Document:

EXHIBIT
10.1

    

    Execution
Version

    

    
      	 
      

    

    SECOND
LIEN CREDIT, SECURITY

    AND
PLEDGE AGREEMENT

     

    Dated
as of December 15, 2010

     

    among

     

    KEY
BRAND ENTERTAINMENT INC.

    as
the Borrower,

     

    THEATRE
DIRECT NY, INC.

    as
the Company,

    

    and

    

    HOLLYWOOD
MEDIA CORP.

    as
the Lender

     

      
        

      

    

     

    Notwithstanding
anything herein to the contrary, the payment of and security for the principal
amount of the indebtedness evidenced by this instrument and the interest
accruing thereon is subject to the provisions of the Subordination and
Intercreditor Agreement dated as of December 15, 2010 (as amended, restated,
supplemented or otherwise modified from time to time, the “Intercreditor Agreement”) by
and among Key Brand Entertainment Inc., as Borrower, Hollywood Media Corp., as
Subordinated Lender and JPMorgan Chase Bank, N.A., as Senior
Agent.  If there is a conflict between the terms of the Intercreditor
Agreement and this Agreement, the terms of the Intercreditor Agreement will
control.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE
OF CONTENTS

    

    
      
        	 
      	
                Page

              
	 
      	 
      
	
                ARTICLE
      1         –   DEFINITIONS

              	
                1

              
	
                ARTICLE
      2         –   THE
      LOANS

              	
                14

              
	
                Section
      2.1

              	
                Commitments
      and Loan

              	
                14

              
	
                Section
      2.2

              	
                Making
      of the Loan.

              	
                14

              
	
                Section
      2.3

              	
                Note:
      Repayment

              	
                14

              
	
                Section
      2.4

              	
                Reduction
      of the Commitments; Mandatory Repayments

              	
                14

              
	
                Section
      2.5

              	
                Interest

              	
                15

              
	
                Section
      2.6

              	
                Default
      Interest

              	
                15

              
	
                Section
      2.7

              	
                Voluntary
      Prepayment of the Loan; Reimbursement of the Lender

              	
                15

              
	
                Section
      2.8

              	
                Manner
      of Payments

              	
                16

              
	
                Section
      2.9

              	
                Taxes

              	
                16

              
	
                Section
      2.10

              	
                Interest
      Adjustments

              	
                17

              
	
                ARTICLE
      3           –  REPRESENTATIONS
      AND WARRANTIES OF THE BORROWER

              	
                17

              
	
                Section
      3.1

              	
                Existence
      and Power

              	
                18

              
	
                Section
      3.2

              	
                Authority
      and No Violation

              	
                18

              
	
                Section
      3.3

              	
                Governmental
      Approval

              	
                19

              
	
                Section
      3.4

              	
                Binding
      Agreements

              	
                19

              
	
                Section
      3.5

              	
                Financial
      Statements

              	
                19

              
	
                Section
      3.6

              	
                No
      Material Adverse Change

              	
                19

              
	
                Section
      3.7

              	
                Litigation

              	
                19

              
	
                Section
      3.8

              	
                Federal
      Reserve Regulations

              	
                20

              
	
                Section
      3.9

              	
                Investment
      Company Act

              	
                20

              
	
                Section
      3.10

              	
                Taxes

              	
                20

              
	
                Section
      3.11

              	
                Compliance
      with ERISA

              	
                21

              
	
                Section
      3.12

              	
                Agreements

              	
                21

              
	
                Section
      3.13

              	
                Security
      Interest

              	
                 

              
	
                Section
      3.14

              	
                Disclosure

              	
                 

              
	
                Section
      3.15

              	
                Sufficiency
      of Rights

              	
                 

              
	
                Section
      3.16

              	
                Environmental
      Liabilities

              	
                 

              
	
                Section
      3.17

              	
                Pledged
      Securities

              	
                 

              
	
                Section
      3.18

              	
                Compliance
      with Laws

              	
                 

              
	
                Section
      3.19

              	
                Projected
      Financial Information

              	
                 

              
	
                Section
      3.20

              	
                Subsidiaries

              	
                 

              
	
                Section
      3.21

              	
                Solvency

              	
                 

              

      

    

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

    TABLE
OF CONTENTS

    (continued)

     

    
      
        	 
      	 
      	
                Page

              
	 
      	 
      	 
      
	
                ARTICLE
      4         –   CONDITIONS
      OF LENDING

              	
                21

              
	
                Section
      4.1

              	
                Conditions
      Precedent to the Loan

              	
                21

              
	
                Section
      4.2

              	
                Conditions
      Precedent to the Loan

              	
                22

              
	
                ARTICLE
      5        
      –   AFFIRMATIVE COVENANTS

              	
                22

              
	
                Section
      5.1

              	
                Financial
      Statements and Reports

              	
                22

              
	
                Section
      5.2

              	
                Corporate
      Existence; Compliance with Laws

              	
                23

              
	
                Section
      5.3

              	
                Maintenance
      of Properties

              	
                23

              
	
                Section
      5.4

              	
                Notice
      of Material Events

              	
                24

              
	
                Section
      5.5

              	
                Insurance

              	
                24

              
	
                Section
      5.6

              	
                Copyrights
      and Trademarks

              	
                24

              
	
                Section
      5.7

              	
                Books
      and Records

              	
                25

              
	
                Section
      5.8

              	
                Third
      Party Audit Rights

              	
                25

              
	
                Section
      5.9

              	
                Observance
      of Agreements

              	
                25

              
	
                Section
      5.10

              	
                Lease
      Agreements

              	
                25

              
	
                Section
      5.11

              	
                Taxes
      and Charges; Indebtedness in Ordinary Course of Business

              	
                25

              
	
                Section
      5.12

              	
                Liens

              	
                26

              
	
                Section
      5.13

              	
                Further
      Assurances; Security Interests

              	
                26

              
	
                Section
      5.14

              	
                ERISA
      Compliance and Reports

              	
                26

              
	
                Section
      5.15

              	
                Subsidiaries

              	
                26

              
	
                Section
      5.16

              	
                Environmental
      Laws

              	
                27

              
	
                Section
      5.17

              	
                Use
      of Proceeds

              	
                27

              
	
                Section
      5.18

              	
                After-Acquired
      Real Property Assets

              	
                27

              
	
                Section
      5.19

              	
                Fictitious
      Names

              	
                27

              
	
                Section
      5.20

              	
                Service
      of Process Agent

              	
                27

              
	
                ARTICLE
      6         –   NEGATIVE
      COVENANTS

              	
                28

              
	
                Section
      6.1

              	
                Limitations
      on Indebtedness and Preferred Equity Interests

              	
                28

              
	
                Section
      6.2

              	
                Limitations
      on Liens

              	
                28

              
	
                Section
      6.3

              	
                Limitation
      on Guaranties

              	
                29

              
	
                Section
      6.4

              	
                Limitations
      on Investments

              	
                29

              
	
                Section
      6.5

              	
                Restricted
      Payments

              	
                29

              
	
                Section
      6.6

              	
                Consolidation;
      Merger; Sale or Purchase of Assets; Etc

              	
                30

              
	
                Section
      6.7

              	
                Receivables

              	
                30

              
	
                Section
      6.8

              	
                Sale
      and Leaseback

              	
                30

              
	
                Section
      6.9

              	
                Jurisdiction;
      Places of Business; Change of Name

              	
                30

              

      

    

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

    TABLE
OF CONTENTS

    (continued)

     

    
      
        	 
      	 
      	
                Page

              
	 
      	 
      	 
      
	
                Section
      6.10

              	
                Limitations
      on Capital Expenditures

              	
                30

              
	
                Section
      6.11

              	
                Transactions
      with Affiliates

              	
                30

              
	
                Section
      6.12

              	
                Business
      Activities

              	
                31

              
	
                Section
      6.13

              	
                Amendment
      of Documents

              	
                31

              
	
                Section
      6.14

              	
                No
      Further Negative Pledge

              	
                31

              
	
                Section
      6.15

              	
                Dispositions

              	
                31

              
	
                Section
      6.16

              	
                Limitation
      on Additional Subsidiaries

              	
                31

              
	
                Section
      6.17

              	
                Environmental
      Matters

              	
                31

              
	
                ARTICLE
      7        
      –   EVENTS OF DEFAULT

              	
                31

              
	
                ARTICLE
      8         –   GRANT
      OF SECURITY INTEREST; REMEDIES

              	
                35

              
	
                Section
      8.1

              	
                Security
      Interests

              	
                35

              
	
                Section
      8.2

              	
                Use
      of Collateral

              	
                35

              
	
                Section
      8.3

              	
                Collection
      Accounts

              	
                35

              
	
                Section
      8.4

              	
                Credit
      Parties to Hold in Trust

              	
                35

              
	
                Section
      8.5

              	
                Collections;
      etc

              	
                35

              
	
                Section
      8.6

              	
                Possession;
      Sale of Collateral; etc

              	
                36

              
	
                Section
      8.7

              	
                Application
      of Proceeds after Event of Default

              	
                37

              
	
                Section
      8.8

              	
                Power
      of Attorney

              	
                37

              
	
                Section
      8.9

              	
                Financing
      Statements, Direct Payments

              	
                38

              
	
                Section
      8.10

              	
                Termination
      and Release

              	
                38

              
	
                Section
      8.11

              	
                Remedies
      Not Exclusive

              	
                38

              
	
                Section
      8.12

              	
                Continuation
      and Reinstatement

              	
                38

              
	
                ARTICLE
      9        
      –   [INTENTIONALLY OMITTED]

              	
                38

              
	
                ARTICLE
      10     
       –   PLEDGE

              	
                38

              
	
                Section
      10.1

              	
                Pledge

              	
                39

              
	
                Section
      10.2

              	
                Covenant

              	
                39

              
	
                Section
      10.3

              	
                Registration
      in Nominee Name; Denominations

              	
                39

              
	
                Section
      10.4

              	
                Voting
      Rights; Dividends; etc

              	
                39

              
	
                Section
      10.5

              	
                Remedies
      Upon Default

              	
                41

              
	
                Section
      10.6

              	
                Securities
      Act; etc

              	
                42

              
	
                Section
      10.7

              	
                Continuation  and
      Reinstatement

              	
                42

              
	
                Section
      10.8

              	
                Termination

              	
                42

              
	
                ARTICLE
      11       –   CASH
      COLLATERAL

              	
                42

              
	
                Section
      11.1

              	
                Cash
      Collateral Accounts

              	
                42

              

      

    

    
      
         

      

      
        iii

        
          

        

      

      
         

      

    

    TABLE
OF CONTENTS

    (continued)

    

    
      
        
          	 
      	 
      	
                  Page

                
	 
      	 
      	 
      
	
                  Section
      11.2

                	
                  Investment
      of Funds

                	
                  43

                
	
                  Section
      11.3

                	
                  Grant
      of Security Interest

                	
                  43

                
	
                  Section
      11.4

                	
                  Remedies

                	
                  44

                
	
                  ARTICLE
      12       –   THE COLLATERAL
      AGENT

                	
                   

                
	
                  Section
      12.1

                	
                  Administration
      by the Collateral Agent

                	
                   

                
	
                  Section
      12.2

                	
                  Notice
      to the Lender; Default

                	
                   

                
	
                  Section
      12.3

                	
                  Liability
      of the Collateral Agent

                	
                   

                
	
                  Section
      12.4

                	
                  Reimbursement
      and Indemnification

                	
                   

                
	
                  Section
      12.5

                	
                  Rights
      of the Collateral Agent

                	
                   

                
	
                  Section
      12.6

                	
                  Independent
      Investigation by the Lender

                	
                   

                
	
                  Section
      12.7

                	
                  Notice
      of Transfer

                	
                   

                
	
                  Section
      12.8

                	
                  Successor
      Collateral Agent

                	
                   

                
	ARTICLE
      13    –  MISCELLANEOUS	
                  44

                
	
                  Section
      13.1

                	
                  Notices

                	
                  44

                
	
                  Section
      13.2

                	
                  Survival
      of Agreement, Representations and Warranties, etc

                	
                  44

                
	
                  Section
      13.3

                	
                  Successors
      and Assigns: Loan Sales; Participations

                	
                  45

                
	
                  Section
      13.4

                	
                  Expenses;
      Documentary Taxes

                	
                  45

                
	
                  Section
      13.5

                	
                  Indemnity

                	
                  45

                
	
                  Section
      13.6

                	
                  Self
      Help

                	
                  46

                
	
                  Section
      13.7

                	
                  CHOICE
      OF LAW

                	
                  46

                
	
                  Section
      13.8

                	
                  WAIVER
      OF JURY TRIAL

                	
                  46

                
	
                  Section
      13.9

                	
                  WAIVER
      WITH RESPECT TO DAMAGES

                	
                  47

                
	
                  Section
      13.10

                	
                  No
      Waiver

                	
                  47

                
	
                  Section
      13.11

                	
                  Amendments;
      etc

                	
                  47

                
	
                  Section
      13.12

                	
                  Severability

                	
                  47

                
	
                  Section
      13.13

                	
                  SERVICE
      OF PROCESS; SUBMISSION TO JURISDICTION.

                	
                  48

                
	
                  Section
      13.14

                	
                  Headings

                	
                  48

                
	
                  Section
      13.15

                	
                  Execution
      in Counterparts

                	
                  48

                
	
                  Section
      13.16

                	
                  Subordination
      of Intercompany Indebtedness; Receivables and Advances

                	
                  49

                
	
                  Section
      13.17

                	
                  USA
      Patriot Act

                	
                  49

                
	
                  Section
      13.18

                	
                  Entire
      Agreement

                	
                  49

                
	
                  Section
      13.18

                	
                  Confidentiality

                	
                  50

                
	
                  Section
      13.20

                	
                  Foreign
      Currency Conversion

                	
                  50

                

        

      

    

    
      
         

      

      
        iv

        
          

        

      

      
         

      

    

    TABLE
OF CONTENTS

    (continued)

     

    Page

     

    Exhibits:

    

    A       
   Form of Note

    B           Form
of Copyright Security Agreement

    C           Form
of Trademark Security Agreement

    

    Schedules:

    

    3.1         Existence
and Power

    3.8         ERISA

    3.9         Security
Interest Filing Offices

    10.1       Initial
Pledged Securities

     

    
      
         

      

      
        v

        
          

        

      

      
         

      

    

    SECOND LIEN CREDIT, SECURITY AND
PLEDGE AGREEMENT dated as of December 15, 2010 (as amended, supplemented
or otherwise modified, renewed or replaced from time to time, the “Credit
Agreement”) among (i) KEY BRAND ENTERTAINMENT INC.,
a Delaware corporation (the “Borrower”),
(ii) THEATRE DIRECT NY,
INC., a Delaware corporation (the “Company”),
and (iii) HOLLYWOOD MEDIA
CORP., a Florida corporation (the “Lender”).

     

    INTRODUCTORY
STATEMENT

     

    All terms
used in this Introductory Statement and not otherwise defined above or in this
Introductory Statement shall have the meanings given to them in Article 1 hereof or
elsewhere herein.

     

    The
Borrower has requested that the Lender make available to the Borrower a five
year senior subordinated secured term loan facility in the aggregate amount of
$8,500,000, subject to reduction in amount upon the terms described herein (the
“Facility”).

     

    Subject
to the terms and conditions of this Credit Agreement, the Facility will be used
to finance the Hollywood Acquisition simultaneously with the closing of the
Facility.

     

    To
provide assurance for the repayment of the Loan and payment and performance of
the other Obligations of the Borrower hereunder, the Borrower will, among other
things, provide or cause to be provided to the Lender, the following (each as
more fully described herein):

     

    
      	
               
      

            	
              (i)

            	
              a
      second ranking security interest in the Collateral from the applicable
      Collateral Parties pursuant to Article 8
      hereof subject to Permitted Encumbrances;
and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              a
      second ranking pledge by each of the Pledgors of the Pledged Securities
      owned by it pursuant to Article 10
      hereof subject to Permitted
Encumbrances.

            

    

     

    Subject
to, and upon, the terms and conditions set forth herein, the Lender is willing
to make a Loan to the Borrower as provided herein in an aggregate amount at any
one time outstanding not in excess of $8,500,000.

     

    Accordingly,
the parties hereto hereby agree as follows:

     

    ARTICLE
1  –   DEFINITIONS

     

    For the
purposes hereof unless the context otherwise requires, all Section references
herein shall be deemed to correspond with Sections herein, the following terms
shall have the meanings indicated, all accounting terms not otherwise defined
herein shall have the respective meanings accorded to them under GAAP, all terms
defined in the UCC and not otherwise defined herein shall have the respective
meanings accorded to them therein unless the context otherwise requires and the
words “including,”
“includes” and “include” shall be deemed to
be followed by the words “without
limitation.”  Unless the context otherwise requires, any of the
following terms may be used in the singular or the plural, depending on the
reference:

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    “Account
Control Agreement” shall mean an account control agreement in form and
substance reasonably satisfactory to the Lender, as the same may be amended,
supplemented or otherwise modified, renewed or replaced from time to
time.

     

    “Adverse
Ticketing Regulations Event” shall mean the occurrence of any adverse
change in state or federal ticketing regulations that takes effect within two
years of the Closing Date that restricts or limits the amount of services fees
that may be charged on the resale of tickets.

     

    “Adverse
Ticketing Regulations Reduction Amount” shall mean the amount by which
the Loan may be reduced, in an amount not to exceed $5,000,000, as a result of
an Adverse Ticketing Regulations Event; provided,
that the actual amount of such reduction shall be determined by a valuation firm
mutually acceptable to the Lender and the Borrower.

     

    “Affiliate”
shall mean any Person which, directly or indirectly, is in control of, is
controlled by, or is under common control with, another Person.  For
purposes of this definition, a Person shall be deemed to be “controlled by” another Person
if such latter Person possesses, directly or indirectly, the power to direct or
cause the direction of the management and policies of such controlled Person
whether by contract or otherwise.

     

    “Applicable
Law” shall mean all provisions of statutes, rules, regulations and orders
of the United States, any state, province or territory thereof or municipality
therein or of any foreign governmental body or of any regulatory agency
applicable to the Person in question, and all orders and decrees of all courts
and arbitrators in proceedings or actions in which the Person in question is a
party.

     

    “Authorized
Officer” as applied to any Credit Party, shall mean the Chief Executive
Officer, President, Vice President, Chief Financial Officer or Treasurer of that
Credit Party (or equivalent position in the case of a limited liability company
or limited partnership).

     

    “Bankruptcy
Code” shall mean the Bankruptcy Reform Act of 1978, as heretofore and
hereafter amended, as codified at 11 U.S.C. § 101 et seq.

     

    “Board”
shall mean the Board of Governors of the Federal Reserve System of the United
States of America.

     

    “Borrower”
shall have the meaning given to such term in the preamble of this Credit
Agreement.

     

    “Business
Day” shall mean any day other than a Saturday, Sunday or other day on
which banks are required or permitted to close in the State of New York or the
State of California.

     

    “Capital
Lease” as applied to any Person, shall mean any lease of any property
(whether real, personal or mixed) by that Person as lessee which, in accordance
with GAAP, is or should be accounted for as a capital lease on the balance sheet
of that Person.

     

    “Cash
Collateral Account” shall have the meaning given to such term in Section 11.1
hereof.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    “Cash
Equivalents” shall have the meaning given to such term in the JPM Credit
Agreement as in effect on the Closing Date.

     

    “Casualty
Event” shall mean, with respect to any property of any Person, any loss
of or damage to, or any condemnation, expropriation or other taking of, such
property for which such Person or any of its Subsidiaries receives, or has the
right to receive, insurance proceeds, or proceeds of a condemnation award or
other compensation.

     

    “Change
in Control” shall mean a change of ownership which results in (i) Key
Brand Holdings LLC and other shareholders of the Borrower subject to voting
trust or other shareholders’ rights agreements binding such shareholders to vote
along with Key Brand Holdings LLC, failing to own directly or indirectly
(through one or more Subsidiaries) more than 50% of the voting and economic
Equity Interests in the Borrower and failing to have effective control of the
Borrower’s board of directors or (ii) the Borrower failing to own directly 100%
(other than as a result of the exercise of the Hollywood Warrants or issuance of
up to 5% of the Equity Interests in the Company to management and directors) of
the voting and economic Equity Interests in the Company and failing to have
effective control of the Company’s board of directors or (iii) any Theatre
Direct Company ceasing to own 100% of the Equity Interest, voting rights and
management control rights of any of its wholly owned Subsidiaries except for a
sale or dissolution of a Subsidiary as permitted herein.

     

    “Closing
Date” shall mean the date of this Credit Agreement.

     

    “Code”
shall mean the Internal Revenue Code of 1986, as now and hereafter in effect, as
codified at 26 U.S.C. § 1 et seq. or any successor
provision thereto.

     

    “Collateral”
shall mean (i) with respect to each applicable Collateral Party, all of
such Collateral Party’s right, title and interest in and to all Real Property
Assets, including all personal property, tangible and intangible, wherever
located or situated and whether now owned, presently existing or hereafter
acquired or created, including, but not limited to, all goods, accounts,
instruments, intercompany obligations, contract rights, partnership and Joint
Venture interests, documents, chattel paper, general intangibles, payment
intangibles, goodwill, equipment, machinery, Inventory, investment property,
copyrights, trademarks, trade names, insurance proceeds, cash, deposit accounts,
letter of credit rights and (ii) the Pledged Securities, and
(iii) with respect to the items described in clause (i) or clause (ii) of
this definition of Collateral, any proceeds thereof, products thereof or income
therefrom; provided,
however,
that anything to the contrary herein notwithstanding, the Collateral shall not
include any contract, license or general intangible to which such Collateral
Party is a party if and to the extent such contract, license or general
intangible is subject to express contractual provisions prohibiting the creation
of a security interest in the right, title or interest of such Collateral Party
therein and such creation would, in and of itself, cause or result in a default
thereunder enabling another Person party to such contract, license or general
intangible to terminate the same or enforce material remedies thereunder; except
in each case to the extent that (x) such prohibition has been waived or such
other Person has otherwise consented to the creation hereunder of a security
interest in such contract, license or general intangible or (y) such prohibition
would be rendered ineffective pursuant to Section 9-406, 9-407 or 9-408 of
Article 9 of the Uniform Commercial Code, as applicable and as then in effect in
any relevant jurisdiction, or any other Applicable Law (including the Bankruptcy
Code) or principles of equity and provided,
further,
that immediately upon the ineffectiveness, lapse or termination of any such
prohibiting provision, such Collateral Party shall be deemed to have granted a
security interest in, all its rights, title and interest in and to such
contract, license or general intangible as if such provision had never been in
effect and provided, further, the
Collateral shall not include any dividend or distributions made by a Theatre
Direct Company on its stock to Borrower to the extent permitted by the terms
hereof, including, without limitation, the requirement that no Event of Default
existed at the time of such dividend or distribution.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    “Collateral
Party” shall mean the Company and each of its Domestic
Subsidiaries.

     

    “Company”
shall have the meaning given to such term in the preamble of this Credit
Agreement.

     

    “Consolidated”
shall mean financial information of the Borrower and its Consolidated
Subsidiaries consolidated in accordance with GAAP.

     

    “Consolidated
Subsidiary” shall mean, for any Person, each Subsidiary of such Person
(whether now existing or hereafter created or acquired) the financial statements
of which shall be (or should have been) consolidated with the financial
statements of such Person in accordance with GAAP.

     

    “Copyright
Security Agreement” shall mean a Copyright Security Agreement,
substantially in the form of Exhibit B hereto
executed by each Collateral Party, as the same may be amended, supplemented or
otherwise modified, renewed or replaced from time to time.

     

    “Credit
Agreement” shall have the meaning given to such term in the preamble of
this Credit Agreement.

     

    “Credit
Parties” shall mean the Borrower, the Company and each of the Company’s
Domestic Subsidiaries; and “Credit
Party” shall mean any one of them.

     

    “Default”
shall mean any Event of Default and any event, act or condition which with
notice or lapse of the cure period set forth therein (if any), or both, would
constitute an Event of Default.

     

    “Disposition”
shall mean any sale, assignment, transfer or other disposition of any asset by a
Theatre Direct Company to any Person (other than to any other Theatre Direct
Company), except for (a) sales of Inventory to customers in the ordinary
course of business and dispositions of obsolete, worn out or damaged Inventory
or equipment not used in the business, or (b) any condemnation or taking of
such assets by eminent domain or expropriation proceeding.

     

    “Dollars”
and “$”
shall mean lawful money of the United States.

     

    “Domestic
Pledged Securities” shall mean 100% of the Equity Interests (both voting
and economic) of the Company and any direct or indirect Domestic
Subsidiary.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    “Domestic
Subsidiary” shall mean a direct or indirect Subsidiary of the Company
incorporated or organized under the laws of the United States or any State
within the United States.

     

    “Earnout
Amount”
shall mean the Level 1 Earnout Amount plus
the Level 2 Earnout Amount.

     

    “Environmental
Laws” shall have the meaning given to such term in the JPM Credit
Agreement.

     

    “Environmental
Permit” shall have the meaning given to such term in the JPM Credit
Agreement.

     

    “Equity
Interests” means shares of the capital stock, partnership interests,
membership interests in a limited liability company, beneficial interests in a
trust or other equity interests in any Person or any warrants, options or other
rights to acquire such interests.

     

    “ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as heretofore
and hereafter amended and in effect on the applicable date, as codified at 29
U.S.C. § 1001 et seq. and the
regulations promulgated thereunder.

     

    “ERISA
Affiliate” shall mean each person (as defined in Section 3(9) of ERISA)
which is treated as a single employer with any Credit Party under Section
414(b), (c), (m) or (o) of the Code.

     

    “Event of
Default” shall have the meaning given to such term in Article 7
hereof

     

    “Excluded
Taxes” shall mean, with respect to the Lender or any other recipient of
any payment to be made by or on account of any obligation of the Borrower
hereunder (a) income or franchise taxes imposed on (or measured by) its net
income by (i) the United States, (ii) the jurisdiction under the laws of which
such recipient is organized or in which its principal office is located or, in
the case of the Lender, in which its applicable lending office is located, or
(iii) any Governmental Authority as a result of a present or former connection
between such recipient and the jurisdiction of such Governmental Authority
(other than any such connection arising from such recipient having executed,
delivered or performed its obligations or received a payment under, or enforced,
any of the loan documents), (b) any branch profits taxes imposed by the United
States of America or any similar tax imposed by any other jurisdiction in which
the Borrower is located, (c) any backup withholding tax that is imposed on
amounts payable to the Lender at the time the Lender becomes a party to this
Credit Agreement (or designates a new lending office) or is attributable to the
Lender’s failure to comply with Section 2.9(e) or
Section 2.9(f),
except to the extent that the Lender (or its assignor, if any) was entitled, at
the time of designation of a new lending office (or assignment), to receive
additional amounts from the Borrower with respect to such withholding tax
pursuant to Section
2.9(a) and (d) all liabilities, penalties and interest with respect to
any of the foregoing Excluded Taxes.

     

    “Facility”
shall have the meaning given to such term in the Introductory Statement
hereof.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    “Federal
Securities Laws” shall have the meaning given to such term in Section 10.6
hereof.

     

    “First-Tier
Foreign Subsidiary” shall mean any Foreign Subsidiary the Equity
Interests in which are directly (as opposed to indirectly) owned by the
Company.

     

    “Foreign
Pledged Securities” shall mean 100% of the Equity Interests (both voting
and economic) of any direct or indirect Foreign Subsidiary of the Company,
except for the Unpledged Securities.

     

    “Foreign
Security Documents” shall mean any documents or instruments creating or
perfecting a security interest in Collateral outside the United
States.

     

    “Foreign
Subsidiary” shall mean a direct or indirect Subsidiary of the Company
that is incorporated or organized in a jurisdiction outside of the United
States.

     

    “Fundamental
Documents” shall mean this Credit Agreement, the Note, the Copyright
Security Agreement (with all supplements thereto), the Trademark Security
Agreement (with all supplements thereto), the Foreign Security Documents, the
Mortgages, the Intercreditor Agreement, the UCC financing statements and any
other documents or instruments utilized to pledge or grant a security interest
or Lien on any Collateral or any other documents or instruments related to the
Facility so designated by the Lender, in each case, as amended, amended and
restated, supplemented or otherwise modified in any respect.

     

    “GAAP”
shall mean generally accepted accounting principles in the United States in
effect from time to time consistently applied (except for accounting changes in
response to Financial Accounting Standards Board releases or other authoritative
pronouncements).

     

    “Governmental
Authority” shall mean any federal, state, provincial, territorial,
municipal or other governmental department, commission, board, bureau, agency or
instrumentality, or my court, in each case whether of the United States or any
foreign jurisdiction.

     

    “Guaranty”
shall mean, as to any Person, any direct or indirect obligation of such Person
guaranteeing or intended to guarantee any Indebtedness, Capital Lease, dividend
or other monetary obligation (“primary
obligation”) of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, including,
without limitation, any obligation of such Person, whether or not contingent,
(a) to purchase any such primary obligation or any property constituting direct
or indirect security therefor, (b) to advance or supply funds (i) for the
purchase or payment of any such primary obligation or (ii) to maintain working
capital or equity capital of the primary obligor or otherwise to maintain the
net worth or solvency of the primary obligor, or (c) to purchase property,
securities or services, in each case, primarily for the purpose of assuring the
performance by the primary obligor of any such primary obligation; provided,
however,
that the term Guaranty shall not include endorsements for collection or
collections for deposit, in either case in the ordinary course of business or
any guaranty by a Theatre Direct Company existing prior to the Closing
Date.  The amount of any Guaranty shall be deemed to be an amount
equal to (x) the stated or determinable amount of the primary obligation in
respect of which such Guaranty is made (or, if the amount of such primary
obligation is not stated or determinable, the maximum reasonably anticipated
liability in respect thereof (assuming such Person is required to perform
thereunder)) or (y) the stated maximum liability under such Guaranty, whichever
is less.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    “Hazardous
Materials” shall have the meaning given to such term in the JPM Credit
Agreement.

     

    “Hollywood”
shall mean Hollywood Media Corp., a Florida corporation.

     

    “Hollywood
Acquisition” shall mean the acquisition by the Borrower of the Shares (as
defined in the Hollywood SPA) in accordance with and pursuant to the terms of
the Hollywood SPA.

     

    “Hollywood
Closing Documents” shall mean collectively, the Hollywood SPA, the
Hollywood Warrants, the Transition Services Agreement and all other documents
entered into by any Credit Party in connection with the closing of the Hollywood
Acquisition (other than the Fundamental Documents) as amended, amended and
restated, supplemented or otherwise modified from time to time in accordance
with the terms thereof.

     

    “Hollywood
SPA” shall mean that certain Stock Purchase Agreement, dated as of
December 22, 2009, by and between Hollywood as “Selling Stockholder”
thereunder, and the Borrower as “Purchaser” thereunder, as
amended, together with all exhibits and schedules thereto.

     

    “Hollywood
Warrants” shall mean that certain Warrant to purchase shares of common
stock of the Company issued pursuant to the Hollywood SPA.

