Document:

exv10w37

Exhibit 10.37

No. ____

THIS WARRANT MAY NOT BE EXERCISED PRIOR TO ___, 2010 AND MAY NOT BE SOLD, TRANSFERRED OR
ASSIGNED PRIOR TO THAT DATE EXCEPT TO AN OFFICER OR PARTNER OF THE HOLDER. THIS WARRANT WILL
EXPIRE AND BE VOID AFTER ___, 2015.

Warrant To Purchase Up To 160,000 Shares

of

THE FILM DEPARTMENT HOLDINGS, INC.

(A Delaware Corporation)

     THIS CERTIFIES THAT, in consideration of that certain Investment Advisory Services letter
agreement dated March 30, 2010, the Film Department Holdings, Inc. (the “Company”) grants to Girard
Securities, Inc. (the “Holder”) as registered owner of this Warrant the right to purchase at any
time or from time to time at or after ___, 2010 and at or before 5:00 p.m., Eastern Time,
___, 2015 (the “Termination Date”), but not thereafter, 160,000 shares of common stock, ___
par value (“Common Stock”) of the Company. This Warrant is exercisable at $___ per share so
purchased (the “Exercise Price”), upon presentation and surrender of this Warrant and upon payment
of the Exercise Price for such of the Common Stock at the principal office of the Company;
provided, however, that upon the occurrence of any of the events specified in the Statement of
Rights of Warrant, a copy or which is attached as Annex I hereto and by this reference made a part
hereof, the rights granted by this Warrant, including the number of shares of Common Stock to be
received upon such exercise, shall be adjusted as therein specified. If the Termination Date is a
day on which banking institutions are authorized by law to close, then this Warrant may be
exercised in accordance with the terms herein on the next succeeding day which is not such a day on
which banking institutions are authorized by law to close. During the period ending on the
Termination Date, the Company agrees not to take any action that would terminate the Warrant.

     This Warrant may be exercised, in whole or in part, at any time and from time to time during
the Exercise Period. Such exercise shall be accomplished by tender to the Company of the purchase
price set forth above as the warrant price (the “Warrant Price”), either (a) in cash, by wire
transfer or by certified check or bank cashier’s check, payable to the order of the Company, or (b)
by surrendering all or a portion of the of the Warrant using the amount by which the Fair Market
Value, as defined, exceeds the Warrant Price to purchase a number of shares of Common Stock without
the payment of any cash as illustrated in the formula provided below (a “Cashless Exercise”),
together with presentation and surrender to the Company of this Warrant with an executed form of
election and instructions for registration in substantially the form attached hereto as Exhibit A.
Upon receipt of the foregoing, the Company will deliver to the Holder, as promptly as possible but
in no event more than three business days, a certificate or certificates representing the shares of
Common Stock so purchased, registered in the name of the Holder or its transferee. With respect to
any exercise of this Warrant, the Holder will for all purposes be deemed to have become the holder
of record of the number of shares of Common Stock purchased hereunder on the date this Warrant and
payment of the Warrant Price is received by the Company (the “Exercise Date”), irrespective of the
date of delivery of the certificate evidencing such shares, except that, if the date of such
receipt is a date on which the stock transfer books of the Company are closed, such person will be
deemed to have become the holder of such shares at the close of business on the next succeeding
date on which the stock transfer books are open. Fractional shares of Common Stock will not be
issued upon the exercise of this Warrant. In lieu of any fractional shares that would have been
issued but for the immediately preceding sentence, the Holder will be entitled to receive cash
equal to the current Fair Market Value of such fraction of a share of Common Stock on the trading
day immediately preceding the Exercise Date. In the event this Warrant is exercised in part, the
Company shall issue a new Warrant to the Holder covering the aggregate number of shares of Common
Stock for which this Warrant remains exercisable.

 

 

If the Holder elects to conduct a Cashless Exercise, the Company
shall cause to be delivered to the Holder a certificate or certificates representing the
number of shares of Common Stock computed using the following formula:

	 	 	 	 
	X = Y

	*
	(A-B)	 
	 

	 	 	 
	 

	 	A	 
	Where:
	 	 	 
	
	
	
	

	 

	 	X =
	the number of shares of Common Stock to be issued to the Holder;
	
	
	
	

	 

	 	Y =
	the portion of the Warrant (in number of shares of Common
Stock) being exercised by the Holder (at the date of such
calculation);
	
	
	
	

	 

	 	A =
	the Fair Market Value of one share of Common Stock on the
Exercise Date (as calculated below); and
	
	
	
	

	 

	 	B =
	the Warrant Price.

For purposes of the foregoing calculation, “Fair Market Value of one share of Common Stock on the
Exercise Date” shall mean: (i) if the principal trading market for such securities is a national
securities exchange, the Nasdaq Stock Market or the Over-the-Counter Bulletin Board (“OTCBB”), the
closing or last sale price on such exchange or market (during regular hours) on the last trading
day immediately prior to such Exercise Date; or (ii) if (i) is not applicable, and if bid and ask
prices for shares of Common Stock are reported by the National Quotation Bureau (“NQB”), the
average of the high bid and low ask prices so reported on the last trading day immediately prior to
such Exercise Date. Notwithstanding the foregoing, if there is no reported closing price, last
sales price, or bid and ask prices, as the case may be, for the period in question, then the Fair
Market Value shall be determined in good faith by, and reflected in a formal resolution of the
Board of Directors of the Company.

     Upon exercise of this Warrant, the form of election attached hereto as Exhibit A must be duly
executed and the instructions for registration of the Common Stock acquired by such exercise must
be completed. If the subscription rights represented hereby shall not be exercised at or before
5:00 p.m., Eastern Time, on the Termination Date, then, from and after such date and time, this
Warrant shall become and be void without further force or effect, and all rights represented hereby
shall cease and expire.

