Scheduled

8

 

Maturity Date” (which term is amended for all purposes of the Second Lien Documents to
mean June 30, 2010).

          (e) All Obligations Secured by Security Documents. Each Company Party acknowledges
and agrees that (i) the Overture Advance and all accrued interest thereon shall constitute
Obligations that it is required to repay in accordance with the terms of this Agreement, the A&R
Notes and the other Second Lien Documents, (ii) the Company’s obligation to repay the Overture
Advance and all interest thereon shall be an Obligation secured and guaranteed, as the case may be, by each of the Security Documents, (iii) the
Obligations include, without limitation, all costs and expenses (including attorneys fees and
expenses) incurred at any time by the Holders in connection with the negotiation and preparation
of this Agreement, the Second Lien Documents, all documents drafted in connection the proposed
restructuring of the Company’s Obligations that preceded the parties’ entry into this Agreement
and any costs and expenses that may be incurred by the Holders in respect of any further
modification, amendments, restructuring, “workout”, or exercise of remedies in relation to this
Agreement or any Second Lien Documents (whether incurred before or after the filing of any
petition under the Bankruptcy Code and whether or not allowed in full or part in any such
proceeding) , and (iv) each Security Document is hereby deemed amended to the extent necessary to
reflect and effect the terms, provisions and intention of this Agreement.

          (f) Compliance with Interim Operating Budget. The Company and Holdings shall
operate, and cause each other Company Party to operate, in material compliance with the Interim
Operating Budget and, in any case, in any monthly period, shall not directly or indirectly incur
or make expenditures, or permit any Company Party to incur or make expenditures that would: (A)
exceed the limits in any single expense category set forth in the Interim Operating Budget by more
than 10% and/or (B) exceed the aggregate monthly budget allowance by more than 5%.

          (g) Certain Negative Operational Covenants. Commencing upon the Effective Date, no
Company Party shall directly or indirectly do or permit or cause any of the following actions to
be taken by, or permit any such events or circumstances to occur or suffer to exist, by any
Company Party, without the express prior written approval of the Holders (which may be granted or
withheld in their sole and absolute discretion):

(i) Incur, make or enter into any agreement, covenant, liability, expenditure,
Investment, commitment or other obligation to any Person (other than a Company
Party) pursuant to which any Company Party expends, or will or may be obligated to
expend: (A) any amount whatsoever in connection with the development, acquisition
of rights, pre-production, production or distribution of (I) the theatrical feature
film project known as “Earthbound” or (II) any other motion picture project (other
than a Film); (B) any amount whatsoever in connection with distribution or other
exploitation in the United States of “The Rebound”; (C) any amount in excess of
$50,000 with respect to any individual transaction (or series of related
transactions) in connection with any purpose other than those set forth in
subsections (A) and (B) above (or otherwise expressly provided for in the Interim
Operating Budget); or (D) any aggregate amount (among all Company Parties) in excess
of $400,000 with respect to the distribution outside of the

9

 

United States of “Law
Abiding Citizen”, or any aggregate amount (among all Company Parties) in excess of
$400,000 with respect to the distribution outside of the United States of “The
Rebound”;

(ii) Agree to or enter into any amendment to the Overture Agreement;

(iii) Agree to or enter into any transaction directly or indirectly with, or for the
benefit of, any Affiliate of (A) Holdings, (B) the Company (that is not a Company
Party bound by this Agreement) or (C) a Designated Member;

(iv) incur or otherwise remain liable with respect to or responsible for, any
Indebtedness or Guaranty Obligations except for the following (“Permitted
Indebtedness”): (A) the Obligations; (B) Guaranty Obligations incurred in solely
connection with the issuance of completion guaranties in respect of the Film owned
by such Company Party by an Approved Completion Guarantor; (C) Guaranty Obligations
in respect of the Senior Obligations, (D) Liabilities of a Company Party (other than
Holdings) relating to participations, deferments and residuals incurred and arising
solely with respect to the development, production, distribution or other
exploitation of an existing Film; (E) Indebtedness of any Film SPE incurred in
connection with the financing of any Tax Incentive or Transferable Tax Incentive
Receivable in respect of such Film SPE’s Film with a third party financier solely to
the extent that the Credit Agreement Administrative Agent or the Required Lenders
(as such term is defined in the Credit Agreement) have elected not to advance a Loan
(as such term is defined in the Credit Agreement) against such Tax Incentive or
Transferable Tax Incentive Receivable; provided, that the aggregate principal amount
of any such Indebtedness shall not exceed 100% of the face amount of any such Tax
Incentive, and (F) Indebtedness of LAC under the Overture Agreement;

(v) incur, maintain or otherwise suffer to exist any Lien upon or with respect to
any of portion of the Collateral, whether now owned or hereafter acquired, or assign
any right to receive income or profits of any portion of the Collateral, except for
the following (collectively, “Permitted Liens”): (A) Liens created pursuant
to this Agreement or any Second Lien Document; (B) Liens on the Collateral securing
the Senior Obligations, (C) Liens pursuant to written security agreements (in form
and substance reasonably acceptable to the Collateral Agent) in favor of guilds
required by the guilds pursuant to the terms of collective bargaining agreements;
provided, that such Liens are subordinated to the Liens created under the
Security Documents on a non-cross collateralized basis with respect to the
corresponding Film pursuant to a Guild Subordination Agreement or otherwise as a
matter of law; (D) Liens incurred in the ordinary course of business with regard to
goods provided or services rendered by laboratories and post-production facilities,
so long as any such laboratory or post-production facility has entered into a
Laboratory Pledgeholder Agreement; (E) Liens to secure distribution, exhibition
and\or exploitation rights of licensees pursuant to Permitted Distribution
Agreements; provided, that such Liens shall attach solely to the
distribution, exhibition and\or exploitation rights granted by the Note Party
pursuant to the subject Permitted Distribution Agreement and to non-exclusive