     

    “Indebtedness”
shall mean (without double counting), at any time and with respect to any
Person, (i) indebtedness of such Person for borrowed money (whether by loan or
the issuance and sale of debt securities) or for the deferred purchase price of
property or services purchased (other than amounts constituting trade payables
payable within ninety (90) days and which are not liabilities on such Person’s
balance sheet); (ii) obligations of such Person in respect of letters of credit,
acceptance facilities, or drafts or similar instruments issued or accepted by
banks and other financial institutions for the account of such Person; (iii)
obligations of such Person under Capital Leases; (iv) deferred payment
obligations of such Person resulting from the adjudication or settlement of any
litigation; and (v) indebtedness of others of the type described in clauses (i),
(ii), (iii) and (iv) hereof which such Person has (a) directly or indirectly
assumed or guaranteed in connection with a Guaranty or (b) secured by a Lien on
the assets of such Person, whether or not such Person has assumed such
indebtedness (provided,
that if such Person has not assumed such Indebtedness of another Person then the
amount of Indebtedness of such Person pursuant to this clause (v) for purposes
of definitive credit documentation shall be equal to the lesser of the amount of
such indebtedness of the other Person or the fair market value of the assets of
such Person which secure such other indebtedness).

     

    “Indemnified
Party” shall have the meaning given to such term in Section 13.5
hereof.

     

    “Indemnified
Taxes” shall mean Taxes other than Excluded Taxes.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    “Information”
shall have the meaning given to such term in Section 13.19
hereof.

     

    “Instrument
of Assumption and Joinder” shall mean an Instrument of Assumption and
Joinder in form and substance reasonably satisfactory to the Lender, to be
completed by any Subsidiary of the Company created or acquired after the Closing
Date that becomes a “Credit
Party” pursuant to the terms of this Credit Agreement.

     

    “Intercreditor
Agreement” shall mean that certain intercreditor agreement, dated as of
the Closing Date, by and among, inter alios, the JPM
Administrative Agent, the Lender and the Borrower, as it may be amended,
restated, supplemented or otherwise modified from time to time in accordance
with this Credit Agreement and such Intercreditor Agreement.

     

    “Interest
Deficit” shall have the meaning given to such term in Section 2.10
hereof.

     

    “Interest
Payment Date” shall mean the last Business Day of each March, June,
September and December of each fiscal year.

     

    “Inventory”
shall mean all goods (including tickets) held for sale in connection with the
Theatre Direct Companies’ business.

     

    “Investment”
shall mean the purchase of any stock, evidence of indebtedness or other security
of any other Person, and any loan, advance, contribution of capital, extension
of credit or commitment therefor (including, without limitation, the Guaranty of
loans made to others, but excluding trade and customer accounts receivable
arising in the ordinary course of business and payable in accordance with
customary trading terms in the ordinary course of business).

     

    “Joint
Venture” shall mean any Investment with another Person(s) in the form of
the acquisition or ownership of minority Equity Interests (and related capital
accounts or interests) in a legal entity formed for the purpose of conducting
one or more specified business activities with such other Person(s); provided,
that, for the avoidance of doubt, each of Historic Theatre Group, LLC, a
Delaware limited liability company, The Booking Group, LLC, a New York limited
liability company, Networks Presentations, LLC, a Texas limited liability
company, J&H Touring Company, L.P., a Texas limited partnership, The
Marketing Division, LLC, a Delaware limited liability company, and Creative
Licensing Group, LLC, a Delaware limited liability company, shall be considered
Joint Ventures hereunder.

     

    “JPM
Administrative Agent” shall mean JPMorgan Bank, N.A., as administrative
agent under the JPM Credit Agreement, and its successors and
assigns.

     

    “JPM
Credit Agreement” shall mean that certain Credit, Security, Pledge and
Guaranty Agreement, dated as of January 23, 2008, by and among, inter alios, the Borrower,
Eagle Eye Entertainment Inc., as successor to Toronto Theater Ltd., the
guarantors and lenders named therein, and the JPM Administrative Agent, as
amended by that certain Amendment No. 1 to the JPM Credit Agreement, dated as of
August 22, 2008, that certain Amendment No. 2, dated as of
December 22, 2009, that certain Amendment No. 3, Consent and Waiver
dated as of May 25, 2010 and that certain Amendment No. 4 dated as of
November 3, 2010 and as the same may be further amended, restated,
supplemented or otherwise modified from time to time in accordance with Section
6.12.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    “JPM
Obligations” shall have the meaning given to the term “Obligations” in
the JPM Credit Agreement.

     

    “Lender”
shall have the meaning given to such term in the preamble of this Credit
Agreement, and shall include any assignee of the Lender pursuant to Section 13.3
hereof.

     

    “Level 1
Earnout Amount” shall mean $7,500,000 plus
the Level 1 Regulatory Earnout Amount, if any.

     

    “Level 1
Regulatory Earnout Amount” shall mean the applicable portion of any
reduction to the principal amount of the Loan (in accordance with the terms of
this Credit Agreement) as a result of any Adverse Ticketing Regulations
Event.

     

    “Level 2
Earnout Amount” shall mean $7,500,000 plus
the Level 2 Regulatory Earnout Amount, if any.

     

    “Level 2
Regulatory Earnout Amount” shall mean the applicable portion of any
reduction to the principal amount of the Loan (in accordance with the terms of
this Credit Agreement) as a result of any Adverse Ticketing Regulations
Event.

     

    “Lien”
shall mean any mortgage, copyright mortgage, pledge, security interest,
encumbrance, lien, encroachment, adverse claim, option, easement, right of way,
right of first refusal or first offer, covenant, restriction, occupancy right,
or charge of any kind whatsoever (including, without limitation, any conditional
sale or other title retention agreement, any agreement to grant a security
interest at a future date, any lease in the nature of security, and the filing
of, or agreement to give, any financing statement under the Uniform Commercial
Code of any jurisdiction).

     

    “Loan”
shall have the meaning given to such term in Section 2.1(a)
hereof.

     

    “Margin
Stock” shall be as defined in Regulation U and Regulation X of the
Board.

     

    “Material
Adverse Effect” shall mean a material adverse effect on (a) the
Collateral, business, operations, financial condition, prospects (which, for the
avoidance of doubt, shall not include projections or forward looking
statements), liabilities or capitalization of the Borrower and its Consolidated
Subsidiaries taken as a whole, (b) the ability of any Credit Party to perform
its obligations under any of the Fundamental Documents to which it is a party,
(c) the validity or enforceability of any of the Fundamental Documents, (d) the
rights, remedies, powers and privileges of the Lender under any of the
Fundamental Documents or (e) the ability of the Borrower to make timely payment
of the Obligations when due.

     

    “Material
Agreements” shall mean each contract or agreement to which a Collateral
Party is a party that, individually or in the aggregate, accounts for ten
percent (10%) or more of the revenues or expenses of the Collateral Parties in
any calendar year.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    “Material
Hollywood IP” means the “broadway.com” domain name, the “1-800-Broadway”
toll-free telephone number and the website, databases and ticketing software
associated therewith.

     

    “Maturity
Date” shall mean the five year anniversary of the Closing
Date.

     

    “Mortgages”
shall mean each of the mortgages, deeds of trust or equivalent instruments (and
all related fixture filings) creating a Lien in or upon Real Property Assets
made by any Collateral Party in favor of, or for the benefit of, the Lender, in
form and substance acceptable to the Lender, as the same may be amended,
supplemented or otherwise modified from time to time.

     

    “Multiemployer
Plan”
shall mean a plan described in Section 4001(a)(3) of ERISA.

     

    “Net
Available Proceeds” shall mean: (a) in the case of any Disposition, the
amount of Net Cash Payments received in connection with such Disposition; and
(b) in the case of any Casualty Event, the aggregate amount of cash proceeds of
insurance, condemnation or expropriation awards and other compensation received
by the Company or any of its Subsidiaries in respect of such Casualty Event net
of (A) reasonable out-of-pocket expenses incurred by the Borrower or any of its
Subsidiaries in connection with the collection of same, (B) contractually
required payments of Indebtedness to the extent secured by a Lien on the
property subject to such Casualty Event, (C) any income taxes payable by the
Borrower or any of its Subsidiaries in respect of such Casualty Event and (D)
all amounts required to be repaid (and actually repaid) under the JPM Credit
Agreement.

     

    “Net Cash
Payments” shall mean, with respect to any Disposition, the aggregate
amount of all cash payments received by the Company or any of its Subsidiaries
directly or indirectly in connection with such Disposition; provided,
that (a) Net Cash Payments shall be net of any reasonable and bona fide
out-of-pocket costs incurred in connection with such Disposition, including (i)
the amount of any legal, title and recording tax expenses, commissions and other
fees and expenses paid by the Borrower or any of its Subsidiaries in connection
with such Disposition, (ii) any Federal, state, provincial and local income or
other taxes estimated to be payable by the Borrower or any of its Subsidiaries
as a result of such Disposition (but only to the extent that such estimated
taxes are in fact paid to the relevant Governmental Authority within three (3)
months of the date of such Disposition or reserved pending later payment or
distribution for payment of taxes) and (iii) all amounts required to be repaid
(and actually repaid) under the JPM Credit Agreement.

     

    “Note”
shall have the meaning given to such term in Section 2.3(a)
hereof.

     

    “Notice
of Assignment and Irrevocable Instructions” shall mean a Notice of
Assignment and Irrevocable Instructions in form and substance reasonably
satisfactory to the Lender.

     

    “Obligations”
shall mean (A) the obligation of the Borrower to make due and punctual payment
of principal of and interest on the Loan, costs and attorneys’ fees and all
other monetary obligations of the Borrower to the Lender under this Credit
Agreement, the Note, any other Fundamental Document and (B) the performance
obligations of the Borrower and the Credit Parties under this Credit Agreement
and the other Fundamental Documents.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    “Other
Taxes” shall mean any and all present or future stamp or documentary
taxes or any other excise or property taxes, charges or similar levies arising
from any payment made hereunder or from the execution, delivery or enforcement
of, or otherwise with respect to, this Credit Agreement.

     

    “PBGC”
shall mean the Pension Benefit Guaranty Corporation or any successor
thereto.

     

    “Pension
Plan” shall mean any “pension plan” (within the
meaning of Section 3(2) of ERISA) other than a Multiemployer Plan, which is
subject to Section 412 of the Code or Section 302 of ERISA and is subject to
Title IV of ERISA and that is maintained or contributed to by any Credit Party
or by any ERISA Affiliate.

     

    “Permitted
Encumbrances” shall mean the Liens permitted under subclauses (a) and (c)
of Section 6.2
hereof, Liens under the JPM Credit Agreement, Liens existing prior to the date
hereof or Liens arising due to (i) the actions or omissions of the Lender or any
Collateral Party prior to the date hereof or (ii) facts or circumstances
existing prior to the date hereof.

     

    “Person”
shall mean any natural person, corporation, partnership, trust, Joint Venture,
association, company, estate, unincorporated organization or government or any
agency or political subdivision thereof.

     

    “Plan”
shall mean an employee benefit plan within the meaning of Section 3(3) of ERISA,
other than a Multiemployer Plan or a Pension Plan, maintained or contributed to
by any Credit Party, or by any ERISA Affiliate.

     

    “Pledged
Collateral” shall mean the Pledged Securities and any proceeds (as
defined in Section 9-102(a)(64) of the UCC) of the Pledged
Securities.

     

    “Pledged
Securities” shall mean the Domestic Pledged Securities and the Foreign
Pledged Securities.

     

    “Pledgors”
shall mean each Credit Party that owns any of the Pledged
Securities.

     

    “Real
Property Assets” shall mean as of any time, all parcels of real property,
owned directly or indirectly, or leased, managed or operated at such time by any
Collateral Party, together with in each case, all buildings, improvements,
appurtenant fixtures and equipment, easements and other property and rights
incidental or appurtenant to the ownership, lease, management or operation (as
applicable) of such parcel of real property or any of the foregoing (in case of
any property subject to a Mortgage, Real Property Assets shall include all items
intended to be mortgaged by such Mortgage).

     

    “Regulation
T,” “Regulation
U” or “Regulation
X” shall mean such regulation of the Board as from time to time in effect
and all official rulings and interpretations thereunder or thereof.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    “Release”
shall have the meaning given to such term in the JPM Credit
Agreement.

     

    “Reportable
Event” shall mean any reportable event as defined in Section 4043(c) of
ERISA, other than a reportable event as to which provision for 30-day notice to
the PBGC has been or would have been waived under applicable regulations had the
regulations in effect on the Closing Date been in effect on the date of
occurrence of such Reportable Event.

     

    “Restricted
Payment” shall mean (i) any distribution, cash dividend or other direct
or indirect payment on account of shares of any Equity Interest in any Credit
Party, (ii) any redemption or other acquisition, re-acquisition or retirement by
a Credit Party of any Equity Interest in any Credit Party or an Affiliate of any
Credit Party, now or hereafter outstanding, (iii) any payment made to retire, or
obtain the surrender of, any outstanding warrants, puts or options or other
rights to purchase or otherwise acquire any Equity Interest in any Credit Party
or an Affiliate of any Credit Party, now or hereafter outstanding, (iv) any
payment under any Synthetic Purchase Agreement, and (v) any payment under any
Subordinated Debt.

     

    “Submitting
Party” shall have the meaning given to such term in Section 13.13
hereof

     

    “Subordinated
Creditors” shall have the meaning given to such term in the definition of
“Subordinated
Debt”.

     

    “Subordinated
Debt” shall mean all Indebtedness of any of the Credit Parties that is
subordinated to the Obligations pursuant to written intercreditor and
subordination agreements with the lenders or holders thereof and any agent or
trustee acting on their behalf (collectively, the “Subordinated
Creditors”) satisfactory to the Lender in its sole discretion, containing
interest rates, payment terms, maturities, amortization schedules, covenants,
defaults, remedies, subordination provisions and other material terms in form
and substance satisfactory to the Lender in its sole discretion.

     

    “Subsidiary”
shall mean, with respect to any Person, any corporation, association, Joint
Venture, partnership, limited liability company or other business entity
(whether now existing or hereafter organized) of which at least a majority of
the voting stock or other ownership interests having ordinary voting power for
the election of directors (or the equivalent) is, at the time as of which any
determination is being made, owned or controlled by such Person or one or more
subsidiaries of such Person or by such Person and one or more subsidiaries of
such Person.  Notwithstanding the foregoing, unless otherwise
specified, all references herein to a “Subsidiary” or to “Subsidiaries” of the Borrower
shall exclude the Joint Ventures.

     

    “Swap
Agreement” means any agreement with respect to any swap, forward, future
or derivative transaction or option or similar agreement involving, or settled
by reference to, one or more rates, currencies, commodities, equity or debt
instruments or securities, or economic, financial or pricing indices or measures
of economic, financial or pricing risk or value or any similar transaction or
any combination of these transactions; provided,
that no phantom stock or similar plan providing for payments only on account of
services provided by current or former directors, officers, employees or
consultants of any Credit Party shall be a Swap Agreement.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    “Synthetic
Purchase Agreement” means any Swap Agreement or similar agreement or
combination of agreements pursuant to which any Credit Party is or may become
obligated to make (i) any payment in connection with a purchase by any third
party from a Person other than a Credit Party of any Equity Interest in any
Credit Party or any subordinated Indebtedness, or (ii) any payment (other than
on account of a permitted purchase by it of any Equity Interest in any Credit
Party or any subordinated Indebtedness) the amount of which is determined by
reference to the price or value at any time of any Equity Interest in any Credit
Party or any subordinated Indebtedness; provided,
that no phantom stock or similar plan providing for payments only on account of
services provided by current or former directors, officers, employees or
consultants of a Credit Party or its Subsidiaries shall be a Synthetic Purchase
Agreement.

     

    “Taxes”
shall mean any and all present or future taxes, levies, imposts, duties,
deductions, charges or withholdings or similar charges in the nature of a tax
imposed by any Governmental Authority, together with any interest, fines and
penalties with respect thereto.

     

    “Theatre
Direct Companies” means the Company and each of its Subsidiaries; and
“Theatre
Direct Company” means any of them.

     

    “Trademark
Security Agreement” shall mean a Trademark Security Agreement
substantially in the form of Exhibit C hereto to
be executed by each applicable Collateral Party, as such agreement may be
amended, supplemented or otherwise modified, renewed or replaced from time to
time.

     

    “Transition
Services Agreement” shall mean that certain Transition Services
Agreement, by and between Hollywood and the Borrower, dated as of even date
herewith.

     

    “UCC”
shall mean the Uniform Commercial Code as in effect in the State of New York on
the date of execution of this Credit Agreement (as amended from time to
time).

     

    “United
States” or “US”
shall mean the United States of America.

     

    “Unpledged
Securities” shall mean Equity Interests (a) in any Theatre Direct Company
as to which the Lender shall have determined in its sole discretion that the
cost of perfecting a Lien thereon is disproportionate to the benefit to be
realized by the Lender, (b) in any Subsidiary of the Company that is not a
First-Tier Foreign Subsidiary or (c) in excess of sixty-five percent (65%) of
the Equity Interests in any First-Tier Foreign Subsidiary.

     

    “USA
Patriot Act” shall mean the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA
Patriot Act of 2001).

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    ARTICLE
2  –   THE LOAN

     

    Section
2.1                          Loan.

     

    (a)           The
Lender agrees, upon the terms and subject to the conditions hereof, to make a
loan to the Borrower (the “Loan”)
for the purpose set out in Section 5.17, on the
Closing Date, in an aggregate principal amount equal to $8,500,000, and the Loan
shall be deemed to be made in connection with the payment of consideration for
the closing of the Hollywood Acquisition.

     

    (b)           Any
amounts repaid hereunder may not be reborrowed.

     

    Section
2.2                          [Intentionally Left
Blank]

     

    Section
2.3                          Note:
Repayment.

     

    (a)           If
requested by the Lender, the Loan shall be evidenced by a note in the Lender’s
favor substantially in the form of Exhibit A hereto (the
“Note”)
in the face amount of the Loan, payable to the order of the Lender, duly
executed by the Borrower and dated as of the Closing Date.

     

    (b)           The
outstanding principal balance of the Loan shall be payable in full on the
Maturity Date, subject to mandatory prepayment as provided in Section 2.4 hereof
and acceleration as provided in Article 7
hereof.

     

    (c)           The
Loan shall bear interest on the outstanding principal balance thereof as set
forth in Section
2.5 hereof.  The Lender is hereby authorized by the Borrower,
but not obligated, to enter the amount of the Loan and the amount of each
payment or prepayment of principal or interest thereon in the appropriate spaces
on the reverse of or on an attachment to the Note; provided,
however,
that the failure of the Lender to set forth such Loan, any principal payments or
any other information on the Note shall not in any manner affect the obligations
of the Borrower to repay the Loan.

     

    Section
2.4                          Reduction of the Loan;
Mandatory Repayments.

     

    (a)           Subject
to the Intercreditor Agreement, upon the occurrence of any Disposition, the
Borrower shall prepay the Facility in an amount equal to the Net Available
Proceeds of such Disposition.

     

    (b)           If
a Change in Control occurs, or there is a sale of all or substantially all of
the assets of the Company or the Borrower, then the outstanding Loan, together
with accrued and unpaid interest and all other amounts accrued and outstanding
under the Fundamental Documents, shall become immediately due and
payable.

     

    (c)           To
the extent that an Adverse Ticketing Regulations Event occurs, subject to the
proviso at the end of this paragraph (c), the Loan shall be deemed to be prepaid
in an amount equal to the Adverse Ticketing Regulations Reduction Amount; provided,
however,
if the entire Earnout Amount has then been earned, there will be no Adverse
Ticketing Regulations Reduction Amount applied to the Loan.

     

    
      
         

      

      
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    Section
2.5                         Interest.

     

    (a)           Interest
shall be payable at a rate per
annum (computed on the basis of the actual number of days elapsed over a
year of 360 days) equal to twelve per cent (12%). Interest shall be payable on
each applicable Interest Payment Date and on the Maturity Date.

     

    (b)           Anything
in this Credit Agreement or the Note to the contrary notwithstanding, the
interest rate on the Loan shall in no event be in excess of the maximum
permitted by Applicable Law.

     

    Section
2.6                         Default
Interest.  If the Borrower
shall default in the payment when due of the principal of, or interest on the
Loan becoming due hereunder, whether at stated maturity, by acceleration or
otherwise, or the payment of any other amount becoming due hereunder after
written notification from the Lender to the Borrower of such amount, the Lender
may demand in writing that the Borrower from time to time pay, and the Borrower
shall pay, interest, to the extent permitted by Applicable Law, on overdue
amounts outstanding from the due date thereof up to the date of actual payment
of such defaulted amount (after as well as before judgment), at two percent (2%)
in excess of the rate then in effect for the Loan.

     

    Section
2.7                         Voluntary Prepayment of the
Loan; Reimbursement of the Lender.

     

    (a)           Subject
to the terms of paragraph (b) of this Section 2.7, the
Borrower shall have the right at its option at any time and from time to time to
prepay without premium or penalty the Loan, in whole or in part, upon at least
three (3) Business Days’ prior written, telephonic (promptly confirmed in
writing) or facsimile notice, in the principal amount of $25,000 or such greater
amount which is an integral multiple of $25,000 if prepaid in part, or the
remaining balance of the Loan if prepaid in full.  Each notice of
prepayment shall specify the prepayment date, and the principal amount thereof
shall be irrevocable and shall commit the Borrower to prepay the Loan in the
amount and on the date stated therein. All prepayments under this Section 2.7(a) shall
be accompanied by accrued but unpaid interest on the principal amount being
prepaid to (but not including) the date of prepayment.

     

    (b)           In
the event the Borrower fails to prepay the Loan on the date specified in any
prepayment notice delivered pursuant to paragraph (a) of this Section 2.7, the
Borrower shall pay to the Lender any amounts required to compensate the Lender
for any actual loss incurred by the Lender as a result of such failure to
prepay, including, without limitation, any loss, cost or expenses incurred by
the Lender to fulfill obligations incurred in anticipation of such
prepayment.  The Lender shall deliver to the Borrower from time to
time one or more certificates setting forth the amount of such loss (and in
reasonable detail the manner of computation thereof) as determined by the
Lender, which certificates shall be conclusive absent manifest
error.  The Borrower shall pay the Lender the amounts shown on such
certificate within thirty (30) days of the Borrower’ receipt of such
certificate.

     

    (c)           Except
as otherwise specifically provided in this Article 2, should any
payment or prepayment of principal of or interest on the Note or any other
amount due hereunder, become due and payable on a day other than a Business Day,
the due date of such payment or prepayment shall be extended to the next
succeeding Business Day and, in the case of a payment or prepayment of
principal, interest shall be payable thereon at the rate herein specified during
such extension.

    
      
         

      

      
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    Section
2.8                         Manner of
Payments.  All payments by
the Borrower hereunder and under the Note shall be made in Dollars in Federal or
other immediately available funds to the Lender, Attn. Mitchell Rubenstein, 560
Broadway, Suite 404, New York, New York 10012 (or such other address as shall be
notified in accordance with Section 13.1), no
later than 2:00 p.m., New York City time, on the date on which such payment
shall be due.  Interest in respect of the Loan shall accrue from and
including the date of the Loan to but excluding the date on which the Loan is
paid.

     

    Section
2.9                
         Taxes.

     

    (a)           Any
and all payments by or on account of any obligation of the Borrower hereunder
shall be made free and clear of and without deduction for any Indemnified Taxes
or Other Taxes; provided,
that if the Borrower shall be required to deduct any Indemnified Taxes or Other
Taxes from such payments, then (i) the sum payable shall be increased as
necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section) the Lender receives an
amount equal to the sum it would have received had no such deductions been made,
(ii) the Borrower shall make such deductions, and (iii) the Borrower shall pay
the full amount deducted to the relevant Governmental Authority in accordance
with Applicable Law.

     

    (b)           In
addition, the Borrower shall pay any Other Taxes to the relevant Governmental
Authority in accordance with Applicable Law.

     

    (c)           The
Borrower shall indemnify the Lender, within ten (10) Business Days after written
demand therefor, for the full amount of any Indemnified Taxes or Other Taxes
paid by the Lender on or with respect to any payment by or on account of any
obligation of the Borrower hereunder (including Indemnified Taxes or Other Taxes
imposed or asserted on or attributable to amounts payable under this Section 2.9) and any
penalties, interest and reasonable expenses arising therefrom or with respect
thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or
legally imposed or asserted by the relevant Governmental Authority.  A
certificate as to the amount of such payment or liability delivered to the
Borrower by the Lender or on behalf of the Lender shall be conclusive absent
manifest error.

     

    (d)           As
soon as practicable after any payment of Indemnified Taxes or Other Taxes by the
Borrower to a Governmental Authority, the Borrower shall deliver to the Lender
the original or a certified copy of a receipt issued by such Governmental
Authority evidencing such payment, a copy of the return reporting such payment
or other evidence of such payment reasonably satisfactory to the
Lender.

     

    (e)           The
Lender, if requested by the Borrower, shall deliver documentation prescribed by
Applicable Law or reasonably requested by the Borrower to enable the Borrower to
determine whether or not the Lender is subject to withholding, backup
withholding or information reporting requirements.

    
      
         

      

      
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    (f)           If
the Lender determines, in its sole discretion, that it has received a refund of
or any credit for any Taxes or Other Taxes as to which it has been indemnified
by the Borrower or with respect to which the Borrower has paid additional
amounts pursuant to this Section 2.9, it shall
pay over such refund or credit to the Borrower (but only to the extent of
indemnity payments made, or additional amounts paid, by the Borrower under this
Section 2.9
with respect to the Taxes or Other Taxes giving rise to such refund or credit),
net of all reasonable out-of-pocket expenses of the Lender and without interest
(other than any interest paid by the relevant Governmental Authority with
respect to such refund or credit); provided,
that the Borrower, upon the request of the Lender, agrees to repay the amount
paid over to the Borrower (plus any penalties, interest or other charges imposed
by the relevant Governmental Authority) to the Lender in the event the Lender is
required to repay such refund or credit to such Governmental
Authority.  This Section 2.9 shall not
be construed to require the Lender to make available its tax returns (or any
other information relating to its taxes which it deems confidential) to the
Borrower or any other Person.

     

    Section
2.10                       Interest
Adjustments.

     

    (a)           If
the provisions of this Credit Agreement or any Note would at any time require
payment by the Borrower to the Lender of any amount of interest in excess of the
maximum amount then permitted by Applicable Law, the interest payments to the
Lender shall be reduced to the extent necessary so that the Lender shall not
receive interest in excess of such maximum amount. If, as a result of the
foregoing, the Lender shall receive interest payments hereunder or under the
Note in an amount less than the amount otherwise provided hereunder, such
deficit (hereinafter called the “Interest
Deficit”) will, to the fullest extent permitted by Applicable Law,
cumulate and will be carried forward (without interest) until the termination of
this Credit Agreement. Interest otherwise payable to the Lender hereunder and
under the Note for any subsequent period shall be increased by the maximum
amount of the Interest Deficit that may be so added without causing the Lender
to receive interest in excess of the maximum amount then permitted by the law
applicable to the Loan.

     

    (b)           The
amount of any Interest Deficit relating to the Loan and the Note shall be
treated as a prepayment penalty and shall, to the fullest extent permitted by
Applicable Law, be paid in full at the time of any optional prepayment by the
Borrower to the Lender of the Loan at that time outstanding pursuant to Section 2.7(a)
hereof.  The amount of any Interest Deficit relating to the Loan and
the Note at the time of any complete payment of the Loan at that time
outstanding (other than an optional prepayment thereof pursuant to Section 2.7(a)
hereof) shall be canceled and not paid.

     

    ARTICLE
3   –  REPRESENTATIONS AND WARRANTIES

    OF
THE BORROWER

     

    In order
to induce the Lender to enter into this Credit Agreement and to make the Loan
provided for herein, the Borrower makes the following representations and
warranties on and as of the Closing Date (after giving effect to the execution
and delivery of the Fundamental Documents):

    
      
         

      

      
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    Section
3.1                         Existence and
Power.

     

    (a)           The
Borrower is a corporation duly incorporated, validly existing and in good
standing under the laws of the State of Delaware, its jurisdiction of
organization and is qualified to do business and in good standing in all
jurisdictions where the nature of its properties or business so requires except
as disclosed on Schedule 3.1 and
except where such failure to be so qualified would not (i) require payment of
any material tax, filing fees or other amounts or (ii) materially interfere with
the right of the Borrower to enter into valid and binding agreements and conduct
its business in the ordinary course.

     

    (b)           The
Borrower has the power and authority (i) to own its properties and carry on its
business as now being conducted and as intended to be conducted, (ii) to
execute, deliver and perform, as applicable, its obligations under the
Fundamental Documents and any other documents contemplated thereby to which it
is or will be a party, (iii) to borrow hereunder, and (iv) to grant to the
Lender, a security interest in the Pledged Securities, as contemplated by this
Credit Agreement and the other Fundamental Documents to which it is or will be a
party.

     

    (c)           Schedule 3.1 is a
correct and complete schedule showing (i) the Borrower’s legal name, (ii) the jurisdiction in which
it was incorporated, (iii) the location of its chief executive office and (iv)
all of the places where the Borrower keeps (or intends to keep) its books and
records.

     

    Section
3.2                         Authority
and No Violation.  The execution,
delivery and performance by the Borrower of this Credit Agreement and the other
Fundamental Documents to which it is a party, the grant to the Lender of the
security interest in the Pledged Securities as contemplated herein and by the
other Fundamental Documents and the execution, delivery and performance of the
Note (i) have been duly authorized by all necessary corporate action (or similar
action) on the part of the Borrower, (ii) will not constitute a violation of any
provision of Applicable Law or any order of any Governmental Authority
applicable to the Borrower or any of its properties or assets, in each case in
any material respect, (iii) will not violate any provision of the Certificate of
Incorporation or By-Laws of the Borrower, (iv) will not violate any provision of
any contract, agreement, indenture, bond, note or other similar instrument to
which the Borrower is a party or by which the Borrower or any of its properties
or assets are bound, other than where any such violation could not, either
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect, (v) will not be in conflict with, result in a material breach
of, or constitute (with due notice or lapse of time or both) a material default
under, or create any right to terminate, any Material Agreement of the Borrower
(other than a Material Agreement existing prior to or as of the Closing Date)
and (vi) will not result in the creation or imposition of any Lien, charge or
encumbrance of any nature whatsoever upon any of the properties or assets of the
Company other than as otherwise permitted by this Credit Agreement or the other
Fundamental Documents and other than pursuant to any agreement to which a
Theatre Direct Company is a party as of the Closing Date.

    
      
         

      

      
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    Section
3.3                         Governmental
Approval.  All
authorizations, approvals, registrations or filings from or with any
Governmental Authority required for the consummation of the execution, delivery
and performance by the Borrower of this Credit Agreement and the other
Fundamental Documents to which it is a party, and the execution and delivery by
the Borrower of the Note, have been duly obtained or made or duly applied for,
and are in full force and effect, except for immaterial violations that could
not reasonably be expected to (and would not if enforced by the relevant
Governmental Authority) result in a requirement that the Borrower pay a material
amount of money or the imposition of any fine or other enforcement action
against the Lender, and could not reasonably be expected to (and could not if
enforced by the relevant Governmental Authority) have a Material Adverse Effect;
and if any further authorizations, approvals, registrations or filings should
hereafter become necessary, the Borrower shall obtain or make all such
authorizations, approvals, registrations or filings.