     The registered Holder of this Warrant, by its acceptance hereof, agrees that it will not sell,
transfer or assign or hypothecate this Warrant prior to ___, 2010 to anyone other than an
officer or partner of such Holder. Subsequent to that date, this Warrant may be assigned by the
Holder in whole or in part by execution by the Holder of the form of assignment, a copy of which is
attached hereto as Exhibit B, to certain persons, including dealers or their officers or partners,
In the event of any assignment made as aforesaid, the Company, upon request and surrender of this
Warrant by the Holder at the principal office of the Company accompanied by payment of all transfer
taxes, if any, payable in connection therewith, shall transfer this Warrant on the books of the
Company and shall execute and deliver a new Warrant or Warrants of like tenor to the appropriate
assignee expressly evidencing the right to purchase the aggregate number of Common Stock
purchasable hereunder or such portion of such aggregate number as shall be contemplated by any such
agreement.

     Notwithstanding anything herein to the contrary, each certificate for securities purchased
under this Warrant shall bear a legend as follows:

“THE SHARES REPRESENTED BY THIS STOCK CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE FEDERAL
OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR HYPOTHECATED IN THE ABSENCE
OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH LAWS AS MAY BE APPLICABLE OR AN OPINION OF
COUNSEL

2

 

REASONABLY SATISFACTORY TO THE CORPORATION THAT AN EXEMPTION FROM SUCH APPLICABLE LAWS
EXISTS.”

     The Holder agrees for itself and all subsequent owners, that before any disposition is made of
any securities purchased pursuant to the Warrant, the owner shall give written notice to the
Company describing briefly the manner of any such proposed disposition. The securities shall not be
transferred unless and until (i) the Company has received the opinion of counsel for such owners
that the securities may be sold pursuant to an exemption from registration under the Securities Act
of 1933 (the “Act”), or (ii) a Registration Statement relating to such securities has been filed by
the Company and declared effective by the Securities and Exchange Commission (the “Commission”).

     Subject to the above, this Warrant may be exercised or assigned in whole or in part. In the
event of the exercise or assignment hereof in part only, upon surrender of this Warrant for
cancellation, together with the duly executed exercise or assignment and funds sufficient, to pay
any transfer tax, the Company shall cause to be delivered to the Holder without charge a new
Warrant of like tenor to this Warrant in the name of the Holder evidencing the right of the Holder
to purchase the number of Common Stock purchasable hereunder as to which this Warrant has not been
exercised or assigned.

     Upon receipt of the Company of evidence satisfactory to it of the loss, theft, destruction or
mutilation of this Warrant and execution of a customary affidavit of loss and indemnity agreement,
the Company shall execute and deliver a new Warrant of like tenor and date. Any such new Warrant
executed and delivered as a result of such loss, theft, mutilation or destruction shall constitute
an additional contractual obligation on the part of the Company.

     The Company, upon request of the then Holder(s) of a majority of the outstanding Warrant or
shares of Common Stock issuable upon exercise of the Warrant, agrees to register expeditiously, on
one occasion, the Common Stock underlying the Warrants and will file on such occasion a
registration statement on Form S-3 (subject to the Company’s eligibility to use such form) covering
such Common Stock underlying the Warrants. Such request must be made at any time during a period of
four and one-half years beginning six months from the effective date of the Company’s initial
public offering filed with the Securities and Exchange Commission on Form S-1, file number
333-163514. In connection with the request, the Company shall bear all expenses, one time only,
attendant to registering the securities and shall immediately after the receipt of the registration
request, give a notice to the other holders of Warrants who shall have 20 days to elect to include
their shares of Common Stock in such registration. In addition, for a period of four and one-half
years beginning six months after the date of the Warrant, the holders of the Warrants shall have
the right to include such securities as part of any other registration of securities, other than on
Forms S-4, S-8 or other inappropriate form, filed by the Company; provided, that if in the
opinion of the managing underwriter in connection with any such offering the aggregate number of
shares to be sold in such offering exceeds the maximum number which may be distributed without
adversely affecting the price, timing or distribution of the shares being distributed, then each
holder of Warrants shall be entitled to include in such registration not more than its pro rata
portion of such maximum number of shares. The Company shall bear all expenses attendant to such
registrations, and agrees to give the holders thereof not less than 30 days’ written notice
thereof, including any terms or conditions, prior to the filing of any such registration statement
with the Commission. The Company agrees to use its best efforts to promptly file and cause the
filing required herein to become effective to register the Common Stock underlying the Warrants and
to use its best efforts to keep the registration statement current and accurate for a period of 180
days (12 months on Form S-3).

     In each instance in which registration of the Common Stock underlying the Warrant is required,
the Company shall:

     (1) Supply to the Holders intending to make a public distribution of their Common
Stock, one executed copy of each registration statement and a reasonable number of copies of
the preliminary, final and other prospectus in conformity with requirements of the Act and
the Rules and Regulations promulgated thereunder and such other documents as the Holders
shall reasonably request.

3

 

     (2) Indemnify and hold harmless each such Holder and each underwriter, within the
meaning of the Act, who may purchase from or sell for any such Holder, any Common Stock,
from and against any and all losses, claims, damages, and liabilities (including, but not
limited to, any and all expenses whatsoever reasonably incurred in investigation, preparing,
defending or settling any claim) arising from (i) any untrue or alleged untrue statement of
material fact contained in any such registration statement or any prospectus contained
therein or delivered thereunder, or from (ii) any omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading,
unless each untrue statement or omission or such alleged untrue statement or omission was
based upon information furnished or required to be furnished in writing to the Company by
such Holders expressly for use therein, or the alleged liability arises from a violation by
any Holders and/or any underwriter of the securities laws of any state relating to
registration of securities or brokers or dealers, which indemnification shall include each
person, if any, who controls any such Holders or underwriter within the meaning of the Act;
provided, however, that the Company shall not be so obligated to indemnify any such Holders
or controlling person unless such Holders shall at the same time indemnify the Company, its
directors, each officer signing any registration statement and each person, if any, who
controls the Company within the meaning of the Act, from and against any and all losses,
claims, damages and liabilities (including, but not limited to, any and all expenses
whatsoever reasonably incurred in investigation, preparing, defending or settling any claim)
arising from (a) any untrue or alleged untrue statement of a material fact contained in any
registration statement or prospectus contained therein or (b) any omission or alleged
omission to state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, but the indemnity of such Holders or controlling
person shall be limited to liability based upon information furnished in writing to the
Company by such Holders or controlling person expressly for use therein or relating the
registration of securities or brokers or dealers in any state.

