Document:

EX-10.2

Exhibit 10.2

TAX RECEIVABLE AGREEMENT

          This TAX RECEIVABLE AGREEMENT (this “Agreement”) is dated as of June 23, 2008, by and
among RHI Entertainment, Inc., a Delaware corporation (the “Corporation”), RHI
Entertainment Holdings II, LLC, a Delaware limited liability company (“Holdings II”) and
KRH Investments LLC, a Delaware limited liability company (“KRH”).

RECITALS:

          WHEREAS, pursuant to that certain Membership Unit Subscription Agreement, dated as of the date
hereof, by and among the Corporation, KRH and Holdings II, Holdings II will issue to the
Corporation membership interests in Holdings II (“Interests”) in exchange for a cash
purchase price of $176,242,500 (the “Original Issue”) and Holdings II will issue Interests
to KRH in exchange for the contribution of its interests in RHI Entertainment LLC, a Delaware
limited liability company.

          WHEREAS, pursuant to that certain Limited Liability Company Agreement of Holdings II, dated as
of the date hereof (the “LLC Agreement”), by and between the Corporation and KRH, KRH has
the right under certain circumstances to exchange Interests for (i) cash, (ii) shares of common
stock of the Corporation, par value $0.01 per share (the “Shares”) or (iii) a combination
of cash and Shares (an “Exchange”);

          WHEREAS, Holdings II and any direct or indirect subsidiary (owned through a chain of
pass-through entities) of Holdings II that is treated as a partnership for U.S. federal income tax
purposes (together with Holdings II and any direct or indirect subsidiary (owned through a chain of
pass-through entities) of Holdings II that is treated as a disregarded entity for U.S. federal
income tax purposes, the “Holdings II Group”) will have in effect an election under Section
754 of the Code (as defined herein) for the Taxable Year (as defined herein) in which any Exchange
occurs, which election will result in an adjustment to the Corporation’s share of the tax basis of
the assets owned by the Holdings II Group as of the date of the Exchange, with a consequent result
on the taxable income subsequently derived therefrom; and

          WHEREAS, the parties to this Agreement desire to provide for certain payments and make certain
arrangements with respect to any tax benefits to be derived by the Corporation as the result of
Exchanges and the receipt of payments under this Agreement, as contemplated by the LLC Agreement.

          NOW, THEREFORE, in consideration of the foregoing and the respective covenants and agreements
set forth herein, and intending to be legally bound hereby, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

          As used in this Agreement, the terms set forth in this Article I shall have the following
meanings (such meanings to be equally applicable to both the singular and plural forms of the terms
defined). Capitalized terms used herein and not otherwise defined shall have the respective
meanings ascribed to such terms in the LLC Agreement.

 

 

          “Advisory Firm” means an accounting or law firm that is nationally recognized as being
expert in Covered Tax matters and not an Affiliate of the Corporation, selected by the Corporation.

          “Advisory Firm Letter” means a letter from the Advisory Firm stating that the relevant
schedule, notice or other information to be provided by the Corporation to KRH and all supporting
schedules and work papers were prepared in a manner consistent with the terms of this Agreement
and, to the extent not expressly provided in this Agreement, on a reasonable basis in light of the
facts and law in existence on the date such schedule, notice or other information is delivered to
KRH.

          “Affiliate” means, with respect to a specified Person, any other Person which,
directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under
common control with such specified Person. For purposes of this definition, “control” of any
Person means possession, directly or indirectly, of the power to direct or cause the direction of
the management and policies of such Person, whether through the ownership of voting capital stock,
by contract or otherwise.

          “Agreement” is defined in the preamble.

          “Amended Tax Benefit Schedule” is defined in Section 2.3(b) of this Agreement.

          “Assumed Tax Liability” means the actual liability for Covered Taxes of the
Corporation.

          “Bankruptcy Code” means Title 11 of the United States Code (11 U.S.C. § 101 et seq.),
as amended from time to time.

          “Basis Adjustment” means the increase or decrease to the tax basis of, or the
Corporation’s share of the tax basis of, the Holdings II Group’s assets under Sections 732, 734(b),
743(b), 754 and/or 1012 of the Code and the comparable sections of U.S. state and local income and
franchise tax law as a result of any (i) Exchange and (ii) payments under this Agreement.

          “Beneficial Owner” of a security means a Person who directly or indirectly, through
any contract, arrangement, understanding, relationship or otherwise has or shares: (i) voting
power, which includes the power to vote, or to direct the voting of, such security and/or (ii)
investment power, which includes the power to dispose, or to direct the disposition of, such
security. The term “Beneficially Own” shall have a correlative meaning.

          “Business Day” means any calendar day that is not a Saturday, Sunday or other calendar
day on which banks are required or authorized to be closed in the City of New York.

          “Change of Control” means the occurrence of any of the following events (whether or
not approved by the board of directors of the Corporation):

	 	i.	 	any Person or Group is or becomes the Beneficial
Owner (other than a Permitted Holder), directly or indirectly, of the
Corporation’s voting stock representing 50% or more of the total voting
power of all outstanding voting stock of the Corporation;
	 
	 	ii.	 	the Corporation consolidates with, or merges with
or into, another entity or Person, or the Corporation sells, assigns,
conveys, transfers, leases or

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	 	 	 	otherwise disposes of all or substantially all of its assets to any Person
or entity, other than any such transaction where immediately after such
transaction the shareholders of the Corporation immediately prior to such
transaction, Beneficially Own or owns (as so determined), directly or
indirectly, voting stock representing a majority of the total voting power
of the outstanding voting stock of the surviving entity or transferee
Person;
	 
	 	iii.	 	during any consecutive one-year period, the
Continuing Directors cease for any reason to constitute a majority of the
board of directors of the Corporation; or
	 
	 	iv.	 	the adoption of a plan of liquidation or
dissolution of the Corporation.

          “Code” means the Internal Revenue Code of 1986, as amended (or any successor U.S.
federal income tax statute and the corresponding provisions thereof).

          “Continuing Directors” means, as of any date of determination, any member of the board
of directors of the Corporation who was (1) a member of such board of directors at the time of the
Original Issue, (2) nominated for election or elected to such board of directors with, or whose
election to such board of directors was approved by the affirmative vote of, a majority of
Continuing Directors who were members of such board of directors at the time of such nomination or
election or (3) nominated by KRH pursuant to the Director Designation Agreement.

          “Corporation” is defined in the preamble.

          “Covered Tax” means any tax imposed under Subtitle A of the Code or any other
provision of U.S. federal income tax law (including, without limitation, the taxes imposed by
Sections 11, 55, 59A, and 1201(a) of the Code) and U.S. state and local income and franchise taxes.

          “Covered Taxable Year” means any Taxable Year of the Corporation ending before or
including an Early Termination Date or a Unilateral Termination Date.

          “Covered Taxes” means every Covered Tax.

          “Designated Director” means any Person designated for nomination to the board of
directors of the Corporation by KRH pursuant to the Director Designation Agreement.

          “Determination” shall have the meaning ascribed to such term in Section 1313(a) of the
Code or similar provision of U.S. state or local income or franchise tax law, as applicable.

          “Director Designation Agreement” means the Director Designation Agreement, dated as of
June 23, 2008, by and among the Corporation, Holdings II and KRH, as the same may be amended,
supplemented or otherwise modified from time to time.

          “Early Termination Date” is the last day of the Taxable Year in which an Early
Termination Notice is given.

          “Early Termination Notice” is defined in Section 4.2 of this Agreement.

          “Early Termination Payment” means, as of the date of an Early Termination Notice, a
payment equal to the present value, discounted at the Termination Rate, of all Tax

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Benefit Payments that would be required to be paid by the Corporation beginning from the Early
Termination Date assuming the Valuation Assumptions are applied.

          “Exchange” is defined in the recitals.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          “Exchange Assets” means the assets owned by the Holdings II Group as of an applicable
Exchange Date (and any asset whose tax basis is determined, in whole or in part, by reference to
the adjusted basis of any such asset).

          “Exchange Basis Schedule” is defined in Section 2.2(a) of this Agreement.

          “Exchange Date” means the date on which an Exchange is effected.

          “Expert” is defined in Section 7.2(a) of this Agreement.

          “Governmental Entity” means any U.S. federal, state or local government or any court
of competent jurisdiction, administrative agency or commission or other domestic governmental
authority or instrumentality.

          “Group” has the meaning set forth in Section 13(d)(3) and Rule 13d-5 of the Exchange
Act.

          “Holdings II” is defined in the preamble.

          “Holdings II Group” is defined in the recitals.

          “Hypothetical Tax Basis” means, with respect to any asset at any time, the tax basis
that such asset would have at such time if no Basis Adjustment had been made as a result of any
Exchanges and payments under this Agreement.

          “Hypothetical Tax Liability” means, with respect to any Covered Taxable Year, the
liability for Covered Taxes of the Corporation that hypothetically would arise using the same
methods, elections, conventions and similar practices used on the actual Tax Returns of the
Corporation, but using the Hypothetical Tax Basis instead of the actual tax basis of each relevant
asset and excluding any deduction attributable to the Imputed Interest.

          “Imputed Interest” means the portion of a payment treated as interest under Section
1272, 1274 or 483 or other provision of the Code and the similar section of the applicable U.S.
state or local income or franchise tax law with respect to the Corporation’s payment obligations
under this Agreement.

          “Interests” is defined in the recitals.

          “IRS” means the U.S. Internal Revenue Service.

          “Kelso” means Kelso & Company L.P., Kelso Investment Associates VII, L.P., KEP VI,
LLC, any investment fund managed by Kelso & Company L.P. or any affiliate of Kelso & Company L.P.
or any of their respective subsidiaries or any successors thereto.

          “KRH” is defined in the preamble.

          “LIBOR” means, for each month (or portion thereof) during any period, an interest rate
per annum equal to the rate per annum reported on the date two days prior to the first day of such
month on the Telerate Page 3750 (or if such screen shall cease to be publicly available, as
reported on Reuters Screen page “LIBO” or by any other publicly available source

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of such market rate) for London interbank offered rates for U.S. dollar deposits due on the last
day of such month (or portion thereof).

          “LLC Agreement” is defined in the recitals.

          “Lump Sum Election Notice” is defined in Section 3.3(a).

          “Lump Sum Present Value” is defined in Section 3.3(a).

          “Market Value” means with respect to Shares, the closing price of the Shares on the
applicable Exchange Date on the national securities exchange or interdealer quotation system on
which such Shares are then traded or listed, as reported by the Wall Street Journal; provided that
if the closing price is not reported by the Wall Street Journal for the applicable Exchange Date,
then the Market Value shall mean the closing price of the Shares on the Business Day immediately
preceding such Exchange Date on the national securities exchange or interdealer quotation system on
which such Shares are then traded or listed, as reported by the Wall Street Journal; provided
further, that if the Shares are not then listed on a national securities exchange or interdealer
quotation system, “Market Value” shall mean the fair market value of the Shares, as determined by
KRH in good faith. “Market Value” with respect to assets other than Shares shall mean the fair
market value of such assets as determined by KRH in good faith.

          “Material Breach” means a breach by the Corporation of any of its material obligations
under this Agreement (including as a result of failure to make any payment when due, failure to
honor any other material obligation required hereunder or by operation of law as a result of the
rejection of this Agreement in a case commenced under the Bankruptcy Code). For these purposes,
the parties agree that the failure to make any payment due pursuant to this Agreement within three
months of the date such payment is due shall be deemed a Material Breach, and that it will not be
considered a Material Breach to make a payment due pursuant to this Agreement within three months
of the date such payment is due.

          “Membership Units Subscription Agreement” is defined in the recitals.

          “Original Issue” is defined in the recitals.

          “Original Issue Date” means the date on which the Original Issue is effected.

          “Permitted Holder” means KRH, Kelso or any person controlled by KRH or Kelso.

          “Person” means and includes any individual, firm, corporation, partnership (including,
without limitation, any limited, general or limited liability partnership), company, limited
liability company, trust, joint venture, association, joint stock company, unincorporated
organization or similar entity or Governmental Entity.

          “Proceeding” means a suit, action or proceeding relating to this Agreement.

          “Realized Tax Benefit” means, for a Covered Taxable Year, the excess, if any, of the
Hypothetical Tax Liability over the Assumed Tax Liability for such Covered Taxable Year, less the
fees, charges and expenses of the Advisory Firm and the Expert related to this Agreement paid by
the Corporation (excluding, for the avoidance of doubt, costs and expenses of KRH for which the
Corporation reimburses KRH pursuant to the second sentence of Section 7.2(b) and costs and expenses
of the Corporation borne by the Corporation pursuant to the second sentence of Section 7.2(b)) in
the relevant Covered Taxable Year. If all or a portion of

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the Assumed Tax Liability for the Covered Taxable Year arises as a result of an adjustment pursuant
to an audit by a Taxing Authority of any Covered Taxable Year, such adjustment to the liability
shall not be included in determining the Realized Tax Benefit unless and until there has been a
Determination.