     

    Section
3.4                         Binding
Agreements.  This Credit
Agreement and the other Fundamental Documents when executed, will constitute the
legal, valid and binding obligations of each Credit Party that is a party
thereto, enforceable against such Credit Party in accordance with their
respective terms, subject, as to the enforcement of remedies, to applicable
bankruptcy, insolvency, reorganization and similar laws affecting creditors’
rights generally and to general principles of equity.

     

    Section
3.5                         Federal
Reserve Regulations.  The Borrower is
not engaged principally or as one of its important activities, in the business
of extending credit for the purpose of purchasing or carrying any Margin
Stock.  No part of the proceeds of the Loan will be used, directly or
indirectly, whether immediately, incidentally or ultimately (i) to purchase or
carry any Margin Stock or to extend credit to others for the purpose of
purchasing or carrying any Margin Stock or (ii) for any other purpose, in each
case, violative of or inconsistent with any of the provisions of any regulation
of the Board, including, without limitation, Regulations T, U and X
thereto.

     

    Section
3.6                         Investment
Company Act.  The Borrower is
not, nor will it during the term of this Credit Agreement be, (i) an “investment company,” within
the meaning of the Investment Company Act of 1940, as amended, or (ii) subject
to regulation under the Federal Power Act or any foreign, federal or local
statute or any other Applicable Law of the United States or any other
jurisdiction, in each case limiting its ability to incur indebtedness for money
borrowed as contemplated hereby or by any other Fundamental
Document.

     

    Section
3.7                         Taxes.  The Borrower has
filed or caused to be filed all federal and all material state, local and
foreign tax returns which are required to be filed with any Governmental
Authority after giving effect to applicable extensions, and has paid or has
caused to be paid all Taxes as shown on said returns which, if not paid, could
become an obligation of any Theatre Direct Company or could become a Lien on the
Collateral or, on any assessment received by the Borrower in writing which, if
not paid, could become an obligation of any Theatre Direct Company or could
become a Lien on the Collateral, to the extent that such taxes have become due,
except as permitted by Section 5.11
hereof.  The Borrower does not know of any material additional
assessments or any basis therefor which, if not paid, could become an obligation
of any Theatre Direct Company or could become a Lien on the
Collateral.  To the Borrower’s knowledge, the charges, accrual and
reserves on its books in respect of taxes or other governmental charges are
adequate in accordance with GAAP.

    
      
         

      

      
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    Section
3.8                         Compliance
with ERISA.  Except as could
not reasonably be expected to result in a Material Adverse Effect, each of the
Borrower’s Plans has been maintained and operated by the Borrower in all
respects in accordance with all Applicable Laws, including ERISA and the Code,
each Plan (if any) intended to qualify under Section 401(a) of the Code so
qualifies, no Reportable Event has occurred since January 23, 2008 as to any
Plan of the Borrower, and the present value of all benefits under all Pension
Plans (based on those assumptions used to fund such Plans) did not, in the
aggregate, as of the last annual valuation date applicable thereto, exceed the
actuarial value of the assets of such Pension Plans.  Except as
disclosed on Schedule
3.8 or
as could not reasonably be expected to result in a Material Adverse Effect, no
liability has been, and, to the knowledge of the Borrower, no circumstances
exist, in either case, pursuant to which any liability is reasonably likely to
be imposed upon the Borrower which, if not paid, could become an obligation of
any Theatre Direct Company or could become a Lien on the Collateral (i) under
Sections 4971 through 4980E of the Code, Sections 502(i) or 502(1) of ERISA, or
Title IV of ERISA with respect to any Plan, Pension Plan or Multiemployer Plan,
(ii) for the failure to fulfill any obligation to contribute to any
Multiemployer Plan, or (iii) with respect to any Plan that provides
post-retirement welfare coverage (other than as required pursuant to Section
4980B of the Code or other Applicable Law).  Neither the Borrower nor
any ERISA Affiliate has received any notification that any Multiemployer Plan is
in reorganization or has been terminated within the meaning of Title IV of
ERISA, and, to the knowledge of the Borrower, no Multiemployer Plan is
reasonably expected to be in reorganization or to be terminated.

     

    Section
3.9                         Security
Interest.  This Credit
Agreement and the other Fundamental Documents, when executed and delivered and,
upon making of the Loan hereunder, will create and grant to the Lender upon (i)
the filing of the appropriate UCC-1 financing statements with the filing offices
listed on Schedule
3.9, (ii) the filing of the Copyright Security Agreements with the U.S.
Copyright Office, (iii) the filing of the Trademark Security Agreement with the
U.S. Patent and Trademark Office, and (iv) the delivery of the Pledged
Securities with appropriate stock powers to the Lender, valid and second
priority perfected security interests in the Collateral (except for those
Permitted Encumbrances that have priority over the Liens of the
Lender).

     

    Section
3.10                       Pledged
Securities.

     

    (a)           All
of the Pledged Securities are free and clear of any Liens granted by the
Borrower, other than (i) those created pursuant to this Credit Agreement, and
(ii) the Permitted
Encumbrances, and there are no restrictions on the transfer of the Pledged
Securities granted by the Borrower other than as a result of this Credit
Agreement or applicable securities laws and the regulations promulgated
thereunder.  The Borrower is the holder of the Pledged Securities of
the Company transferred by the Lender pursuant to the Hollywood
SPA.

     

    (b)           Article 10 of this
Credit Agreement creates in favor of the Lender a valid, binding and enforceable
security interest in, and Lien upon, all right, title and interest of the
respective Pledgors in the Pledged Securities owned by them and constitutes a
perfected security interest and Lien upon all right, title and interest of the
Pledgors in such Pledged Securities (provided,
that the definitive instruments (if any) representing all Pledged Securities
shall have been delivered to the Lender (or to the JPM Administrative Agent as
gratuitous bailee for the Lender) (and the Lender (or the JPM Administrative
Agent) has taken possession or control of such Pledged Securities in New York)
together (in the case of Pledged Securities comprising capital stock) with
appropriate undated stock powers endorsed or executed in blank by the
appropriate Pledgor as required under Section 10.1
hereof).

    
      
         

      

      
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    Section
3.11                      Compliance
with Laws.  The Borrower is
not in violation of any Applicable Law except for such violations in the
aggregate which could not reasonably be expected to have a Material Adverse
Effect.  The Loan made hereunder and the intended use of the proceeds
of the Loan as described in the Introductory Statement hereto and as
contemplated by Section 5.17 hereof
will not violate any Applicable Law applicable to the Borrower.

     

    Section
3.12                       Solvency.  The Borrower has
not entered, nor is it entering into, the arrangements contemplated hereby and
by the other Fundamental Documents, nor does it intend to make any transfer or
incur any obligations hereunder or thereunder, with actual intent to hinder,
delay or defraud either present or future creditors.  On and as of the
Closing Date, on a pro
forma basis after giving effect to all Indebtedness (including the Loan)
and all rights to contribution: (i) the Borrower believes that the sum of the
present fair saleable value of the assets of the Borrower and the Theatre Direct
Companies will exceed the probable liability of the Borrower and the Theatre
Direct Companies on their debts; and (ii) the Borrower believes that it and the
Theatre Direct Companies will not have incurred nor intend to, nor believes that
they will incur, debts beyond their ability to pay such debts as such debts
mature (taking into account the timing and amounts of cash to be received by the
Borrower and the Theatre Direct Companies from any source) and (iii) the Borrower believes that
it and the Theatre Direct Companies will have sufficient capital with which to
conduct its and their present and proposed businesses and that the property of
the Borrower and the Theatre Direct Companies does not constitute unreasonably
small capital with which to conduct their present or proposed
business.  For purposes of this Section 3.12, “debt” means any liability or
a claim. and “claim”
means any (y) right to payment whether or not such right is reduced to judgment.
liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed,
undisputed, legal, equitable, secured or unsecured, or (z) right to an equitable
remedy for breach of performance if such breach gives rise to a payment, whether
or not such right is reduced to judgment, liquidated, unliquidated, fixed,
contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured
or unsecured.

     

    ARTICLE
4   –   DELIVERY OF DOCUMENTS

     

    Section
4.1                         Concurrently
with the execution hereof, the Borrower shall deliver to the Lender the
following:

     

    (a)           Certificate
of Good Standing.  A certificate of the Secretary of State of
Delaware, dated as of a recent date, as to the good standing of the
Borrower.

     

    (b)           Credit
Agreement; Note.  An
executed counterpart of this Credit Agreement which bear the signatures of the
Credit Parties and if requested by the Lender, the Note executed by the Borrower
in favor of the Lender.

     

    (c)           Security
and Other Documentation.  Fully executed copies of: (i) a
Copyright Security Agreement listing each U.S. copyright registered, applied for
or acquired by any Collateral Party (to the extent listed on Schedule 5.13(a)
to the Hollywood SPA) executed by each such Collateral Party; (ii) a Trademark
Security Agreement for each trademark in which any Collateral Party has any
registered interest (as listed on Schedule 5.13(a)
to the Hollywood SPA) executed by each such Collateral Party; (iii) appropriate
UCC-1 financing statements relating to the Collateral; and (iv) all certificates
evidencing any of the Pledged Securities required to be delivered to the Lender
with appropriate undated stock or transfer powers executed in
blank.

    
      
         

      

      
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    (d)           JPM
Credit Agreement.  A copy, certified as true and correct, of
the JPM Credit Agreement, together with all amendments thereto up to the Closing
Date.

     

    (e)           Hollywood
Warrants.  The Hollywood Warrants required to be issued to the
Lender in connection with the Hollywood Acquisition.

     

    Section
4.2                         Conditions
Precedent to the Loan.  The occurrence of
the Closing Date shall be subject to the satisfaction of the following
conditions precedent:

     

    (a)           Representations
and Warranties. The representations and warranties set forth in Article 3 hereof and
in the other Fundamental Documents shall be true and correct in all material
respects on and as of the Closing Date.

     

    (b)           No Event
of Default. The officer executing this Credit Agreement has no actual
knowledge (after due inquiry) that, on the Closing Date, a Default or Event of
Default shall have occurred and be continuing, or a Default or Event of Default
shall occur by reason of the making of the Loan.

     

    The
execution and delivery of this Credit Agreement shall be deemed to be a
representation and warranty by the Borrower on the Closing Date as to the
matters specified in this Section
4.2.

     

    ARTICLE
5   –   AFFIRMATIVE COVENANTS

     

    From the
Closing Date and for so long as any amount shall remain outstanding under any
Note or any monetary Obligation then due and payable shall remain unpaid or
unsatisfied, each Credit Party agrees that, unless the Lender shall otherwise
consent in writing, each of them will, and will cause each of the Theatre Direct
Companies to:

     

    Section
5.1                         Financial
Statements and Reports.  Furnish or cause
to be furnished to the Lender in electronic or hard form:

     

    (a)           commencing
with the fiscal year ending June 30, 2011 and within the time periods
during which they are required to be submitted under the JPM Credit Agreement,
the annual audited financial statements required to be provided in Section
5.1(a) of the JPM Credit Agreement;

     

    (b)           commencing
with the fiscal quarter ending December 31, 2010 and within the time periods
during which they are required to be submitted under the JPM Credit Agreement,
the quarterly unaudited financial statements required to be provided in Section
5.1(b) of the JPM Credit Agreement;

    
      
         

      

      
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    (c)           simultaneously
with the delivery of the statements referred to in paragraphs (a) and (b) of
this Section
5.1, a certificate of an Authorized Officer of the Borrower, in the form
provided under the JPM Credit Agreement (A) stating whether or not such
Authorized Officer has actual knowledge, after due inquiry, of any condition or
event which would constitute an Event of Default or Default and, if so,
specifying each such condition or event, the nature thereof and any action taken
or proposed to be taken with respect thereto, (B) stating whether any change in
GAAP or in the application thereof has occurred since the date of the most
recent audited financial statements delivered to the Lender and, if any such
change has occurred, specifying the effect of such change on the financial
statements accompanying such certificate, and (C) identifying any changes of the
type described in Section 6.9 that have
not been previously reported by a Credit Party;

     

    (d)           within
ten (10) Business Days of receipt thereof by a Credit Party, copies of all
management letters issued to such Person by its auditors;

     

    (e)           within
the time periods during which they are required to be submitted under the JPM
Credit Agreement as in effect on the Closing Date, copies of (i) all
registration statements, proxy statements, notices and reports and (ii) all reports, financial
statements, press releases and other information required to be provided in
Section 5.1(f) of the JPM Credit Agreement;

     

    (f)           within
the time periods during which they are required to be submitted under the JPM
Credit Agreement as in effect on the Closing Date, a copy of the brief narrative
report by management required to be provided in Section 5.1(h) of the JPM Credit
Agreement;

     

    (g)           promptly,
notice of any change in, or withdrawal of, the auditors from time to time
engaged by the Credit Parties for purposes of their periodic independent
financial statement audits; and

     

    (h)           promptly
upon request therefor, any information required by the Lender under or in
connection with the USA Patriot Act.

     

    Section
5.2                         Corporate
Existence; Compliance with Laws.  Do or cause to be
done all things necessary to (i) preserve, renew and keep in full force and
effect (x) the legal existence of the Credit Parties and (y) the rights,
licenses, permits and franchises of the Theatre Direct Companies and (ii) cause
the Theatre Direct Companies to comply with all applicable statutes, regulations
and orders of, and all applicable restrictions imposed by, any Governmental
Authority, except (A) as otherwise permitted under Section 6.6 or (B) in
the case of clauses (i)(y) and (ii) above, where the failure to do so could not
reasonably be expected to result in a Material Adverse Effect.

     

    Section
5.3                         Maintenance
of Properties.  Comply with the
requirements relating to maintenance and repair of properties of the Theatre
Direct Companies and compliance with the terms of material leases of the Theatre
Direct Companies and other material agreements relating to properties of the
Theatre Direct Companies as required in Section 5.3 of the JPM Credit
Agreement.

    
      
         

      

      
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    Section
5.4                         Notice of
Material Events.  Promptly upon any
executive officer of any Credit Party obtaining knowledge of (i) the institution
of, or written threat of, any action, suit, proceeding, investigation or
arbitration by any Governmental Authority or other Person against or affecting
any Theatre Direct Company or any of a Theatre Direct Company’s assets, any
Material Agreement, or any copyright or trademark owned by or licensed to a
Theatre Direct Company which, if adversely determined, could reasonably be
expected to have a Material Adverse Effect or (ii) any material development in
any such action, suit, proceeding, investigation or arbitration (whether or not
previously disclosed to the Lender), such Credit Party shall promptly give
written notice thereof to the Lender and provide such other material information
(other than information subject, in the good faith opinion of counsel to such
Credit Party (including internal counsel), to an attorney-client privilege) as
may be available to it to enable the Lender to evaluate such matters; and, in
addition to the requirements set forth in clauses (i) and (ii) of this Section 5.4, such
Credit Party upon request shall promptly give notice of the status of any
action, suit, proceeding, investigation or arbitration covered by a report
delivered to the Lender pursuant to clause (i) and (ii) above to the
Lender.

     

    Section
5.5                         Insurance.  Keep assets of
each Theatre Direct Company which are of an insurable character insured as
required in Section 5.5 of the JPM Credit Agreement.

     

    Section
5.6                         Copyrights and
Trademarks.

     

    (a)           As
soon as practicable (but not more than forty-five (45) days (or such longer
period as may be approved by the Lender) after the end of the calendar month in
which the applicable work is completed or rights in the applicable work are
acquired), to the extent any Theatre Direct Company is or becomes the copyright
proprietor thereof, or otherwise acquires a copyrightable interest in, any
material copyright or work eligible for copyright registration, in the name of
such Theatre Direct Company, other than unregistered copyrights existing on the
Closing Date, take any and all actions necessary to file registrations for the
copyright for such copyright or work in the name of such Theatre Direct Company
(and shall cause such registered copyrights to be subject to a Lien in favor of
the Lender pursuant to a Copyright Security Agreement, at such times as required
and otherwise in compliance with the relevant provisions of this Credit
Agreement) in conformity with the laws of the United States.

     

    (b)           Except
to the extent that the failure so to do would not in the aggregate reasonably be
expected to have a Material Adverse Effect, maintain all trademark and trade
name registrations and prosecute all trademark and trade name applications in
the name of the applicable Theatre Direct Company, and take any and all actions
necessary to register any trademarks and trade names as such Theatre Direct
Company may use which are of substantial value to such Theatre Direct Company in
the name of such Theatre Direct Company in conformity with the laws of the
United States and such other jurisdictions as may be appropriate, and deliver to
the Lender, on a quarterly basis (at the time of delivery of financial
statements under Sections 5.1(a) and
(b) hereof),
written evidence of the registration of any and all such trademarks and trade
names for inclusion in the Collateral under this Credit Agreement, except no
trademark or tradename of a Theatre Direct Company which is not registered as of
the Closing Date needs to be registered.  Within forty-five (45) days
(or such longer period as may be approved by the Lender) following the end of
each calendar quarter, each Theatre Direct Company shall prepare and record with
the appropriate office supplemental Trademark Security Agreements, with respect
to the registered trademarks and trade names created, applied for, or acquired
by a Theatre Direct Company during such preceding quarter; provided,
that supplemental Trademark Security Agreements with respect to the registered
trademarks and trade names acquired by a Theatre Direct Company shall be
prepared and recorded promptly (and in any case within thirty (30) days) (or
such longer period as may be approved by the Lender) following such
acquisition.

    
      
         

      

      
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    Section
5.7                         Books and
Records.   Maintain or
cause to be maintained at all times true and complete books and records of the
Theatre Direct Companies’ financial operations and, subject to Section 13.18,
provide the Lender and its representatives access to such books and records and
to any of the properties or assets of the Theatre Direct Companies upon
reasonable advance notice, at reasonable intervals and during regular business
hours in order that the Lender may make such audits and examinations and make
abstracts from such books, accounts, records and other papers pertaining to the
Collateral and upon reasonable advance notification to the Credit Parties and at
reasonable intervals and during regular business hours, permit the Lender or its
representatives to discuss the affairs, finances and accounts of the Theatre
Direct Companies with, and be advised as to the same by, the Credit Parties’
officers and, in the presence of representatives of the Credit Parties, their
independent accountants, for the purpose of verifying the accuracy of the
various reports of the Theatre Direct Companies delivered by any Credit Party to
the Lender pursuant to this Credit Agreement or for otherwise ascertaining
compliance with this Credit Agreement or any other Fundamental
Document.

     

    Section
5.8                         Third
Party Audit Rights.  Allow the Lender,
subject to Section
13.18, access to the results of all audits conducted by any Theatre
Direct Company of any third party licensee, any partnership in which a Theatre
Direct Company is a partner or Joint Venture in which a Theatre Direct Company
is an owner. When an Event of Default has occurred and is continuing, the
Theatre Direct Companies shall, promptly upon written request of the Lender,
exercise such Theatre Direct Company’s right to audit such third party licensee,
partnership or joint ventures; provided,
that if any such Theatre Direct Company fails to exercise such right within ten
(10) Business Days of such request, Lender may, and hereby is authorized to,
exercise such audit rights directly on the Theatre Direct Company’s behalf to
the extent such rights are available to a Theatre Direct Company.

     

    Section
5.9                         Observance
of Agreements.  Duly observe and
perform all terms and conditions of each Material Agreement, and immediately
deliver to the Lender true and correct copies of any amendments or other
modifications of any Material Agreements.

     

    Section
5.10                       Lease
Agreements.  From time to time
(i) furnish to the Lender such information and reports regarding any lease,
management or operating agreement with respect to a Real Property Asset as the
Lender may reasonably request and (ii) upon the occurrence and continuation of
an Event of Default and upon the reasonable request of the Lender, make such
demands and requests for information, reports or action to the other parties to
a lease agreement to which a Theatre Direct Company is a party, as such Theatre
Direct Company is entitled to make.

     

    Section
5.11                       Taxes and
Charges; Indebtedness in Ordinary Course of Business.  Duly pay and
discharge, or cause to be paid and discharged, before the same shall become in
arrears (after giving effect to applicable extensions), all Taxes imposed upon
any Theatre Direct Company or its properties, sales and activities, or any part
thereof, or upon the income or profits therefrom, as well as all claims for
labor, materials, or supplies which if unpaid might by law become a Lien upon
any property of any Theatre Direct Company, other than any Taxes where the
existence thereof would constitute a breach of the representations of the Lender
under the Hollywood SPA or claims for labor, materials, or supplies provided
prior to the Closing Date.

    
      
         

      

      
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    Section
5.12                      Liens.  Defend the
Collateral (including, without limitation, the Pledged Securities) against any
and all Liens and adverse claims howsoever arising, other than Permitted
Encumbrances, and in each case defend against any attempted foreclosure, other
than foreclosures of Permitted Encumbrances.

     

    Section
5.13                       Further Assurances; Security
Interests.

     

    (a)           Upon
the request of the Lender, promptly execute and deliver or cause to be executed
and delivered, at the cost and expense of the Credit Parties, such further
instruments as may be appropriate in the reasonable judgment of the Lender, to
provide the Lender a second priority perfected Lien in the Collateral (except
for those Permitted Encumbrances that have priority over the Liens granted
pursuant to this Credit Agreement) and any and all documents (including, without
limitation, the execution, amendment or supplementation of any financing
statement and continuation statement or other statement and the filing of
termination statements for each of the Liens indicated on Schedule 6.2 of the
JPM Credit Agreement for which the underlying obligation is no longer
outstanding) for filing under the provisions of the UCC and the rules and
regulations thereunder, or any other Applicable Law, and perform or cause to be
performed such other ministerial acts which are reasonably necessary or
advisable, from time to time, in order to grant and maintain in favor of the
Lender the security interest in the Collateral contemplated hereunder and under
the other Fundamental Documents, subject only to Permitted
Encumbrances.

     

    (b)           Promptly
undertake to deliver or cause to be delivered to the Lender from time to time
such other documentation, consents, authorizations and approvals in form and
substance reasonably satisfactory to the Lender as the Lender shall deem
reasonably necessary or advisable to perfect or maintain the Liens in the
Collateral of the Lender.

     

    Section
5.14                      ERISA
Compliance and Reports.  Furnish to the
Lender evidence of ERISA compliance by the Borrower and the Theatre Direct
Companies and all ERISA reports of the Borrower and the Theatre Direct Companies
delivered from time to time under Section 5.14 of the JPM Credit
Agreement.

     

    Section
5.15                       Subsidiaries.

     

    (a)           With
respect to each direct or indirect Subsidiary of the Company created or acquired
after the Closing Date in any jurisdiction within the United States, deliver to
the Lender as promptly as practicable: (i) the Pledged Securities of such
Subsidiary, together with undated stock powers executed in blank (if
applicable); (ii) an Instrument of Assumption and Joinder whereby such
Subsidiary becomes a Credit Party hereunder; (iii) an agreement by which such
Subsidiary grants to the Lender a Lien on all of its assets on the terms set
forth in this Credit Agreement; (iv) UCC-1 financing statements, Copyright
Security Agreements, Trademark Security Agreements and such other documentation
as may be necessary to perfect such Lien and (v) upon request of the Lender, an
opinion of counsel reasonably acceptable to the Lender opining on the creation
and perfection of such security interest (including with regard to the Pledged
Securities).

    
      
         

      

      
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    (b)           With
respect to each direct or indirect Subsidiary of the Company created or acquired
after the Closing Date in any jurisdiction outside the United States, deliver to
the Lender as promptly as practicable (i) the Pledged Securities of such
Subsidiary, together with undated stock powers executed in blank (if
applicable), (ii) an Instrument of Assumption and Joinder whereby such
Subsidiary becomes a Credit Party hereunder, and (iii) upon request of the
Lender, an opinion of counsel reasonably acceptable to the Lender opining on the
creation and perfection of the security interest in the Pledged
Securities.

     

    Section
5.16                       Environmental
Laws.  Furnish to the
Lender evidence of compliance with all Environmental Laws and Environmental
Permits after the Closing Date by the Theatre Direct Companies delivered to the
JPM Administrative Agent and copies of all written notices, claims and other
documents to a Theatre Direct Company after the Closing Date under all
Environmental Laws and Environmental Permits delivered to the JPM Administrative
Agent under Section 5.16 of the JPM Credit Agreement.

     

    Section
5.17                       Use of
Proceeds.  Subject to the
terms and conditions of this Credit Agreement, the Facility will be used on the
Closing Date to finance a portion of the consideration payable in connection
with the Hollywood Acquisition.

     

    Section
5.18                      After-Acquired
Real Property Assets.  If, after the
Closing Date, any Collateral Party purchases or otherwise acquires any Real
Property Asset, or if any existing mortgage or deed of trust encumbering any
Real Property Asset owned by a Collateral Party in favor of a third party is
released, (a) promptly, but in any event within thirty (30) days, after such
purchase or other acquisition or release, provide written notice thereof the
Lender, setting forth with specificity a description of such Real Property Asset
acquired, a title commitment, a survey (if available) and such Collateral
Party’s good faith estimate of the current fair market value of such Real
Property Asset and (b) if the Lender so requests, the applicable Collateral
Party shall promptly execute and deliver to the Lender a Mortgage and such other
documents or instruments as the Lender shall reasonably request with respect to
reflect a Lien on such Real Property Asset in favor of the
Lender.  Notwithstanding anything to the contrary contained herein, no
Real Property Asset which is a leasehold interest shall be required to be
subject to a Mortgage hereunder.

     

    Section
5.19                      Fictitious
Names.  If at any time
any Collateral Party is doing business or intends to do business other than
under its full corporate or company (as applicable) name, including, without
limitation, under any trade name or other doing business name, promptly execute
and deliver or cause to be executed and delivered, at the cost and expense of
the Credit Parties, such further instruments as may be appropriate in the
reasonable judgment of the Lender, to provide the Lender a second priority
perfected Lien in such Collateral (except for those Permitted Encumbrances that
have priority over the Liens granted pursuant to this Credit Agreement) and any
and all documents (including, without limitation, the execution, amendment or
supplementation of any financing statement and continuation statement or other
statement) for filing under the provisions of the UCC and the rules and
regulations thereunder, or any other Applicable Law, and perform or cause to be
performed such other ministerial acts which are reasonably necessary or
advisable, from time to time, in order to grant and maintain in favor of the
Lender the security interest in such Collateral and under the other Fundamental
Documents, subject only to Permitted Encumbrances.

     

    Section
5.20                      Service
of Process Agent.  If, for any
reason, the service of process agent designated in Section 13.13(b)
hereof shall become incapacitated, resign or retire, a successor agent
acceptable to the Lender shall promptly be designated and appointed and notice
of such appointment provided to the Lender.

    
      
         

      

      
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    ARTICLE
6   –   NEGATIVE COVENANTS

     

    From the
Closing Date and for so long as any amount shall remain outstanding under the
Note or any monetary Obligation then due and payable shall remain unpaid or
unsatisfied, each Credit Party agrees that, unless the Lender shall otherwise
consent in writing, it will not and will not allow any of the Theatre Direct
Companies to:

     

    Section
6.1                         Limitations on Indebtedness
and Preferred Equity Interests.

     

    (a)           In
the case of the Borrower, incur, create, assume or suffer to exist any preferred
stock, preferred membership interest or Indebtedness which would cause the
amount of Indebtedness to which the Obligations are subordinated to exceed
$15,000,000 in the aggregate (plus all interest accrued thereon from and after
the Closing Date), including amounts outstanding under the JPM Credit Agreement
or any renewal or replacement thereof.

     

    (b)           In
the case of any Theatre Direct Company, incur, create, assume or suffer to exist
any preferred stock, preferred membership interest or Indebtedness or permit any
partnership or Joint Venture in which any Theatre Direct Company is a general
partner to incur, create, assume or suffer to exist any Indebtedness or
preferred stock or preferred partnership interest, other
than:

     

    (i)           Guaranties
permitted pursuant to Section 6.3 hereof;

     

    (ii)          unsecured
liabilities for trade payables incurred in the ordinary course of business and
payable on normal trade terms and not otherwise prohibited
hereunder;

     

    (iii)         preferred
stock or preferred partnership interests or Indebtedness existing prior to the
Closing Date;

     

    (iv)         intercompany
Indebtedness payable from one Theatre Direct Company to another;
and

     

    (v)          Indebtedness
in respect of bid, performance or surety bonds, workers’ compensation claims,
self-insurance obligations and bankers acceptances issued for the account of any
Theatre Direct Company in the ordinary course of business on customary terms and
conditions, including guarantees or obligations of any Theatre Direct Company
with respect to letters of credit supporting such bid, performance or surety
bonds, workers’ compensation claims, self-insurance obligations and bankers
acceptances (in each case other than for an obligation for money
borrowed).

     

    Section
6.2                        Limitations
on Liens.  Incur, create,
assume or suffer to exit any Lien on any of the Collateral, whether now owned or
hereafter acquired, except (a) as permitted in Section 6.2 of the JPM
Credit Agreement, (b) any Permitted
Encumbrances, and (c) Liens on personal property
arising by virtue of any statutory or common law provision relating to banker’s
liens, rights of setoff or similar rights with respect to deposit or securities
accounts of the Collateral Parties.

    
      
         

      

      
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    Section
6.3                         Limitation on
Guaranties.

     

    (a)           In
the case of the Borrower, provide or suffer to exist any Guaranty (including any
obligation as a general partner of a partnership or as a joint venturer of a
Joint Venture in respect of Indebtedness of such partnership or Joint Venture),
either directly or indirectly which would cause the amount of Indebtedness to
which the Obligations are subordinated to exceed $15,000,000 in the aggregate
(plus all interest accrued thereon from and after the Closing Date), including
amounts outstanding under the JPM Credit Agreement or any renewal or replacement
thereof, except as permitted in Section 6.3 of the JPM Credit
Agreement.

     

    (b)           In
the case of any Theatre Direct Company, provide or suffer to exist any Guaranty
(including any obligation as a general partner of a partnership or as a joint
venturer of a Joint Venture in respect of Indebtedness of such partnership or
Joint Venture), either directly or indirectly, except:

     

    (i)           performance
guarantees in the ordinary course of business to suppliers and other Persons
which are providing services in connection with the acquisition, distribution,
production or exploitation of any copyright or trademark by or for a Theatre
Direct Company;

     

    (ii)          the
Guaranties of the JPM Obligations; and

     

    (iii)         any
Guaranty of the obligations of any Credit Party if the guarantor could have
incurred the guaranteed obligation directly without violating the terms of this
Credit Agreement.

     

    Section
6.4                         Limitations
on Investments.  Permit a Theatre
Direct Company to create, make or incur any Investment, except (a) as permitted in Section
6.4 of the JPM Credit Agreement, (b) any Investment by a
Theatre Direct Company existing as of the Closing Date and (c) guaranties permitted under
Section 6.3 to
the extent constituting Investments.