10

 

rights of access to the materials in respect of the Film that is the subject of the
Permitted Distribution Agreement and to an interest in the copyright of the Film to
the extent necessary to permit the licensee to exercise the distribution, exhibition
and/or exploitation rights granted pursuant to the subject Permitted Distribution
Agreement; (F) Liens in favor of an Approved Completion Guarantor in connection with
a completion bond issued with respect to any Film, to secure the right of such Approved Completion Guarantor to recoup its contribution to any
costs of such Film and other amounts recoupable by it in respect thereof,
provided, that such Liens are subordinated to the Liens in favor of the
Collateral Agent and the Credit Agreement Collateral Agent, in each case on terms
and conditions reasonably acceptable to the Collateral Agent and the Credit
Agreement Collateral Agent, and in any event solely with respect to the applicable
Film on a non-cross collateralized basis; (G) Liens (i) with respect to the payment
of taxes, assessments or other governmental charges or (ii) of suppliers, carriers,
materialmen, warehousemen, workmen or mechanics and other similar Liens, in each
case imposed by law or arising in the ordinary course of business, and, for each of
the Liens in clauses (i) and (ii) above for amounts that are not yet due or that are
being contested in good faith by appropriate proceedings diligently conducted and
with respect to which adequate reserves or other appropriate provisions are
maintained on the books of such Person in accordance with GAAP; (H) Liens of a
collection bank on items in the course of collection arising under Section 4-208 of
the UCC or any similar Section under any applicable UCC or any similar Requirement
of Law of any foreign jurisdiction; (I) judgment liens (other than for the payment
of taxes, assessments or other governmental charges) securing judgments and other
proceedings not constituting an Event of Default under Section 9.1(g) and
pledges or cash deposits made in lieu of, or to secure the performance of, judgment
or appeal bonds in respect of such judgments and proceedings; (J) Liens granted to
any third-party financier of (i) a Tax Incentive or (ii) a Transferable Tax
Incentive Receivable (such a Lien a “Transferable Tax Incentive Receivable
Lien”), in each case pursuant to arm’s length financing agreements containing
customary terms and conditions with such third party financier; provided
that: (A) the Credit Agreement Administrative Agent or the Required Lenders have
elected not to advance a Loan against such Tax Incentive or Transferable Tax
Incentive Receivable; (B) such Lien extends only to such Tax Incentive or
Transferable Tax Incentive Receivable, as applicable; and (C) unless Collateral
Agent has released its Liens in such Tax Incentive or Transferable Tax Incentive
Receivable, as applicable, to the extent permitted in this Agreement or the other
Note Documents, such Liens are subject to a subordination or intercreditor agreement
acceptable to the Collateral Agent providing that such Liens are senior to the Liens
created under the Security Documents but only until such time as any loans made by
such third-party financier in connection therewith have been indefeasibly repaid in
full; provided, that any Transferable Tax Incentive Receivable Lien shall be
subordinated to the Liens created under the Security Documents until such time as
the applicable third party financier has advanced against such Transferable Tax
Incentive Receivable and the proceeds of such advance have been deposited into the
Collection Account; and (K) Liens granted to any Tax Credit Counterparty with
respect to a Financed Transferable Tax Incentive,

11

 

provided that: (i) such Liens are subordinated to the Liens created under the Security Documents pursuant to a
subordination or intercreditor agreement acceptable to the Collateral Agent until
such time as immediately available funds in an amount equal to (A) the purchase
price payable by such Tax Credit Counterparty under the Purchase Agreement with
respect to such Financed Transferable Tax Incentive has been deposited into the
Collection Account or (B) if such Financed Transferable Tax Incentive is financed by a third party financier,
that portion of the purchase price not required to repay in full all Indebtedness of
any Note Party incurred in connection with such financing has been deposited into
the Collection Account, and (ii) such Lien extends only to such Tax Incentive;

(vi) dispose or permit or consent to the disposition of the Collateral or any
portion or element thereof, except for the following: (i) any Cash Equivalents, or
(ii) licenses, grants and sales of exploitation rights in Films pursuant to
Permitted Distribution Agreements entered into in compliance with Subsections
4(g)(i) through (iii)) above and 4(j) below; and

(vii) make any Restricted Payments.

          (h) Interim Operating Budget; Company Settlement Statements. Commencing upon the
Effective Date, each of the following matters shall be subject to the express prior written
approval of the Holders (which may be granted or withheld in their sole and absolute discretion):

(i) Any amendment, modification, material variance or other change to, or incurrence
of any expense or liability not provided for in the Interim Operating Budget;

(ii) The form and contents of each Company Settlement Statement (as defined in the
Credit Agreement) to be submitted to the Credit Agreement Administrative Agent
pursuant to the Credit Agreement. Each such Company Settlement Statement shall be
submitted with supporting detail and documentation, including a detailed statement
with respect to each Film setting forth the following items, for the period covered
by the applicable Company Settlement Statement: (i) all Collections, broken out by
territory (by way of example only: USA, Canada, UK, France, Japan), and to the
extent the Company receives the following information, such Collections shall also
be broken out within each territory, by media (by way of example only: theatrical,
home video, pay television, free television, merchandise); and (ii) the calculation
(and to the extent the Company receives such information, the recipient) of all
amounts to be applied, paid, recouped, offset, reimbursed or otherwise accounted for
pursuant to the Waterfall, including all residuals, participations and distribution
expenses.

          (i) Periodic Reporting Obligations. Notwithstanding anything to the contrary
contained in the Note Documents,

(i) within 60 days after the end of each Fiscal Quarter, the Company shall provide
to the Holders a detailed quarterly profit/deficit statement with respect to

12

 

each existing Film, setting forth the following items for the applicable Fiscal Quarter:
(a) all Collections, broken out as provided in Section 4(h)(ii) above; (b) all
residuals paid to any guild or union, and all participations paid to third parties
(whether styled or computed as gross receipts participations, net profits
participations, box office or other bonuses, or otherwise); and (c) all distribution
expenses relating to the Films that are deductible from the Waterfall (excluding
residuals), broken out by territory (by way of example only: USA, Canada, UK,
France, Japan) and within each territory, by category (by way of example only:
costs of theatrical prints, costs of transportation and shipping, costs of
advertising), in each case to the extent such information is available to the
Company; and

(ii) Within five (5) days after receipt of an ultimates/forecast from Overture of
“Law Abiding Citizen” pursuant to paragraph 10 of the Overture Distribution
Agreement, the Company shall be required to provide a copy such ultimates forecast
to the Collateral Agent and the Holders, together with the Company’s good faith
“lifetime” ultimate forecast of the anticipated performance of “Law Abiding Citizen”
and the Company’s good faith determination of whether Company anticipates a
Distribution Expense Shortfall (as defined in the Overture Distribution Agreement).
In the event Overture has not provided an ultimates/forecast of “Law Abiding
Citizen” within six (6) weeks after the initial domestic theatrical release of “Law
Abiding Citizen”, the Company shall provide its own ultimates forecast and
calculation of the Ultimate Value of “Law Abiding Citizen” no later than eight weeks
following such initial domestic theatrical release.