          “Realized Tax Detriment” means, for a Covered Taxable Year, the excess, if any, of the
Assumed Tax Liability over the Hypothetical Tax Liability for such Covered Taxable Year, plus the
fees, charges and expenses of the Advisory Firm and the Expert related to this Agreement paid by
the Corporation (excluding, for the avoidance of doubt, costs and expenses of KRH for which the
Corporation reimburses KRH pursuant to the second sentence of Section 7.2(b) and costs and expenses
of the Corporation borne by the Corporation pursuant to the second sentence of Section 7.2(b)) in
the relevant Covered Taxable Year. If all or a portion of the Assumed Tax Liability for the
Covered Taxable Year arises as a result of an audit by a Taxing Authority of any Covered Taxable
Year, such adjustment to the liability shall not be included in determining the Realized Tax
Detriment unless and until there has been a Determination.

          “Reconciliation Dispute” is defined in Section 7.2(a).

          “Reconciliation Procedures” means those procedures set forth in Section 7.2 of this
Agreement.

          “Registrable Securities” means the Shares and any other securities issued or issuable
with respect to or in exchange for the Shares. As to any particular Registrable Securities, such
Shares and any other securities issued or issuable with respect to or in exchange for the Shares
shall cease to be Registrable Securities when (i) a registration statement with respect to the sale
of such Shares and any other securities issued or issuable with respect to or in exchange for the
Shares shall have become effective under the Securities Act and such Shares and any other
securities issued or issuable with respect to or in exchange for the Shares shall have been
disposed of in accordance with such registration statement, (ii) such Shares and any other
securities issued or issuable with respect to or in exchange for the Shares shall have been
distributed to the public pursuant to Rule 144 of the Securities Act, or (iii) such Shares and any
other securities issued or issuable with respect to or in exchange for the Shares shall have ceased
to be outstanding.

          “Registration Rights Agreement” means that certain Registration Rights Agreement,
dated June 23, 2008, by and between KRH and the Corporation.

          “Senior Obligations” means principal, interest or other amounts due and payable in
respect of any debt or guarantee of the Corporation for borrowed funds.

          “Shares” is defined in the recitals.

          “Securities Act” means the Securities Act of 1933, as amended.

          “Tax Benefit Payment” is defined in Section 3.1(b) of this Agreement.

          “Tax Benefit Schedule” is defined in Section 2.3(a) of this Agreement.

          “Tax Return” means any return or filing required to be made with respect to Covered
Taxes, including amended returns, for any Taxable Year with any Taxing Authority.

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          “Taxable Year” means a taxable year as defined in Section 441(b) of the Code or
comparable section of U.S. state or local income or franchise tax law, as applicable (and,
therefore, for the avoidance of doubt, may include a period of less than 12 months for which a Tax
Return is made).

          “Taxing Authority” means the IRS and any state or local Governmental Entity
responsible for the administration of any Covered Tax.

          “Termination Rate” means the lesser of (i) 7.0% and (ii) LIBOR plus 150 basis points.

          “Treasury Regulations” means the final, temporary and proposed regulations under the
Code promulgated from time to time (including corresponding provisions of succeeding provisions) as
in effect for the relevant time.

          “Unilateral Termination Date” is defined in Section 4.5 of this Agreement.

          “Unilateral Termination Notice” is defined in Section 4.5 of this Agreement.

          “Valuation Assumptions” means as of any Valuation Date, the assumptions that:

	 	1.	 	The Corporation will have income that exceeds the amount of any increase in
deductions that may be derived from the Basis Adjustment and Imputed Interest
throughout the relevant period for purposes of all Covered Taxes.
	 
	 	2.	 	There will be no change in the applicable tax rates for any Covered Tax
throughout the relevant period, except to the extent such changes have already been
enacted into law.
	 
	 	3.	 	All taxable income of the Corporation will be subject to the maximum applicable
tax rates for each Covered Tax throughout the relevant period.
	 
	 	4.	 	Any loss carryovers or carrybacks generated by the Basis Adjustment or the
Imputed Interest (including such Basis Adjustment and Imputed Interest generated as a
result of payments made under this Agreement) and available as of the date of the Early
Termination Notice will be utilized by the Corporation on a pro rata basis from the
Early Termination Date through the scheduled expiration date of such loss carryovers or
carrybacks.
	 
	 	5.	 	Any non-amortizable assets are deemed to be disposed of on the fifteenth
anniversary of the earlier of the Basis Adjustment and the Early Termination Date.
	 
	 	6.	 	If an Early Termination Date occurs prior to an Exchange of all Interests, such
remaining Interests not Exchanged as of the Early Termination Date shall be treated as
sold in an Exchange occurring on the Early Termination Date with the Shares received in
such deemed sale to be valued at the Market Value.

          “Valuation Date” means the date of an Early Termination Notice for purposes of
determining an Early Termination Payment.

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ARTICLE II

DETERMINATION OF REALIZED TAX BENEFIT OR REALIZED TAX DETRIMENT

          Section 2.1 Basis Adjustment Attributable to an Exchange. Pursuant to an Exchange, KRH has
the right to exchange Interests for cash, Shares or a combination of cash and Shares. The parties
hereto acknowledge that the Corporation’s share of the basis in the Exchange Assets shall be
increased by the excess, if any, of (A) the sum of (x) the Market Value of Shares, cash or other
consideration transferred to KRH pursuant to the Exchange as payment for Interests, (y) the amount
of payments made pursuant to this Agreement with respect to such Exchange and (z) the amount of
liabilities allocated to the Interests acquired pursuant to the Exchange, over (B) the
Corporation’s proportionate share of the basis of the Exchange Assets immediately after the
Exchange attributable to the Interests exchanged, determined as if each member of the Holdings II
Group remains in existence as an entity for tax purposes and no member of the Holdings II Group
made the election provided by Section 754 of the Code. For the avoidance of doubt, payments made
under this Agreement shall not be treated as resulting in a Basis Adjustment to the extent such
payments are treated as Imputed Interest.

          Section 2.2 Exchange Basis Schedule.

               (a) Generally. Within 45 calendar days after filing its U.S. federal income Tax Return for
the relevant Taxable Year, the Corporation shall deliver (or cause Holdings II to deliver) to KRH a
schedule (the “Exchange Basis Schedule”) that shows, in reasonable detail, for U.S. federal
income tax purposes, (i) the actual tax basis as of the first applicable Exchange Date in such
Taxable Year of the Exchange Assets, (ii) the Basis Adjustment with respect to the Exchange Assets
as a result of each Exchange effected in such Taxable Year, (iii) the period or periods, if any,
over which such Exchange Assets are amortizable or depreciable and (iv) the period or periods, if
any, over which each Basis Adjustment is amortizable or depreciable (which, for non-amortizable
assets, shall be based on the Valuation Assumptions). At the time the Corporation delivers (or
causes Holdings II to deliver) the Exchange Basis Schedule to KRH, it shall (x) deliver (or cause
Holdings II to deliver) to KRH schedules and work papers providing reasonable detail regarding the
preparation of the Exchange Basis Schedule and an Advisory Firm Letter supporting such Exchange
Basis Schedule and (y) allow KRH reasonable access to the appropriate representatives at the
Corporation, Holdings II and the Advisory Firm in connection with KRH’s review of such schedule.
The Exchange Basis Schedule shall become final and binding on the parties unless KRH, within 30
calendar days after receiving such Exchange Basis Schedule, provides the Corporation with notice of
a material objection to such Exchange Basis Schedule made in good faith and in reasonable detail.
If the parties, negotiating in good faith, are unable to successfully resolve the issues raised in
such notice within 30 calendar days after such notice was delivered to the Corporation, the
Corporation and KRH shall employ the Reconciliation Procedures.

               (b) Amendments to Exchange Basis Schedule. The Exchange Basis Schedule shall be amended from
time to time by the Corporation (i) in connection with a Determination, (ii) to correct
inaccuracies in the original Exchange Basis Schedule identified after the date of the Exchange as a
result of the receipt of additional information or (iii) to comply with the Expert’s determination
under the Reconciliation Procedures. The Corporation
shall deliver (or shall cause Holdings II to deliver) the amended Exchange Basis Schedule to
KRH within 60 days of the date of the related Determination, receipt of additional information or

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Expert’s determination, as applicable. At the time the Corporation delivers such amended Exchange
Basis Schedule to KRH, it shall (x) deliver to KRH schedules and work papers providing reasonable
detail regarding the preparation of the amended Exchange Basis Schedule and an Advisory Firm Letter
supporting such amended Exchange Basis Schedule and (y) allow KRH reasonable access to the
appropriate representatives at the Corporation, Holdings II and the Advisory Firm in connection
with KRH’s review of such schedule. The amended Exchange Basis Schedule shall become final and
binding on the parties unless KRH, within 30 calendar days after receiving such amended Exchange
Basis Schedule, provides the Corporation with notice of a material objection to such amended
Exchange Basis Schedule made in good faith and in reasonable detail. If the parties, negotiating
in good faith, are unable to successfully resolve the issues raised in such notice within 30
calendar days after such notice was delivered to the Corporation, the Corporation and KRH shall
employ the Reconciliation Procedures.

          Section 2.3 Tax Benefit Schedule.

               (a) Generally. Within 45 calendar days after filing its U.S. federal income Tax Return for
the relevant Covered Taxable Year, the Corporation shall provide to KRH a schedule showing, in
reasonable detail, the calculation of the Corporation’s Realized Tax Benefit or Realized Tax
Detriment for such Covered Taxable Year (the “Tax Benefit Schedule”). At the time the
Corporation delivers the Tax Benefit Schedule to KRH it shall (i) deliver to KRH schedules and work
papers providing reasonable detail regarding the preparation of the Tax Benefit Schedule and an
Advisory Firm Letter supporting such Tax Benefit Schedule and (ii) allow KRH reasonable access to
the appropriate representatives at the Corporation, Holdings II and the Advisory Firm in connection
with KRH’s review of such schedules. The Tax Benefit Schedule shall become final and binding on
the parties unless KRH, within 30 calendar days after receiving such Tax Benefit Schedule, provides
the Corporation with notice of a material objection to such Tax Benefit Schedule made in good faith
and in reasonable detail. If the parties, negotiating in good faith, are unable to successfully
resolve the issues raised in such notice within 30 calendar days after receipt thereof by the
Corporation, the Corporation and KRH shall employ the Reconciliation Procedures.

               (b) Amendments to Tax Benefit Schedule. A Tax Benefit Schedule for any Covered Taxable Year
shall be amended from time to time by the Corporation (i) in connection with a Determination
affecting such Tax Benefit Schedule, (ii) to correct inaccuracies in the original Tax Benefit
Schedule identified as a result of the receipt of additional factual information relating to a
Covered Taxable Year after the date the Tax Benefit Schedule was provided to KRH, (iii) to reflect
a change in the Realized Tax Benefit or Realized Tax Detriment for such Covered Taxable Year
attributable to a carryback or carryforward of a loss or other tax item to such Covered Taxable
Year, (iv) to reflect a change in the Realized Tax Benefit or Realized Tax Detriment for such
Covered Taxable Year attributable to an amended Tax Return filed for such Covered Taxable Year
(provided, however, that such a change attributable to an audit of a Tax Return by an applicable
Taxing Authority shall not be taken into account on an Amended Tax Benefit Schedule unless and
until there has been a Determination with respect to such change) or (v) to comply with the
Expert’s determination under the Reconciliation Procedures. The Corporation shall deliver the
Amended Tax Benefit Schedule to KRH within 60
days of the date of the related Determination, receipt of additional information, filing of
the amended Tax Return or application form or Expert’s determination, as applicable. At the time
the Corporation delivers such an amended Tax Benefit Schedule pursuant to this subsection (b)

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(an
“Amended Tax Benefit Schedule”) to KRH it shall (x) deliver to KRH schedules and work
papers providing reasonable detail regarding the preparation of the Amended Tax Benefit Schedule
and an Advisory Firm Letter supporting such Amended Tax Benefit Schedule and (y) allow KRH
reasonable access to the appropriate representatives at the Corporation, Holdings II and the
Advisory Firm in connection with KRH’s review of such schedule. Such Amended Tax Benefit Schedule
shall become final and binding on the parties unless KRH, within 30 calendar days after receiving
such Amended Tax Benefit Schedule, provides the Corporation with notice of a material objection to
such Amended Tax Benefit Schedule made in good faith and in reasonable detail. If the parties,
negotiating in good faith, are unable to successfully resolve the issues raised in such notice
within 30 calendar days after such notice was delivered to the Corporation, the Corporation and KRH
shall employ the Reconciliation Procedures.

