SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS
This Settlement Agreement and Mutual Release of Claims (“Settlement Agreement”) is made as
of March 18, 2008, by and between Jeffrey Fink (“Fink”), on the one hand, and Image Entertainment,
Inc. (“Image”), on the other hand. Fink and Image sometimes collectively will be referred to as the
This Settlement Agreement is based upon the following facts:
A. On or about January 22, 2007, Image and Fink entered into an Employment Agreement
pursuant to which Image hired Fink as its Chief Marketing Officer (the “Employment Agreement”).
B. Fink worked for Image from on or about January 22, 2007, through June 28, 2007 (the
“Employment”), when Image terminated Fink (the “Termination”).
C. Image and Fink dispute whether Image’s termination of Fink was “for cause” within the
meaning of the Employment Agreement.
D. Fink contends that Image owes him additional monies under and pursuant to the terms of the
Employment Agreement which claims are the subject of a Petition for Binding Arbitration filed by
Fink with Alternative Dispute Resolution Services, entitled Jeffrey Fink v. Image Entertainment ,
ADRS Case No. 07-5613-JZ (the “Arbitration”). Image has responded to the Petition and denied all
material claims set forth therein.
E. It is the desire of the Parties hereto to settle all claims which exist between them arising out of
the Employment Agreement, the Employment, the Termination, the Arbitration and any other matter.
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NOW, THEREFORE in consideration of the mutual promises and conditions contained herein,
and for valuable consideration, the adequacy and sufficiency of which are hereby acknowledged, the
Parties hereto agree as follows:
1. Settlement . In consideration for signing this Agreement and in exchange for the promises,
covenants and waivers set forth herein, Respondents will pay Fink the total amount of Three Hundred
and Thirty Five Thousand Dollars ($335,000.00) (hereinafter, the “Settlement Paymen