Document:

Exhibit 4.65

Exhibit 4.65

EXECUTION
COPY

AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

Amendment No. 2 and Waiver (this “Amendment”), dated as of July 12, 2010, to the
Credit Agreement, dated as of October 21, 2008 (as modified to the date hereof, the “Credit
Agreement”), among XINHUA SPORTS & ENTERTAINMENT LIMITED (formerly known as XINHUA FINANCE
MEDIA LIMITED), a Cayman Islands limited company (the “Borrower”), the Subsidiaries of the
Borrower signatory thereto (collectively, the “Guarantors”), the financial institutions and
other investors from time to time party thereto as Lenders and PATRIARCH PARTNERS AGENCY SERVICES,
LLC, a Delaware limited liability company, as administrative agent for such Lenders (in such
capacity, the “Administrative Agent”). Capitalized terms used herein but not defined
herein are used as defined in the Credit Agreement.

W i t n e s s e t h:

WHEREAS, the Borrower, the Guarantors, the Lenders and the Administrative Agent are party to
the Credit Agreement;

WHEREAS, the Lenders party to this Amendment, the Borrower, the Guarantors and the
Administrative Agent have agreed, subject to certain limitations and conditions set forth below, to
make certain amendments to the Credit Agreement, as more specifically set forth below;

WHEREAS, the Borrower has notified the Administrative Agent that the Events of Default
specified on Schedule A (Events of Default) hereto have occurred and are continuing
(such Events of Default, together with any Event of Default that may exist by reason of any failure
to deliver notice thereof pursuant to the Credit Agreement and by past misrepresentations under the
Credit Agreement that no Default or Events of Default existed and were continuing, each a
“Specified Event of Default” and, collectively, the “Specified Events of Default”);

WHEREAS, the Borrower and the Guarantors have requested that the Administrative Agent and the
Required Lenders (a) waive the Specified Events of Default and (b) further amend the Credit
Agreement as set forth herein; and

WHEREAS, the Lenders party hereto (constituting the Required Lenders) and the Administrative
Agent agree, subject to the limitations and conditions set forth herein, to (a) waive the
Specified Events of Default and (b) further amend the Credit Agreement as set forth herein;

NOW, THEREFORE, the parties hereto agree as follows:

Section 1. Waiver

(a) Effective as of the date first written above and subject to the satisfaction (or due
waiver) of the conditions set forth in Section 3 (Conditions Precedent to the Effectiveness of this
Amendment) hereof, the Lenders party to this Amendment, constituting the Required Lenders, and the
Administrative Agent waive the following:

(i) the Specified Events of Default; provided, however, that, (A) in respect
of Specified Events of Default relating to representations and warranties, such Specified Events of
Default shall be waived only to the extent they relate to representations and warranties made prior
to the

 

 

 

AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

date hereof and (B) the Specified Event of Default described in Item 2 of Schedule A
(Events of Default) shall be waived only to the extent that the Borrower shall file the
Shelf Registration Statement with the SEC as soon as practicable after the date hereof but in any
event within 45 days after the date hereof and shall use its reasonable best efforts to cause such
Shelf Registration Statement to be declared effective within 120 days after the date hereof; and
provided, further, that the waiver set forth in this clause (i) shall not
excuse any failure to comply after the earlier of the date hereof and the Amendment Effective Date
with the Credit Agreement as amended hereby; and

(ii) compliance with Section 2.12(a) with respect to the issuance by the Borrower of
the Series C Preferred Shares to the Lenders.

Section 2. Amendments to the Credit Agreement. The Credit Agreement is, effective as
of the date first written above and subject to the satisfaction (or due waiver) of the conditions
set forth in Section 3 (Conditions Precedent to the Effectiveness of this Amendment)
hereof, hereby amended as follows (with bold, underline, indenting and other formatting modified to
conform to the formatting of the Credit Agreement):

(a) Amendments to Article I (Defined Terms)

(i) The following definitions are hereby inserted in Section 1.1 (Defined
Terms) of the Credit Agreement in the appropriate place to preserve the alphabetical order of
the definitions in such section (and, if applicable, the following definitions shall replace in
their entirety existing definitions for the corresponding terms in such section):

“Additional Term Loan Commitment” means, (i) with respect to each Lender that
is a lender on the Second Amendment Date, the amount set forth opposite such Lender’s name
on Schedule I as such Lender’s “Additional Term Loan Commitment” and (ii) in the case of any
lender that becomes a Lender after the Second Amendment Date, the amount specified as such
Lender’s “Additional Term Loan Commitment” in the Assignment and Acceptance pursuant to
which such Lender assumed such Additional Term Loan Commitment, in each case as the same may
be reduced or increased from time to time pursuant to the terms hereof.

“Additional Term Loan Funding Date” means June 17, 2010.

“Additional Term Loans” means the Term Loans deemed made by a Lender to the
Borrower pursuant to Section 2.1(d).

“Convertible Term Loans” means the Term Loans made during the Commitment
Period.

“EO Sale” has the meaning set forth in the Consent to Credit Agreement dated as
of May 12, 2010, by and among the Borrowers, the Guarantors, the Lenders and the Agent.

“Extraordinary Receipts” means, with respect to any person, (a) any cash
received by, paid to or for the account of such Person not in the ordinary course of
business, including tax refunds, pension plan reversions, proceeds of insurance (including
any key man life insurance but excluding proceeds of key man life insurance to the extent
such proceeds constitute compensation from lost earnings), (b) indemnity payments received
by such Person and (c) any working capital, earnings, balance sheet, other purchase price or
similar adjustment under any acquisition agreement received by such Person.

 

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AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

“Second Amendment Date” means July 12, 2010.

“Series C Preferred Shares” means the Series C Convertible Preferred Shares of
the Borrower, each with a par value of $0.001 per share and a stated value of $100.00 per
share.

(ii) Each of the following definitions in Section 1.1 (Defined Terms) of the
Credit Agreement are hereby amended and restated in their entirety to read as follows:

“Applicable Margin” means 6% for Convertible Term Loans and 8% for Additional
Term Loans.

“Commitments” means the Term Loan Commitments and the Additional Term Loan
Commitments.

“Default Rate” means LIBOR plus 8.0% per annum for Convertible Term Loans and
LIBOR plus 10% per annum for Additional Term Loans.

“Loans” means the Term Loans, including the Additional Term Loans and the
Convertible Term Loans.

“Net Cash Proceeds” means with respect to (A) the issuance or incurrence of any
Indebtedness by any Person or any of its Subsidiaries, (B) the sale or issuance by any
Person or any of its Subsidiaries of any shares of its Capital Stock, (C) any Asset Sale,
(D) any casualty insurance policy in respect of a covered loss thereunder or (E) the taking
of any assets of any Person or any of its Subsidiaries by any other Person pursuant to the
power of eminent domain, condemnation, or otherwise or pursuant to a sale of any such assets
to a purchaser with such power under threat of such taking, the aggregate amount of cash
received (directly or indirectly) from time to time (whether as initial consideration or
through the payment or disposition of deferred consideration) by or on behalf of such Person
or such Subsidiary in connection therewith, net of underwriting discounts and after
deducting therefrom only (i) reasonable expenses related thereto incurred by such Person or
such Subsidiary in connection therewith, and (ii) transfer taxes paid by such Person or such
Subsidiary in connection therewith; in each case of clauses (i) and (ii) to the extent, but
only to the extent, that the amounts so deducted are (x) actually paid to a Person that,
except in the case of reasonable out-of-pocket expenses, is not an Affiliate of such Person
or any of its Subsidiaries and (y) properly attributable to such transaction or to the asset
that is the subject thereof.

(iii) The definition of “Affiliate” contained in Section 1.1 (Defined
Terms) of the Credit Agreement is hereby amended by deleting the clause “the Agent, any Lender
or any Affiliate of any Lender” from the last sentence thereof and replacing it with “the Agent,
any Lender or any Related Fund or Affiliate of the Agent or any Lender”.

(iv) The definition of “Internal Control Agreement” contained in Section 1.1
(Defined Terms) of the Credit Agreement is hereby amended by (A) deleting the clause “with
respect to any Media Asset” from clause (i) thereof, and (B) deleting the term “Media Asset” from
clause (ii) thereof and replacing it with “asset”.

(v) The definition of “Restricted Junior Payment” in Section 1.1 (Defined
Terms) of the Credit Agreement is hereby amended by deleting the two proviso clauses at the end
thereof and replacing them with the following language:

 

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AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

; provided, however, Restricted Junior Payments shall not include any
payments made to the Agent, any Lender or any Affiliate or Related Fund of the Agent or any
Lender under the Series C Preferred Shares and shall not include any cash payment in lieu of
any shares of any class of Capital Stock of the Borrower payable in respect of Earn-Out
Consideration; provided, further, with respect to subclauses (i), (ii) and
(iii) above, Restricted Junior Payments shall not include any dividends or other
distributions by a Subsidiary which are made pro rata to all of its shareholders or members.

(vi) The definition of “Significant Person” in Section 1.1 (Defined
Terms) of the Credit Agreement is hereby amended by deleting the last sentence thereof and
replacing it with the following:

Notwithstanding the foregoing, “Significant Person” does not include the
Parent, the Agent, any Lender or any Affiliate or Related Fund of the Agent or any Lender.

(b) Amendments to Article II (Loans)

(i) Clause (b) of Section 2.1 (Term Loans) of the Credit Agreement is
hereby amended and restated in its entirety to read as follows:

(b) Any amount borrowed under this Section 2.1 and subsequently repaid or prepaid may
not be reborrowed. Subject to Sections 2.11 and 2.12, (i) all amounts owed under this
Section 2.1 with respect to Convertible Term Loans shall be paid in full or a Conversion
Notice shall have been delivered pursuant to Article X no later than the Maturity
Date, and (ii) all amounts owed under this Section 2.1 with respect to Additional Term Loans
shall be paid in full no later than the Maturity Date.

(ii) Section 2.1 (Term Loans) of the Credit Agreement is hereby amended by
inserting a new clause (d) at the end thereof to read in its entirety as follows:

(d) On the Second Amendment Date, subject to the terms and conditions hereof and
relying on the representations and warranties herein set forth, subject to Section 2.4, each
Lender shall make, severally, and not jointly, an Additional Term Loan to the Borrower in
one or more advances in an amount up to but not exceeding such Lender’s Additional Term Loan
Commitment. Such Additional Term Loans shall be deemed to have been made on the Additional
Term Loan Funding Date for all purposes, including, without limitation, the calculation of
interest under Section 2.7.

(iii) Section 2.3 (Borrowing Mechanics) of the Credit Agreement is hereby
amended by inserting a new clause (d) at the end thereof to read in its entirety as
follows:

(d) The provisions of this Section 2.3 shall not apply to Additional Term
Loans.

(iv) Section 2.5 (Use of Proceeds) of the Credit Agreement is hereby amended
by deleting clause (ii) thereof in its entirety and replacing it with the following new
clause (ii) to read in its entirety as follows:

(ii) for general corporate purposes

 

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AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

(v) Clause (b) of Section 2.7 (Interest on Loans) is hereby amended by
inserting the text “(it being understood that the Additional Term Loan Funding Date is the date of
the making of an Additional Term Loan)” immediately after the text “the making of such Loan” in the
second sentence thereof.

(vi)  Section 2.10 (Repayment) of the Credit Agreement is hereby amended and
restated in its entirety to read as follows:

Section 2.10 Repayment. On the Maturity Date, (a) all Obligations
other than the Convertible Term Loans shall become due and payable and (b) the Borrower
shall pay to each Lender an amount in cash equal to the Loan Payment Amount (determined as
of the Maturity Date) for such Lender with respect to the Convertible Term Loans;
provided, that such Lender may reject any such payment of the Loan Payment Amount
with respect to Convertible Term Loans only and instead elect to convert such Convertible
Term Loans into Borrower Common Shares pursuant to Article X hereof. The Borrower shall
provide five (5) Business Days prior written notice (or such lesser time as may be agreed by
the Agent) to the Agent of its intent to pay such Loan Payment Amount on the Maturity Date,
and with respect to the Convertible Term Loans only, the Agent shall have three (3) Business
Days from the date it receives such notice from the Borrower to elect to convert such Loan
Payment Amount into Borrower Common Shares pursuant to Article X hereof. For purposes of
clarification, if any Lender elects to convert the Loan Payment Amount with respect to
Convertible Term Loans to Borrower Common Shares pursuant to Article X hereof, the Borrower
shall not have the option of paying the Loan Payment Amount with respect to Convertible Term
Loans in cash to such Lender. If the Borrower fails to pay such Loan Payment Amount in cash
and/or deliver the Borrower Common Shares, as the case may be, to each Lender on the
Maturity Date, an Event of Default shall occur. In addition to all other remedies, at the
option of the Agent, interest shall accrue on the Loan Payment Amount and the Loans,
respectively, at the Default Rate from and after the date any Event of Default shall occur,
and all amounts due shall thereafter be payable on demand.

(vii) Section 2.11 (Optional Repayment) of the Credit Agreement is hereby
amended and restated in its entirety to read as follows:

Section 2.11 Optional Prepayments. The Borrower is not permitted to
voluntarily prepay the Loans (i) at any time during the first year following the Closing
Date or (ii) after the first year following the Closing Date, if the Current Market Price,
determined six (6) days in advance of the proposed prepayment, of the Borrower Common Shares
is less than 110% of the then applicable Conversion Price. Subject to the foregoing
sentence, the Borrower may voluntarily prepay the Loans, in whole but not in part, at any
time, with five (5) Business Days advance written notice (or such lesser time as may be
agreed by the Agent) of the date of prepayment (the “Optional Prepayment Date”)
being provided to the Agent, by paying to each Lender an amount in cash equal to the Loan
Payment Amount (determined as of the Optional Prepayment Date) for such Lender;
provided, that such Lender may reject any such payment of the Loan Payment Amount
with respect to its Convertible Term Loans and instead elect to convert such Convertible
Term Loans into Borrower Common Shares pursuant to Article X hereof at the then applicable
Conversion Price. Borrower shall provide five (5) Business Days prior written notice to the
Agent of its intent pursuant to this Section 2.11 to pay the Loan Payment Amount and with
respect to the prepayment of Convertible Term Loans only, the Agent shall have three (3)
Business Days from and after the date it receives such notice from the Borrower to elect to
convert the Loan Payment Amount with respect to Convertible Term Loans into Borrower Common
Shares pursuant to Article X hereof. For purposes of clarification, if any Lender elects to
convert the Loan Payment Amount with respect to its Convertible Term Loans to

 

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AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

Borrower Common Shares pursuant to Article X hereof, the Borrower shall not have the
option of paying the Loan Payment Amount for such Convertible Term Loans in cash to such
Lender. If the Borrower fails to pay the Loan Payment Amount and/or deliver the Borrower
Common Shares, as the case may be, to each Lender on the Optional Prepayment Date, then (in
addition to all other remedies), at the option of the Agent, interest shall accrue on the
Loan Payment Amount and the Loans, respectively, at the Default Rate from the Optional
Prepayment Date, and all amounts due shall thereafter be payable on demand. Any prepayments
of Additional Term Loans pursuant to this Section 2.11 shall only be made in cash.

(viii) Section 2.12 (Mandatory Prepayments) of the Credit Agreement is hereby
amended and restated in its entire to read as follows:

Section 2.12 Mandatory Prepayments.

(a) Debt or Equity Offerings. No later than the first Business Day following
the issuance or incurrence by the Borrower or any of its Subsidiaries of any Indebtedness
(other than Permitted Indebtedness), or the sale or issuance by the Borrower or any of its
Subsidiaries of any shares of its Capital Stock, the Borrower shall make an offer to prepay
the outstanding principal amount of the Loans in an amount in cash equal to 100% of the Net
Cash Proceeds received by such Person in connection therewith. Each Lender has the option
to (i) accept such prepayment of its Convertible Term Loans in cash, (ii) reject such
prepayment of its Convertible Term Loans or (iii) elect to convert its Convertible Term
Loans into Borrower Common Shares pursuant to Article X hereof. The Borrower shall provide
five (5) Business Days prior written notice (or such lesser time as may be agreed by the
Agent) to the Agent of its offer to make a prepayment pursuant to this Section 2.12(a), and
with respect to the prepayment of its Convertible Term Loans only, the Agent shall have
three (3) Business Days from and after the date it receives such notice from the Borrower to
accept such prepayment, reject such prepayment or elect to convert into Borrower Common
Shares pursuant to Article X hereof. For purposes of clarification, if any Lender elects to
reject the prepayment of its Convertible Term Loans or convert its Convertible Term Loans to
Borrower Common Shares pursuant to Article X hereof, the Borrower shall not make the
prepayment in cash required hereunder for the Convertible Term Loans to such Lender. If the
Borrower fails to make the required prepayment in cash and/or deliver the Borrower Common
Shares, as the case may be, to any Lender when due, an Event of Default shall occur. In
addition to all other remedies, at the option of the Agent, interest shall accrue on the
prepayment amount for such Lender and the Loans for such Lender, respectively, at the
Default Rate from the date any Event of Default shall occur, and all amounts due shall
thereafter be payable on demand. If any Lender rejects the prepayment of its Convertible
Term Loans and/or does not elect to convert its Convertible Term Loans into Borrower Common
Shares, then the Borrower shall use such proceeds only for investment in Media Assets.
Notwithstanding anything to the contrary set forth in this Section 2.12, during the first
year following the Closing Date, no Lender will have the option to elect to convert its
Convertible Term Loans into Borrower Common Shares pursuant to Article X hereof upon the
foregoing described prepayment events. The provisions of this Section 2.12(a) shall not be
deemed to be implied consent to any such issuance, incurrence or sale otherwise prohibited
by the terms and conditions of this Agreement. Any prepayment of Additional Term Loans made
pursuant to this Section 2.12(a) shall only be made in cash.

(b) Change of Control. No later than the first Business Day following a Change
of Control, the Borrower shall make an offer to prepay in full the outstanding principal
amount of the Loans, together with interest thereon or all other amounts owing hereunder.
Each Lender has the option to (i) accept such prepayment of its Convertible Term Loans in
cash,

 

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AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

(ii) reject such prepayment of its Convertible Term Loans or (iii) elect to convert its
Convertible Term Loans into Borrower Common Shares pursuant to Article X hereof. The
Borrower shall provide five (5) Business Days prior written notice to the Agent (or such
lesser time as may be agreed by the Agent) of its offer to make a prepayment pursuant to
this Section 2.12, and with respect to Convertible Term Loans, the Agent shall have three
(3) Business Days from and after the date it receives such notice from the Borrower to
accept such prepayment, reject such prepayment or elect to convert into Borrower Common
Shares pursuant to Article X hereof. For purposes of clarification, if any Lender elects to
reject the prepayment of its Convertible Term Loans or convert its Convertible Term Loans to
Borrower Common Shares pursuant to Article X hereof, the Borrower shall not make the
prepayment in cash required hereunder with respect to such Convertible Term Loans to such
Lender. If the Borrower fails to make the required prepayment in cash or deliver the
Borrower Common Shares, as the case may be, to any Lender when due, an Event of Default
shall occur. In addition to all other remedies, interest shall accrue on the prepayment
amount for such Lender and the Loans for such Lender, respectively, at the Default Rate from
the date any Event of Default shall occur, and all amounts due shall thereafter be payable
on demand. Notwithstanding anything to the contrary set forth in this Section 2.12, during
the first year following the Closing Date, no Lender will have the option to elect to
convert its Convertible Term Loans into Borrower Common Shares pursuant to Article X hereof
upon a Change of Control. Any prepayment of Additional Term Loans pursuant to this Section
2.12(b) shall only be made in cash.

(c) Asset Sales; Insurance/Condemnation; Extraordinary Receipts. No later than
the first Business Day following any Asset Sale by the Borrower or any of its Subsidiaries
any covered loss under any casualty insurance policy held by the Borrower or any of its
Subsidiaries, the taking of any assets of the Borrower or any of its Subsidiaries pursuant
to the power of eminent domain, condemnation or otherwise, the sale of any assets of the
Borrower or any of its Subsidiaries under the threat of such taking or the receipt by the
Borrower or any of its Subsidiaries of any Extraordinary Receipts, the Borrower shall make
an offer to prepay the outstanding principal amount of the Loans in an amount in cash equal
to 100% of the Net Cash Proceeds or the Extraordinary Receipts, as applicable, received by
such Person in connection therewith. Each Lender has the option to (i) accept such
prepayment of its Convertible Term Loans in cash, (ii) reject such prepayment of its
Convertible Term Loans or (iii) elect to convert its Convertible Term Loans into Borrower
Common Shares pursuant to Article X hereof. The Borrower shall provide five (5) Business
Days prior written notice to the Agent (or such lesser time as may be agreed by the Agent)
of its offer to make a prepayment pursuant to this Section 2.12, and with respect to
Convertible Term Loans, the Agent shall have three (3) Business Days from the date it
receives such notice from the Borrower to accept such prepayment, reject such prepayment or
elect to convert into Borrower Common Shares pursuant to Article X hereof. For purposes of
clarification, if any Lender elects to reject the prepayment of its Convertible Term Loans
or convert its Convertible Term Loans to Borrower Common Shares pursuant to Article X
hereof, the Borrower shall not make the prepayment in cash required hereunder for such
Convertible Term Loans to such Lender. If the Borrower fails to make the required
prepayment in cash and/or deliver the Borrower Common Shares, as the case may be, to any
Lender when due, an Event of Default shall occur. In addition to all other remedies, at the
option of the Agent, interest shall accrue on the prepayment amount for such Lender and the
Loans for such Lender, respectively, at the Default Rate from the date any Event of Default
shall occur, and all amounts due shall thereafter be payable on demand. If any Lender
rejects the prepayment of its Convertible Term Loans and/or does not elect to convert its
Convertible Term Loans into Borrower Common Shares, then the Borrower shall use such
proceeds only for investment in Media Assets. Notwithstanding anything to the contrary set
forth in this Section 2.12, during the

 

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AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

first year following the Closing Date, no Lender will have the option to elect to
convert its Convertible Term Loans into Borrower Common Shares pursuant to Article X hereof
upon the foregoing described prepayment events. The provisions of this Section 2.12(c)
shall not be deemed to be implied consent to any such issuance, incurrence or sale otherwise
prohibited by the terms and conditions of this Agreement. Any prepayment of Additional Term
Loans made pursuant to this Section 2.12(c) shall only be made in cash.

(d) Payment Certificate. Concurrently with any payment or prepayment of the
Loans pursuant to Sections 2.10, 2.11, 2.12 or 8.2(a), the Borrower shall deliver to the
Agent a certificate of an Authorized Officer certifying whether the Loans being prepaid are
Convertible Term Loans or Additional Term Loans and demonstrating the calculation, with
respect to each Lender, of the Loan Payment Amount, the amount of the applicable net
proceeds, or the number of Borrower Common Shares to be delivered, as the case may be. In
the event that the Borrower shall subsequently determine that the actual amount received
exceeded the amount set forth in such certificate, the Borrower shall promptly make an
additional prepayment of the Loans (with the corresponding right of the Lenders to elect to
convert its Convertible Term Loans into Borrower Common Shares) in accordance with Section
2.12 and in an amount equal to such excess, and the Borrower shall concurrently therewith
deliver to the Agent a certificate of an Authorized Officer demonstrating the derivation of
such excess.

(ix) Section 2.16 (Termination of Commitments) of the Credit Agreement is
hereby amended and restated in its entirety to read as follows:

Section 2.16 Termination of Commitments. The Term Loan Commitment with
respect to Convertible Term Loans only terminated on March 31, 2009. Upon the making of any
Term Loan, each Lender’s Commitment shall be permanently reduced by an amount equal to the
principal amount of such Term Loan.

(c) Amendments to Article III (Conditions Precedent; Conditions Subsequent)

(i) Section 3.2 (Conditions to Each Borrowing) of the Credit Agreement is
hereby amended by inserting the text “Convertible Term” immediately prior to the text “Loan” in the
second line thereof.

(d) Amendments to Article IV (Representations and Warranties).

(i) Section 4.1 (Representations and Warranties of the Credit Parties) of the
Credit Agreement is hereby amended by inserting the text “, on the Second Amendment Date”
immediately after the text “Closing Date” in the fourth line thereof.