               (c) Applicable Principles. The Realized Tax Benefit or Realized Tax Detriment for each
Covered Taxable Year is intended to measure the decrease or increase in the actual liability for
Covered Taxes of the Corporation for such Covered Taxable Year attributable to the Basis Adjustment
and Imputed Interest, determined using a “with and without” methodology. For the avoidance of
doubt, the actual liability for Covered Taxes will take into account the deduction of the portion
of the Tax Benefit Payment that must be accounted for as Imputed Interest under the Code based upon
the characterization of the Tax Benefit Payment as additional consideration payable by the
Corporation for the Interests acquired in an Exchange. Carryovers or carrybacks of any Covered Tax
item attributable to the Basis Adjustment and Imputed Interest (determined using such “with and
without” methodology) shall be considered to be subject to the rules of the Code and the Treasury
Regulations or the appropriate provisions of U.S. state and local income and franchise tax law, as
applicable, governing the use, limitation and expiration of carryovers or carrybacks of the
relevant type. If a carryover or carryback of any Covered Tax item includes a portion that is
attributable to the Basis Adjustment or Imputed Interest and another portion that is not, such
portions shall be considered to be used in the order determined using such “with and without”
methodology. The parties agree that (i) all Tax Benefit Payments will (A) be treated as subsequent
upward purchase price adjustments that give rise to further Basis Adjustments for the Corporation
and (B) have the effect of creating additional Basis Adjustments for the Corporation in the year of
payment, and (ii) as a result, such additional Basis Adjustments will be incorporated into the
current year calculation and into future year calculations, as appropriate, with any circularity
created in the current year continuing until any incremental current year benefits equal an
immaterial amount.

               (d) At the time of any Exchange, KRH shall conclude whether the aggregate value of the Tax
Benefit Payments can be ascertained with any reasonable certainty for U.S. federal income tax
purposes. Unless there is a Determination to the contrary, the Corporation and KRH, on their own
behalf and on behalf of each of their affiliates, agree to report and cause to be reported for all
U.S. purposes, including for purposes of all Covered Taxes and U.S. financial reporting purposes,
all payments made under this Agreement in a manner consistent with such conclusion.

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ARTICLE III

TAX BENEFIT PAYMENTS

          Section 3.1 Payments.

               (a) Within five (5) calendar days of the delivery of the Tax Benefit Schedule to KRH for any
Covered Taxable Year and, if applicable, within five (5) calendar days of the final determination
of the Tax Benefit Schedule pursuant to the procedures set forth in Section 2.3(a), the Corporation
shall pay to KRH an amount equal to the Tax Benefit Payment for such Covered Taxable Year or shall
make a payment to KRH with respect to an applicable dispute pursuant to Section 2.3(a). Each Tax
Benefit Payment shall be made by wire transfer of immediately available funds to the bank account
of KRH previously designated by KRH to the Corporation. For the avoidance of doubt, no Tax Benefit
Payment shall be made in respect of estimated tax payments, including, without limitation,
estimated U.S. federal income tax payments.

               (b) A “Tax Benefit Payment” for a Covered Taxable Year shall equal eighty-five percent
(85%) of the Corporation’s Realized Tax Benefit, if any, for such Covered Taxable Year,

               increased by:

               (i) interest calculated at the Termination Rate from the due date (without
extensions) for filing the relevant Tax Return for such Covered Taxable Year through
the date the Tax Benefit Payment is made; and

               (ii) eighty-five percent (85%) of the amount of the excess Realized Tax Benefit
reflected on an Amended Tax Benefit Schedule for a previous Covered Taxable Year
over the Realized Tax Benefit (or, in the case of a Realized Tax Detriment, the
Realized Tax Detriment (expressed as a negative number)) reflected on the Tax
Benefit Schedule for such previous Covered Taxable Year (plus interest thereon
calculated pursuant to paragraph (i) of this subsection (b)), and

               decreased by:

               (iii) an amount equal to eighty-five percent (85%) of the Corporation’s
Realized Tax Detriment (if any) for any previous Covered Taxable Year; and

               (iv) eighty-five percent (85%) of the amount of the excess Realized Tax Benefit
reflected on the Tax Benefit Schedule for a previous Covered Taxable Year over the
Realized Tax Benefit (or, in the case of a Realized Tax Detriment, the Realized Tax
Detriment (expressed as a negative number)) reflected on the Amended Tax Benefit
Schedule for such previous Covered Taxable Year (plus interest thereon calculated
pursuant to paragraph (i) of this subsection (b));

provided, however, that (A) the amounts described in clauses (ii), (iii) and (iv)
shall not be taken into account in determining a Tax Benefit Payment attributable to any Covered
Taxable Year to
the extent such amounts were taken into account in determining any Tax Benefit Payment in a
preceding Covered Taxable Year and (B) the Tax Benefit Payment shall not be a number less

11

 

than
zero. For the avoidance of doubt, KRH shall have no obligation to make any payment to the
Corporation, or to reimburse the Corporation for amounts previously paid, pursuant to this
Agreement.

          Section 3.2 No Duplicative Payment. No duplicative payment of any amount (including
interest) will be required under this Agreement.

          Section 3.3 Lump Sum Payment. (a) At any time that (1) the present value of the
remaining payments under Section 3.1 for each Covered Taxable Year beginning after the last Covered
Taxable Year for which a payment was made pursuant to Section 3.1, based upon the Valuation
Assumptions and using a discount rate of the Termination Rate, (the “Lump Sum Present
Value”) is equal to or less than $25 million, and (2) KRH is record owner of less than 10% of
the outstanding Interests in Holdings II, KRH may elect to require the Corporation to pay to KRH
the Lump Sum Present Value (in accordance with the next paragraph), by giving the Corporation a
notice (the “Lump Sum Election Notice”) stating that it is electing its right to receive
the Lump Sum Present Value payment under this Section 3.3 and showing in reasonable detail its
calculation of the Lump Sum Present Value (as of the date of the notice) and its ownership in
Holdings II.

               (b) The Corporation shall pay the Lump Sum Present Value in, at the Corporation’s election,
(i) cash, (ii) Shares (valued at Market Value as of the trading day immediately preceding the date
of payment) or (iii) a combination of cash and Shares (valued at Market Value as of the trading day
immediately preceding the date of payment). The Corporation shall pay the Lump Sum Present Value
within ten business days of receiving the Lump Sum Election Notice or within ten (10) business days
of the resolution of a dispute undertaken pursuant to Section 3.3(d) (or such other date as may be
agreed upon by KRH). The Lump Sum Present Value shall be calculated as of the date that such Lump
Sum Election Notice is received by the Corporation. If the Corporation elects to pay any portion
of such Lump Sum Present Value in Shares, such Shares will be fully paid, non-assessable and free
and clear of all liens, claims and encumbrances and such Shares will be treated as Registrable
Securities under the Registration Rights Agreement.

               (c) If KRH elects to receive the Lump Sum Present Value payment, and such Lump Sum Present
Value payment is paid in full in accordance with the provisions of this Section 3.3, then the
Corporation shall have no further obligations to make any further payments under Section 3.1 in
respect of any Covered Taxable Year included in the present value calculation under which the Lump
Sum Present Value payment was made. Differences in actual events after the date of the present
value calculation from those used in the present value calculation, including, without limitation,
in the assumptions, amounts of taxable income or other facts used in the present value calculation,
shall not affect, or require any adjustment or reimbursement of, the Lump Sum Present Value once
such amount has been paid in full.

               (d) The Corporation shall, within five calendar days of a request by KRH, prepare its
estimate of the Lump Sum Present Value as of the date of such request, together with
reasonable supporting detail showing the basis of its calculations. In the event the
Corporation’s estimate of the Lump Sum Present Value does not equal KRH’s estimate set forth in the
Lump Sum Election Notice, procedures similar to those set forth in Section 2.3(a) shall apply.

12

 

               (e) With respect to a Lump Sum Payment under this Section 3.3, the Corporation shall not
release any information to the public at any time until disclosure of such Lump Sum Payment is
required by the Exchange Act.

ARTICLE IV

TERMINATION

          Section 4.1 Early Termination. Upon the occurrence of a Change of Control, the Corporation
shall be obligated to terminate this Agreement effective as of the Early Termination Date by paying
to KRH the Early Termination Payment as provided in Section 4.3. Upon payment of the Early
Termination Payment by the Corporation, the Corporation shall have no further payment obligations
under this Agreement, other than for any (i) Tax Benefit Payment agreed to by the Corporation and
KRH as due and payable but unpaid as of the Early Termination Date and (ii) Tax Benefit Payment due
for the Covered Taxable Year ending with or including the Early Termination Date (except to the
extent that the amount described in clause (i) or (ii) is included in the Early Termination
Payment).

          Section 4.2 Early Termination Notice. Within 30 days of a Change of Control, the
Corporation shall deliver to KRH a notice (the “Early Termination Notice”) stating the date
of the Change of Control and showing in reasonable detail the calculation of the Early Termination
Payment. At the time the Corporation delivers the Early Termination Notice to KRH, the Corporation
shall (i) deliver to KRH schedules and work papers providing reasonable detail regarding the
calculation of the Early Termination Payment, in a manner consistent with the definition of such
term and an Advisory Firm Letter supporting such calculation and (ii) allow KRH reasonable access
to the appropriate representatives at the Corporation, Holdings II and the Advisory Firm in
connection with KRH’s review of such calculation. The calculation contained in such Early
Termination Notice shall become final and binding on the parties unless KRH, within 30 calendar
days after receiving such calculation, provides the Corporation with notice of a material objection
to such calculation made in good faith and in reasonable detail. If the parties, negotiating in
good faith, are unable to successfully resolve the issues raised in such calculation within 30
calendar days after such notice of material objection was delivered to the Corporation, the
Corporation and KRH shall employ the Reconciliation Procedures.

          Section 4.3 Payment upon Early Termination. Within (i), in the event KRH does not provide
the Corporation with notice of material objection pursuant to Section 4.2, 45 calendar days after
delivery to KRH of the Early
Termination Notice, (ii), in the event KRH provides the Corporation notice of material objection
and KRH and the Corporation successfully resolve the issues raised in such notice without
employment of the Reconciliation Procedures, in each case pursuant to Section 4.2, 10 calendar days
after such resolution or (iii), in the event of the employment of the Reconciliation Procedures
pursuant to Section 4.2, 10 days after the finalization of the Early Termination Notice pursuant to
such Reconciliation Procedures,

13

 

the Corporation shall pay to KRH an amount equal to the Early Termination Payment. Such payment
shall be made by wire transfer of immediately available funds to a bank account designated by KRH.

          Section 4.4 Breach of Agreement. In the event of a Material Breach, then all obligations
hereunder shall be accelerated and such obligations shall be calculated as if an Early Termination
Notice had been delivered on the date of such Material Breach and shall include, without
limitation, (1) the Early Termination Payment calculated as if an Early Termination Notice had been
delivered on the date of such Material Breach, (2) any Tax Benefit Payment agreed to by the
Corporation and KRH as due and payable but unpaid as of the date of such Material Breach and (3)
any Tax Benefit Payment due for the Taxable Year ending with or including the date of such Material
Breach. Notwithstanding the foregoing, in the event of a Material Breach, KRH shall be entitled to
elect to accelerate all obligations due to KRH hereunder as set forth in (1), (2) and (3) above or
to seek specific performance of the terms hereof.

          Section 4.5 Unilateral Termination by KRH. At any time, by providing notice (the
“Unilateral Termination Notice”) to the Corporation, KRH may elect to terminate this
Agreement effective as of the date designated by KRH in such notice (the “Unilateral Termination
Date”). Upon receipt of the Unilateral Termination Notice, the Corporation shall have no further
payment obligations under this Agreement, other than for any (i) Tax Benefit Payment agreed to by
the Corporation and KRH as due and payable but unpaid as of the Unilateral Termination Date and
(ii) Tax Benefit Payment due for the Covered Taxable Year ending with or including the Unilateral
Termination Date (except to the extent that the amount described in clause (ii) is attributable to
Interests exchanged after the Unilateral Termination Date).

ARTICLE V

SUBORDINATION AND LATE PAYMENTS

          Section 5.1 Subordination. Notwithstanding any other provision of this Agreement to the
contrary, any Tax Benefit Payment, Lump Sum Present Value payment (to the extent payable in cash)
or Early Termination Payment required to be made under this Agreement shall rank subordinate and
junior in right of payment to any Senior Obligations and shall rank pari passu with all current or
future unsecured obligations of the Corporation that are not Senior Obligations.

          Section 5.2 Late Payments by the Corporation. The amount of all or any portion of a payment not made to KRH when due under the terms of this
Agreement shall be payable together with interest thereon, computed at the Termination Rate and
commencing from the date on which such payment was due and payable and ending on the date of
payment.

14

 

ARTICLE VI

ELECTION; NO DISPUTES; CONSISTENCY; COOPERATION

          Section 6.1 Election to be Filed. As managing member of Holdings II, the Corporation shall
cause Holdings II and each Holdings II Group member that is treated as a partnership for U.S.
federal income tax purposes to file an election under Section 754 of the Code commencing with its
Taxable Year in which the Original Issue occurs and shall not cause any such entity to revoke such
election until this Agreement is no longer in effect. If Holdings II acquires an interest in an
entity that is treated as a partnership for U.S. federal income tax purposes, the Corporation shall
use its best efforts to cause such entity to file an election under Section 754 of the Code
effective for each such entity’s Taxable Year in which such acquisition occurs, unless such entity
already has an election under Section 754 of the Code in effect, and shall not cause such entity to
revoke such election until this Agreement is no longer in effect.

