##### 



Exhibit 10.9
 
 EMAK WORLDWIDE, INC.,
EQUITY MARKETING, INC.,
SCI PROMOTION, INC.,
POP ROCKET, INC.
LOGISTIX, INC.,
UPSHOT, INC.,
EMAK WORLDWIDE SERVICE CORP.,
CORINTHIAN MARKETING, INC.,
JOHNSON GROSSFIELD, INC.,   EQUITY MARKETING HONG KONG, LTD.,
  LOAN AND SECURITY AGREEMENT
   CERTAIN FINANCIAL INSTITUTIONS,
   BANK OF AMERICA, N.A




---



##### 



TABLE OF CONTENTS
 PageSECTION 1. DEFINITIONS; RULES OF CONSTRUCTION
    
    
    11.1 Definitions
    
    
    11.2 Accounting Terms
    
    
    261.3 Certain Matters of Construction
    
    
    26SECTION 2. CREDIT FACILITIES
    
    
    272.1 Revolver Commitment
    
    
    272.2 Letter of Credit Facility
    
    
    28SECTION 3. INTEREST, FEES AND CHARGES
    
    
    303.1 Interest
    
    
    303.2 Fees
    
    
    313.3 Computation of Interest, Fees, Yield Protection
    
    
    323.4 Reimbursement Obligations
    
    
    323.5 Illegality
    
    
    333.6 Increased Costs
    
    
    333.7 Capital Adequacy
    
    
    343.8 Mitigation
    
    
    343.9 Funding Losses
    
    
    343.10 Maximum Interest
    
    
    34SECTION 4. LOAN ADMINISTRATION
    
    
    354.1 Manner of Borrowing and Funding Revolver Loans
    
    
    354.2 Defaulting Lender
    
    
    364.3 Number and Amount of LIBOR Loans; Determination of Rate
    
    
    364.4 Borrower Agent
    
    
    364.5 One Obligation
    
    
    374.6 Effect of Termination
    
    
    37SECTION 5. PAYMENTS
    
    
    375.1 General Payment Provisions
    
    
    375.2 Repayment of Revolver Loans
    
    
    375.3 Payment of Other Obligations
    
    
    385.4 Marshaling; Payments Set Aside
    
    
    385.5 Post-Default Allocation of Payments
    
    
    385.6 Application of Payments
    
    
    39
 -i-




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##### 



TABLE OF CONTENTS
 Page5.7 Loan Account; Account Stated
    
    
    395.8 Taxes
    
    
    395.9 Withholding Tax Exemption
    
    
    395.10 Nature and Extent of Each Borrowers Liability
    
    
    40SECTION 6. CONDITIONS PRECEDENT
    
    
    436.1 Conditions Precedent to Initial Loans
    
    
    436.2 Conditions Precedent to All Credit Extensions
    
    
    466.3 Limited Waiver of Conditions Precedent
    
    
    47SECTION 7. COLLATERAL
    
    
    477.1 Grant of Security Interest
    
    
    477.2 Lien on Deposit Accounts; Cash Collateral
    
    
    487.3 Real Estate Collateral
    
    
    487.4 Other Collateral
    
    
    487.5 No Assumption of Liability
    
    
    497.6 Further Assurances
    
    
    497.7 Foreign Subsidiary Stock
    
    
    49SECTION 8. COLLATERAL ADMINISTRATION
    
    
    498.1 Borrowing Base Certificates
    
    
    498.2 Administration of Accounts
    
    
    498.3 Administration of Inventory
    
    
    508.4 Administration of Equipment
    
    
    518.5 Administration of Deposit Accounts; Securities Accounts
    
    
    518.6 General Provisions
    
    
    518.7 Power of Attorney
    
    
    52SECTION 9. REPRESENTATIONS AND WARRANTIES
    
    
    539.1 General Representations and Warranties
    
    
    539.2 Matters Relating to Collateral
    
    
    589.3 Complete Disclosure
    
    
    59SECTION 10. COVENANTS AND CONTINUING AGREEMENTS
    
    
    5910.1 Affirmative Covenants
    
    
    5910.2 Negative Covenants
    
    
    6510.3 Financial Covenants
    
    
    70
 -ii-




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##### 



TABLE OF CONTENTS
 PageSECTION 11. EVENTS OF DEFAULT; REMEDIES ON DEFAULT
    
    
    7011.1 Events of Default
    
    
    7011.2 Remedies upon Default
    
    
    7211.3 License
    
    
    7211.4 Setoff
    
    
    7311.5 Remedies Cumulative; No Waiver
    
    
    73SECTION 12. AGENT
    
    
    7312.1 Appointment, Authority and Duties of Agent
    
    