(ii) Each of Sections 4.1(l), (m), (x) and (mm) of the Credit
Agreement is hereby amended by deleting the text “each Media Company”, “the Media Companies”, “any
Media Company”, “the other Media Companies” and “other Media Company”, as applicable, each time
such text appears therein and replacing it with “the Borrower and each of its Subsidiaries”, “the
Borrower and its Subsidiaries”, “the Borrower or any of its Subsidiaries”, “its Subsidiaries”, and
“Subsidiary”, respectively.

(iii) Each of Sections 4.1(l), (m)(i) and (iii), (p)(ii),
(w), (x), (aa), (dd), (hh), (ii), and (mm)
of the Credit Agreement is hereby amended by deleting the text “the Closing Date” and “the date
hereof”, as applicable, each time such text appears therein and replacing it with “the Second
Amendment Date”.

 

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AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

(iv) Clause (ii) of Section 4.1(l) (Subsidiaries) of the Credit
Agreement is hereby further amended by deleting the text “Section 4.1(m) of the Disclosure
Schedule” therefrom and replacing it with “Section 4.1(l) of the Disclosure Schedule”.

(v) Section 4.1(hh) (Financial Projections) of the Credit Agreement is hereby
further amended by (A) deleting the text “Section 4.1(m) of the Disclosure Schedule” therefrom and
replacing it with “Section 4.1(l) of the Disclosure Schedule” and (B) deleting the text “Media
Assets” in clause (ii) thereof and replacing it with “assets”.

(vi) Section 4.1(kk) (Media Assets) of the Credit Agreement is hereby amended
and restated in its entirety to read as follows:

(kk) Assets. With respect to the assets acquired on or prior to the Second
Amendment Date, the Borrower, or a wholly owned direct or indirect Foreign Subsidiary of the
Borrower, either (i) has good and marketable title to such assets or (ii) owns all
outstanding shares of Capital Stock of the WFOE which is party to an Internal Control
Agreement with respect to such assets. With respect to assets acquired after the date
hereof, as of the date of acquisition, the Borrower, or a wholly owned direct or indirect
Foreign Subsidiary of the Borrower, either (i) will have good and marketable title to such
assets or (ii) will own all outstanding shares of Capital Stock of the WFOE which is a party
to an Internal Control Agreement with respect to such assets.

(e) Amendment to Article V (Affirmative Covenants)

(i) Section 5.1(a) (Basic Reporting Requirements) of the Credit Agreement is
hereby amended by deleting the text “upon, but only upon, the request of a Lender or the Agent”
from the second line thereof and replacing it with “unless the Agent notifies the Borrower
otherwise”.

(ii) Section 5.1(m) (Guarantors) of the Credit Agreement is hereby amended by
(A) deleting the text “which directly or indirectly holds any Media Assets or any outstanding
shares of Capital Stock of a WFOE which is a party to an Internal Control Agreement with respect to
such Media Assets” therefrom, (B) deleting the text “Foreign Subsidiary” each time it appears
therein and replacing it with “Subsidiary”, and by inserting the text “and pledge all of its
property and assets in favor of the Agent for the benefit of the Agent and the Lenders” immediately
after the text “Guarantor hereunder”.

(iii) Section 5.1(o) (Additional Media Assets) of the Credit Agreement is
hereby amended and restated in its entirety to read as follows:

(o) Additional Assets. Other than purchases of inventory in the ordinary
course of business, no assets or property shall be acquired after the date hereof without
the prior written consent of the Lenders.

(iv) Section 5.1 (Affirmative Covenants) of the Credit Agreement is hereby
amended by inserting new clause (t) immediately after clause (s) thereof to read in its entirety as
follows:

(t) Asset, Financing or Equity Proposal. Promptly upon the Borrower or any of
its Subsidiaries becoming aware of any proposal, negotiation or bid for any asset transfer,
equity or debt issuance or other financing involving the Borrower or any of its
Subsidiaries, the Borrower shall notify the Agent and the Lenders in writing thereof and
deliver to the Agent and the Lenders copies of all statements, reports, correspondence,
notices and other information relating thereto unless the Agent notifies the Borrower
otherwise.

 

9

 

AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

(v) Each of Sections 5.1(b), (c), (d), (g), (h),
(i), (j), (k) and (l) of the Credit Agreement is hereby
amended by deleting the text “the other Credit Parties” and “other Credit Party”, as applicable
therefrom and replacing it with “its Subsidiaries” and “of its Subsidiaries”, respectively.

(vi) Article V (Affirmative Covenants) to the Credit Agreement is hereby
amended by inserting new Section 5.2 (Board Observer and Access) immediately after
new clause (t) of Section 5.1 to read in its entirety as follows:

5.2 Board Observer and Access.

(a) So long as any Obligation shall remain outstanding, the Agent shall have the right
to have one representative (who need not be the same individual from meeting to meeting) (a
“Non-Voting Observer”) observe in full each meeting of the Board and each of the
committees thereof (a “Meeting”), whether in person or, at the option of the
Non-Voting Observer, via telephone attendance; provided that the Non-Voting Observer may not
attend (i) any Meeting of the Audit Committee or Compensation Committee where such committee
has determined in good faith and after consultation with legal counsel that the subject
matter of such Meeting is such that it is required or advisable that only independent
directors attend and non-independent directors not attend, (ii) any Meeting or portion
thereof where such attendance by the Non-Voting Observer could, in the opinion of legal
counsel, compromise Borrower’s attorney-client privilege under applicable law or (iii) any
Meeting or portion thereof where a similarly situated director of the Borrower should, in
the opinion of legal counsel, recuse himself from attendance of such Meeting or portion
thereof under applicable law, regulation or the rules of any stock exchange or inter-dealer
quotation system because such attendance would present a material conflict of interest;
provided, however, that any such exclusion of the Non-Voting Observer
pursuant to clause (ii) or (iii) shall extend only with respect to the subject matter and
portion of any such Meeting relating to such privilege or conflict.

(b) So long as any Obligation shall remain outstanding, the Borrower shall give the
Agent written notice of each Meeting, including the Meeting’s time and place, in the same
manner as the directors of the Board, and (subject to the exceptions in clause (i) and (ii)
of Section 5.2(a)) shall provide the Agent with any document, correspondence or
other information provided to any member of the Board individually or to the Board
collectively, whether provided by the Borrower or a third party, including, without
limitation, agenda and minutes of the Meetings, in each case, no later than it gives such
notice and provides such document, correspondence or other information to such member or the
Board, as the case may be.

(c) The Borrower shall reimburse the Non-Voting Observer for its reasonable
out-of-pocket expenses incurred in connection with attendance at each Meeting, including but
not limited to food, lodging and transportation.

(d) The Non-Voting Observer shall be entitled to participate in discussions and consult
with, and make proposals and furnish advice to, the Board or committee without voting. The
Non-Voting Observer shall have a duty of confidentiality to the Borrower comparable to the
duty of confidentiality of a director of the Board.

(e) The Borrower shall use commercially reasonable efforts to obtain within 30 days of
the Second Amendment Date and (if so obtained) shall thereafter maintain directors’ and
officers’ liability insurance covering the Non-Voting Observer in an amount of at least
$10,000,000.

 

10

 

AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

(f) The Borrower shall indemnify and hold harmless, to the fullest extent permitted
under applicable law, the Non-Voting Observer to the same extent as members of the Board and
on terms no less favorable than under the Borrower’s by-laws or other governing document as
in effect on the date hereof.

(g) So long as any Obligation shall remain outstanding, upon reasonable notice and upon
reasonable request by any of the Lenders or the Agent, each of the Borrower and the
Guarantors shall (i) give such Lender or Agent and their authorized representatives
reasonable access during normal business hours to their accountants, and, to the extent
available to the Borrower or the Guarantors after the Borrower or the Guarantors use
reasonable efforts to obtain them, the accountants’ work papers, (ii) permit each of the
Lenders or the Agent to make such copies and inspections thereof as any such Person may
reasonably request and discuss the affairs, finances and accounts with the managers,
executives and officers thereof.

(f) Amendments to Article VI (Negative Covenants and Financial Covenants)

(i) Clause (vi) of Section 6.1(b)   of the Credit Agreement is hereby
amended by deleting the language “Section 6.1(a)(vii)” therefrom and replacing it with “Section
6.1(a)(v).

(ii) Section 6.1(g) (Mergers; Asset Sales) of the Credit Agreement is hereby
amended and restated in its entirety to read as follows:

(g) Mergers; Asset Sales. Neither the Borrower nor any of its Subsidiaries
shall (i) become a party to a merger or consolidation, (ii) sell, lease or otherwise dispose
of assets, other than (A) sales of inventory in the ordinary course of business and (B)
disposals of obsolete, worn-out or surplus property, (iii) make any changes in the corporate
structure or identity of the Borrower or any of its Subsidiaries or (iv) enter into any
agreement to do any of the foregoing; provided, that, any Credit Party (other than
the Borrower) may merge with and into the Borrower or any Credit Party upon not less than
twenty (20) days’ prior written notice to the Agent of such merger. For the avoidance of
doubt, sales and other dispositions of assets which either are not prohibited by this
Section 6.1(g) or are expressly consented to by the Agent shall be deemed permitted sales of
assets for all purposes of this Agreement, including, without limitation, Section 11.1(e).

(iii) Section 6.1(k) (Subsidiaries) of the Credit Agreement is hereby amended
and restated in its entirety to read as follows:

(k) Subsidiaries. From and after the Second Amendment Date, neither the
Borrower nor any of its Subsidiaries shall form, cause or permit to be formed or cause or
permit to exist, any other Subsidiary, without the prior written consent of the Lenders.

(iv) Section 6.1(p) (Restrictions on Subsidiary Distributions) of the Credit
Agreement is hereby amended by deleting the text “the Media Companies”, “any Media Company”, “Media
Company’s” and “Media Company” therefrom and replacing it with “its Subsidiaries”, “any of its
Subsidiaries”, “Subsidiary’s” and “Subsidiary”, respectively.

(g) Amendments to Section 6.2 (Financial Covenants)

(i) Clause
(a) of Section 6.2 (Financial Covenants) of the Credit
Agreement is hereby amended and restated in its entirety to read as follows:

 

11

 

AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

(a) Minimum Consolidated EBITDA, Maximum Leverage Ratio and Maximum Capital
Expenditures. The Borrower shall not permit (A) Consolidated EBITDA of the Borrower and
its Subsidiaries for any of the latest thirteen four-week periods ending on the end of the
Fiscal Quarters set forth below to be less than the amount or ratio set forth opposite such
period, and (B) the Leverage Ratio for any of the latest thirteen four-week periods ending
on the end of the Fiscal Quarters set forth below to be more than the ratio set forth
opposite such period, in each case for clauses (A) and (B) above, evidence of which shall be
delivered to the Agent with the applicable Financials and certifications required under
Section 5.1(a):

	 	 	 	 	 	 	 	 	 
	 	 	Minimum	 	 	 	 
	 	 	Consolidated	 	 	Maximum	 
	Fiscal Quarter Ending	 	EBITDA	 	 	Leverage Ratio	 
	4th Fiscal Quarter ending in Fiscal Year
2010
	 	$	789,302	 	 	 	57.23:1	 
	1st Fiscal Quarter ending in Fiscal Year
2011
	 	$	2,316,403	 	 	 	19.50:1	 
	2nd Fiscal Quarter ending in Fiscal Year
2011
	 	$	2,825,436	 	 	 	15.99:1	 
	3rd Fiscal Quarter ending in Fiscal Year
2011
	 	$	3,079,953	 	 	 	14.67:1	 
	4th Fiscal Quarter ending in Fiscal Year
2011
	 	$	3,843,503	 	 	 	11.75:1	 
	1st Fiscal Quarter ending in Fiscal Year
2012
	 	$	3,669,732	 	 	 	12.31:1	 
	2nd Fiscal Quarter ending in Fiscal Year
2012
	 	$	3,495,961	 	 	 	12.92:1	 
	3rd Fiscal Quarter ending in Fiscal Year
2012
	 	$	3,322,190	 	 	 	13.60:1	 

For purposes of calculating the financial covenants set forth above for the fourth fiscal
quarter ending in 2010 and for each of the first two fiscal quarters ending in 2011,
Consolidated EBITDA shall be calculated by calculating Consolidated EBITDA for the period
from the first day of the fourth fiscal quarter ending in 2010 through the end of the period
of determination and dividing it by the number of fiscal quarters in such period of
determination on and after the first day of the fourth fiscal quarter ending in 2010 and
multiplying the result by 4.

(ii) The Borrower and its Subsidiaries will not make or become legally obligated to make any
Capital Expenditures during any Fiscal Year exceeding, in the aggregate for the Borrower and its
Subsidiaries, the amount set forth below opposite such Fiscal Year:

	 	 	 	 	 
	 	 	Maximum Capital	 
	Fiscal Year	 	Expenditures	 
	2010
	 	$	1,275,000	 
	2011
	 	$	515,000	 
	2012
	 	$	615,000	 

(iii) Clause (b) of Section 6.2 (Financial Covenants) of the Credit
Agreement is hereby amended and restated in its entirety to read as follows:

 

12

 

AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

(b) No Payments. No Payments. None of the Borrower or any of its
Subsidiaries shall make any payment or series of related payments outside the ordinary
course of business without the prior written consent of the Agent, provided that in any
event any payment or series of related payments by the Borrower or any Subsidiary in excess
of $500,000 in any Fiscal Year shall be considered outside the ordinary course of business
unless (1) such payment or series of related payments is made pursuant to a legal and valid
agreement entered into in the ordinary course of business and binding on the Borrower or
such Subsidiary and, to the knowledge of the Borrower or such Subsidiary, on the recipient
of such payment and (x) such agreement is not with an Affiliate or Significant Person of the
Borrower or any of its Subsidiaries, (y) such agreement is in existence and legal, valid and
binding as of the Second Amendment Date (or is an extension, renewal or modification thereof
on substantially the same terms) and (z) there exists no breach, default or event of
default, or other right to terminate thereunder on the part of the Borrower or such
Subsidiary, or, to the knowledge of the Borrower or such Subsidiary, the recipient of such
payment, both as of the Second Amendment Date and as of the date of such payment and both
before and after giving effect to such payment, or (2) such payment or series of related
payments is made pursuant to a legal and valid agreement entered into in the ordinary course
of business and binding on the Borrower or such Subsidiary and, to the knowledge of the
Borrower or such Subsidiary, on the recipient of such payment and (x) such agreement is not
in existence as of the Second Amendment Date, (y) the counterparty to such agreement is not
an Affiliate or Significant Person of the Borrower or any of its Subsidiaries, and (z) a
copy of such agreement and all ancillary documents have been provided to the Agent not less
than five (5) Business Days prior to the execution thereof by the Borrower or such
Subsidiary and the Agent has determined in its sole discretion that such agreement (1) was
made in good faith, in the ordinary course of business and to further the business purpose
of the Borrower and its Subsidiaries and (2) was not entered into for the purpose of, and
does not have the effect of, making preferential payments to other creditors of the Borrower
and its Subsidiaries; provided, that, if the Agent fails to notify the Borrower or
such Subsidiary of its determination on or prior to the expiration of such five (5) Business
Day period, the Agent shall be deemed to have consented to the execution thereof by
the Borrower or such Subsidiary.

(iv) The amendments in this clause (g) are intended to cure any Default or Event of
Default that may have occurred prior to the date hereof for failure to comply with Section
6.2 (Financial Covenants) of the Credit Agreement as in effect prior to this Amendment
unless the Credit Parties would also have failed to comply with such Section 6.2 after
giving effect to this Amendment.

(h) Amendment to Article VIII (Events of Default)

(i) Section 8.1(n) (Internal Control Agreements) of the Credit Agreement is
hereby amended and restated in its entirety to read as follows:

(n) Internal Control Agreements. At any time after the execution and delivery
thereof any Internal Control Agreement ceases to be in full force and effect (other than by
its terms) or shall be declared null and void or any breach or default shall occur
thereunder or under any commitment letter, power of attorney, document or agreement
delivered to the Agent in connection therewith;

(ii) Section 8.2(a) (Certain Remedies) of the Credit Agreement is hereby
amended and restated in its entirety to read as follows:

(a) Certain Remedies. In the case of (i) any Event of Default specified in any
Section other than Section 8.1(f) or 8.1(g), the Agent may, and at the request of the
Required

 

13

 

AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

Lenders shall, by notice to the Borrower declare the unpaid principal amount of the
Loans and interest accrued thereon and all other Obligations to be immediately due and
payable, which upon delivery of such notice shall become immediately due and payable without
presentment, demand, protest or other notice of any kind, all of which are hereby waived by
the Borrower, and (ii) any of the Events of Default specified in either Section 8.1(f) or
8.1(g), automatically, without any notice to the Borrower or any other act by the Agent or
any Lender, the Commitments shall thereupon terminate, and the unpaid principal amount of
the Loans and interest accrued thereon and all other Obligations shall immediately become
due and payable without presentment, demand, protest or other notice of any kind, all of
which are hereby waived by the Borrower, provided, that, with respect to the
Convertible Term Loans only, such Lender may, regardless of any such amounts becoming due,
elect at any time after acceleration to convert such Convertible Term Loans into Borrower
Common Shares pursuant to Article X hereof. For purposes of clarification, if any Lender
elects to convert its Convertible Term Loans to Borrower Common Shares pursuant to Article X
hereof, the Borrower shall not have to pay the Loan Payment Amount for Convertible Term
Loans if such Borrower Common Shares are delivered to such Lender in accordance with Article
X hereof.

(iii) Clause (ii) of Section 8.2(b) (Remedies in All Events of
Default) of the Credit Agreement is hereby amended by adding the text “or any of its
Subsidiaries” immediately after the text “Borrower”.

(i) Amendments to Article X (Conversion)

(i) Section 10.1 (Conversion Privilege) of the Credit Agreement is hereby
amended by inserting a new clause (f) at the end thereof to read in its entirety as
follows:

(f) Additional Term Loans. Notwithstanding anything contained herein to the
contrary, this Article X shall not apply to Additional Term Loans.

(j) Amendments to Schedules to the Credit Agreement

(i) The contents of Schedule I (Commitments) to the Credit Agreement are
hereby replaced in their entirety with the contents of Schedule I (Commitments)
hereto.

Section 3. Conditions Precedent to the Effectiveness of this Amendment. This
Amendment shall become effective as of the date first written above when, and only when, each of
the following conditions precedent shall have been satisfied or duly waived by the Administrative
Agent (the date each such conditions precedent is satisfied or duly waived, the “Amendment
Effective Date”):

(a) Certain Documents. The Administrative Agent shall have received each of the
following, each, other than this Amendment, dated the Amendment Effective Date (unless otherwise
agreed by the Administrative Agent) and each in form and substance satisfactory to it:

(i) this Amendment, duly executed by the Borrower, each Guarantor, the Administrative Agent
and the Lenders;

(ii) favorable opinions of New York, British Virgin Islands, Cayman Islands and Hong Kong
counsel to the Credit Parties, addressed to the Administrative Agent and the Lenders as to the
enforceability of this Amendment and the enforceability of the Credit Documents after giving effect
to this Amendment, and addressing such other matters as the Administrative Agent may reasonably
request;

 

14

 

AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

(iii) all of the documents, instruments and agreements requested by it to grant to the Agent,
to the extent permitted by applicable law, a first-priority security interest in all of the capital
stock of each Subsidiary of the Borrower, whether a Foreign Subsidiary or a Domestic Subsidiary,
and all assets of the Borrower and all of its Subsidiaries, whether organized under the laws of the
PRC or offshore, including interests in Internal Control Agreements, and in joint ventures of the
Borrower or any of its Subsidiaries;

(iv) to the extent permitted by applicable law and requested by the Agent, Guaranties, duly
executed by each Subsidiary of the Borrower, both Foreign Subsidiaries and Domestic Subsidiaries;

(v) The preferred stock, together all documents, instruments, consents and agreements
requested by it and in form and substance satisfactory to it, to evidence such preferred stock and
its issuance, as described in the Proposal Letter dated July 1, 2010 between the Agent and the
Borrower;

(vi) Original copies of all Internal Control Agreements of the Borrower and its Subsidiaries
and any other Material Contracts requested by it;

(vii) an updated Disclosure Schedule to reflect the Credit Agreement, as amended hereby; and

(viii) such additional documentation as the Administrative Agent may reasonably require;

(b) Representations and Warranties. Each of the representations and warranties
contained in this Amendment were true when made;

(c) No Default or Event of Default. After giving effect to this Amendment, no Default
or Event of Default shall have occurred and be continuing, either on the date hereof or on the
Amendment Effective Date;

(d) Corporate and Other Proceedings. All corporate and other proceedings, and all
documents, instruments, consents and other legal matters ancillary to the transactions contemplated
by this Amendment shall be completed in a form and manner satisfactory in all respects to the
Administrative Agent;

(e) Fees and Expenses Paid. The Borrower shall have paid all Obligations due, after
giving effect to this Amendment, on or before the later of the date hereof and the Amendment
Effective Date, including, without limitation, all fees set forth in Section 6 (Fees
and Expenses) hereof, all other costs, expenses and fees due under any Credit Document and
invoiced prior to the Amendment Effective Date and all costs, expenses and fees due in connection
with the issuance of the Series C Preferred Shares;

(f) Operation of Business. The Credit Parties shall continue to operate their
business in the ordinary course without any extraordinary payments and there shall not have
occurred any material adverse change since June 1, 2010 in the business, assets, properties,
liabilities (actual or contingent), operations, condition (financial or otherwise) or prospects of
(a) the Borrower and (b) the Borrower, the Guarantors and their respective Subsidiaries taken as a
whole or in the facts and information regarding such entities as represented to date;

 

15

 

AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

(g) Repayment of Convertible Term Loans with Proceeds of EO Sale. The Borrower shall
have repaid the Convertible Term Loans with the proceeds received by it from the EO Sale in an
amount equal to $7,600,000.

(h) No Laws. No law or regulation shall be applicable in the judgment of the
Administrative Agent that restrains, prevents or imposes materially adverse conditions upon the
transactions contemplated hereby.

Section 4. Further Agreements. Unless otherwise agreed by the Administrative Agent,
the Borrower and each of its Subsidiaries shall perform all duties and obligations specified on
Schedule C attached hereto within the time limitations stated thereon, time being strictly
of the essence. The failure of the Borrower or any of its Subsidiaries to fully perform on a
timely basis all of the duties and obligations specified on Schedule C attached hereto
shall constitute an Event of Default under the Credit Agreement.

Section 5. Representations and Warranties. On and as of the date hereof and as of the
Amendment Effective Date, after giving effect to this Amendment, each Credit Party hereby
represents and warrants to the Administrative Agent and each Lender as follows:

(a) Binding Obligation. This Amendment has been duly authorized, executed and
delivered by such Credit Party and constitutes a legal, valid and binding obligation of such Credit
Party, enforceable against such Credit Party in accordance with its terms and the Credit Agreement
as modified by this Amendment, except as enforceability thereof may be limited by applicable
bankruptcy or other debtor relief laws and by general principles of equity (regardless of whether
enforcement is sought in proceeding in equity or at law);

(b) Subsidiaries and Affiliates. (i) If such Credit Party is the Borrower, the
corporate chart attached hereto as Schedule C and the representations and warranties set
forth Section 4.1(l) (Subsidiaries) of the Credit Agreement are true as of the date
hereof (replacing “Closing Date” therein with the date of this Amendment and taking into account
any updated information delivered by the Borrowers to the Administrative Agent on or prior to the
date hereof), all Subsidiaries of the Borrower existing on the Amendment Effective Date have
executed a Guaranty and the Credit Documents required to be executed with respect to such
Subsidiaries pursuant to the Credit Agreement, including, without limitation, Section
5.1(m) (Guarantors) thereof and (ii) in any case, all certificates, statements, updated
schedules, collateral and other updates and other documents required to be delivered by such Credit
Party to the Administrative Agent or any Lender pursuant to any Credit Document as modified hereby
have been delivered thereunder and all filings required to be made by or on behalf of such Credit
Party pursuant to any such Credit Document have been made;

(c) Representations and Warranties in Credit Documents. Each of the representations
and warranties of such Credit Party contained in any Credit Document (as modified hereby) or in any
certificate, document or financial or other written statement furnished at any time under or in
connection therewith is true in all material respects on and as of the date hereof and the
Amendment Effective Date, in each case as if made on and as of such date and except to the extent
that such representations and warranties expressly relate to a specific date, in which case such
representations and warranties shall be true in all material respects as of such specific date;
provided, however, that, as used therein, (i) “Credit Agreement” shall refer to the
Credit Agreement as amended hereby and after giving effect to the waivers set forth herein and
(ii) “Credit Documents” shall include this Amendment;

(d) No Litigation or Defense. No litigation has been commenced or threatened against
such Credit Party or any of its Subsidiaries seeking to restrain or enjoin (whether temporarily,

 

16

 

AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

preliminarily or permanently) the performance of any action by any Credit Party or any
Subsidiary of any Credit Party required or contemplated by the terms of this Amendment or any other
Credit Document as modified hereby, and there exists no cause of action, offset, claim,
counterclaim or defense, whether or not asserted, against the Administrative Agent or any Lender or
any of their Related Parties (as defined below) with respect to the Obligations under any Credit
Document; and

(e) Outstanding Principal Amount. Schedule B hereto correctly lists the
aggregate principal amount of all Loans outstanding on the date hereof (prior to giving effect to
this Amendment), each of which is owed by the Borrower.