          Section 6.2 KRH’s Participation In Tax Matters of the Corporation. Except as otherwise
provided herein, the Corporation shall have full responsibility for, and sole discretion over, all
matters concerning Covered Taxes of the Corporation, including without limitation the preparation,
filing or amending of any Tax Return and defending, contesting or settling any issue pertaining to
Covered Taxes. Notwithstanding the foregoing, the Corporation shall notify KRH of, and keep KRH
reasonably informed with respect to, and KRH shall have the right to participate in and monitor
(but, for the avoidance of doubt, not to control) the portion of any audit of the Corporation by a
Taxing Authority the outcome of which is reasonably expected to affect KRH’s rights under this
Agreement. The Corporation shall provide to KRH reasonable opportunity to provide information and
other input to the Corporation and its advisors concerning the conduct of any such portion of such
audits. The Corporation shall not settle or otherwise resolve any audit or other challenge by a
Taxing Authority relating to the Basis Adjustment or the deduction of Imputed Interest without the
consent of KRH, which consent KRH shall not unreasonably withhold, condition or delay.

          Section 6.3 Consistency. Unless there is a Determination to the contrary or except with
the consent of the Corporation and KRH, the Corporation and KRH, on their own behalf and on behalf
of each of their affiliates, agree to report and cause to be reported for all U.S. purposes,
including for purposes of all Covered Taxes and U.S. financial reporting purposes, all items
related to Covered Taxes and this Agreement (including without limitation the Basis Adjustment and
each Tax Benefit Payment) in a manner consistent with that specified by the Corporation in any
schedule, letter or certificate required to be provided by or on behalf of the Corporation under
this Agreement, as such schedule, letter or certificate is modified as a result of the negotiation
of the parties pursuant to this Agreement or the Reconciliation Procedures. In the event that an
Advisory Firm is replaced by the Corporation with another firm, such replacement Advisory Firm
shall be required to
perform its services under this Agreement using procedures and methodologies consistent with the
previous Advisory Firm, unless otherwise required by law or the Corporation and KRH agree to the
use of other procedures and methodologies.

          Section 6.4 Cooperation. The Corporation and KRH shall (and shall cause their respective
Affiliates to) (i) furnish to each other in a timely manner such information, documents and other
materials as the Corporation or KRH may reasonably request for purposes of making any determination
or computation necessary or appropriate under this Agreement, preparing any Tax Return or
contesting or defending any audit, examination or controversy with

15

 

any Taxing Authority, (ii) make
its employees and representatives available to provide explanations of documents and materials and
such other information as may the Corporation or KRH reasonably request in connection with any of
the matters described in clause (i) above and (iii) reasonably cooperate in connection with any
such matter.

ARTICLE VII

GENERAL PROVISIONS

          Section 7.1 Notices. All notices, requests, claims, demands and other communications
hereunder shall be in writing and shall be deemed duly given and received (i) on the date of
delivery if delivered personally, or by facsimile upon confirmation of transmission by the sender’s
fax machine if sent on a Business Day (or otherwise on the next Business Day) or (ii) on the first
Business Day following the date of dispatch if delivered by a recognized next-day courier service.
All notices hereunder shall be delivered as set forth below, or pursuant to such other instructions
as may be designated in writing by the party to receive such notice:

if to the Corporation, to:

RHI Entertainment, Inc.

1325 Avenue of Americas, 21st Floor

New York, NY 10019

Fax: 212-977-3917

Attention: Henry S. Hoberman, Esq.

With a copy to:

Latham & Watkins LLP

885 Third Avenue

New York, NY 10022

Fax: 212-751-4864

Attention: Raymond Lin, Esq.

          if to KRH, the address of KRH set forth from time to time in the books and records
of Holdings II.

Any party may change its address or fax number by giving the other party written notice of its new
address or fax number in the manner set forth above.

          Section 7.2 Reconciliation.

               (a) In the event that the Corporation and KRH are unable to resolve a disagreement within the
relevant period designated in this Agreement (a “Reconciliation Dispute”), the
Reconciliation Dispute shall be submitted for determination to a nationally recognized expert (the
“Expert”) in the particular area of disagreement mutually acceptable to both parties. The
Expert shall be a partner in a nationally recognized accounting firm, a valuation firm, or a law
firm (other than the Advisory Firm), and the Expert shall not, and the firm that employs the Expert
shall not, have any material relationship with the Corporation or KRH or other actual or potential
conflict of interest. If the parties are unable to agree on an Expert within fifteen (15) days of
the last day of the relevant period otherwise designated in this Agreement for the resolution of a
disagreement, the Expert shall be appointed by the International Chamber of

16

 

Commerce Centre for
Expertise. The Expert shall resolve any matter relating to the Exchange Basis Schedule or an
amendment thereto, the Lump Sum Present Value calculation or the Early Termination Notice within 30
calendar days and shall resolve any matter relating to a Tax Benefit Schedule or an amendment
thereto within 15 calendar days or as soon thereafter as is reasonably practicable, in each case
after the matter has been submitted to the Expert for resolution. Notwithstanding anything in this
Agreement to the contrary, if the matter is not resolved before any payment that is the subject of
a disagreement is due or any Tax Return reflecting the subject of a disagreement is due, such
payment shall be made on the date prescribed by this Agreement and such Tax Return may be filed as
prepared by the Corporation, subject to adjustment or amendment upon resolution.

               (b) The costs and expenses relating to the engagement of the Expert or amending any Tax Return
shall be borne by the Corporation, except as provided in the next sentence. The Corporation and
KRH shall bear their own costs and expenses of such proceeding, unless KRH has a prevailing
position that is more than 10% of the payment at issue, in which case the Corporation shall
reimburse KRH for any reasonable out-of-pocket costs and expenses in such proceeding. Any dispute
as to whether a dispute is a Reconciliation Dispute within the meaning of this Section 7.2 shall be
decided by the Expert. The Expert shall finally determine any Reconciliation Dispute and the
determinations of the Expert pursuant to this Section 7.2 shall be binding on the Corporation and
KRH and may be entered and enforced in any court having jurisdiction.

          Section 7.3 Withholding. The Corporation shall be entitled to deduct and withhold from any
payment payable pursuant to this Agreement such amounts as the Corporation is required to deduct
and withhold with respect to the making of such payment under the Code, or any provision of state,
local or foreign Tax law, and shall promptly remit such withheld amounts to the appropriate Taxing
Authority. To the extent that amounts are so withheld and paid over to the appropriate Taxing
Authority by the Corporation, such withheld amounts shall be treated for all purposes of this
Agreement as having been paid to KRH. Each party will cooperate to minimize withholding
obligations, if any, with respect to payments required hereunder.

          Section 7.4 Submission to Jurisdiction; Waivers. Any Proceeding must be brought against any of the parties in the Court of Chancery of the State
of Delaware in and for New Castle County or, if the Court of Chancery lacks subject matter
jurisdiction, in another court of the State of Delaware, County of New Castle, or in the United
States District Court for the District of Delaware, and each of the parties consent to the
jurisdiction of such courts (and of the appropriate appellate courts) in any such Proceeding and
waives any objection to venue laid therein. Process in any Proceeding referred to in the preceding
sentence may be served on any party anywhere in the world. Each party to this Agreement
irrevocably (i) waives any objection which such party may have at any time to the laying of venue
of any Proceeding brought in any such court, waives any claim that such Proceeding has been brought
in an inconvenient forum and further waives the right to object, with respect to such Proceeding,
that such court does not have jurisdiction over such party and (ii) waives, to the fullest extent
permitted by applicable law, any and all rights to trial by jury in connection with any Proceeding.

          Section 7.5 Amendments. No amendment to this Agreement shall be effective unless it is (i)
in writing and (ii) signed by the Corporation and KRH.

17

 

          Section 7.6 Entire Agreement; No Third Party Beneficiaries. This Agreement constitutes the
entire agreement and supersedes all prior agreements and understandings, both written and oral,
among the parties with respect to the subject matter hereof. This Agreement shall be binding upon
and inure solely to the benefit of each party hereto and their respective successors and permitted
assigns, and nothing in this Agreement, express or implied, is intended to or shall confer upon any
other Person any right, benefit or remedy of any nature whatsoever under or by reason of this
Agreement.

          Section 7.7 Severability. If any term or other provision of this Agreement is invalid,
illegal or incapable of being enforced by any law or public policy, all other terms and provisions
of this Agreement shall nevertheless remain in full force and effect so long as the economic or
legal substance of the transactions contemplated hereby is not affected in any manner materially
adverse to any party. Upon such determination that any term or other provision is invalid, illegal
or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the parties as closely as possible in an
acceptable manner in order that the transactions contemplated hereby are consummated as originally
contemplated to the greatest extent possible.

          Section 7.8 Successors’ Assignment.

               (a) KRH may not assign this Agreement to any person without the prior written consent of the
Corporation; provided, however,

               (i) that, to the extent Interests are effectively transferred in accordance
with the terms of the LLC Agreement and any other agreements KRH may have entered
into with respect thereto, KRH may assign to the transferee of such Interests KRH’s
rights under this Agreement with respect to such transferred Interests, as long as
such transferee has executed and delivered,
or, in connection with such transfer, executes and delivers, a joinder to this
Agreement, in form and substance reasonably satisfactory to the Corporation,
agreeing to undertake all the rights, interests, entitlements and obligations of KRH
under this Agreement, except as otherwise provided in such joinder,

               (ii) that, once an Exchange has occurred, any and all payments that may become
payable to KRH pursuant to this Agreement with respect to such Exchange may be
assigned to any Person or Persons, as long as any such Person has executed and
delivered, or, in connection with such assignment, executes and delivers, a joinder
to this Agreement, in form and substance reasonably satisfactory to the Corporation,

               (iii) that KRH may pledge some or all of its rights, interests or entitlements
under this Agreement to any U.S. money center bank in connection with a bona fide
loan or other indebtedness and

               (iv) that (A) KRH or its permitted assignee may assign, transfer, pledge or
otherwise dispose of its rights and interests hereunder to any Person and (B) the
Corporation hereby agrees, at KRH’s (or, in the case of an assignment, transfer,
pledge or other disposition by a permitted assignee, at such permitted assignee’s)
expense, to execute and deliver such documents as may be reasonably necessary to
accomplish any such assignment, transfer, pledge or

18

 

other disposition of rights and
interests hereunder so long as the Corporation’s rights under this Agreement are not
thereby materially altered, amended, diminished or otherwise impaired.

               (b) The Corporation may not assign any of its rights, interests or entitlements under this
Agreement without the consent of KRH, not to be unreasonably withheld or delayed, and any
assignment without such consent shall be null and void.

               (c) Notwithstanding the foregoing, to the extent KRH transfers an interest to a member of KRH,
such member shall have all rights under this Agreement and the requirement to execute and deliver a
joinder pursuant to this Section 7.8 shall not be construed as requiring such execution and
delivery prior to an assignment becoming effective. At the time of such assignment and at the time
of any Tax Benefit Payment, KRH and the member shall determine the percentage of each Tax Benefit
Payment to be made by the Corporation to such member.

               (d) Subject to subsections (a) and (b), this Agreement will be binding upon, inure to the
benefit of and be enforceable by, the parties and their respective successors and assigns including
any acquirer of all or substantially all of the assets of the Corporation.

          Section 7.9 Admission of the Corporation into a Consolidated Group. If the Corporation
becomes a member of an affiliated or consolidated group of corporations that files a consolidated
income Tax Return pursuant to Sections 1501 et seq. of the Code or any corresponding provisions of
state, local or foreign law, then: (i) the provisions of this Agreement shall be applied with
respect to the group as a whole; and (ii) Tax Benefit Payments shall be computed with reference to
the consolidated taxable income of the group as a whole.

          Section 7.10 Remedies; Specific Performance. The parties hereto acknowledge that money damages would not be an adequate remedy at law if any
party fails to perform in any material respect any of its obligations hereunder and accordingly
agree that each party, in addition to any other remedy to which it may be entitled at law or in
equity, shall be entitled to seek to compel specific performance of the obligations of any other
party under this Agreement, without the posting of any bond, in accordance with the terms and
conditions of this Agreement in any court of the United States or any State thereof having
jurisdiction, and if any action should be brought in equity to enforce any of the provisions of
this Agreement, none of the parties hereto shall raise the defense that there is an adequate remedy
at law. No remedy shall be exclusive of any other remedy, and all available remedies shall be
cumulative.

          Section 7.11 Counterparts. This Agreement may be executed in one or more counterparts, all
of which shall be considered one and the same agreement and shall become effective when one or more
counterparts have been signed by each of the parties and delivered to the other parties, it being
understood that all parties need not sign the same counterpart.