     The Company will also cooperate with the Holder(s) of the or Warrants issued upon the exercise
of the Warrants in preparing and signing any registration statement or notification, in addition to
the registration rights hereinabove provided, required in order to sell or transfer the Common
Stock underlying this Warrant and will supply all information required therefor; but such
additional registration or notification shall be at the Holder(s) cost and expense. The Company’s
agreements with respect to registration of the securities will continue in effect regardless of the
exercise or surrender of this Warrant.

     In no event shall this Warrant (or the securities issuable upon full or partial exercise
hereof) be offered or sold except in conformity with the Act.

     This Warrant shall be governed by, and construed in accordance with, the laws of the State of
California, without regard to its conflicts of laws principles or rules.

     IN WITNESS WHEREOF, the Company has caused this Warrant to be signed as of this            day
of      , 2010.

	 	 	 	 	 
	 	THE FILM DEPARTMENT HOLDINGS, INC.

 	 
	 	By:  	 	 
	 	 	Mark Gill, Chief Executive Officer 	 
	 	 	 	 

4

 

	 	 	 	 	 

ANNEX I

THE FILM DEPARTMENT HOLDINGS, INC.

STATEMENT OF RIGHTS OF WARRANTS

     (a) In the event, prior to the expiration of the Warrant to which this Statement of Rights
is attached by exercise or by its terms, the Company shall issue any of its Common Stock as a share
dividend or shall subdivide the number of outstanding Common Stock into a greater number of shares,
then, in either of such events, the then applicable Exercise Price per share purchasable pursuant
to this Warrant in effect at the time of such action shall be reduced proportionately and the
number of shares of Common Stock at that time purchasable pursuant to this Warrant shall be
increased proportionately; and, conversely, in the event that the Company shall reduce the number
of outstanding shares of Common Stock by combining such shares into a smaller number of shares,
then, in such event, the then applicable Exercise Price per share purchasable pursuant to this
Warrant in effect at the time of such action shall be increased proportionately and the number of
shares of Common Stock at that time purchasable pursuant to this Warrant proportionately shall be
decreased. Any dividend paid or distributed upon the Common Stock in shares of any other class of
the Company or securities convertible into Common Stock shall be treated as a dividend paid in
Common Stock to the extent that the shares of Common Stock are issuable upon the conversion
thereof.

     (b) In the event, prior to the expiration of this Warrant by exercise or by its terms, the
Company shall be recapitalized by reclassifying its outstanding Common Stock (other than into
shares with a different par value, or by changing its outstanding Common Stock to shares without
par value), or in the event the Company or a successor corporation shall consolidate or merge with
or convey all or substantially all of its, or of any successor corporation’s, property and assets
to any other corporation or corporations (any such other corporation being included within the
meaning of the term “successor corporation” hereinbefore used in the context of any consolidation
or merger of any other corporation with, or the sale of all or substantially all of the property of
any such other corporation to, another corporation or corporations), or in the event of any other
material change in the capital structure of the Company or of any successor corporation by reason
of any reclassification, reorganization, recapitalization, consolidation, merger, conveyance or
otherwise, then, as a condition of any such reclassification, reorganization, recapitalization,
consolidation, merger or conveyance, a prompt, proportionate, equitable, lawful and adequate
provision shall be made whereby the Holder of this Warrant shall thereafter have the right to
purchase, upon the basis and the terms and conditions specified in this Warrant, in lieu of the
securities of the Company theretofore purchasable upon the exercise of this Warrant, such shares,
securities or assets as may be issued or payable with respect to or in exchange for the number of
securities of the Company theretofore purchasable upon the exercise of this Warrant had such
reclassification, reorganization, recapitalization, consolidation, merger or conveyance not taken
place; and in any such event, the rights of the Holder of this Warrant to any adjustment in the
number of Common Stock purchasable upon exercise of this Warrant, as provided herein, shall
continue and be preserved in respect of any shares, securities or assets which the Holder becomes
entitled to purchase. Notwithstanding anything herein to the contrary, the provisions of this
paragraph (b) shall not apply to a merger with a subsidiary provided the Company is the continuing
corporation and provided further such merger does not result in any reclassification, capital
reorganization or other change of the securities issuable under this Warrant. The foregoing
provisions of this paragraph (b) shall apply to successive reclassifications, capital
reorganizations and changes of securities and to successive consolidation, mergers, sales or
conveyances.

     (c) In the event the Company, at any time while this Warrant shall remain unexpired and
unexercised, shall sell all or substantially all of its property, or dissolves, liquidates, or
winds up its affairs, prompt, proportionate, equitable, lawful and adequate provision shall be made
as part of the terms of any such sale, dissolution, liquidation, or winding up such that the Holder
of this Warrant may thereafter receive, upon exercise hereof, in lieu of the securities of the
Company which it would have been entitled to receive, the same kind and amount of any shares,
securities or assets as may be issuable, distributable or payable upon any such sale, dissolution,
liquidation or winding up with respect to each Common Share of the Company; provided, however, that
in the event of any such sale, dissolution, liquidation or winding up, the right to exercise this
Warrant shall terminate on a date fixed by the Company, such date so fixed to be not earlier than
5:00 p.m., Eastern Time, on the 45th day next succeeding the date

5

 

on which notice of such termination of the right to exercise this Warrant has been given by mail to
the Holder of this Warrant at such Holder’s address as it appears on the books of the Company.

     (d) Upon any exercise of this Warrant by the Holder, the Company shall not be required to
deliver fractions of any securities; but prompt, proportionate, equitable, lawful and adequate
adjustment in the Exercise Price payable by the Holder shall be made in respect of any such
fraction of any securities on the basis of the Exercise Price then applicable upon the exercise of
this Warrant.

