This EMPLOYMENT AGREEMENT is dated as of April 14, 2010 (the “ Effective Date ”), and
is made among Image Entertainment, Inc., a Delaware corporation (the “ Company ”), and John Avagliano (“
WHEREAS, the Company and Executive desire to enter into this Employment Agreement (the “
Agreement ”) upon the terms and conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the premises and the mutual agreements contained
herein, the parties hereby agree as follows:
1. Employment Period . The term of Executive’s employment hereunder shall commence
effective as of the Effective Date and, unless terminated pursuant to Section 4 hereof, shall continue through the
third anniversary of the Effective Date (such period referred to herein as the “ Initial Term ”); provided that the
term of employment hereunder shall be automatically extended for an additional one-year period (each, an “
Extension Period ”), beginning upon the expiration of the Initial Term, or upon expiration of any Extension Period,
unless Executive shall have given written notice of non-extension to the Company at least 90 days prior to the
then-applicable expiration date or the Company shall have given written notice of non-extension to Executive
prior to the then-applicable expiration date (the Initial Term and any Extension Period shall be referred to herein
as the “ Employment Period ”); provided that if the Company gives less than twelve months’ notice of non-
extension, the term of employment hereunder shall automatically be extended until the twelve-month anniversary
of the giving of such notice.
2. Employment Duties .
(a) During the Employment Period, Executive shall serve as Chief Operating Officer and
Chief Financial Officer of the Company. In such position, Executive shall have such duties, responsibilities and