Section 6. Fees and Expenses.

(a) On the date hereof, the Borrower shall pay to the Agent a one-time non-refundable
amendment fee (the “Amendment Fee”) equal to (i) the sum of all Additional Term Loan
Commitments as of the Second Amendment Date, times (ii) a rate equal to 2.0%. The Amendment Fee
shall be deemed fully earned and due and payable in immediately available Dollars on the date
hereof, and shall be in addition to any other fee from time to time payable under the Credit
Documents.

(b) Each Credit Party agrees to pay on demand (i) in accordance with the terms of
Section 11.3 (Expenses) of the Credit Agreement all costs and expenses of the
Administrative Agent in connection with the preparation, reproduction, execution, delivery and
enforcement of this Amendment and all other Credit Documents entered into in connection herewith
(including, without limitation, the fees and expenses of attorneys, advisors and other
professionals hired by the Administrative Agent with respect to the Credit Parties or the Credit
Documents) and (ii) all fees, costs and expenses due in connection with the issuance of the Series
C Preferred Shares (including without limitation, the fees and expenses of attorneys, advisors and
other professionals with respect thereto).

Section 7. Release. In further consideration for the execution by the Administrative
Agent and the Lenders party hereto of this Amendment and without limiting any rights or remedies
the Administrative Agent or any Lender may have, each Credit Party hereby releases each of the
Administrative Agent, each Lender and each of their Related Parties (each a “Releasee” and,
collectively, the “Releasees”) from any and all Claims that any Credit Party has or may
have against any Releasee, whether or not relating to any Credit Document, Obligation, Collateral,
or legal relationship that exists or may exist between any Releasee and any Credit Party. As used
in this Section 7, (i) “Claims” means all liabilities, rights, demands, covenants,
duties, obligations (including, without limitation, indebtedness, receivables and other contractual
obligations), claims, actions and causes of actions, suits, disputes, judgments, damages, losses,
debts, responsibilities, fines, penalties, sanctions, commissions and interest, disbursements,
taxes, charges, costs, fees and expenses (including, without limitation, fees, charges and
disbursements of financial, legal and other advisors, consultants and professionals and, if
applicable, any value-added and other taxes and charges thereon), in each case of any kind or
nature, whether joint or several, whether now existing or hereafter arising and however acquired
and whether or not known, asserted, direct, contingent, liquidated, due, consequential, actual,
punitive or treble, (ii) “Related Party” shall mean, with respect to any Person, any
Affiliate of such Person or of another Related Party of such Person (excluding, in each case, the
Credit Parties and their Controlled Affiliates) and such Person’s and such Affiliate’s
predecessors, successors, assigns, managers, members, partners, directors, officers, employees
(regardless of whether seconded to a third party and including, without limitation, individuals
with independent contractor or similar status), individual stockholders, agents, attorneys-in-fact,
trustees, fiduciaries, representatives and advisors, (iii) “Affiliated Investor” means any
Person that is a collateralized debt obligation, collateralized loan obligation or any other
investment pooling vehicle or other entity that (A) is created primarily to invest in equity or
debt securities, loans and other investments, (B) does not operate any trade or business and (C) is
administered, advised or managed by, or directly or

 

17

 

AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

indirectly under common administration, advice or management with, the Administrative Agent or
any Lender or any Affiliate of any Lender or the Administrative Agent and (iv) “Controlled
Affiliate” means, with respect to any entity, any Person directly or indirectly “controlled”
(as defined in the definition of “Affiliate” set forth in the Credit Agreement on the date hereof)
by one or more of such entity and its other Controlled Affiliates.

Section 8. Consent of Guarantors and Reaffirmation of Obligations. Each Guarantor
hereby consents to this Amendment and agrees that it continues to guaranty, pursuant to the Credit
Documents, as primary obligor and not as surety, the full and punctual payment when due of the
Obligations as modified hereby and that the terms hereof shall not affect in any way its
obligations and liabilities, as expressly modified hereby, under the Credit Documents. Each Credit
Party hereby reaffirms (a) all such obligations and liabilities, and agrees that such obligations
and liabilities shall remain in full force and effect, (b) the Liens granted under the Credit
Documents, and agrees that such Liens shall continue to secure the Obligations as expressly
modified hereby, and (c) the validity and enforceability of the Credit Documents.

Section 9. Effect on the Credit Documents. This Amendment is a Credit Document and is
limited as written and failure to comply with any of the agreements set forth herein shall be an
immediate Event of Default. As of the date each modification set forth herein shall become
effective, each reference in the Credit Agreement to “this Agreement,” “hereunder,”
“hereof,” “herein,” or words of like import, and each reference in the other Credit
Documents to the Credit Agreement (including, without limitation, by means of words like
“thereunder”, “thereof” and words of like import), shall refer to the Credit
Agreement as modified thereby, and this Amendment and the Credit Agreement shall be read together
and construed as a single agreement. The execution, delivery and effectiveness of this Amendment
shall not, except as expressly provided herein, (a) waive or modify any right, power or remedy
under, or any other provision of, any Credit Document or (b) commit or otherwise obligate the
Administrative Agent or any Lender to enter into or consider entering into any other waiver or
modification of any Credit Document.

Section 10. Reservation of Rights. No failure on the part of any Lender or the
Administrative Agent to exercise, and no delay in exercising, any right under the Credit Agreement
shall operate as a waiver thereof; nor shall any single or partial exercise of any such right
preclude any other or further exercise thereof or the exercise of any other right. Nothing herein,
or in the course of dealing or in the discussions between any Credit Party and any of the
Administrative Agent, the Lenders and their related parties, shall waive any Default or Events of
Default or waive or modify any other provision of any Credit Document.

Section 11. Waiver of Jury Trial; Miscellaneous. Headings are for convenience only
and do not form part of this Amendment, except when used to reference an article or section, in
which case such title reference shall govern absent manifest error in case of conflict. All
communications and notices hereunder shall be given as provided in the Credit Documents. This
Amendment (a) shall be governed by and construed in accordance with the law of the State of New
York, (b) is for the exclusive benefit of the parties hereto and, together with the other Credit
Documents, constitutes the entire agreement of such parties, superseding all prior agreements among
them, with respect to the subject matter hereof, (c) may be modified, waived or assigned only in
writing and only to the extent such modification, waiver or assignment would be permitted under the
Credit Documents (and any attempt to assign this Amendment without such writing shall be null and
void), (d) may be executed in counterparts, which may be effectively transmitted by fax or e-mail
(in each case return receipt requested and obtained) and which, together, shall constitute one and
the same instrument, (e) is a negotiated document, entered into freely among the parties upon
advice of their own counsel, and it should not be construed against any of its drafters and
(f) shall survive the satisfaction or discharge of the Obligations. The fact that any term or

 

18

 

AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

provision of this Amendment is held invalid, illegal or unenforceable as to any person in any
situation in any jurisdiction shall not affect the validity, enforceability or legality of the
remaining terms or provisions hereof or the validity, enforceability or legality of such offending
term or provision in any other situation or jurisdiction or as applied to any person. Each party
hereto hereby irrevocably and unconditionally waives any right to trial by jury with respect to
this Amendment.

[SIGNATURE PAGES FOLLOW]

 

19

 

AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by
their respective officers and general partners thereunto duly authorized, as of the date first
written above.

BORROWER:

	 	 	 	 	 
	Executed as a Deed by

	 	)	 
	XINHUA SPORTS &

	 	)	 
	ENTERTAINMENT LIMITED (formerly

	 	) /s/ Graham Anton Earnshaw

	known as Xinhua Finance Media Limited)

	 	)	 
	in the presence of and SIGNED by:

	 	)	 

GRANTORS:

	 	 	 	 	 
	Executed as a Deed by

	 	)	 
	UPPER STEP HOLDINGS LIMITED

	 	)	 
	in the presence of and SIGNED by:

	 	) /s/ Graham Anton Earnshaw

	 

	 	)	 
	 

	 	)	 
	 
	 	 	 
	Executed as a Deed by

	 	)	 
	CHINA LEAD PROFITS LIMITED

	 	)	 
	in the presence of and SIGNED by:

	 	) /s/ Graham Anton Earnshaw

	 

	 	)	 
	 

	 	)	 
	 
	 	 	 	 
	Executed as a Deed by

	 	)	 
	EVERFAME DEVELOPMENT

	 	)	 
	LIMITED

	 	)	 
	in the presence of and SIGNED by:

	 	) /s/ Graham Anton Earnshaw	 
	 

	 	)

 

 

 

AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

	 	 	 	 	 
	Executed as a Deed by

	 	)	 
	STAREASE LIMITED

	 	)	 
	in the presence of and SIGNED by:

	 	) /s/ Graham Anton Earnshaw

	 

	 	)	 
	 

	 	)	 
	 
	 	 	 	 
	Executed as a Deed by

	 	)	 
	ACCORD GROUP INVESTMENTS

	 	)	 
	LIMITED

	 	)	 
	in the presence of and SIGNED by:

	 	) /s/ Graham Anton Earnshaw	 
	 

	 	)	 
	 
	 	 	 	 
	Executed as a Deed by

	 	)		 
	GREAT TRIUMPH INVESTMENTS

	 	)	 
	LIMITED

	 	)	 
	in the presence of and SIGNED by:

	 	) /s/ Graham Anton Earnshaw	 
	 

	 	)	 
	 
	 	 	 	 
	Executed as a Deed by

	 	)	 
	EAST ALLIANCE LIMITED

	 	)	 
	in the presence of and SIGNED by:

	 	) /s/ Graham Anton Earnshaw

	 

	 	)	 
	 

	 	)	 
	 
	 	 	 	 
	Executed as a Deed by

	 	)	 
	CENTURY EFFORT LIMITED

	 	)	 
	in the presence of and SIGNED by:

	 	) /s/ Graham Anton Earnshaw

	 

	 	)	 
	 

	 	)	 

 

2

 

AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

	 	 	 	 	 
	Executed as a Deed by

	 	)	 
	SMALL WORLD HOLDING

	 	)	 
	COMPANY LIMITED
	 	)	 
	in the presence of and SIGNED by:

	 	) /s/ Graham Anton Earnshaw

	 

	 	)	 
	 
	 	 	 	 
	Executed as a Deed by

	 	)	 
	NUCOM ONLINE CORPORATION

	 	)	 
	in the presence of and SIGNED by:

	 	) /s/ Graham Anton Earnshaw

	 

	 	)	 
	 

	 	)	 
	 
	 	 	 	 
	Executed as a Deed by

	 	)	 
	XSEL ADVERTISING LIMITED

	 	)	 
	in the presence of and SIGNED by:

	 	) /s/ Graham Anton Earnshaw

	 

	 	)	 
	 

	 	)	 
	 
	 	 	 	 
	Executed as a Deed by

	 	)	 
	UPPER WILL ENTERPRISES

	 	)	 
	LIMITED
	 	)	 
	in the presence of and SIGNED by:
	 	) /s/ Graham Anton Earnshaw

	 

	 	)	 
	 
	 	 	 	 
	Executed as a Deed by

	 	)	 
	XINHUA SPORTS VENTURES

	 	)	 
	LIMITED

	 	)	 
	in the presence of and SIGNED by:

	 	) /s/ Graham Anton Earnshaw

	 

	 	)	 

 

3

 

AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

	 	 	 	 	 
	The Common Seal of

	 	)	 
	CHINA MEDIA NETWORK LIMITED

	 	) /s/ Graham Anton Earnshaw

	was affixed in the presence of:

	 	)	 
	 

	 	)	 
	 

	 	)	 
	 
	 	 	 	 
	The Common Seal of

	 	)	 
	XINHUA SPORTS &

	 	)	 
	ENTERTAINMENT (HK) LIMITED

	 	)	 
	was affixed in the presence of:

	 	) /s/ Graham Anton Earnshaw	 
	 

	 	) 
	 
	 	 	 	 
	The Common Seal of

	 	)	 
	ADVANCE MIND HOLDINGS

	 	)	 
	LIMITED

	 	)	 
	was affixed in the presence of:

	 	) /s/ Graham Anton Earnshaw	 
	 

	 	)

	 
	 	 	 	 
	The Common Seal of

	 	)	 
	XSEL (HONG KONG) LIMITED

	 	)	 
	was affixed in the presence of:

	 	) /s/ Graham Anton Earnshaw

	 

	 	)	 
	 

	 	)	 
	 
	 	 	 	 
	The Common Seal of

	 	)	 
	HONG KONG STOCK EXPRESS

	 	)	 
	PUBLICATION LIMITED

	 	)	 
	was affixed in the presence of:

	 	) /s/ Graham Anton Earnshaw

	 

	 	)	 

 

4

 

AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

	 	 	 	 	 
	The Common Seal of

	 	)	 
	SINGSHINE (HOLDINGS)

	 	)	 
	HONGKONG LIMITED

	 	)	 
	was affixed in the presence of:

	 	) /s/ Graham Anton Earnshaw

	 

	 	)	 

 

5

 

AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

	 	 	 	 	 
	AGENT: 	PATRIARCH PARTNERS AGENCY SERVICES, LLC, as Agent

 	 
	 	By:  	/s/ Lynn Tilton
 	 
	 	 	Name:  	Lynn Tilton 	 
	 	 	Title:  	Manager 	 
	 

 

 

 

AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

	 	 	 	 	 	 	 	 	 	 	 
	LENDERS:	 	ZOHAR CDO 2003-1, LIMITED	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Patriarch Partners VIII, LLC,	 	 
	 	 	 	 	its Collateral Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ Lynn Tilton	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Lynn Tilton	 	 
	 

	 	 	 	 	 	Title:
	 	Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	ZOHAR II 2005-1, LIMITED	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Patriarch Partners XVI, LLC,	 	 
	 	 	 	 	its Collateral Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ Lynn Tilton	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Lynn Tilton	 	 
	 

	 	 	 	 	 	Title:
	 	Manager	 	 

 

 

 

AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

SCHEDULE A

EVENTS OF DEFAULT

1. The Borrower is not in compliance with Section 6.2(a) of the Credit Agreement for the
fourth Fiscal Quarter ending in 2009 and the First and Second Fiscal Quarters in 2010.

2. The Borrower is not in compliance with Section 4.01 of the Investor and Registration Rights
Agreement, which required the Borrower to (a) file with the SEC within 180 days prior to the
Effectiveness Deadline the Shelf Registration Statement and (b) cause the Shelf Registration
Statement to be declared effective by the Effectiveness Deadline.

SCHEDULE A

 

 

 

AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

SCHEDULE B

EXISTING LOANS

	 	 	 	 	 
	Lender	 	Outstanding Principal Amount of all Loans	 
	ZOHAR CDO 2003-1, LIMITED
	 	$	26,310,332.87	 
	ZOHAR II 2005-1, LIMITED
	 	$	22,745,707.13	 
	 	 	 	 
	Total
	 	$	49,056,040.00	 
	 	 	 	 

SCHEDULE B

 

 

 

AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

SCHEDULE C

CORPORATE CHART

SCHEDULE C

 

 

 

AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

SCHEDULE D

FURTHER AGREEMENTS

1. Not later than 5 p.m. (Hong Kong time) on Wednesday, July 14, 2010 (or such longer period
as the Agent may agree), the Borrower shall deliver to the Agent evidence of the appointment of CT
Corporation as agent for service of process on behalf of the Credit Parties and the Subordination
Creditors listed on the signature pages of the Intercompany Subordination Agreement in connection
with such agreement.

2. For each Credit Party organized under the laws of the British Virgin Islands, the Borrower
shall deliver to the Agent, not later than 5 p.m. (New York City time) on (a) Tuesday, July 13,
2010 (or such longer period as the Agent may agree), a copy of the share register for such Credit
Party evidencing the notation of the lien of the Agent against such Credit Party’s shares,
certified by the British Virgin Islands registered agent of such Credit Party and (b) Monday, July
19, 2010 (or such longer period as the Agent may agree), (i) a copy of the share register for such
Credit Party evidencing the notation of the lien of the Agent against such Credit Party’s shares,
certified by the Registrar of Corporate Affairs for the British Virgin Islands and (ii)
Certificates of Registration of Charge from the Registrar of Corporate Affairs for the British
Virgin Islands, certifying that all charges against the assets of such Credit Party have been
registered in the Register of Registered Charges.

3. Not later than 5 p.m. (New York City time) on Tuesday, July 13, 2010 (or such longer period
as the Agent may agree), for each Credit Party organized under the laws of the Cayman Islands, (a)
a copy of the Register of Mortgages and Charges for such Credit Party evidencing the notation of
the lien of the Agent, and (b) with respect to each of NuCom Online Corporation and Xinhua Sports
Ventures Limited, a copy of the Register of Members of such Credit Party evidencing the notation of
the lien of the Agent against such Credit Party’s shares, each certified by the Cayman Islands
registered agent of such Credit Party.

4. Not later than 5 p.m. (New York City time) on Wednesday, July 14, 2010 (or such longer
period as the Agent may agree), the Borrower shall deliver to the Agent copies of fully executed
share transfer documents transferring all of the shares of equity in (a) Zhongxi Taihe Culture
Consultation (Shanghai) Co., Ltd.; (b) Xinhua Sports & Entertainment (Shanghai) Co., Ltd.; and
(c) Xinhua Sports & Entertainment (Beijing) Co., Ltd. from the Borrower to Upper Step Holdings
Limited, an entity incorporated in the British Virgin Islands.

5. To the extent not delivered on or before the Amendment Effective Date, the Borrower shall
deliver to the Agent as promptly as practicable after the Amendment Effective Date, but not later
than 5 p.m. (New York City time) on Wednesday, July 14, 2010 (or such longer period as the Agent
may agree), original copies of all of the Internal Control Agreements for the Borrower’s Domestic
Subsidiaries, including without limitation, all of the following documents related thereto: (a)
authorisation letters; (b) equity transfer agreements; (c) resignation letters; (d) director
appointment letters; and (e) legal representative appointment letters.

6. No later than three (3) Business Days (or such longer period as the Agent may agree) after
the Agent shall have provided to the Borrower the name of the individual designated by the Agent
and if required by such bank, the appearance in person by such individual at such bank, the
Borrower shall have added such individual as a required signatory to its banks accounts located in
the PRC, provided that such designated individual shall furnish to the applicable bank all
information required by such bank for such designated individual to become a required signatory to
such bank accounts.

SCHEDULE D

 

 

 

7. The Borrower shall deliver to the Agent as promptly as practicable after the Amendment
Effective Date, but not later than 5 p.m. (New York City time) on Monday, July 19, 2010 (or such
longer period as the Agent may agree), (a) an originally and fully executed copy of the
Intercompany Subordination Agreement, in the form approved by the Agent, by the Subordination
Creditors listed on the signature pages thereof, with the official chop affixed thereto, (b) a copy
of the business license for each Subordinated Creditor, or other documentation reasonably
acceptable to the Agent, evidencing the authority of the individual executing the Intercompany
Subordination Agreement to sign as the legal representative or the authorized signatory of such
Subordinated Creditor, (c)(i) an originally and fully executed copy of a Commitment Letter from
each WFOE and each of its variable interest entities, including without limitation those majority
held entities organized in the PRC shown on the Corporate Chart of the Borrower attached hereto as
Exhibit C (individually an “Operating Company” and collectively the “Operating
Companies”) and each WFOE not subject to Internal Control Agreements, (ii) a Power of Attorney
from each WFOE and (iii) signed undated letters of resignation from each chairman, director,
supervisor and legal representative of each WFOE, each Operating Company and each of the
subsidiaries of each Operating Company, all in forms approved by the Agent, and (d) an opinion of
Latham & Watkins, special United States counsel to the Borrowers, in form and substance
satisfactory to the Agent, regarding enforceability and no conflicts with respect to the
Intercompany Subordination Agreement.

8. The Borrower shall deliver to the Agent as promptly as practicable after the Amendment
Effective Date, but not later than 5 p.m. (New York City time) on Monday, July 19, 2010 (or such
longer period as the Agent may agree) (a) originally and fully executed copies of the Letters of
Resignation and Written Resolutions required in connection with the Share Charges executed by NuCom
Online Corporation; (b) the original share certificate of NuCom Online Corporation, a Cayman
Islands entity (“NuCom”), evidencing the 100% equity interest in NuCom held by the
Borrower, together with an originally executed blank transfer power with respect thereto; (c) the
original share certificate of NuCom Online Hongkong Limited, a Hong Kong entity (“NuCom
Hongkong”), evidencing the 100% equity interest in NuCom Hongkong held by NuCom Online
Corporation, together with an originally executed blank transfer power with respect thereto; (d)
duly adopted written resolutions or the minutes of a meeting of the directors of NuCom Hongkong
relating to the authorization, execution, delivery and performance of the Credit Documents to be
executed by NuCom Hongkong and the consummation of the transactions contemplated thereby, certified
by a Director of NuCom Hongkong, as being true, correct, complete and in full force and effect; (e)
originally executed copies of all of the documents, instruments and agreements requested by the
Agent to grant to the Agent, to the extent permitted by applicable law, a first-priority security
interest in all of the capital stock of NuCom Hongkong and all assets of NuCom Hongkong, including
without limitation, a Debenture, Security Assignment Over Bank Accounts, Notice of Assignment of
Bank Account, Joinder to Credit Agreement, Intercompany Subordination Agreement, Joinder to
Security Agreement, Commitment Letter and related documents; (f) a Joinder to Guaranty, duly
executed by NuCom Hongkong; (g) favorable opinions of New York and Hong Kong counsel to NuCom
Hongkong, addressed to the Administrative Agent and the Lenders as to the enforceability of the
Credit Documents to be executed by NuCom Hongkong, and addressing such other matters as the
Administrative Agent may reasonably request; and (h) a certificate of a director of NuCom Hongkong,
substantially in the form of Exhibit E to the Credit Agreement, with respect to the certificate of
formation, articles of association, the resolutions referred to in clause (d) above, and the
incumbency of the authorized signatory of NuCom Hongkong.

9. As soon as practicable after the Amendment Effective Date, but in any event not later than
5 p.m. (New York City time) on Monday, July 26, 2010 (or such longer period as the Agent may
agree), the original share certificate of Xinhua Finance Media (Convey) Limited, a British Virgin
Islands entity (“Xinhua Finance Media (Convoy)”), evidencing the 15% equity interest in
Xinhua Finance Media (Convey) held by the Borrower.

 

 

 

10. As soon as practicable after the Amendment Effective Date, but in any event no later than
60 days after the date hereof (or such longer period as the Agent may agree), the transfer of all
of the shares of equity in (a) Zhongxi Taihe Culture Consultation (Shanghai) Co., Ltd.; (b) Xinhua
Sports & Entertainment (Shanghai) Co., Ltd.; and (c) Xinhua Sports & Entertainment (Beijing) Co.,
Ltd. from the Borrower to Upper Step Holdings Limited, an entity incorporated in the British Virgin
Islands, shall be effective for all purposes, and all consents, including those of any Governmental
Body in the PRC, the British Virgin Islands, and the Cayman Islands, shall have been obtained and
all necessary filings shall have been made in respect thereof.