     (e) In the event, prior to the expiration of this Warrant by exercise or by its terms, the
Company shall determine to take a record of its securities holders for the purpose of determining
securities holders entitled to receive any share dividend, distribution or other right which will
cause any change or adjustment in the number, amount, price or nature of the Common Stock or other
shares, securities or assets deliverable upon the exercise of this Warrant pursuant to the
foregoing provisions, the Company shall specify the date as of which such record is to be taken;
the purpose for which such record is to be taken; and the number, amount, price and nature of the
shares of Common Stock or other securities or assets which will be deliverable upon exercise of
this Warrant after the action for which such record will be taken has been consummated.

     (f) The Company may deem and treat the registered Holder of this Warrant at any time as the
absolute owner hereof for all purposes, and the Company shall not be affected by any notice to the
contrary.

     (g) Whenever the Exercise Price shall be adjusted as required by the provisions of paragraph
(a) hereof, the Company shall forthwith file in the custody of its Secretary or Assistant Secretary
at its principal office, and with its stock transfer agent, if any, an officer’s certificate
showing the adjusted Exercise Price determined as herein provided and setting forth in reasonable
detail the facts requiring such adjustment. Each such officer’s certificate shall be made available
at all reasonable times for inspection by the Holder and the Company shall, forthwith after each
such adjustment, deliver a copy of such certificate to the Holder. Such certificate shall be
conclusive as to the correctness of such adjustment.

     (h) This Warrant shall not entitle the Holder hereof to any of the rights of shareholders or
to any dividend declared upon the Common Stock unless the Holder shall have exercised this Warrant
prior to the record date fixed by the Board of Directors of the Company for the determination of
holders of Common Stock entitled to such dividend or other right.

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EXHIBIT A

FORM TO BE USED TO EXERCISE WARRANT:

The Film Department Holdings, Inc.

8439 Sunset Blvd., 2nd Floor

West Hollywood, California 90069

Date:               , 20

     The Undersigned hereby elects irrevocably to exercise the attached Warrant dated
        , 2010 and to purchase            shares of The Film Department Holdings, Inc. called for
thereby, and hereby makes payment of $         (at the rate of $         per share) in
payment of the Exercise Price pursuant thereto or the surrender herewith of the Warrant to purchase         shares in consideration of the Cashless Exercise Price pursuant thereto, as the case may
be. Please issue the shares as to which this Warrant is exercised in accordance with the
instructions given below.

	 	 	 	 	 
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	

	 	 	 
	 	Signature	 
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	

	 	 	 
	 	Signature Guaranteed (Medallion)	 
	 	 	 
	 	 	 
	 	 	 
	 

INSTRUCTIONS FOR REGISTRATION OF COMMON STOCK

	 	 	 	 
	Name	 	 	 
	 	 	(Print in Block Letters)	 
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	

	Address	 	 	 
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	

	FEIN #	 	 	 

7

 

	 	 	 	 	 

EXHIBIT B

FORM TO BE USED TO ASSIGN WARRANT:

ASSIGNMENT

     (To be executed by the registered Holder to effect a transfer of the within Warrant:)

     FOR VALUE RECEIVED,              does hereby sell, assign and transfer unto
             the right to purchase            shares of The Film Department Holdings,
Inc. evidenced by that certain Warrant dated      , 2010 and does hereby irrevocably
constitute and appoint            attorney to transfer such right on the books of such
Company with full power of substitution in the premises.

Dated:             , 20    .

	 	 	 	 	 
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	

	 	 	 
	 	Signature	 
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	

	 	 	 
	 	Signature Guaranteed (Medallion)	 
	 	 	 
	 	 	 
	 	 	 
	 

     NOTICE: The signature to the form to exercise or form to assign must correspond with the name
as written upon the face of the Warrant in every particular without alteration or enlargement or
any change whatsoever, and must be medallion guaranteed by a bank, other than a savings bank, or by
a trust company or by a firm having membership on a registered national securities exchange.

8exv10w38

LOAN AND SECURITY AGREEMENT

     This Loan and Security Agreement (the “Loan and Security Agreement”), dated as of May
26, 2010, is entered into by and between The Film Department Holdings, Inc., a Delaware
corporation, as borrower (“Borrower”) and H & W Movie Partners, LLC a Delaware limited
liability company, or other entity owned, controlled or managed by same, as lender
(“Lender”).

RECITALS

     A. Borrower is currently undertaking efforts to recapitalize; and

     B. In order to facilitate said recapitalization efforts, Borrower has requested and Lender has
agreed to make available to Borrower a loan (the “Loan”) in the principal amount of Fifteen
Million Dollars ($15,000,000.00); and

     C. Lender agrees to make the Loan to Borrower upon the terms and conditions of this Loan and
Security Agreement; and

     NOW, THEREFORE, in consideration of the premises and the mutual agreements contained herein,
Borrower and Lender agrees as follows:

     1. Definitions. When used herein, the following initially-capitalized terms shall
have the following meanings:

     “Borrower” has the meaning set forth in the first paragraph of this Loan and
Security Agreement.

     “Business Day” means a day other than a Saturday, Sunday or other day on which
state banking corporations in Los Angeles, California are authorized or required by law to
close.

     “Closing Date” shall be the closing date of the initial public offering of
securities of Borrower.

     “Collateral” means all property and interests in property and proceeds thereof
now owned or hereafter acquired by Borrower or any of its subsidiaries.

     “Event of Default” has the meaning set forth in Section 13.

     “Excess Interest” has the meaning set forth in Section 16.