          (j) Certain Affirmative Covenants. Notwithstanding anything to the contrary
contained in the Note Documents, commencing upon the Effective Date, Holdings and the Company
shall cause each Company Party to do each of the following in compliance with the Applicable
Standard of Care:

(i) Commence or continue its efforts to obtain and consummate distribution
agreements for the existing Films or any territories or media that are unsold as of
the Effective Date.

(ii) Meaningfully consult with the Holders on (A) all material terms of (I) such
distribution agreements for the existing Films prior to entering into any such
distribution agreements and (II) any amendments, restatements, supplements or other
modifications (including waivers) of any material distribution terms of any
distribution agreement (whether such distribution agreement was originally entered
into before or after the Effective Date) prior to entering into any of the
foregoing, and (B) the strategy for procuring distribution agreements for the
existing Films in unsold territories.

(iii) Provide the Holders with correct and complete copies of (i) each distribution
agreement and other agreement entered into in connection with any Film, and all
amendments, restatements, supplements or other modifications (including waivers)
thereto in existence as of the Effective Date, and (ii) each

13

 

distribution agreement and other agreement entered into in connection with any Film and all amendments,
restatements, supplements or other modifications (including waivers) thereto that
are entered into by any Company Party on or after the Effective Date, in each case,
no later than seven Business Days after entering into any of the foregoing.

(iv) Negotiate all new distribution agreements and any amendments, restatements,
supplements or other modifications (including waivers) of any distribution agreement
(whether such distribution agreement was originally entered into before or after the
Effective Date), in each case, on an arm’s length basis to maximize the amounts
available to be distributed to the Holders under the Waterfall, in a manner
consistent with the standards of a fiduciary for the benefit of the Holders.

(v) Satisfy the requirements for delivery of either a notice of availability,
laboratory access or delivery of all delivery materials required by each
distribution agreement to the extent required to trigger payment of each applicable
installment of the minimum guarantee payable under such distribution agreement.

(vi) Protect and enforce their rights under each distribution agreement, including
collecting all amounts and other things of value due to any Company Parties
thereunder; subject to the terms of the Intercreditor Agreement, during the
continuance of an Event of Default, the Collateral Agent may enforce the obligations
of Persons obligated on such distribution agreements and exercise the rights of the
Company Parties with respect thereto.

(vii) Make, permit, consent to or approve any accountings of Collections, expenses
(including distribution expenses), and any other items that are payable prior to
distributions to be made to the Holders pursuant to any tier of the Waterfall.

          (k) Asset Purchase Option. The Company and Holdings hereby irrevocably grant the
Holders the option (the “Asset Purchase Option”) exercisable at the Holders’ sole
discretion at any time commencing on November 2, 2010, to acquire the Collateral (or such portion
thereof as the Holders may select) on the terms described on Exhibit C attached hereto and
incorporated herein by reference. The foregoing grant of an Asset Purchase Option is irrevocable
and is coupled with an interest.

          (l) Amendments to Film SPE Operating Agreements. The Company and Holdings shall, on
or before the Effective Date, cause each Film SPE to (i) amend its limited liability company
agreement substantially in the form attached hereto as Exhibit F or in such other form
acceptable to the Holders and their counsel in their sole and absolute discretion (an “A&R
Film SPE LLC Agreement”) and (ii) appoint 2 independent directors acceptable in the sole and
absolute discretion of the Holders to the boards (or other governing body provided for in it’s A&R
Film SPE LLC Agreement) of each Film SPE.

          (m) Note Documents. This Agreement and any other Second Lien Document entered in at
anytime by any of the Company Parties with the Collateral Agent

14

 

and/or the Holders shall constitute “Note Documents” for all purposes of the Securities Purchase Agreement and the other
Note Documents.

     5. CONDITIONS TO EFFECTIVENESS. Each of the Company and Holdings hereby agrees and
acknowledges that this Agreement shall not be effective and that the Collateral Agent and the
Holders shall have no obligation to forbear from exercising their respective rights, powers and remedies under the Note Documents or applicable law with respect to the Stipulated
Defaults until such time as each of the following conditions shall have been satisfied (or waived)
in form and substance satisfactory to the Collateral Agent and the Holders in their sole discretion
(the date the last of such conditions shall be satisfied (or waived) being referred to herein as
the “Effective Date”):

          (a) Approval of Holders’ Counsel. All legal matters incidental to the forbearance
and other agreements described herein shall be satisfactory to counsel to the Holders.

          (b) Satisfaction of the Overture Obligation. Confirmation from the Credit Agreement
Administrative Agent of its approval of the transferring in immediately available funds to
Overture of all sums on deposit in the Overture Reserve Account (which shall not be less than
$1,244,416.00) into an account designated by Overture in partial satisfaction of the Overture
Obligation.

          (c) Documentation. The Collateral Agent and the Holders shall have received:

     (i) counterparts of this Agreement duly executed by the Company, Holdings and
each of their respective Subsidiaries; and

     (ii) a copy of a fully executed Senior Credit Agreement Forbearance Agreement
in form and substance acceptable to the Collateral Agent and the Holders in the
exercise of their sole and absolute discretion; and

     (iii) a copy of a fully executed A&R Intercreditor Agreement in form and
substance acceptable to the Collateral Agent and the Holders in the exercise of
their sole and absolute discretion;

     (iv) a copy of a fully executed A&R Film SPE LLC Agreement with respect to each
Film SPE and evidence of the appointment of each independent manager required to be
appointed thereunder;

     (v) a certificate of a Responsible Officer of Holdings, attesting to, among
other things, (A) the due authorization of Holdings’ and each Company Party’s
execution, delivery and performance of this and Agreement and each other Second Lien
Document, (B) certifying as to attached copies of any resolutions approved by the
board and/or members of Holdings and/or any other Company Party with respect to the
approval of such Company Party’s execution, delivery and performance of this
Agreement and the other Second Lien Documents to which it is a party, and (C) the
incumbency of any Persons executing this

15

 

Agreement and any other Second Lien Documents on behalf of Holdings and any other Company Party a party thereto; and

     (vi) the executed A&R Notes.

