Document:

Ex-10.2 Transition Services Agreement dated August

Exhibit 10.2

TRANSITION SERVICES AGREEMENT

     THIS TRANSITION SERVICES AGREEMENT is entered into as of August 21, 2008 (this
“Agreement”), between Hollywood Media Corp., a Florida corporation (the “Service
Provider”), Hollywood.com, LLC, a Delaware limited liability company (‘Hollywood.com), Totally
Hollywood TV, LLC, a Delaware limited liability company (“Totally Hollywood” and,
collectively with Hollywood.com, the “Service Receiver”).

Recitals

          A. Pursuant to a Purchase Agreement dated August 21, 2008 (the “Purchase Agreement”)
between Service Provider and R&S Investments, LLC, a Delaware limited liability company
(“Purchaser”), Purchaser purchased the Service Receiver.

          B. To provide for an efficient and orderly transition of ownership and management of the
Service Receiver from the Service Provider to Purchaser, the parties hereto deem it to be
appropriate and in the best interests of the Service Provider and the Service Receiver that the
Service Provider provide certain services to the Service Receiver on the terms and conditions set
forth herein.

          C. This Agreement is the Transition Services Agreement referred to in the Purchase Agreement.

Agreement

     NOW, THEREFORE, in consideration of the foregoing premises and the respective representations,
warranties, covenants and agreements contained herein, and for other good and valuable
consideration, the sufficiency of which is hereby acknowledged, the parties hereto hereby agree as
follows:

Section 1. Definitions

     (a) In this Agreement, the following terms shall have the following meanings.

     “Commencement Date” means the date on which the Service Provider shall commence
the provision of the Services which shall be the date hereof.

     “Services” means the services set forth on Schedule A hereto to be
provided by the Service Provider to the Service Receiver.

     “Term” shall have the meaning given in Section 5 hereof.

     (b) All capitalized terms used herein but not otherwise defined shall have the meanings given
them in the Purchase Agreement.

Section 2. Services

     (a) Subject to the terms and conditions of this Agreement, the Service Provider shall provide
to the Service Receiver throughout the Term accounting, billing, ad sales support,
payroll processing, legal, and information technology support services (the
“Services”) to the extent requested by Service Receiver.

 

 

     (b) Except as otherwise agreed in writing by the parties hereto, the Services shall be
provided in substantially the same manner, at substantially the same levels and on substantially
the same time schedules as such Services were undertaken by the Service Provider prior to the
Commencement Date.

Section 3. Payment

     (a) In consideration for the provision of Services by the Service Provider, the Service
Receiver shall pay to the Service Provider an amount equal to (i) the actual out of pocket costs
relating to the provision of the Services, (ii) a pro rata portion of the incremental expenses
directly relating to the provision of Services by any of Service Provider’s employees who assist in
providing such Services (such expenses include, but are not limited to salary, including fringe
benefits), with such pro rata portion determined based upon the time spent in connection with
providing Services, (iii) with respect to servers (and other equipment, if any) utilized by the
Companies that are located on any third party premises, the applicable rent related to the use of
such premises for the housing of such servers (and such other equipment), and (iv) with respect to
the inclusion of Service Receiver as additional insured on Service Provider’s health, workers’
compensation, media liability, and property and casualty insurance policies, the allocable portion
of the costs to Service Receiver under such policies.

     (b) Within twenty-one (21) days following the last day of each calendar month, the Service
Provider shall provide to the Service Receiver an invoice for the preceding month’s Services, which
shall include (i) the Services provided by the Service Provider to the Service Receiver for such
month and (ii) the charges for such Services (as determined in accordance with this Agreement).
The amount stated in such invoices shall be paid by the Service Receiver in full within ten (10)
business days of the invoices being issued to the account designated by the Service Provider in
such invoice, unless disputed by the Service Receiver.

