THIS EMPLOYMENT AGREEMENT (“ Agreement ”) is made and entered into as of April 1, 2004
(the “ Effective Date ”), by and between IMAGE ENTERTAINMENT INC., a California corporation (“ Image
”), and DAVID BORSHELL, an individual (“ Executive ”).
WHEREAS, the Board of Directors of Image has determined that because of Executive’s substantial
experience with respect to sales and marketing, management and other aspects of the business of Image,
Executive’s business relationships in connection with the business of Image, and Executive’s past leadership and
familiarity with the clientele served by Image, it is in the best interests of Image to secure the services of Executive
and to provide Executive with the compensation and benefits set forth herein; and
WHEREAS, Executive desires to render to Image, on an exclusive basis, Executive’s professional
services with respect to Executive’s experience and abilities, and Image desires to secure, on an exclusive basis,
Executive’s services, on the terms and conditions set forth herein;
NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the
parties hereto agree as follows:
1. TERM OF AGREEMENT.
Except as otherwise expressly set forth herein, this Agreement shall remain in full force and effect for the
period commencing as of the date hereof and ending on March 31, 2007 (the “ Term ”) subject to
exercise of the Renewal Option Periods set forth in Section 7 herein. The capitalized word “Term” as
used in other paragraphs of this Agreement (except Paragraph 3(a)) shall include any extensions pursuant
to the preceding sentence.
Subject to the terms and conditions contained herein, Image hereby engages the services of Executive
(the “ Services ”) and Executive hereby accepts such engagement and agrees to render Executive’s
Services to Image for the Term. Executive shall report directly to th