     6. REPRESENTATIONS AND WARRANTIES. To induce the Collateral Agent and the Holders to
enter into this Agreement, the Company, Holdings and each other Company
Party each represent and warrant to the Collateral Agent and the Holders that: (a) such
Company Party is a corporation or limited liability company, as the case may be, duly organized,
validly existing and in good standing under the laws of the State of Delaware and has full power
and authority to execute and deliver, and to perform its obligations under, each of this Agreement
(including, for the avoidance of doubt, the Asset Purchase Option) and the Second Lien Documents to
which such Company Party is a party, (b) the execution, delivery and performance by the Company,
Holdings and such Company Party of this Agreement and all documents contemplated hereunder are
within such Company Party’s powers, have been duly authorized, executed and delivered by such
party, and are not in conflict with such Company Party’s articles, bylaws, limited liability
company agreement, operating agreement, partnership agreement or other organizational documents;
(c) this Agreement and all of the Second Lien Documents to which such Company Party is a party
constitute valid and binding obligations of each such Company Party enforceable in accordance with
their terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization,
moratorium, fraudulent transfer or conveyance or similar laws relating to or limiting creditors’
rights generally or by equitable principles relating to enforceability. Each Company Party’s
obligations to pay and perform the Obligations is absolute and unconditional, (d) there exists no
right of setoff or recoupment, counterclaim or defense of any nature whatsoever to such Company
Party’s complete payment and performance of the Obligations, and (e) such execution, delivery and
performance of this Agreement and each such Second Lien Document by each such Company Party will
not materially violate any law, rule or order of any court or governmental agency or body to which
such Company Party is subject; and does not result in the creation or imposition of any lien,
security interest or encumbrance on any now owned or hereafter acquired property of any Company
Party.

     7. NO AMENDMENT OR GENERAL WAIVER. This Agreement shall be limited solely to the
matters expressly set forth herein and, except as expressly provided herein, shall not (a)
constitute an amendment, modification or waiver of, or a forbearance with respect to, any other
term or condition of the Securities Purchase Agreement or any other Note Document, (b) prejudice,
restrict or affect any right or rights which Collateral Agent or any Purchaser may now have or may
have in the future under or in connection with the Securities Purchase Agreement or any other Note
Document, or (c) require Collateral Agent or any Purchaser to agree to a similar waiver or
forbearance on a future occasion.

     8. RESERVATION OF RIGHTS. The Stipulated Defaults are not intended to be an
exhaustive list of all Events of Default which have occurred and remain continuing under the Note
Documents and Collateral Agent and the Holders expressly reserve the right to declare additional
Events of Default, at their own discretion, at any such time as such other Events of Default shall
occur and be continuing. The Company and each other Company Party each hereby acknowledges and
agrees that this Agreement shall constitute notice that, subject to the terms and conditions set
forth herein, any forbearance beyond the Forbearance Termination Date

16

 

by Collateral Agent and the Holders from exercising their respective default rights, remedies, powers and privileges shall be
done solely at the election of Collateral Agent and the Holders, shall be temporary and on a
day-to-day basis and that Collateral Agent and the Holders reserve the right, without any further
notice or action, to immediately commence the exercise of any such default rights, remedies, powers
and privileges. Neither the Company nor any other Company Party should assume that because no such
action has been taken as of the date hereof, that default rights and remedies will not be exercised
in the future. The Company and each other Company Party each further acknowledges and agrees that the forbearance by the Collateral
Agent and the Holders of such rights and remedies during the Forbearance Period shall not
constitute a waiver of any of such rights and remedies, and that the Collateral Agent and the
Holders hereby expressly reserve all such rights and remedies that it has or may have against the
Company Parties or any other party to the Second Lien Documents whether under the Second Lien
Documents, applicable law or otherwise.

     9. CONTINUED ENFORCEABILITY OF NOTE DOCUMENTS; WAIVERS. Each of the Company and each
other Company Party expressly acknowledges and agrees that this Agreement constitutes receipt from
the Collateral Agent and the Holders of proper notice of default, notice of intent to accelerate
and opportunity to cure and demand for payment. Each of the Company and each other Company Party
hereby waives (a) any further notice of default, notice of intent to accelerate, or demand for
payment, and (b) any further opportunity to cure the Stipulated Defaults and any Default or Event
of Default resulting from the Company’s failure to perform, comply with and satisfy the terms of
this Agreement. Except as modified by this Agreement, each of the Company and each other Company
Party expressly acknowledges and agrees that the Securities Purchase Agreement and the other Note
Documents to which it is a party are valid and enforceable by Collateral Agent and the Holders
against it, and expressly reaffirms each of its Obligations under each Note Document to which it is
a party. The Company and each other Company Party further expressly acknowledge and agree that
Collateral Agent, on behalf of the Holders, has a valid, duly perfected, first priority and fully
enforceable security interest in and lien against each item of Collateral (except as otherwise
provided in the Intercreditor Agreement or the Note Documents). Each of the Company and the other
Company Parties agrees that it shall not dispute the validity or enforceability of the Securities
Purchase Agreement or any of the other Note Documents or any of its Obligations thereunder, or the
validity, priority, enforceability or extent of Collateral Agent’s security interest in or lien
against any item of Collateral. The Company and each of the other Company Parties hereby
acknowledge and agree that this Agreement shall be an Note Document and, as such, Collateral Agent
shall have the same rights and remedies under this Agreement as it has with respect to breaches of
covenants, representations and warranties in other Note Documents. Pursuant to Section 9-624 of
the UCC, each Company Party hereby irrevocably waives to the fullest extent permissible under the
UCC and other applicable law: (a) the right to notification of the disposition of any or all
Collateral pursuant to Section 6.11 of the UCC or any similar provisions under other applicable law
and (b) any and all rights it may possess to redeem the Collateral under Section 9-623 of the UCC
or any similar provisions under other applicable law.

     10. REPRESENTATIONS AND WARRANTIES. Except as previously disclosed to Collateral
Agent by the Company in writing (and subject in all respects to the Stipulated Events of Default),
each of the Company and each other Company Party hereby affirms to Collateral Agent and Holders
that all of its representations and warranties set forth in the Note Documents are true, complete
and accurate in all material respects as of the date hereof. Each Company

17

 

Party hereby represents that, after giving effect to this Agreement, other than the Stipulated Defaults, no Event of
Default has occurred and is continuing as of the date hereof. Each Company party agrees that any breach by any Company Party of the representations, warranties and covenants by it under this
Agreement shall be an Event of Default.

     11. REMEDIES UPON FORBEARANCE DEFAULT. Upon the occurrence of a Forbearance Default,
(a) the Forbearance Period will terminate without further act or action by the Collateral Agent or the Holders, and (b) the Collateral Agent and the Holders shall be
entitled immediately to exercise any and all rights and remedies available to them under the
Securities Purchase Agreement, any other Second Lien Document and this Agreement, at law, in
equity, or otherwise, without further opportunity to cure, demand, presentment, notice of dishonor,
notice of default, notice of intent to accelerate, notice of intent to foreclose, notice of protest
or other formalities of any kind, all of which are hereby expressly waived by the Company Parties.