     

    Section
6.5                         Restricted
Payments.  Pay or declare or
enter into any agreement to pay or otherwise become obligated to make any
Restricted Payment, except (a) as permitted in Section
6.5 of the JPM Credit Agreement, (b) any Restricted Payment
which a Theatre Direct Company is obligated to make as of the Closing Date or
under any agreement existing on the Closing Date, (c) dividends or distributions
payable solely in additional Equity Interests of a Theatre Direct Company, provided,
such additional Equity Interests are pledged to the Lender as additional Pledged
Securities (to the extent required under the definition thereof) on terms
satisfactory to the Lender and (d) distributions or dividends
to a Credit Party by its Subsidiary.

    
      
         

      

      
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    Section
6.6                 
       Consolidation;
Merger; Sale or Purchase of Assets; Etc.  Whether in one
transaction or a series of transactions, (a) wind up, liquidate or
dissolve the affairs of any Credit Party, (b) permit any Credit Party to
enter into any transaction of merger, amalgamation or consolidation, (c) permit any Theatre Direct
Company to sell or otherwise dispose of all or substantially all of its
property, stock, Equity Interests or assets, (d) permit the Borrower to
cease to own 100% of the Company, (e) permit the Company to
cease to own 100% of any Subsidiary, or (f) agree to do or suffer any
of the foregoing, except (other than in the case of sub-clauses (d) and (e)
above) as permitted in Section 6.6 of the JPM Credit Agreement and except that
(i) any Subsidiary of
the Borrower (other than the Company) may merge or amalgamate with and into, or
transfer assets to, the Borrower, provided, that the Borrower must
be the surviving entity in each such transaction, (ii) any Theatre Direct Company
may merge or amalgamate with and into, or transfer assets to, another Theatre
Direct Company, provided, that if any such
transaction involves the Company, then the Company must be the surviving entity
in each such transaction, (iii) dissolutions, mergers or
amalgamations in the ordinary course of business that have no adverse effect on
the Collateral shall be permitted and (iv) any Theatre Direct Company
may issue Equity Interests so long as such issuances of Equity Interests,
individually or in the aggregate, shall not result in a Change in
Control.

     

    Section
6.7                        Receivables.  Sell, discount or
otherwise dispose of notes, accounts receivable or other obligations owing to
any Theatre Direct Company except (a) for the purpose of
collection in the ordinary course of business, (b) pursuant to a Disposition
permitted hereunder or (c) pursuant to any agreement
of a Theatre Direct Company existing on the Closing Date.

     

    Section
6.8                        Sale and
Leaseback.  Enter into any
arrangement with any Person or Persons, whereby in contemporaneous transactions
any Theatre Direct Company sells essentially all of its right, title and
interest in a Material Agreement, or a copyright or trademark and acquires or
licenses the right to distribute or exploit such right or substantially all of
the value of such right, except as permitted in Section 6.8 of the JPM Credit
Agreement.

     

    Section
6.9                        Jurisdiction;
Places of Business; Change of Name.  Permit a Theatre
Direct Company to change its jurisdiction of incorporation or other
organization, change the location of its chief executive office or principal
place of business or any of the locations where it keeps any material portion of
the Collateral or its books and records with respect to the Collateral or change
its name without in each case (i) giving the Lender ten (10) Business Days’
written notice following such change and (ii) authorizing the Lender to file any
additional UCC financing statements (or equivalent documents in the case of
Foreign Subsidiaries whose Equity Interests or assets are pledged to secure the
Obligations), and providing such other documents reasonably requested by the
Lender, to maintain perfection of the security interest of the
Lender.

     

    Section
6.10                      Transactions
with Affiliates.  Permit a Theatre
Direct Company to enter into any transaction with any of its Affiliates (other
than another Theatre Direct Company), except as permitted in Section 6.11 of the
JPM Credit Agreement or Section 6.5
hereof.

     

    Section
6.11                      Business
Activities.  Permit the
Theatre Direct Company to engage in any business activities other than the
business being conducted by the Theatre Direct Company as of the Closing Date
and any reasonably related or ancillary businesses.

    
      
         

      

      
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    Section
6.12                      Amendment
of Documents.  (a) Amend the constitutional
documents of any Credit Party without the prior written consent of the Lender or
(b) amend or waive
any term or provision of the JPM Credit Agreement or any of the other documents
delivered to the JPM Administrative Agent pursuant to the JPM Credit Agreement
that, (i) causes Lender not to have a perfected Lien on Collateral that is
perfected through possession or control of such Collateral by the JPM
Administrative Agent, or (ii) violates the covenants of JPM Administrative Agent
or the Borrower under the Intercreditor Agreement.  In all cases the
Borrower shall provide a copy of any such amendment or waiver to the Lender
promptly upon execution and delivery thereof.

     

    Section
6.13                      No
Further Negative Pledge.  Enter into any
agreement (a) prohibiting the creation or assumption of any Lien in favor of the
Lender upon the Collateral, whether now owned or hereafter acquired or (b)
requiring an obligation of a Theatre Direct Company to be secured as a result of
any Lien on the Collateral being granted to the Lender, other than, in each
case, (i) this Credit Agreement, the other Fundamental Documents, the JPM Credit
Agreement (and documents executed in connection therewith), (ii) any agreements
existing on the Closing Date, (iii) any agreements governing any Indebtedness
permitted under Section 6.1 (in which
case, any prohibition or limitation shall only be effective against the assets
financed thereby), and (iv) restrictions by reason of customary provisions
restricting assignments, subletting or other transfers contained in leases,
licenses, joint venture agreements and similar agreements entered into in the
ordinary course of business (provided,
that such restrictions are limited to the property or assets subject to such
leases, licenses, joint venture agreements or similar agreements, including, in
the case of a joint venture, the Equity Interests in such joint
venture).

     

    Section
6.14                      Dispositions.  Effect any
Dispositions, in one transaction or a series of related transactions, of any of
its property, business or assets, whether now owned or hereafter acquired,
except as permitted in Section 6.21 of the JPM Credit Agreement; provided, however,
that no Disposition shall be permitted of any Material Hollywood IP without the
prior written consent of the Lender.

     

    Section
6.15                      Limitation
on Additional Subsidiaries.  Permit or suffer
to exist the formation by the Company of additional Subsidiaries unless (a)
permitted under Section 6.22 of the JPM Credit Agreement or (b) such new
Subsidiary will be added as a Credit Party to this Credit
Agreement.

     

    Section
6.16                      Environmental
Matters.  Cause or permit
any Release of a Hazardous Material to occur or any Person to be exposed to
Hazardous Materials at, to, from, on or under any Real Property Asset that could
reasonably be expected to violate or result in a material liability under any
Environmental Law or Environmental Permit.

     

    ARTICLE
7   –   EVENTS OF DEFAULT

     

    In the
case of the happening and during the continuance of any of the following events
(herein called “Events
of Default”):

     

    (a)           any
representation or warranty made by a Credit Party in this Credit Agreement or
any other Fundamental Document to which it is a party or any statement or
representation made by a Credit Party in any certificate or other document, or
the contents of any financial statement, furnished to the Lender pursuant to
this Credit Agreement or any other Fundamental Document, shall prove to have
been false or misleading in any material respect when made or delivered,
subject, in the case of financial statements, to year-end adjustments and to
minor errors corrected after discovery;

    
      
         

      

      
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    (b)           default
shall be made in the payment of principal of the Loan as and when due and
payable, whether by reason of maturity, mandatory prepayment, acceleration or
otherwise and such default shall continue unremedied for a period of three (3)
Business Days;

     

    (c)           default
shall be made in the payment of interest on the Loan or other monetary
Obligations, when and as the same shall become due and payable, whether at the
due date thereof or at a date fixed for prepayment thereof or by acceleration
thereof or otherwise and such default shall continue unremedied for three (3)
Business Days;

     

    (d)           default
shall be made in the due observance or performance of any covenant, condition or
agreement contained in (A)(i) Section 5.1, (ii)
Section 5.4,
(iii) Section
5.5, (iv) Section 5.11, (v)
Section 5.12 or
(vi) Article 6
of this Credit Agreement or (B) the applicable Mortgage;

     

    (e)           default
shall be made by any Credit Party in the due observance or performance of any
other covenant, condition or agreement to be observed or performed pursuant to
the terms of this Credit Agreement or any other Fundamental Document, and such
default shall continue unremedied for thirty (30) days after the applicable
Credit Party receives notice or obtains knowledge of such
occurrence;

     

    (f)           default
shall be made with respect to any payment of any Indebtedness of any Credit
Party in excess of $250,000 (or the Dollar equivalent) in the aggregate (other
than the Obligations) when due, or in the performance of any other obligation
incurred in connection with any such Indebtedness if the effect of such
non-payment default is to accelerate the maturity of such Indebtedness or to
permit the holder thereof to cause such Indebtedness to become due prior to its
stated maturity and such default shall not be remedied, cured, waived or
consented to within the period of grace with respect thereto;

     

    (g)           any
Credit Party shall generally not pay its debts as they become due or shall admit
in writing its inability to pay its debts, or shall make a general assignment
for the benefit of creditors; or any Credit Party shall commence any case,
proceeding or other action seeking to have an order for relief entered on its
behalf as a debtor or to adjudicate it a bankrupt or insolvent or seeking
reorganization, arrangement, adjustment, liquidation or dissolution or
composition of it or its debts under any law relating to bankruptcy, insolvency,
reorganization or relief of debtors or seeking appointment of a receiver,
trustee, custodian or other similar official for it or for all or any
substantial part of its property or shall file an answer or other pleading in
any such case, proceeding or other action admitting the material allegations of
any petition, complaint or similar pleading filed against it or consenting to
the relief sought therein; or any Credit Party shall take any action to
authorize, or in contemplation of, any of the foregoing;

    
      
         

      

      
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    (h)           any
involuntary case, proceeding or other action against any Credit Party shall be
commenced seeking to have an order for relief entered against it as debtor or to
adjudicate it bankrupt or insolvent, or seeking reorganization, arrangement,
adjustment, liquidation, dissolution or composition of it or its debts under any
law relating to bankruptcy, insolvency, reorganization or relief of debtors, or
seeking appointment of a receiver, trustee, custodian or other similar official
for it or for all or any substantial part of its property, and such case,
proceeding or other action (i) results in the entry or any order for relief
against it or (ii) shall remain undismissed for a period of sixty (60)
days:

     

    (i)        
   final, non-appealable judgment(s) for the payment of money in
excess of $250,000 (or the equivalent in Dollars) in the aggregate shall be
rendered against any Credit Party (and not covered by insurance) and within
thirty (30) days from the entry of such judgment shall not have been paid or
otherwise discharged or stayed (by bonding or otherwise) pending appeal or shall
not have been discharged within thirty (30) days from the entry of a final order
of affirmance on appeal;

     

    (j)        
   any of the following shall occur that, individually or in the
aggregate, could reasonably be expected to result in a cost or liability in
excess of $250,000: (i) failure by any Credit Party or ERISA Affiliate to make
any contributions required to be made to a Pension Plan subject to Title IV of
ERISA or Multiemployer Plan, (ii) any accumulated funding deficiency (within the
meaning of Section 4971 of the Code) shall exist with respect to any Pension
Plan or Multiemployer Plan (whether or not waived), (iii) the present value of
all benefits under all Pension Plans subject to Title IV of ERISA (based on
those assumptions used to fund such Plans) exceeds, in the aggregate, as of the
last annual valuation date applicable thereto, the actuarial value of the assets
of such Plans allocable to such benefits, (iv) any Credit Party or ERISA
Affiliate shall have been notified by the sponsor of a Multiemployer Plan that
it has incurred withdrawal liability to such Multiemployer Plan, or that a
Multiemployer Plan to which it would have withdrawal liability is in
reorganization or is being terminated, (v) the withdrawal by any Credit Party or
ERISA Affiliate from a Pension Plan during a plan year in which it was a
substantial employer (within the meaning of Section 4001(a)(2) or 4062(e) of
ERISA), (vi) the distress or involuntary termination of a Pension Plan subject
to Title IV of ERISA, or the filing of a notice of intent to terminate a Pension
Plan under Section 4041(c) of ERISA, (vii) the institution of proceedings to
terminate, or the appointment of a trustee with respect to, a Pension Plan
subject to Title IV of ERISA by the PBGC, (viii) any other event or condition
which could constitute grounds under Section 4042(a) of ERISA for the
termination of, or the appointment of a trustee to administer, any Pension Plan
subject to Title IV of ERISA, (ix) the imposition of a Lien pursuant to Section
412 of the Code or Section 302 of ERISA as to any Credit Party or ERISA
Affiliate or (x) any Credit Party shall engage in a “prohibited transaction,” as
defined in Section 406 of ERISA or Section 4975 of the Code, with respect to any
Plan or Multiemployer Plan or knowingly consent to any other “party in interest” or any “disqualified person,” as such
terms are defined in Section 3(14) of ERISA and Section 4975(e)(2) of the Code,
respectively, engaging in any “prohibited transaction,” with
respect to any Plan or Multiemployer Plan;

     

    (k)           any
Fundamental Document shall, for any reason (other than termination in accordance
with the terms thereof), not be or shall cease to be in full force and effect or
shall be declared null and void or any of the Fundamental Documents shall not
give or shall cease to give the Lender the Liens, rights, powers and privileges
purported to be created thereby in favor of the Lender superior to and prior to
the rights of all third Persons and subject to no other Liens (except for
Permitted Encumbrances), or the validity or enforceability of the Liens granted,
to be granted, or purported to be granted, by any of the Fundamental Documents
shall be contested by any Credit Party or any of their respective
Affiliates;

    
      
         

      

      
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    (l)      
     there shall have been asserted against any Credit
Party claims or liabilities, whether accrued, absolute or contingent, based on
or arising from the generation, storage, transport, handling or Release of
Hazardous Materials by a Credit Party or a Credit Party’s Affiliates, or any
predecessor in interest of the Borrower or the Affiliates of a Credit Party
(other than a Theatre Direct Company), or relating to any site or facility
owned, operated or leased by a Credit Party or a Credit Party’s Affiliates,
which claims or liabilities (insofar as they are payable by a Credit Party but
after deducting any portion which is reasonably expected to be paid by other
creditworthy Persons jointly and severally liable for such portion), in the
judgment of the Lender are reasonably likely to be determined adversely to the
Credit Parties, and the amount of such claims or liabilities is, singly or in
the aggregate, reasonably likely to have a Material Adverse Effect;

     

    (m)          a
default by one or more Credit Parties shall occur under one or more Material
Agreements, the loss of which could reasonably be expected to have a Material
Adverse Effect; or

     

    (n)           an
event of default under the JPM Credit Agreement (or any other event having the
effect of accelerating or permitting the acceleration of the JPM
Obligations) shall
have occurred and be continuing,

     

    then, in
every such event and at any time thereafter during the continuance of such
event, the Lender may declare the principal of and the interest on the Loan and
the Note and all other amounts payable hereunder or thereunder to be forthwith
due and payable, whereupon the same shall become and be forthwith due and
payable, without presentment, demand, protest, notice of acceleration or other
notice of any kind, all of which are hereby expressly waived, anything in this
Credit Agreement or in the Note to the contrary notwithstanding; provided, however, none of the following shall
constitute a default or Event of Default hereunder:  (i) any breach of
the any of the Hollywood Closing Documents by any Credit Party or amounts owed
to the Lender by any Credit Party under any of the Hollywood Closing Documents,
(ii) any event or circumstance which exists as of the Closing Date with respect
to the Theatre Direct Companies and (iii) any event with respect to a Theatre
Direct Company which occurs after the Closing Date due to facts or circumstances
existing on or prior to the Closing Date.  If an Event of Default
specified in paragraph (g) or (h) above shall have occurred, the principal of,
and interest on, the Loan and the Note and all other amounts payable hereunder
and thereunder shall automatically become due and payable without presentment,
demand, protest, or other notice of any kind, all of which are hereby expressly
waived, anything in this Credit Agreement or the Note to the contrary
notwithstanding.  Such remedies shall be in addition to any other
remedy available to the Lender pursuant to Applicable Law or
otherwise.

    
      
         

      

      
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    ARTICLE
8   –   GRANT OF SECURITY INTEREST;
REMEDIES

     

    Section
8.1                        Security
Interests.  The Company, as
security for the due and punctual payment and performance of the Obligations
(including interest accruing on and after the filing of any petition in
bankruptcy or of reorganization of the Borrower whether or not post filing
interest is allowed in such proceeding), hereby grants to the Lender a Lien on
and security interest in the Collateral (subject only to Permitted
Encumbrances).

     

    Section
8.2                        Use of
Collateral.  So long as no
Event of Default shall have occurred and be continuing, and subject to the
various provisions of this Credit Agreement and the other Fundamental Documents,
a Collateral Party may use its Collateral in any lawful manner except as
otherwise provided hereunder.

     

    Section
8.3                        [Intentionally Left
Blank.]

     

    Section
8.4                        Credit
Parties to Hold in Trust.  Upon the
occurrence and during the continuance of an Event of Default, each of the
Collateral Parties will, upon receipt by it of any revenue, income, profits or
other sums in which a security interest is granted by this Article 8, payable
pursuant to any agreement or otherwise, or of any check, draft, note, trade
acceptance or other instrument evidencing an obligation to pay any such sum,
hold the sum or instrument in trust for the benefit of the Lender, segregate
such sum or instrument from their own assets and forthwith, without any notice,
demand or other action whatsoever (all notices, demands, or other actions on the
part of the Lender being expressly waived), endorse, transfer and deliver any
such sums or instruments or both, to the Lender to be applied to the repayment
or the Obligations in accordance with the provisions of Section 8.7
hereof.

     

    Section
8.5                        Collections;
etc.  Upon the
occurrence and during the continuance of an Event of Default, but subject to the
Intercreditor Agreement, the Lender may, in its sole discretion, in its name or
in the name of any Credit Party or otherwise, demand, sue for, collect or
receive any money or property at any time payable or receivable on account of or
in exchange for, or make any compromise or settlement deemed desirable with
respect to, any of the Collateral, but shall be under no obligation to do so, or
the Lender may extend the time of payment, arrange for payment in installments,
or otherwise modify the terms of, or release, any of the Collateral, without
thereby incurring responsibility to, or discharging or otherwise affecting any
liability of, any Credit Party.  The Lender will not be required to
take any steps to preserve any rights against prior parties to the
Collateral.  Upon the occurrence and during the continuation of an
Event of Default, if any Credit Party fails to make any payment or take any
action required hereunder, the Lender may make such payments and take all such
actions as the Lender reasonably deems necessary to protect the Lender’s
security interests in the Collateral and/or the value thereof, and the Lender is
hereby authorized (without limiting the general nature of the authority
hereinabove conferred) to pay, purchase, contest or compromise any Liens that in
the judgment of the Lender appear to he equal to, prior to or superior to the
security interests of the Lender in the Collateral (except for Permitted
Encumbrances) and any Liens not expressly permitted by this Credit
Agreement.

    
      
         

      

      
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    Section
8.6                           Possession;
Sale of Collateral; etc.  Upon the
occurrence and during the continuance of an Event of Default, subject to the
Intercreditor Agreement, the Lender may, to the extent permitted by Applicable
Law, enter upon the premises of any Collateral Party or wherever the Collateral
may be, and take possession of the Collateral, and may demand and receive such
possession from any Person who has possession thereof; and the Lender may take
such measures as they deem necessary or proper for the care or protection
thereof, including the right to remove all or any portion of the Collateral, and
with or without taking such possession may sell or cause to be sold, whenever
the Lender shall decide, in one or more sales or parcels, at such prices as the
Lender may deem appropriate, and for cash or on credit or for future delivery,
without assumption of any credit risk, all or any portion of the Collateral, at
any broker’s board or at public or private sale, without demand of performance
but with ten (10) days’ prior written notice to the Credit Parties of the time
and place of any such public sale or sales (which notice the Credit Parties
hereby agree is reasonable) and with such other notices as may be required by
Applicable Law and cannot be waived, and none of the Lender shall have any
liability should the proceeds resulting from a private sale be less than the
proceeds realizable from a public sale, and the Lender or any other Person may
be the purchaser or all or any portion of the Collateral so sold and thereafter
hold the same absolutely, free (to the fullest extent permitted by Applicable
Law) from any claim or right of whatever kind, including any equity of
redemption, of any Credit Party, any such demand, notice, claim, right or equity
being hereby expressly waived and released.  At any sale or sales made
pursuant to this Article 8 or pursuant
to the terms of the Fundamental Documents, the Lender may bid for or purchase,
free (to the fullest extent permitted by Applicable Law) from any claim or right
of whatever kind, including any equity of redemption, of any Credit Party, any
such demand, notice, claim, right or equity being hereby expressly waived and
released, any part of or all of the Collateral offered for sale, and may make
any payment on account thereof by using any claim for moneys then due and
payable to the Lender by any Credit Party hereunder as a credit against the
purchase price.  The Lender, shall in any such
sale make no representations or warranties with respect to the Collateral or any
part thereof, and the Lender shall not be chargeable with any of the
obligations or liabilities of any Credit Party.  Each Credit Party
hereby agrees (i) that it will indemnify and hold the Lender harmless from and
against any and all claims (other than Permitted Encumbrances) with respect to
the Collateral asserted before the taking of actual possession or control of the
relevant Collateral by the Lender pursuant to this Article 8, or arising
out of any act of, or omission to act on the part of, any Person (other than the
Lender or its agents) prior to such taking of actual possession or control by
the Lender (whether asserted before or after such taking of possession or
control), or arising out of any act on the part of any Credit Party or its
Affiliates or agents before or after the commencement of such actual possession
or control by the Lender, but excluding therefrom all claims with respect to the
Collateral resulting from (x) the gross negligence, bad faith or willful
misconduct of the Lender, (y) any claims with respect to the Collateral asserted
against an Indemnified Party by a Credit Party in which such Credit Party is the
prevailing party or (z) any act or omission of a Theatre Direct Company
prior to the Closing Date; and (ii) the Lender shall not have any liability or
obligation to any Credit Party arising out of any such claim except for acts of
willful misconduct, bad faith or gross negligence.  In any action
hereunder, the Lender shall be entitled if permitted by Applicable Law to the
appointment of a receiver without notice, to take possession of all or any
portion of the Collateral and to exercise such powers as the court shall confer
upon the receiver.  Notwithstanding the foregoing, upon the occurrence
of an Event of Default, and during the continuation of such Event of Default,
the Lender shall be entitled to apply, without prior notice to any of the Credit
Parties, any cash or cash items constituting Collateral in the possession of the
Lender to payment of the Obligations.

    
      
         

      

      
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    Section
8.7                          Application
of Proceeds after Event of Default.  Upon the
occurrence and during the continuance of an Event of Default, but subject to the
Intercreditor Agreement, the balances in any account of any Collateral Party
with the Lender, all other income on the Collateral, and all proceeds from any
sale of the Collateral pursuant hereto shall be applied first toward payment of
the reasonable and documented out-of-pocket costs and expenses paid or incurred
by the Lender in enforcing this Credit Agreement, in realizing on or protecting
any Collateral and in enforcing or collecting any Obligations or any Guaranty
thereof, including, without limitation, court costs and the reasonable
attorney’s fees, and expenses incurred by the Lender, and then to the payment in
full of the Obligations; provided,
however,
that, the Lender may in its discretion, apply funds comprising the Collateral to
pay the cost of performing under any Material Agreement.  Any amounts
remaining after such payment in full shall be remitted to the appropriate Credit
Party or as a court of competent jurisdiction may otherwise direct.

     

    Section
8.8                          Power
of Attorney.  Upon the
occurrence and during the continuance of an Event of Default which is not waived
in writing by the Lender, (a) each Collateral Party does
hereby irrevocably make, constitute and appoint the Lender or any of its officers or
designees its true and lawful attorney-in-fact with full power in the name of
the Lender,
such other Person or such Collateral Party to receive and open all mail
addressed to any Collateral Party, and to endorse any notes, checks,
drafts, money orders or other evidences of payment relating to the Collateral
that may come into the possession of the Lender with full power and right to
cause the mail of such Persons to be transferred to the Lender’s own offices or
otherwise, and to do any and all other acts necessary or proper to carry out the
intent of this Credit Agreement and the grant of the security interests
hereunder and under the Fundamental Documents, and each Collateral Party hereby
ratifies and confirms all that the Lender or its substitutes shall properly do
by virtue hereof; and (b) each Credit Party does hereby further irrevocably
make, constitute and appoint the Lender or any of its officers or designees its
true and lawful attorney-in-fact in the name of the Lender or any Credit Party
(i) to enforce all of such Credit Party’s rights under and pursuant to all
agreements with respect to the Collateral, all for the sole benefit of the
Lender as contemplated hereby and under the other Fundamental Documents and to
enter into such other agreements as may be necessary or appropriate in the
judgment of the Lender to complete the distribution or exploitation of any
copyright or trademark which is included in the Collateral, (ii) to enter into
and perform such agreements as may be necessary in order to carry out the terms,
covenants and conditions of the Fundamental Documents that are required to be
observed or performed by such Credit Party, (iii) to execute such other and
further mortgages, pledges and assignments of the Collateral, and related
instruments or agreements, as the Lender may reasonably require for the purpose
of perfecting, protecting, maintaining or enforcing the security interests
granted to the Lender hereunder and under the other Fundamental Documents, and
(iv) to do any and all other things necessary or proper to carry out the
intention of this Credit Agreement and the grant of the security interests
hereunder and under the other Fundamental Documents.  Each of the
Credit Parties hereby ratifies and confirms in advance all that the Lender as
such attorney-in-fact or its substitutes shall properly do by virtue of this
power of attorney.

    
      
         

      

      
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    Section
8.9                         Financing
Statements, Direct Payments.  Each Credit Party
hereby authorizes the Lender to file UCC financing statements and any amendments
thereto or continuations thereof; any Copyright Security Agreement, any
Copyright Security Agreement Supplement, any Trademark Security Agreement, and
any other reasonably appropriate security documents or instruments and to give
any notices necessary or desirable to perfect the Lien of the Lender in the
Collateral, in all cases without the signature of any Credit Party or to execute
such items as attorney-in-fact for any Credit Party; provided,
that the Lender shall provide copies of any such documents or instruments to the
Borrower.  Each Collateral Party hereby specifically authorizes the
Lender to describe and indicate the collateral covered by any such UCC financing
statement as “all
assets” and/or “all
personal property” of such Collateral Party now owned or hereafter
acquired.  Each Collateral Party further authorizes the Lender to
notify, at the time that any Event of Default shall have occurred and be
continuing, any account debtors that all sums payable to such Collateral Party
relating to the Collateral shall be paid directly to the Lender.

     

    Section
8.10                       Termination and
Release.

     

    (a)           The
security interests granted under this Article 8 shall
terminate when all the Obligations have been fully paid.  Upon request
by the Credit Parties (and at the sole expense of the Credit Parties) after such
termination, the Lender will promptly take all reasonable action and do all
things reasonably necessary, including, without limitation, executing UCC
termination statements, termination letters to account debtors and copyright and
trademark releases, to terminate the security interest granted to Lender
hereunder, provided,
that the Lender shall only be required to deliver such documents to the Borrower
or applicable Credit Party and shall have no obligation to file or record any
such document.

     

    (b)          Upon
any Disposition or other transfer by any Credit Party of any Collateral that is
permitted under this Credit Agreement to any person that is not a Credit Party,
or, upon the effectiveness of any written consent to the release of the security
interest granted hereby in any Collateral pursuant to this Section 8.10, the
security interest in such Collateral shall be automatically released and the
Lender shall take steps reasonably requested by the Borrower, including those
set forth in clause (a) above, to terminate the security interest granted to
Lender hereunder.

     

    Section
8.11                       Remedies
Not Exclusive.  The remedies
conferred upon or reserved to the Lender in this Article 8 are
intended to be in addition to, and not in limitation of, any other remedy or
remedies available to the Lender.  Without limiting the generality of
the foregoing, the Lender shall have all rights and remedies of a secured
creditor under Article 9 of the UCC and under any other Applicable
Law.

     

    Section
8.12                      Continuation
and Reinstatement.  Each Credit Party
further agrees that the security interest granted hereunder shall continue to be
effective or be reinstated, as the case may he, if at any time payment or any
part thereof of any Obligation is rescinded or must otherwise be restored by the
Lender upon the bankruptcy or reorganization of any Credit Party or
otherwise.

     

    ARTICLE
9   –   [INTENTIONALLY LEFT
BLANK]

    
      
         

      

      
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    ARTICLE
10   –   PLEDGE

     

    Section
10.1                       Pledge.  Each Pledgor, as
security for the due and punctual payment of the Obligations (including interest
accruing on and after the filing of any petition in bankruptcy or of
reorganization of the Borrower whether or not post filing interest is allowed in
such proceeding) hereby pledges, hypothecates, assigns, transfers, sets over and
delivers unto the Lender, a security interest in all Pledged Collateral now
owned or hereafter acquired by it.  On the Closing Date, the Pledgors
shall deliver to the Lender the definitive instruments (if any) representing all
Pledged Securities, accompanied by undated stock powers, (in the case of Pledged
Securities comprising capital stock), duly endorsed or executed in blank by the
appropriate Pledgor, and such other instruments or documents as the Lender or
its counsel shall reasonably request.  The initial Pledged Securities
are listed on Schedule
10.1.  The Lender shall have the right to update Schedule 10.1 to
reflect any additions to the Pledged Securities after the Closing Date (provided,
that its failure to do so shall not invalidate any pledge of Pledged
Securities).  The parties agree that to the extent any such Pledged
Securities have been delivered to the JPM Administrative Agent, such delivery
shall satisfy the delivery requirements hereunder, and the JPM Administrative
Agent shall hold such Pledged Securities as a gratuitous bailee for the Lender
hereunder.

     

    Section
10.2                       Covenant.  Each Pledgor
covenants that as the owner of Equity Interests in each Theatre Direct Company
it will not take any action to allow any additional shares of common stock,
preferred stock or other Equity Interests of any Theatre Direct Company the
securities of which constitute Pledged Securities pursuant to the definition
thereof, or any securities convertible or exchangeable into common or preferred
stock or other Equity Interests of such Theatre Direct Company to be issued, or
grant any options or warrants with respect to the securities of such Theatre
Direct Company, unless all of such securities are pledged to the Lender as
security for the Obligations.

     

    Section
10.3                       Registration
in Nominee Name; Denominations.  Until an Event of
Default shall have occurred and be continuing, the Lender shall have the right
to hold the certificates representing any Pledged Securities in the name of the
appropriate Pledgor, endorsed or assigned in blank or in favor of the
Lender.  The Lender shall have the right to exchange the certificates
representing any of the Pledged Securities for certificates or smaller or larger
denominations for any purpose consistent with this Credit
Agreement.

     

    Section
10.4                       Voting Rights; Dividends;
etc.

     

    (a)           The
appropriate Pledgor shall be entitled to exercise any and all voting and/or
consensual rights and powers accruing to an owner of the Pledged Securities
being pledged by it hereunder or any part thereof for any purpose not
inconsistent with the terms hereof, at all times, except as expressly provided
in paragraph (c) below.