 

 

 

AMENDMENT NO. 2 AND WAIVER

TO CREDIT AGREEMENT OF

XINHUA SPORTS & ENTERTAINMENT LIMITED

SCHEDULE I

COMMITMENTS

	 	 	 	 	 
	Lender	 	Convertible Term Loan Commitments	 
	ZOHAR CDO 2003-1, LIMITED
	 	$	22,234,208.30	 
	ZOHAR II 2005-1, LIMITED
	 	$	19,221,831.70	 
	 	 	 	 
	Total Convertible Term Loan Commitments
	 	$	41,456,040.00	 
	 	 	 	 

	 	 	 	 	 
	Lender	 	Additional Term Loan Commitments	 
	ZOHAR CDO 2003-1, LIMITED
	 	$	4,076,124.57	 
	ZOHAR II 2005-1, LIMITED
	 	$	3,523,875.43	 
	 	 	 	 
	Total Additional Term Loan Commitments
	 	$	7,600,000.00	 
	 	 	 	 
	 	 	 	 	 
	TOTAL COMMITMENTS
	 	$	49,056,040.00	 
	 	 	 	 

SCHEDULE IExhibit 4.66

Exhibit 4.66

EXECUTION COPY

 

 

SERIES
C CONVERTIBLE PREFERRED SHARES

PURCHASE AGREEMENT

Dated as of July 12, 2010

between

THE INVESTORS LISTED ON SCHEDULE 1

and

XINHUA SPORTS & ENTERTAINMENT LIMITED

 

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I DEFINITIONS AND INTERPRETATION
	 	 	1	 
	 
	 	 	 	 
	Section 1.1 Definitions
	 	 	1	 
	Section 1.2 Interpretation
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II PURCHASE AND SALE OF SHARES
	 	 	2	 
	 
	 	 	 	 
	Section 2.1 Purchase and Sale of Shares
	 	 	2	 
	Section 2.2 The Closing
	 	 	2	 
	Section 2.3 Investors’ Deliveries at the Closing
	 	 	2	 
	Section 2.4 Company Deliveries at the Closing
	 	 	2	 
	 
	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	 	 	3	 
	 
	 	 	 	 
	Section 3.1 Organization
	 	 	3	 
	Section 3.2 Capitalization
	 	 	3	 
	Section 3.3 Authorization; Execution and Enforceability
	 	 	4	 
	Section 3.4 Subsidiaries and Joint Ventures
	 	 	5	 
	Section 3.5 No Conflicts; Consents and Approvals
	 	 	5	 
	Section 3.6 SEC Reports; Financial Statements
	 	 	6	 
	Section 3.7 Absence of Certain Changes
	 	 	6	 
	Section 3.8 No Undisclosed Liabilities
	 	 	7	 
	Section 3.9 Litigation
	 	 	7	 
	Section 3.10 Licenses
	 	 	7	 
	Section 3.11 Intellectual Property Rights
	 	 	8	 
	Section 3.12 Exchange Listing
	 	 	8	 
	Section 3.13 Tax Matters
	 	 	8	 
	Section 3.14 Tangible Assets
	 	 	8	 
	Section 3.15 Leases and Contracts
	 	 	9	 
	Section 3.16 Employees
	 	 	9	 
	Section 3.17 Compliance with Law
	 	 	9	 
	Section 3.18 Related Party Transactions
	 	 	9	 
	Section 3.19 Investment Company
	 	 	9	 
	Section 3.20 Corrupt Practices; USA Patriot Act, OFAC
	 	 	10	 
	Section 3.21 Validity of the Shares
	 	 	10	 
	Section 3.22 Registration, Information and Special Voting Rights
	 	 	10	 
	Section 3.23 Securities Law Compliance
	 	 	10	 
	Section 3.24 Brokers
	 	 	11	 
	Section 3.25 Tag-Along Rights
	 	 	11	 
	Section 3.26 Change of Control
	 	 	11	 
	 
	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE INVESTORS
	 	 	11	 
	 
	 	 	 	 
	Section 4.1 Organization, Standing and Power
	 	 	11	 
	Section 4.2 Authorization; Execution and Investors
	 	 	11	 
	Section 4.3 No Conflict; Consents and Approvals
	 	 	11	 

 

i

 

	 	 	 	 	 
	Section 4.4  Purchase Entirely for Own Account 
	 	 	12	 
	Section 4.5  Investment Experience 
	 	 	12	 
	Section 4.6  Restricted Securities 
	 	 	12	 
	Section 4.7  Legends 
	 	 	12	 
	Section 4.8  Accredited Investor 
	 	 	13	 
	Section 4.9  No General Solicitation 
	 	 	13	 
	Section 4.10  Brokers 
	 	 	13	 
	 
	 	 	 	 
	ARTICLE V COVENANTS
	 	 	13	 
	 
	 	 	 	 
	Section 5.1  Access to Information 
	 	 	13	 
	Section 5.2  Pre-Closing Actions Affecting the Common Shares 
	 	 	14	 
	Section 5.3  Listing 
	 	 	14	 
	Section 5.4  Preservation of Accuracy of Representations and Warranties; Fulfillment of Conditions; Notification of Certain Pre-Closing Matters; Cooperation 
	 	 	15	 
	Section 5.5  Contractual Consents and Governmental Approvals 
	 	 	15	 
	Section 5.6  Issuance of ADS Shares 
	 	 	16	 
	Section 5.7  Investors’ Pre-Emptive Rights 
	 	 	16	 
	Section 5.8  Shelf Registration Statement 
	 	 	18	 
	Section 5.9  Board Observer 
	 	 	25	 
	Section 5.10  Negotiation of Proper Initial Conversion Price 
	 	 	26	 
	 
	 	 	 	 
	ARTICLE VI CONDITIONS
	 	 	27	 
	 
	 	 	 	 
	Section 6.1  Conditions to the Company’s Obligations 
	 	 	27	 
	Section 6.2  Conditions to the Investors’ Obligations 
	 	 	28	 
	 
	 	 	 	 
	ARTICLE VII INDEMNIFICATION
	 	 	29	 
	 
	 	 	 	 
	Section 7.1  Survival 
	 	 	29	 
	Section 7.2  Indemnification 
	 	 	29	 
	Section 7.3  [Intentionally Omitted] 
	 	 	30	 
	Section 7.4  Indemnification Procedures 
	 	 	30	 
	Section 7.5  Third-Party Claims 
	 	 	30	 
	Section 7.6  Tax Treatment of Indemnity Payments 
	 	 	30	 
	Section 7.7  Exclusivity 
	 	 	31	 
	Section 7.8  Certain Damages 
	 	 	31	 
	 
	 	 	 	 
	ARTICLE VIII FURTHER AGREEMENTS; TRANSFER RESTRICTIONS
	 	 	31	 
	 
	 	 	 	 
	Section 8.1  Public Announcements 
	 	 	31	 
	Section 8.2  Fees and Expenses 
	 	 	31	 
	Section 8.3  Restrictions on Transfers of Series C Preferred Shares 
	 	 	31	 
	Section 8.4  Limitation on Short Sales 
	 	 	32	 

 

ii

 

	 	 	 	 	 
	ARTICLE IX GENERAL
	 	 	32	 
	 
	 	 	 	 
	Section 9.1 Termination
	 	 	32	 
	Section 9.2 Notices
	 	 	33	 
	Section 9.3 Complete Agreement; No Third-Party Beneficiaries
	 	 	34	 
	Section 9.4 GOVERNING LAW
	 	 	35	 
	Section 9.5 No Assignment
	 	 	35	 
	Section 9.6 Counterparts
	 	 	35	 
	Section 9.7 Remedies; Waiver
	 	 	35	 
	Section 9.8 Severability
	 	 	35	 
	Section 9.9 Amendment; Waiver
	 	 	36	 
	Section 9.10 WAIVER OF JURY TRIAL
	 	 	36	 
	 
	 	 	 	 
	Exhibit A Definitions
	 	 	 	 
	Exhibit B Form of Series C Authorizing Resolution
	 	 	 	 
	Exhibit C-1 Form of Legal Opinion of Conyers Dill & Pearman
	 	 	 	 
	Exhibit C-2 Form of Legal Opinion of Latham & Watkins
	 	 	 	 
	Exhibit D Form of Registration Rights Agreement
	 	 	 	 
	 
	 	 	 	 
	Schedule 1 List of Investors
	 	 	 	 

 

iii

 

SERIES C CONVERTIBLE PREFERRED SHARES

PURCHASE AGREEMENT

THIS SERIES C CONVERTIBLE PREFERRED SHARES PURCHASE AGREEMENT, dated as of July 12, 2010, is
by and between the Investors listed on Schedule 1 hereto (the “Investors”), and XINHUA
SPORTS & ENTERTAINMENT LIMITED (formerly known as Xinhua Finance Media Limited), a company
organized under the laws of the Cayman Islands (the “Company” and together with the
Investors, the “Parties”) (this “Agreement”).

W I T N E S S E T H:

WHEREAS, the Parties are entering into that certain Amendment No. 2 and Waiver to the
Patriarch Credit Agreement (as defined in Exhibit A hereto), dated as of the date hereof, by and
among the Parties and the other parties thereto (the “Amendment”);

WHEREAS, the Company has created a new class of convertible preferred shares designated as
Series C Convertible Preferred Shares (the “Series C Preferred Shares”) through the
adoption by the Board of an authorizing resolution in the form attached as Exhibit B hereto
(the “Authorizing Resolution”); and

WHEREAS, in connection with the Amendment, the Company wishes to issue and sell to the
Investors, and the Investors wish to purchase from the Company, 78,295 Series C Preferred Shares
(the “Shares”) upon the terms and subject to the conditions set forth herein and in the
Transaction Documents;

NOW, THEREFORE, in consideration of the foregoing and the mutual representations, warranties,
covenants and agreements herein contained, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

ARTICLE I

DEFINITIONS AND INTERPRETATION

Section 1.1 Definitions. The capitalized terms that are defined in Exhibit A are
used herein with the meanings set forth therein.

Section 1.2 Interpretation.

(a) Headings. The headings to the Articles, Sections and Subsections of this
Agreement or any Exhibit to this Agreement are inserted for convenience of reference only and shall
not affect the meaning or interpretation of this Agreement.

(b) Usage. In this Agreement, unless the context requires otherwise: (i) the
singular number includes the plural number and vice versa; (ii) reference to any gender includes
each other gender; (iii) Exhibit A to this Agreement is hereby incorporated into, and shall
be deemed to be a part of, this Agreement; (iv) the terms “hereunder”, “hereof”, “hereto” and
words of similar import shall be deemed references to this Agreement as a whole and not to any

 

 

 

particular section or other provision hereof; (v) the words “include”, “includes” and “including”
shall be deemed to be followed by the words “without limitation”; and (vi) a reference to any
Article, Section, Subsection or Exhibit shall be deemed to refer to the corresponding Article,
Section, Subsection, or Exhibit of this Agreement.

ARTICLE II

PURCHASE AND SALE OF SHARES

Section 2.1 Purchase and Sale of Shares. At the Closing, the Company shall issue and sell
to the each Investor, and each Investor shall purchase from the Company, the number of Shares set
forth opposite the name of such Investor on Schedule 1, on the terms and subject to the conditions
set forth herein, free and clear of any Liens. The Shares shall be issued upon payment to the
Company by the Investors of the Purchase Consideration.

Section 2.2 The Closing. Subject to the fulfillment of the conditions set forth in Article
VI, the issuance, purchase and sale of the Shares and the consummation of the other Transactions
(the “Closing”) shall take place in the offices of Latham & Watkins, 41st Floor, One
Exchange Square, 8 Connaught Place, Central, Hong Kong on July 12, 2010, or at such other time and
place as the Company and the Investors may agree (the date on which the Closing actually takes
place being sometimes referred to herein as the “Closing Date”). At the Closing, the
Investors and the Company shall make certain deliveries, as specified in Sections 2.3 and 2.4,
respectively, and all such deliveries, regardless of chronological sequence, shall be deemed to
occur contemporaneously and simultaneously on the occurrence of the last delivery and none of such
deliveries shall be effective until the last of the same has occurred.

Section 2.3 Investors’ Deliveries at the Closing. At the Closing, the Investors shall
deliver to the Company:

(a) the Purchase Consideration, of which amount the aggregate par value of the Shares shall be
set off against amounts owed by the Company to the Investors under Section 8.2;

(b) a counterpart of the Registration Rights Agreement, duly executed by the Investors; and

(c) each of the certificates and documents required to be delivered by the Investors at the
Closing pursuant to Section 6.1.

Section 2.4 Company Deliveries at the Closing. At the Closing, the Company shall deliver
to the Investors:

(a) certificates representing the Shares registered in the names of the Investors;

(b) a counterpart of the Registration Rights Agreement, duly executed by the Company; and

 

2

 

(c) each of the opinions, certificates and documents required to be delivered by the Company
at the Closing pursuant to Section 6.2.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

The Company hereby represents and warrants to the Investors as of the date of this Agreement
and as of the Closing Date, as follows:

Section 3.1 Organization. The Company: (a) is an exempted company limited by shares duly
organized, validly existing and in good standing under the laws of the Cayman Islands; (b) has all
requisite corporate power and authority to carry on its business as now conducted; (c) is duly
qualified, licensed and in good standing under the laws of each jurisdiction where its ownership,
lease or operation of property or the conduct of its business requires such qualification, except
where the failure to do so would not reasonably be expected, individually or in the aggregate, to
have a Material Adverse Effect; and (d) has the corporate power and authority to execute, deliver
and perform its obligations under each of the Transaction Documents to which it is a party. The
Company is not in default under or in violation of any provision of its Memorandum of Association
or Articles of Association, and no such defaults or violations have occurred in the past which
would reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.

Section 3.2 Capitalization.

(a) As of the date hereof (and without giving any effect to the Transactions), the authorized
capital of the Company consists of 343,822,874 Class A Common Shares, 50,054,619 Class B Common
Shares, 373,248 Series B Preferred Shares, 0 Series C Preferred Shares and 605,749,259 shares not
yet designated as to class or series (the “Undesignated Shares”). Of the Class B Common
Shares, none are currently outstanding and the remainder are unissued and not reserved for issuance
for any purpose. Of the Series B Preferred Shares 359,424 shares are currently outstanding. None
of the Series C Preferred Shares have been issued or have been reserved for any purpose other than
for issuance pursuant to this Agreement. The issued and outstanding capital of the Company on a
fully diluted basis immediately prior to and immediately following the Closing is as set forth on
Section 3.2(a) of the Disclosure Schedule, as it may be amended pursuant to Section 5.10 of this
Agreement and Section 4.4(h) and/or Section 4.4(i) of the Authorizing Resolution.

(b) Section 3.2(b) of the Disclosure Schedule sets forth a list of all Employee Share Options
currently outstanding as of the date hereof. Except for such Employee Share Options or as
otherwise set forth in Section 3.2(b) of the Disclosure Schedule: (i) there are no outstanding
Convertible Securities, other than the Patriarch Loans and the Series B Preferred Shares, or Share
Purchase Rights or any share appreciation rights, performance share awards or other employee
incentive awards the value of which is determined by reference to the value of the Class A Common
Shares, Class B Common Shares, Series B Preferred Shares or ADS Shares, (ii) the Company is not a
party to any other agreements or commitments obligating the Company to issue, sell, repurchase,
redeem or otherwise acquire any Capital Shares, Convertible

 

3

 

Securities, other than pursuant to the
Series B Authorizing Resolution, this Agreement and the Patriarch Credit Agreement, or Share
Purchase Rights; and (iii) to the knowledge of the Company, no other Person is a party to or
otherwise bound by any agreements, trusts, proxies, instruments or other commitments relating to
the voting, purchase, sale or other disposition of any Capital Shares, Convertible Securities or
Share Purchase Rights held by such Person. Except as disclosed in Section 3.2(b) of the Disclosure
Schedule, neither the issuance of the Shares as contemplated herein nor the issuance of any
Conversion Shares will cause the number of Common Shares issuable pursuant to the Employee Share
Options or any other outstanding Convertible Securities or Share Purchase Rights to increase as a
result of any antidilution provisions relating thereto.

(c) There are no authorized or outstanding bonds, debentures, notes or other obligations of
the Company, the holders of which have the right to vote with the holders of Common Shares on any
matter.

(d) Except as disclosed in the SEC Reports or Section 3.2(d) of the Disclosure Schedule, the
Company does not have in effect any dividend reinvestment plans or employee share purchase plans.

(e) All outstanding Capital Shares have been duly authorized and validly issued and are
fully-paid and nonassessable and have been issued without violation of any preemptive rights of any
Person. All outstanding Employee Share Options have been issued without violation of any
preemptive rights of any Person, and all Class A Common Shares issued upon exercise thereof will
have been, upon such issuance, duly authorized and validly issued without violation of any
preemptive rights of any Person and will be fully-paid and nonassessable.

(f) Upon the due issuance by the Depositary to the Investors of ADRs evidencing the ADS Shares
against the deposit of Class A Common Shares in accordance with the provisions of the Deposit
Agreement, such ADRs will be duly and validly issued under the Deposit Agreement and the Investors
will be entitled to the rights of a registered holder of ADRs evidencing the ADS Shares specified
therein and in the Deposit Agreement. The Deposit Agreement is in full force and effect, has been
duly authorized, executed and delivered by the Company and, to the knowledge of the Company, the
Depositary, and constitutes a valid and legally binding obligation of the Company and, to the
knowledge of the Company, the Depositary, enforceable against the Company and (to the knowledge of
the Company) the Depositary in accordance with its terms. The Company has not breached any of its
material obligations under the Deposit Agreement, and, to the knowledge of the Company, the
Depositary has not breached any of its material obligations under the Deposit Agreement. The Company has
not received any notice of resignation or termination from the Depositary.

Section 3.3 Authorization; Execution and Enforceability.

(a) The Company has all requisite corporate power and authority to execute, deliver and
perform each Transaction Document to which it is a party and to consummate each of the
Transactions. The execution, delivery and performance of each Transaction Document to which the
Company is a party and the consummation of each of the Transactions has been duly

 

4

 

authorized by the
Board and by its Audit Committee and no further corporate action on the part of the Company
(including any action by the shareholders of the Company) is required in connection therewith.

(b) This Agreement has been duly executed and delivered by the Company and constitutes, and,
upon execution and delivery thereof as contemplated herein, each other Transaction Document to
which the Company is a party will have been duly executed and delivered by the Company and will
constitute, a legal, valid and binding obligation of the Company enforceable against it in
accordance with its terms, subject to the effect of any applicable bankruptcy, reorganization,
insolvency, moratorium, restructuring or similar laws affecting creditors’ rights and remedies
generally and general equitable principles (regardless of whether enforceability is considered a
proceeding in equity or at law) (“Enforceability Exceptions”).

Section 3.4 Subsidiaries and Joint Ventures.

(a) All material Subsidiaries of the Company are described in the SEC Reports or in Section
3.4(a) of the Disclosure Schedule. Except as disclosed in the SEC Reports or in Section 3.4(a) of
the Disclosure Schedule: (i) all of the outstanding shares or registered capital or other equity
capital in each of such Subsidiaries are duly authorized, validly issued, fully paid and
nonassessable; (ii) all of the outstanding shares or registered capital of, or other ownership
interest in each of such Subsidiaries are owned by the Company or a wholly-owned Subsidiary of the
Company, free and clear of any Liens; and (iii) there are no outstanding subscriptions, rights,
convertible securities or other agreements or commitments obligating the Company or any such
Subsidiary to issue, transfer or sell any securities of any such Subsidiary.

(b) Except as described in the SEC Reports or in Section 3.4(b) of the Disclosure Schedule,
neither the Company nor any of its Subsidiaries owns, of record or beneficially, any material
direct or indirect equity or other interest in any other Entity.

Section 3.5 No Conflicts; Consents and Approvals.

(a) The execution, delivery or performance by the Company of the Transaction Documents to
which it is a party and the consummation of the Transactions will not (a) conflict with or violate
any provision of the Memorandum of Association or Articles of Association of the Company or any
Organizational Document of any of its Subsidiaries; (b) result in a breach of, constitute (with or
without due notice or lapse of time or both) a default under, result in the acceleration of, create
in any Person any right to accelerate, terminate, modify or cancel, or require any notice, consent or waiver under, any Contractual Obligation
or any Law applicable to the Company or any of its Subsidiaries or any of their respective
properties and assets; (c) result in the imposition of any Lien upon any properties or assets of
the Company or any of its Subsidiaries, (d) result in the Company being required to redeem,
repurchase or otherwise acquire any outstanding equity or debt interests, securities or obligations
of the Company or any of its Subsidiaries or any options or other rights exercisable for any of
same or (e) cause the accelerated vesting of any Employee Share Options or other employee benefits
or result in any obligations on the part of the Company or any of its Subsidiaries to pay any
additional severance benefits upon the termination of the employment of any employee

 

5

 

thereof,
except in the case of (b) or (c), to the extent it does not or would not reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect.

(b) Except as set forth in Section 3.5(b) of the Disclosure Schedule, the Company is not
required to obtain any consent, authorization or approval of, or make any filing, notification or
registration with, any Governmental Authority or any self regulatory organization in order for the
Company to execute, deliver and perform any Transaction Document to which it is a party or to
consummate any of the Transactions (“Company Approvals”).

(c) Except as set forth in Section 3.5(c) of the Disclosure Schedule, no Contractual Consents
are required to be obtained under any Contractual Obligation applicable to the Company or any of
its Subsidiaries in connection with the execution, delivery or performance by the Company of any
Transaction Document to which it is a party or the consummation of any of the Transactions
(“Company Contractual Consents”).

Section 3.6 SEC Reports; Financial Statements.

(a) Except as set forth on Schedule 3.6(a) of the Disclosure Schedule, from January 1, 2009,
the Company has timely filed all reports, schedules, forms, statements and other documents required
to be filed by it with the SEC pursuant to the reporting requirements of the Exchange Act (all the
foregoing filed prior to the date hereof and all exhibits included or incorporated by reference
therein and financial statements and schedules thereto and documents included or incorporated by
reference therein being sometimes hereinafter collectively referred to as the “SEC
Reports”). As of their respective filing dates, the SEC Reports complied in all material
respects with the requirements of the Exchange Act applicable to the SEC Reports (as amended or
supplemented), and none of the SEC Reports, at the time they were filed with the SEC, contained any
untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in light of the circumstances under
which they were made, not misleading.

(b) As of their respective dates, except as set forth therein or in the notes thereto, the
financial statements contained in the SEC Reports and the related notes (the “Financial
Statements”) complied as to form in all material respects with all applicable accounting
requirements and the published rules and regulations of the SEC with respect thereto. The
Financial Statements: (i) were prepared in accordance with accounting principles generally
accepted in the United States (“GAAP”), consistently applied during the periods involved
(except (x) as may be otherwise indicated in the notes thereto or (y) in the case of unaudited
interim statements, to the extent that they may not include footnotes or may be condensed or
summary statements), (ii) fairly present in all material respects the consolidated financial
position of the Company and its consolidated subsidiaries as of the dates thereof and the
consolidated results of their operations and cash flows for the periods then ended (subject, in the
case of unaudited statements, to normal year-end audit adjustments) and (iii) are in all material
respects in accordance with the books of account and records of the Company and its consolidated
subsidiaries (except as may be otherwise noted therein).

Section 3.7 Absence of Certain Changes. Except as disclosed in the SEC Reports or in
Section 3.7 of the Disclosure Schedule, since December 31, 2009, (a) there has not

 

6

 

been any
Material Adverse Effect or any changes, events or developments that would reasonably be expected,
individually or in the aggregate, to have a Material Adverse Effect, and (b) the Company and its
Subsidiaries, taken as a whole, have conducted their respective businesses only in the ordinary
course and in conformity with past practice.