     12. RELEASE. EACH OF THE COMPANY AND THE OTHER COMPANY PARTY HEREBY ACKNOWLEDGES THAT
AS OF THE DATE HEREOF IT HAS NO DEFENSE, COUNTERCLAIM, OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND OF
ANY KIND OR NATURE WHATSOEVER (OTHER THAN PAYMENT) THAT CAN BE ASSERTED TO (I) REDUCE OR ELIMINATE
ALL OR ANY PART OF ITS OBLIGATIONS OR LIABILITIES UNDER THE NOTE DOCUMENTS OR (II) SEEK AFFIRMATIVE
RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM AGENT OR ANY HOLDER OR THEIR RESPECTIVE AFFILIATES OR
PARTICIPANTS, OR ANY OF THEIR RESPECTIVE DIRECTORS, MANAGERS, MEMBERS, PARTNERS, OFFICERS, AGENTS,
EMPLOYEES OR ATTORNEYS (THE “COVERED PERSONS”). EACH OF THE COMPANY AND THE OTHER COMPANY
PARTIES HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES EACH OF THE COVERED
PERSONS, AND THEIR SUCCESSORS AND ASSIGNS, FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF
ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR
UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN EQUITY,
WHICH EITHER THE COMPANY OR SUCH COMPANY PARTY MAY NOW OR HEREAFTER HAVE AGAINST ANY COVERED
PERSON, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW
OR REGULATIONS, OR OTHERWISE, WITH RESPECT TO MATTERS OCCURRING OR ARISING PRIOR TO THE
EFFECTIVENESS OF THIS AGREEMENT AND ARISING FROM OR IN RESPECT OF THE NOTE DOCUMENTS.

          Each of the Company and each other Company Party hereby waives the provisions of any
applicable laws (including Section 1542 of the California Civil Code) restricting the release of
claims which the releasing parties do not know or suspect to exist at the time of release, which,
if known, would have materially affected the Company’s or such Company Party’s decision to agree to
such release. Each of the Company and each other Company Party hereby agrees, represents and
warrants to Collateral Agent, the Holders and their respective affiliates and participants, and
their respective predecessors, agents, officers, directors, employees, successors and assigns that
it realizes and acknowledges that factual matters now unknown to the Company or such Company Party
may have given or may hereafter give rise to causes of action, claims, demands, debts,
controversies, damages, costs, losses and expenses

18

 

which are presently unknown, unanticipated and unsuspected, and the undersigned further agrees, represents and warrants that the release provided
hereunder has been negotiated and agreed upon in light of that realization and that the Company and
such Company Party nevertheless hereby intend to release, discharge and acquit the Covered Persons,
and their successors and assigns, from any such unknown claims. Section 1542 of the California
Civil Code provides as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE
MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

The Company and each Company Party agrees this section shall be immediately effective as to the
Company and each Company Party on the date such party executes this Agreement. The effectiveness
of this section shall survive the Forbearance Termination Date or any other termination of this
Agreement.

     13. REAFFIRMATION AND AMENDMENT OF GUARANTY. Each of the Company Parties who are
Guarantors acknowledges the terms of the Agreement and reaffirms and agrees that: (i) the Guaranty
and Security Agreement remains in full force and effect and that it Guaranty Obligations cover the
full and punctual payment of the Obligations (payable without demand upon any failure by the
Company or any other Note Party obligated thereon to make payment thereof and including any damages
incurred by Collateral Agent or Holders arising therefrom); (ii) nothing in such Guaranty and
Security Agreement obligates Collateral Agent or any Holder to notify the undersigned of any
changes in the financial accommodations made available to the Company or to seek reaffirmations of
such Guaranty Obligation; and (iii) no requirement to so notify any Guarantor or to seek
reaffirmations in the future shall be implied by this reaffirmation.

     14. RELIEF FROM STAY. Each Company Party hereby agrees that, in consideration of the
forbearance provided for in this Agreement, in the event such Company Party shall (a) file a
voluntary petition with any the bankruptcy court of competent jurisdiction or be the subject of any
petition under the Bankruptcy Code, (b) be the subject of any order for relief issued under the
Bankruptcy Code, (c) file or be the subject of any petition seeking any reorganization,
arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any
present or future federal or state act or law relating to bankruptcy, insolvency, or other relief
for debtors, (d) have sought or consented to or acquiesced in the appointment of any trustee,
receiver, conservator, or liquidator, (e) be the subject of any order, judgment, or decree entered
by any court of competent jurisdiction approving a petition filed against such party for any
reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief
under any present or future federal or state act or law relating to bankruptcy, insolvency, or
relief for debtors, the Collateral Agent and the Holders shall, subject to the terms of the
Intercreditor Agreement, thereupon be entitled to relief from any automatic stay imposed by Section
362 of the Bankruptcy Code, or otherwise, on or against the exercise of the rights and

19

 

remedies otherwise available to the Collateral Agent and the Holders as provided in the Note Documents and
this Agreement, and as otherwise provided by law.

     15. TIME OF ESSENCE. Time is of the essence for all payments to be made and all
obligations to be performed under this Agreement and the Second Lien Documents.

     16. FURTHER ASSURANCES. Each of the Company and the other Company Parties agrees that
it will promptly execute and deliver to Collateral Agent all further instruments
and documents, and take all further action, that may be necessary, or that Collateral Agent
may reasonably request, in order to give effect to, or implement to the fullest extent, each of the
terms and provisions of this Agreement.

     17. NOTICES. All notices, requests, demands and other communications which are
required or may be given under this Agreement shall be given in accordance with Section 11.11 of
the Securities Purchase Agreement.

     18. NO WAIVER. Collateral Agent’s or the Holders’ failure, at any time or times
hereafter, to require strict performance by the Company Parties of any provision or term of this
Agreement, the Securities Purchase Agreement or any other Second Lien Document shall not waive,
affect or diminish any right of Collateral Agent and/or the Holders thereafter to demand strict
compliance and performance therewith.

     19. SOLE BENEFIT OF PARTIES. This Agreement (including each Annex hereto) is solely
for the benefit of the parties hereto and their respective successors and assigns, and no other
Person shall have any right, benefit or interest under or because of the existence of this
Agreement.

     20. LIMITATION ON RELATIONSHIP BETWEEN PARTIES. The relationship of Collateral Agent
and the Holders, on the one hand, and the Company Parties, on the other hand, with respect to the
Securities Purchase Agreement, the Notes and the other Second Lien Documents, has been and shall
continue to be, at all times, that of creditor and debtor. Nothing contained in this Agreement,
any instrument, document or agreement delivered in connection herewith, the Securities Purchase
Agreement or any of the other Second Lien Documents shall be deemed or construed to create a
fiduciary relationship among any of the parties hereto.