Section 4. Dispute Resolution

     Any controversy or claim arising out of, or relating to this Agreement, or the breach thereof,
shall be settled by arbitration as governed by and interpreted under the laws of the State of
Florida, administered by the American Arbitration Association in accordance with it’s Commercial
Arbitration Rules, determined by one arbitrator. The situs of said arbitration shall be Palm Beach
County, Florida. Judgment on the award rendered by the arbitrator may be entered in any court
having jurisdiction thereof.

Section 5. Term and Termination and Effects of Termination. This Agreement shall become effective
on the Commencement Date and, except as otherwise specifically provided in attached Schedule
A, shall terminate on the date that is fifteen (15) months from the date hereof, but may be
terminated earlier (such time period is hereinafter referred to as the “Term”):

     (a) Upon the mutual written agreement of the parties; and

     (b) By either party by written notice to the other party if the other party commits a material
breach of any of the terms or conditions of this Agreement and, if such breach may be
cured, the breaching party fails to remedy the breach within thirty (30) days of receiving
such notice.

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     (c) By Service Receiver, with respect to this entire Agreement or with respect to one or more
of the Services provided by Service Provider under this Agreement, at any time upon ten (10) days
written notice to the Service Provider.

Upon termination or expiration of the Term, the Service Receiver shall pay to the Service Provider
all monies due to the Service Provider in respect of Services provided prior to such termination or
expiration, together with the balance of all costs payable by the Service Receiver to the Service
Provider.

Section 6. Indemnification

     (a) The Service Receiver hereby agrees to indemnify and hold the Service Provider harmless
from and against any and all claims, actions, suits, losses, demands, costs and expenses (including
reasonable attorneys’ fees) (collectively, “Losses”) of every kind, nature, or description
(i) brought by a third party in connection with the provision of Services hereunder, except to the
extent that such Losses arise from the willful misconduct or gross negligence of the Service
Provider, and (ii) arising out of or resulting from any breach of any covenant or agreement of the
Service Receiver in this Agreement.

     (b) The Service Provider hereby agrees to indemnify and hold the Service Receiver harmless
from and against any and all Losses of every kind, nature, or description (i) brought by a third
party in connection with the provision of Services hereunder to the extent that such Losses arise
from the willful misconduct or gross negligence of the Service Provider, and (ii) arising out of or
resulting from any breach of any covenant or agreement of the Service Provider in this Agreement.

Section 7. Notices

     Any notice, request, demand, waiver, consent, approval or other communication which is
required or permitted hereunder shall be in writing and shall be deemed given: (a) on the date
established by the sender as having been delivered personally; (b) on the date delivered by a
private courier as established by the sender by evidence obtained from the courier; (c) on the date
sent by facsimile, with confirmation of transmission, if sent during normal business hours of the
recipient, if not, then on the next business day; or (d) on the fifth Business Day after the date
mailed, by certified or registered mail, return receipt requested, postage prepaid. Such
communications, to be valid, must be addressed as follows:

			
	                         	 	If to the Service Receiver, to:

Hollywood.com, LLC

c/o Mitchell Rubenstein

2255 Glades Road, Suite 221A

Boca Raton, Florida 33431

Facsimile: (561) 998-2974

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	                         	 	With a required copy to:

Holland & Knight LLP

701 Brickell Avenue, Suite 3000

Miami, Florida 33131

Attention: Rodney H. Bell, Esq.

Facsimile Number: (305) 789-7799

If to the Service Provider, to:

Hollywood Media Corp.

2255 Glades Road, Suite 221A

Boca Raton, Florida 33431

Attention: Melissa H. Orlen, Esq.

Facsimile: (561) 998-2974

With a required copy to:

Foley & Lardner LLP

100 North Tampa Street, Suite 2700

Tampa, Florida 33602

Attention: Steven Vazquez, Esq.

Facsimile: (813) 221-4210

or to such other address or to the attention of such person or persons as the recipient party has
specified by prior written notice to the sending party (or in the case of counsel, to such other
readily ascertainable business address as such counsel may hereafter maintain). If more than one
method for sending notice as set forth above is used, the earliest notice date established as set
forth above shall control.