Section 3.8 No Undisclosed Liabilities. Except as disclosed in the SEC Reports or in
Section 3.8 of the Disclosure Schedule, neither the Company nor any of its Subsidiaries has any
material liability (whether known or unknown, whether absolute or contingent, whether liquidated or
unliquidated, whether due or to become due), except for the following: (a) liabilities reflected
in or reserved for in the Recent Balance Sheet, (b) liabilities that have arisen since the date of
the Recent Balance Sheet in the ordinary course of the businesses of the Company and its
Subsidiaries consistent with past practice that would have been required under GAAP to be reflected
in the Recent Balance Sheet had such liabilities existed as of the date of the Recent Balance
Sheet, (c) liabilities that would not be required under GAAP to be reflected in an audited
consolidated balance sheet of the Company and its consolidated subsidiaries and that are not in the
aggregate material and (d) liabilities incurred in connection with the Transactions.

Section 3.9 Litigation. Except as disclosed in the SEC Reports or in Section 3.9 of the
Disclosure Schedule, there is no Action or Proceeding to which the Company or any of its
Subsidiaries or any of their respective officers, directors or employees is a party (either as a
plaintiff or defendant) pending or, to the knowledge of the Company, threatened before any
Governmental Authority (i) that challenges the validity or propriety of any of the Transactions or
(ii) if determined adversely to the Company or any of its Subsidiaries or any such officer,
director or employee would reasonably be expected, individually or in the aggregate, to have a
Material Adverse Effect. Except as disclosed in the SEC Reports or as would not reasonably be
expected, individually or in the aggregate, to have a Material Adverse Effect, there has not been,
and to the knowledge of the Company, there is not pending or contemplated, any investigation by any
Governmental Authority involving the Company or any of its Subsidiaries or any officer, director,
employee thereof. Except as disclosed in the SEC Reports, no order, judgment or decree of any
Governmental Authority has been issued in any Action or Proceeding to which the Company or any of
its Subsidiaries is or was a party or, to the knowledge of the Company, in any other
Action or Proceeding except as would not reasonably be expected, individually or in the aggregate,
to have a Material Adverse Effect.

Section 3.10 Licenses. Except as disclosed in the SEC Reports or in Section 3.10 of the
Disclosure Schedule and except as would not be reasonably expected to have a Material Adverse
Effect, all material Licenses required to be obtained by the Company or any of its Subsidiaries in
all relevant jurisdictions in order to own their respective assets and to operate their respective
businesses have been duly obtained in accordance with all applicable Laws. None of such Licenses
has been terminated and, in respect of any such Licenses that is subject to renewal, the Company
has not received any notice that such renewal will not be timely granted by the relevant Government
Authorities. The Company and each of its Subsidiaries are in compliance with the terms of such
Licenses, except where the failure to so comply does not or would not reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect. Neither the execution, delivery
or performance by the Company of any Transaction Document to which it is a party nor the
consummation of any of the Transactions will result in a

 

7

 

breach of, or constitute a default under,
any such License. Except as disclosed in Section 3.10 of the Disclosure Schedule, neither the
Company nor any of its Subsidiaries is, or has received any notice that it is, or has at any time
been, in default (or with the giving of notice or lapse of time or both, would be in default) under
any such License.

Section 3.11 Intellectual Property Rights. Except as would not reasonably be expected to
have a Material Adverse Effect, the Company and the Subsidiaries own or possess, or will be able to
obtain on reasonable terms, licenses or sufficient rights to use all patents, patent applications,
patent rights, inventions, know-how, trade secrets, trademarks, trademark applications, service
marks, service names, trade names and copyrights necessary to enable them to conduct their
businesses as currently conducted (“Intellectual Property”). Neither the Company nor any
of the Subsidiaries has infringed the intellectual property rights of third parties, and no third
party, to the knowledge of the Company, is infringing the Intellectual Property of the Company, in
each case, where such infringement would reasonably be expected, individually or in the aggregate,
to result in a Material Adverse Effect. There is no material claim or proceeding pending or, to
the knowledge of the Company, threatened that challenges the right of the Company or any of the
Subsidiaries with respect to any of the Intellectual Property.

Section 3.12 Exchange Listing. Except as set forth in Section 3.12 of the Disclosure
Schedule, (i) the ADS Shares are listed on the NASDAQ Global Market and, to the knowledge of the
Company, there are no proceedings to revoke or suspend such listing; (ii) the Company is in
compliance with the requirements of the NASDAQ Global Market for continued listing of the ADS
Shares thereon and any other applicable NASDAQ Global Market listing and maintenance requirements;
and (iii) trading in the ADS Shares has not been suspended by the SEC or the NASDAQ Global Market.

Section 3.13 Tax Matters. Except as disclosed in the SEC Reports or in Section 3.13 of the Disclosure Schedule or except
as would not reasonably be expected, individually or in the aggregate, to have a Material Adverse
Effect: (i) the Company and each of its Subsidiaries have filed all material Tax Returns required
to be filed by them; (ii) all such material Tax Returns are true, correct and complete in all
material respects; (iii) all material Taxes due and owed by the Company and its Subsidiaries
(whether or not shown on any Tax Return) have been paid; (iv) neither the Company nor any of its
Subsidiaries currently is the beneficiary of any extension of time within which to file any
material Tax Return; (v) no claim has ever been made by a Governmental Authority in a jurisdiction
where the Company or any of its Subsidiaries does not file Tax Returns that the Company or any such
Subsidiary is or may be subject to taxation by that jurisdiction; (vi) there are no Liens on any of
the assets or properties of the Company or any of its Subsidiaries that arose in connection with
any failure (or alleged failure) to pay any Tax; and (vii) neither the Company nor any of its
Subsidiaries has waived any statute of limitations in respect of Taxes or agreed to any extension
of time with respect to a Tax assessment or deficiency.

Section 3.14 Tangible Assets. Except as disclosed in the SEC Reports or in Section 3.14 of
the Disclosure Schedule or except as would not reasonably be expected, individually or in the
aggregate, to have a Material Adverse Effect, the Company and each of its Subsidiaries have good
and marketable title to, or have valid rights to lease or otherwise use, all items of real and
tangible personal property that are material to their respective businesses, free

 

8

 

and clear of all
Liens other than Liens (i) that do not materially interfere with the use of such property or (ii)
would not reasonably be expected, individually or in the aggregate, to have a Material Adverse
Effect.

Section 3.15 Leases and Contracts. (a) Except as disclosed in the SEC Reports or in
Section 3.15(a) of the Disclosure Schedule, neither the Company nor any of its Subsidiaries is a
party to or bound by any material Company Contract. (b) Except as disclosed in the SEC Reports or
in such Section 3.15(b) or except as would not reasonably be expected, individually or in the
aggregate, to have a Material Adverse Effect: (i) each Company Contract is in full force and
effect; (ii) the Company and its Subsidiaries have satisfied in full or provided for all of their
liabilities and obligations under each such Company Contract requiring performance prior to the
date hereof in all material respects, and are not in default under any of them, nor, to the
knowledge of the Company, does any condition exist that with notice or lapse of time or both would
constitute such a default; (iii) to the knowledge of the Company, no other party to any such
Company Contract is in default thereunder, nor does any condition exist that with notice or lapse
of time or both would constitute such a default; and (iv) no approval or consent of any Person is
needed for each such Company Contract to continue to be in full force and effect following the
consummation of the Transactions.

Section 3.16 Employees. Except as disclosed in the SEC Reports or in Section 3.16 of the
Disclosure Schedule or except as would not reasonably be expected, individually or in the
aggregate, to have a Material Adverse Effect, to the knowledge of the Company, no officer or key
employee of the Company
or any of its Subsidiaries, or any group of employees whose continued employment is material to the
operations of the Company or any of its Subsidiaries, intends to terminate their employment with
the Company and there are no material controversies between the Company and any of its officers or
key employees.

Section 3.17 Compliance with Law. Except as disclosed in the SEC Reports or in Section
3.17 of the Disclosure Schedule or except as would not reasonably be expected, individually or in
the aggregate, to have a Material Adverse Effect, the Company and each of its Subsidiaries and the
conduct and operation of their respective businesses are and have been, since January 1, 2007, in
material compliance with (a) each Law that affects or relates to this Agreement or the Transaction
Documents or any of the Transactions or (b) each Law that is applicable to the Company or its
Subsidiaries or their respective businesses, including any environmental and securities Laws and
Laws relating to employment practices.

Section 3.18 Related Party Transactions. Except as would not reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect, all Company Contracts, and any
other material relationships, between the Company or any Subsidiary (each, a “Company
Party”), on the one hand, and any Related Person of a Company Party, on the other hand, and all
obligations owed by a Company Party to any Related Person of the Company Party (other than
obligations owed by one Company Party to another), are disclosed in the SEC Reports or in Section
3.18 of the Disclosure Schedule.

Section 3.19 Investment Company. The Company is not, and after giving effect to the
Transactions will not be, an “investment company” as such term is defined in the Investment Company
Act of 1940, as amended.

 

9

 

Section 3.20 Corrupt Practices; USA Patriot Act, OFAC. Neither the Company nor any
Subsidiary, nor to the knowledge of the Company any director, officer, employee, agent or other
Person acting on behalf of the Company or any Subsidiary has, in the course of his or its actions
for, or on behalf of the Company or any of its Subsidiaries (i) used any corporate funds for any
unlawful contribution gift, entertainment or other unlawful expense relating to political activity;
(ii) made any direct or indirect unlawful payment to any foreign or domestic government official or
employees from corporate funds; (iii) violated or is in violation of any provision of the U.S.
Foreign Corrupt Practices Act of 1977, as amended, or (iv) made any unlawful bribe, rebate, payoff,
influence payment, kickback or other unlawful payment to any foreign or domestic government
official or employee. The Company and each of its Subsidiaries is in compliance in all material
respects with the USA Patriot Act (Title III of Pub.L. 107-56 (signed into law October 26, 2001)).
None of the Company or its Subsidiaries (i) is a Sanctioned Person, (ii) has more than 10% of its
assets in Sanctioned Entities, or (iii) derives more than 10% of its operating income from
investments in, or transactions with Sanctioned Persons or Sanctioned Entities. The proceeds
hereunder will not be used and have not been used
to fund any operations in, finance any investments or activities in, or make any payments to, a
Sanctioned Person or a Sanctioned Entity.

Section 3.21 Validity of the Shares.

(a) Upon the issuance to the Investors in accordance with the Transaction Documents, the
Shares will have been duly authorized and validly issued without violation of the preemptive rights
of any Person and will be fully-paid and nonassessable, free and clear of any Liens.

(b) Any Conversion Shares issued upon conversion of any of the Shares, upon the issuance
thereof, will have been duly authorized and validly issued without violation of the preemptive
rights of any Person and will be fully-paid and nonassessable, free and clear of any Liens.

Section 3.22 Registration, Information and Special Voting Rights. Except as disclosed in
the SEC Reports or in Section 3.22 of the Disclosure Schedule and except as provided in the Series
B Purchase Agreement, the Series B Registration Rights Agreement and the Patriarch Investor Rights
Agreements, the Company has not granted or agreed to grant any registration rights, information
rights or special voting rights to any Person.

Section 3.23 Securities Law Compliance. Assuming the accuracy of the Investors’
representations and warranties contained in Article IV, the offer, sale and issuance of the Shares
hereunder and the issuance of any Conversion Shares upon the conversion thereof is and will be in
compliance with Section 4(2) of the Securities Act and is exempt from the registration and
prospectus delivery requirements of the Securities Act and all applicable state and foreign
securities laws. Neither the Company nor any agent of the Company has offered the Shares by any
form of general solicitation or general advertising, including any advertisement, article, notice
or other communication published in any newspaper, magazine or similar media or broadcast over
television or radio or any seminar or meeting whose attendees have been invited by any general
solicitation or general advertising.

 

10

 

Section 3.24 Brokers. No broker, investment banker or other Person is entitled to any
broker’s, finder’s or other similar fee or commission in connection with the execution and delivery
of this Agreement or any of the other Transaction Documents or the consummation of any of the
Transactions based upon arrangements made by or on behalf of the Company.

Section 3.25 Tag-Along Rights. The Class A Common Shares to be held by any Investor as a
result of the conversion of the Shares pursuant to the Authorizing Resolution shall constitute
“Common Shares” (as such term is defined in the 2008 IRRA) owned by such Investor for purposes of
Section 3.02(b) of the 2008 IRRA.

Section 3.26 Change of Control. The Transactions will not constitute a “Change of Control”
(as such term is defined in the Series B Authorizing Resolution) for purposes of the Series B
Authorizing Resolution.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE INVESTORS

Each Investor hereby represents and warrants to the Company as of the date of this Agreement
and as of the Closing Date as follows:

Section 4.1 Organization, Standing and Power. The Investor is an exempted company duly
organized, validly existing and in good standing under the laws of the Cayman Islands. The
Investor has the necessary power and authority to execute, deliver and perform each Transaction
Document to which it is a party.

Section 4.2 Authorization; Execution and Investors. The execution, delivery and
performance by the Investor of each Transaction Document to which it is a party have been duly and
validly authorized by all necessary corporate action on the part of the Investor and do not require
any further authorization or consent of the shareholders of the Investor. This Agreement has been
duly executed and delivered by the Investor, and each other Transaction Document to which the
Investor is a party, when executed and delivered as contemplated herein, will have been duly
executed and delivered by the Investor, and this Agreement constitutes, and each of such other
Transaction Documents upon execution and delivery thereof by the Investor will constitute, the
legal, valid and binding obligations of the Investor, enforceable against the Investor in
accordance with their respective terms, subject to the Enforceability Exceptions.

Section 4.3 No Conflict; Consents and Approvals.

(a) Neither the execution, delivery or performance by the Investor of any Transaction Document
to which it is a party, nor the consummation by the Investor of any of the Transactions will (i)
conflict with or violate any provision of any Organizational Document of the Investor or (ii)
result in a breach of, constitute (with or without due notice or lapse of time or both) a default
under, result in the acceleration of, create in any Person any right to accelerate, terminate,
modify or cancel, or require any notice, consent or waiver under, any Contractual Obligation or any
Law applicable to the Investor or any of its properties or assets other than a breach, default,
acceleration, right, notice, consent or waiver that is not material.

 

11

 

(b) The Investor is not required to obtain any consent, authorization or approval of, or make
any filing or registration with, any Governmental Authority in order for the Investor to execute,
deliver and perform each Transaction Document to which it is a party and to consummate the
Transactions.

Section 4.4 Purchase Entirely for Own Account. The Shares and Conversion Shares to be acquired by the Investor hereunder will be acquired for
investment for the Investor’s own account, not as nominee or agent, and not with a view to the
resale or distribution of any part thereof in violation of the Securities Act, and the Investor has
no present intention of selling, granting any participation in, or otherwise distributing the same
in violation of the Securities Act. The Investor does not have any agreement or understanding,
whether or not legally binding, direct or indirect, with any other Person to sell or otherwise
distribute the Shares.

Section 4.5 Investment Experience. The Investor acknowledges that it can bear the economic
risk and complete loss of its investment in the Shares and has such knowledge and experience in
financial or business matters that it is capable of evaluating the merits and risks of the
investment contemplated hereby. The Investor understands that the purchase of the Shares involves
substantial risk.

Section 4.6 Restricted Securities. The Investor understands that the Shares and any
Conversion Shares issued to the Investor will be characterized as “restricted securities” under the
United States federal securities laws inasmuch as they are being acquired from the Company in a
transaction not involving a public offering and that under such laws and applicable regulations
such securities may be resold without registration under the Securities Act only in certain limited
circumstances. The Investor understands that no United States federal or state agency or any other
government or governmental agency has passed on or made any recommendation or endorsement of the
Shares or the fairness or suitability of the investment in the Shares.

Section 4.7 Legends. The Investor understands that, except as provided below and until
such time as the resale thereof has been registered under the Securities Act, certificates
evidencing the Shares and Conversion Shares issued to the Investor shall bear the following
legends:

(a) “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD,
TRANSFERRED, ASSIGNED, PLEDGED, OFFERED FOR SALE, OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR IF REQUIRED
BY THE COMPANY AN OPINION FROM COUNSEL IN A FORM ACCEPTABLE TO THE COMPANY AND ITS LEGAL COUNSEL
STATING THAT SUCH REGISTRATION IS NOT REQUIRED.”

(b) If required under the securities laws of any U.S. state or foreign country in connection
with the issuance or sale of the Shares and Conversion Shares issued to the Investor, any legends
required in order to comply with such laws.

 

12

 

Section 4.8 Accredited Investor. The Investor is an “accredited Investor” as defined in Rule 501(a) of Regulation D, as
amended, under the Securities Act. The Investor’s principal place of business is in the Cayman
Islands.

Section 4.9 No General Solicitation. The Investor did not learn of the opportunity to
purchase the Shares by means of any form of general or public solicitation or general advertising,
or publicly disseminated advertisements or sales literature, including (i) any advertisement,
article, notice or other communication published in any newspaper, magazine, or similar media, or
broadcast over television or radio, or (ii) any seminar or meeting to which the Investor was
invited by any of the foregoing means of communications.

Section 4.10 Brokers. Except as heretofore been disclosed to the Company by the Investor,
no broker, investment banker or other Person is entitled to any broker’s, finder’s or other similar
fee or commission in connection with the execution an delivery of this Agreement or the
Registration Rights Agreement or the consummation of any of the Transactions based upon
arrangements made by or on behalf of the Investor, and the Investor shall indemnify and hold the
Company harmless against any claim for any such fee or commission based on any such arrangements.

ARTICLE V

COVENANTS

Section 5.1 Access to Information.

(a) In General. The Company shall at all times afford the officers, employees and
authorized representatives of the Investors (including independent public accountants and
attorneys) reasonable access during normal business hours to the offices, properties, employees and
business and financial records (including computer files, retrieval programs and similar
documentation) of the Company and its Subsidiaries, all to the extent reasonably requested by the
Investors. The Investors agree that any such investigation shall be conducted in such a manner as
not to interfere unreasonably with the operations of the Company and its Subsidiaries.

(b) Financial and Other Information. If the Company at any time ceases to timely file
periodic reports pursuant to Section 13 of the Exchange Act, the Company shall deliver to the
Investors each of the following:

	 	(i)	 	As soon as available, and in any event within sixty (60) days
after the end of each of the first three quarters of each fiscal year,
unaudited interim consolidated balance sheets of the Company and its
Subsidiaries as at the end of such quarter and the related consolidated
statements of income, cash flow, shareholders equity and changes in financial
position of the Company and its Subsidiaries as at the end of and for such
quarter, setting forth in each case in comparative form the corresponding
figures for and as at the end of the corresponding quarter of the preceding
fiscal year, all in reasonable detail and prepared in accordance with GAAP consistently
applied (subject to year end adjustments and the absence of footnotes);

 

13

 

	 	(ii)	 	Within one hundred and twenty (120) days after the end of each
fiscal year of the Company, consolidated balance sheets of the Company and its
Subsidiaries as at the end of such year and the related consolidated statements
of income, shareholders’ equity and changes in financial position of the
Company and its Subsidiaries for such fiscal year, setting forth in each case
in comparative form the consolidated figures for the previous fiscal year, all
in reasonable detail and accompanied by a report thereon of independent public
accountants of recognized national standing selected by the Company; and

	 	(iii)	 	Promptly upon their becoming available, copies of all
financial statements, reports, notices and proxy statements sent or made
available by the Company to the holders of any class of its securities
generally or by any Subsidiary of the Company to the holders of any class of
its securities generally.

(c) Other Information Upon Request. The Company shall furnish to the Investors with
reasonable promptness such other information relating to the Company and its Subsidiaries as the
Investors may from time to time reasonably request; provided that the Company shall not be
obligated to furnish any information which (i) the Board believes could compromise any
attorney-client privilege or (ii) may cause the Company to breach a confidentiality obligation by
which it is bound.

Section 5.2 Pre-Closing Actions Affecting the Common Shares. Between the date of this
Agreement and the Closing Date, the Company shall not: (i) pay any dividends or make any
distributions on its Common Shares other than (A) regular cash dividends or distributions paid out
of retained earnings and (B) distributions permitted pursuant to clause (v) or below, (ii)
subdivide or reclassify its outstanding Common Shares into a greater number of shares, (iii)
consolidate or reclassify its outstanding Common Shares into a smaller number of shares; (iv) other
than in an “Exempt Issuance”, issue any “New Securities” for a consideration per share less than
the initial “Conversion Price” (with the terms in quotations having the meanings specified in the
Authorizing Resolution), (v) other than in such an “Exempt Issuance”, distribute to all holders of
its Common Shares any share capital of the Company or evidences of Indebtedness or rights, options
or warrants to subscribe for or purchase any of its securities or (vi) effect any transaction
referred to in Section 4.8 of the Authorizing Resolution.

Section 5.3 Listing. Neither the Company nor any of its Subsidiaries shall take any action
which would be reasonably expected to result in the delisting or suspension of the ADS Shares on
the NASDAQ Global Market and shall use commercially reasonable efforts to maintain the listing of
the ADS Shares on the NASDAQ Global Market, including without limitation, (a) exhausting all
available remedies, appeal reviews and other similar mechanisms and procedures provided for under
the rules and regulations of the NASDAQ Global Market to permit such continued listing of the ADS
Shares and (b) (i) delivering to The Nasdaq Stock Market, Inc. promptly after Closing Date of a
notice and opinion of Cayman Islands counsel to the Company that the Company has elected to follow
corporate governance practices in the Cayman Islands allowing issuance of the Shares without
receipt of shareholder approval

 

14

 

otherwise required pursuant to Rule 5635(d) of the Nasdaq Listing
Rules and (ii) disclosing such election in the Company’s next filed annual report on Form 20-F.

Section 5.4 Preservation of Accuracy of Representations and Warranties; Fulfillment of
Conditions; Notification of Certain Pre-Closing Matters; Cooperation.

(a) The Company and the Investors shall each refrain from taking any action which would render
any representation or warranty contained in Article III or IV inaccurate in any material respect as
of the Closing Date. Each Party shall promptly notify the other of (i) any event or matter that
would reasonably be expected to cause any of its representations or warranties to be untrue in any
material respect or (ii) any Action or Proceeding that shall be instituted or threatened against
such Party to restrain, prohibit or otherwise challenge the legality of any of the Transactions.

(b) The Company and the Investors shall each use their respective reasonable best efforts to
cause each of the conditions precedent set forth in Article VI to be satisfied as soon as
practicable after the date hereof. Without limiting the generality of the foregoing, the Company
shall cause the Authorizing Resolution to be duly adopted by the Board prior to the Upset Date.

(c) Between the date hereof and the Closing Date, the Company shall notify the Investors of
(i) the occurrence of any Material Adverse Effect, (ii) any Action or Proceeding that is
threatened, brought, asserted or commenced against the Company or any of its Subsidiaries or any of
their respective officers, directors or employees which would have been required to be disclosed in
the Disclosure Schedule with respect to the representations and warranties of the Company set forth
in Section 3.9 if such Action or Proceeding had arisen prior to the date hereof, (iii) any notice
or other communication from any third party alleging that the consent of such third party is or may
be required in connection with the Transactions, (iv) any material default of which the Company
becomes aware under any material Company Contract or any event which, with notice or lapse of time
or both, would become such a default on or prior to the Closing Date; and (v) any notice from any
Governmental Authority in connection with or relating to any of the Transactions.

(d) The Company and the Investors shall cooperate fully with each other and assist each other
in defending any Action or Proceeding brought against either Party challenging this Agreement or
any of the other Transaction Documents or the consummation of any of the Transactions, including
seeking to have any stay or temporary restraining order entered by any court or other Governmental
Authority vacated or reversed.

Section 5.5 Contractual Consents and Governmental Approvals.

(a) The Company will use commercially reasonable efforts to obtain before the Closing Date,
and the Investors shall reasonably cooperate with the Company in such efforts, the Company
Contractual Consents set forth in Section 3.5(c) of the Disclosure Schedule, provided that
neither the Company nor the Investors shall have any obligation to offer or pay any consideration
in order to obtain any such Company Contractual Consent.

 

15

 

(b) Between the date hereof and the Closing Date, the Company and the Investors shall use
commercially reasonable efforts, and shall cooperate with each other, in making any required
filing, registration or notification with, and in attempting to obtain the Company Approvals set
forth in Section 3.5(b) of the Disclosure Schedule in connection with the Transactions and to
otherwise satisfy the conditions set forth in Article VI.