    7312.2 Agreements Regarding Collateral and Field Examination Reports
    
    
    7412.3 Reliance By Agent
    
    
    7512.4 Action Upon Default
    
    
    7512.5 Ratable Sharing
    
    
    7512.6 Indemnification of Agent Indemnitees
    
    
    7512.7 Limitation on Responsibilities of Agent
    
    
    7612.8 Successor Agent and Co-Agents
    
    
    7612.9 Due Diligence and Non-Reliance
    
    
    7712.10 Replacement of Certain Lenders
    
    
    7712.11 Remittance of Payments and Collections
    
    
    7712.12 Agent in its Individual Capacity
    
    
    7812.13 Agent Titles
    
    
    7812.14 No Third Party Beneficiaries
    
    
    78SECTION 13. BENEFIT OF AGREEMENT; ASSIGNMENTS AND PARTICIPATIONS
    
    
    7813.1 Successors and Assigns
    
    
    7813.2 Participations
    
    
    7813.3 Assignments
    
    
    7913.4 Tax Treatment
    
    
    8013.5 Representation of Lenders
    
    
    80SECTION 14. MISCELLANEOUS
    
    
    8014.1 Consents, Amendments and Waivers
    
    
    8014.2 Indemnity
    
    
    8114.3 Notices and Communications
    
    
    8114.4 Performance of Borrowers Obligations
    
    
    81
 -iii-




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##### 



TABLE OF CONTENTS
 Page14.5 Credit Inquiries
    
    
    8214.6 Severability
    
    
    8214.7 Cumulative Effect; Conflict of Terms
    
    
    8214.8 Counterparts; Facsimile Signatures
    
    
    8214.9 Entire Agreement
    
    
    8214.10 Obligations of Lenders
    
    
    8214.11 Confidentiality
    
    
    8214.12 GOVERNING LAW
    
    
    8314.13 Consent to Forum; Arbitration
    
    
    8314.14 Waivers by Borrowers
    
    
    8414.15 Patriot Act Notice
    
    
    84
 -iv-




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##### 



LIST OF EXHIBITS AND SCHEDULES
 Exhibit A
    
    Revolver NoteExhibit B
    
    Assignment and AcceptanceExhibit C
    
    Assignment NoticeExhibit D
    
    Collateral Access AgreementExhibit E
    
    Domestic Pledge AgreementExhibit F
    
    Additional Borrower CounterpartExhibit G
    
    Non-Offset LetterExhibit H
    
    Imported Goods Agreement
 Schedule 1.1A
    
    Revolver Commitments of LendersSchedule 1.1B
    
    License AgreementsSchedule 1.1C
    
    EBITDASchedule 1.1D
    
    Specified Account DebtorsSchedule 2.2.1
    
    Existing Letters of CreditSchedule 7.3
    
    Real EstateSchedule 8.5
    
    Deposit Accounts and Securities AccountsSchedule 8.6.1
    
    Business LocationsSchedule 9.1.4
    
    Names and Capital StructureSchedule 9.1.5
    
    Former Names and CompaniesSchedule 9.1.8
    
    Draft Financial StatementsSchedule 9.1.12
    
    Patents, Trademarks, Copyrights and LicensesSchedule 9.1.15
    
    Environmental MattersSchedule 9.1.17
    
    Restrictive AgreementsSchedule 9.1.18
    
    LitigationSchedule 9.1.20
    
    Pension PlansSchedule 9.1.22
    
    Labor ContractsSchedule 9.2.3
    
    Third-Party FilingsSchedule 10.1.2
    
    Specified LiensSchedule 10.2.1
    
    Existing DebtSchedule 10.2.2
    
    Existing LiensSchedule 10.2.17
    
    Existing Affiliate Transactions
 -v-




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##### 



LOAN AND SECURITY AGREEMENT
 THIS LOAN AND SECURITY AGREEMENT EMAK WORLDWIDE,
INC., EMAK EQUITY MARKETING, INC. EMI SCI PROMOTION, INC. SCI POP ROCKET, INC. Pop Rocket LOGISTIX, INC. Logistix UPSHOT, INC. Upshot EMAK WORLDWIDE
SERVICE CORP. EMAK Worldwide CORINTHIAN MARKETING, INC. Corinthian JOHNSON GROSSFIELD, INC. Johnson EQUITY MARKETING HONG KONG, LTD. Equity
Marketing Section 10.1.9 Borrowers Borrower Lenders BANK OF AMERICA, N.A. Bank of
America Agent
 R E C I T A L S
  NOW, THEREFORE
 SECTION 1. DEFINITIONS; RULES OF CONSTRUCTION
 1.1 Definitions.
 AAA Section 14.13
 Account
 Account Debtor
 Accounts Formula Amount provided however
 Acquisition provided
 Adjusted LIBOR