     “GAAP” means those generally accepted accounting principles and practices which
are recognized as such by the American Institute of Certified Public Accountants acting
through its Accounting Principles Board or by the Financial Accounting Standards Board or
through other appropriate boards or committees thereof and which are consistently applied
for all periods after the date hereof so as to properly reflect the financial condition, and
the results of operations and changes in the financial position, of

 

 

Borrower, except that any accounting principle or practice required to be changed by
the said Accounting Principles Board or Financial Accounting Standards Board (or other
appropriate board or committee of the said Boards) in order to continue as a generally
accepted accounting principle or practice may be so changed

     “Interest Rate” has the meaning set forth in Section 4.

     “Lender” has the meaning set forth in the first paragraph of this Loan and
Security Agreement.

     “Loan” has the meaning set forth in Recital B.

     “Loan and Security Agreement” means this Loan and Security Agreement, as it may
be amended, supplemented or modified from time to time, together with all exhibits and
schedules attached to this Loan and Security Agreement from time to time.

     “Maturity Date” means the date that is two years following the Closing Date, or
the next succeeding Business Day if such date is not a Business Day.

     “Maximum Rate” has the meaning set forth in Section 16.

     “Note” has the meaning set forth in Section 3.

     “Obligations” means all amounts to be paid or satisfied, and all covenants and
obligations to be performed or fulfilled by Borrower pursuant to (i) this Loan and Security
Agreement, and (ii) the Note.

     “Second Lien Notes” means the Secured Second Lien Notes created pursuant to
that certain Securities Purchase Agreement (“Securities Purchase Agreement”) dated
as of June 27, 2007, by and among The Film Department LLC, The Film Department Holdings LLC,
The Purchasers Named Therein, Eton Park CLO Management 1 (“EP 1”), Eton Park CLO Management
2 (“EP 2”), Eton Park Master Fund, Ltd. (“EPMF”), and Eton Park Fund, L.P. (“EPF,” and,
collectively with EP 1, EP 2 and EPMF, referred to herein as “Eton Park”), as
successors-in-interest.

     “Taxes” has the meaning set forth in Section 15.

     2. Loan. Subject to the terms and conditions of this Loan and Security Agreement, and
the occurrence of a firm commitment underwritten public offering of shares for Borrower’s account
in which the aggregate price paid for the shares by the public shall be at least $30,000,000,
Lender agrees to make the Loan on the Closing Date to Borrower.

     3. Note. Borrower shall, as a condition to making the Loan, execute and deliver to
Lender a Promissory Note in substantially the same form attached hereto as Exhibit A (the
“Note”).

     4. Interest Rate. The principal balance outstanding of the Loan from time to time
shall bear interest in arrears at a rate equal to ten percent (10%) (the “Interest Rate”).
The Interest

2

 

Rate shall be calculated daily on the basis of actual days elapsed over a 360-day year,
applied to the principal balance from time to time outstanding hereunder. In the event of the
occurrence of an Event of Default hereunder or under the Note, the Interest Rate shall increase by
an amount equal to four percent (4%) (i.e., the rate of interest on all outstanding amounts and
interest shall increase to the total amount equal to fourteen percent (14%).

     5. Warrants for Borrower’s Common Stock. In consideration of, and as an inducement to,
Lender’s agreement to lend to Borrower as contemplated hereunder, Borrower agrees to deliver to
Lender, on the Closing Date, warrants (the “Warrants”) to acquire an aggregate of 150,000
shares of common stock of Borrower at the price issued pursuant to the IPO (currently expected to
be six dollars ($6.00) per share). The form of the Warrants shall be negotiated in good faith
subject to customary parameters, shall be dated the date of issue and shall be exercisable in the
manner provided therein for the number of shares as provided therein, provided Lender and Borrower
agree that the Warrants shall be subject the terms of a customary “lock-up agreement” with a
lock-up period of one year from the date of issuance.

     6. Payments of Interest and Principal. Commencing on the date that is the first
Business Day of the quarter following the Closing Date and on the first Business Day of each
quarter thereafter until the Maturity Date, Borrower shall pay all accrued interest on the
outstanding principal balance. The principal balance outstanding hereunder, together with all
accrued interest and other amounts payable hereunder, if not sooner paid as provided herein, shall
be due and payable in full on the Maturity Date.

     7. Application and Place of Payments. Payments received by Lender with respect to the
indebtedness evidenced hereby shall first be applied to accrued and unpaid interest at the Interest
Rate, next to the principal balance then outstanding hereunder, and the remainder to any other
costs or added charges provided for herein. All payments by Borrower shall be payable in legal
currency of the United States of America, in immediately available funds. Payments hereunder shall
be made to such account or other place and in such manner as Lender may specify to Borrower without
set-off, deduction, or counterclaim. Unless otherwise stated herein, whenever any payment under
this Loan and Security Agreement shall fall due on a date which is not a Business Day, such payment
may be made on the next succeeding Business Day.

     8. Use of Proceeds. The proceeds from the issuance and sale of the Note shall be used
by the Borrower to refinance a portion of the Second Lien Notes. As Borrower intends to utilize
some of the proceeds of the IPO to repay debt created by the Second Lien Notes, Borrower warrants
to Lender that any and all liens created by the Second Lien Notes or the Securities Purchase
Agreement shall be terminated in full concurrently with or immediately following, the Closing Date.

     9. Prepayments. Payments of principal hereof may be made at any time, or from time to
time, in whole or in part, at the redemption price (expressed as percentages of the principal
amount of the Note being prepaid) set forth below, plus interest accrued thereon, if any, redeemed
at the price set forth below:

3

 

	 	 	 	 	 
	Prepayment Date	 	Redemption Price
	Within 1 year following the Closing Date
	 	 	100.25	%
	1 year after the Closing Date
	 	 	100	%

     10. Grant of Security Interest.

          A. Collateral. Subject to the provisions herein, as security for the payment and
performance of the Obligations, Borrower hereby assigns, transfers and grants to Lender, and there
is hereby created in favor of Lender, a security interest under the Uniform Commercial Code in
effect in the State of California in and to the Collateral, whether now owned or hereafter
acquired, and in all proceeds thereof (and proceeds of proceeds) in whatever form. This Loan and
Security Agreement shall constitute a security agreement pursuant to the Uniform Commercial Code
with respect to the Collateral and proceeds thereof, with Borrower the “Debtor” and Lender a
“Secured Party” as such terms are used therein. Borrower agrees that Lender may, in such manner,
on such terms and at such times as may be elected by Lender, and without demand or notice to, or
the consent or signature of, Borrower, file and/or record such UCC financing statements, and/or
amendments to or continuations of any financing statements to evidence, perfect and/or continue the
perfection of, any security interests created or to be created pursuant to this Loan and Security
Agreement in any or all of the Collateral.