          Section 7.12 Titles and Subtitles. The titles of the sections and subsections of this
Agreement are for convenience of reference only and are not to be considered in construing this
Agreement.

          Section 7.13 Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Delaware without giving effect to applicable principles
of conflict of laws.

19

 

               IN WITNESS WHEREOF, the Corporation, KRH and Holdings II have duly executed this Agreement as
of the date first written above.

	 	 	 	 	 
	 	RHI ENTERTAINMENT, INC.

 	 
	 	By:  	/s/ Henry S. Hoberman
 	 
	 	 	Name:  	Henry S. Hoberman  	 
	 	 	Title:  	Executive Vice President 	 
	 

	 	 	 	 	 
	 	KRH INVESTMENTS LLC

 	 
	 	By:  	/s/ Henry S. Hoberman
 	 
	 	 	Name:  	Henry S. Hoberman  	 
	 	 	Title:  	Executive Vice President 	 
	 

	 	 	 	 	 
	 	RHI ENTERTAINMENT HOLDINGS II, LLC

 	 
	 	By:  	/s/ Henry S. Hoberman
 	 
	 	 	Name:  	Henry S. Hoberman  	 
	 	 	Title:  	Executive Vice President 	 
	 

Signature Page — Tax Receivable AgreementEX-10.3

Exhibit 10.3

REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (this “Agreement”) is entered into as of June 23,
2008 between RHI Entertainment, Inc., a Delaware corporation (the “Corporation”), and KRH
Investments LLC, a Delaware limited liability company (“KRH”). The Corporation and KRH are
parties to the Limited Liability Company Operating Agreement of RHI Entertainment Holdings II, LLC
(“Holdings II”), dated June 23, 2008 (the “LLC Agreement”).

     The parties agree as follows:

     1. Defined Terms; Interpretation.

          (a) Defined Terms. The following terms shall have the following meanings in this
Agreement:

               “Adverse Effect” has the meaning set forth in Section 2(a)(vi) of this Agreement.

               “Affiliate” has the meaning set forth in the LLC Agreement.

               “Agreement” has the meaning set forth in the preamble of this Agreement.

               “Board” means the Board of Directors of the Corporation.

               “Business Day” means a day other than a Saturday, Sunday, federal holiday or other day
on which commercial banks in New York, New York are authorized or required by law to close.

               “CEO” means the Chief Executive Officer of the Corporation.

               “CFO” means the Chief Financial Officer of the Corporation.

               “Common Stock” shall mean the Corporation’s common stock, par value $0.01 per share,
and any securities into which such shares may hereinafter be reclassified.

               “Control” (including the terms “Controlling,” “Controlled by” and “under common
Control with”), with respect to the relationship between or among two or more Persons, means the
possession, directly or indirectly, of the power to direct or cause the direction of the affairs or
management of a Person, whether through the ownership of voting securities, as trustee or executor,
by contract or otherwise.

 

 

               “Corporation” has the meaning set forth in the preamble of this Agreement.

               “Director” means a member of the Board.

               “Equity Interests” means, with respect to the Corporation, any and all shares of
capital stock in the Corporation or securities convertible into, or exchangeable or exercisable
for, such shares, and options, warrants or other rights to acquire such shares.

               “Exchange Act” means the Securities and Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder, as the same may be amended from time to time.

               “Governmental Authority” means any nation or government, any state or other political
subdivision thereof, and any entity exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government.

               “Group” has the meaning set forth in Section 13(d)(3) of the Exchange Act.

               “IPO” means an initial primary sale by the Corporation of shares of Common Stock to
the public in an offering pursuant to an effective registration statement (other than a
registration statement on Form S-4 or S-8 or any similar or successor form) filed under the
Securities Act, so that after giving effect to such offering, such shares of Common Stock are
listed on one or more nationally recognized exchanges or quoted on one or more automated quotation
systems, including the NYSE or NASDAQ, respectively.

               “KRH” has the meaning set forth in the Preamble.

               “KRH Registrable Securities” has the meaning set forth in Section 2(a)(i)(1) of this
Agreement.

               “LLC Act” means the Delaware Limited Liability Company Act, 6 Del.C.
§§ 18-101, et seq., as it may be amended from time to time, and any successor to such
statute.

               “LLC Agreement” has the meaning set forth in the preamble of this Agreement.

               “Losses” has the meaning set forth in Section 2(g)(i) of this Agreement.

2

 

               “Member” means KRH and each Person that becomes a member, as contemplated in the LLC
Act, of Holdings II in accordance with the provisions of the LLC Agreement and that has not ceased
to be a Member as provided in Section 3.1(d) of the LLC Agreement, and each of such Member’s
Permitted Transferees, if applicable.

               “NASDAQ” has the meaning set forth in Section 2(d)(viii) of this Agreement.

               “NYSE” has the meaning set forth in Section 2(d)(viii) of this Agreement.

               “Officer” means a person designated as an officer of the Corporation by the Board or
the CEO.

               “Other Holder Registrable Securities” has the meaning set forth in Section 2(a)(i)(4)
of this Agreement.

               “Permitted Transferee” has the meaning set forth in the LLC Agreement.

               “Person” means any individual, corporation, limited liability company, partnership,
trust, joint stock company, business trust, unincorporated association, joint venture, Governmental
Authority or other entity or organization of any nature whatsoever or any Group of two or more of
the foregoing.

               “Registrable Securities” means the Shares and any other securities issued or issuable
with respect to or in exchange for the Shares. As to any particular Registrable Securities, such
Shares and any other securities issued or issuable with respect to or in exchange for the Shares
shall cease to be Registrable Securities when (i) a registration statement with respect to the sale
of such Shares and any other securities issued or issuable with respect to or in exchange for the
Shares shall have become effective under the Securities Act and such Shares and any other
securities issued or issuable with respect to or in exchange for the Shares shall have been
disposed of in accordance with such registration statement, (ii) such Shares and any other
securities issued or issuable with respect to or in exchange for the Shares shall have been
distributed to the public pursuant to Rule 144, or (iii) such Shares and any other securities
issued or issuable with respect to or in exchange for the Shares shall have ceased to be
outstanding.

               “Registration Expenses” means any and all expenses incident to performance of or
compliance with Sections 2(a), 2(b), 2(c) and 2(d), including (i) all SEC and stock exchange or
automated quotation system or NASD, Inc. registration, filing and listing fees, (ii) all fees and
expenses of complying with state securities or blue sky laws (including fees and disbursements of
counsel for the underwriters in connection

3

 

with blue sky qualifications of the Registrable Securities), (iii) all printing, word
processing, duplication, messenger and delivery expenses, (iv) all fees and expenses incurred in
connection with the listing of the Registrable Securities on any stock exchange or automated
quotation system pursuant to this Agreement, (v) the fees and disbursements of counsel for the
Corporation and of its independent public accountants, including the expenses of any special audits
or “cold comfort” letters or both required by or incident to such performance and compliance,
(vi) the reasonable fees and disbursements of one counsel for all of the Members, selected by the
Members participating in such registration and reasonably satisfactory to the Corporation,
(vii) any reasonable fees and disbursements of underwriters and their counsel customarily paid by
the issuers or sellers of securities, including liability insurance if the Corporation so desires
or if the underwriters so require, and the reasonable fees and expenses of any special experts
retained in connection with any registration, but excluding underwriting discounts and commissions
and transfer taxes, if any, and (viii) all reasonable expenses (including travel expenses) incurred
in connection with any “road shows” (including the reasonable expenses of any applicable selling
Member).

               “Registration Indemnified Parties” has the meaning set forth in Section 2(g)(i) of
this Agreement.

               “Rule 144” means Rule 144 (or any successor provision), as the same may be amended
from time to time, under the Securities Act.

               “SEC” means the U.S. Securities and Exchange Commission or any other federal agency
then administering the Securities Act or the Exchange Act and other federal securities law.

               “Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder, as the same may be amended from time to time.

               “Senior Officers” means the CEO and CFO, collectively.

               “Shares” means the shares of Common Stock issued and issuable to any KRH pursuant to
the exercise by KRH of its Exchange Right (as defined in the LLC Agreement) and their conversion or
exchange rights as set forth in the Corporation’s Certificate of Incorporation.

               “Subsidiary” means, with respect to any Person, (i) a corporation a majority of whose
capital stock with the general voting power under ordinary circumstances to vote in the election of
directors of such corporation (irrespective of whether or not, at the time, any other class or
classes of securities shall have, or might have, voting power by reason of the happening of any
contingency) is at the time

4

 

beneficially owned by such Person, by one or more Subsidiaries of such Person or by such
Person and one or more Subsidiaries thereof or (ii) any other Person (other than a corporation),
including a joint venture, a general or limited partnership or a limited liability company, in
which such Person, one or more Subsidiaries thereof or such Person and one or more Subsidiaries
thereof, directly or indirectly, at the date of determination thereof, beneficially own at least a
majority ownership interest entitled to vote in the election of directors, managers or trustees
thereof (or other Persons performing such functions) or act as the general partner or managing
member of such other Person.

               “Third Party Registrant” has the meaning set forth in Section 2(b)(i) of this
Agreement.

               “Transaction Delay Notice” has the meaning set forth in Section 2(a)(vii)(1) of this
Agreement.

               “Transfer” (including the term “Transferred”) means, directly or indirectly,
to sell, transfer, give, exchange, bequest, assign, pledge, encumber, hypothecate or otherwise
dispose of, either voluntarily or involuntarily (including upon the foreclosure under any pledge or
hypothecation permitted below that results in a change in title), any Equity Interests in the
Corporation or other assets beneficially owned by a Person or any interest in any Equity Interests
in the Corporation or other assets beneficially owned by a Person. Notwithstanding the foregoing:
a bona fide pledge of the Shares or other Equity Interests by any Member or its Affiliates shall
not be deemed to be a Transfer hereunder.

          (b) Other Definitional Provisions; Interpretation.

               (i) The words “hereof,” “herein” and “hereunder” and words of similar import when used in this
Agreement will refer to this Agreement as a whole, including the Exhibits and Schedules attached
hereto, and not to any particular provision of this Agreement. Articles, section and subsection
references are to this Agreement unless otherwise specified.

               (ii) The words “include” and “including” and words of similar import when used in this
Agreement shall be deemed to be followed by the words “without limitation”.

               (iii) The titles and headings in this Agreement are included for convenience of reference only
and will not limit or otherwise affect the meaning or interpretation of this Agreement.

               (iv) The meanings given to capitalized terms defined herein will be equally applicable to both
the singular and plural forms of such terms, Whenever the

5

 

context may require, any pronoun shall include the corresponding masculine, feminine and
neuter forms.

     2. Registration Rights and Procedures.

          (a) Registration on Request of KRH.

               (i) Request. Subject to the lock-up agreement applicable to KRH in connection with
the IPO, KRH may request in writing no earlier than 90 days prior to the expiration of such lock-up
agreement, that the Corporation effect the registration for resale under the Securities Act of all
or part of KRH’s Registrable Securities on a resale registration statement on Form S-1. Any such
request will specify (a) the number of Registrable Securities proposed to be sold and (b) the
intended method of disposition thereof. Subject to the other provisions of this Section 2(a), the
Corporation shall promptly and as expeditiously as possible, use its reasonable best efforts to
effect the registration under the Securities Act , but in no event prior to the expiration of such
underwriter lock-up period, of:

                    (1) the Registrable Securities which the Corporation has been so requested to register by KRH
(“KRH Registrable Securities”);

                    (2) all Registrable Securities of the same class(es) or series as the KRH Registrable
Securities which have been requested to be included by the Corporation in such registration
(“Corporation Registrable Securities”); and

                    (3) all Registrable Securities of the same class(es) or series as the KRH Registrable
Securities which have been requested to be included by holders of Registrable Securities other than
KRH (“Other Holder Registrable Securities”).

               (ii) Unlimited Registration Rights. The Corporation shall be required to effect any
and all requests by KRH for the registration of Registrable Securities on Form S-1 pursuant to this
Section 2(a).

               (iii) Expenses. The Corporation will pay all Registration Expenses in connection with
registrations pursuant to this Section 2(a).

               (iv) Effective Registration Statement. A registration requested pursuant to this
Section 2(a) will not be deemed to have been effected:

                    (1) unless a registration statement with respect thereto has become effective and remained
effective in compliance with the provisions of the Securities Act with respect to the disposition
of all Registrable Securities covered by such registration statement until the earlier of (x) such
time as all of such Registrable

6

 

Securities have been disposed of in accordance with the intended methods of disposition
thereof set forth in such registration statement or (y) 180 days after the effective date of such
registration statement, except with respect to any registration statement filed pursuant to Rule
415 under the Securities Act, in which case the Corporation shall use its reasonable best efforts
to keep such registration statement effective until such time as all of the Registrable Securities
covered thereby cease to be Registrable Securities; provided, however, that if the
failure of any such registration statement to become or remain effective in compliance with this
Section 2(a)(iv)(1) is due solely to acts or omissions of KRH, such registration requested pursuant
to this Section 2(a) will be deemed to have been effected;

                    (2) if after it has become effective, the registration statement is interfered with by any
stop order, injunction or other order or requirement of the SEC or other governmental agency or
authority and is not thereafter effective; or

                    (3) if the conditions to closing specified in the underwriting agreement, if any, entered into
in connection with such registration are not satisfied or waived, other than by: (A) reason of a
failure on the part of KRH; or (B) if the Registrable Securities covered by such registration
cannot be sold within a price range acceptable to KRH.