---



##### 



Affiliate Control
 Agency of Record Agreement
 Agent Indemnitees
 Agent Professionals
 Agreement
 Allocable Amount Section 5.10.6
 Anti-Terrorism Laws
 Applicable Law
 Applicable Margin provided
 -2-




---



##### 



Approved Fund
 Asset Disposition
 Assignment and Acceptance Exhibit B
 Attorney Costs
 Availability
 Availability Block provided however
 -3-




---



##### 



Availability Reserve
 Bank of America
 Bank of America Indemnitees
 Bank Product
 Bank Product Debt
 Bank Product Reserve
 Bankruptcy Code
 Base Rate
 Base Rate Revolver Loan
 BK
 BK Agreements
 BK Group
 BK Services Agreements
 -4-




---



##### 



Section 10.2.21
 BK Supply Agreements Section 10.2.21
 Board of Governors
 Borrowed Money
 Borrower Agent Section 4.4
 Borrowers
 Borrowing
 Borrowing Base minus minus plus minus
 Borrowing Base Certificate
 Business Day
 Capital Adequacy Regulation
 Capital Expenditures
 -5-




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##### 



Capital Lease
 Cash Collateral
 Cash Collateral Account
 Cash Collateralize Cash
Collateralization
 Cash Equivalents
 Cash Management Services
 CERCLA et seq
 -6-




---



##### 



Certificate of Designation
 Change of Control
 Section 10.2.9
     -7-




---



##### 



Chattel Paper
 Claims
 Closing Date Section 6.1
 Collateral Section 7.1
 Collateral Access Agreement Schedule 7.3 Exhibit D
 Commercial Tort Claim
 Commitment Fee Rate Section 3.2.1
 Commitment Termination Date Section 2.1.4 Section 11.2
 Commitment Utilization Percentage
 Common Stock
 Common Warrants
 Compliance Certificate Sections 10.2.3 10.3
 -8-




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##### 



Conforming Letter of Credit
 Contingent Obligation primary obligations primary obligor
 Contractual Obligation
 Corinthian
 Crown
 CWA et seq
 Debt
 Default
 Default Rate
 Deposit Account
 Deposit Account Control Agreements
 Dilution Percent
 -9-




---



##### 



divided by
 Disney
 Document
 Dollars
 Domestic Pledge Agreement Exhibit
E
 Domestic Subsidiary
 Dominion Account
 Draft Financial Statements Schedule 9.1.8
 EBITDA Schedule 1.1C Schedule 1.1C
 Eligible Account Applicable Concentration
Percentage provided BK Group provided further except
 -10-




---



##### 



Schedule 1.1D
 -11-




---



##### 



Eligible Assignee
 Eligible Inventory
 EMAK
 EMI
 Enforcement Action
 Environmental Agreement
 Environmental Laws
 Environmental Notice
 -12-




---



##### 



Environmental Release
 Equipment
 Equity Interest
 Equity Marketing
 ERISA
 Event of Default Section 11.1
 Excluded Tax
 Existing Credit Agreement
 Existing Letters of Credit Section 2.2.1(e)
 Extraordinary Expenses
 Fiscal Quarter
 Fiscal Year
 -13-




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##### 



Fixed Charge Coverage Ratio
 Fixed Charges Section 10.2. 4(b) (c)
 FLSA
 Foreign Lender
 Foreign Plan
 Foreign Security Agreement Section 10.1.9
 Foreign Subsidiary
 Full Payment
 GAAP
 General Intangibles
 Goods
 Governmental Approvals
 -14-




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##### 



Governmental Authority
 Guarantor Payment Section 5.10.6
 Guarantors
 Guaranty
 Hedging Agreement
 HK Subsidiaries
 Imported Goods Agreement Exhibit H
 Indemnitees
 Insolvency Proceeding
 Instrument
 Insurance Assignment
 Intellectual Property
 Intellectual Property Claim
 Interest Period Section 3.1.3
 -15-




---



##### 



Inventory
 Inventory Borrowing Period
 Inventory Borrowing Portion
 Inventory Formula Amount
 Inventory Reserve
 Investment
 Investment Property
 Issuing Bank
 Issuing Bank Indemnitees
 Johnson
 Kellogg
 LC Application
 LC Conditions Section 6
 LC Documents
 -16-