          B. Subordination. The security interest granted to Lender pursuant to this Loan and
Security Agreement shall be junior and subordinate to the following: (i) the loan payable to Union
Bank, N.A. by Earthbound Films, LLC in connection with the motion picture entitled “Earthbound,”
(ii) the ultimates loan Borrower (or an affiliate thereof) intends to consummate in connection with
the receivables due and owing to LAC Films, LLC, a wholly owned subsidiary of Borrower, in
connection with the motion picture entitled “Law Abiding Citizen,” (iii) the “print and
advertising” debt facility Borrower intends to consummate in connection with Borrower’s anticipated
efforts to distribute its motion pictures directly in the United States, and (iv) customary future
single picture loans made from time to time to provide production financing for Borrower’s motion
picture production (along with customary liens in favor of talent guilds and completion bond
companies), and (v) such other permitted liens as are mutually agreed by Borrower and Lender.

     11. Further Security Agreements. Borrower agrees to take such actions and, within ten
(10) Business Days after Lender’s written request, to execute, deliver and file and/or record such
documents, agreements and financing statements, as may be reasonably necessary to evidence the
security interest set forth in this Loan and Security Agreement, to carry out the intent and
purpose of this Loan and Security Agreement and/or reflect any change in Borrower’s state of
organization, name, organizational number or place of business.

     12. Affirmative Covenants. Until all obligations and liabilities of Borrower under
this Loan and Security Agreement and the Note are fully paid and satisfied, Borrower agrees and
covenants that it will:

4

 

          (a) Furnish Lender with such financial information and statements with respect to Borrower as
Lender may request from time to time;

          (b) Immediately notify Lender in writing of any change in its state of incorporation or
organization or in its place of business, any change in Borrower’s name or organizational number or
the adoption or change of any trade name or fictitious business name used by Borrower; and

          (c) Execute and deliver, or cause to be executed and delivered, any and all other agreements,
instruments or documents which Lender may reasonably request in order to give effect to the
transactions contemplated under this Loan and Security Agreement and the Note.

     13. Events of Default; Acceleration. The occurrence and continuance of any one or
more of the following events shall constitute an “Event of Default” hereunder and upon such
Event of Default, the entire principal balance outstanding hereunder, together with all accrued
interest and other amounts payable hereunder, at the election of all of the Lender, shall become
immediately due and payable, without any notice to Borrower:

          (a) Nonpayment of principal, interest or other amounts when the same shall become due and
payable hereunder;

          (b) Except for the nonpayment of principal, interest or other amounts due and payable
hereunder, the failure of Borrower to comply with any provision of this Loan and Security Agreement
or the Note, as applicable, and such failure continues for a period of fifteen (15) days after
written notice thereof from Lender to Borrower;

          (c) The dissolution, winding-up or termination of the existence of Borrower;

          (d) If Borrower shall become insolvent or admit in writing its inability to pay its debts as
they mature; or make any assignment for the benefit of creditors; or apply for or consent to the
appointment of a receiver or trustee for it or for a substantial part of its property or business;
or such receiver or trustee otherwise shall be appointed; or

          (e) If bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings
for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or
against Borrower.

     14. Remedies. From and after the occurrence and continuance of any Event of Default,
Lender shall have the rights and remedies of a secured party under the Uniform Commercial Code as
in effect in the State of California and under any other applicable law, and declare, at Lender’s
option, the entire principal balance hereunder together with all accrued interest, immediately due
and payable without further notice or demand and Lender may exercise the remedies available to
Lender hereunder, at law or in equity.

     15. Taxes. All payments to be made by Borrower hereunder shall be made without
deduction for or on account of (a) any present or future taxes, levies, imposts, duties,
deductions, stamp boxes, withholdings or similar items (“Taxes”) or (b) any interest,
additions or penalties

5

 

imposed with respect to Taxes. If Borrower shall be required by law to deduct any Taxes from
or in respect of any sum payable hereunder to Lender, (a) the sum payable shall be increased as
necessary so that after making all required deductions Lender shall receive an amount equal to the
sum they would have received had no such deductions been made, (b) Borrower shall make such
deductions, (c) Borrower shall pay the full amount deducted to the relevant authority in accordance
with applicable law, and (d) Borrower shall furnish to Lender the original copy of a receipt
evidencing payment thereof within thirty (30) days after such payment is made.