               (v) Underwritten Offering. At the election of KRH, a requested registration pursuant
to this Section 2(a) may involve an underwritten offering, and, in such case, the investment
bankers, underwriters and managers for such registration shall be selected by KRH in consultation
with other holders of Registrable Securities being included in such registration pursuant to
Section 2(a); provided, however, that such investment bankers, underwriters and
managers shall be reasonably satisfactory to the Corporation.

               (vi) Priority in Requested Registrations. If a requested registration pursuant to
this Section 2(a) involves an underwritten offering and the managing underwriter advises the
Corporation in writing that, in its opinion, the number of securities to be included in such
registration would be likely to have an adverse effect on the price, timing or distribution of the
securities to be offered in such offering as contemplated by KRH (an “Adverse Effect”),
then the Corporation shall include in such registration all Registrable Securities that the
managing underwriter believes can be sold in such offering without having an Adverse Effect
allocated in the following order of priority: (a) first, all KRH Registrable Securities;
(b) second, all Corporation Registrable Securities; and (c) third, all Other Holder
Registrable Securities. If such managing underwriter advises the Corporation that only a portion
of the Registrable Securities in any of clauses (a) through (c) above may be included in such
registration without such Adverse Effect, the Corporation shall include the Registrable Securities
from the holders of Registrable Securities in such clause on a pro rata basis based on the relative
amount

7

 

of Registrable Securities then held
by each such holder who has requested that securities owned by them be so including in a
registration (provided that any such amount thereby allocated to any such holder that
exceeds such holder’s request shall be reallocated among the remaining requesting holders in a like
manner). Without limiting the foregoing, if the managing underwriter of any underwritten offering
shall advise KRH that the Registrable Securities covered by the registration statement cannot be
sold in such offering within a price range acceptable to KRH, then KRH may determine that the
registration statement should be abandoned or withdrawn, and upon notice thereof to the
Corporation, the Corporation shall abandon or withdraw such registration statement. If KRH is not
allowed to register all of the Registrable Securities requested to be included by KRH because of
allocations required by this section, KRH shall not be deemed to have exercised a registration for
purposes of Section 2(a).

               (vii) Postponements in Requested Registrations.

                    (1) If upon receipt of a registration request, the Corporation shall furnish to KRH a
certificate signed by the CEO or any other Senior Officer stating that the Corporation has pending
or in process a material transaction (the “Transaction Delay Notice”), the disclosure of
which would, in the good faith judgment of the Board, after consultation with its outside counsel,
materially and adversely affect such transaction and that the filing of a registration statement
would require disclosure of such material transaction within 48 hours of such receipt of such
request, the Corporation shall not be required to comply with its obligations under Section 2(a)(i)
until 60 days after KRH’s receipt of such notice.

                    (2) Notwithstanding the foregoing provisions of this Section 2(a)(vii), the Corporation shall
be entitled to serve only one Transaction Delay Notice within any period of 365 consecutive days.

               (viii) Suspension of Registration Statement. If, at any time when a registration
statement effected pursuant to Section 2(a)(i) hereunder relating to Registrable Securities is
effective and a prospectus relating thereto is required to be delivered under the Securities Act
within the appropriate period mentioned in Section 2(d)(ii) hereunder, the Corporation becomes
aware that the prospectus included in such registration statement, as then in effect, includes an
untrue statement of a material fact or omits to state a material fact required to be stated therein
or necessary to make the statements therein not misleading in the light of the circumstances then
existing, to the extent that the amendment or supplement to such prospectus are necessary to
correct such untrue statement of a material fact or omission to state a material fact would require
disclosure of material information which the Corporation has a bona fide business purpose for
preserving as confidential and the Corporation provides KRH written notice thereof promptly after
the Corporation makes such determination, KRH shall suspend sales of Registrable Securities
pursuant to such registration statement and the Corporation

8

 

shall not be required to comply with
its obligations under Section 2(d)(vi) until the earlier of (a) the date upon which such material
information is disclosed to the public or ceases to be material or (b) 60 days after KRH’s receipt
of such written notice. If KRH’s disposition of Registrable Securities is discontinued pursuant to
the foregoing sentence, unless the Corporation thereafter extends the effectiveness of the
registration statement for so long as necessary to permit the dispositions of all Registrable
Securities covered thereby, the registration statement shall not be counted for purposes of
determining the number of registrations permitted under Section 2(a)(ii) hereof.

               (ix) Additional Rights. The Corporation shall not, at any time, grant to any other
holders of Shares (or securities that are convertible, exchangeable or exercisable into Shares or
other Equity Interests) any rights to request the Corporation to effect the registration under the
Securities Act of any such Shares (or any such securities) on terms more favorable to such holders
than the terms set forth in this Section 2(a).

          (b)
Incidental Registrations.

               (i) Right to Piggyback. If the Corporation or any other Person that has demand
registration rights (a “Third Party Registrant”) at any time after the expiration of any
underwriter lock-up period applicable to the IPO proposes to register equity securities under the
Securities Act (other than a registration on Form S-4 or S-8, or any successor or other forms
promulgated for similar purposes), whether or not for sale for its own account, in a manner which
would permit registration of Registrable Securities for sale to the public under the Securities
Act, the Corporation will, at each such time, give prompt written notice to KRH of its intention to
do so and of KRH’s rights under this Agreement. Upon the written request of KRH made within
15 days after the receipt of any such notice (which request shall specify the Registrable
Securities intended to be disposed of by KRH), the Corporation will use its reasonable best efforts
to effect the registration under the Securities Act of all Registrable Securities which the
Corporation has been so requested to register by KRH; provided, however, that
(a) if, at any time after giving written notice of its intention to register any securities and
prior to the effective date of the registration statement filed in connection with such
registration, the Corporation or such Third Party Registrant shall determine for any reason not to
proceed with the proposed registration of the securities to be sold by it, the Corporation may, at
its election, give written notice of such determination to KRH and, thereupon, shall be relieved of
its obligation to register any Registrable Securities in connection with such terminated
registration (but not from its obligation to pay the Registration Expenses
in connection therewith), and (b) if such registration involves an underwritten offering, KRH
shall enter into an agreement with the underwriters to sell their Registrable Securities to the
underwriters selected by the Corporation or such Third Party Registrant on substantially the same
terms and conditions as apply to the Corporation or such Third Party Registrant, with such
differences, including any with respect to indemnification and liability insurance, as may be
customary or appropriate in combined primary and

9

 

secondary offerings. Notwithstanding the
foregoing, if a registration requested pursuant to this Section 2(b) involves an underwritten
public offering, KRH may elect, in writing prior to the effective date of the registration
statement filed in connection with such registration, not to register all or any part of its
Registrable Securities in connection with such registration. The registrations provided for in
this Section 2(b) are in addition to, and not in lieu of, registrations made in accordance with
Section 2(a).

               (ii) Expenses. The Corporation will pay all Registration Expenses in connection with
each registration of Registrable Securities requested pursuant to this Section 2(b).

               (iii) Priority in Incidental Registrations. If a registration pursuant to this
Section 2(b) involves an underwritten offering and the managing underwriter advises the Corporation
in writing that, in its opinion, the number of Registrable Securities requested to be included in
such registration would be likely to have an Adverse Effect on such offering, then the Corporation
shall include in such registration: (a) first, 100% of the securities which the
Corporation or the Third Party Registrant proposes to sell; (b) second, the amount of
Registrable Securities which KRH has requested to be included in such registration; and
(c) third, the amount of Registrable Securities which the other holders of Registrable
Securities have requested to be included in the registration. If such managing underwriter advises
the Corporation that only a portion of such Registrable Securities in any of clauses (b) and (c)
may be included in such registration without such Adverse Effect, the Corporation shall include
Registrable Securities from the holders of Registrable Securities in such clauses on a pro rata
basis based on the relative amount of Registrable Securities then held by each such holder
(provided, that any such amount thereby allocated to any such holder that exceeds such
holder’s request shall be reallocated among the remaining requesting holders in like manner).

          (c) Mandatory Registration.

               (i) Corporation Registration. On the first Business Day following the one year
anniversary of the closing of the IPO, the Corporation shall file with the SEC a resale
registration statement on any registration statement form that is available to the Corporation at
such time, for the registration under the Securities Act of the resale of all outstanding
Registrable Securities held by KRH that have not been previously and then registered.
Additionally, the Corporation shall file, within 20 days
after the issuance of additional Registrable Securities to KRH, in the future with the SEC a
resale registration statement on any registration statement form that is available to the
Corporation at such time for the registration under the Securities Act of the resale of such newly
issued Registrable Securities.

10

 

               (ii) Expenses. The Corporation will pay all Registration Expenses in connection with
the registration of Registrable Securities pursuant to this Section 2(c).

               (iii) Effective Registration Statement. The Corporation shall use its reasonable best efforts
to cause the registration statement required to be filed pursuant to this Section 2(c) to become
effective and remain effective in compliance with the provisions of the Securities Act with respect
to the disposition of all Registrable Securities or registration statements with respect to
Registrable Securities issued to KRH in the future covered by such registration statement until the
earlier of (x) such time as all such Registrable Securities have been disposed of in accordance
with the intended methods of disposition thereof set forth in such registration statement or (y)
such time as all Registrable Securities held by KRH are eligible to be sold pursuant to Rule 144(d)
promulgated under the Securities Act, or any successor provisions thereto.

          (d) Registration Procedures. If and whenever the Corporation is required to use its reasonable
best efforts to cause the registration of any Registrable Securities under the Securities Act as
provided in this Agreement, the Corporation will, as expeditiously as possible:

               (i) (A) with respect to any registration under Section 2(a), prepare and, in any event within
20 days of the date on which the Corporation first received a request from KRH pursuant to Section
2(a)(i), file with the SEC a registration statement with respect to such Registrable Securities and
use its reasonable best efforts to cause such registration statement to become effective within
90 days of the initial filing, and (B) with respect to any registration under Section 2(b) and
subject to the Corporation’s rights set forth in Section 2(b), use its reasonable best efforts to
file with the SEC a registration statement with respect to such Registrable Securities and use its
reasonable best efforts to cause such registration statement to become effective within 90 days of
the initial filing, and (C) with respect to any registration under Section 2(c), use its reasonable
best efforts to file with the SEC a registration statement with respect to such Registrable
Securities and use its reasonable best efforts to cause such registration statement to become
effective within 90 days of the initial filing; provided, however, that before
filing a registration statement or prospectus or any amendments or supplements thereto (including
documents that would be incorporated or deemed to be incorporated therein by reference) the
Corporation will furnish to the holders holding Registrable Securities covered by such registration
statement, counsel for the holders of the
Registrable Securities being registered and the managing underwriters, if any, copies of all
such documents proposed to be filed, which documents will be subject to the review of such holders,
such special counsel and such underwriters, and the Corporation will not file any such registration
statement or amendment thereto or any prospectus or any supplement thereto (excluding such
documents that, upon filing, will be incorporated or deemed to be incorporated by reference
therein) to which the holders of a majority of the

11

 

Registrable Securities covered by such
registration statement or the managing underwriter, if any, shall reasonably object;

               (ii) prepare and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection therewith as may be necessary to keep such
registration statement effective in accordance with Section 2(a) and to comply with the provisions
of the Securities Act and the Exchange Act with respect to the disposition of all securities
covered by such registration statement during such period in accordance with the intended methods
of disposition by the seller or sellers thereof set forth in such registration statement;
provided, however, that before filing a registration statement or prospectus, or
any amendments or supplements thereto in accordance with Section 2(d)(i) or this Section 2(d)(ii),
the Corporation will furnish to counsel for the holders of the Registrable Securities being
registered copies of all documents proposed to be filed, which documents will be subject to the
review of such counsel;

               (iii) furnish to each holder of Registrable Securities being registered such number of copies
of such registration statement and of each amendment and supplement thereto (in each case including
all exhibits filed therewith, including any documents incorporated by reference), such number of
copies of the prospectus included in such registration statement (including each preliminary
prospectus and summary prospectus), in conformity with the requirements of the Securities Act, and
such other documents as such seller may reasonably request in order to facilitate the disposition
of the Registrable Securities by such holder;