     

    (b)           All
dividends or distributions of any kind whatsoever (other than cash dividends or
cash distributions paid while no Event of Default is continuing) received by a
Pledgor on account of any Pledged Securities, whether resulting from a
subdivision, combination, or reclassification of the outstanding capital stock
or Equity Interests of the issuer or received in exchange for the Pledged
Securities or any part thereof or as a result of any merger, consolidation,
acquisition, or other exchange of assets to which the issuer may be a party, or
otherwise, shall be and become part of the Pledged Securities pledged hereunder
and shall immediately be delivered to the Lender, to be held subject to the
terms hereof. All dividends and distributions which are received contrary to the
provisions of this subsection (b) shall be received in trust for the benefit of
the Lender, segregated from such Pledgor’s own assets, and shall be delivered to
the Lender.

    
      
         

      

      
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    (c)           Upon
the occurrence and during the continuance of an Event of Default and notice from
the Lender of the transfer of such rights to the Lender, and subject to the
Intercreditor Agreement, all rights of such Pledgor with respect to any Pledged
Securities (i) to exercise the voting and/or consensual rights and powers which
it is permitted to exercise pursuant to this Section 10.4, and
(ii) to receive and retain cash dividends and cash distributions shall cease,
and all such rights shall thereupon become vested in the Lender, which shall
have the sole and exclusive right and authority to exercise such voting and/or
consensual rights and receive such cash dividends and cash distributions, in
each case with respect to such Pledged Collateral, until such time as such Event
of Default has been cured or waived.

     

    (d)           So
long as no Event of Default shall have occurred and be continuing, any cash
dividends or cash distributions received by a Credit Party in accordance with
the terms hereof may be used for any purpose not prohibited
hereunder.

    
      
         

      

      
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    Section
10.5                        Remedies
Upon Default.  If an Event of
Default shall have occurred and be continuing, and subject to the Intercreditor
Agreement, the Lender may sell the Pledged Securities, or any part thereof, at
public or private sale or at any broker’s board or on any securities exchange,
for cash, upon credit or for future delivery as the Lender shall deem
appropriate subject to the terms hereof or as otherwise provided in the UCC or
Applicable Law.  The Lender shall be authorized to exercise its
remedies with respect to the Pledged Securities in any order it deems
appropriate.  The Credit Parties hereby waive any and all rights of
marshalling as between the Domestic Pledged Securities and the Foreign Pledged
Securities.  The Lender shall be authorized at any such sale (if it
deems it advisable to do so) to restrict to the full extent permitted by
Applicable Law the prospective bidders or purchasers to Persons, who will
represent and agree that they are purchasing the Pledged Securities for their
own account or investment and not with a view to the distribution or sale
thereof, and upon consummation of any such sale, the Lender shall have the right
to assign, transfer, and deliver to the purchaser or purchasers thereof the
Pledged Securities so sold.  Each such purchaser at any such sale
shall hold the property sold absolutely, free from any claim or right on the
part of any Pledgor.  The Lender shall give the Pledgors ten (10)
days’ prior written notice of any such public or private sale, or sale at any
broker’s board or on any such securities exchange, or of any other Disposition
of the Pledged Securities.  Such notice, in the case of public sale,
shall state the time and place for such sale and, in the case of sale at a
broker’s board or on a securities exchange, shall state the board or exchange at
which such sale is to be made and the day on which the Pledged Securities, or
portion thereof will first be offered for sale at such board or
exchange.  Any such public sale shall be held at such time or times
within ordinary business hours and at such place or places as the Lender may fix
and shall state in the notice of such sale.  At any such sale, the
Pledged Securities, or portion thereof, to be sold may be sold in one lot as an
entirety or in separate parcels, as the Lender may (in its sole and absolute
discretion) determine.  The Lender shall not be obligated to make any
sale of the Pledged Securities if it shall determine not to do so, regardless of
the fact that notice of sale of the Pledged Securities may have been
given.  The Lender may, without notice or publication, adjourn any
public or private sale or cause the same to be adjourned from time to time by
announcement at the time and place fixed for sale, and such sale may, without
further notice, be made at the time and place to which the same was so
adjourned.  In case the sale of all or any part of the Pledged
Securities is made on credit or for future delivery, the Pledged Securities so
sold shall be retained by the Lender until the sale price is paid by the
purchaser or purchasers thereof, but the Lender shall not incur any liability in
case any such purchaser or purchasers shall fail to take up and pay for the
Pledged Securities so sold and, in case of any such failure, such Pledged
Securities may be sold again upon like notice. At any sale or sales made
pursuant to this Section 10.5, the
Lender may bid for or purchase, free from any claim or right of whatever kind,
including any equity of redemption, of the Pledgors, any such demand, notice,
claim, right or equity being hereby expressly waived and released to the maximum
extent permitted by Applicable Law, any or all of the Pledged Securities offered
for sale, and may make any payment on the account thereof by using any claim for
moneys then due and payable to the Lender by any Credit Party as a credit
against the purchase price; and the Lender, upon compliance with the terms of
sale, may hold, retain and dispose of the Pledged Securities without further
accountability therefor to any Pledgor or any third party (other than the
Lender).  The Lender shall in any such sale make no representations or
warranties with respect to the Pledged Securities or any part thereof, and shall
not be chargeable with any of the obligations or liabilities of the Pledgors
with respect thereto.  Each Pledgor hereby agrees (i) it will
indemnify and hold the Lender harmless from and against any and all claims
(other than Permitted Encumbrances) with respect to the Pledged Securities
asserted before the taking of actual possession or control of the Pledged
Securities by the Lender pursuant to this Credit Agreement, or arising out of
any act of, or omission to act on the part of, any Person prior to such taking
of actual possession or control by the Lender (whether asserted before or after
such taking of possession or control), or arising out of any act on the part of
any Pledgor, its agents or Affiliates before or after the commencement of such
actual possession or control by the Lender but excluding therefrom all claims
with respect to the Pledged Securities resulting from (w) the gross negligence,
bad faith or willful misconduct of the Lender, (x) any claims with respect to
the Pledged Securities asserted against an indemnified party by a Credit Party
or Pledgor in which such Credit Party or Pledgor is the prevailing party,
(y) any event or circumstance which exists as of the Closing Date with
respect to the Theatre Direct Companies and (z) any event with respect to a
Theatre Direct Company which occurs after the Closing Date due to facts or
circumstances existing on or prior to the Closing Date, and (ii) the Lender
shall have no liability or obligation arising out of any such claim except for
acts of willful misconduct, bad faith or gross negligence.  As an
alternative to exercising the power of sale herein conferred upon it, the Lender
may proceed by a suit or suits at law or in equity to foreclose upon the
Collateral and Pledged Securities under this Credit Agreement and to sell the
Pledged Securities, or any portion thereof, pursuant to a judgment or decree of
a court or courts having competent jurisdiction.

    
      
         

      

      
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    Section
10.6                       Securities
Act; etc.  In view of the
position of each Pledgor in relation to the Pledged Securities pledged by it, or
because of other present or future circumstances, a question may arise under the
Securities Act of 1933, as amended, as now or hereafter in effect, or any
similar statute hereafter enacted analogous in purpose or effect (such Act and
any such similar statute as from time to time in effect being hereinafter called
the “Federal
Securities Laws”), with respect to any disposition of the Pledged
Securities permitted hereunder.  Each Pledgor understands that
compliance with the Federal Securities Laws may very strictly limit the course
of conduct of the Lender if the Lender were to attempt to dispose of all or any
part of the Pledged Securities, and may also limit the extent to which or the
manner in which any subsequent transferee of any Pledged Securities may dispose
of the same.  Similarly, there may be other legal restrictions or
limitations affecting the Lender in any attempt to dispose of all or any part of
the Pledged Securities under applicable Blue Sky or other state securities laws,
or similar laws analogous in purpose or effect.  Under Applicable Law,
in the absence of an agreement to the contrary, the Lender may perhaps be held
to have certain general duties and obligations to a Pledgor to make some effort
towards obtaining a fair price even though the Obligations may be discharged or
reduced by the proceeds of a sale at a lesser price.  Each Pledgor
waives to the fullest extent permitted by Applicable Law, any such general duty
or obligation to it, and the Pledgors and, or the Credit Parties will not
attempt to hold the Lender responsible for selling all or any part of the
Pledged Securities at an inadequate price, even if the Lender shall accept the
first offer received or does not approach more than one possible
purchaser.  Without limiting the generality of the foregoing, the
provisions of this Section 10.6 would
apply if, for example, the Lender were to place all or any part of the Pledged
Securities for private placement by an investment banking firm, or if such
investment banking firm purchased all or any part of the Pledged Securities for
its own account, or if the Lender placed all or any part of the Pledged
Securities privately with a purchaser or purchasers.

     

    Section
10.7                       Continuation  and
Reinstatement.  Each Pledgor
further agrees that its pledge hereunder shall continue to be effective or be
reinstated, as the case may be, if at any time payment, or any part thereof, of
any Obligation is rescinded or must otherwise be restored by the Lender upon the
bankruptcy or reorganization of any Pledgor or otherwise.

     

    Section
10.8                       Termination. The pledge referenced
herein shall terminate (a) when all of the Obligations shall have been fully
paid and (b) in the event that any Theatre Direct Company the securities of
which are Pledged Securities is sold, transferred or otherwise disposed of as
part of a Disposition or other transaction permitted under this Credit
Agreement, at which time, in either case, the Lender shall promptly assign and
deliver to the appropriate Pledgor, or to such Person or Persons as such Pledgor
shall designate, against receipt, such of the applicable Pledged Securities (if
any) as shall not have been sold or otherwise applied by the Lender pursuant to
the terms hereof and shall still be held by it hereunder, together with
appropriate instruments of reassignment and release.  Any such
reassignment shall be free and clear of all Liens, arising by, under or through
the Lender but shall otherwise be without recourse upon or warranty by the
Lender and at the expense of the Pledgors.

     

    ARTICLE
11   –   CASH COLLATERAL

     

    Section
11.1                       Cash
Collateral Accounts.  On or prior to
the Closing Date, there shall be established with a financial institution or
commercial bank acceptable to the Lender a collateral account or accounts in the
name of the Company (collectively, the “Cash
Collateral Account”), into which the appropriate Credit Parties shall
from time to time deposit amounts pursuant to the express provisions of this
Credit Agreement requiring or permitting such deposits. The Cash Collateral
Account shall be under the control (within the meaning of Section 9-104 of the
UCC) of the financial institution or commercial bank designated by the Lender
(pursuant to an Account Control Agreement in form satisfactory to the Lender);
provided,
that unless an Event of Default has occurred and is continuing, the Lender shall
promptly permit the release of funds from the Cash Collateral Account in
accordance with the directions of the Borrower, which may be given in the form
of a standing sweep instruction or otherwise.  For the avoidance of
doubt, the Lender agrees that any Cash Collateral Account established by the JPM
Administrative Agent may be used as a Cash Collateral Account hereunder, with
the JPM Administrative Agent to hold cash therein as gratuitous bailee of the
Lender, and as used herein “Cash Collateral Account”
shall mean any such account so established.

    
      
         

      

      
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    Section
11.2                       Investment of
Funds.

     

    (a)           The
Lender is hereby authorized and directed to allow the funds from time to time
transferred or deposited into the Cash Collateral Account to be invested and
reinvested, so long as no Event of Default has occurred and is continuing, on
the instructions of the Borrower (provided,
that any such instructions given orally shall be confirmed promptly in writing)
or, if the Borrower shall fail to give such instructions upon delivery of any
such funds, in the sole discretion of the Lender, provided,
that in no event may the Borrower give instructions to the Lender or any bank
holding the Cash Collateral Account to, nor may the Lender or such bank in its
discretion, invest or reinvest funds in the Cash Collateral Account in other
than Cash Equivalents.

     

    (b)           Any
net income or gain on the investment of funds from time to time held in the Cash
Collateral Account shall be promptly reinvested as a part of the Cash Collateral
Account; and any net loss on any such investment shall be charged against the
Cash Collateral Account.

     

    (c)           The
Lender shall not be a trustee for any Credit Party, or shall have any
obligations or responsibilities, or shall be liable for anything done or not
done, in connection with the Cash Collateral Account except for any acts of
gross negligence or willful misconduct, except as expressly provided herein and
except that the Lender shall have the obligations of a secured party under the
UCC.  The Lender shall not have any obligation or responsibility and
shall not be liable in any way for any investment decision made in accordance
with this Section
11.2 or for any decrease in the value of the investments held in the Cash
Collateral Account except for any acts of gross negligence or willful
misconduct.

     

    Section
11.3                       Grant of
Security Interest.  For value
received and to induce the Lender to make Loan to the Borrower as provided for
in this Credit Agreement, and as security for the payment of all of the
Obligations, each of the Theatre Direct Companies hereby grants to the Lender, a
perfected and priority security interest in and upon all of such Theatre Direct
Company’s rights in and to the Cash Collateral Account, all cash, documents,
instruments and securities from time to time held therein, and all rights
pertaining to investments of funds in the Cash Collateral Account and all
products and proceeds of any of the foregoing, subject, in the case of a Cash
Collateral Account established under the JPM Credit Agreement, to the first
priority lien of the JPM Administrative Agent and the lenders under the JPM
Credit Agreement.  All cash, documents, instruments and securities
from time to time on deposit in the Cash Collateral Account, and all rights
pertaining to investments of funds in the Cash Collateral Account shall
immediately and without any need for any further action on the part of any of
the Credit Parties, or the Lender, become subject to the Lien set forth in this
Section 11.3,
be deemed Collateral for all purposes hereof and be subject to the provisions of
this Credit Agreement.

    
      
         

      

      
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    Section
11.4                       Remedies.  At any time
during the continuation of an Event of Default, but subject to the Intercreditor
Agreement, the Lender may sell any documents, instruments and securities held in
the Cash Collateral Account and may immediately apply the proceeds thereof and
any other cash held in the Cash Collateral Account in accordance with Section
8.7.

     

    ARTICLE
12   –  [INTENTIONALLY LEFT BLANK]

    

    ARTICLE
13   –  MISCELLANEOUS

     

    Section
13.1                       Notices.

     

    (a)           Except
in the case of notices and other communications expressly permitted to be given
by telephone (and subject to paragraph (b) below), all notices and other
communications provided for herein shall be in writing and shall be delivered by
hand or overnight courier service, mailed by certified or registered mail or
sent by telecopy or electronic photocopy (i.e., “PDF”), to it at its address
(or facsimile number) set forth on the signature pages hereto.

     

    (b)           Notices
and other communications to the Lender hereunder may be delivered or furnished
by electronic communications pursuant to procedures approved by the
Lender.  Each of the Lender and the Borrower may, each in its
discretion, agree to accept notices and other communications to it hereunder by
electronic communications pursuant to procedures approved by it; provided,
that approval of such procedures may be limited to particular notices or
communications.

     

    (c)           Any
party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to all of the other parties hereto. All
notices and other communications given to any party hereto in accordance with
the provisions of this Credit Agreement shall be deemed to have been given on
the date of receipt.

     

    Section
13.2                       Survival
of Agreement, Representations and Warranties, etc.  All warranties,
representations and covenants made by any of the Credit Parties herein, in any
other Fundamental Document (other than representations under the Hollywood SPA)
or in any certificate or other instrument delivered by it or on its behalf in
connection with this Credit Agreement or any other Fundamental Document shall be
considered to have been relied upon by the Lender and, except for any
terminations, amendments, modifications or waivers thereof in accordance with
the terms hereof shall survive the making of the Loan herein contemplated and
the execution and delivery to the Lender of the Note regardless of any
investigation made by the Lender or on their behalf and shall continue in full
force and effect so long as any Obligation is outstanding and
unpaid.  All statements in any such certificate or other instrument
shall constitute representations and warranties by the Credit Parties
hereunder.

     

    
      
        
           

        

        
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    Section
13.3                       Successors and Assigns: Loan
Sales; Participations.

    (a)           Whenever
in this Credit Agreement any of the parties hereto is referred to, such
reference shall be deemed to include the successors and assigns of such party;
provided,
however,
that neither the Borrower nor any other Credit Party may assign its rights
hereunder without the prior written consent of the Lender, and all covenants,
promises and agreements by or on behalf of any of the Credit Parties which are
contained in this Credit Agreement shall inure to the benefit of the successors
and assigns of the Lender.

     

    (b)           The
Lender may assign to any Person all or a portion of its interests, rights and
obligations under this Credit Agreement (including, without limitation, all or a
portion of the Loan at the time owing to it and the Note held by it); provided,
however,
unless an Event of Default has occurred and is continuing the Borrower shall
have a right of first refusal to purchase for cash any Loan (or portion thereof)
being offered for assignment for a price equal to 102.5% of the amount offered
by such Person to the Lender.

     

    Section
13.4                       Expenses;
Documentary Taxes.  The Borrower
agrees to pay (i) all
reasonable out-of-pocket expenses incurred by the Lender in connection with, or
growing out of, any waiver or modification of this Credit Agreement and any
other documentation contemplated hereby, and (ii) all reasonable
out-of-pocket expenses incurred by the Lender in the enforcement or protection
of the rights and remedies of the Lender in connection with this Credit
Agreement, the Note or the other Fundamental Documents, or as a result of any
transaction, action or non-action arising from any of the foregoing, including,
but not limited to, the fees and disbursements of any outside counsel for the
Lender.  Such payments shall be made within ten (10) days of written
invoice thereof.  The Credit Parties agree, jointly and severally,
that they shall indemnify the Lender from and hold them harmless against any
documentary taxes, assessments or charges made by any Governmental Authority by
reason of the execution and delivery of this Credit Agreement or the
Note.  The obligations of the Borrower under this Section shall
survive the termination of this Credit Agreement and the payment of the
Loan.

     

    Section
13.5                       Indemnity.  The Credit
Parties agree, jointly and severally, to indemnify and hold harmless the Lender
and its directors, officers, employees and agents (each an “Indemnified
Party”) (to the full extent permitted by Applicable Law) from and against
any and all claims, demands, losses, judgments, damages and liabilities
(including liabilities for penalties) incurred by any of them as a result of, or
arising out of, or by reason of, any investigation, litigation or other
proceeding (whether or not the Lender is a party thereto) brought against Lender
in its capacity as Lender hereunder relating to the entering into and/or the
performing of any Fundamental Document (and not, for the avoidance of doubt, in
connection with any Hollywood Closing Documents) or the use of the proceeds of
the Loan or the consummation of the transaction contemplated in any Fundamental
Document, including, without limitation, the reasonable fees and disbursements
of any outside counsel incurred in connection with any such investigation,
litigation or other proceeding (but excluding (i) any such losses, liabilities,
claims, damages or expenses of an Indemnified Party to the extent they are (A)
found in a final, non-appealable judgment by a court to have been incurred by
reason of the gross negligence, bad faith, or willful misconduct of such
Indemnified Party or (B) as a result of, arising out of, or by reason of
completing the Hollywood Acquisition; and (ii) litigation solely between
the Borrower and/or any other Credit Party or its Affiliate(s), on the one hand,
and the Lender, on the other hand, in connection with this Credit Agreement or
the other Fundamental Documents or in any way relating to the transactions
contemplated hereby or thereby if. after final non-appealable judgment, the
Credit Parties are the prevailing party or parties in such
litigation).  If any proceeding, including any governmental
investigation, shall be instituted involving any Indemnified Party, in respect
of which indemnity may be sought against a Credit Party, such Indemnified Party
shall promptly notify the Borrower in writing.  The foregoing
indemnity agreement includes any costs incurred by an Indemnified Party in
connection with any action or proceeding in connection with which any officer or
employee of the Lender is called as a witness or deponent, including, but not
limited to, the reasonable fees and disbursements of counsel to the Lender, and
any reasonable out of pocket costs incurred by the Lender in appearing as a
witness or in otherwise complying with legal process served upon
them.  The obligations of the Credit Parties under this Section 13.5 shall
survive the termination of this Credit Agreement and the payment of the Loan and
shall inure to the benefit of any Person who was a Lender notwithstanding such
Person’s assignment of its Loan hereunder.

    
      
         

      

      
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    Section
13.6                        Self
Help.  If any Credit
Party shall fail to do any act or thing which it has covenanted to do hereunder
or under a Fundamental Document, or any representation or warranty of a Credit
Party hereunder or under a Fundamental Document shall be breached, the Lender
may (but shall not be obligated to), to the extent permitted by Applicable Law,
do the same or cause it to be done or remedy any such breach and there shall be
added to the Obligations hereunder the cost or expense incurred by the Lender in
so doing, and any and all amounts expended by the Lender in taking any such
action shall be repayable to it upon its demand therefor and shall bear interest
at a rate per annum of two percent (2%) in excess of the rate then in effect for
Loan from time to time in effect from the date advanced to the date of
repayment.

     

    Section
13.7                        CHOICE OF
LAW.  THIS CREDIT
AGREEMENT AND THE NOTE SHALL IN ALL RESPECTS BE CONSTRUED IN ACCORDANCE WITH,
AND GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK WHICH ARE APPLICABLE TO
CONTRACTS MADE AND TO BE PERFORMED WHOLLY WITHIN SUCH STATE.

     

    Section
13.8                        WAIVER OF
JURY TRIAL.  TO THE EXTENT NOT
PROHIBITED BY APPLICABLE LAW WHICH CANNOT BE WAIVED, EACH PARTY HERETO HEREBY
WAIVES, AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT
OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE,
CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS
CREDIT AGREEMENT, THE SUBJECT MATTER HEREOF, ANY OTHER FUNDAMENTAL DOCUMENT OR
THE SUBJECT MATTER THEREOF, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING AND WHETHER IN CONTRACT OR TORT OR OTHERWISE. EACH PARTY HERETO
ACKNOWLEDGES THAT IT HAS BEEN INFORMED BY THE OTHER PARTIES HERETO THAT THE
PROVISIONS OF THIS SECTION 13.8
CONSTITUTE A MATERIAL INDUCEMENT UPON WHICH SUCH OTHER PARTIES HAVE RELIED, ARE
RELYING AND WILL RELY IN ENTERING INTO THIS CREDIT AGREEMENT AND ANY OTHER
FUNDAMENTAL DOCUMENT. ANY PARTY MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF
THIS SECTION
13.8  WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF ANY
PARTY TO THE WAIVER OF ITS RIGHTS TO TRIAL BY JURY.

    
      
         

      

      
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    Section
13.9                       WAIVER
WITH RESPECT TO DAMAGES.  EACH CREDIT PARTY
ACKNOWLEDGES THAT THE LENDER DOES NOT HAVE ANY FIDUCIARY RELATIONSHIP WITH, OR
FIDUCIARY DUTY TO, ANY CREDIT PARTY ARISING OUT OF OR IN CONNECTION WITH THIS
CREDIT AGREEMENT OR ANY OTHER FUNDAMENTAL DOCUMENT AND THE RELATIONSHIP BETWEEN
THE LENDER, ON THE ONE HAND, AND THE CREDIT PARTIES, ON THE OTHER HAND, IN
CONNECTION THEREWITH IS SOLELY THAT OF DEBTOR AND CREDITOR.  TO THE
EXTENT PERMITTED BY APPLICABLE LAW, NO PARTY HERETO SHALL ASSERT, AND EACH PARTY
HERETO HEREBY WAIVES, ANY CLAIMS AGAINST ANY OTHER PARTY HERETO ON ANY THEORY OF
LIABILITY, FOR SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES (AS OPPOSED
TO DIRECT OR ACTUAL DAMAGES) ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT
OF, THIS CREDIT AGREEMENT, ANY FUNDAMENTAL DOCUMENT, ANY AGREEMENT OR INSTRUMENT
CONTEMPLATED HEREBY OR THEREBY, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY.  NOTWITHSTANDING THE FOREGOING, NOTHING CONTAINED IN THIS
SECTION 13.9
SHALL SUPERSEDE ANY OF THE PROVISIONS OF THE HOLLYWOOD SPA.

     

    Section
13.10                 
    No
Waiver.  No failure on the
part of the Lender to exercise, and no delay in exercising, any right, power or
remedy hereunder, under the Note or any other Fundamental Document shall operate
as a waiver thereof, nor shall any single or partial exercise of any such right,
power or remedy preclude any other or further exercise thereof or the exercise
of any other right, power or remedy.  All remedies hereunder are
cumulative and are not exclusive of any other remedies provided by
law.

     

    Section
13.11           
          Amendments;
etc.  No modification,
amendment or waiver of any provision of this Credit Agreement, and no consent to
any departure by a Credit Party herefrom, shall in any event be effective unless
the same shall be in writing and signed by the Lender and acknowledged and
agreed to by the Borrower and then such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given;
provided,
however,
that no such amendment or modification may adversely affect the rights and
obligations of the Lender hereunder without its prior written
consent.  No notice to or demand on any of the Credit Parties shall
entitle such Credit Party to any other or further notice or demand in the same,
similar or other circumstances.  Any holder of the Note (and each
participant taking its rights through any such holder) shall be bound by any
amendment, modification, waiver or consent authorized as provided herein,
whether or not the Note shall have been marked to indicate such amendment,
modification, waiver or consent and any consent by any holder of the Note shall
bind any Person subsequently acquiring the Note, whether or not the Note is so
marked.

     

    Section
13.12                      Severability.  Any provision of
this Credit Agreement or of the Note which is invalid, illegal or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such invalidity, illegality or unenforceability without invalidating the
remaining provisions hereof, and any such invalidity, illegality or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

    
      
         

      

      
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    Section
13.13                      SERVICE OF PROCESS;
SUBMISSION TO JURISDICTION.

     

    (a)           EACH
CREDIT PARTY (EACH A “SUBMITTING
PARTY”) HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE
STATE COURTS OF THE STATE OF NEW YORK IN NEW YORK COUNTY AND TO THE EXCLUSIVE
JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF
NEW YORK, FOR THE PURPOSES OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT
OF OR BASED UPON THIS CREDIT AGREEMENT, THE SUBJECT MATTER HEREOF, ANY OTHER
FUNDAMENTAL DOCUMENT AND THE SUBJECT MATTER THEREOF.  EACH SUBMITTING
PARTY TO THE EXTENT PERMITTED BY APPLICABLE LAW (A) HEREBY WAIVES, AND AGREES
NOT TO ASSERT, BY WAY OF MOTION, AS A DEFENSE, OR OTHERWISE, IN ANY SUCH SUIT,
ACTION OR OTHER PROCEEDING BROUGHT IN THE ABOVE-NAMED COURTS, ANY CLAIM THAT IT
IS NOT SUBJECT PERSONALLY TO THE JURISDICTION OF SUCH COURTS, THAT ITS PROPERTY
IS EXEMPT OR IMMUNE FROM ATTACHMENT OR EXECUTION, THAT THE SUIT, ACTION OR
PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM, THAT THE VENUE OF THE SUIT,
ACTION OR PROCEEDING IS IMPROPER OR THAT THIS CREDIT AGREEMENT, THE SUBJECT
MATTER HEREOF, THE OTHER FUNDAMENTAL DOCUMENTS OR THE SUBJECT MATTER THEREOF (AS
APPLICABLE) MAY NOT BE ENFORCED IN OR BY SUCH COURT, AND (B) HEREBY WAIVES THE
RIGHT TO ASSERT IN ANY SUCH ACTION, SUIT OR PROCEEDING ANY OFFSETS OR
COUNTERCLAIMS EXCEPT COUNTERCLAIMS THAT ARE COMPULSORY OR OTHERWISE ARISE FROM
THE SAME SUBJECT MATTER.  EACH SUBMITTING PARTY HEREBY CONSENTS TO
SERVICE OF PROCESS BY MAIL AT THE ADDRESS TO WHICH NOTICES ARE TO BE GIVEN TO IT
PURSUANT TO SECTION
13.1 HEREOF.  EACH SUBMITTING PARTY AGREES THAT ITS SUBMISSION
TO JURISDICTION AND CONSENT TO SERVICE OF PROCESS BY MAIL IS MADE FOR THE
EXPRESS BENEFIT OF EACH OF THE OTHER SUBMITTING PARTIES. FINAL JUDGMENT AGAINST
ANY SUBMITTING PARTY IN ANY SUCH ACTION, SUIT OR PROCEEDING SHALL BE CONCLUSIVE,
AND BE ENFORCED IN ANY OTHER JURISDICTION (X) BY SUIT, ACTION OR PROCEEDING ON
THE JUDGMENT, A CERTIFIED OR TRUE COPY OF WHICH SHALL BE CONCLUSIVE EVIDENCE OF
THE FACT AND OF THE AMOUNT OF INDEBTEDNESS OR LIABILITY OF THE SUBMITTING PARTY
THEREIN DESCRIBED OR (Y) IN ANY OTHER MANNER PROVIDED BY OR PURSUANT TO THE LAWS
OF SUCH OTHER JURISDICTION; PROVIDED,
HOWEVER,
THAT THE LENDER MAY AT ITS OPTION BRING SUIT, OR INSTITUTE OTHER JUDICIAL
PROCEEDINGS AGAINST A SUBMITTING PARTY OR ANY OF ITS ASSETS IN ANY STATE OR
FEDERAL COURT OF THE UNITED STATES OF AMERICA OR OF ANY COUNTRY OR PLACE WHERE
THE SUBMITTING PARTY OR SUCH ASSETS MAY BE FOUND.

     

    (b)          Each
Credit Party that is organized under the laws of a jurisdiction outside the
United States hereby appoints the Company, as its agent for service of process
in any matter related to this Credit Agreement or the other Fundamental
Documents and the Company, by execution of this Credit Agreement, agrees to
accept such appointment.

     

    Section
13.14                      Headings.  Section headings
used herein and the Table of Contents are for convenience only and are not to
affect the construction of or be taken into consideration in interpreting this
Credit Agreement.

     

    Section
13.15                      Execution
in Counterparts.  This Credit
Agreement may be executed by facsimile and in any number of counterparts, each
of which shall constitute an original, but all of which taken together shall
constitute one and the same instrument.

    
      
         

      

      
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    Section
13.16                      Subordination of
Intercompany Indebtedness; Receivables and Advances.

     

    (a)           The
Borrower hereby agrees that no payment on any intercompany Indebtedness or other
intercompany receivables or intercompany advances of any other Credit Party,
directly or indirectly, in favor of the Borrower of whatever nature at any time
outstanding shall be made (i) except intercompany receivables and intercompany
advances not prohibited by the terms hereof may be repaid and intercompany
Indebtedness permitted pursuant to the terms hereof may be repaid, in each case
so long as no Default or Event of Default, shall have occurred and be continuing
and (ii) except as specifically consented to by the Lender in writing, until the
prior payment in full of all the Obligations and termination of the
Commitments.

     

    (b)           In
the event that any payment on any such Indebtedness shall be received by the
Borrower other than as permitted by Section 13.16(a)
before payment in full of all Obligations, such Credit Party shall receive such
payments and hold the same in trust for, segregate the same from its own assets
and shall immediately pay over to, the Lender all such sums to the extent
necessary so that the Lender shall have been paid all Obligations owed or which
may become owing.

     

    Section
13.17                      USA
Patriot Act.  The Lender hereby
notifies the Borrower that, pursuant to the requirements of the USA Patriot Act
or similar foreign statutory requirements, it is required to obtain, verify and
record information that identifies the Borrower, which information includes,
among other things the name and address of the Borrower, certified copies of a
current passport or driving license of the directors of the Borrower, certified
copies of utility bills of the Borrower, local authority tax bill or building
account statement for the main directors of the Borrower, copies of resolutions
authorizing the Borrower to open accounts and details of principal directors,
signatories and shareholders of the Borrower and other information that will
allow the Lender to identify the Borrower in accordance with the USA Patriot Act
or such similar foreign statutory requirements.