     16. Interest Rate Limitation. Notwithstanding any provision to the contrary contained
in the Note or this Loan and Security Agreement, Borrower shall not be required to pay, and Lender
shall not be permitted to collect, any amount of interest in excess of the maximum amount of
interest permitted by law (“Excess Interest”). If any Excess Interest is provided for,
whether in the Interest Rate, through any contingency or event, or otherwise, or is determined by a
court of competent jurisdiction to have been provided for in the Note or in this Loan and Security
Agreement, then in such event (a) the provisions of this section shall govern and control; (b)
Borrower shall not be obligated to pay any Excess Interest; (c) any Excess Interest that Lender may
have received hereunder shall be, at Lender’s option, to the fullest extent provided by applicable
law: (i) applied as a credit against either or both of the outstanding principal balance of the
Loan or accrued and unpaid interest thereunder (not to exceed the maximum amount permitted by law),
(ii) refunded to the payor thereof, or (iii) any combination of the foregoing; (d) the Interest
Rate provided for herein shall be automatically reduced to the maximum lawful rate allowed from
time to time under applicable law (the “Maximum Rate”), and the Note and this Loan and
Security Agreement shall be deemed to have been and shall be, reformed and modified to reflect such
reduction; and (e) Borrower shall not have any action against Lender for any damages arising out of
the payment or collection of any Excess Interest. Notwithstanding the foregoing, if for any period
of time interest on any obligation is calculated at the Maximum Rate rather than the applicable
rate under the Note and this Loan and Security Agreement, and thereafter such applicable rate
becomes less than the Maximum Rate, the rate of interest payable on such obligations shall, to the
extent permitted by law, remain at the Maximum Rate until Lender shall have received or accrued the
amount of interest which Lender would have received or accrued during such period on such
obligations had the rate of interest not been limited to the Maximum Rate during such period.
Borrower agrees to pay an effective contracted for rate of interest equal to the rate of interest
resulting from all interest payable as provided in this Loan and Security Agreement plus any
additional rate of interest resulting from any other fees, charges or any other sums or things of
value (other than interest payable as provided in this Loan and Security Agreement) paid or to be
paid by or on behalf of Borrower whether pursuant to this Loan and Security Agreement or the Note,
which amounts shall be deemed to be interest for the purposes of any applicable law that may
limited the maximum amount of interest to be charged with respect to this lending transaction.

     17. Costs of Collection. Borrower agrees to pay all costs of collection, including,
without limitation, reasonable attorneys’ fees, whether or not suit is filed, and all costs of suit
and preparation for suit (whether at trial or appellate level), in the event any payment of
principal, interest or other amount is not paid when due, or in case it becomes necessary to
protect the Collateral which is security for the indebtedness evidenced hereby, or to exercise any
other right or remedy hereunder, or if at any time any Lender should incur any attorneys’ fees in
any proceeding under any federal bankruptcy law (or any similar state or federal law) in connection

6

 

with the indebtedness evidenced hereby. In the event of any court proceeding, attorneys’ fees
shall be set by the court and not by the jury and shall be included in any judgment obtained by any
Lender.

     18. Governing Law; Jurisdiction, Venue; Waiver of Jury Trial. This Loan and Security
Agreement and the Note shall be governed by and construed and enforced in accordance with the
substantive laws (other than conflict laws) of the State of California except to the extent Lender
has greater rights or remedies under Federal law, in which case such choice of California law shall
not be deemed to deprive Lender of any such rights and remedies as may be available under Federal
law. Each party consents to the personal jurisdiction and venue of the state courts located in Los
Angeles County, California in connection with any controversy related to this Loan and Security
Agreement, waives any argument that venue in any such forum is not convenient and agrees that any
litigation initiated by either party hereto in connection with this Loan and Security Agreement may
be venued in the Superior Court of Los Angeles County, California. EACH PARTY HERETO HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHTS IT MAY HAVE TO REQUIRE A TRIAL BY JURY
IN ANY COURT ACTION PERTAINING TO THE OBLIGATIONS OR THE LOAN AND SECURITY AGREEMENT, AND AGREES
THAT ANY SUCH ACTIONS OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

     19. Time of Essence. Time is of the essence of this Loan and Security Agreement and
each and every provision hereof.

     20. Amendments. No amendment, modification, change, waiver, release or discharge
hereof and hereunder shall be effective unless evidenced by an instrument in writing and signed by
the party against whom enforcement is sought.

     21. Severability. If any provision hereof is invalid or unenforceable, the other
provisions hereof shall remain in full force and effect.

     22. No Assignments or Transfers. No party hereto shall transfer or assign any part of
its interests in and to or obligations under this Loan and Security Agreement or the Note without
the other parties’ prior written consent.

     23. Notice. All notices, requests, demands and other communications required or
permitted by this Agreement shall be delivered by facsimile, or delivered by personal delivery or
deposited with the United States Postal Service, return receipt requested, or delivered by a
nationally recognized private courier service, with proper postage or other charges prepaid,
properly addressed as follows:

	 	 	 	 	 

	     If to Lender:	 	H & W Movie Partners, LLC
	 	 	2701 E. Camelback Rd., Suite 180
	 	 	Phoenix, Arizona 85016
	 	 	Attention: Michael J. Witherill
	 

	 	Telephone:
	 	(602) 424-9555
	 

	 	Facsimile:
	 	(602) 424-1803

7

 

	 	 	 	 	 

	     If to Borrower:	 	The Film Department Holdings, Inc.
	 	 	8439 Sunset Blvd., 2nd Floor
	 	 	West Hollywood, CA
	 	 	Attention: Mark Gill
& Neil Sacker
	 	 	Telephone:	 	(323) 785-3700
	 	 	Facsimile:	 	(323) 785-3799

     All notices shall be deemed delivered on the date and time of delivery if delivered in person,
or via facsimile transmission, or if delivered by private courier, on the date next succeeding the
delivery to such courier, or if deposited with the United States Postal Service, on the second
business day after the date it is so deposited. Any party may designate a different person or
change the place to which notice shall be delivered, by delivering the notice to that effect as
provided herein, which notice shall be effective after such notice is actually received by the
other party.

     24. Section Headings. The section headings set forth in this Loan and Security
Agreement are for convenience only and shall not have substantive meaning hereunder or be deemed
part of this Loan and Security Agreement.

     25. Construction. This Loan and Security Agreement shall be construed as a whole, in
accordance with its fair meaning, and without regard to or taking into account any presumption or
other rule of law requiring construction against the party preparing this Loan and Security
Agreement.

     26. Counterparts. This Loan and Security Agreement may be separately executed in any
number of counterparts, each of which shall be an original, but all of which, taken together, shall
be deemed to constitute one and the same agreement.

[REMAINDER OF THE PAGE INTENTIONALLY LEFT BLANK]

8

 

     IN WITNESS WHEREOF, Borrower and Lender have executed this Loan and Security Agreement as of
the date first set forth above.

	 	 	 	 

	 

	 	Borrower:
	 
	 	 
	 

	 	THE FILM DEPARTMENT HOLDINGS, INC.
	 