Section 8. Miscellaneous

     (a) Severability. Any provision of this Agreement which is invalid or unenforceable in any
jurisdiction shall be ineffective to the extent of such invalidity or unenforceability without
invalidating or rendering unenforceable the remaining provisions hereof, and any such invalidity or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction.

     (b) Counterparts. This Agreement may be executed in counterparts, and any party hereto may
execute any such counterpart, each of which when executed and delivered shall be deemed to be an
original and all of which counterparts taken together shall constitute but one and the same
instrument. This Agreement shall become effective when each party hereto shall have received a
counterpart hereof signed by the other party hereto. The parties agree that the delivery of this
Agreement may be effected by means of an exchange of facsimile signatures.

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     (c) Entire Agreement; In Writing. This Agreement (including, without limitation, Schedule
A hereto) sets forth the entire understanding of the parties hereto with respect to the
transactions contemplated by this Agreement. Any and all previous agreements and
understandings between or among the parties regarding the subject matter hereof, whether
written or oral, are superseded by this Agreement. Any provision of this Agreement may be amended
or waived if, and only if, such amendment or waiver is in writing and is signed, in the case of an
amendment, by each party to this Agreement, or in the case of a waiver, by the party against whom
the waiver is to be effective.

     (d) Governing Law. This Agreement shall be governed by and interpreted and enforced in
accordance with the Laws of the State of Florida, without giving effect to any choice of Law or
conflict of Laws rules or provisions (whether of the State of Florida or any other jurisdiction)
that would cause the application of the Laws of any jurisdiction other than the State of Florida.

     (e) Assignment. This Agreement may not be assigned by either party hereto without the prior
written consent of the other party; provided that: (i) without such consent, the Service
Receiver may transfer or assign this Agreement, in whole or in part or from time to time, to one or
more of its Affiliates; and (ii) without such consent, either party may assign this Agreement to
any person that succeeds to substantially all of the business of such party.

     (f) Waiver. No failure or delay by any party in exercising any right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right, power or privilege. To the
maximum extent permitted by Law: (i) no waiver that may be given by a party shall be applicable
except in the specific instance for which it was given; and (ii) no notice to or demand on one
party shall be deemed to be a waiver of any obligation of such party or the right of the party
giving such notice or demand to take further action without notice or demand.

     (g) Benefit. No provision of this Agreement is intended to confer upon any Person other than
the parties hereto and their respective executors, heirs, personal representatives, successors and
assigns any rights or remedies hereunder.

     (h) Relationship of the Parties. The parties hereto are independent contractors and neither
party is an employee, partner or joint venturer of the other. Under no circumstances shall any of
the employees of a party hereto be deemed to be employees of the other party for any purpose.
Neither party shall have the right to bind the other to any agreement with a third party nor to
represent itself as a partner or joint venturer of the other

     (i) Severability. Any provision of this Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof in that jurisdiction or
affecting the validity or enforceability of such provision in any other jurisdiction.

[Signature page follows]

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the date first above written.

	 	 	 	 	 
	 	HOLLYWOOD.COM, LLC

 	 
	 	By:  	/s/ Mitchell Rubenstein
 	 
	 	 	Name:  	Mitchell Rubenstein 	 
	 	 	Title:  	Chief Executive Officer 	 
	 
	 	HOLLYWOOD MEDIA CORP.

 	 
	 	By:  	/s/ Robert D. Epstein
 	 
	 	 	Name:  	Robert D. Epstein 	 
	 	 	Title:  	Chairman, Special Committee of Directors, on
behalf of Special Committee, as Authorized
Representative of Hollywood Media Corp. 	 
	 
	 	TOTALLY HOLLYWOOD TV, LLC

 	 
	 	By:  	/s/ Mitchel Rubenstein
 	 
	 	 	Name:  	Mitchell Rubenstein 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

6Ex-10.3 Extension and Amendment Agreement dated as

Exhibit 10.3

EXTENSION AND AMENDMENT AGREEMENT

     THIS EXTENSION AND AMENDMENT AGREEMENT (the “Agreement”) is entered into as of the
21st day of August, 2008 (the “Effective Date”) by and between Hollywood Media Corp., a
Florida corporation (the “Company”) and Mitchell Rubenstein (the “Executive”).