     

    Section
13.18                      Entire
Agreement.  This Credit
Agreement (including the Exhibits and Schedules hereto) represents the entire
agreement of the parties with regard to the subject matter hereof and the terms
of any letters and other documentation entered into between any of the parties
hereto (other than any fee letter arrangements) prior to the execution of this
Credit Agreement which relate to Loan to be made hereunder shall be replaced by
the terms of this Credit Agreement.

    
      
         

      

      
        49

        
          

        

      

      
         

      

    

    Section
13.19                      Confidentiality.  The Lender agrees
to maintain the confidentiality of the Information (as defined below), except
that Information may be disclosed (a) to it and its Affiliates’ directors,
officers, employees and agents, including accountants, legal counsel and other
advisors (it being understood that the Persons to whom such disclosure is made
will be informed of the confidential nature of such Information and instructed
to keep such Information confidential), (b) to the extent requested by any
regulatory authority, (c) on the advice of the Lender’s counsel, to the extent
required by Applicable Laws or by any subpoena or similar legal process (provided,
that the Lender shall, to the extent that its employees involved in
administration of the Facility become aware of such subpoena or other legal
process, provide a copy of such subpoena or similar process to the Borrower,
provided,
further, that
such copy shall be a courtesy only and the Lender shall not have any liability
whatsoever to any Credit Party for failure to provide such a copy), (d) on the
advice of the Lender’s counsel, to the extent necessary or advisable under the
rules and regulations and/or comments of the Securities and Exchange Commission
in connection with any of the Lender’s public filings, including with respect to
disclosures of “material agreements”, (e) to any other party to this Credit
Agreement, (f) in connection with the exercise of any remedies hereunder or any
suit, action or proceeding relating to this Credit Agreement or the enforcement
of rights hereunder, (g) subject to an agreement containing provisions
substantially the same as those of this Section 13.19, to (i)
any bona fide assignee of or participant in, or any prospective assignee of or
participant in, any of its rights or obligations under this Credit Agreement, or
(ii) any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to the Borrower and its obligations, (h) with
the consent of the Borrower, or (i) to the extent such Information (x) becomes
publicly available other than as a result of a breach of this Section, or (y)
becomes available to the Lender on a non-confidential basis from a source other
than a Credit Party and not actually known to the Lender to be subject to a
confidentiality obligation to Borrower or any of its Subsidiaries with respect
to such Information.  For the purposes of this Section, “Information”
means all information received from the Borrower, any of its Subsidiaries or any
of its Affiliates relating to the Borrower, any Subsidiary and their respective
businesses, other than any such information that is available to the Lender on a
non-confidential basis prior to disclosure by such Credit Party; provided,
that in the case of information received from a Credit Party or Pledgor after
the Closing Date, such information is clearly identified at the time of delivery
as confidential.  Any Person required to maintain the confidentiality
of Information as provided in this Section 13.19 shall
be considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential
information.

     

    Section
13.20                      Foreign
Currency Conversion.  If the net amount
of any payment received by or on behalf of the Lender hereunder, after such
amount has (in the case of an amount received in a currency other than Dollars
and/or received outside the United States) been converted into Dollars and
transferred to the Lender, as the case may be, in accordance with normal banking
procedures, is less than the amount otherwise then due and owing by a Credit
Party to the Lender hereunder, or if the Lender is unable to immediately convert
and transfer any such amount as aforesaid, then each Credit Party agrees as a
separate Obligation to the Lender to indemnify the Lender against the loss
incurred by reason of such shortfall or delay.

     

    Section
13.21                      Breach of
Hollywood SPA.  Notwithstanding
anything contained herein to the contrary, this Credit Agreement shall not limit
in any manner the liability of the Lender for a breach of the Hollywood SPA by
the Lender (but solely in its capacity thereunder as the “Selling
Stockholder”).

     

    [Signature
Pages Follow]

    
      
         

      

      
        50

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have caused this Credit Agreement to be duly
executed as of the day and the year first written.

     

    
      
        
          
            
              
                	 
      	
                        KEY
      BRAND ENTERTAINMENT INC.

                      
	 
      	 
      	 
      
	 
      	
                        By:

                      	
                        /s/ John Gore

                      
	 
      	
                        Name:

                      	 
      
	 
      	
                        Title:

                      	 
      
	 
      	 
      	 
      
	 
      	
                        THEATRE
      DIRECT NY, INC.

                      
	 
      	 
      	 
      
	 
      	
                        By:

                      	
                        /s/ John Gore

                      
	 
      	
                        Name:

                      	 
      
	 
      	
                        Title:

                      	 
      

              

            

          

        

      

    

    

    
      
        
          	 
      	
                  Address for Notices for the Borrower and the
      Company:

                
	 
      	 
      
	 
      	
                  1619
      Broadway, 9th Floor

                
	 
      	
                  New
      York, NY  10019

                
	 
      	
                  Attention:
      John Gore and Liam Lynch

                
	 
      	
                  Facsimile:
      (917) 421-5430

                
	 
      	 
      
	 
      	
                  And
      to:

                
	 
      	 
      
	 
      	
                  10880
      Wilshire Boulevard, Suite 870

                
	 
      	
                  Los
      Angeles, CA  90024

                
	 
      	
                  Attention:
      David Bauer Stern, Esq. and Tom McGrath

                
	 
      	
                  Facsimile:
      (310) 446-4930

                
	 
      	 
      
	 
      	
                  With
      a copy (which shall not constitute notice) to:

                
	 
      	 
      
	 
      	
                  Frederick
      W. Gartside, Esq.

                
	 
      	
                  Elkins
      Kalt Weintraub Reuben Gartside LLP

                
	 
      	
                  1800
      Century Park East

                
	 
      	
                  Seventh
      Floor

                
	 
      	
                  Los
      Angeles, California 90067

                
	 
      	
                  Facsimile:
      (310) 746-4495

                

        

      

    

     

    [Signature
Page to Key Brand Entertainment Inc.

    Second
Lien Credit, Security and Pledge Agreement]

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      
        
          	 
      	
                  HOLLYWOOD
      MEDIA CORP.,

                
	 
      	
                  as
      the Lender

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                    /s/ Mitchell
      Rubenstein

                
	 
      	 
      	
                  Name:  Mitchell
      Rubenstein

                
	 
      	 
      	
                  Title:    Chairman
      and CEO

                

        

      

    

     

    
      
        
          	 
      	
                  Address for Notices:

                
	 
      	
                  c/o
      Mitchell Rubenstein

                
	 
      	
                  560
      Broadway, Suite 404

                
	 
      	
                  New
      York, NY 10012

                
	 
      	
                  Facsimile:
      (561) 998-2974

                
	 
      	 
      
	 
      	
                  With
      a copy (which shall not constitute notice) to:

                
	 
      	 
      
	 
      	
                  S.
      Scott Parel, Esq.

                
	 
      	
                  Weil,
      Gotshal & Manges LLP

                
	 
      	
                  767
      Fifth Avenue

                
	 
      	
                  New
      York, New York 10153

                
	 
      	
                  Facsimile:
      (212) 310-8000

                

        

      

    

     

    [Signature
Page to Key Brand Entertainment Inc.

    Second
Lien Credit, Security and Pledge Agreement]Unassociated Document

    

    EXHIBIT
10.2

     

    EXECUTION
VERSION

     

    SUBORDINATION
AND INTERCREDITOR AGREEMENT

     

    This
Subordination and Intercreditor Agreement dated as of December 15, 2010 (this
“Agreement”), among (i)
JPMORGAN CHASE BANK, N.A. as Administrative Agent (in such capacity, with its
successors and assigns, and as more specifically defined below, the “Senior Agent”) for the Senior
Creditors (as defined below), (ii) HOLLYWOOD MEDIA CORP., as the subordinated
lender (the “Subordinated
Lender”) under the Existing Subordinated Agreement referred to herein,
and (iii) KEY BRAND ENTERTAINMENT INC., a Delaware corporation (the “Borrower”).

     

    WHEREAS,
the Borrower, the Senior Agent and certain financial institutions and other
entities are parties to a Credit, Security, Pledge and Guaranty Agreement dated
as of January 23, 2008 (as amended and as in effect on the date hereof, the
“Existing Senior Credit
Agreement”), pursuant to which such financial institutions and other
entities have agreed to make revolving loans and extend other financial
accommodations to the Borrower in a principal amount of up
$28,000,000;

     

    WHEREAS,
the Borrower, the Subordinated Lender and other entities are parties to a Second
Lien Credit, Security and Pledge Agreement dated as of December 15, 2010 (the
“Existing Subordinated
Agreement”), pursuant to which the Subordinated Lender has agreed to make
a secured term loan to the Borrower in the aggregate amount of up to $8,500,000,
which loan will be secured by, inter alia, the capital stock
and assets of TDI (as defined below), a Subsidiary (as defined below) of the
Borrower; and

     

    WHEREAS,
the Senior Creditors have consented to the acquisition by the Borrower of all of
the capital stock of TDI, on the condition that the Subordinated Lender
subordinates its security interests and rights of payment on the terms and
conditions of this Agreement;

     

    NOW
THEREFORE, in consideration of the foregoing and the mutual covenants herein
contained and other good and valuable consideration, the existence and
sufficiency of which is expressly recognized by all of the parties hereto, the
parties agree as follows:

     

    SECTION
1.       Definitions.

     

    1.1         Defined
Terms.  The following terms, as used herein, have the following
meanings:

     

    “Bankruptcy Code” means the
United States Bankruptcy Code (11 U.S.C. §101 et seq.), as amended from time to
time.

     

    “Borrower” has the meaning set
forth in the introductory paragraph hereof.

     

    “Business Day” shall mean any
day other than a Saturday, Sunday or other day on which banks are required or
permitted to close in the State of New York.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Collateral” means, at any time
of determination, the Senior Collateral and all other property of any Loan Party
in which each of the Senior Agent and the Subordinated Lender purportedly has,
pursuant to the Senior Security Documents and the Subordinated Security
Documents, respectively, a valid and perfected Lien (which Lien has not been
avoided, disallowed, set aside, invalidated, or subordinated pursuant to Chapter
5 of the Bankruptcy Code or otherwise) securing payment of Senior Obligations or
Subordinated Obligations, respectively, and including any Liens granted pursuant
to Section 7 (Insolvency Proceedings) to secure both Senior Obligations and
Subordinated Obligations.

     

    “Combined Senior Collateral
Sale” has the meaning set forth in Section 6.1(b).

     

    “DIP Financing” has the meaning
set forth in Section 7.2.

     

    “Enforcement Action” means,
with respect to the Senior Obligations or the Subordinated Obligations, the
exercise of any rights and remedies with respect to any Senior Collateral or TDI
Collateral, as applicable, securing such obligations or the commencement or
prosecution of enforcement of any of the rights and remedies under, as
applicable, the Senior Documents or the Subordinated Documents, or applicable
law, including without limitation the exercise of any rights of setoff or
recoupment, the exercise of any rights or remedies of a secured creditor under
the Uniform Commercial Code of any applicable jurisdiction or under the
Bankruptcy Code, the seeking of relief from the automatic stay or from any other
stay in any Insolvency Proceeding, the conversion of any subsequent case under
Chapter 11 of the Bankruptcy Code involving the Borrower or any other Loan Party
to a case under Chapter 7 of the Bankruptcy Code, the dismissal of any case
under Chapter 11 of the Bankruptcy Code under Section 1112 of the Bankruptcy
Code or otherwise, and the appointment of a trustee under Chapter 7 or Chapter
11 of the Bankruptcy Code or of a responsible officer or an examiner with
enlarged powers relating to the operation of the business (powers beyond those
set forth in Section 1106(a)(3) and (4) of the Bankruptcy Code) under Section
1106(d) of the Bankruptcy Code.

     

    “Equity Interests” means shares
of the capital stock, partnership interests, membership interests in a limited
liability company, beneficial interests in a trust or other equity interests in
any Person or any warrants, options or other rights to acquire such
interests.

     

    “Existing Senior Credit
Agreement” has the meaning set forth in the first recital paragraph at
the head of this Agreement.

     

    “Existing Subordinated
Agreement” has the meaning set forth in the second recital paragraph at
the head of this Agreement.

     

    “Hedging Obligation” means,
with respect to any Loan Party, any obligations of such Loan Party owed to any
Senior Creditor (or any of its affiliates) in respect of any swap agreement or
hedge agreement in respect of interest rates, currency exchange rates or
commodity prices.

     

    “Insolvency Proceeding” means
any proceeding in respect of bankruptcy, insolvency, winding up, receivership,
dissolution or assignment for the benefit of creditors, in each of the foregoing
events whether under the Bankruptcy Code or any similar federal, state or
foreign bankruptcy, insolvency, reorganization, receivership or similar
law.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    “Lien” means, with respect to
any asset, (a) any mortgage, deed of trust, deed to secure debt, lien, pledge,
hypothecation, assignment, encumbrance, charge or security interest in, on or of
such asset, (b) the interest of a vendor or a lessor under any conditional sale
agreement, capital lease or title retention agreement (or any financing lease
having substantially the same economic effect as any of the foregoing) relating
to such asset and (c) in the case of securities, any purchase option, call or
similar right of a third party with respect to such securities.

     

    “Loan Party” means the Borrower
and each direct or indirect subsidiary (or equivalent) of the Borrower that is
now or hereafter becomes a party to any Senior Document (including, without
limitation, the TDI Group Parties).  All references in this Agreement
to any Loan Party shall include such Loan Party as a debtor-in-possession and
any receiver or trustee for such Loan Party in any Insolvency
Proceeding.

     

    “Permitted Subordinated
Payments” means payments by the Borrower of (i) interest on the
Subordinated Obligations upon the terms set forth in the Subordinated Agreement;
and (ii) fees and expenses due at signing to the Subordinated Lender or any
Subordinated Creditor.

     

    “Person” means any person,
individual, sole proprietorship, partnership, joint venture, corporation,
limited liability company, unincorporated organization, association,
institution, entity, party, including any government and any political
subdivision, agency or instrumentality thereof.

     

    “Post-Petition Interest” means
interest, fees, expenses and other charges that pursuant to the Senior Credit
Agreement or the Subordinated Agreement, continue to accrue after the
commencement of any Insolvency Proceeding, whether or not such interest, fees,
expenses and other charges are allowed or allowable under the Bankruptcy Code or
in any such Insolvency Proceeding.

     

    “Secured Parties” means the
Senior Creditors and the Subordinated Creditors.

     

    “Senior Agent” has the meaning
set forth in the introductory paragraph hereof and any successor, assign or
replacement thereof as administrative agent under a Senior Credit
Agreement.

     

    “Senior Collateral” means all
assets, whether now owned or hereafter acquired by the Borrower or any other
Loan Party, in which a Lien is granted or purported to be granted to any Senior
Creditor as security for any Senior Obligation, including, without limitation,
the TDI Collateral.

     

    “Senior Credit Agreement” means
the collective reference to (i) the Existing Senior Credit Agreement and (ii)
any other credit agreement, loan agreement, note agreement, promissory note,
indenture or other agreement or instrument evidencing or governing the terms of
any indebtedness or other financial accommodation that has been incurred to
extend, replace, refinance or refund in whole or in part the indebtedness and
other obligations outstanding under the Existing Senior Credit Agreement or any
other agreement or instrument referred to in this clause (ii).  Any
reference to the Senior Credit Agreement hereunder shall be deemed a reference
to any Senior Credit Agreement then extant.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    “Senior Creditors” means the
Senior Agent and the “Issuing Bank” and the “Lenders”, both as defined in the
Senior Credit Agreement, and any other Persons that are designated under the
Senior Credit Agreement as the “Senior Creditors” for purposes of this
Agreement.

     

    “Senior Default” means an Event
of Default arising under the Senior Credit Agreement.

     

    “Senior Documents” means the
Senior Credit Agreement, each Senior Security Document and each Senior
Guarantee.

     

    “Senior Guarantee” means any
guarantee by any Loan Party of any or all of the Senior Obligations, whether
contained in the Senior Credit Agreement or separately documented.

     

    “Senior Lien” means any Lien
created by the Senior Security Documents.

     

    “Senior Obligations” means,
subject to Section
11.3 hereof, all monetary obligations under the Senior Documents
(including in respect of any Hedging Obligations and amounts payable to JPMorgan
Chase Bank, N.A. or its Affiliates in connection with any bank account
maintained by the Borrower or any other Loan Party at JPMorgan Chase Bank, N.A.
or its Affiliates or any other banking services provided to the Borrower or any
other Loan Party by JPMorgan Chase Bank, N.A. or its Affiliates) and any funding
obligations of the Senior Agent (on behalf of the Senior Creditors) to any third
party, in each case whether or not allowed or allowable in an Insolvency
Proceeding including, without limitation, the disbursements and reasonable fees
of counsel to the Senior Agent or the Senior Creditors, all obligations to
reimburse or indemnify any Senior Creditor in any way, and all renewals,
extensions, increases, restructurings, refinancings or refunding of any
indebtedness under the Senior Documents in the nature of a “workout” or
otherwise.  To the extent any payment with respect to any Senior
Obligation (whether by or on behalf of any Loan Party, as proceeds of security,
enforcement of any right of setoff or otherwise) is declared to be fraudulent or
preferential in any respect, avoided, set aside or required to be paid to a
debtor in possession, trustee, receiver or similar Person, then the obligation
or part thereof originally intended to be satisfied shall, be deemed to be
reinstated and outstanding as if such payment had not occurred.  To
the extent that any interest, fees, expenses or other charges (including,
without limitation, Post-Petition Interest) to be paid pursuant to the Senior
Credit Agreement are disallowed by order of any court, including, without
limitation, by order of a Bankruptcy Court in any Insolvency Proceeding, such
interest, fees, expenses and charges (including, without limitation,
Post-Petition Interest) shall, as between the Senior Creditors and the
Subordinated Creditors, be deemed to continue to accrue and be added to the
amount to be calculated as the “Senior Obligations”.

     

    “Senior Obligations Repayment
Date” means the first date on which (i) the Senior Obligations (other
than those that constitute Unasserted Contingent Obligations) have been paid in
full (or cash collateralized or defeased in accordance with the terms of the
Senior Documents), (ii) all commitments to extend credit under the Senior
Documents have been terminated, and (iii) there are no outstanding letters of
credit or similar instruments issued under the Senior Documents that are not
otherwise cash collateralized or backed by other credit support, in either case,
in a manner acceptable to the Senior Agent in its sole
discretion.  The expressions “prior payment in full”, “payment in
full, “paid in full” or any other similar term(s) or phrase(s) when used herein
with respect to Senior Documents shall mean the occurrence of all events
described in clauses (i) through (iii) of the definition of “Senior Obligations
Repayment Date.”

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    “Senior Security Documents”
means the “Fundamental Documents,” as defined in the Existing Senior Credit
Agreement, as any of the same may be amended, supplemented, restated or
otherwise modified from time to time, any documents evidencing or securing
Hedging Obligations and any other documents from time to time securing the
payment of the Senior Obligations.

     

    “Senior TDI Collateral Limit”
means, subject to the final sentence of Section 7.2(a), an amount equal to (x)
the interest due and payable on $15,000,000 of the principal of the Senior
Obligations plus
(y) a principal amount of Senior Obligations of up to $15,000,000, or such
higher amount that may be agreed to in writing by the Subordinated Lender (in
its sole discretion).

     

    “Subordinated Agreement” means
the collective reference to (i) the Existing Subordinated Agreement and (ii) any
other credit agreement, loan agreement, securities purchase agreement, note
purchase agreement, note agreement, promissory note, indenture, any other
agreement or instrument evidencing or governing the terms of any indebtedness or
other financial accommodation that has been incurred to extend, replace,
refinance or refund in whole or in part the indebtedness and other obligations
outstanding under the Existing Subordinated Agreement or any other agreement or
instrument referred to in this clause (ii).  Any reference to the
Subordinated Agreement hereunder shall be deemed a reference to any Subordinated
Agreement then extant.

     

    “Subordinated Collateral” means
all of the property of the Borrower and any TDI Group Party, whether real or
personal, or mixed, as to which a Lien is granted as security for the
Subordinated Obligations.

     

    “Subordinated Creditors” means
the Subordinated Lender, its successors and assigns, and any other holder from
time to time of any Subordinated Obligations or any interest
therein.

     

    “Subordinated Documents” means
each Subordinated Agreement, each Subordinated Security Document, each guarantee
of the Subordinated Obligations by any TDI Group Party and each other document
from time to time evidencing, securing or entered into in connection with the
Subordinated Obligations.

     

    “Subordinated Lender” has the
meaning set forth in the introductory paragraph hereof but shall also include
any Person identified as a lender or a creditor in any Subordinated Agreement
other than the Existing Subordinated Agreement.

     

    “Subordinated Lien” means any
Lien created by the Subordinated Security Documents.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    “Subordinated Obligations”
means all monetary obligations of the Borrower or the TDI Group Parties under
the Subordinated Documents, in each case whether or not allowed or allowable in
an Insolvency Proceeding.  To the extent any payment with respect to
any Subordinated Obligation (whether by or on behalf of the Borrower or any TDI
Group Party, as proceeds of security, enforcement of any right of setoff or
otherwise) is declared to be fraudulent or preferential in any respect, avoided,
set aside or required to be paid to a debtor in possession, trustee, receiver or
similar Person, then the obligation or part thereof originally intended to be
satisfied shall be deemed to be reinstated and outstanding as if such payment
had not occurred.  Notwithstanding any other provision to the contrary
hereof, (i) the term “Subordinated Obligations”
will include accrued interest, fees, costs, and other charges incurred under the
Subordinated Agreement and the other Subordinated Documents, whether incurred
before or after commencement of an Insolvency Proceeding, and whether or not
allowable in an Insolvency Proceeding, provided, that (ii) the term
“Subordinated Obligations” will not include any purchase price, earnout,
indemnification or other payments required to be made to Hollywood Media Corp.,
in its capacity as a “Selling Stockholder” under and pursuant to the Hollywood
SPA.

     

    “Subordinated Security
Documents” means the “Fundamental Documents,” as defined in the Existing
Subordinated Agreement, as any of the same may be amended, supplemented,
restated or otherwise modified from time to time, and any other documents from
time to time securing the payment of the Subordinated Obligations.

     

    “Subsidiary” means, with
respect to any Person, any corporation, association, joint venture, partnership,
limited liability company or other business entity (whether now existing or
hereafter organized) of which at least a majority of the voting stock or other
ownership interests having ordinary voting power for the election of directors
(or the equivalent) is, at the time as of which any determination is being made,
owned or controlled by such Person or one or more subsidiaries of such Person or
by such Person and one or more subsidiaries of such Person.

     

    “TDI” means Theatre Direct NY,
Inc.

     

    “TDI Collateral” means all
assets, whether now owned or hereafter acquired by any TDI Group Party, in which
a Lien is granted or purported to be granted to any Senior Creditor or
Subordinated Creditor as security for any Senior Obligation or Subordinated
Obligation including, without limitation, all Equity Interests owned by the
Borrower or any of its Subsidiaries in any TDI Group Party.

    

    “TDI Group Parties” means,
collectively, TDI and the TDI Subsidiaries and each, individually is, a “TDI Group Party”.

    

    “TDI Subsidiaries” means,
collectively, all of the wholly-owned Subsidiaries of TDI.

     

    “Unasserted Contingent
Obligations” means, at any time, Senior Obligations for taxes, costs,
indemnifications, reimbursements, damages and other liabilities (excluding (i)
the principal of, and interest and premium (if any) on, and fees and expenses
relating to, any Senior Obligation and (ii) contingent reimbursement obligations
in respect of amounts that may be drawn under outstanding letters of credit) in
respect of which no assertion of liability (whether oral or written) and no
claim or demand for payment (whether oral or written) has been made (and, in the
case of Senior Obligations for indemnification, no notice for indemnification
has been issued by the indemnitee) at such time.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    “Uniform Commercial Code” means
the Uniform Commercial Code as in effect from time to time in the State of New
York.

     

    1.2         Amended
Agreements.  All references in this Agreement to agreements or
other contractual obligations shall, unless otherwise specified, be deemed to
refer to such agreements or contractual obligations as amended, supplemented,
restated or otherwise modified from time to time.

     

    SECTION
2.      Override.

     

    2.1         This Agreement
Prevails.  Each Senior Creditor and Subordinated Creditor, as
applicable, hereby agrees that to the extent there is any inconsistency between
the terms of any Senior Document or Subordinated Document, as applicable, and
this Agreement, this Agreement shall prevail.

     

    SECTION
3.      Payment
Priorities.

     

    3.1         Agreement to
Subordinate.  Each Subordinated Creditor agrees that the
Subordinated Obligations are and shall be, except as provided herein,
subordinate, junior and subject in right of payment, to the extent and in the
manner hereinafter set forth, to the prior payment in full of the Senior
Obligations.  The expressions “prior payment in full”, “payment in
full, “paid in full” or any other similar term(s) or phrase(s) when used herein
with respect to Senior Documents shall mean the occurrence of all events
described in clauses (i) through (iii) of the definition of “Senior Obligations
Repayment Date.”

     

    3.2         Restrictions on Payment of
the Subordinated Obligations, etc.  (a) Except as otherwise
expressly permitted herein, no Subordinated Creditor will ask, demand, sue for,
take or receive, directly or indirectly, from a Loan Party, in cash or other
property, by setoff, by realizing upon collateral, foreclosing on any lien or
otherwise, by exercise of any remedies or rights under the Subordinated
Documents or at law or by executions, garnishments, levies, attachments or by
any other action relating to the Subordinated Obligations, or in any other
manner, payment of, or additional security for (unless the Senior Creditors
shall have received or shall also receive a corresponding senior security
interest), all or any part of the Subordinated Obligations unless and until the
Senior Obligations shall have been paid, provided that each
Subordinated Creditor may receive, and the Borrower may pay (but not prepay)
Permitted Subordinated Payments.

     

    Notwithstanding the foregoing, Borrower
may not make and Subordinated Creditors may not receive any Permitted
Subordinated Payments or any other amount due with respect to the Subordinated
Obligations if, at the time of such payment, (1) Borrower and Subordinated
Lender shall have received written notice from Senior Agent stating that a
Senior Default then exists and is continuing, (2) each such Senior Default shall
not have been cured or waived in accordance with the terms of the Senior
Documents and (3) 180 days shall not have elapsed since the date such notice was
received (the period during which such conditions exists being referred to as a
“Limited Blockage
Period”).

     

    
      
         

      

      
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    (b)         Borrower
may resume making Permitted Subordinated Payments (and make any Permitted
Subordinated Payments missed due to the existence of a Limited Blockage Period)
in respect of the Subordinated Obligations upon the expiration of the Limited
Blockage Period, whether by cure or waiver of the applicable Senior Default or
expiration of the 180 day period with respect to the Limited Blockage
Period.

     

    (c)          Notwithstanding
any provision of this Section 3.2 to the contrary, the failure of Borrower to
make any payment with respect to the Subordinated Obligations by reason of the
operation of this subsection 3.2 shall not be construed as preventing the
Subordinated Creditors from declaring an Event of Default under the applicable
Subordinated Documents in connection with such payment.

     

    (d)         Except
as expressly permitted in Section 3.2(a) above, Borrower will not (and it will
not allow any other Loan Party to) make any payment of any of the Subordinated
Obligations, or take any other action, in contravention of the provisions of
this Agreement.