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##### 



LC Obligations
 LC Request
 LC Reserve
 Lender Indemnitees
 Lenders
 Letter of Credit
 Letter-of-Credit Right
 Letter of Credit Subline
 LIBOR Loan
 LIBOR Revolver Loan
 License
 License Agreements Schedule 1.1B Section 10.2.21
 Licensor
 Lien
 Lien Waiver
 -17-




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##### 



Loan Section 2.1 Loans
 Loan Account Section 5.7.1
 Loan Documents
 Loan Year
 Logistix
 Margin Stock
 Material Adverse Effect
 Material Contract
 MBC
 Moodys
  Multiemployer Plan
 Net Proceeds
 -18-




---



##### 



Negative Pledge
 Non-Offset Letter Exhibit G
 Notice of Borrowing
 Notice of Conversion/Continuation
 Obligations
 Obligor
 Ordinary Course of Business
 Organic Documents
 OSHA
 Other Agreement
 Other Customer Agreements
 -19-




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##### 



Section 10.2.21
 Overadvance Section 2.1.5
 Overadvance Loan
 P&G
 Participant Section 13.2
 Patent Assignment
 Patriot Act
 Payment Intangible
 Payment Item
 Permitted Asset Disposition
 Permitted Contingent Obligations
 Permitted Lien Section 10.2.2
 Permitted Purchase Money Debt Section 10.2.3
 Person
 -20-




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##### 



Plan
 Pledged Collateral
 Pop Rocket
 Preferred Stock
 Pro Rata
 Prodesign Section 10.1.16
 Program Sales
 Program Sales Contract
 Properly Contested
 Property
 Protective Advances Section 2.1.6
 PTO
 Purchase Money Debt
 Purchase Money Lien
 -21-




---



##### 



RCRA
 Real Estate
 Refinancing Conditions
 Refinancing Debt Section 10.2.1(d)
 Registration Rights Agreement  Section 10.2.21
 Reimbursement Date Section 2.2.2
 Related Documents
 Related Real Estate Documents
 Rent and Charges Reserve
 Report Section 12.2.3
 -22-




---



##### 



Reportable Event
 Required Lenders Section 4.2
 Reserve Percentage Eurocurrency Liabilities
 Restricted Investment Section 10.2.7
 Restricted Payment
 Restrictive Agreement
 Revolver Commitment Schedule 1.1A Revolver Commitments
 Revolver Loan Section 2.1
 Revolver Note Exhibit A
 Revolver Termination Date
 Royalties
 RSI
 -23-




---



##### 



RSI Supply Agreements Section 10.2.2
 SCI
 S&P
 Secured Parties
 Securities Account
 Securities Account Control Agreement Securities Account Control Agreements
 Securities Purchase Agreement Section
10.2.21
 Security Documents
 Senior Officer
 Series AA Preferred Stock
 Settlement Report
 Software
 Solvent
 -24-




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##### 



Fair salable value
 Statutory Reserves
 Subordinated Debt
 Subsidiary
 Supporting Obligation
 Supply Chain
 Swingline Loan Section 4.1.3
 Sunoco
 Target
 Taxes
 Threshold Amount
 Trademark Security Agreement
 Transferee
 Type
 -25-




---



##### 



UCC
 UK Subsidiaries
 Upshot
 Value
 Warrants
 1.2 Accounting Terms Section 10.3 Section 10.3
 1.3 Certain Matters of Construction ejusdem generis Section 14.3.1
 -26-




---



##### 



SECTION 2. CREDIT FACILITIES
 2.1 Revolver Commitment.
 Revolver Loans
 Revolver Notes
 Use of Proceeds
 Voluntary Reduction or Termination of Revolver Commitments
  provided however
 Overadvances Overadvance on demand
 -27-




---



##### 



Protective Advances Section 6 Protective Advances
 2.2 Letter of Credit Facility
 Issuance of Letters of Credit
    -28-




---



##### 



Schedule 2.2.1 Existing Letters of Credit Section 6.1
 Reimbursement; Participations
 Reimbursement Date Section 6
  -29-




---



##### 



Cash Collateral Section 6
 SECTION 3. INTEREST, FEES AND CHARGES
 3.1 Interest.
 Rates and Payment of Interest.
   -30-




---



##### 



on
demand on demand
 Application of Adjusted LIBOR to Outstanding Revolver Loans
   Interest Periods Interest Period provided however
    Interest Rate Not Ascertainable
 3.2 Fees
 Unused Line Fee Commitment Fee
Rate
 -31-