               (iv) use its reasonable efforts to register or qualify such Registrable Securities covered by
such registration in such jurisdictions as each holder of Registrable Securities being registered
shall reasonably request, and do any and all other acts and things which may be reasonably
necessary or advisable to enable such holder to consummate the disposition in such jurisdictions of
the Registrable Securities owned by such holder, except that the Corporation shall not for any such
purpose be required to qualify generally to do business as a foreign corporation in any
jurisdiction where, but for the requirements of this Section 2(d)(iv), it would not be obligated to
be so qualified, to subject itself to taxation in any such jurisdiction or to consent to general
service of process in any such jurisdiction;

               (v) use its reasonable best efforts to cause such Registrable Securities covered by such
registration statement to be registered with or approved by such other Governmental Authorities as
may be necessary to enable the holders thereof to consummate the disposition of such Registrable
Securities;

               (vi) notify each holder of any such Registrable Securities covered by such registration
statement, at any time when a prospectus relating thereto is

12

 

required to be delivered under the
Securities Act, of the Corporation’s becoming aware that the prospectus included in such
registration statement, as then in effect, includes an untrue statement of a material fact or omits
to state a material fact required to be stated therein or necessary to make the statements therein
not misleading in the light of the circumstances then existing, and at the request of any such
holder, prepare and furnish to such holder a reasonable number of copies of an amended or
supplemental prospectus as may be necessary so that, as thereafter delivered to the holders of such
Registrable Securities, such prospectus shall not include an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make the statements
therein not misleading in the light of the circumstances then existing;

               (vii) otherwise use its reasonable best efforts to comply with all applicable rules and
regulations of the SEC and make available to its security holders, as soon as reasonably
practicable (but not more than 18 months) after the effective date of the registration statement,
an earnings statement which shall satisfy the provisions of Section 11(a) of the Securities Act;

               (viii) use its reasonable best efforts to cause all Registrable Securities covered by such
registration statement to be (a) listed on each stock exchange or automated quotation system, if
any, on which securities issued by the Corporation of the same class are then listed or, if no such
securities issued by the Corporation are then so listed, on the New York Stock Exchange (the
“NYSE”) or another nationally stock exchange, if the securities qualify to be so listed or
(b) on the Nasdaq Stock Market of the Nasdaq Global Market (“NASDAQ”) or another nationally
recognized automated quotation system, if the securities qualify to be so quoted;

               (ix) as needed, (a) engage an appropriate transfer agent and provide the transfer agent with
printed certificates for the Registrable Securities in a form eligible for deposit with The
Depository Trust Company and (b) provide a CUSIP number for the Registrable Securities;

               (x) enter into such customary agreements (including an underwriting agreement in customary
form), which may include indemnification provisions in favor of underwriters and other Persons in
addition to or in substitution for the provisions of Section 2(g) hereof, and take such other
actions as holders of a majority
of shares of such Registrable Securities or the underwriters, if any, reasonably requested in
order to expedite or facilitate the disposition of such Registrable Securities;

               (xi) obtain a “cold comfort” letter or letters from the Corporation’s independent public
accountants in customary form and covering matters of the type customarily covered by “cold
comfort” letters as the holders of a majority of shares of such Registrable Securities shall
reasonably request;

13

 

               (xii) make available for inspection by any holder of such Registrable Securities covered by
such registration statement, by any underwriter participating in any disposition to be effected
pursuant to such registration statement and by any attorney, accountant or other agent retained by
any such holder or any such underwriter, all pertinent financial and other records, pertinent
corporate documents and properties of the Corporation, and cause all of the Corporation’s officers,
directors and employees to supply all information reasonably requested by any such seller,
underwriter, attorney, accountant or agent in connection with such registration statement;

               (xiii) notify counsel for the holders of Registrable Securities included in such registration
statement and the managing underwriter or agent, immediately, and confirm the notice in writing
(a) when the registration statement, or any post-effective amendment to the registration statement,
shall have become effective, or any supplement to the prospectus or any amendment to the prospectus
shall have been filed, (b) of the receipt of any comments from the SEC, (c) of any request of the
SEC to amend the registration statement or amend or supplement the prospectus or for additional
information, and (d) of the issuance by the SEC of any stop order suspending the effectiveness of
the registration statement or of any order preventing or suspending the use of any prospectus, or
of the suspension of the qualification of the registration statement for offering or sale in any
jurisdiction, or of the institution or threatening of any proceedings for any of such purposes;

               (xiv) make every reasonable effort to prevent the issuance of any stop order suspending the
effectiveness of the registration statement or of any order preventing or suspending the use of any
prospectus and, if any such order is issued, to obtain the withdrawal of any such order at the
earliest possible moment;

               (xv) if requested by the managing underwriter or agent or any holder of Registrable Securities
covered by the registration statement, promptly incorporate in a prospectus supplement or
post-effective amendment such information as the managing underwriter or agent or such holder
reasonably requests to be included therein, including, with respect to the number of Registrable
Securities being sold by such holder to such underwriter or agent, the purchase price being paid
therefor by such underwriter or agent and with respect to any other terms of the underwritten
offering of the Registrable Securities to be sold in such offering; and make all required filings
of such prospectus supplement or post-effective amendment as soon as practicable after being
notified of the matters incorporated in such prospectus supplement or post-effective amendment;

               (xvi) cooperate with the holders of Registrable Securities covered by the registration
statement and the managing underwriter or agent, if any, to facilitate the timely preparation and
delivery of certificates (not bearing any restrictive legends) representing securities to be sold
under the registration statement, and enable

14

 

such securities to be in such denominations and
registered in such names as the managing underwriter or agent, if any, or such holders may request;

               (xvii) use its reasonable best efforts to obtain for delivery to the holders of Registrable
Securities being registered and to the underwriter or agent an opinion or opinions from counsel for
the Corporation in customary form and in form, substance and scope reasonably satisfactory to such
holders, underwriters or agents and their counsel; and

               (xviii) cooperate with each holder of Registrable Securities being registered and each
underwriter or agent participating in the disposition of such Registrable Securities and their
respective counsel in connection with any filings required to be made with the NYSE, NASDAQ or any
other stock exchange or automated quotation system and the NASD.

          (e) Information Supplied. The Corporation may require each holder of Registrable Securities
being registered to furnish the Corporation with such information regarding such holder and
pertinent to the disclosure requirements relating to the registration and the distribution of such
securities as the Corporation may from time to time reasonably request in writing.

          (f) Restrictions on Disposition. KRH agrees that, upon receipt of any notice from the
Corporation of the happening of any event of the kind described in Section 2(d)(vi), KRH will
forthwith discontinue disposition of Registrable Securities pursuant to the registration statement
covering such Registrable Securities until KRH’s receipt of the copies of the supplemented or
amended prospectus contemplated by Section 2(d)(vi), and, if so directed by the Corporation, KRH
will deliver to the Corporation (at the Corporation’s expense) all copies, other than permanent
file copies then in KRH’s possession, of the prospectus covering such Registrable Securities
current at the time of receipt of such notice. In the event the Corporation shall give any such
notice, the period mentioned in Section 2(a)(iv) shall be extended by the number of days during the
period from and including the date of the giving of such notice pursuant to Section 2(d)(vi) and to
and including the date when
each seller of Registrable Securities covered by such registration statement shall have received
the copies of the supplemented or amended prospectus contemplated by Section 2(d)(vi).

          (g)
Indemnification.

               (i) In the event of any registration of any securities of the Corporation under the Securities
Act pursuant to this Section 2, the Corporation shall indemnify and hold harmless the holder of any
Registrable Securities covered by such registration statement, each Affiliate of such holder and
their respective directors, officers, employees and stockholders or members or general and limited
partners (and

15

 

any director, officer, Affiliate, employee, stockholder and Controlling Person of any
of the foregoing), each Person who participates as an underwriter in the offering or sale of such
securities and each other Person, if any, who Controls such holder or any such underwriter within
the meaning of the Securities Act (collectively, the “Registration Indemnified Parties”),
against any and all losses, claims, damages or liabilities, joint or several, actions or
proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable
attorney’s fees and reasonable expenses of investigation) to which such Registration Indemnified
Party may become subject under the Securities Act (“Losses”), state law or otherwise,
insofar as such Losses arise out of, relate to or are based upon (a) any untrue statement or
alleged untrue statement of any material fact contained in any registration statement under which
such securities were registered under the Securities Act, any preliminary, final or summary
prospectus contained therein, or any amendment or supplement thereto, 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 (in the case of a prospectus, in light of the circumstances under which
they were made) not misleading, or (c) any violation or alleged violation by the Corporation of the
Securities Act, the Exchange Act, any state securities law, or any rule or regulation promulgated
under the Securities Act, the Exchange Act or any state securities law; provided, that the
Corporation shall not be liable to any Registration Indemnified Party in any such case to the
extent, but only to the extent, that any such Losses or expenses arise out of, relate to or are
based upon any untrue statement or alleged untrue statement or omission or alleged omission made in
such registration statement or amendment or supplement thereto or in any such preliminary, final or
summary prospectus in reliance upon and in conformity with written information furnished to the
Corporation by or on behalf of such holder specifically for use in the preparation thereof; and,
provided, further, that the Corporation will not be liable in any such case to the
extent, but only to the extent, that the foregoing indemnity with respect to any untrue statement
contained in or omitted from a registration statement or the prospectus shall not inure to the
benefit of any party (or any Person Controlling such party) who is obligated to deliver a
prospectus in transactions in a security as to which a registration statement has been filed
pursuant to
the Securities Act and from whom the Person asserting any such Losses purchased any of the
Registrable Securities to the extent that it is finally judicially determined that Losses resulted
from the fact that such party sold Registrable Securities to a Person to whom there was not sent or
given, at or prior to the written confirmation of such sale, a copy of the registration statement
or the prospectus, as amended or supplemented, and (x) the Corporation shall have previously and
timely furnished sufficient copies of the registration statement or prospectus, as so amended or
supplemented if required under the Securities Act, to such party in accordance with this Agreement
and (y) the registration statement or prospectus, as so amended or supplemented, would have
corrected such untrue statement or omission of a material fact. Such indemnity shall remain in
full force and effect regardless of any investigation made by or on behalf of any Registration
Indemnified Party and shall survive the Transfer of securities by any holder.

16

 

               (ii) The Corporation may require, as a condition to including any Registrable Securities in
any registration statement filed in accordance with Sections 2(a), 2(b) or 2(c) herein, that it
shall have received an undertaking reasonably satisfactory to it from the selling holder of such
Registrable Securities or any underwriter to indemnify and hold harmless (in the same manner and to
the same extent as set forth in Section 2(g)(i)) the Corporation and all other selling holders or
any underwriter, as the case may be, with respect to any untrue statement or alleged untrue
statement in or omission or alleged omission from such registration statement, any preliminary,
final or summary prospectus contained therein, or any amendment or supplement thereto, if such
untrue statement or alleged untrue statement or omission or alleged omission was made in reliance
upon and in conformity with written information furnished to the Corporation by or on behalf of
such selling holder specifically for inclusion in such registration statement, preliminary, final
or summary prospectus or amendment or supplement, or a document incorporated by reference into any
of the foregoing. Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of the Corporation or any of the selling holders, or any of
their respective Affiliates, directors, officers or Controlling Persons and shall survive the
Transfer of securities by any holder. In no event shall the liability of any selling holder of
Registrable Securities hereunder be greater in amount than the dollar amount of the net proceeds
(before taxes) received by such holder upon the sale of the Registrable Securities giving rise to
such indemnification obligation.

               (iii) Promptly after receipt by a Registration Indemnified Party hereunder of written notice
of the commencement of any action or proceeding with respect to which a claim for indemnification
may be made pursuant to this Section 2(g), such Registration Indemnified Party will, if a claim in
respect thereof is to be made against the Corporation, give written notice to the Corporation of
the commencement of such action or proceeding; provided, however, that the failure
of the Registration Indemnified Party to give notice as provided herein shall not relieve the
Corporation of its obligations under this Section 2(g), except to the extent that the Corporation
is materially prejudiced by such failure to give notice. In case any such action or proceeding
is brought against a Registration Indemnified Party, unless in such Registration
Indemnified
Party’s reasonable judgment (after consultation with legal counsel) a bona fide conflict of
interest between such Registration Indemnified Party and the Corporation may exist in respect of
such action or proceeding, the Corporation will be entitled to participate in and to assume the
defense thereof (at its expense) with counsel reasonably satisfactory to such Registration
Indemnified Party, and after notice from the Corporation to such Registration Indemnified Party of
its election so to assume the defense thereof, the Corporation will not be liable to such
Registration Indemnified Party for any legal or other expenses subsequently incurred by the
Registration Indemnified Party in connection with the defense thereof other than reasonable costs
of investigation; provided, however, in the event the Corporation declines or fails
to assume the defense of the action or proceeding or to employ counsel reasonably satisfactory to
the Registration

17

 

Indemnified Party, in either case within a 30-day period, or if a court of
competent jurisdiction determines that the Corporation is not vigorously defending such action or
proceeding, or if there is a bona fide conflict of interest between the Corporation and the
Registration Indemnified Party, then such Registration Indemnified Party may employ counsel to
represent or defend it in any such action or proceeding and the Corporation shall pay the
reasonable fees and disbursements of such counsel or other representative as incurred;
provided, further, however, that the Corporation shall not be required to
pay the fees and disbursements of more than one counsel for all Registration Indemnified Parties in
any jurisdiction in any single action or proceeding. The Corporation will not settle any such
action or proceeding or consent to the entry of any judgment without the prior written consent of
the Registration Indemnified Party, unless such settlement or judgment (a) includes as an
unconditional term thereof the giving by the claimant or plaintiff of a release to such
Registration Indemnified Party from all liability in respect of such action or proceeding and
(b) does not involve the imposition of equitable remedies or the imposition of any obligations on
such Registration Indemnified Party and does not otherwise adversely affect such Registration
Indemnified Party, other than as a result of the imposition of financial obligations for which such
Registration Indemnified Party will be indemnified hereunder. No Registration Indemnified Party
will settle any such action or proceeding or consent to the entry of any judgment without the prior
written consent of the Corporation (such consent not to be unreasonably withheld).