     21. NO ADVERSE CONSTRUCTION. Neither this Agreement nor any of the Second Lien
Documents shall be construed more strictly against the Collateral Agent or any Holder merely by
virtue of the fact that the same have been prepared by the Collateral Agent, the Holders or their
respective counsel, it being recognized that the Company Parties have contributed substantially and
materially to the preparation of this Agreement and the Second Lien Documents.

     22. NO ASSIGNMENT. This Agreement (including each Annex hereto) shall not be
assignable by the Company Parties, or any one of them, without the prior written consent of the
Holders. The Collateral Agent and the Holders may assign to one or more Persons all or any part
of, or any participation interest in, Collateral Agent’s or such Holder’s rights and benefits
hereunder in accordance with the Securities Purchase Agreement.

20

 

     23. ENTIRE AGREEMENT; MISCELLANEOUS. This Agreement, as modified by the email of
September 2, 2009 from Jane McDonald to Mark Gill, Neil Sacker and the other addressees and persons
copied thereon to which this Agreement is an attachment, constitutes the entire understanding and
agreement among the parties hereto with respect to the subject matter hereof and supersedes any
prior agreements, oral or written, with respect thereto. The section and subsection titles
contained in this Agreement are included for the sake of convenience only, and shall not affect the
meaning or interpretation of this Agreement, the Securities Purchase Agreement or any other Second
Lien Documents or any provisions hereof or thereof.

     24. LIMITED EFFECT. In the event of a conflict between the terms and provisions of
this Agreement and the terms and provisions of the Securities Purchase Agreement and other Note
Documents, the terms and provisions of this Agreement shall govern. In all other respects, the
Note Documents shall remain in full force and effect.

     25. WAIVER OF JURY TRIAL. THE PARTIES HERETO, AND EACH OF THEM, HEREBY IRREVOCABLY
WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR
RELATING TO ANY OF THE SECOND LIEN DOCUMENTS, THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED
THEREBY OR HEREBY.

     26. NO ORAL MODIFICATION. Neither this Agreement nor any provisions hereof may be
changed, waived, discharged or terminated, nor may any consent to the departure from the terms
hereof be given, orally (even if supported by new consideration), but only by an instrument in
writing signed by all parties to this Agreement. Any waiver or consent so given shall be effective
only in the specific instance and for the specific purpose for which given.

     27. SEVERABILITY. In the event any one or more of the provisions contained in this
Agreement is held to be invalid, illegal or unenforceable in any respect, then such provision shall
be ineffective only to the extent of such prohibition or invalidity, and the validity, legality,
and enforceability of the remaining provisions contained herein shall not in any way be affected or
impaired thereby.

     28. SURVIVAL. All representations, warranties, indemnities, waivers and releases of
each Company Party made in this Agreement shall survive the expiration or termination of the
Forbearance Period and the termination or other cancellation of this Agreement.

     29. GOVERNING LAW; ENTIRE AGREEMENT. IN ALL RESPECTS, INCLUDING ALL MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS
MADE AND INTENDED TO BE PERFORMED IN THAT STATE (WITHOUT REGARD TO THE CHOICE OF LAW OR CONFLICTS
OF LAW PROVISIONS THEREOF) AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

     30. CONSULTATION WITH COUNSEL. Each of the Company Parties represents to Collateral
Agent that it has discussed this Agreement with its attorneys.

21

 

     31. COUNTERPARTS. This Agreement may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the same agreement.
Facsimile signatures shall for all purposes be treated and considered as original signatures
hereto, which shall fully bind the signatories hereto.

[THIS SPACE INTENTIONALLY LEFT BLANK —

SIGNATURE PAGES TO FOLLOW]

22

 

     IN WITNESS WHEREOF, the parties hereto have executed this Waiver and Forbearance Agreement as
of the date first written above.

	 	 	 	 	 
	 	THE FILM DEPARTMENT LLC

By: THE FILM DEPARTMENT HOLDINGS LLC, its sole Member

 	 
	 	By:  	/s/
Neil Sacker
 	 
	 	 	Neil Sacker, President & 
Chief Operating Officer  	 
	 
	 	THE FILM DEPARTMENT HOLDINGS LLC

 	 
	 	By:  	/s/
Neil Sacker
 	 
	 	 	Neil Sacker, President & Chief Operating Officer 	 
	 	 	 	 
	 
	 	TFD LITERARY ACQUISITIONS, LLC

By: THE FILM DEPARTMENT HOLDINGS LLC, its sole Member

 	 
	 	By:  	/s/
Neil Sacker
 	 
	 	 	Neil Sacker, President & Chief Operating Officer 	 
	 	 	 	 
	 
	 	REBOUND DISTRIBUTION, LLC

By: THE FILM DEPARTMENT LLC, its Managing Member

 	 
	 	By:  	/s/ Neil Sacker

 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Agreement and Amendment to

Securities Purchase Agreement

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	LAC FILMS, LLC

By: THE FILM DEPARTMENT LLC, its Managing Member

 	 
	 	By:  	/s/
Neil Sacker
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	ETON PARK CLO MANAGEMENT 1

By: Eton Park Asset Management, L.L.C, as Collateral Manager, as a Holder

 	 
	 	By:  	/s/
Terrence Aquino
 	 
	 	 	Name:  	Terrence Aquino	 
	 	 	Its:  Controller	 
	 
	 	ETON PARK CLO MANAGEMENT 2

By: Eton Park Asset Management, L.L.C., as Collateral Manager, as a Holder

 	 
	 	By:  	/s/
Terrence Aquino
 	 
	 	 	Name:  	Terrence Aquino	 
	 	 	Its:  Controller	 
	 
	 	ETON PARK MASTER FUND, LTD.

BY: Eton Park Capital Management, L.P., its Investment Manager, as a Holder

 	 
	 	By:  	/s/
Terrence Aquino
 	 
	 	 	Name:  	Terrence Aquino	 
	 	 	Its:  Controller	 
	 
	 	ETON PARK FUND, L.P.