     

    3.3          Additional Provisions
Concerning Payment Subordination. Each Subordinated Creditor and the
Borrower agrees as follows:

     

    (a)          In
the event of (x) any dissolution, winding up, liquidation or reorganization of
any TDI Group Party (whether voluntary or involuntary and whether in bankruptcy,
insolvency or receivership proceedings, or upon an assignment for the benefit of
creditors or proceedings for voluntary or involuntary liquidation, dissolution
or other winding up of that Loan Party, whether or not involving insolvency or
bankruptcy, or any other marshalling of the assets and liabilities of that TDI
Group Party or otherwise); or (y) any Event of Default (as defined in the Senior
Documents) or an event which with notice and/or passage of time would constitute
an Event of Default (as such term is defined in the Senior Documents), or any
default, demand for payment or acceleration of maturity regarding the
Subordinated Obligations:

     

    (i)           Senior
Obligations in an amount up to the Senior TDI Collateral Limit shall first be
paid to the Senior Agent for the benefit of the Senior Creditors before any
payment or distribution is made upon or in connection with the Subordinated
Obligations; and

     

    (ii)           Any
payment or distribution of assets of any such TDI Group Party, whether in cash,
property or securities to which any Subordinated Creditor would be entitled
except for the provisions hereof, shall be paid or delivered by that TDI Group
Party, or any receiver, trustee in bankruptcy, liquidating trustee, disbursing
agent, agent or other Person making such payment or distribution, directly to
the Senior Agent for the benefit of the Senior Creditors, to the extent
necessary to pay an amount of the Senior Obligations remaining unpaid up to the
Senior TDI Collateral Limit, after giving effect to any concurrent payment or
distribution to the Senior Creditors before any payment or distribution is made
to any Subordinated Creditor;

     

    in each
case, to be applied as specified in Section 6.1;

     

    (b)          In
any proceeding referred to or resulting from any event referred to in subsection
(a) of this Section 3.3 commenced by or against that TDI Group
Party:

     

    
      
         

      

      
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    (i)           Senior
Agent may, and is hereby irrevocably authorized and empowered (in its own name
or in the name of any Subordinated Creditor or otherwise), but shall have no
obligation to, (A) demand, sue for, collect and receive every payment or
distribution referred to in subsection (a) of this Section 3.3 and give
acquittance therefor, (B) file claims and proofs of claim in respect of the
Subordinated Obligations; provided, that the
Senior Agent agrees not to file (and it shall have no right to file or vote)
such proofs of claim without giving at least five (5) Business Days’ prior
written notice to the Subordinated Lender, and (C) take such other action as the
Senior Agent may deem necessary or advisable for the exercise or enforcement of
any of the rights or interests of the Senior Creditors hereunder;

     

    (ii)           Each
Subordinated Creditor will duly and promptly take such action as the Senior
Agent may reasonably request to accelerate and/or foreclose upon the
Subordinated Obligations, to file appropriate claims or proofs of claim with
respect thereto, to execute and deliver to the Senior Agent such powers of
attorney, assignments or other instruments as the Senior Agent may reasonably
request in order to enable it to enforce any and all claims with respect to the
Subordinated Obligations, and to collect and receive any and all payments or
distributions which may be payable or deliverable upon or with respect to the
Subordinated Obligations for the account of the Senior Creditors;

     

    (c)          In
the event of (x) any dissolution, winding up, liquidation or reorganization of a
the Borrower or any other Loan Party (other than a TDI Group Party) (whether
voluntary or involuntary and whether in bankruptcy, insolvency or receivership
proceedings, or upon an assignment for the benefit of creditors or proceedings
for voluntary or involuntary liquidation, dissolution or other winding up of
that Loan Party, whether or not involving insolvency or bankruptcy, or any other
marshalling of the assets and liabilities of that Loan Party or otherwise); or
(y) any Event of Default (as defined in the Senior Documents) or an event which
with notice and/or passage of time would constitute an Event of Default (as such
term is defined in the Senior Documents), or any default, demand for payment or
acceleration of maturity regarding the Subordinated Obligations:

     

    (i)           All
Senior Obligations shall first be paid to the Senior Agent for the benefit of
the Senior Creditors in full before any payment or distribution is made upon or
in connection with the Subordinated Obligations; and

     

    (ii)           Any
payment or distribution of assets of any such Loan Party, whether in cash,
property or securities to which any Subordinated Creditor would be entitled
except for the provisions hereof, shall be paid or delivered by that Loan Party,
or any receiver, trustee in bankruptcy, liquidating trustee, disbursing agent,
agent or other person making such payment or distribution, directly to the
Senior Agent for the benefit of the Senior Creditors, to the extent necessary to
pay in full all Senior Obligations remaining unpaid, after giving effect to any
concurrent payment or distribution to the Senior Creditors before any payment or
distribution is made to any Subordinated Creditor;

     

    notwithstanding
the foregoing, with respect to any of the events described in the first
paragraph of clause (c) above, with respect to that portion of the Borrower’s
Collateral that is TDI Collateral, the proceeds of that portion of any such
payment or distribution that is derived from the TDI Collateral shall be applied
as specified in Section 6.1;

     

    
      
         

      

      
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    (d)         In
any proceeding referred to or resulting from any event referred to in subsection
(c) of this Section 3.3 commenced by or against the Borrower or any other Loan
Party (other than a TDI Group Party) and subject, in the case of the Borrower,
to Section 6.1:

     

    (i)           Senior
Agent may, and is hereby irrevocably authorized and empowered (in its own name
or in the name of any Subordinated Creditor or otherwise), but shall have no
obligation to, (A) demand, sue for, collect and receive every payment or
distribution referred to in subsection (c) of this Section 3.3 and give
acquittance therefor, (B) file claims and proofs of claim in respect of the
Subordinated Obligations; provided, that the
Senior Agent agrees not to file or vote (and it shall have no right to file or
vote) such proofs of claim without giving at least five (5) Business Days’ prior
written notice to the Subordinated Lender, and (C) take such other action as the
Senior Agent may deem necessary or advisable for the exercise or enforcement of
any of the rights or interests of the Senior Creditors hereunder;

     

    (ii)           Each
Subordinated Creditor will duly and promptly take such action as the Senior
Agent may reasonably request to accelerate and/or foreclose upon the
Subordinated Obligations, to file appropriate claims or proofs of claim with
respect thereto, to execute and deliver to the Senior Agent such powers of
attorney, assignments or other instruments as the Senior Agent may reasonably
request in order to enable it to enforce any and all claims with respect to the
Subordinated Obligations, and to collect and receive any and all payments or
distributions which may be payable or deliverable upon or with respect to the
Subordinated Obligations for the account of the Senior Creditors;

     

    (e)          All
payments or distributions upon or with respect to the Subordinated Obligations
which are received by any Subordinated Creditor contrary to the provisions of
this Agreement shall be deemed to be the property of the Senior Creditors, shall
be received in trust for the benefit of the Senior Creditors, shall be
segregated from other funds and property held by such Subordinated Creditor and
shall be forthwith paid over to the Senior Agent for the benefit of the Senior
Creditors in the same form as so received (with any necessary endorsement) to be
applied to the payment or prepayment of the Senior Obligations until the Senior
Obligations shall have been paid in full;

     

    (f)          Any
Subordinated Creditor hereby waives any requirement for marshalling of assets by
the Senior Agent in connection with any foreclosure of any lien of the Senior
Creditors under the Senior Documents;

     

    (g)         No
Subordinated Creditor shall take any action to impair or otherwise adversely
affect the foreclosure of, or other realization of the Senior Agent’s or the
Senior Creditors’ rights under the Senior Documents; and

     

    (h)         Senior
Agent is hereby authorized to demand specific performance of this Agreement at
any time when any Subordinated Creditor shall have failed to comply with any of
the provisions of this Agreement, and each Subordinated Creditor hereby
irrevocably waives any defense based on the adequacy of a remedy at law which
might be asserted as a bar to such remedy of specific performance.

     

    
      
        
        

      

      
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    3.4          Legend on Subordinated
Documents; Transfer.

     

    (a)           The
Borrower will cause each Subordinated Document to include the following language
(or language to similar effect approved by the Senior Agent) and any other
language Senior Agent reasonably requests to reflect the subordination of the
Subordinated Liens effected hereby:

     

    “Notwithstanding
anything herein to the contrary, the payment of and security for the principal
amount of the indebtedness evidenced by this instrument and the interest
accruing thereon is subject to the provisions of the Subordination and
Intercreditor Agreement dated as of December 15, 2010 (as amended, restated,
supplemented or otherwise modified from time to time, the “Intercreditor Agreement”) by
and among Key Brand Entertainment Inc., as Borrower, Hollywood Media Corp., as
Subordinated Lender and JPMorgan Chase Bank, N.A., as Senior
Agent.  If there is a conflict between the terms of the Intercreditor
Agreement and this Agreement, the terms of the Intercreditor Agreement will
control.”

    

    (b)           Upon
any sale, assignment or other transfer of the Subordinated Agreement or any
interest therein, the transferor shall (i) provide a copy of this Agreement and
the then applicable Senior Credit Agreement to the transferee and (ii) provide a
written instrument to Senior Agent evidencing the transferee’s agreement to be
bound hereby.

     

    SECTION
4.        Lien Priorities.

     

    4.1          Seniority of Liens Securing
Senior Obligations.  (a) A Senior Lien on the TDI Collateral
securing any Senior Obligation will at all times be senior and prior in all
respect to a Subordinated Lien on such TDI Collateral securing any Subordinated
Obligation, and a Subordinated Lien on TDI Collateral securing any Subordinated
Obligation will at all times be junior and subordinate in all respects to a
Senior Lien on such TDI Collateral securing any Senior Obligation.

     

    (b)           Except
as otherwise expressly provided herein, the priority of the Senior Liens
securing Senior Obligations and the rights and obligations of the parties will
remain in full force and effect irrespective of:

     

    (i)
           how a Lien was
acquired (whether by grant, possession, statute, operation of law, subrogation
or otherwise);

     

    (ii)           the
time, manner or order of the grant, attachment, or perfection of a
Lien;

     

    (iii)          any
conflicting provision of the Uniform Commercial Code, or other applicable
law;

     

    (iv)          the
modification of a Senior Obligation or a Subordinated Obligation;

     

    (v)           the
modification of a Senior Document or a Subordinated Document;

     

    (vi)          the
subordination of a Lien on Collateral securing a Senior Obligation to a Lien
securing another obligation of a Loan Party or other Person that is permitted
under the Senior Documents as in effect on the date hereof or secures a DIP
Financing deemed consented by the Subordinated Creditors pursuant to Section
7.2;

     

    
      
         

      

      
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    (vii)        the
exchange of a security interest in any Collateral for a security interest in
other Collateral; or

     

    (viii)       the
commencement of an Insolvency Proceeding.

     

    4.2          Acquisition of Liens and
Guarantees.  (a)  No Subordinated Creditor shall,
without the prior written consent of the Senior Agent, accept any Lien (other
than Liens on the TDI Collateral) securing the Subordinated Debt, acquire any
right or interest in or to any property of the Borrower or any other Loan Party
(other than Liens on the TDI Collateral) or accept any guaranties of the
Subordinated Debt from the Borrower or any Loan Party (other than guaranties
from the TDI Group Parties existing on the date of this
Agreement).  To the extent that any Lien on any property of the
Borrower or any other Loan Party is obtained by any Subordinated Creditor by
operation of law or in violation hereof, such Subordinated Creditor shall hold
such Lien in trust for the Senior Agent and the Senior Creditors and shall,
promptly upon demand by the Senior Agent on behalf of the Senior Creditors,
assign all of its rights in respect of such Lien to Senior Agent on behalf of
the Senior Creditors or, if directed by Senior Agent, release such
Lien.  Further, for so long as any such Lien may exist, it shall be
expressly subordinated to any Lien securing the Senior Obligations.

     

    (b)           Until
the Senior Obligations Repayment Date, and whether or not an Insolvency
Proceeding has commenced, the Subordinated Creditors will not accept any Lien
securing the Subordinated Debt, acquire any right or interest in or to any
property of any TDI Group Party or accept any guaranties of the Subordinated
Debt from any TDI Group Party unless such TDI Group Party grants to the Senior
Creditors a Senior Lien or interest on such property to secure the Senior
Obligations or a senior guaranty of the Senior Obligations, as
applicable.

     

    (c)           Until
the Senior Obligations Repayment Date, and whether or not an Insolvency
Proceeding has commenced, the Senior Creditors will not accept any Lien securing
the Senior Debt, acquire any right or interest in or to any property of any TDI
Group Party or accept any guaranties of the Senior Debt from any TDI Group Party
unless such TDI Group Party grants to the Subordinated Creditors a Subordinated
Lien or interest on such property to secure the Subordinated Obligations or a
junior guaranty of the Subordinated Obligations, as applicable.

     

    4.3          No
Senior Creditor shall object to or contest, or support any other Person in
contesting or objecting to, in any proceeding (including without limitation, any
Insolvency Proceeding), the validity, extent, perfection, priority or
enforceability of any security interest in the TDI Collateral granted to the
Subordinated Lender.  No Subordinated Creditor shall object to or
contest, or support any other Person in contesting or objecting to, in any
proceeding (including without limitation, any Insolvency Proceeding), the
validity, extent, perfection, priority or enforceability of any security
interest in the Senior Collateral (including, without limitation, any TDI
Collateral) granted to the Senior Agent.  Notwithstanding any failure
by any Senior Creditor or Subordinated Creditor to perfect its security
interests in the Senior Collateral or the TDI Collateral, respectively, or any
avoidance, invalidation or subordination by any third party or court of
competent jurisdiction of the security interests in the Senior Collateral or TDI
Collateral granted to the Senior Creditors or the Subordinated Creditors,
respectively, the priority and rights as between the Senior Creditors and the
Subordinated Creditors, respectively, with respect to the Senior Collateral and
the TDI Collateral shall be as set forth herein.

     

    
      
         

      

      
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    4.4           Nature of Senior
Obligations.  The Subordinated Lender on behalf of itself and
the other Subordinated Creditors acknowledges that all or a portion of the
Senior Obligations represents the principal amount of a debt that is revolving
in nature and that the amount thereof that may be outstanding at any time or
from time to time may be increased and reduced and subsequently reborrowed, and
also includes obligations for reimbursement of drawings under letters of credit,
and that the terms of the Senior Obligations may be modified, extended or
amended from time to time in accordance with their terms and in accordance with
the terms of the Subordinated Agreement, and that, subject to the proviso in the
next sentence of this Section 4.4, the aggregate amount of the Senior
Obligations may be increased, replaced or refinanced and without notice to or
consent by the Subordinated Creditors and without affecting the provisions
hereof; provided that the
holders of any such increased, replaced or refinanced indebtedness (or their
agent) bind themselves in a writing addressed to Subordinated Creditors to the
terms of this Agreement.  Without limiting the generality of the
foregoing, the Senior Obligations may, without the consent of the Subordinated
Creditors, be increased to an amount in excess of the maximum amount available
to be borrowed under the Existing Senior Credit Agreement or any other Senior
Credit Agreement, and the Senior Liens may be increased in each case without
affecting the provisions hereof; provided that the subordination
of the Subordinated Liens to the Senior Liens provided in this Agreement shall
not apply to the portion of any Senior Liens securing any amount due under loans
included in the Senior Obligations in excess of the Senior TDI Collateral
Limit.

     

    4.5           Nature of Subordinated
Obligations.  Without limiting or superseding any restrictions
in the Senior Documents from time to time, the Senior Agent on behalf of itself
and the other Senior Creditors acknowledges that (a) the terms of the
Subordinated Obligations may be modified, extended or amended from time to time
in accordance with their terms, and that the aggregate amount of the
Subordinated Obligations may be increased, replaced or refinanced and without
notice to or consent by the Senior Creditors and without affecting the
provisions hereof; provided, that the holders of any such increased, replaced or
refinanced indebtedness (or their agent) bind themselves in a writing addressed
to Senior Creditors to the terms of this Agreement and (b) the Subordinated
Obligations may, without the consent of the Senior Creditors, be increased to an
amount in excess of the maximum amount available to be borrowed under the
Existing Subordinated Agreement or any other Subordinated Agreement, and the
Subordinated Liens may be increased in each case without affecting the
provisions hereof.

     

    
      
        
        

      

      
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    SECTION
5.        Enforcement
Rights.

     

    5.1          Exclusive
Enforcement.

     

    (a)           Exclusive Enforcement of
Senior Collateral.  No Subordinated Creditor shall take,
exercise or otherwise prosecute any action as an unsecured creditor with respect
to the Senior Collateral (subject to the proviso at the end of Section
5.2(a)).  The Senior Creditors shall have the exclusive right to take,
continue, oppose, or otherwise prosecute, defend, settle or consent to any
Enforcement Action with respect to the Senior Collateral, without any
consultation with or consent of any Subordinated Creditor and the Subordinated
Creditors shall not take any position contrary to the Senior Creditors, or
support any other Person who takes any position contrary to the Senior
Creditors, with respect to such Enforcement Action, but subject to the proviso
set forth in Section 7.1.  Upon the occurrence and during the
continuance of a default or an event of default under the Senior Documents, the
Senior Agent and the other Senior Creditors may take and continue any
Enforcement Action with respect to the Senior Obligations and the Senior
Collateral in such order and manner as they may determine in their sole
discretion.

     

    (b)           Each
of the parties hereto acknowledges and agrees that the Senior Collateral is a
unique asset of the Borrower and the other Loan Parties the value of which is
not readily ascertainable.  In particular, the parties hereto
acknowledge and agree that it will be commercially reasonable and sufficient for
purposes of Article 9 of the UCC and applicable law for the Senior Agent to
commence an Enforcement Action based upon any valuations or other financial
information prepared by a third party and passed on by the Borrower to the
Senior Agent.

     

    5.2          Standstill and
Waivers.

     

    (a)           Standstill and Waivers by
Subordinated Lender and the Subordinated Creditors.  The
Subordinated Lender, on behalf of itself and the other Subordinated Creditors,
agrees that, until the Senior Obligations Repayment Date, subject to the proviso
set forth in Section 7.1:

     

    (i)           Without
the prior written consent of the Senior Agent, they will not take or cause to be
taken any action, the purpose or effect of which is to make any Lien in respect
of any Subordinated Obligation pari passu with or senior to, or to give any
Subordinated Creditor any preference or priority relative to, the Liens with
respect to the Senior Obligations or the Senior Creditors with respect to any of
the Senior Collateral;

     

    (ii)           Without
the prior written consent of the Senior Agent, they will not contest, oppose,
object to, interfere with, hinder or delay, in any manner, whether by judicial
proceedings (including without limitation the filing of an Insolvency
Proceeding) or otherwise, any foreclosure, sale, lease, exchange, transfer or
other disposition of the Senior Collateral by any Senior Creditor or any other
Enforcement Action taken (or any forbearance from taking any Enforcement Action)
by or on behalf of any Senior Creditor with respect to the Senior
Collateral;

     

    (iii)           They
have no right to (x) direct either the Senior Agent or any other Senior Creditor
to exercise any right, remedy or power with respect to the Senior Collateral or
pursuant to the Senior Security Documents or (y) consent or object to the
exercise by the Senior Agent or any other Senior Creditor of any right, remedy
or power with respect to the Senior Collateral or pursuant to the Senior
Security Documents or to the timing or manner in which any such right is
exercised or not exercised (or, to the extent they may have any such right
described in this clause (a)(iii), whether as a junior lien creditor or
otherwise, they hereby irrevocably waive such right);

     

    
      
         

      

      
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    (iv)          Without
the prior written consent of the Senior Agent, they will not institute any suit
or other proceeding or otherwise assert in any suit, Insolvency Proceeding or
other proceeding any claim against any Senior Creditor seeking damages from or
other relief by way of specific performance, injunction or otherwise, with
respect to, and no Senior Creditor shall be liable for, any action taken or
omitted to be taken by any Senior Creditor with respect to the Senior Collateral
or pursuant to the Senior Documents with respect to the Senior Collateral;
and

     

    (v)           Without
the prior written consent of the Senior Agent, they will not make any judicial
or nonjudicial claim or demand or commence any judicial or non-judicial
proceedings or otherwise assert any remedy against any Loan Party or any of its
subsidiaries or affiliates under or with respect to any Subordinated Security
Document seeking payment or damages from or other relief by way of specific
performance, injunction or otherwise under or with respect to any Subordinated
Security Document (other than filing a proof of claim) or exercise any right,
remedy or power under or with respect to, or otherwise take any action to
enforce, other than filing a proof of claim, any Subordinated Security Document;
provided, that
in the case of any act by the Borrower constituting dishonesty or diversion or
misappropriation of funds, the Subordinated Lender may to the extent permitted
by the Subordinated Security Documents bring an action for damages, recovery of
funds, specific performance or injunction in respect of such act (but not an
action to foreclose any Subordinated Lien), provided, further, that any sum
recovered or collected in any such action shall be segregated and held in trust
and promptly paid over to the Senior Agent, for the benefit of the Senior
Creditors pursuant to the terms of Section 6.1.

     

    (vi)          Without
the prior written consent of the Senior Agent, they will not commence judicial
or nonjudicial foreclosure proceedings with respect to, seek to have a trustee,
receiver, liquidator or similar official appointed for or over, attempt any
action to take possession of any Senior Collateral, exercise any right, remedy
or power with respect to, or otherwise take any action to enforce their interest
in or realize upon, the Senior Collateral or pursuant to the Subordinated
Security Documents; and

     

    (vii)         Without
the prior written consent of the Senior Agent, they will not seek, and hereby
waive, any right, to have the Senior Collateral or any part thereof marshaled
upon any foreclosure or other disposition of the Senior Collateral;

     

    provided that
notwithstanding the foregoing, any Subordinated Creditor may exercise its rights
and remedies in respect of the TDI Collateral under the Subordinated Security
Documents or applicable law after the passage of a period of 180 days (the
“Standstill Period”)
from the date of delivery of a notice in writing to the Senior Agent of such
Subordinated Lender’s intention to exercise such rights and remedies, which
notice may only be delivered following the occurrence of and during the
continuation of an “Event of Default” under and as defined in the Subordinated
Agreement; provided, further, however,
that, notwithstanding the foregoing, in no event shall any Subordinated Creditor
exercise or continue to exercise any such rights or remedies if, notwithstanding
the expiration of the Standstill Period, (i) any Senior Creditor shall have
commenced and be diligently pursuing the exercise of any of its rights and
remedies with respect to any of the TDI Collateral (prompt notice of such
exercise to be given to the Subordinated Lender), (ii) an Insolvency Proceeding
in respect of any TDI Group Party shall have been commenced or (iii) the
acceleration of the Subordinated Obligations shall be rescinded in accordance
with the terms of the Subordinated Agreement; and provided, further, that in any
Insolvency Proceeding commenced by or against any TDI Group Party, the
Subordinated Creditors may take any action expressly permitted by Section
7.

     

    
      
         

      

      
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    5.3           Judgment
Creditors.  In the event that any Subordinated Creditor becomes a
judgment lien creditor in respect of Senior Collateral as a result of its
enforcement of its rights as an unsecured creditor, such judgment lien shall be
subject to the terms of this Agreement for all purposes (including in relation
to the Senior Liens and the Senior Obligations) to the same extent as all other
Liens securing the Subordinated Obligations subject to the terms of this
Agreement.

     

    5.4           Cooperation. 
Each Subordinated Creditor agrees that it shall take such actions as the Senior
Agent shall reasonably request (at the Borrower’s expense) in connection with
the exercise by the Senior Creditors of their rights set forth
herein.

     

    5.5           No Additional Rights For the
Loan Parties Hereunder.  Except as provided in Section 5.6, if any
Secured Party shall enforce its rights or remedies in violation of the terms of
this Agreement, no Loan Party shall be entitled to use such violation as a
defense to any action by any Senior Creditor or Subordinated Creditor, nor to
assert such violation as a counterclaim or basis for set off or recoupment
against any Senior Creditor or Subordinated Creditor.

     

    5.6           Actions Upon
Breach.  (a)  If any Subordinated Creditor, contrary to
this Agreement, commences or participates in any action or proceeding against
any Loan Party or any Senior Collateral, such Loan Party, with the prior written
consent of the Senior Agent, may interpose as a defense, or the basis for an
equitable or legal claim, or a dilatory plea the making of this Agreement, and
any Senior Creditor may intervene and interpose such defense or plea in its or
their name or in the name of such Loan Party.

     

    (b)           Should
any Subordinated Creditor, contrary to this Agreement, in any way take, attempt
to or threaten to take any action with respect to the Senior Collateral
(including, without limitation, any attempt to realize upon or enforce any
remedy with respect to this Agreement), or fail to take any action required by
this Agreement (in its own name or in the name of the relevant Loan Party) this
Agreement shall create an irrebutable presumption and admission by such
Subordinated Creditor that relief against such Subordinated Creditor by
injunction, specific performance and/or other appropriate equitable relief is
necessary to prevent irreparable harm to the Senior Creditors, it being
understood and agreed by the Subordinated Lender on behalf of each Subordinated
Creditor that (i) the Senior Creditors’ damages from its actions may at that
time be difficult to ascertain and may be irreparable, and (ii) each
Subordinated Creditor waives any defense that the Loan Parties and/or the Senior
Creditors cannot demonstrate damage and/or be made whole by the awarding of
damages.

     

    5.7           No Consequential or Punitive
Damages. Notwithstanding anything contained herein to the contrary, under
no event shall any party hereto be entitled to any consequential or punitive
damages in connection with any action commenced hereunder or in connection with
any of the Senior Obligations or Subordinated Obligations.

    
      
         

      

      
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    SECTION 6. 
       Application Of Proceeds Of
Collateral; Inspection and Insurance.

     

    6.1           Proceeds of TDI
Collateral.

     

    (a)           Proceeds
obtained from the sale or disposition of the TDI Collateral shall be allocated
in the following order of priority (at the election of the Senior Lender the TDI
Collateral may be used to repay the Senior Obligations before any other Senior
Collateral is used to repay Senior Obligations):

     

    (i)             first, to Senior Agent for
the benefit of the Senior Creditors until the Senior Agent has received an
amount equal to the Senior TDI Collateral Limit;

     

    (ii)           second, to Subordinated
Lender until the Subordinated Obligations are paid in full;

     

    (iii)           third, to Senior Agent for
the benefit of the Senior Creditors until the Senior Obligations are paid in
full; and

     

    (iv)           fourth, any remainder to the
Borrower.

     

    (b)           In
the event of any sale of Senior Collateral together with TDI Collateral in a
single sale (a “Combined Senior
Collateral Sale”), the proceeds of the TDI Collateral for purposes of
this Section 6.1 shall be determined as follows:

     

    (i)     
      If the terms of the Combined Senior
Collateral Sale allocate the purchase price thereof between the TDI Collateral
included in the Combined Senior Collateral Sale and the other Senior Collateral
included in the Combined Senior Collateral Sale, such allocation (net of
transactions costs) shall be used for purposes of Section 6.1(a).

     

    (ii)           If
the Senior Agent notifies the Subordinated Lender in writing that it has elected
to do so, Senior Agent may appoint a nationally recognized appraiser or
valuation consultant, not affiliated with Senior Agent, to determine the
relative value of the TDI Collateral as a percentage of the value of all assets
included in the Combined Senior Collateral Sale and the percentage of the net
proceeds of the Combined Senior Collateral Sale shall be used for purposes of
Section 6.1(a).

     

    (iii)          If
neither Section 6.1(b)(i) nor Section 6.1(b)(ii) shall apply, the portion of the
proceeds of the Combined Senior Collateral Sale attributable to the TDI
Collateral shall equal the net proceeds of the Combined Senior Collateral Sale
multiplied by a fraction, the numerator of which is the Senior TDI Collateral
Limit and the denominator of which is the sum of the Senior Obligations and the
Subordinated Obligations immediately prior to the Combined Senior Collateral
Sale.

     

    6.2           Turnover
Provisions.  Until the occurrence of the Senior Obligations
Repayment Date, any Senior Collateral, including without limitation any such
Senior Collateral constituting proceeds, that may be received by any
Subordinated Creditor contrary to or in violation of this Agreement shall be
segregated and held in trust and promptly paid over to the Senior Agent, for the
benefit of the Senior Creditors (in accordance with Section 6.1), in the same
form as received, with any necessary endorsements, and each Subordinated
Creditor hereby authorizes the Senior Agent to make any such endorsements as
agent for the Subordinated Lender (which authorization, being coupled with an
interest, is irrevocable).

    
      
         

      

      
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    6.3          Inspection Rights and
Insurance.  (a) The Subordinated Lender and the Subordinated
Creditors agree that the Senior Creditors and their representatives and invitees
may at any time inspect, repossess, remove and otherwise deal with the Senior
Collateral, and the Senior Agent may advertise and conduct public auctions or
private sales of the Senior Collateral, in each case without notice to, the
involvement of or interference by the Subordinated Lender or any Subordinated
Creditor or liability to the Subordinated Lender or any Subordinated
Creditor.

     

    (b)           Until
the Senior Obligations Repayment Date has occurred, the Senior Agent will have
the sole and exclusive right (i) to be named as additional insured and loss
payee under any insurance policies maintained from time to time by any Loan
Party (except that the Subordinated Lender shall have the right to be named as
additional insured and loss payee so long as its subordinated status is
identified in a manner satisfactory to the Senior Agent); (ii) to reasonably
adjust or settle any insurance policy or claim covering the Senior Collateral in
the event of any loss thereunder; and (iii) to approve any award granted in any
condemnation or similar proceeding affecting the Senior Collateral.

     

    SECTION
7.        Insolvency
Proceedings.

     

    7.1           Filing of
Motions.  Until the Senior Obligations Repayment Date has occurred,
the Subordinated Lender agrees on behalf of itself and the other Subordinated
Creditors that no Subordinated Creditor shall, in or in connection with any
Insolvency Proceeding, file any pleadings or motions, take any position at any
hearing or proceeding of any nature, or otherwise take any action whatsoever, in
each case in respect of any of the Senior Collateral, including, without
limitation, with respect to the determination of any Liens or claims held by the
Senior Agent (including the validity and enforceability thereof) or any other
Senior Creditor or the value of any claims of such parties under Section 506(a)
of the Bankruptcy Code or otherwise; provided that the
Subordinated Lender may file a proof of claim in an Insolvency Proceeding
involving a Loan Party, subject to the limitations contained in this Agreement
and only if consistent with the terms of this Agreement and the limitations on
the Subordinated Lender imposed hereby.

     

    7.2           Financing
Matters.  (a) If any Loan Party becomes subject to any Insolvency
Proceeding, and if the Senior Agent or the other Senior Creditors desire to
consent (or not object) to the use of cash collateral under the Bankruptcy Code
or to provide financing to any Loan Party under the Bankruptcy Code or to
consent (or not object) to the provision of such financing to any Loan Party by
any third party (any such financing, “DIP Financing”) then the
Subordinated Lender agrees, on behalf of itself and the other Subordinated
Creditors, that each Subordinated Creditor (i) will take no position
contrary to the Senior Creditors, nor support any Person who takes a position
contrary to the Senior Creditors with respect to the use of such cash collateral
or to such DIP Financing, (ii) will be deemed to have consented to, will
raise no objection to, nor support any other Person objecting to, the use of
such cash collateral or to such DIP Financing, (iii) will not request or accept
adequate protection or any other relief in connection with the use of such cash
collateral or such DIP Financing except as set forth in paragraph 7.4 below,
(iv) will subordinate (and will be deemed hereunder to have subordinated)
the Subordinated Liens (x) to such DIP Financing on the same terms as the Senior
Liens are subordinated thereto (and such subordination will not alter in any
manner the terms of this Agreement), (y) to any adequate protection provided to
the Senior Creditors and (z) to any “carve-out” agreed to by the Senior Agent or
the other Senior Creditors and (v) agrees that notice received two (2) calendar
days prior to the entry of an order approving such usage of cash collateral or
approving such financing shall be adequate notice.  For the avoidance of
doubt, any amounts advanced to a Loan Party as part of a DIP Financing shall not
apply toward or be restricted by the Senior TDI Collateral Limit and shall not
be subject to Section 6.1.

    
      
         

      

      
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    (b)           If
any Loan Party becomes subject to any Insolvency Proceeding, and if the Senior
Agent or the other Senior Creditors objects to (or does not affirmatively
consent to or support) the use of cash collateral under the Bankruptcy Code or
to the provision of any DIP Financing, the Subordinated Lender agrees, on behalf
of itself and the other Subordinated Creditors, that each Subordinated Creditor
(i) will take no position contrary to the Senior Creditors, nor support any
Person who takes a position contrary to the Senior Creditors with respect to the
use of such cash collateral or to such DIP Financing, (ii) will not consent
to, and upon request will join in any objection by the Senior Agent or other
Senior Creditors to, the use of such cash collateral or to such DIP Financing,
(iii) will not provide information to or otherwise act in concert with and, to
the extent it may lawfully do so, permit any Person that it controls, is
controlled by or is under common control with, to provide or participate in any
such DIP Financing (provided, that an
affiliate of any Subordinated Creditor or affiliate thereof who is also a Senior
Creditor will not be precluded from participating in such DIP Financing to the
extent that (1) such Subordinated Creditor or such affiliate remains a Senior
Creditor at the time such Insolvency Proceeding is commenced and (2) the
opportunity to so participate is generally offered to the Senior Creditors by
the Senior Agent or an affiliate thereof) and (iv) agrees that notice received
three (3) business days prior to the filing of any objection to such usage of
cash collateral or approving such financing shall be adequate notice and
sufficient time for the Subordinated Lender and the other Subordinated Creditors
to join therein.

     

    7.3           Relief From the Automatic
Stay.  The Subordinated Lender agrees, on behalf of itself and the
other Subordinated Creditors, that none of them will seek relief from the
automatic stay or from any other stay in any Insolvency Proceeding or take any
action in derogation thereof in each case in respect of any Senior Collateral,
without the prior written consent of the Senior Agent.