---



##### 



Commitment Utilization Percentage
    
    Commitment Fee RateLess than or equal to 25%
    
    
    0.500
    %Greater than 25%
    
    
    0.375
    %
  LC Facility Fees
 Closing Fee
 Agent Fees
 3.3 Computation of Interest, Fees, Yield Protection . Section 3.2 Section 3.4, 3.6, 3.7, 3.9 5.8
 3.4 Reimbursement Obligations .
 -32-




---



##### 



on demand
 3.5 Illegality .
 3.6 Increased Costs .
     -33-




---



##### 



3.7 Capital Adequacy .
 3.8 Mitigation Section 3.5, 3.6 3.7 5.8
 3.9 Funding Losses .
 3.10 Maximum Interest . interest maximum rate minus
 -34-




---



##### 



SECTION 4. LOAN ADMINISTRATION
 4.1
Manner of Borrowing and Funding Revolver Loans.
 Notice of Borrowing
    Fundings by Lenders on demand
 Swingline Loans; Settlement
  -35-




---



##### 



Section 6
 Notices
 4.2 Defaulting Lender
 4.3 Number and Amount of LIBOR Loans; Determination of Rate
 4.4 Borrower Agent Borrower Agent
 -36-




---



##### 



4.5 One Obligation provided however
 4.6 Effect of Termination Sections 2.3, 3.4, 3.6, 3.7, 3.9,
5.4, 5.8, 12, 14.2
 SECTION 5. PAYMENTS
 5.1 General Payment Provisions Section 3.9
 5.2 Repayment of Revolver Loans
 -37-




---



##### 



5.3 Payment of Other Obligations on demand
 5.4 Marshaling; Payments Set Aside
 5.5 Post-Default Allocation of Payments
 Allocation
 first
 second
 third
 fourth
 fifth
 sixth
 seventh
 last
  Erroneous Application
 -38-




---



##### 



5.6 Application of Payments
 5.7 Loan Account; Account Stated
 Loan Account Loan Account
 Entries Binding
 5.8 Taxes
 5.9 Withholding Tax Exemption
 -39-




---



##### 



5.10 Nature and Extent of Each Borrowers Liability
 Joint and Several Liability; Obligations Absolute Section 5.10.1 Section 5.10.1
 Actions by Agent and the Lenders Section 5.10
 -40-




---



##### 



No Discharge Section 5.10
 Waivers Section 5.10 Section 5.10
 -41-




---



##### 



Sections 5.10.2 5.10.3 Section 5.10
 Section 5.10
 Borrowers Rights of Subrogation, Contribution, Etc.; Subordination of Other
Obligations Section 5.10
 -42-




---



##### 



Extent of Liability; Contribution
 Section 5.10
 Section 5.10 Guarantor Payment Allocable Amount Section 5.10
 Section 5.10
 Joint Enterprise
 SECTION 6. CONDITIONS PRECEDENT
 6.1 Conditions Precedent to Initial Loans Section 6.2 Closing Date
 -43-




---



##### 



Section 9
    Sections 8.6.2 10.1.7 Sections 8.6.2 10.1.7
   -44-
        Section 10.2.1 Section 10.2.1 Section 10.2.1
  Schedules to Security Documents
 Stock Certificates and Instruments
 Lien Searches and UCC Termination Statements
 UCC Financing Statements and Fixture Filings
 Cash Management
 -45-




---



##### 



Securities Accounts
      6.2 Conditions Precedent to All Credit Extensions
     -46-




---



##### 



6.3 Limited Waiver of Conditions Precedent
 SECTION 7. COLLATERAL
 7.1 Grant of Security Interest
              -47-




---



##### 



7.2 Lien on Deposit Accounts; Cash Collateral
 Deposit Accounts and Securities Accounts
 Cash Collateral
 7.3 Real Estate Collateral Schedule 7.3
 7.4 Other Collateral
 Commercial Tort Claims
 Certain After-Acquired Collateral
 -48-




---



##### 



7.5 No Assumption of Liability .
 7.6 Further Assurances
 7.7 Foreign Subsidiary Stock Section 7.1
 SECTION 8. COLLATERAL ADMINISTRATION
 8.1 Borrowing Base Certificates
 8.2 Administration of Accounts
 Records and Schedules of Accounts
 Taxes
 Account Verification -49-
        Maintenance of Dominion Account
 Proceeds of Collateral
 8.3 Administration of Inventory
 Records and Reports of Inventory
 Returns of Inventory
 Acquisition, Sale and Maintenance
 -50-