By: Eton Park Capital Management, L.P., its investment manager, as a Holder

 	 
	 	By:  	/s/
Terrence Aquino
 	 
	 	 	Name:  	Terrence Aquino	 
	 	 	Its:  Controller	 

Agreement and Amendment to

Securities Purchase Agreement

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	UNION BANK, N.A., as Collateral Agent

 	 
	 	By:  	/s/
Alex Cho	 
	 	 	Name:  	Alex Cho 	 
	 	 	Its: Duly Authorized Signatory 	 

Agreement and Amendment to

Securities Purchase Agreement

 

 

	 	 	 	 	 

EXHIBIT A

[NOTE: SUBJECT TO REVIEW OF FINAL SENIOR FORBEARANCE

AGREEMENT’S PAYMENT WATERFALL WITH RESPECT TO PAYMENTS TO 
COMPLETION BOND PROVIDERS]

COLLECTION ACCOUNT PAYMENT WATERFALL

     (a) Subject to paragraph (b) below, on each Settlement Date (as defined in the Credit
Agreement), the Credit Agreement Administrative Agent shall (if the Credit Agreement Administrative
Agent has approved the Company Settlement Statement delivered by the Company) (and after the
satisfaction of the Senior Obligations, the Collateral Agent shall): (i) if the Collection Bank is
also the Credit Agreement Administrative Agent, apply all collected and available funds on deposit
in the Collection Account (including any investment earnings received with respect to such funds);
or (ii) if the Collection Bank is not also the Credit Agreement Administrative Agent, instruct the
Collection Bank in writing to apply all collected and available funds on deposit in the Collection
Account (including any investment earnings received with respect to such funds), in each case in
the following order of priority and in accordance with such Company Settlement Statement:

          (i) first, to the extent not deducted directly out of revenues prior to deposit into
the Collection Account or otherwise paid, to the “P&R Reserve Account” (as defined in the Credit
Agreement) for payment by the Company and/or any appropriate Note Party to third parties (that are
not Affiliates) of participations and residuals (to the extent not previously paid) in respect of
any Film; provided, that: (A) in no event shall any sums in such P&R Reserve Account
designated and reserved for the payment of residuals in respect of any Film be retained in such P&R
Reserve Account for more than 12 months following the date of their deposit therein, and any such
sums that have not been paid to the applicable recipient by such time shall be applied to the next
applicable tier of this Waterfall; and (B) in no event shall any sums designated and reserved for
payment of participations in respect of any Film be retained in such P&R Reserve Account for more
than four (4) months following the date of their deposit therein, and any such sums that have not
been paid to the applicable recipient by such time shall be applied to the next applicable tier of
this Waterfall;

          (ii) second, ratably, to the account of the Administrative Agent designated in
accordance with Section 2.13(a) of the Credit Agreement, for payment by the Administrative Agent of
any and all outstanding Senior Obligations;

          (iii) third, to an account designated by the Credit Agreement Administrative Agent for
payment of a [______] fee in the amount of $250,000;

          (iv) fourth, to an account designated by the Collateral Agent, for distributions to
the Holders to be applied against all outstanding Obligations incurred by the Holders at any time
in connection with the preparation of this Agreement or any of the Second Lien Documents, until
such time as all outstanding Obligations have been repaid in full in cash; and

          (v) fifth, to an account designated by the Company in writing.

 

 

     (b) If, on any Settlement Date, the Collection Account contains any Collections paid or
remitted by Overture pursuant to the Overture Agreement, or the proceeds thereof (“Overture
Proceeds”), and the Holders have not theretofore received full repayment (pursuant to this
paragraph (b)) of the principal portion of the Overture Advance and all accrued and unpaid interest
thereon (provided, that only that portion of interest accruing on the Overture Advance at the
non-default rate of 12.0% per annum shall be payable under this paragraph (b) to the Holders),
then, notwithstanding the order of priority set forth in paragraph (a) above, all Overture Proceeds
shall be applied (i) first, solely with respect to the residuals referenced in paragraph (a)(i)
above (and not with respect to the participations referenced in such paragraph), for payment of
such residuals in accordance with such paragraph (a)(i), and (ii) second, to an account designated
by the Collection Agent for distributions to the Holders, until such time as the Holders have
received (pursuant to this paragraph (b)) the full repayment of the Overture Advance and all
accrued and unpaid interest thereon (provided, that only that portion of interest accruing on the
Overture Advance at the non-default rate of 12.0% per annum shall be payable under this paragraph
(b) to the Holders).

 

 

EXHIBIT B

[FORM OF INTERIM OPERATING BUDGET]

[See attached]

 

 

EXHIBIT C

ASSET PURCHASE OPTION TERMS

This Summary of Terms summarizes the principal terms and conditions of a proposed transaction
in which a newly formed company (“Newco”) affiliated with Eton Park Capital Management, L.P. and
its affiliates (“Eton Park”), may, at its option, acquire from The Film Department Holdings LLC, a
Delaware limited liability company (the “Holdings”), and its subsidiaries substantially all of
their assets (or any portion thereof) and certain specifically identified liabilities.

	 	 	 

	Asset Sale:

	 	Commencing on November 2, 2010, Newco
shall have the right, at its option, to
purchase (or acquire pursuant to a full or
partial “strict foreclosure” in accordance
with Section 9-620 of the UCC) all or any
portion of the assets of Holdings and its
subsidiaries and shall assume (i) all
indebtedness of Holdings and/or the
Company outstanding under (x) that certain
Credit Agreement, dated as of June 27,
2007(the “Credit Agreement”) to extent
constituting “Senior Obligations” under
the Agreement to which this term sheet is
attached and (y) those certain Secured
Second Lien Notes due 2014 (the “Notes”)
and (ii) specifically identified contracts
of Holdings or its subsidiaries (e.g.
office space and equipment leases,
employment contracts and software
licenses) (collectively, the “Assumed
Liabilities” and together with the
acquisition of the assets, the “Asset
Sale”).
	 
	 	 
	Consideration:

	 	Newco will assume the Assumed Liabilities
and issue warrants exercisable for equity
in Newco upon the terms described below
(and if the Asset Sale is conducted as a
strict foreclosure, a portion of the
Indebtedness under the Notes may be
applied as partial consideration as
determined by Eton Park).
	 
	 	 
	Ownership of Newco:

	 	Newco shall be owned by Eton Park or its
designee and, upon exercise of the
Warrants (as defined herein), to the
extent provided in the Warrants, the
warrantholders.
	 