    
      
         

      

      
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    7.4           Adequate
Protection.  The Subordinated Lender, on behalf of itself and the
other Subordinated Creditors, agrees that none of them shall object, contest, or
support any other Person objecting to or contesting, (i) any request by the
Senior Agent or the other Senior Creditors for adequate protection or any
adequate protection provided to the Senior Agent or the other Senior Creditors
or (ii) any objection by the Senior Agent or the other Senior Creditors to any
motion, relief, action or proceeding based on a claim of a lack of adequate
protection or (iii) the payment of interest, fees, expenses or other amounts to
the Senior Agent or any other Senior Creditor under Section 506(b) or 506(c) of
the Bankruptcy Code or otherwise.  Notwithstanding anything contained in
this Section and in Section 7.2(a)(ii) (but subject to all other provisions of
this Agreement, including, without limitation, Sections 7.2(a)(i) and 7.3), in
any Insolvency Proceeding, (x) if the Senior Creditors (or any subset thereof)
are granted adequate protection consisting of additional collateral (with
replacement liens on such additional collateral) and superpriority claims in
connection with any DIP Financing or use of cash collateral, and the Senior
Creditors do not object to the adequate protection being provided to the Senior
Creditors, then in connection with any such DIP Financing or use of cash
collateral the Subordinated Lender, on behalf of itself and any of the
Subordinated Creditors, may seek or accept adequate protection consisting solely
of (A) a replacement Lien on the same additional collateral, subordinated to the
Liens securing the Senior Obligations and such DIP Financing on the same basis
as the other Liens securing the Subordinated Obligations are so subordinated to
the Senior Obligations under this Agreement and (B) superpriority claims junior
in all respects to the superpriority claims granted to the Senior Creditors, and
(y) in the event the Subordinated Lender, on behalf of itself and the
Subordinated Creditors, seeks or accepts adequate protection in accordance with
clause (x) above and such adequate protection is granted in the form of
additional collateral, then the Subordinated Lender, on behalf of itself or any
of the Subordinated Creditors, agrees that the Senior Agent shall also be
granted a senior Lien on such additional collateral as security for the Senior
Obligations and any such DIP Financing and that any Lien on such additional
collateral securing the Subordinated Obligations shall be subordinated to the
Liens on such collateral securing the Senior Obligations and any such DIP
Financing (and all obligations relating thereto) and any other Liens granted to
the Senior Creditors as adequate protection, with such subordination to be on
the same terms that the other Liens securing the Subordinated Obligations are
subordinated to such Senior Obligations under this Agreement.  The
Subordinated Lender on behalf of itself and the other Subordinated Creditors,
agrees that except as expressly set forth in his Section none of them shall seek
or accept adequate protection without the prior written consent of the Senior
Agent.

     

    7.5           Avoidance
Issues.  (a) If any Senior Creditor is required in any Insolvency
Proceeding or otherwise to disgorge, turn over or otherwise pay to the estate of
any Loan Party, because such amount was avoided or ordered to be paid or
disgorged for any reason, including without limitation because it was found to
be a fraudulent or preferential transfer, any amount (a “Recovery”), whether received
as proceeds of security, enforcement of any right of setoff or otherwise, then
the Senior Obligations shall be reinstated to the extent of such Recovery and
deemed to be outstanding as if such payment had not occurred and the Senior
Obligations Repayment Date shall be deemed not to have occurred.  If this
Agreement shall have been terminated prior to such Recovery, this Agreement
shall be reinstated in full force and effect, and such prior termination shall
not diminish, release, discharge, impair or otherwise affect the obligations of
the parties hereto.  The Subordinated Creditors agree that none of them
shall be entitled to benefit from any avoidance action affecting or otherwise
relating to any distribution or allocation made in accordance with this
Agreement, whether by preference or otherwise, it being understood and agreed
that the benefit of such avoidance action otherwise allocable to them shall
instead be allocated and turned over for application in accordance with the
priorities set forth in this Agreement.

     

    7.6           Asset Dispositions in an
Insolvency Proceeding.  Neither the Subordinated Lender nor any
other Subordinated Creditor shall, in an Insolvency Proceeding, oppose any sale
or disposition of any assets of any Loan Party that is supported by the Senior
Creditors; provided, that the
proceeds of such sale are applied as required by Section 6.1.  No
Subordinated Creditor shall exercise its rights under Section 363 of the
Bankruptcy Code (and otherwise) with respect to any sale supported by the Senior
Creditors in a manner which is inconsistent with the terms and conditions of
this Agreement.  Each Subordinated Creditor will be deemed to have
consented to the consummation of any such sale approved by the Senior Creditors
and shall be deemed to have released any Liens on such assets upon the
consummation of any such sale.

    
      
         

      

      
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    7.7           Separate Grants of Security
and Separate Classification.  Each Secured Party acknowledges and
agrees that (i) the grants of Liens pursuant to the Senior Security Documents
and the Subordinated Security Documents constitute two separate and distinct
grants of Liens and (ii) because of, among other things, their differing rights
in the Senior Collateral and the TDI Collateral, respectively, the Senior
Obligations and the Subordinated Obligations are fundamentally different and
must be separately classified in any plan of reorganization proposed or adopted
in an Insolvency Proceeding.  To further effectuate the intent of the
parties as provided in the immediately preceding sentence, if it is held that
the claims of the Senior Creditors and Subordinated Creditors in respect of the
Senior Collateral and the TDI Collateral, respectively, constitute only one
secured claim (rather than separate classes of senior and junior secured
claims), then the Subordinated Creditors hereby acknowledge and agree that all
distributions shall be made as if there were separate classes of senior and
junior secured claims against the Loan Parties in respect of the TDI Collateral
(with the effect being that, to the extent that the aggregate value of the TDI
Collateral is sufficient (for this purpose ignoring all claims held by the
Subordinated Creditors), the Senior Creditors shall be entitled to receive from
the TDI Collateral, in addition to amounts distributed to them in respect of
principal, pre-petition interest and other claims, all amounts owing in respect
of Post-Petition Interest up to the Senior TDI Collateral Limit before any
distribution is made in respect of the claims held by the Subordinated
Creditors, with the Subordinated Creditors hereby acknowledging and agreeing to
turn over to the Senior Creditors amounts otherwise received or receivable by
them to the extent necessary to effectuate the intent of this sentence, even if
such turnover has the effect of reducing the claim or recovery of the
Subordinated Creditors).

     

    7.8           No Waivers of Rights of
Senior Creditors.  Nothing contained herein shall prohibit or in any
way limit the Senior Agent or any other Senior Creditor from objecting in any
Insolvency Proceeding or otherwise to any action taken by any Subordinated
Creditor not permitted hereunder, including the seeking by any Subordinated
Creditor of adequate protection (except as provided in Section
7.4).

     

    7.9           Plans of
Reorganization.  Unless the Senior Agent consents in writing
otherwise, no Subordinated Creditor shall support or vote in favor of any plan
of reorganization (and each shall vote to reject or have their votes designated
as rejections of any plan of reorganization) unless such plan (i) results in a
payment in cash from the proceeds of TDI Collateral of the Senior Obligations in
an amount equal to at least the Senior TDI Collateral Limit or (ii) is accepted
by the class of holders of Senior Obligations voting thereon and is supported by
the Senior Agent.

     

    7.10         Other Matters. 
To the extent that the Subordinated Lender or any Subordinated Creditor has or
acquires rights under Section 363 or Section 364 of the Bankruptcy Code with
respect to any of the Senior Collateral, the Subordinated Lender agrees, on
behalf of itself and the other Subordinated Creditors not to assert any of such
rights without the prior written consent of the Senior Agent; provided that if requested by
the Senior Agent, the Subordinated Lender shall timely exercise such rights in
any manner reasonably requested by the Senior Agent, including any rights to
payments in respect of such rights.

    
      
         

      

      
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    7.11         Effectiveness in Insolvency
Proceedings.  This Agreement, which the parties hereto expressly
acknowledge is a “subordination agreement” under section 510(a) of the
Bankruptcy Code, has been entered into for good and valid consideration, and
shall be effective before, during and after the commencement of any subsequently
commenced Insolvency Proceeding.

     

    SECTION
8.        Additional
Covenants.

     

    8.1           Negative Covenants of
Subordinated Creditors.  Except as otherwise permitted herein, no
Subordinated Creditor will, prior to the Senior Obligations Repayment Date,
without the prior written consent of the Senior Agent:

     

    (a)           Sell,
assign, pledge, encumber or otherwise dispose of any instrument evidencing the
indebtedness owed to such Subordinated Creditor or any collateral securing the
Subordinated Obligations unless such sale, assignment, pledge, encumbrance or
other disposition is made expressly subject to this Agreement and the other
party to such sale, assignment, pledge, encumbrance or other disposition
consents in writing to be bound by the terms hereof;

     

    (b)           Permit
the terms of the Subordinated Documents to be changed in any way that would
increase the principal amount thereof, increase the interest payable thereon,
accelerate or shorten any payment date thereunder, accept any additional
collateral (unless the Senior Creditors shall have received or will receive a
corresponding security interest in such collateral) or otherwise materially and
adversely limit or impair the rights of the Senior Creditors or the obligations
of the Subordinated Creditors hereunder;

     

    (c)           Declare
all or any portion of the Subordinated Obligations due and payable prior to the
date fixed therefor or realize upon, or otherwise exercise any remedies with
respect to, any collateral securing the Subordinated Obligations or take any
other action described in Section 3.2 hereof; or

     

    (d)           Commence,
or join with any creditor other than the Senior Creditors in commencing any
Insolvency Proceeding.

     

    8.2           Effect of Senior Document
Amendments.  (a) Subject to Section 11.3 hereof, in the event that
the Senior Agent enters into any amendment, waiver or consent in respect of any
of the Senior Security Documents for the purpose of adding to, or deleting from,
or waiving or consenting to any departures from any provisions of, any Senior
Security Document or changing in any manner the rights of any parties
thereunder, then such amendment, waiver or consent shall apply automatically to
any comparable provision of the Subordinated Security Documents without the
consent of or action by any Subordinated Creditor (with all such amendments,
waivers and modifications subject to the terms hereof); provided that (other
than with respect to amendments, modifications or waivers that secure additional
extensions of credit and add additional secured creditors), (A) no such
amendment, waiver or consent shall have the effect of removing assets subject to
the Lien of any Subordinated Security Documents, except to the extent that a
release of such Lien is otherwise permitted under this Agreement, (B) any such
amendment, waiver or consent that materially and adversely affects the rights of
the Subordinated Creditors and does not affect the Senior Creditors in a like or
similar manner shall not apply to the Subordinated Security Documents without
the consent of the Subordinated Lender and (C) notice of such amendment, waiver
or consent shall be given to the Subordinated Lender no later than thirty (30)
days after its effectiveness, provided that the failure to give such notice
shall not affect the effectiveness and validity thereof.

    
      
         

      

      
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    (b)           Notwithstanding
any other provision of this Agreement to the contrary (including, without
limitation, this Section 8.2) or the rights of the Senior Agent to take actions
which bind the Subordinated Creditors under the Existing Subordinated Agreement,
none of the Subordinated Lender or any of the Subordinated Creditors shall be
bound by or be required to consent to any additional agreement or any amendment
or modification to an existing agreement which has the effect of (i) requiring
the Subordinated Lender or any of the Subordinated Creditors to fund any
additional amounts (including out-of-pocket expenditures), or (ii) adding any
additional liabilities or obligations of a monetary nature to or on the
Subordinated Lender or any of the Subordinated Creditors or (iii) adding any
other obligation which would require prior regulatory approvals or filings (as
opposed to ex post
facto notifications to or filings with applicable regulators) or unlawful
acts with respect to a Subordinated Creditor or its affiliates without the prior
written consent of each such party who will be responsible for such additional
amount, liability or obligation.

     

    SECTION 9. 
       Reliance; Waivers;
etc.

     

    9.1           Reliance.  All
extensions of credit under the Senior Documents are deemed to have been made or
incurred, in reliance upon this Agreement.  Each Subordinated Creditor
expressly waives all notice of the acceptance of and reliance on this Agreement
by the Senior Creditors.  The Subordinated Documents are deemed to have
been executed and delivered and all extensions of credit thereunder are deemed
to have been made or incurred, in reliance upon this Agreement.  The Senior
Agent, for itself and on behalf of each other Senior Creditor, expressly waives
all notices of the acceptance of and reliance by the Subordinated
Creditors.

     

    9.2           No Warranties or
Liability.  The Subordinated Lender and the Senior Agent acknowledge
and agree that neither has made any representation or warranty with respect to
the execution, validity, legality, completeness, collectibility or
enforceability of any Senior Document or any Subordinated Document or the value
of any collateral, including but not limited to the Senior Collateral and the
TDI Collateral.  Except as otherwise provided in this Agreement, the
Subordinated Lender and the Senior Agent will be entitled to manage and
supervise their respective extensions of credit to any Loan Party in accordance
with law and their usual practices, modified from time to time as they deem
appropriate.

     

    9.3           No Waivers.  No
right or benefit of any party hereunder shall at any time in any way be
prejudiced or impaired by any act or failure to act on the part of such party or
any other party hereto or by any noncompliance by any Loan Party with the terms
and conditions of any of the Senior Documents or the Subordinated
Documents.

    
      
         

      

      
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    9.4           No Duty to Subordinated
Creditors.  (a) Nothing contained herein shall operate to create a
fiduciary duty on the part of any Senior Creditor for the benefit of any
Subordinated Creditor or the Borrower.  The Subordinated Creditors
acknowledge and agree that the Senior Creditors have the right to take action
adverse to the interests of the Subordinated Creditors hereunder and are
authorized to do so and shall not thereby incur any liability to the
Subordinated Creditors to the extent such action is consistent with the terms of
this Agreement.

     

    (b)           Without
limiting the generality of Section 9.4(a), the Subordinated Creditors agree that
none of the Senior Creditors shall have any liability or obligation to the
Subordinated Creditors on account of exercise of the rights and remedies of the
Senior Agent and/or the other Senior Creditors under any Senior Document. 
The Subordinated Creditors waive the right to commence or pursue any legal
action (whether suit, counterclaim, cross claim or other action) on account of
exercise of the rights and remedies of the Senior Creditors under any Senior
Document alleging, or based on a theory of, breach of fiduciary obligations of
the Senior Agent and/or the other Senior Creditors, equitable subordination of
claims of the Senior Creditors against the Borrower or any Loan Party, conflicts
of interest by the Senior Creditors or similar theories premised in any such
case on the exercise of control or influence on management by the Senior Agent
and/or the other Senior Creditors, actual management or control of the Borrower
or any Loan Party by the Senior Agent and/or the other Senior Creditors, or
other pursuit of rights or remedies by the Senior Agent and/or the Senior
Creditors  under any Senior Document.

     

    (c)           The
Subordinated Creditors hereby waive, to the fullest extent permitted by law, any
right to equitable subordination of the Senior Lien or the Senior Creditors’
claims in respect of the Senior Obligations or rights in respect of the Senior
Lien (whether under or pursuant to 11 U.S.C. § 510 or otherwise) and any right
to assert that the Senior Agent or Senior Creditors have in any way failed to
comply with the provisions of the Uniform Commercial Code, including the
provisions of Article 9 thereof, notwithstanding a determination by a court of
competent jurisdiction that the Subordinated Creditors shall be so
entitled.

     

    9.5           No Additional Subordinated
Collateral.  The Subordinated Creditors hereby (a) represent and
warrant that they hold no Senior Collateral that is not TDI Collateral and (b)
other than as permitted hereunder agree not to acquire any Senior Collateral
that is not TDI Collateral until the Senior Obligations Repayment Date has
occurred.

     

    SECTION 10. 
    Obligations
Unconditional.

     

    10.1         Senior Obligations
Unconditional.  All rights and interests of the Senior Creditors
hereunder, and all agreements and obligations of the Subordinated Creditors
(and, to the extent applicable, the Loan Parties) hereunder, shall remain in
full force and effect irrespective of:

     

    (i)           any
lack of validity or enforceability of any Senior Document;

     

    (ii)          any
change in the time, place or manner of payment of, or in any other term of, all
or any portion of the Senior Obligations, or any amendment, waiver or other
modification, whether by course of conduct or otherwise, or any refinancing,
replacement, refunding or restatement of any Senior Document;

    
      
         

      

      
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    (iii)          prior
to the Senior Obligations Repayment Date, any exchange, release, voiding,
avoidance or non-perfection of any security interest in any Senior Collateral or
any other collateral, or any release, amendment, waiver or other modification,
whether by course of conduct or otherwise, or any refinancing, replacement,
refunding or restatement of all or any potion of the Senior Obligations or any
guarantee or guaranty thereof;

     

    (iv)         the
commencement of any Insolvency Proceeding; or

     

    (v)          any
other circumstances that otherwise might constitute a defense available to, or a
discharge of, any Loan Party in respect of the Senior Obligations, or of any of
the Subordinated Lender or any Subordinated Creditor, or any Loan Party, to the
extent applicable, in respect of this Agreement.

     

    10.2         Subordinated Obligations
Unconditional.  All rights and interests of the Subordinated
Creditors hereunder, and all agreements and obligations of the Senior Creditors
(and, to the extent applicable, the Loan Parties) hereunder, shall remain in
full force and effect irrespective of:

     

    (i)           any
lack of validity or enforceability of any Subordinated Document;

     

    (ii)          any
change in the time, place or manner of payment of, or in any other term of, all
or any portion of the Subordinated Obligations, or any amendment, waiver or
other modification, whether by course of conduct or otherwise, or any
refinancing, replacement, refunding or restatement of any Subordinated
Document;

     

    (iii)         any
exchange, release, voiding, avoidance or non-perfection of any security interest
in any TDI Collateral or any other collateral, or any release, amendment, waiver
or other modification, whether by course of conduct or otherwise, or any
refinancing, replacement, refunding or restatement of all or any portion of the
Subordinated Obligations or any guarantee or guaranty thereof;

     

    (iv)         the
commencement of any Insolvency Proceeding; or

     

    (v)          any
other circumstances that otherwise might constitute a defense available to, or a
discharge of any Loan Party in respect of the Subordinated Obligations, or any
Senior Creditor in respect of this Agreement.

     

    SECTION 11. 
    Miscellaneous.

     

    11.1         Conflicts.  In
the event of any conflict between the provisions of this Agreement and the
provisions of any Senior Document or any Subordinated Document, the provisions
of this Agreement shall govern.

     

    11.2         Continuing Nature of
Provisions.  This Agreement shall continue to be effective, and
shall not be revocable by any party hereto, until the Senior Obligations
Repayment Date shall have occurred.  This is a continuing agreement and the
Senior Creditors and the Subordinated Creditors may continue, at any time and
without notice to the other parties hereto, to extend credit and other financial
accommodations, lend monies and provide indebtedness to, or for the benefit of,
Borrower or any other Loan Party on the faith hereof.

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

     

    11.3         Amendments;
Waivers.  (a) No amendment or modification of any of the provisions
of this Agreement shall be effective unless the same shall be in writing and
signed by the Senior Agent and the Subordinated Lender and the Borrower (to the
extent such amendment or modification would adversely affect the Borrower’s
right or obligations thereunder).  No waiver of any provision hereof shall
be effective unless made in writing by the waiving party.

     

    (b)           The
Senior Creditors may at any time and from time to time without the consent of or
notice to the Subordinated Creditors, without incurring liability to the
Subordinated Creditors and without impairing or releasing the obligations of the
Subordinated Creditors under this Agreement, change the manner or place of
payment or extend the time of payment of or renew or alter any of the terms of
the Senior Obligations, or amend, modify, refinance or restructure in any manner
the Senior Documents.

     

    (c)           Without
limiting the Senior Creditors’ right hereunder to amend the Senior Documents and
increase the amount of the Senior Obligations without the consent of the
Subordinated Creditors, it is understood that the Senior Agent, without the
consent of any Subordinated Creditor, may in the its discretion determine that a
supplemental agreement (which may take the form of an amendment and restatement
of this Agreement) is necessary or appropriate to facilitate having additional
indebtedness or other obligations (“Additional Debt”) of any of
the Loan Parties become Senior Obligations under this Agreement; provided, that
such Additional Debt is permitted to be incurred by the Senior Credit Agreement
then extant and is permitted by said Senior Credit Agreement to be subject to
the provisions of this Agreement as Senior Obligations.

     

    11.4         Further
Assurances.  Each Subordinated Creditor and the Borrower will (in
each case, solely at the expense of the Borrower) and at any time and from time
to time, promptly execute and deliver all further instruments and documents, and
take all further action that the Senior Agent may reasonably request, in order
to perfect or otherwise protect any right or interest granted or purported to be
granted hereby or to enable the Senior Agent to exercise and enforce its rights
and remedies hereunder.  Each Subordinated Creditor further authorizes the
Senior Agent to file UCC financing statements and any amendments thereto or
continuations thereof with regard to the Subordinated Obligations without any
Subordinated Creditor’s signature.

     

    11.5         Expenses.  The
Borrower agrees to pay to the Senior Agent and the Subordinated Lender, upon
demand, the amount of any and all reasonable expenses, including the reasonable
fees and expenses of counsel for the Senior Agent or the Subordinated Lender, as
the case may be, which the Senior Agent or the Subordinated Lender, as the case
may be, may incur in connection with the exercise or enforcement of any of the
rights or interests hereunder of the Senior Agent or the Senior Creditors on the
one hand and the Subordinated Lender or the Subordinated Creditors on the
other.

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    11.6         Information Concerning
Financial Condition of the Borrower and the other Loan Parties. 
Each of the Subordinated Lender and the Senior Agent hereby assume
responsibility for keeping itself informed of the financial condition of the
Borrower and each of the other Loan Parties and all other circumstances bearing
upon the risk of nonpayment of the Senior Obligations or the Subordinated
Obligations.  The Subordinated Lender and the Senior Agent hereby agree
that no party shall have any duty to advise any other party of information known
to it regarding such condition or any such circumstances.  In the event the
Subordinated Lender or the Senior Agent, in its sole discretion, undertakes at
any time or from time to time to provide any information to any other party to
this Agreement, it shall be under no obligation (i) to provide any such
information to such other party or any other party on any subsequent occasion,
(ii) to undertake any investigation not a part of its regular business routine,
or (iii) to disclose any other information.

     

    11.7         Governing Law. 
This Agreement shall be construed in accordance with and governed by the law of
the State of New York, except as otherwise required by mandatory provisions of
law and except to the extent that remedies provided by the laws of any
jurisdiction other than the State of New York are governed by the laws of such
jurisdiction.

     

    11.8         Consent to Jurisdiction;
Service of Process.  (a) The Subordinated Lender, each Subordinated
Creditor and the Borrower (i) each hereby irrevocably submits to the
jurisdiction of the state courts of the State of New York and the jurisdiction
of the United States District Court for the Southern District of New York, for
the purpose of any suit, action or other proceeding arising out of or based upon
this Agreement or the subject matter hereof brought by the Senior Agent or its
successors or assigns and (ii) hereby waives and agrees not to assert, by way of
motion, as a defense, or otherwise, in any such suit, action or proceeding, any
claim that it is not subject personally to the jurisdiction of the above-named
courts, that its property is exempt or immune from attachment or execution, that
the suit, action or proceeding is brought in an inconvenient forum, that the
venue of the suit, action or proceeding is improper or that this Agreement or
the subject matter hereof may not be enforced in or by such court, and (iii)
each hereby waives in any such action, suit or proceeding any offsets or
counterclaims which are unrelated to the transactions contemplated
herein.

     

    (b)           The
Subordinated Lender, each Subordinated Creditor and the Borrower each hereby
consents to service of process by registered mail at the address to which
notices are to be given.  The Subordinated Lender, each Subordinated
Creditor and the Borrower each agrees that its submission to jurisdiction and
its consent to service of process by mail are made for the express benefit of
the Senior Agent and the Senior Creditors.  Final judgment against any of
the Subordinated Lender, a Subordinated Creditor or a Loan Party in any such
action, suit or proceeding shall be conclusive, and may be enforced in other
jurisdictions (i) by suit, action or proceeding on the judgment, a certified or
true copy of which shall be conclusive evidence of the fact and of the amount of
any indebtedness or liability of the Subordinated Lender, a Subordinated
Creditor or a Loan Party therein described or (ii) in any other manner provided
by or pursuant to the laws of such other jurisdiction; provided, however, that the
Senior Agent may at its option bring suit, or institute other judicial
proceedings against any of the Subordinated Lender, a Subordinated Creditor or a
Loan Party or any of their respective assets in any state or Federal court of
the United States or of any country or place where such party or their
respective assets may be found.

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

    (c)           The
Subordinated Lender, each Subordinated Creditor and the Borrower further each
covenants and agrees that so long as this Agreement shall be in effect, each
shall maintain a duly appointed agent for the receipt and acceptance on its
behalf of service of summons and other legal processes, and upon failure to do
so the clerk of each court to whose jurisdiction it has submitted shall be
deemed to be its respective designated agent upon whom such process may be
served on its behalf, and notification by the attorney for plaintiff,
complainant or petitioner therein by mail or telegraph to such Subordinated
Creditor or the Borrower of the filing of each suit, action or proceeding shall
be deemed sufficient notice thereof.

     

    11.9         WAIVER OF JURY
TRIAL.  BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX
FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN
EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL
LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR
DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS.  THEREFORE,
TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF
ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER SOUNDING IN
CONTRACT, TORT OR OTHERWISE, AMONG ANY OF THE PARTIES HERETO ARISING OUT OF,
CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG
THEM IN CONNECTION WITH, THIS AGREEMENT.

     

    11.10       Notices.  Unless
otherwise specifically provided herein, any notice or other communication herein
required or permitted to be given shall be in writing and may be personally
served, telecopied, or sent by overnight express courier service or United
States mail and shall be deemed to have been given when delivered in person or
by courier service, upon receipt of a telecopy or five (5) days after deposit in
the United States mail (certified, with postage prepaid and properly
addressed).  For the purposes hereof, the addresses of the parties hereto
(until notice of a change thereof is delivered as provided in this Section)
shall be as set forth below each party’s name on the signature pages hereof, or,
as to each party, at such other address as may be designated by such party in a
written notice to all of the other parties.

     

    11.11       Successors and
Assigns.  This Agreement shall be binding upon and inure to the
benefit of each of the parties hereto and each of the Senior Creditors and
Subordinated Creditors and their respective successors and assigns, and nothing
herein is intended, or shall be construed to give, any other Person any right,
remedy or claim under, to or in respect of this Agreement or any Senior
Collateral or TDI Collateral.

     

    11.12       Headings. 
Section headings used herein are for convenience of reference only, are not part
of this Agreement and shall not affect the construction of, to be taken into
consideration in interpreting, this Agreement.

     

    11.13       Severability. 
Any provision of this Agreement held to be invalid, illegal or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such invalidity, illegality or unenforceability without affecting the validity,
legality and enforceability of the remaining provisions hereof; and the
invalidity of a particular provision in a particular jurisdiction shall not
invalidate such provision in any other jurisdiction.

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

     

    11.14       Counterparts; Integration;
Effectiveness.  This Agreement may be executed in counterparts (and
by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a
single contract.  Delivery of an executed counterpart of a signature page
of this Agreement by telecopy shall be effective as delivery of a manually
executed counterpart of this Agreement.  This Agreement shall become
effective when it shall have been executed by each party hereto.

     

    11.15       Acknowledgments. 
Subordinated Lender agrees that any payments of Senior Obligations made by TDI
shall not be considered a distribution to Borrower.  In addition, Senior
Agent has charged a fee for consenting to the acquisition of TDI which Borrower
has paid.  TDI shall reimburse Borrower for such fee, and such
reimbursement shall not be deemed a distribution to Borrower.  Further, TDI
shall pay all attorneys’ fees and costs incurred by Senior Agent which are
payable by Borrower under the Existing Senior Credit Agreement in connection
with the consent of the Senior Creditors or the Senior Agent to the acquisition
of TDI, including, without limitation, all attorneys’ fees and costs incurred in
connection with Amendment No. 4 to the Existing Senior Credit Agreement which
are payable by Borrower (if any of such attorneys’ fees and costs have been paid
by Borrower, TDI shall reimburse Borrower for such attorneys’ fees and costs and
such reimbursement shall not be deemed a distribution to Borrower).

     

    11.16       Acknowledgment of
Consent.  The Senior Agent hereby acknowledges and confirms that the
Senior Creditors have consented to the acquisition by the Borrower of all of the
capital stock of TDI subject to the execution by the Subordinated Lender of this
Agreement.

     

     [Signature
pages follow]

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the parties hereto
have executed this Agreement as of the date first written above.

     

    
      
        	 
      	
                JPMORGAN
      CHASE BANK, N.A., as Senior Agent for and on behalf of the Senior
      Creditors

              
	 
      	 
      
	 
      	
                By:

              	
                /s/ Kin W. Cheng

              
	 
      	
                Name:  Kin
      W. Cheng

              
	 
      	
                Title:   
      Vice President

              
	 
      	 
      
	 
      	
                Address
      for Notices:

              
	 
      	
                JPMorgan
      Chase Bank, N.A.

              
	 
      	
                131
      South Dearborn Street, 6th Floor

              
	 
      	
                Chicago,
      IL 60603-5506

              
	 
      	 
      
	 
      	
                Attention:       
       Stephen C. Price

              
	 
      	
                Telecopy
      No.:  (312)
325-3231

              

      

    

     

    [Signature
pages to Subordination and Intercreditor Agreement]

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      
        	 
      	
                HOLLYWOOD
      MEDIA CORP., as Subordinated Lender for and on behalf of the Subordinated
      Creditors

              
	 
      	 
      
	 
      	
                By:

              	
                /s/ Mitchell Rubenstein

              
	 	      
                Name:

              	Mitchell Rubenstein
	 	      
                Title:

              	Chairman
      and CEO
	 
      	 
      
	 
      	
                Address
      for Notices:

              
	 
      	
                Hollywood
      Media Corp.

              
	 
      	
                560
      Broadway, Suite 404

              
	 
      	
                New
      York, New York 10012

              
	 
      	
                Facsimile:
      (561) 998-2974

              
	 
      	
                Attention:  Mitchell
      Rubenstein

              
	 
      	 
      
	 
      	
                With
      a copy (which shall not constitute notice) to:

              
	 
      	 
      
	 
      	
                Weil,
      Gotshal & Manges LLP

              
	 
      	
                767
      Fifth Avenue

              
	 
      	
                New
      York, New York 10153

              
	 
      	
                Telecopy
      No.: (212) 833-8007

              
	 
      	
                Attention:  S.
      Scott Parel

              
	 
      	
                                   
      Marita A. Makinen

              

      

    

     

    [Signature
pages to Subordination and Intercreditor Agreement]

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      
        
          	 
      	
                  KEY
      BRAND ENTERTAINMENT INC.,

                
	 
      	
                  as
      Borrower

                
	 
      	 
      
	 
      	
                  By: 
      

                	
                  /s/ John Gore

                
	 
      	 
      
	 
      	
                  Address
      for Notices:

                
	 
      	
                  Key
      Brand Entertainment Inc.

                
	 
      	
                  1619
      Broadway, 9th
      Floor

                
	 
      	
                  New
      York, New York 1019

                
	 
      	 
      
	 
      	
                  Attention:  John
      Gore and Liam Lynch

                
	 
      	
                  Telecopy
      No.:  (917) 421-5430

                
	 
      	 
      
	 
      	
                  With
      a copy to:

                
	 
      	 
      
	 
      	
                  Key
      Brand Entertainment Inc.

                
	 
      	
                  10880
      Wilshire Boulevard, Suite 870

                
	 
      	
                  Los
      Angeles, California 90024

                
	 
      	
                  Attention:
      Tom McGrath and David Bauer Stern, Esq.

                
	 
      	
                  Telecopy
      No.:  (310)
446-4930

                

        

      

    

     

    [Signature
pages to Subordination and Intercreditor Agreement]

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