---



##### 



8.4 Administration of Equipment
 Records and Schedules of Equipment
 Dispositions of Equipment
 Condition of Equipment
 8.5 Administration of Deposit Accounts; Securities Accounts Schedule 8.5 Schedule 8.5
 8.6 General Provisions
 Location of Collateral Schedule
8.6.1 Section 10.2.6
 Insurance of Collateral; Condemnation Proceeds
 -51-
          Protection of Collateral
 Defense of Title to Collateral
 8.7 Power of Attorney
  -52-
        SECTION 9. REPRESENTATIONS AND WARRANTIES
 9.1 General Representations and Warranties
 Existence and Qualification; Power Schedule 9.1.4
 Power; Authority; Enforceable Obligations
    No Legal Bar -53-
        Capital Structure Schedule 9.1.4 Schedule 9.1.4
 Corporate Names; Locations Schedule 9.1.5 Schedule 8.6.1
 Title to Properties; Priority of Liens Schedule 7.3
 Accounts
    -54-




---



##### 



Financial Statements Schedule 9.1.8
 Surety Obligations
 Taxes
 Brokers
 -55-




---



##### 



Intellectual Property Schedule 9.1.12 Schedule 9.1.12
 Governmental Approvals
 Compliance with Laws
 Compliance with Environmental Laws Schedule 9.1.15
 Insurance Section
10.1.7
 Burdensome Contracts Schedule 9.1.17
 Litigation Schedule 9.1.18
 -56-




---



##### 



No Defaults
 ERISA Schedule 9.1.20
 Trade Relations
 Labor Relations Schedule 9.1.22
 Payable Practices
 Not a Regulated Entity
 Margin Stock
 -57-




---



##### 



Plan Assets
 Shareholder Agreements
 BK Agreements and Other Customer Agreements
 Permits Permits
 Inventory Locations Schedule 8.6.1
 9.2 Matters Relating to Collateral .
 reation, Perfection and Priority of Liens
 -58-




---



##### 



Governmental Approvals Section 9.2.1
 Absence of Third-Party Filings Section 9.2.1 Schedule 9.2.3
 Margin Stock
 Information Regarding Collateral; Representations and Warranties
 9.3 Complete Disclosure .
 SECTION 10. COVENANTS AND CONTINUING AGREEMENTS
 10.1 Affirmative Covenants .
 Inspections; Appraisals
 -59-
         Financial and Other Information
    -60-
               Exhibit D Schedule 8.6.1 Exhibit D
 Schedule
9.1.4 -61-
       Schedule 9.1.4 provided
 Section 10.1.7 Sections 8.6.2(a) 10.1.7
  Sections 10.1.2(a) 10.1.2(b) 10.1.2(c)
   Section 9.1.30
  Schedule 10.1.2
 -62-




---



##### 



Notices
 Landlord and Storage Agreements
 Compliance with Laws -63-
        Taxes
 Insurance
 Licenses
 Future Subsidiaries
 Exhibit F Sections 6.1(d) and 6.1(e) Section 6.1 Section 10.1.9
    Preservation of Existence Section 10.2.9
 -64-




---



##### 



Maintenance of Properties
 Compliance with ERISA
 Compliance With Agreements
 Use of Proceeds
 Securities Account Control Agreements
 Prodesign Marketing Prodesign
 Bank Products
 10.2 Negative Covenants .
 Permitted Debt
  -65-
         Schedule 10.2.1
      Permitted Liens
 Permitted Liens
        -66-




---



##### 



Schedule 10.2.2
 Section 10.2.1(f)
 Equitable Lien in Favor of Lenders Section 10.2.2(i) Section 10.2.2(i)
 No Further Negative Pledges Section 10.2.1(f)
 No Restrictions on Subsidiary Distributions to Borrowers or Other
Subsidiaries Schedule 9.1.17 Section 10.2.1(f)
 Capital Expenditures provided however
 Restricted Payments
 provided provided further -67-
          Restricted Investments
 Disposition of Assets Section 8.4.2 Section 10.2.9
 Loans Section 10.2.1(b)
 Restrictions on Payment of Certain Debt
 Fundamental Changes
 -68-




---



##### 



Subsidiaries Sections 10.1.9 10.2.5
 [Intentionally Omitted
 Tax Consolidation
 Accounting Changes Section 1.2
 Restrictive Agreements Schedule 9.1.17
 Hedging Agreements
 Conduct of Business
 Affiliate Transactions Section
10.2.7 Schedule 10.2.17
 Plans
 Amendments to Subordinated Debt
 -69-




---



##### 



Margin Regulations
 Amendments or Waivers of the Related Documents
 Amendments to Transfer Pricing
 Bills of Lading
 10.3 Financial Covenants
 Minimum EBITDA .
 Fixed Charge Coverage Ratio
 SECTION 11. EVENTS OF DEFAULT; REMEDIES ON DEFAULT
 11.1 Events of Default . Event of Default
   Section 7.2, 7.4, 7.6,
8.1, 8.2.4, 8.2.5, 8.6.2, 10.1.1, 10.1.2, 10.2 10.3
  -70-