	 	 
	Conditions Precedent:

	 	The Asset Sale will be subject to:
	 
	 	 
	 

	 	•   the absence of the occurrence or
existence of an event of default under the
Credit Agreement or the Notes (other than
the Stipulated Events of Default);

	 
	 	 
	 

	 	•   receipt of all requisite consents
required from third parties including
those required by the Credit Agreement,
including appropriate modifications to the
senior bank group loan documentation and
collateral package to effectuate the
transaction contemplated hereby and
confirmation that Newco would be permitted
to receive disbursements of amounts held
in the Overhead Reserve Account in
accordance with the terms of Section
4(d)(ii) of the Senior Credit Agreement
Forbearance Agreement and Sections 4(f)

 

 

	 	 	 

	 

	 	and (h) of this Agreement;

	 
	 	 
	 

	 	•   employment services agreements
with certain members of Holdings
management; and

	 
	 	 
	 

	 	•   such other conditions as are
customary for a transaction of this
nature.

	 
	 	 
	Representations and
Warranties; Covenants

	 	Holdings and its subsidiaries will make
representations and warranties typical for
a transaction of the type contemplated
herein with respect to the operation of
the business and the condition and
maintenance of the purchased assets.
Holdings and its subsidiaries will make
standard covenants concerning (a) the
conduct of the business prior to the
closing of the Asset Sale and (b)
preservation of the purchased assets.
	 
	 	 
	Indemnities

	 	Holdings and its subsidiaries will
indemnify Newco and its affiliates against
and hold each of them harmless from any
and all loss, liability, damage and
expense incurred or suffered due to: (a)
any breach of covenant or agreement made
or to be performed by Holdings and its
subsidiaries and their respective
affiliates under the definitive purchase
agreement or any other related agreement;
(b) the failure of any of the
representations or warranties made by
Holdings and its subsidiaries in the
definitive purchase agreement or in any
related agreement to be true and correct
in all respects at and as of the closing
date of the Asset Sale and (c) any
excluded liabilities.
	 
	 	 
	Warrants:

	 	At the closing of the Asset Sale, Newco
shall issue warrants to (i) certain
members of Newco management exercisable
for an aggregate amount of 5% of Newco’s
equity (the “Management Warrants”), and
(ii) the other equityholders of Holdings
(excluding management) exercisable for an
aggregate amount of 5% of Newco’s equity
(the “Holdco Warrants”) (together, the
”Warrants”). The Warrants will expire ten
years from the date of issuance and (i)
the Management Warrants shall be first
exercisable at such time as Eton Park
shall have received (a) full repayment of
(i) the Overture Advance and (ii) any
Obligations consisting of costs and
expenses (including attorneys fees and
expenses) incurred at any time by the
Holders in connection with the negotiation
and preparation of this Agreement, the
Second Lien Documents, all documents
drafted in connection the proposed
restructuring of the Company’s Obligations
that preceded the parties’ entry into this
Agreement and any costs and expenses that
may be incurred by the Holders in respect
of any further modification, amendments,
restructuring, “workout”, or exercise of
remedies in relation to this Agreement or
any Second Lien Documents and (b) $20
million in additional repayments on the
Notes (exclusive of (I) the repayment of
the amounts described in clauses (i) and
(ii) above and (II) any funds placed into
escrow and released to the Company
pursuant to the “Management Bonus Pool”

 

 

	 	 	 

	 

	 	provisions outlined on Exhibit D to this
Agreement), and (ii) the Holdco Warrants
shall be first exercisable at such time as
Eton Park shall have received $30 million
in repayment on the Notes (exclusive of
(I) the repayment of the amounts described
in clauses (i) and (ii) above and (II) any
funds placed into escrow and released to
the Company pursuant to the “Management
Bonus Pool” provisions outlined on Exhibit D to this Agreement), in each case, at an
exercise price of $1.00.
	 
	 	 
	 

	 	The Warrants will contain customary
provisions in the event of a stock split
or other recapitalization event or a sale
of Newco.
	 
	 	 
	Due Diligence:

	 	Following notice that Eton Park intends to
exercise its purchase option, Eton Park
and its agents shall be provided
reasonable access to, and full information
with respect to, Holdings’ and its
subsidiaries’ books and records, products,
premises, and personnel for the purpose of
completing Eton Park’s due diligence
investigation of Holdings’ business.
Holdings further agrees that it shall
authorize and direct the appropriate
managers and employees of Holdings and its
subsidiaries to assist Eton Park in, and
Eton Park is authorized to, contact prior
to the closing and without the prior
consent of Holdings, any landlord,
customer, supplier, distributor or other
material business relation of Holdings.
All confidential and proprietary
information obtained by Eton Park and its
agents during the course of such
investigation will be maintained by Eton
Park and its agents on a confidential
basis.
	 
	 	 
	Confidentiality:

	 	Prior to the execution of definitive
documentation, neither Holdings nor Eton
Park will, without first obtaining the
approval of the other, make any public
announcement, directly or indirectly,
regarding the Asset Sale, nor disclose the
existence of this Summary of Terms or the
nature of the Asset Sale to any person
except as required by law or regulatory
bodies and other than to the respective
principals or other representatives of
Holdings and Eton Park, each of whom shall
be similarly bound by such confidentiality
obligations.

 

 

EXHIBIT D

MANAGEMENT BONUS POOL

     At such time as the Holders have received (i) repayment of the Overture Advance and (ii)
repayment of any Obligations consisting of costs and expenses (including attorneys fees and
expenses) incurred at any time by the Holders in connection with the negotiation and preparation of
this Agreement, the Second Lien Documents, all documents drafted in connection the proposed
restructuring of the Company’s Obligations that preceded the parties’ entry into this Agreement and
any costs and expenses that may be incurred by the Holders in respect of any further modification,
amendments, restructuring, “workout”, or exercise of remedies in relation to this Agreement or any
Second Lien Documents, the Holders shall deposit 5% of the next $20 million received by them as
repayment on the Notes (exclusive of the repayment of the amounts described in clauses (i) and (ii)
above) with an escrow agent for the benefit of Company management. The escrowed funds will be
released to an account designated by the Company at such time as the Holders have received
aggregate payments (exclusive of the repayment of the amounts described in clauses (i) and (ii)
above) on the Notes of $21 million (“Release Date”) and shall be utilized by the Company for the
sole purpose of issuing performance bonuses to those members of the Company’s management that have
been approved by the Holders. If the Release Date has not occurred by [____ __, 2010], the
escrow corpus will revert back to the Holders.

 

 

EXHIBIT E

[FORM OF A&R NOTE]

[See attached]

 

 

EXHIBIT F

[FORM OF AMENDED & RESTATED FILM SPE OPERATING AGREEMENT]

[See attached]

 

 

ANNEX I TO FORBEARANCE AGREEMENT AND

AMENDMENT NO. __ TO SECURITIES PURCHASE AGREEMENT

STIPULATED DEFAULTS

1) Interest Payment Event of Default Date; and

2) Failure to timely perform its obligations under the Overture Agreement.

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