Section 5.6 Issuance of ADS Shares. Upon the request of an Investor at any time, and
subject to applicable securities Laws and the provisions of the Deposit Agreement, the Company
shall arrange for any Conversion Shares issued or issuable to the Investors to be deposited with
the Depositary and for corresponding ADRs to be issued in the name of the Investor, and the Company
shall pay any fees or expense reimbursements required to be paid to the Depositary in connection
therewith.

Section 5.7 Investors’ Pre-Emptive Rights.

(a) If at any time the Company wishes to issue any Common Shares, other Capital Shares,
Convertible Securities or Share Purchase Rights (collectively, “New Securities”) to any
Person or Persons, each Investor shall have a preemptive right to purchase its Pro Rata Share (as
defined below), of any such New Securities. “Pro Rata Share” for purposes of this
preemptive right means that number of the New Securities equal to the product of (i) a fraction,
the numerator of which is the Investor’s aggregate ownership of Common Shares (calculated on an as
converted and fully-diluted basis) and the denominator of which is the number of the Company’s
total issued and outstanding Common Shares (calculated on an as converted and fully-diluted basis),
multiplied by (ii) the number of New Securities to be issued. The Company will not issue any New
Securities without first offering each Investor its preemptive right described in this Section 5.7.

(b) In the event that the Company proposes to issue New Securities, it may give each Investor
a written notice of its intention to issue New Securities (the “Issuance Notice”),
describing the approximate number and type of New Securities, the terms of such New Securities, the
estimated pricing date, the estimated price range (as may be modified in accordance with the
provisions hereof, the “Estimated Price Range”) and the other terms upon which the Company
proposes to issue and sell such New Securities. Any such Issuance Notice shall be delivered to
each Investor not less than ten (10) Business Days prior to the pricing (the “Pricing”) of
such New Securities. If the estimated pricing date or the Estimated Price Range shall change, the
Company shall promptly notify the Investors prior to the Pricing, provided that in the
event of any change in the Estimated Price Range, each Investor shall be entitled to revoke any
agreement to purchase that it may have delivered as set forth in the following sentence.
Following receipt of an Issuance Notice as set forth in the first two sentences of this
paragraph, each Investor shall have the right, by giving written notice to the Company at least
three (3) days prior to the Pricing, to either (x) agree to purchase up to its Pro Rata Share of
such New Securities within the Estimated Price Range and upon the general terms specified in the
Issuance Notice (which shall not exceed the Investor’s Pro Rata Share) or (y) waive its right to so
purchase up to its Pro Rata Share of such New Securities. If, following receipt of an Issuance
Notice as set forth in the first two sentences of this paragraph, an Investor fails to agree in
writing at least three days prior to the Pricing to purchase the Investor’s full Pro Rata Share of
such offering of New Securities, then (A) except as set forth in Section 5.7(c), the Investor shall

 

16

 

forfeit the right hereunder to purchase that part of its Pro Rata Share of such New Securities that
it did not so agree to purchase, and (B) the Company shall have sixty (60) calendar days thereafter
to sell the New Securities with respect to which the Investor’s preemptive right hereunder was not
exercised, at a price within or above the Estimated Price Range and upon general terms no more
favorable to the purchasers thereof than specified in the Company’s Issuance Notice to the
Investors. In the event that the Company has not issued and sold the New Securities within such
sixty (60) calendar day period, then the Company shall not thereafter issue or sell any New
Securities without again first offering such New Securities to the Investors pursuant to this
Section 5.7.

(c) In the event that the Company proposes to issue New Securities in a transaction in which
(i) it does not provide the Investors with the Issuance Notice and an opportunity for the Investors
to elect to purchase up to their Pro Rata Share of such New Securities during the period described
above, or (ii) it shall have notified (or been required to notify) the Investors, less than five
days prior to the Pricing, of any acceleration in the estimated pricing date, or a delay in the
estimated pricing date of more than ten (10) days, or a reduction of more than 10% in the Estimated
Price Range (and the Investors shall not have purchased New Securities in connection with such
transaction), then no later than five (5) days after the issuance of such New Securities, the
Company shall provide the Investors with a written notice of the issuance of such New Securities,
setting forth the price and other terms on which such New Securities were sold, and the Investors
shall have thirty (30) days from the date such notice is effective hereof based upon the manner or
method of notice, to deliver to the Company a written notice indicating its agreement to purchase
up to its Pro Rata Share of such New Securities at the same price and on the same terms and
conditions under which such New Securities were sold in such transaction, by giving written notice
to the Company and stating therein the quantity of New Securities to be purchased (not to exceed
the Investors’ Pro Rata Share), and upon receipt of such written notice from the Investors, the
Company shall be required to sell such quantity of the New Securities to the Investors.

(d) If the Investors gives the Company notice pursuant to Section 5.7(b) or Section 5.7(c)
that the Investors desires to purchase all or any of the New Securities it is entitled to purchase
(the “Elected New Securities”), payment therefor shall be made by wire transfer, against
issuance of such New Securities at the executive offices of the Company, on the date such
securities are issued to the Investors. In the event that the Issuance Notice specifies that
consideration other than cash is to be paid in connection with any issuance of New Securities, in
lieu of such other consideration, the Investors will be entitled to pay the cash equivalent of such
other consideration, as determined by an independent third-party appraiser jointly appointed by the
Company and the Investors.

(e) The preemptive rights contained in this Section 5.7 shall not apply to the issuance of any
of the following: (i) any PIK Dividend Shares (as defined in the Series B Purchase Agreement), (ii)
any Permitted Parity Preferred Shares with regard to which the Investors have not exercised such
preemptive rights or (iii) any New Securities issued (A) as a share dividend to holders of Common
Shares, Series B Preferred Shares, Series C Preferred Shares or Permitted Parity Preferred Shares
or upon any subdivision or combination of such Common Shares, Series B Preferred Shares, Series C
Preferred Shares or Permitted Parity Preferred Shares, (B) upon the conversion of any Series B
Preferred Shares, Series C Preferred

 

17

 

Shares or Permitted Parity Preferred Shares or upon the
conversion or exchange of any other Convertible Securities of the Company duly issued on or prior
to the date hereof that are convertible into or exchangeable for Common Shares (including any “Loan
Shares”, as defined in the Patriarch Credit Agreement), (C) upon the exercise of any Share Purchase
Rights issued prior to the date hereof (D) to employees, officers or directors of the Company or
any Subsidiary pursuant to incentive agreements, share purchase or share option plans, share
bonuses or awards, or employment or advisory related warrants, contracts or other arrangements
approved by the Board prior to or following the date hereof or (E) in connection with any direct or
indirect acquisition by the Company of, or a merger with and into the Company of, another Person or
business approved by the Board prior to or following the date hereof.

Section 5.8 Shelf Registration Statement.

(a) Filing. The Company shall file with the SEC, within 45 days after the Closing
Date, a Shelf Registration Statement covering the resale from time to time of Registrable
Securities by Registrable Securities Holders (such Shelf Registration Statement may also from time
to time cover the resale of any Parity Registrable Securities held by any holders of Parity
Registrable Securities) in accordance with the methods or distribution selected by such holders and
shall use its reasonable best efforts to cause such Shelf Registration Statement to be declared
effective under the Securities Act as soon as practicable after such filing.

(b) Continued Effectiveness. Subject to Section 5.8(c), the Company shall use its
reasonable best efforts to have the Shelf Registration Statement declared effective within 120 days
after the Closing Date. The Company shall thereafter use its reasonable best efforts to prepare
and file with the SEC such amendments and supplements to the Shelf Registration Statement and the
Prospectus as may be necessary to keep the Shelf Registration Statement current and continuously
effective in order to permit the Prospectus forming a part thereof to be usable by the Registrable
Securities Holders for the offer and sale of Registrable Securities until the earlier of (x) the
fifth anniversary of the date hereof and (y) the date as of which such Registrable Securities
Holders no longer hold any Registrable Securities.

(c) Suspension of Use of Shelf Registration Statement. The Company may suspend the
use of the Shelf Registration Statement by the Registrable Securities Holders (and any holders of
Parity Registrable Securities) if the Company furnishes to such holders a certificate signed by the
Chief Executive Officer, Chief Financial Officer or General Counsel of the Company (x) stating that
a Potential Material Event exists (and enclosing a copy of the written determination of the Board
referred to in the definition of Potential Material Event) or (y) stating that a Company-initiated
registration statement for an underwritten offering of Equity Securities has become effective, in
which event the Company shall have the right to suspend such use for a
period of not more than 90 calendar days after the date of such certificate (a “Shelf
Suspension”), provided that the Company shall not exercise a Shelf Suspension more than
twice in any 12-month period with at least a 60 calendar day interval between each Shelf
Suspension. In the event of any Shelf Suspension, no Registrable Securities Holder (or Parity
Registrable Securities Holder) may offer or sell any Registrable Securities (or Parity Registrable
Securities) pursuant to the Shelf Registration Statement during the period of the applicable Shelf
Suspension.

 

18

 

(d) Expenses of Registration. All Registration Expenses incurred in connection with
any registration, filing, qualification or compliance pursuant to this Section 5.8 shall be borne
by the Company. Unless otherwise stated, all Selling Expenses relating to any Registrable
Securities and/or Parity Registrable Securities offered pursuant to the Shelf Registration
Statement filed pursuant to this Section 5.8 shall be borne by the applicable Selling Holders pro
rata based on the respective numbers of Registrable Securities and/or Parity Registrable Securities
registered by them.

(e) Further Obligations of the Company. Whenever the Company effects the registration
of any Registrable Securities pursuant to this Section 5.8, the Company shall:

	 	(i)	 	Registration of ADS. If the Selling Holders propose to
sell Registrable Securities and/or Parity Registrable Securities in the form of
ADS Shares, the Company shall, if and to the extent necessary, register
additional ADS Shares on Form F-6, to permit the sale of such Registrable
Securities and/or Parity Registrable Securities as ADS Shares.

	 	(ii)	 	Copies of Documents. Furnish to each Selling Holder,
without charge, such number of conformed copies of the Shelf Registration
Statement and of any amendments and supplements thereto (in each case including
all exhibits), such number of copies of the Prospectus included in such Shelf
Registration Statement (including each preliminary prospectus and any summary
prospectus), in conformity with the requirements of the Securities Act, such
documents incorporated by reference in such Shelf Registration Statement or
Prospectus, and such other documents, as such Selling Holders may reasonably
request.

	 	(iii)	 	Opinion and Comfort Letter. Furnish to such Selling
Holders (i) an opinion of the counsel representing the Company for purposes of
such registration, dated the effective date of such Shelf Registration
Statement (or, in the case of any underwritten public offering pursuant to the
Shelf Registration Statement, dated the date of the closing under the
underwriting agreement with respect to both the effective date of the Shelf
Registration Statement and the date of the closing under the underwriting
agreement), in form and substance as is customarily given by counsel for the
issuer to underwriters in an underwritten public offering, addressed to the
underwriters, if any, and to such Selling Holders, and (ii) a “cold comfort”
letter, dated the effective date of the Shelf Registration Statement (and, in
the case of any underwritten public offering pursuant to the Shelf Registration
Statement, dated the date of the closing under the
underwriting agreement) signed by the independent certified public
accountants who have certified the Company’s financial statements included
in such Shelf Registration Statement, in form and substance as is
customarily given by independent certified public accountants to
underwriters in an underwritten public offering, addressed to the
underwriters, if any, and to such Selling Holders.

 

19

 

	 	(iv)	 	“Blue Sky” Qualification. Register or qualify all
Registrable Securities and Parity Registrable Securities to be offered under
such Shelf Registration Statement under the securities or blue sky laws of such
jurisdictions as the applicable Selling Holders (or in an underwritten
offering, the managing underwriter) shall reasonably request, and do any and
all other acts and things which may be necessary or advisable to enable such
Selling Holders to consummate the disposition in such jurisdictions of the
Registrable Securities and/or Parity Registrable Securities offered pursuant to
such Shelf Registration Statement, except that the Company shall not for any
such purpose be required to qualify generally to do business as a foreign
corporation in any jurisdiction wherein it is not so qualified, or to subject
itself to taxation in any such jurisdiction, or to consent to general service
of process in any such jurisdiction.

	 	(v)	 	Notification of Certain Events. As promptly as
practicable after becoming aware thereof, notify the applicable Selling Holders
of the happening of any event of which the Company has knowledge, as a result
of which the prospectus included in the Shelf Registration Statement, as then
in effect, includes an untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading, and promptly prepare and file with the SEC a supplement or
amendment to the Shelf Registration Statement or other appropriate filing with
the SEC to correct such untrue statement or omission, and deliver a number of
copies of such supplement or amendment to such Selling Holders as such Selling
Holders may reasonably request.

	 	(vi)	 	SEC Stop Orders. As promptly as practicable after
becoming aware thereof, notify the applicable Selling Holders (and, in the
event of an underwritten offering, the managing underwriters) of the issuance
by the SEC of any notice of effectiveness or any stop order or other suspension
of the effectiveness of the Shelf Registration Statement at the earliest
possible time.

	 	(vii)	 	Listing Requirements. Use its reasonable best efforts
to list such Registrable Securities and/or Parity Registrable Securities on
each securities exchange on which the Equity Securities of the Company
(including the ADS Shares) are then listed. If the Selling Holders propose to
sell Registrable Securities and/or Parity Registrable Securities in the
form of ADS Shares, the Company shall (subject to the Deposit Agreement)
procure delivery of ADS Shares listed on such securities exchange to the
Selling Holders and, to the extent additional ADS Shares are required to be
registered on Form F-6 in order to carry out such delivery, register such
additional ADS Shares.

 

20

 

	 	(viii)	 	Certificate Preparation. Cooperate with the applicable Selling
Holders to facilitate the timely preparation and delivery of certificates for
the Registrable Securities and/or Parity Registrable Securities to be offered
pursuant to the Shelf Registration Statement and enable such certificates for
the Registrable Securities and/or Parity Registrable Securities to be in such
denominations or amounts as the case may be, as such Selling Holders may
reasonably request, and deliver, or shall cause legal counsel selected by the
Company to deliver, to the transfer agent for the Registrable Securities (with
copies to such Selling Holders) an appropriate instruction and opinion of such
counsel. If the Selling Holders propose to sell Registrable Securities and/or
Parity Registrable Securities in the form of ADS Shares, the Company shall
cooperate with such Selling Holders to facilitate the timely delivery of the
certificates referred to above to the Depositary and shall (subject to the
Deposit Agreement) cause the Depositary to cooperate with such Selling Holders
to facilitate the timely preparation and delivery of the depositary receipts
evidencing such ADS Shares in such denominations or amounts as the case may be,
as such Selling Holders may reasonably request.

	 	(ix)	 	Underwriting Agreement. In the event of any
underwritten public offering pursuant to the Shelf Registration Statement,
enter into and perform its obligations under an underwriting agreement, in
usual and customary form and complying with the provisions of Section 5.8(h),
with the managing underwriter of such offering.

	 	(x)	 	Other Actions. Take all other reasonable actions
necessary to expedite and facilitate disposition by the applicable Selling
Holders of the Registrable Securities and/or Parity Registrable Securities
pursuant to the Shelf Registration Statement.

(f) Information from Holders. It shall be a condition precedent to the obligations of
the Company to take any action pursuant to this Section 5.8 with respect to the Registrable
Securities or Parity Registrable Securities of any Selling Holder that such Selling Holder shall
furnish to the Company such information regarding itself, the Registrable Securities or Parity
Selling Securities held by it, and the intended method of disposition of such securities as shall
be required to effect the registration of such securities.

(g) Preparation; Reasonable Investigation; Review by Counsel. In connection with any
offering of Registrable Securities under the Shelf Registration Statement, each Registrable
Securities Holder, its underwriters, if any, and counsel for such Registrable Securities Holder
shall:

	 	(i)	 	be permitted to review such Shelf Registration Statement, each
prospectus included therein or filed with the SEC, and each amendment thereof
or supplement thereto a reasonable period of time (but not less than 3 Business
Days) prior to their filing with the SEC; and

 

21

 

	 	(ii)	 	be given reasonable access to the Company’s books and records
and such opportunities to discuss the business of the Company with its
officers, counsel and the independent public accountants who have certified its
financial statements as shall be necessary, in the reasonable opinion of such
Registrable Securities Holders, such underwriters, if any, or their respective
counsel, to conduct a reasonable investigation within the meaning of the
Securities Act.

(h) Indemnification. In the event any Registrable Securities and/or Parity
Registrable Securities are included in the Shelf Registration Statement filed pursuant to this
Section 5.8, the following indemnification provisions shall apply.

(i) Indemnification by the Company.

(1) Indemnification. To the extent permitted by law, the
Company shall indemnify and hold harmless each Selling Holder, each
of the employees, officers, directors, partners, members, managers,
legal counsel and agents of such Selling Holders, any underwriter (as
defined in the Securities Act) for such Selling Holders and each
Person, if any, who controls any of such Selling Holders or
underwriter within the meaning of the Securities Act or Exchange Act
(collectively, the “Holder Indemnified Persons”) against and
hold each Holder Indemnified Person harmless from any and all
liabilities, obligations, losses, damages, (excluding consequential,
special, indirect or punitive damages), lawsuits, investigations,
arbitrations, actions, judgments, costs, expenses or claims,
including, without limitation, reasonable attorneys’ fees and
expenses incurred in investigation or defending any of the foregoing
(collectively, “Losses”), that the Holder Indemnified Persons
may suffer or sustain arising out of or due to any of the following
(any of the following being a “Violation”):

(a) any untrue statement or alleged untrue statement of a
material fact contained in such Registration Statement,
including any preliminary prospectus or final prospectus
contained therein or any amendments or supplements thereto;

(b) the omission or alleged omission to state therein a
material fact required to be stated therein, or necessary to
make the statements therein not misleading; or

(c) any violation or alleged violation by the Company of the
Securities Act, the Exchange Act, any state securities law or
any rule or regulation promulgated under the Securities Act,
the Exchange Act or any state securities

 

22

 

law, or any
applicable securities laws or Laws of a jurisdiction outside
the United States.

(2) Limitations on Indemnification. Notwithstanding the
foregoing, the Company shall not be liable for:

(a) any amounts paid in settlement of any such Losses if such
settlement is effected without the consent of the Company
(which consent shall not be unreasonably withheld or
delayed); or

(b) any Losses to the extent that such Losses arise out of or
are based upon a Violation which occurs in reliance upon and
in strict conformity with written information furnished by
such Selling Holders expressly for use in connection with
such registration.

(ii) Indemnification by the Registrable Securities Holders.

Indemnification. To the extent permitted by law, each
Selling Holder participating in any registration pursuant to this
Agreement shall indemnify and hold harmless the Company, each of the
Company’s employees, officers, directors, legal counsel and other
agents, any underwriter (as defined in the Securities Act) for the
Company and each Person, if any, who controls the Company or
underwriter within the meaning of the Securities Act or Exchange Act
(collectively, the “Company Indemnified Persons”), against
and hold each Company Indemnified Person harmless from any and all
Losses that the Company Indemnified Persons may suffer or sustain
arising out of or due to any Violation, in each case to the extent
(and only to the extent) that such Violation occurs in reliance upon
and in strict conformity with written information furnished by such
Selling Holder expressly for use in connection with such
registration.

(2) Limitations on Indemnification. Notwithstanding the
foregoing, no Selling Holder shall not be liable for:

(a) indemnification pursuant to this Agreement in excess of
the aggregate net cash proceeds received by such Selling
Holder from the offering of Registrable Securities in such
registration;

(b) any amounts paid in settlement of any such Losses if such
settlement is effected without the consent of such Selling
Holder; (which consent shall not be unreasonably withheld or
delayed); or

 

23

 

(c) any Losses to the extent that such Losses do not arise
out of or are not based upon a Violation which occurs in
reliance upon and in strict conformity with written
information furnished by such Selling Holder expressly for
use in connection with such registration.

	 	(iii)	 	Indemnification Mechanics. If there occurs an event
which a Company Indemnified Person or a Holder Indemnified Person (any such
Person being the “Indemnitee”) hereto asserts is an indemnifiable event
pursuant to this Section, the Indemnitee shall promptly notify the party
obligated to provide indemnification hereunder (the “Indemnitor”) in
writing of such event. Delay or failure to so notify the Indemnitor shall only
relieve the Indemnitor of its obligations to the extent, if at all, that it is
actually prejudiced by reason of such delay or failure. The Indemnitor shall
have a period of 20 calendar days in which to respond thereto. If the
Indemnitor so elects, within such 20 day period, it shall be entitled to assume
the defense of such claim (such election to be without prejudice to the right
of the Indemnitor to dispute whether such claim constitutes Losses under this
Section 5.8(i)). If the Indemnitor fails to assume the defense of such matter
within such 20 calendar day period or does not respond within such 20 calendar
day period, the Indemnitee against which such matter has been asserted shall
(upon delivering notice to such effect to the Indemnitor) have the right to
undertake, at the Indemnitor’s cost and expense, the defense, compromise or
settlement of such matter on behalf of the Indemnitee, provided that the
Indemnitee shall not settle such claim without the consent of the Indemnitor
(which consent shall not be unreasonably withheld) and provided further that
the Indemnitor shall have the right to participate (but not control) at its own
expense in the defense of such asserted claim. In any event, the Indemnitee
shall have the right to participate (but not control) at its own expense in the
defense of such asserted liability; provided, however, that the Indemnitor
shall pay the expenses of such defense if the Indemnitee is advised by counsel
in writing that there are one or more legal defenses available to the
Indemnitee that are different from or additional to those available to the
Indemnitor (in which case, if the Indemnitee notifies the Indemnitor in
writing, the Indemnitor shall not have the right to assume the defense of such
asserted liability on behalf of the Indemnitee).

	 	(iv)	 	Contribution. If the indemnification provided for in
this Section 5.8(h) is held by a court of competent jurisdiction to be
unavailable to an Indemnitee with respect to any Losses, then the Indemnitor,
in lieu of indemnifying such Indemnitee hereunder, shall contribute to the
amount
paid or payable by such Indemnitee as a result of such Losses in such
proportion as is appropriate to reflect the relative fault of the Indemnitor
on the one hand and of the Indemnitee on the other in connection with the
Violation that resulted in such Losses, as well as any other relevant
equitable considerations; provided, however, that in no event shall any

 

24

 

	 	 	 	contribution under this Section 5.8(h)(iv) from any Selling Holder, together
with the amount of any indemnification payments made by such Selling Holder
pursuant to Section 5.8(h)(ii) above, exceed the net proceeds from the
offering received by such Selling Holder. The relative fault of the
Indemnitor and of the Indemnitee shall be determined by reference to, among
other things, whether the Violation relates to information supplied by the
Indemnitor or the Indemnitee and the parties relative intent, knowledge,
access to information, and opportunity to correct or prevent such Violation.

	 	(v)	 	No Inconsistent Underwriting Agreements.
Notwithstanding any provision of this Agreement to the contrary, the Selling
Holders shall not be required to enter into an underwriting agreement that
contains indemnification and contribution provisions which, in the sole
discretion of such Selling Holders, materially differ from those contained in
this Section 5.8(h).

	 	(vi)	 	Registration in Non-U.S. Jurisdictions. In the event
that the ADS Shares cease to be listed on the NASDAQ Global Market and have not
been listed on another nationally recognized securities exchange in the United
States, but the Company has listed its Common Shares (or related depositary
 shares) on any Designated Offshore Securities Market or other internationally
recognized securities exchange, then the Company shall use its reasonable best
efforts, to the extent permitted by applicable law, to provide the Registrable
Securities Holders with substantially the same rights and benefits in such
jurisdiction as are provided for in this Section 5.8, and to take such steps,
if any, consistent with customary market practice at the time so that the
Registrable Securities are freely transferable in such listed market without
transfer restrictions imposed by the securities or similar laws of such
jurisdiction.

Section 5.9 Board Observer.