---



##### 



-71-




---



##### 



11.2 Remedies upon Default . Section 11.1(j)
   Section 6
  11.3 License .
 -72-




---



##### 



11.4 Setoff .
 11.5 Remedies Cumulative; No Waiver
 Cumulative Rights
 Waivers
 SECTION 12. AGENT
 12.1 Appointment, Authority and Duties of Agent
 Appointment and Authority
 -73-




---



##### 



Duties
 Agent Professionals
 Instructions of Required Lenders Section
12.6 Section 14.1.1
 12.2 Agreements Regarding Collateral and Field Examination Reports
 Lien Releases; Care of Collateral
 Possession of Collateral
 -74-




---



##### 



Reports Report
 12.3 Reliance By Agent
 12.4 Action Upon Default
 12.5 Ratable Sharing Section 5.5.1 Section 5.5.1
 12.6 Indemnification of Agent Indemnitees
 Indemnification EACH LENDER SHALL INDEMNIFY AND HOLD HARMLESS AGENT
INDEMNITEES, TO THE EXTENT NOT REIMBURSED BY OBLIGORS (BUT WITHOUT LIMITING THE INDEMNIFICATION
OBLIGATIONS OF OBLIGORS UNDER ANY LOAN DOCUMENTS), ON A PRO RATA BASIS, AGAINST ALL CLAIMS THAT MAY
BE INCURRED BY OR ASSERTED AGAINST ANY AGENT INDEMNITEE.
 -75-




---



##### 



Proceedings
 12.7 Limitation on Responsibilities of Agent
 12.8 Successor Agent and Co-Agents
 Resignation; Successor Agent Sections 12.6 14.2 Section 12
 -76-




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Separate Collateral Agent
 12.9 Due Diligence and Non-Reliance
 12.10 Replacement of Certain Lenders
 12.11 Remittance of Payments and Collections
 Remittances Generally
 -77-




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Failure to Pay
 Recovery of Payments on demand
 12.12 Agent in its Individual Capacity
 12.13 Agent Titles
 12.14 No Third Party Beneficiaries Section 12
 SECTION 13. BENEFIT OF AGREEMENT; ASSIGNMENTS AND PARTICIPATIONS
 13.1 Successors and Assigns Section 13.3 Section 13.3
 13.2 Participations
 Permitted Participants; Effect Participant
 -78-




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Section 5.8
 Voting Rights
 Benefit of Set-Off Section 12.5
 13.3 Assignments
 Permitted Assignments provided however
 Effect; Effective Date Exhibit C Section 13.3
 -79-




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13.4 Tax Treatment . Section 5.9
 13.5 Representation of Lenders
 SECTION 14. MISCELLANEOUS
 14.1 Consents, Amendments and Waivers
 Amendment
  Section 2.2
  Section 4.2 Section 5.5, 7.1 14.1.1
 Limitations
 Payment for Consents
 -80-




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14.2 Indemnity
 14.3 Notices and Communications
 Notice Address Section 4.1.4 Section 14.3 Section 2.1.4, 2.2, 3.1.2, 4.1.1 5.2.3
 Electronic Communications; Voice Mail Section 10.1.2 Section 4.1.4
 Non-Conforming Communications
 14.4 Performance of Borrowers Obligations on
demand
 -81-




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14.5 Credit Inquiries
 14.6 Severability
 14.7 Cumulative Effect; Conflict of Terms
 14.8 Counterparts; Facsimile Signatures
 14.9 Entire Agreement
 14.10 Obligations of Lenders
 14.11 Confidentiality
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14.12 GOVERNING LAW THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, UNLESS OTHERWISE
SPECIFIED, SHALL BE GOVERNED BY THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT GIVING EFFECT TO ANY
CONFLICT OF LAW PRINCIPLES (BUT GIVING EFFECT TO FEDERAL LAWS RELATING TO NATIONAL BANKS).
 14.13 Consent to Forum; Arbitration
 Forum EACH BORROWER HEREBY CONSENTS TO THE NON-EXCLUSIVE JURISDICTION OF ANY
FEDERAL OR STATE COURT SITTING IN OR WITH JURISDICTION OVER CALIFORNIA, IN ANY PROCEEDING OR
DISPUTE RELATING IN ANY WAY TO ANY LOAN DOCUMENTS, AND AGREES THAT ANY SUCH PROCEEDING SHALL BE
BROUGHT BY IT SOLELY IN ANY SUCH COURT. EACH BORROWER IRREVOCABLY WAIVES ALL CLAIMS, OBJECTIONS
AND DEFENSES THAT IT MAY HAVE REGARDING SUCH COURTS PERSONAL OR SUBJECT MATTER JURISDICTION, VENUE
OR INCONVENIENT FORUM.
 Arbitration AAA
 -83-




