THIS AGREEMENT (the “Agreement”) is made this day of 2004
(1) PETER M. HOFFMAN (“Employee”); and
(2) SEVEN ARTS PICTURES PLC an English public limited company (the “Company”) which for
purposes of this Agreement shall mean the Company and its Affiliates (as defined below) .
(A) Employee’s Services (as defined below) are being furnished to the Company in conjunction with an
Asset Transfer Agreement of even date under which Seven Arts Pictures, Inc and Seven Arts Pictures
Limited (“Transferors”) have transferring certain assets to the Company.
(B) In order to permit the Company to proceed with the transactions contemplated by the Asset Transfer
Agreement, the parties hereto desire to enter into this Agreement.
NOW, THEREFORE, IT IS HEREBY AGREED as follows:
1.1. Employment. During the Term (as defined below), the Company engages Employee to perform such
services as the Company may from time to time reasonably request consistent with Employee’s stature and
experience in the motion picture industry, at such locations as the Company shall reasonably request consistent
with its reasonable business needs (the “Services”). Further, the Services of Employee shall include but not be
limited to management and supervision of (i) the development, production and distribution of motion pictures
(“Seven Arts Pictures”) produced or acquired in whole or in part by the Company, (ii) leasing and licensing of
Seven Arts Pictures to third parties, and (iii) other principal business activities of the Company. For purposes of
this Agreement, “Affiliates” shall mean, as to any person, any other person controlled by, controlling or under
common control with, directly or indirectly, such person. “Person” shall mean any individual, corporation,
partnership, limited liability company, joint venture, association, joint-stock company, trust, unincorporated