(a) The Investors shall have the right to have one representative (who need not be the same
individual from meeting to meeting) (a “Non-Voting Observer”) observe in full each meeting
of the Board and each of the committees thereof (a “Meeting”), whether in person or, at the
option of the Non-Voting Observer, via telephone attendance; provided that the Non-Voting
Observer may not attend (i) any Meeting of the Audit Committee or Compensation Committee where such
committee has determined in good faith and after consultation with legal counsel that the subject
matter of such Meeting is such that it is required or advisable that only independent directors
attend and non-independent directors not attend, (ii) any Meeting or portion thereof where such
attendance by the Non-Voting Observer could, in the opinion of legal
counsel, compromise the Company’s attorney-client privilege under applicable law or (iii) any
Meeting or portion thereof where a similarly situated director of the Company should, in the
opinion of legal counsel, recuse himself from attendance of such Meeting or portion thereof under
applicable law, regulation or the rules of any stock exchange or interdealer quotation system
because such attendance would present a material conflict of interest; provided,
however,

 

25

 

that any such exclusion of the Non-Voting Observer pursuant to clause (ii) or
(iii) shall extend only with respect to the subject matter and portion of any such Meeting relating
to such privilege or conflict. Zohar CDO 2003-1, Limited, Zohar II 2005-1, Limited, their
Affiliates and their Affiliated Funds shall not exercise their rights under this Section 5.9 and
Section 5.2 of the Patriarch Credit Agreement with respect to the same Meeting.

(b) The Company shall give the Investors written notice of each Meeting, including the
Meeting’s time and place, in the same manner as the directors of the Board, and (subject to the
exceptions in clause (i) and (ii) of Section 5.9(a)) shall provide the Investors with any document,
correspondence or other information provided to any member of the Board individually or to the
Board collectively, whether provided by the Company or a third party, including, without
limitation, agenda and minutes of the Meetings, in each case, no later than it gives such notice
and provides such document, correspondence or other information to such member or the Board, as the
case may be.

(c) The Company shall reimburse the Non-Voting Observer for its reasonable out-of-pocket
expenses incurred in connection with attendance at each Meeting, including but not limited to food,
lodging and transportation.

(d) The Non-Voting Observer shall be entitled to participate in discussions and consult with,
and make proposals and furnish advice to, the Board or committee without voting. The Non-Voting
Observer shall have a duty of confidentiality to the Company comparable to the duty of
confidentiality of a director of the Board.

(e) The Company shall use commercially reasonable efforts to obtain within 30 days of the
Second Amendment Date (as such term is defined in the Patriarch Credit Agreement) and (if so
obtained) shall thereafter maintain directors’ and officers’ liability insurance covering the
Non-Voting Observer in an amount of at least $10,000,000.

(f) The Company shall indemnify and hold harmless, to the fullest extent permitted under
applicable law, the Non-Voting Observer to the same extent as members of the Board and on terms no
less favorable than under the Company’s by-laws or other governing document as in effect on the
date hereof.

Section 5.10 Negotiation of Proper Initial Conversion Price. Each of the Company and the
Investors shall negotiate in good faith to mutually agree on the proper initial Conversion Price
pursuant to Section 4.4(h) of the Authorizing Resolution. If the initial Conversion Price is
adjusted pursuant to such section, then the Company will deliver to the Investors, together with
the officer’s certificate required by and no later than the end of the 15-day period set forth in
such section, an updated Disclosure Schedule Section 3.2(a) setting
forth the adjusted issued and outstanding capital of the Company on a fully diluted basis
immediately prior to and immediately following the Closing.

 

26

 

ARTICLE
VI

CONDITIONS

Section 6.1 Conditions to the Company’s Obligations. The obligation of the Company to sell
and issue the Shares and to consummate the other Transactions on the Closing Date shall be subject
to the fulfillment (or waiver by the Company) at or prior to the Closing of each of the following
conditions:

(a) No Order. No court or other Governmental Authority having jurisdiction over the
Company or any of its Subsidiaries or the Investors shall have instituted, enacted, issued,
promulgated, enforced or entered any Law (whether temporary, preliminary or permanent) that is then
in effect and that (i) has the effect of making illegal or otherwise prohibiting or invalidating
consummation of any of the Transactions or any provision of any Transaction Document or (ii) seeks
to restrain, prohibit or invalidate the consummation of the Transactions or to invalidate any
provision of any Transaction Document.

(b) Company Approvals. Each Company Approval shall have been obtained or made and
shall be in full force and effect to the extent that the failure to obtain or make such Company
Approval (i) has the effect of making illegal or otherwise prohibiting or invalidating consummation
of any of the Transactions or any provision of this Agreement or the other Transaction Documents or
(ii) would reasonably be expected, individually or together with other Company Approvals that have
not been obtained or made, to have a Material Adverse Effect.

(c) Performance of Obligations. Each of the Investors shall have performed in all
material respects each of its respective covenants and agreements contained in this Agreement or
the other Transaction Documents and required to be performed at or prior to the Closing.

(d) Representations and Warranties. Each of the representations and warranties of the
Investors contained in this Agreement that is qualified as to materiality shall be true and correct
on and as of the Closing Date as if made on and as of such date (other than representations and
warranties which address matters only as of a certain date, which shall be true and correct as of
such certain date) and each of the representations and warranties of the Investors that is not so
qualified shall be true and correct in all material respects on and as of the Closing Date as if
made on and as of such date (other than representations and warranties which address matters only
as of a certain date, which shall be true and correct in all material respects as of such certain
date).

(e) Officer’s Certificate. A certificate executed on behalf of each of the Investors
by a senior executive of such Investor, to the effect that the conditions set forth in paragraphs
(c) and (d) above have been satisfied, shall have been delivered to the Company.

(f) Amendment. The Amendment shall have been executed and delivered by the parties
thereto (other than the Company) and become effective.

 

27

 

Section 6.2 Conditions to the Investors’ Obligations. The obligation of the Investors to
purchase the Shares and to consummate the other Transactions on the Closing Date shall be subject
to the fulfillment (or waiver by the Investors) at or prior to the Closing of each of the following
conditions:

(a) Effectiveness of Authorizing Resolution. The Authorizing Resolution shall be in
full force and effect.

(b) No Order. No court or other Governmental Authority having jurisdiction over the
Company or any of its Subsidiaries or the Investors shall have instituted, enacted, issued,
promulgated, enforced or entered any Law (whether temporary, preliminary or permanent) that is then
in effect and that (i) has the effect of making illegal or otherwise prohibiting or invalidating
consummation of any of the Transactions or any provision of any Transaction Document or results or
would result in a Material Adverse Effect or (ii) seeks to restrain, prohibit or invalidate the
consummation of any of the Transactions or to invalidate any provision of any Transaction Document.

(c) Company Approvals. Each Company Approval shall have been obtained or made and
shall be in full force and effect to the extent that the failure to obtain or make such Company
Approval (i) has the effect of making illegal or otherwise prohibiting or invalidating consummation
of any of the Transactions or any provision of any Transaction Document or (ii) would reasonably be
expected, individually or together with other Company Approvals that have not been obtained or
made, to have a Material Adverse Effect.

(d) Contractual Consents. Each Company Contractual Consent shall have been obtained
and shall be in full force and effect to the extent that the failure to obtain such Company
Contractual Consent would reasonably be expected, individually or together with other Company
Contractual Consents that have not been obtained, to have a Material Adverse Effect.

(e) Performance of Obligations. The Company shall have performed in all material
respects each of its respective covenants and agreements contained in this Agreement and each other
Transaction Document and required to be performed at or prior to the Closing.

(f) Representations and Warranties. Each of the representations and warranties of the
Company contained in this Agreement that is qualified as to materiality shall be true and correct
on and as of the Closing Date as if made on and as of such date (other than representations and
warranties which address matters only as of a certain date, which shall be true and correct as of
such certain date) and each of the representations and warranties of the Company that is not so
qualified shall be true and correct in all material respects on and as of the Closing Date as if
made on and as of such date (other than representations and warranties which address matters only
as of a certain date, which shall be true and correct in all material respects as of such certain
date).

(g) No Other Material Adverse Effect. Since the date of this Agreement, there shall
not have occurred any changes, events or developments that have had, or would reasonably be
expected, individually or in the aggregate, to have, a Material Adverse Effect.

 

28

 

(h) Officer’s Certificate. A certificate executed on behalf of the Company by a
senior executive officer of the Company to the effect that the conditions set forth in paragraphs
(c), (d), (e) and (f) above have been satisfied, shall have been delivered to the Investors.

(i) Opinions of Company Counsel. The Investors shall have received an opinion from
(i) Conyers, Dill & Pearman, special Cayman Islands counsel to the Company, dated as of the Closing
Date, substantially in the form attached as Exhibit C-1 and (ii) Latham & Watkins, special
New York counsel to the Company, dated as of the Closing Date, substantially in the form attached
as Exhibit C-2 hereto.

(j) Good Standing Certificates. The Investors shall have received a Certificate of
Good Standing for the Company dated not more than five (5) Business Days prior to the Closing Date
issued by the Registrar of Companies of the Cayman Islands.

(k) Company Secretary’s Certificate. The Investors shall have received a certificate
in a form reasonably satisfactory to the Investors from the Company Secretary or another officer
(if there is no person serving as Company Secretary) of the Company attaching and certifying: (i)
true and correct copies of the Memorandum and Articles of Association of the Company; (ii) a true
and correct copy of the Authorizing Resolution as duly adopted by the Board and as in full force
and effect, (iii) true and correct copies of the resolutions adopted by the Board authorizing the
execution and delivery of this Agreement and each of the other Transaction Documents to which the
Company is a party, as in full force and effect, and (iv) as to the incumbency of any officers of
the Company executing any Transaction Document.

(l) Amendment. The Amendment shall have been executed and delivered by the parties
thereto (other than the Investors and the Administrative Agent (as defined in the Amendment)) and
become effective.

ARTICLE
VII

INDEMNIFICATION

Section 7.1 Survival. The respective representations, warranties, covenants and agreements
of the Company and the Investors set forth in this Agreement (except covenants and agreements which
are expressly required to be performed and are performed in full on or prior to the Closing Date)
shall survive the Closing Date and the consummation of the Transactions indefinitely.
Notwithstanding the foregoing, the covenants set forth in Sections 5.1, 5.3, 5.4(d), 5.6, 5.7, and
5.9 shall survive the Closing Date so long as the Investors and their Affiliates and Affiliated
Funds continue to hold at least 5% of the Common Shares (calculated on an as converted and
fully-diluted basis).

Section 7.2 Indemnification. Subject to the limitations set forth in this Article VII, the Company shall indemnify, defend
and hold harmless each of the Investors, its members, managers, officers, employees and Affiliates
(collectively, the “Investor Indemnified Parties”) from and against any and all losses,
costs, damages, liabilities, obligations, impositions, inspections, assessments, fines,
deficiencies and expenses (collectively, “Damages”) resulting from, in connection with or
arising out of (i) any inaccuracy in any representation or warranty of

 

29

 

the Company contained in
this Agreement or in the certificate delivered pursuant to Section 6.2(h) or (ii) any breach of or
default under any of the covenants or agreements given or made by the Company in this Agreement;
provided, however, that any claim by any Investor Indemnified Party under clause
(i) above shall be made prior to the date on which the applicable representation and warranty
expires pursuant to Section 7.1 and that any claim by any Investor Indemnified Party under clause
(ii) above shall be made within twelve (12) months of the time performance of such covenant or
agreement is contemplated.

Section 7.3 [Intentionally Omitted.]

Section 7.4 Indemnification Procedures. In the event an Investor Indemnified Party has a
claim against the Company under this Article VII, such Investor Indemnified Party shall deliver
notice of such claim (which claim shall be described with reasonable specificity in such notice)
with reasonable promptness to the Company. The failure by such Investor Indemnified Party to so
notify the Company shall not relieve the Company from any liability which it may have to such
Investor Indemnified Party under this Article VII, except to the extent that the Company
demonstrates that it has been actually prejudiced by such failure. If the Company disputes its
liability with respect to such claim, such Investor Indemnified Party and the Company shall proceed
in good faith to negotiate a resolution of such dispute and, if not resolved through negotiations,
such dispute shall be resolved by arbitration pursuant to Section 9.10.

Section 7.5 Third-Party Claims. In the event that an Investor Indemnified Party becomes
aware of a third-party claim which such Investor Indemnified Party believes may result in a demand
for indemnification pursuant to this Article VII, such Investor Indemnified Party shall promptly
notify the Company of such claim, and the Company shall be entitled to assume the defense of such
claim (such election to be without prejudice to the right of the Company to dispute whether such
claim constitutes indemnifiable Damages under this Article VII); provided, however,
that such Investor Indemnified Party shall be entitled to participate, at the Investor Indemnified
Party’s sole expense, in (but not control) such defense and (ii) the Company shall not settle such
claim without the consent of such Indemnified Party (which consent shall not be unreasonably
withheld) unless such settlement entails no payment of any kind by such Investor Indemnified Party
and provides for the complete release from all liabilities and claims of any kind of such Investor
Indemnified Party from such claim and the circumstances giving rise to such claim;
provided, further, however, that if the Company does not elect to assume
the defense of such claim pursuant to this sentence, then the Company may participate in (but not
control), at the Company’s sole expense, such defense. The failure by such Investor Indemnified
Party to so notify the Company shall not relieve the Company from any liability which it may have
to such
Investor Indemnified Party under this Article VII, except to the extent that the Company
demonstrates that it has been actually prejudiced by such failure.

Section 7.6 Tax Treatment of Indemnity Payments. Any indemnity payments made hereunder by
the Company to an Investor Indemnified Party, shall be treated by the parties for all federal,
state and local income tax purposes as an adjustment to the consideration paid by the Investor for
the Shares, and not as a dividend or other form of income payment from the Company to the Investor.

 

30

 

Section 7.7 Exclusivity. Except in the case of fraud, the indemnification provisions of
this Article VII shall be the Investors’ sole and exclusive monetary remedy with respect to any and
all claims relating to the subject matter of this Agreement and the Investors shall not pursue or
seek any other monetary remedy.

Section 7.8 Certain Damages. In no event shall the indemnification obligations under this
Agreement or the term “Damages” cover or include consequential, incidental, special, indirect or
punitive damages or lost profits suffered by an Investor Indemnified Party, whether based on
statute, contract, tort or otherwise.

ARTICLE VIII

FURTHER AGREEMENTS; TRANSFER RESTRICTIONS

Section 8.1 Public Announcements. The Investors and the Company shall consult with each
other before issuing any press release or otherwise making any public statements with respect to
the execution and delivery of this Agreement or the other Transaction Documents or any of the
Transactions, and shall not issue any such press release or make any such public statement prior to
reaching mutual agreement on the language of such press release or such public statement, except as
may otherwise be required by applicable Law or stock exchange rule.

Section 8.2 Fees and Expenses.

(a) Except as otherwise specified in this Section 8.2 or agreed in writing by the parties, all
costs and expenses incurred in connection with this Agreement, the other Transaction Documents and
the Transactions shall be paid by the party incurring such cost or expense.

(b) The Company shall pay to the Investors documented legal and other expenses incurred by the
Investors in connection with the Transactions, with (a) an amount equal to the aggregate par value
of the Shares paid on the Closing Date by set off against amounts owed by the Investors to the
Company under Section 2.3(a); and (b) the remainder of such expenses paid on the first Hong Kong
business day following the Closing Date by wire-transfer
of same day funds to Citibank, Los Angeles, ABA #: 322271724, Swift Code: CITIUS33, Account
Name: Jones Day Operating Account, Account #: 203196878, REF: 223194-615023 (or such other account
or accounts as the Investors shall notify the Company in writing).

(c) The Company shall pay or promptly reimburse the Investors for any transfer taxes, document
Taxes, stamp duty or other similar Taxes imposed in connection with the issuance of the Shares or
Conversion Shares to the Investors.

Section 8.3 Restrictions on Transfers of Series C Preferred Shares.

(a) Certain Transfers Prohibited. In no event shall the Investors Transfer any Series
C Preferred Shares to a Competitor at any time. For the avoidance of doubt, the foregoing
restrictions shall not apply to any Transfers of Common Shares held by the Investors.

 

31

 

(b) Transferees to be Bound by Certain Restrictions. It shall be a condition to any
Transfer of Series C Preferred Shares by the Investors that the transferee (other than a transferee
purchasing shares in a public offering or through a brokerage transaction) agree in writing to be
bound by (i) the limitation on short sales set forth in Section 8.4 below (which shall apply so
long as such transferee shall continue to hold any Series C Preferred Shares) and (ii) the
restriction on Transfers of Series C Preferred Shares to Competitors set forth in Section 8.3(a)
above.

(c) Non-Complying Transfers Null and Void. Any purported Transfer of Series C
Preferred Shares in violation of this Section 8.3 shall be null and void and the Company will not
register such purported Transfer.

Section 8.4 Limitation on Short Sales. So long as an Investor holds any Series C Preferred
Shares, the Investor shall not engage in any short sales of Common Shares or ADS Shares. For the
avoidance of doubt, the foregoing restriction shall cease to apply once the Investor no longer
holds Series C Preferred Shares, even if the Investor thereafter continues to hold Common Shares.

ARTICLE IX

GENERAL

Section 9.1 Termination. This Agreement may be terminated at any time prior to the
Closing:

(a) by mutual written consent of the Investors and the Company;

(b) by the Investors if there has been (i) a material breach of any of the representations or
warranties of the Company set forth in this Agreement that would give rise to the failure of the
condition set forth in Section 6.2(f) or (ii) a material breach of any of the
covenants or agreements of the Company set forth in this Agreement, which breach has not been
cured within ten (10) Business Days following receipt by the Company of notice of such breach from
the Investors; provided that neither of the Investors is then in material breach of any
representation or warranty or material breach of any covenant or agreement made by it in this
Agreement.

(c) by the Company if there has been (i) a material breach of any of the representations or
warranties of either of the Investors set forth in this Agreement that would give rise to the
failure of the condition set forth in Section 6.1(d) or (ii) a material breach of any of the
covenants or agreements of either of the Investors set forth in this Agreement, which breach has
not been cured within ten (10) Business Days following receipt by the Investors of notice of such
breach from the Company; provided that the Company is not then in material breach of any
representation or warranty or material breach of any covenant or agreement made by it in this
Agreement.

 

32

 

(d) by either the Investors or the Company if any permanent order, decree, ruling or other
action of a court or other competent authority restraining, enjoining or otherwise preventing the
consummation of any of the Transactions shall have become final and non-appealable;

(e) by either the Investors or the Company if the Closing shall not have occurred on or before
July 12, 2010 (the “Upset Date”, as such date may be hereafter extended by agreement of the
parties), unless the failure for the Closing to occur is the result of a material breach of this
Agreement by the Party seeking to terminate this Agreement;

In the event of termination of this Agreement by either the Investors or the Company, as
provided in this Section 9.1, this Agreement shall forthwith become void and there shall be no
liability hereunder on the part of the Investors or the Company, or their respective officers,
directors, managers, members or shareholders, except for Sections 8.2 and 9.1 and except that no
such termination shall relieve any Party of liability for any breach of any other provision of this
Agreement occurring prior to such termination.

Section 9.2 Notices. Whenever any notice is required to be given hereunder, such notice
shall be deemed given only when such notice is in writing and is delivered by messenger or courier
or, if sent by fax, when received. All notices, requests and other communications hereunder shall
be delivered by courier or messenger or shall be sent by facsimile to the following addresses:

(i) If to the Investors, at the following address:

Zohar CDO 2003-1, Limited

c/o Patriarch Partners, LLC

32 Avenue of the Americas, 17th Floor

New York, NY 10013

Attn: Senior Credit Associate

Facsimile: 212-825-2038

with a copy to

c/o Patriarch Partners, LLC

32 Avenue of the Americas, 13th Floor

New York, NY 10013

Attn: Senior Director Legal

Facsimile: 212-483-0709

Zohar II 2005-1, Limited

c/o Patriarch Partners, LLC

32 Avenue of the Americas, 17th Floor

New York, NY 10013

Attn: Senior Credit Associate

Facsimile: 212-825-2038

 

33

 

with a copy to

c/o Patriarch Partners, LLC

32 Avenue of the Americas, 13th Floor

New York, NY 10013

Attn: Senior Director Legal

Facsimile: 212-483-0709

with a copy by fax or messenger or courier to:

Jones Day

North Harwood Street

Dallas, Texas 75201

Facsimile: (214) 969-5100

Attention: Michael O. Weisberg, Esq.

(ii) If to the Company, at the following address:

Xinhua Sports & Entertainment Limited

Suite 2103-4

Vicwood Plaza

199 Des Voeux Road

Central, Hong Kong

Facsimile: +852.2541.8266

Attention: John McLean

with a copy by fax or messenger or courier to:

Latham & Watkins

41st Floor, One Exchange Square

8 Connaught Place, Central

Hong King

Fax: +852.2522.7006

Attn: David T. Zhang

or to such other respective addresses as may be designated by notice given in accordance with this
Section 9.2. If, subsequent to the date hereof, an Investor assigns any of its pre-emptive rights
under Section 5.7 to an Affiliate or an Affiliated Fund in accordance with this Agreement, any
notice to the Investor pursuant to this Section 9.2 shall be deemed to also have been duly
delivered to such Affiliate or Affiliated Fund.

Section 9.3 Complete Agreement; No Third-Party Beneficiaries. This Agreement, the
Disclosure Schedule and the other Transaction Documents constitute the entire agreement among the
parties pertaining to the subject matter hereof and supersede all prior agreements and
understandings of the parties in connection therewith. This Agreement, other than Article VII, is
not intended to confer upon any person other than the Company and the Investors any rights or
remedies hereunder.

 

34

 

Section 9.4 GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK. SUBJECT TO SECTION 9.10, THE INVESTORS AND THE COMPANY
HEREBY CONSENT TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE
FEDERAL COURTS LOCATED IN THE BOROUGH OF MANHATTAN WITH RESPECT TO ANY ACTION, SUIT OR PROCEEDING
BROUGHT TO ENFORCE ANY PROVISION OF THIS AGREEMENT OR TO DETERMINE THE RIGHTS OF ANY PARTY HERETO.

Section 9.5 No Assignment. Neither this Agreement nor any rights or obligations of the
Company under it are transferable or assignable by the Company without the written consent of the
Investors. After the Closing, this Agreement and the rights and obligations of an Investor under
it are assignable by such Investor to a Person that is not a Competitor; provided that, in
addition to the foregoing limitation (a) such Investor shall furnish the Company written notice of
the name and address of such transferee or assignee, (b) such transferee or assignee shall have
agreed in writing to be bound by the transfer restrictions and other applicable provisions of this
Agreement, (c) the rights of the Investors set forth in Section 5.1(b) or (c) may only be
transferred or assigned to a transferee or assignee that has entered into a confidentiality
undertaking reasonably satisfactory to the Company with respect thereto, (d) the Investors may only
transfer or assign the rights and obligations under Section 5.9 to a single transferee, and (e) the
Investors may only assign rights to register Registrable Securities under Section 5.8 in connection
with a Transfer to a transferee
of Registrable Securities representing at least 1% of the number of Common Shares outstanding at
the time of such Transfer, provided the Company is furnished with a written notice of the
name and address of such transferee or assignee and the Registrable Securities with respect to
which such registration rights are being assigned.

Section 9.6 Counterparts. This Agreement may be executed in one or more counterparts and
by different parties in separate counterparts. All such counterparts shall constitute one and the
same agreement and shall become effective when one or more counterparts have been signed by each
Party and delivered to the other Party.

Section 9.7 Remedies; Waiver. Subject to Section 7.7, all rights and remedies existing
under this Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise
available. No failure on the part of any Party to exercise or delay in exercising any right
hereunder shall be deemed a waiver thereof, nor shall any single or partial exercise preclude any
further or other exercise of such or any other right. Notwithstanding any other provision of this
Agreement, it is understood and agreed that remedies at law would be inadequate in the case of any
breach of the covenants contained in this Agreement. The Company and the Investors shall be
entitled to equitable relief, including the remedy of specific performance, with respect to any
breach or attempted breach of such covenants by the other Party.

Section 9.8 Severability. Any invalidity, illegality or unenforceability of any provision
of this Agreement in any jurisdiction shall not invalidate or render illegal or unenforceable the
remaining provisions hereof in such jurisdiction and shall not invalidate or render illegal or
unenforceable such provisions in any other jurisdiction. The Company and the Investors shall
endeavor in good faith negotiations to replace any invalid, illegal or

 

35

 

unenforceable provision with
a valid, legal and enforceable provision, the economic effect of which comes as close as possible
to that of the invalid, illegal or unenforceable provision.