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	 

	 	By: 	/s/ Mark Gill
	 

	 	 	 
	 

	 	Name: 	Mark Gill
	 

	 	 	 
	 

	 	Title: 	Chief Executive Officer
	 

	 	 	 
	 
	 	 
	 
	 	 
	 

	 	Address of Borrower:
	 

	 	8439 Sunset Blvd., 2nd Floor

West Hollywood, CA 90069
	 
	 	 
	 
	 	 
	 
	 	 
	 

	 	Lender:
	 
	 	 
	 

	 	H & W MOVIE PARTNERS, LLC
	 
	 	 
	 

	 	By:	 /s/ Michael Witherill
	 

	 	 	 
	 

	 	Name: 	Michael Witherill
	 

	 	 	 
	 

	 	Title: 	Manager
	 

	 	 	 
	 
	 	 
	 

	 	Address of Lender:
	 

	 	2701 E. Camelback Rd., Suite 180
	 

	 	Phoenix, Arizona 85016

[Signature Page to Loan and Security Agreement]

 

 

EXHIBIT
A

[Form of Promissory Note]

SECURED PROMISSORY NOTE

	 	 	 

	$15,000,000

	 	Los Angeles, California
	 

	 	As of ___, 2010

     FOR VALUE RECEIVED, The Film Department Holdings, Inc. (“Maker”), hereby promises to
pay to the order of H & W Movie Partners, LLC, a Delaware limited liability company, or other
entity owned, controlled or managed by same (“Holder”), the principal sum of Fifteen
Million Dollars ($15,000,000), together with interest from the date hereof on the unpaid principal
balance hereof at a rate of ten percent (10%) per annum.

     This Secured Promissory Note (this “Note”) and the Obligations are secured by that certain
Loan and Security Agreement (the “Loan and Security Agreement”) of even date herewith given by
Maker in favor of Holder. The principal balance, interest thereon and any other amounts payable
hereunder (the “Obligations”) shall be due and payable on the date that is two years
following the Closing Date (as such terms is defined in the Loan and Security Agreement) (the
“Maturity Date”).

     In the event: (i) Maker fails to pay in full all or any portion of the principal balance
hereunder and all or any portion of any accrued but unpaid interest when due; or (ii) Maker fails
timely to perform and satisfy in full any of its other Obligations hereunder or under the Security
Agreement, then the entire principal balance hereof together with all accrued interest, at the sole
option of Holder, shall become immediately due and payable without further notice or demand and
Holder may exercise the remedies available to Holder hereunder, at law or in equity.

     Maker may prepay the unpaid principal balance on this Note at any time, either in whole or in
part, as provided in the Loan and Security Agreement. No prepayment permitted hereunder shall
affect the obligation of Maker to pay as provided hereunder.

     All payments under this Note shall be made without deduction or offset of any kind.

     Maker hereby waives presentment and demand for payment, notice of dishonor, notice of
nonpayment, protest of any dishonor, and notice of protest and all other notices and demands in
connection with the delivery, acceptance, performance, default or enforcement of this Note. Maker
and all endorsers or other parties to this Note hereby jointly and severally waive and renounce for
itself, its heirs, successors and assigns, all rights to the benefit of any statute of limitations
and any moratorium, reinstatement, marshaling, forbearance, valuation, stay, extension, redemption,
appraisement, exemption and homestead now provided, or which may hereafter be provided by the
Constitution and laws of the United States of America and of

A-1

 

any state thereof, both as to itself and in and to all of its property, real and personal,
against the enforcement and collection of the obligations evidenced by this Note, any renewal
thereof, or any indebtedness represented hereby.

     The remedies of Holder under or by virtue of this Note shall be cumulative and non-exclusive,
and may be exercised concurrently or consecutively at the option of Holder. No single or partial
exercise of any power granted to Holder under this Note shall preclude any other or further
exercise thereof or the exercise of any other power. No delay or omission on the part of Holder in
exercising any right under this Note shall operate as a waiver of such right or of any other right.

     Notwithstanding anything to the contrary in this Note, this Note is subject to the express
condition that at no time shall Maker be obligated or required to pay interest on the principal
balance hereof at a rate in excess of the maximum rate which Maker is permitted by law to agree to
pay. If, by the terms of this Note, Maker is at any time required or obligated to pay interest on
the principal balance hereof at a rate in excess of such maximum rate, then (i) the rate of
interest under this Note shall be deemed to be immediately reduced to such maximum rate, (ii)
interest payable hereunder shall be computed at such maximum rate, and (iii) the portion of all
prior interest payments in excess of such maximum rate shall be applied to, and shall be deemed to
have been payments in reduction of, the principal balance hereof.

     This Note shall be governed by and construed in accordance with the internal laws of the State
of California, without reference to its principles of conflicts of laws. In the event suit is
brought to enforce or interpret any part of this Note or the rights or obligations of Holder or
Maker hereunder, the prevailing party shall be entitled to recover as an element of such party’s
costs of suit, and not as damages, reasonable attorneys’ fees to be fixed by the court or, if
applicable, arbitrator. Holder shall be entitled to recover collection fees, should an action be
required to collect on this Note. In the event any provision, clause or application of this Note
is invalidated or unenforceable for any reason whatsoever, this Note shall remain binding and in
full force and effect to the maximum extent permitted by applicable law.

     The terms of this Note shall apply to, inure to the benefit of, and bind the parties hereto,
their personal and legal representatives, successors and assigns, provided, however, that Maker may
not assign its obligations hereunder to any third party without Holder’s consent in its sole and
absolute discretion. In the event of any conflict between the terms of this Note and the Loan and
Security Agreement, the terms of the Loan and Security Agreement shall prevail.

     IN WITNESS WHEREOF, Maker has duly executed this Note as of the date and place first
above-written.

	 	 	 

	 

	 	“Maker”
	 
	 	 
	 

	 	THE FILM DEPARTMENT HOLDINGS, INC.
	 
	 	 
	 
	 	 
	 

	 	 
	 

	 	By:
	 

	 	Its:

A-2

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