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14.14 Waivers by Borrowers To the fullest extent permitted by Applicable Law, each
Borrower waives (a) the right to trial by jury (which Agent and each Lender hereby also waives) in
any proceeding, claim or counterclaim of any kind relating in any way to any Loan Documents,
Obligations or Collateral; (b) presentment, demand, protest, notice of presentment, default,
non-payment, maturity, release, compromise, settlement, extension or renewal of any commercial
paper, accounts, contract rights, documents, instruments, chattel paper and guaranties at any time
held by Agent on which a Borrower may in any way be liable, and hereby ratifies anything Agent may
do in this regard; (c) notice prior to taking possession or control of any Collateral; (d) any bond
or security that might be required by a court prior to allowing Agent to exercise any rights or
remedies; (e) the benefit of all valuation, appraisement and exemption laws; (f) any claim against
Agent or any Lender, on any theory of liability, for special, indirect, consequential, exemplary or
punitive damages (as opposed to direct or actual damages) in any way relating to any Enforcement
Action, Obligations, Loan Documents or transactions relating thereto; and (g) notice of acceptance
hereof.
 14.15 Patriot Act Notice
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IN WITNESS WHEREOF,
 BORROWERS:EMAK WORLDWIDE, INC.By: /s/ Teresa L. TormeyTitle: Chief Administrative Officer andGeneral CounselAddress:6330 San Vicente Blvd.Los Angeles, CA 90048Attention: Teresa L. TormeyTelecopy: 323-930-8346EQUITY MARKETING, INC.By: /s/ Teresa L. TormeyTitle: Executive Vice President,General Counsel and SecretaryAddress:6330 San Vicente Blvd.Los Angeles, CA 90048Attention: Teresa L. TormeyTelecopy: 323-930-8346SCI PROMOTION, INC.By: /s/ Teresa L. TormeyTitle: Executive Vice President,General Counsel and SecretaryAddress:6330 San Vicente Blvd.Los Angeles, CA 90048Attention: Teresa L. TormeyTelecopy: 323-930-8346




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POP ROCKET, INC.By: /s/ Teresa L. TormeyTitle: Executive Vice President,General Counsel and SecretaryAddress:6330 San Vicente Blvd.Los Angeles, CA 90048Attention: Teresa L. TormeyTelecopy: 323-930-8346LOGISTIX, INC.By: /s/ Teresa L. TormeyTitle: Executive Vice President,General Counsel and SecretaryAddress:6330 San Vicente Blvd.Los Angeles, CA 90048Attention: Teresa L. TormeyTelecopy: 323-930-8346UPSHOT, INC.By: /s/ Teresa L. TormeyTitle: Executive Vice President,General Counsel and SecretaryAddress:6330 San Vicente Blvd.Los Angeles, CA 90048Attention: Teresa L. TormeyTelecopy: 323-930-8346EMAK WORLDWIDE SERVICE CORP.By: /s/ Teresa L. TormeyTitle: Chief Administrative Officer andGeneral CounselAddress:6330 San Vicente Blvd.Los Angeles, CA 90048Attention: Teresa L. TormeyTelecopy: 323-930-8346




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CORINTHIAN MARKETING, INC.By: /s/ Teresa L. TormeyTitle: Executive Vice President,General Counsel and SecretaryAddress:6330 San Vicente Blvd.Los Angeles, CA 90048Attention: Teresa L. TormeyTelecopy: 323-930-8346JOHNSON GROSSFIELD, INC.By: /s/ Teresa L. TormeyTitle: Executive Vice President,General Counsel and SecretaryAddress:6330 San Vicente Blvd.Los Angeles, CA 90048Attention: Teresa L. TormeyTelecopy: 323-930-8346EQUITY MARKETING HONG KONG, LTD.By: /s/ Teresa L. TormeyTitle: Executive Vice President,General Counsel and SecretaryAddress:6330 San Vicente Blvd.Los Angeles, CA 90048Attention: Teresa L. TormeyTelecopy: 323-930-8346




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AGENT AND LENDERS:BANK OF AMERICA, N.A.,as Agent and LenderBy: /s/ David T. KnoblauchTitle: Senior Vice PresidentAddress:55 South Lake AvenuePasadena, California 91101-2627Attention: Portfolio ManagerTelecopy: (626) 584-4600