WITNESSETH:

     WHEREAS, the Executive has served as Chief Executive Officer of the Company since its
inception, and presently serves in this capacity pursuant to a written Employment Agreement with
the Company entered into as of July 1, 1993, as amended by that certain Extension and Amendment
Agreement entered into as of July 1, 1998 between the Company and the Executive, by that certain
Extension and Amendment Agreement entered into as of July 1, 2003 between the Company and the
Executive, by that certain Extension and Amendment Agreement entered into as of May 31, 2004
between the Company and the Executive (collectively, the “Current Employment Agreement”);

     WHEREAS, absent termination by either party by notice 30 days prior to the end of the Term of
the Current Employment Agreement (which Term is, absent extension or earlier termination, scheduled
to end on December 31, 2008), the Current Employment Agreement shall automatically renew for an
additional year through December 31, 2009;

     WHEREAS, the Executive possesses intimate knowledge of the business and affairs of the
Company, its policies, methods and personnel;

     WHEREAS, the Board of Directors (the “Board”) of the Company recognizes that the
Executive’s contribution to the growth and success of the Company has been and will continue to be
substantial and desires to assure the Company of the Executive’s continued employment in an
executive capacity and to compensate Executive therefore;

     WHEREAS, the Board has determined that entering into this Agreement to renew the Current
Employment Agreement will reinforce and encourage the Executive’s continued attention and
dedication to the Company; and

     WHEREAS, the Executive is willing to make her services available to the Company on the terms
and conditions hereinafter set forth.

     NOW, THEREFORE, for and in consideration of this Agreement and the Current Employment
Agreement, and the mutual benefits to be derived hereby and thereby, and the premises,
representations, warranties, covenants and other good and valuable consideration provided for
herein and therein, the receipt and sufficiency of which are hereby acknowledged, the parties,
intending to be legally bound, agree as follows, provided, however, that in the event of any
inconsistency between the Current Employment Agreement and this Agreement, this Agreement shall
take precedence (Unless otherwise expressly defined herein, all capitalized terms used herein shall
have the meanings set forth in the Current Employment Agreement):

 

 

          1. Confirmation of the Executive’s Duties. The Executive hereby confirms her duties
and commitments set forth in Section 1.2 of the Current Agreement.

          2. Renewal. This Agreement serves to confirm the agreement of the Company and the
Executive to waive any termination notice right set forth in the Current Employment Agreement with
respect to the Term of the Current Employment Agreement as scheduled to end on December 31, 2008,
and to have the Current
Employment Agreement automatically renew through December 31, 2009 in accordance with the
auto-renew of the Current Agreement, and thereafter automatically renew upon the terms of the
Current Agreement.

          3. Deletion of Section 2.4 Earn-Out Provision. Section 2.4 — Earn-Out Provision of
the Current Employment Agreement is hereby deleted in its entirety.

          4. Survival. Other than as specifically set forth above, no provision of this
Agreement shall be deemed to enlarge, alter or amend the terms or provisions of the Current
Employment Agreement. Except as provided in this Agreement, all other provisions, terms and
benefits set forth in the Current Employment Agreement shall remain in full force and effect.

          5. Counterparts. This Agreement may be executed in counterparts, each of which, when
executed, shall be deemed to be an original and all of which together shall be deemed to be one and
the same instrument.

     IN WITNESS WHEREOF, the parties hereto have or have caused their respective duly authorized
representatives to execute this Agreement as of the Effective Date.

	 	 	 	 	 
	 	COMPANY:

HOLLYWOOD MEDIA CORP.,

a Florida corporation

 	 
	 	By:  	/s/ Laurie Silvers
 	 
	 	 	Laurie Silvers

President 	 
	 	 	 	 
	 
	 	EXECUTIVE:

 	 
	 	/s/ Mitchell Rubenstein
 	 
	 	Mitchell Rubenstein

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