               (iv) (1) If the indemnification provided for in this Section 2(g) from the Corporation is
unavailable to a Registration Indemnified Party hereunder in respect of any Losses or expenses
referred to herein, then the Corporation, in lieu of indemnifying such Registration Indemnified
Party, shall contribute to the amount paid or payable by such Registration Indemnified Party as a
result of such Losses or expenses in such proportion as is appropriate to reflect the relative
fault of the Corporation and Registration Indemnified Party in connection with the actions or
proceedings which resulted in such Losses or expenses, as well as any other relevant equitable
considerations. The relative fault of the Corporation and Registration
Indemnified Party shall be determined by reference to, among other things, whether any action
or proceeding in question, including any untrue or alleged untrue statement of a material fact or
omission or alleged omission to state a material fact, has been made by, or relates to information
supplied by, the Corporation or Registration Indemnified Party, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such action or proceeding.
The amount paid or payable by a party under this Section 2(g)(iv) as a result of the Losses and
expenses referred to above shall be deemed to include any legal or other fees or expenses
reasonably incurred by such party in connection with any action or proceeding.

                    (2) The parties hereto agree that it would not be just and equitable if contribution pursuant
to this Section 2(g)(iv) were determined by pro rata allocation or by any other method of
allocation which does not take account of the

18

 

equitable considerations referred to in Section
2(g)(iv)(1). 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
similar fraudulent misrepresentation.

               (v) Indemnification similar to that specified in this Section 2(g) (with appropriate
modifications) shall be given by the Corporation with respect to any required registration or other
qualification of securities under any law or with any Governmental Authority other than as required
by the Securities Act.

               (vi) The obligations of the parties under this Section 2(g) shall be in addition to any
liability which any party may otherwise have to any other party and shall survive until the
expiration of the applicable statutes of limitations (including any waivers or extensions thereof)
with respect to any such registrations made hereunder.

          (h) Required Reports. The Corporation covenants that it will timely file the reports required
to be filed by it under the Securities Act and the Exchange Act, and it will take such further
action as KRH may reasonably request, all to the extent required from time to time to enable KRH to
sell Registrable Securities without registration under the Securities Act within the limitation of
the exemptions provided by (a) Rule 144, or (b) any similar rule or regulation hereafter adopted by
the SEC. Upon the request of KRH, the Corporation will deliver to KRH a written statement as to
whether it has complied with such requirements.

          (i) Holdback Agreement. If any registration under Sections 2(a), 2(b), or 2(c) hereof or any
sale of securities in connection with a registration under Section 2(a) hereof shall be in
connection with an underwritten public offering, each holder of Registrable Securities included in
such registration agrees not to effect any public sale or distribution, including any sale pursuant to
Rule 144, of any Equity Interests of the Corporation (in each case, other than as part of such
underwritten public offering), within 30 days before, or 90 days (or such lesser period as the
managing underwriters may permit or such longer periods as required by applicable law, provided
that in any such case KRH is similarly so released or subject to a longer period pro rata based
upon the relative number of Registrable Securities owned at such time) after, the effective date of
any such registration pursuant to Sections 2(a), 2(b) or 2(c) (except as part of any such
registration or sale), and the Corporation hereby also so agrees and agrees to cause each other
holder of Shares or other Equity Interests purchased from the Corporation (at any time other than
in a public offering) to so agree.

          (j) Termination of Rights, Except for indemnification rights provided in Section 2(g), which
shall be governed in accordance with Section 2(g)(vi), the rights granted to KRH in this Section 2
shall terminate and forthwith become null and void in

19

 

full on the earliest date on which KRH and
its respective Affiliates cease to beneficially own any Shares or other Equity Interests.

          (k) No Inconsistent Agreement. The Corporation shall not enter into, or cause or permit any of
its Subsidiaries to enter into, any agreement which conflicts with or limits or prohibits the
exercise of the rights granted to KRH in this Section 2.

     3. Miscellaneous.

          (a) Agreement to Cooperate; Further Assurances. In case at any time any further action is
necessary or desirable to carry out the purposes of this Agreement, the proper officers and
directors and KRH and its respective Affiliates shall execute such further documents and shall take
such further action as shall be necessary or desirable to carry out the purposes of this Agreement,
in each case to the extent not inconsistent with applicable law.

          (b) Amendments. Except as otherwise expressly provided in this Agreement, amendments to this
Agreement shall require approval of the Corporation and KRH.

          (c) Injunctive Relief The Corporation and KRH acknowledge and agree that a violation of any of the terms of this
Agreement may cause KRH and the Corporation, as the case may be, irreparable injury for which an
adequate remedy at law is not available. Accordingly, it is agreed that KRH and the Corporation
will each be entitled to seek an injunction, restraining order or other equitable relief to prevent
breaches of the provisions of this Agreement and to enforce specifically the terms and provisions
hereof in any court of competent jurisdiction, in addition to any other remedy to which they may be
entitled at law or, equity. Nothing stated herein shall limit any other remedies provided under
this Agreement or available to the parties at law or in equity.

          (d) Successors, Assigns and Transferees. The provisions of this Agreement will be binding upon
and will inure to the benefit of the parties hereto and their respective successors and Permitted
Transferees, and nothing in this Agreement, express or implied, is intended to or shall confer upon
any other Person, including but not limited to any creditor of the Corporation or its Subsidiaries,
any right, benefit, or remedy of any nature by reason of this Agreement. An assignment of the
rights, interests or obligations hereunder, including but not limited to an assignment by operation
of law, shall be null and void unless a provision of this Agreement specifically provides otherwise
or the Corporation gives its prior written consent therefor.

          (e) Notices. Any written notice required or permitted to be delivered pursuant to this
Agreement shall be in writing and shall be deemed delivered: (a) upon

20

 

delivery if delivered in
person; (b) upon transmission if sent via telecopier, with electronic confirmation of receipt;
(c) one Business Day after deposit with a nationally recognized courier service, provided
that confirmation of such overnight delivery is received by the sender; and (d) upon transmission
if sent via e-mail, with a confirmation copy sent via telecopier on the same day with electronic
confirmation of receipt. Notices to the Corporation or to KRH shall be delivered to the
Corporation or KRH as set forth in Exhibit A, as it may be revised from time to time. Any
party may change its address for notices by giving written notice of the new address to the other
parties in accordance with this section, but any element of such party’s address that is not newly
provided in such notice shall be deemed not to have changed.

          (f) Integration. This Agreement contains the exclusive, entire and final understanding of the
parties with respect to the subject matter hereof. There are no agreements, representations,
warranties, covenants or undertakings with respect to the subject matter hereof other than those
expressly set forth herein. Except as expressly set forth herein, this Agreement
supersedes all other prior agreements, discussions, negotiations, communications and understandings
between the parties with respect to such subject matter hereof. No party has relied on any
statement, representation, warranty, or promise not expressly contained in this Agreement in
connection with this transaction.

          (g) Severability. If one or more of the provisions, paragraphs, words, clauses, phrases or
sentences contained herein, or the application thereof in any circumstances, is held invalid,
illegal or unenforceable in any respect for any reason, then such provision, paragraph, word,
clause, phrase or sentence shall be deemed restated to reflect the original intention of the
parties as nearly as possible in accordance with applicable law and the remainder of this
Agreement. The legality and enforceability of any such provision, paragraph, word, clause, phrase
or sentence in every other respect and of the remaining provisions, paragraphs, words, clauses,
phrases or sentences hereof will not be in any way impaired, it being intended that all
obligations, rights, powers and privileges of the Corporation and KRH will be enforceable to the
fullest extent permitted by law. Upon such determination of invalidity, illegality or
unenforceability, the Corporation and KRH shall negotiate in good faith to amend this Agreement to
effect the original intent of KRH.

          (h) Counterparts. This Agreement may be executed in one or more counterparts and by different
parties on separate counterparts, each of which will be deemed an original, but all of which will
constitute one and the same instrument. The parties agree that this Agreement shall be legally
binding upon the electronic transmission, including by facsimile or email, by each party of a
signed signature page hereof to the other party.

21

 

          (i) Governing Law; Submission to Jurisdiction.

               (i) This Agreement is to be construed in accordance with and governed by the internal laws of
the State of Delaware without giving effect to any choice of law rule that would cause the
application of the laws of any jurisdiction other than the internal laws of the State of Delaware
to the rights and duties of the parties.

               (ii) Each party hereto agrees that any legal action or other legal proceeding relating to this
Agreement or the enforcement of any provision of this Agreement shall be brought or otherwise
commenced exclusively in any state or federal court located in Delaware or in New York, New York.
Subject to the preceding sentence, each party thereto:

                    (1) expressly and irrevocably consents and submits to the jurisdiction of each state and
federal court located in New York, New York (and each appellate court located in the State of New
York) in connection with any such legal proceeding, including to enforce any settlement, order or
award;

                    (2) consents to service of process in any such proceeding in any manner permitted by the laws
of the State of New York, and agrees that service of process by registered or certified mail,
return receipt requested, at its address specified pursuant to Section 3(e) is reasonably
calculated to give actual notice;

                    (3) agrees that each state and federal court located in New York, New York shall be deemed to
be a convenient forum;

                    (4) waives and agrees not to assert (by way of motion, as a defense or otherwise), in any such
legal proceeding commenced in any state or federal court located in New York, New York, any claim
that such party is not subject personally to the jurisdiction of such court, that such legal
proceeding has been brought in an inconvenient forum, that the venue of such proceeding is improper
or that this Agreement or the subject matter hereof or thereof may not be enforced in or by such
court; and

                    (5) agrees to the entry of an order to enforce any resolution, settlement, order or award made
pursuant to this Section 3(i) by the state and federal courts located in New York, New York and in
connection therewith hereby waives, and agrees not to assert by way of motion, as a defense, or
otherwise, any claim that such resolution, settlement, order or award is inconsistent with or
violative of the laws or public policy of the laws of the State of New York or any other
jurisdiction.

               (iii) In the event of any action or other proceeding relating to this Agreement or the
enforcement of any provision of this Agreement, the prevailing party (as determined by the court)
shall be entitled to payment by the non-prevailing

22

 

party of all costs and expenses (including
reasonable attorneys’ fees) incurred by the prevailing party, including any costs and expenses
incurred in connection with any challenge to the jurisdiction or the convenience or propriety of
venue of proceedings before any state or federal court located in New York, New York.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]

23

 

IN WITNESS WHEREOF, each of the undersigned has executed this Agreement or caused this Agreement to
be executed on its behalf as of the date first written above.

	 	 	 	 	 
	 	RHI ENTERTAINMENT, INC.

 	 
	 	By:  	/s/ Henry S. Hoberman
 	 
	 	 	Name:  	Henry S. Hoberman 	 
	 	 	Title:  	Executive Vice President 

General Counsel & Secretary	 
	 
	 	KRH INVESTMENTS LLC

 	 
	 	By:  	/s/ Henry S. Hoberman
 	 
	 	 	Name:  	Henry S. Hoberman 	 
	 	 	Title:  	Executive Vice President 

General Counsel & Secretary	 
	 

Signature Page — Registration Rights Agreement

 

 

Exhibit A

Members

	 	 	 
	Corporation:	 	KRH:
	RHI Entertainment, Inc.

	 	KRH Investments LLC
	1325 Avenue of the Americas,
21st Floor

	 	c/o Kelso & Company
	New York, New York 10019

	 	320 Park Avenue, 24th Floor
	Attention:  General Counsel

	 	New York, New York 10022
	 

	 	Attention: General Counsel
	 
	 	 
	Fax: (212) 977-3917

	 	Fax: (212) 223-2379
	 
	 	 
	with a copy to:

	 	with a copy to:
	Raymond Y. Lin, Esq.

	 	Raymond Y. Lin, Esq.
	Latham & Watkins LLP

	 	Latham & Watkins LLP
	885 Third Avenue

	 	885 Third Avenue
	New York, New York 10022

	 	New York, New York 10022
	(212) 906-1200

	 	(212) 906-1200
	Fax: 212-751-4864

	 	Fax: 212-751-4864

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