Section 9.9 Amendment; Waiver. This Agreement may be amended only by agreement in writing
of both parties. No waiver of any provision nor consent to any exception to the terms of this
Agreement shall be effective unless in writing and signed by the Party to be bound and then only to
the specific purpose, extent and instance so provided.

Section 9.10 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THE TRANSACTION DOCUMENTS OR THE TRANSACTIONS
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

[the next page is the signature page]

 

36

 

IN WITNESS WHEREOF, the Company and the Investors have caused this Agreement to be executed by
their respective officers thereunto duly authorized all as of the date first written above.

	 	 	 	 	 
	 	XINHUA SPORTS & ENTERTAINMENT LIMITED

 	 
	 	By:  	/s/  Graham Anton Earnshaw
 	 
	 	 	Name:  	Graham Anton Earnshaw 	 
	 	 	Title:  	Director 	 
	 

Signature Page to Series C Convertible Preferred Shares Purchase Agreement

 

 

 

	 	 	 	 	 	 	 	 	 
	INVESTORS:	 	ZOHAR CDO 2003-1, LIMITED
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Patriarch Partners VIII, LLC,
	 	 	 	 	its Collateral Manager
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ Lynn Tilton
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Lynn Tilton
	 

	 	 	 	 	 	Title:
	 	Manager
	 
	 	 	 	 	 	 	 	 
	 	 	ZOHAR II 2005-1, LIMITED
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Patriarch Partners XVI, LLC,
	 	 	 	 	its Collateral Manager
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ Lynn Tilton
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Lynn Tilton
	 

	 	 	 	 	 	Title:
	 	Manager

Signature Page to Series C Convertible Preferred Shares Purchase Agreement

 

 

 

Exhibit A

to

Series C Convertible Preferred Shares

Purchase Agreement

Defined Terms

“AAA” has the meaning set forth in Section 9.10(b).

“Action or Proceeding” means any suit, action, proceeding (including any compliance,
enforcement or disciplinary proceeding), arbitration, formal or informal inquiry, inspection,
investigation or formal order of investigation of complaint.

“ADRs” means the American Depositary Receipts evidencing the ADS Shares.

“ADS Shares” means the American depository shares issued by the Depositary pursuant to
the Deposit Agreement each of which shares represents two Class A Common Shares.

“Affiliate” means with respect to any Person, any other Person that directly or
indirectly, though one or more intermediaries, controls, is controlled by, or under common control
with, the first mentioned Person. For purposes of this definition, “control” (including with
correlative meanings, the terms “controlling”, “controlled by” and under “common control with”)
means the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of a Person, whether through the ownership of voting securities, by
contract or otherwise.

“Affiliated Fund” means any investment fund sponsored or managed by an Investor or an
Affiliate.

“Amendment” has the meaning set forth in the Recitals.

“Articles of Association” means the Amended and Restated Articles of Association of
the Company as currently in effect.

“Authorizing Resolution” has the meaning set forth in the Recitals.

“Board” means the Board of Directors of the Company.

“Business Day” means any day other than a Saturday, Sunday or a day on which banking
institutions in the State of New York or Hong Kong are authorized by law or executive order to
close.

“Capital Shares” means any shares in the capital of the Company.

“Class A Common Shares” means the A Common Shares in the Company with a nominal value
of $0.001 per share.

 

A-1

 

“Class B Common Shares” means the B Common Shares in the Company with a nominal value
of $0.001 per share.

“Closing” has the meaning set forth in Section 2.2.

“Closing Date” has the meaning set forth in Section 2.2.

“Code” means the U.S. Internal Revenue Code of 1986, as amended.

“Common Shares” means, collectively, the Class A Common Shares and the Class B Common
Shares.

“Company” has the meaning set forth in the Preamble.

“Company Approvals” has the meaning set forth in Section 3.5(b).

“Company Contract” means any indenture, mortgage, deed of trust, lease, contract,
agreement, instrument or other undertaking or legally binding arrangement (whether written or oral)
to which the Company or any Subsidiary is a party or by the Company or any Subsidiary or any of
their respective properties or assets is bound.

“Company Contractual Consents” has the meaning set forth in Section 3.5(c).

“Company Indemnified Persons” has the meaning set forth in Section 5.8(h)(ii)(1).

“Company Party” has the meaning set forth in Section 3.18.

“Competitor” means (i) any Person that is engaged in any business or organization in
any jurisdiction in which the Company or any of its Subsidiaries sells products or provides
services which, directly or indirectly, Competes (as hereinafter defined) with the Company or any
of its Subsidiaries; and (ii) any Affiliates of a Person described in clause (i). A business or
organization shall be deemed to “Compete” with the Company or a Subsidiary of the Company
if such business or organization competes in a significant manner with the business of the Company
or any of its Subsidiaries as such business is conducted as of the date hereof or at any time while
this Agreement is in effect.

“Contingent Obligation” shall mean as to any Person, any provision of any security
issued by such Person or of any agreement, undertaking, contract, indenture, mortgage, deed of
trust or other instrument or arrangement (whether in writing or otherwise) to which such Person is
a party or by which it or any of such Person’s property is bound.

“Contractual Consent” applicable to a specified Person in respect of a specified
matter means any consent required to be obtained by such Person from any other Person party to any
Contractual Obligation to which such first Person is a party or by which it is bound in order for
such matter to occur or exist without resulting in the occurrence of a default or event of
default or termination, the creation of any lien, the triggering of any decrease in the rights
of

 

A-2

 

such first Person, any increase in the obligations of such first Person or any other consequence
adverse to the interests of such first Person, under any provision of such Contractual Obligation.

“Contractual Obligation” means, as to any Person, any obligation arising out of any
indenture, mortgage, deed of trust, contract, agreement, insurance policy, instrument or other
undertaking to which such Person is a party or by which it or any of its property is bound
(including, without limitation, any debt security issued by such Person).

“Conversion Shares” means any Class A Common Shares issued upon conversion of any of
the Shares pursuant to Article 4 of the Authorizing Resolution.

“Convertible Securities” means any securities or obligations that are convertible into
or exchangeable for Capital Shares.

“Damages” has the meaning set forth in Section 7.2.

“Deposit Agreement” means the Deposit Agreement among the Company, the Depositary and
the holders from time to time of the ADRs.

“Depositary” means The Bank of New York, as the depositary under the Deposit
Agreement.

“Designated Offshore Securities Market” means a Designated Offshore Securities Market
as defined in Rule 902(b) of Regulation S of the Securities Act.

“Disclosure Schedule” means the schedule dated the date hereof delivered by the
Company to the Investors, which schedule relates to this Agreement and is designated therein as the
Disclosure Schedule of the Company for the purposes hereof.

“Disputant” has the meaning set forth in Section 9.10(a).

“Dispute” has the meaning set forth in Section 9.10(a).

“Elected New Securities” has the meaning set forth in Section 5.7(d).

“Employee Share Options” means any share options granted pursuant to the Share Option
and Share Grant Plan.

“Enforceability Exceptions” has the meaning set forth in Section 3.3(b).

“Entity” means any corporation, partnership, limited liability company, joint venture,
association, partnership, business trust or other entity.

“Equity Securities” means the Class A Common Shares, and any other Capital Shares
(including the Series B Preferred Shares, the Series C Preferred Shares and the Class B Common
Shares), equity interest or other ownership interest or profit participation or similar
right with respect to the Company, including, without limitation, limited liability company
membership interests, partnership interests, voting trust certificates, certificates of interest or

 

A-3

 

participation in any profit-sharing agreement or arrangement, options, warrants, bonds, debentures,
notes, or other evidences of indebtedness, secured or unsecured, convertible, subordinated or
otherwise, or in general any instruments commonly known as “securities” or any certificates of
interest, shares or participations in temporary or interim certificates for the purchase or
acquisition of, or any right to subscribe to, purchase or acquire, any of the foregoing.

“Estimated Price Range” has the meaning set forth in Section 5.7(b).

“Exchange Act” means the Securities Exchange Act of 1934, as amended, together with
the rules and regulations promulgated thereunder.

“Financial Statements” has the meaning set forth in Section 3.6(b).

“GAAP” has the meaning set forth in Section 3.6(b)

“Governmental Authority” means any government or political subdivision or department
thereof, any governmental or regulatory body, commission, board, bureau, agency or instrumentality,
or any court or arbitrator or alternative dispute resolution body, in each case whether federal,
state, local, foreign or supranational, as well as any applicable self regulatory body.

“Holder Indemnified Persons” has the meaning set forth in Section 5.8(h)(i)(1).

“Hong Kong” means the Special Administrative Region of Hong Kong.

“Indebtedness” shall mean as to any Person (a) all obligations of such Person for
borrowed money (including without limitation, reimbursement and all other obligations with respect
to surety bonds, unfunded credit commitments, letters of credit and bankers’ acceptances, whether
or not matured), (b) all indebtedness, obligations or liability of such Person (whether or not
evidenced by notes, bonds, debentures or similar instruments) whether matured or unmatured,
liquidated or unliquidated, direct or indirect, absolute or contingent, or joint or several, that
should be classified as liabilities in accordance with GAAP, including without limitation, any
items so classified on a balance sheet and any reimbursement obligations in respect of letters of
credit or obligations in respect of bankers acceptances, (c) all obligations of such Person to pay
the deferred purchase price of property or services, except trade accounts payable and accrued
commercial or trade liabilities arising in the ordinary course of business, (d) all interest rate
and currency swaps, caps, collars and similar agreements or hedging devices under which payments
are obligated to be made by such Person, whether periodically or upon the happening of a
contingency, (e) all indebtedness created or arising under any conditional sale or other title
retention agreement with respect to property acquired by such Person (whether or not the rights and
remedies of the seller or lender under such agreement in the event of default are limited to
repossession or sale of such property), (f) all obligations of such Person under leases which have
been or should be, in accordance with GAAP, recorded as capital leases, (g) all indebtedness
secured by any Lien (other than Liens in favor of lessors under leases) on any
property or asset owned or held by that Person regardless of whether the indebtedness secured
thereby shall have been assumed by that Person or is non-recourse to the credit of that Person,

 

A-4

 

and
(h) any Contingent Obligation of such Person incurred in respect of any Indebtedness referred to in
(a) to (g) above.

“Indemnitee” has the meaning set forth in Section 5.8(h)(iii).

“Indemnitor” has the meaning set forth in Section 5.8(h)(iii).

“Intellectual Property” has the meaning set forth in Section 3.11.

“Investors” has the meaning set forth in the Preamble (and/or their permitted
transferees and assignees as the context may require).

“Investor Common Shares” means (a) any A Common Shares issued or issuable upon
conversion of any Series C Preferred Shares purchased by the Investors pursuant to this Agreement
and (b) any A Common Shares of the Company which the Investors (or any permitted transferee
hereunder) shall be entitled to receive, or shall have received, in connection with any share
splits, share dividends or similar events with respect to the Company’s A Common Shares.

“Investor Indemnified Party” has the meaning set forth in Section 7.2.

“Issuance Notice” has the meaning set forth in Section 5.7(b).

“Law” means any judgment, order (whether temporary, preliminary or permanent), writ,
injunction, decree, statute, rule, regulation, notice, law or ordinance and shall also include any
regulations of any applicable self regulatory organizations.

“License” means any license, franchise, permit, privilege, immunity, approval or other
authorization required to be obtained under any applicable Law from any applicable Governmental
Authority.

“Liens” means security interests, liens, claims, pledges, mortgages, options, rights
of first refusal, agreements, limitations on voting rights, charges, easements, servitudes,
encumbrances and other restrictions of any nature whatsoever.

“Losses” has the meaning set forth in Section 5.8(h)(i)(1).

“Material Adverse Effect” means a material adverse effect on (i) the ability of the
Company to consummate any of the Transactions or to perform any of its obligations under any of the
Transaction Documents or (ii) the businesses, assets (including licenses, franchises and other
intangible assets), liabilities, financial condition or operating income of the Company and its
Subsidiaries, taken as a whole, except (a) effects or changes (including general economic and
political conditions) that do not have a materially disproportionate effect (relative to other
industry participants) on the Company and its Subsidiaries and generally affect the industry in
which the Company and its Subsidiaries operate; (b) effects or changes relating to loss of
employees, suppliers, vendors, agents, customers or other business partners resulting primarily
from the announcement or pendency of the transactions contemplated by this Agreement;

 

A-5

 

(c) effects
or changes to the extent attributable to changes in PRC Law after the date of this Agreement; and
(d) any change or effect that results from any action taken by the Company at the request of the
Investors or as required by the terms of this Agreement or the other Transaction Documents.

“Meeting” shall have the meaning set forth in Section 5.9.

“Memorandum of Association” means the Amended and Restated Memorandum of Association
of the Company as currently in effect.

“New Securities” has the meaning set forth in Section 5.7(a).

“Non-Voting Observer” shall have the meaning set forth in Section 5.9.

“NuCom Registration Rights Agreement” means the Registration Rights Agreement dated as
of March 11, 2009 between the Company and the investors listed therein.

“OFAC” means the Office of Foreign Assets Control of the US Department of the
Treasury.

“Organizational Document” means, with respect to any Entity. any certificate or
articles of incorporation, memorandum or articles of association, by-laws, partnership agreement,
limited liability agreement, operating agreement, trust agreement or other agreement, instrument or
document governing the affairs of such Entity.

“Parity Registrable Securities” means (a) any “Registrable Securities” as defined in
the Patriarch Investor Rights Agreements, (b) any “Registrable Securities” as defined in the Series
B Registration Rights Agreement, (c) any “Registrable Securities” as defined in the NuCom
Registration Rights Agreement, and (d) any A Common Shares into which any Permitted Parity
Preferred Shares are convertible, to the extent that registration rights are granted to the holders
of such shares in connection with the issuance of such Permitted Parity Preferred Shares.

“Patriarch” means Patriarch Partners Media Holdings, LLC.

“Patriarch Credit Agreement” means the Credit Agreement dated as of October 21, 2008
among the Company, certain subsidiaries of the Company, Patriarch Partners Agency Services, LLC,
Zohar CDO 2003-1, Limited and Zohar II 2005-1, Limited, as amended, modified or supplemented from
time to time.

“Patriarch Loans” means the Loans outstanding under the Patriarch Credit Agreement.

“Patriarch Investor Rights Agreements” means (i) the Investor Rights Agreement dated
as of March 16, 2006 among the Company, Xinhua Finance Limited and Patriarch and (ii) the Investor
and Registration Rights Agreement dated as of October 21, 2008 (the “2008 IRRA”)

 

A-6

 

among the
Company, the investors listed therein and Patriarch, in each case, as amended, modified or
supplemented from time to time.

“Permitted Parity Preferred Shares” means any preferred shares of the Company that
constitute “Parity Shares” issued in compliance with Section 5.2(c) of the Authorizing Resolution.

“Person” means any individual, Entity, unincorporated association or Governmental
Authority.

“Potential Material Event” means either (a) the possession by the Company of material
information not ripe for disclosure in a Registration Statement, or (b) any material engagement or
activity by the Company which would be adversely affected by disclosure in a Registration Statement
at such time, in each case, which shall be evidenced by a written good faith determination by the
Board of Directors that both disclosure of such information, engagement or activity in a
Registration Statement would be detrimental to the business and affairs of the Company, and a
Registration Statement would be materially misleading absent the inclusion of such information,
engagement or activity.

“Purchase Consideration” means the payment of the aggregate par value of the Shares
and the execution and delivery of the Amendment by the agent and lender parties thereto.

“PRC” means the People’s Republic of China, but for purpose of this Agreement, does
not include Taiwan and the Special Administrative Regions of Hong Kong and Macau.

“Pricing” has the meaning set forth in Section 5.7(b).

“Prospectus” means the prospectus included in any Registration Statement, all
amendments and supplements to such prospectus and all material incorporated by reference in such
prospectus.

“Pro Rata Share” has the meaning set forth in Section 5.7.

“Recent Balance Sheet” means the consolidated balance sheet of the Company and its
consolidated subsidiaries as of December 31, 2009 included in the Financial Statements.

“Registrable Securities” means any Investor Common Shares; provided,
however, that Registrable Securities shall cease to be Registrable Securities upon the
earlier of (i) when the Registrable Securities have been transferred pursuant to Rule 144, (ii)
when, with respect to any Registrable Securities Holder, in the reasonable opinion of counsel to
the Company, all Registrable Securities proposed to be sold by such Registrable Securities Holder
may then be sold pursuant to Rule 144 without any volume limitations, which counsel shall be
reasonably satisfactory to such Registrable Securities Holder and (iii) the date as of which all of
the
Registrable Securities have been sold pursuant to a Registration Statement, provided
further, that “Registrable Securities” shall exclude in all cases any Registrable
Securities Transferred by a Registrable Securities Holder or any other Person other than an
assignment pursuant to Section 9.5.

 

A-7

 

“Registrable Securities Holder” means any Person who holds Registrable Securities who
(i) is an Investor or (ii) is a Person to whom registration rights under Section 5.8 have been
assigned pursuant to Section 9.5. For the purposes of this Agreement, any holder of Series C
Preferred Shares shall be deemed to be the holder of any Registrable Securities issuable upon
conversion of such Series C Preferred Shares.

“Registration Expenses” means all expenses incurred by the Company in connection with
the Shelf Registration Statement filed pursuant to Section 5.8, including, without limitation, all
registration, qualification and filing fees, printing expenses, escrow fees, fees and disbursements
of counsel for the Company, blue sky fees and expenses, the expense of any special audits incident
to or required by any such registration and the reasonable fees and disbursements of a single
special legal counsel to represent the Selling Holders in connection with any offering thereunder.
Registration Expenses do not include compensation of regular employees of the Company which shall
be paid in any event by the Company, underwriting discounts and commissions and share transfer
taxes.

“Registration Statement” means any registration statement of the Company filed with,
or to be filed with, the SEC under the rules and regulations promulgated under the Securities Act,
including the Prospectus, amendments and supplements to such registration statement, including
post-effective amendments, and all exhibits and all material incorporated by reference in such
registration statement.

“Registration Rights Agreement” means the Registration Rights Agreement to be dated as
of the Closing Date between the Company and the Investors substantially in the form attached hereto
as Exhibit D hereto.

“Related Person” means, with respect to any Person, (a) any holder or beneficial owner
(directly or indirectly) of equity securities, or rights to acquire equity securities, representing
5% or more of the voting equity securities of such Person (a “5% Shareholder”); (b) any
Affiliate of such specified Person or of any such 5% Shareholder thereof; (c) any Person that
serves as a director, officer, partner, employee, executor or trustee (or in similar capacity) of
such Person or of any 5% Shareholder thereof, or any of their respective Affiliates; (d) any Person
with respect to which such specified Person serves as a general partner, managing member, manager
or trustee (or in a similar capacity); and (e) any relative or spouse (or relative of such spouse)
who resides with, or is a dependent of, any Related Person described in clauses (a), (b), (c) or
(d) of this definition.

“Rule 144” means Rule 144 promulgated under the Securities Act, as such rule shall be
in effect from time to time.

“Rules of Arbitration” has the meaning set forth in Section 9.10(b).

“Sanctioned Entity” shall mean (i) the government of or an agency of the government
of, (ii) an organization directly or indirectly controlled by, or (iii) a person resident in a
country that is subject to a sanctions program identified on the list maintained by OFAC and
available at http://www.ustreas.gov/offices/enforcement/ofac/programs/, or as otherwise

 

A-8

 

published
from time to time as such program may be applicable to such agency, organization or person.

“Sanctioned Person” shall mean a person named on the list of Specially Designated
Nationals or Blocked Persons maintained by OFAC available at
http://www.treas.gov/offices/enforcement/ofac/sdn/index.shtml, or as otherwise published from time
to time.

“SEC” means the United States Securities and Exchange Commission and includes any
Governmental Authority succeeding to the functions thereof.

“SEC Reports” has the meaning set forth in Section 3.6(a)

“Securities Act” means the Securities Act of 1933, as amended, together with the rules
and regulations promulgated thereunder.

“Selling Expenses” means, in respect of an offering pursuant to the Shelf Registration
Statement filed pursuant to Section 5.8, all underwriting discounts, selling commissions and share
transfer taxes applicable to the Registrable Securities and/or Parity Registrable Securities
registered by the applicable Selling Holders.

“Selling Holders” means, in respect of an offering pursuant to the Shelf Registration
Statement filed pursuant to Section 5.8, Registrable Securities Holders and/or holders of Parity
Registrable Securities selling Registrable Securities and/or Parity Registrable Securities pursuant
to such Shelf Registration Statement.

“Series B Authorizing Resolution” means the authorizing resolution adopted on February
28, 2008 creating the Series B Preferred Shares.

“Series B Preferred Shares” means the Series B Convertible Preferred Shares of the
Company.

“Series B Purchase Agreement” means the Series B Convertible Preferred Shares Purchase
Agreement dated as of February 18, 2008 between the Company and Yucaipa, as amended, modified or
supplemented from time to time.

“Series B Registration Rights Agreement” means the Registration Rights Agreement dated
as of February 28, 2008 between the Company and Yucaipa.

“Series C Preferred Shares” has the meaning set forth in the Recitals.

“Share Option and Share Grant Plan” means the Company’s Share Option and Share Grant
Plan.

“Share Purchase Rights” means any options, warrants, awards or other rights
exercisable for the purchase or acquisition of Capital Shares or Convertible Securities.

“Shares” has the meaning set forth in the Recitals.

 

A-9

 

“Shelf Registration Statement” means a Registration Statement of the Company filed
with the SEC on Form F-3 (or any successor form or other appropriate form under the Securities Act,
including Form F-1) for an offering to be made on a continuous or delayed basis pursuant to Rule
415 under the Securities Act (or any similar rule that may be adopted by the SEC).

“Shelf Suspension” has the meaning set forth in Section 5.8(c).

“Subsidiary” means any Entity of which the Company (either alone or through or
together with one or more other Subsidiaries) (x) owns, directly or indirectly, more than 50% of
the shares or other equity interests the holders of which are generally entitled to vote for the
election of the board of directors or other governing body of such Entity, (y) is a general
partner, managing member, trustee or other Person performing similar functions or (z) has control
(as defined in Rule 405 under the Securities Act).

“Tax Return” means any return, report or similar statement (including the attached
schedules) required to be filed with respect to any Tax, including, without limitation, any
information return, claim for refund, amended return or declaration of estimated Tax.

“Tax” means any tax, governmental fee or other like assessment or charge of any kind
whatsoever (including any tax imposed under Subtitle A of the Code and any net income, alternative
or add-on minimum tax, gross income, gross receipts, sale, bulk sales, use, real property, personal
property, ad valorem, value added, transfer, franchise, profits, license, withholding tax on
amounts paid, withholding, payroll, employment, excise severance, stamp, capital shares,
occupation, property, environmental or windfall profits tax, premium, custom, duty or other tax or
assessment), together with any interest, penalty, addition to tax or additional amount thereto,
imposed by any Governmental Authority.

“Taxing Authority” means any Governmental Authority (domestic or foreign) responsible
for the imposition of any Tax.

“Transaction Documents” means this Agreement, the Authorizing Resolution, the
Registration Rights Agreement and the Amendment.

“Transfer” of a security means any sale, assignment, transfer, exchange, pledge, grant
of security interest in, hypothecation, encumbrance or other disposition or conveyance of any
interest in such security.

“Transactions” means the purchase and sale of the Shares, the entry into the Amendment
and the other transactions contemplated by the Transaction Documents.

“Undesignated Shares” has the meaning set forth in Section 3.2.

“Upset Date” has the meaning set forth in Section 9.1(e).

“USD”, “Dollars” or “US$” means the lawful currency of the United
States of America.

 

A-10

 

“Violation” has the meaning set forth in Section 5.8(h)(i)(1).

“Yucaipa” means Yucaipa Global Partnership Fund L.P., an exempted limited partnership
organized under the laws of the Cayman Islands.

 

A-11

 

SCHEDULE 1

	 	 	 	 	 
	Name of Investors	 	Number of Shares to be purchased	 
	ZOHAR CDO 2003-1, LIMITED
	 	 	41,992	 
	ZOHAR II 2005-1, LIMITED
	 	 	36,303	 

 

A-12

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