Document:

Exhibit 10.28

Exhibit 10.28

AMENDMENT TO
STOCK PURCHASE AGREEMENT

THIS
AMENDMENT TO STOCK PURCHASE AGREEMENT (this “Amendment”), dated as of
December 6, 2007, is by and among Various, Inc., a California corporation
(the “Company”), Andrew B. Conru Trust Agreement, Andrew B. Conru Trustee
(“Trust 1”), and Mapstead Trust, created on April 16, 2002,
Lars and Marin Mapstead Trustees (“Trust 2” and, together with
Trust 1, “Sellers”), Andrew B. Conru, an individual
(“Founder 1”), Lars Mapstead, an individual (“Founder 2”
and, together with Founder 1, the “Founders”), and Penthouse Media
Group Inc., a Nevada corporation (“Purchaser”).  The Company,
Sellers and the Founders are sometimes referred to collectively as the
“Seller Parties” and collectively with Purchaser as the “Parties.”

RECITALS

WHEREAS,
the Parties entered into a Stock Purchase Agreement dated as of
September 21, 2007 (the “Stock Purchase Agreement”).
 Capitalized terms used herein without definition shall have the meanings
ascribed to them in the Stock Purchase Agreement.

WHEREAS,
the Parties acknowledge that due to Purchaser not being able to secure
sufficient financing, Purchaser has requested Sellers to accept more debt in
payment of the Purchase Price, thereby reducing the amount of cash available to
Sellers.  Trust 2 did not wish to accept more debt unless Trust 2 received
some additional consideration which is memorialized pursuant to Schedule 1.02(a)
of the Stock Purchase Agreement, thereby increasing Trust 2’s portion of the
Purchase Price and thereby decreasing the Purchase Price for Trust 1, all of
which Purchaser and Trust 2 wish to agree upon to enable the Parties to proceed
with a Closing. 

WHEREAS,
the Parties desire to supplement and amend their agreements as reflected in the
Stock Purchase Agreement.

AGREEMENT

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

ARTICLE 1

STOCK PURCHASE

Section
1.1

Textual
Changes.  The reference in the preamble of the Stock Purchase Agreement
to “The Lars Mapstead Trust, established April 18, 2002” shall be replaced in
its entirety by “Mapstead Trust, created on April 16, 2002”.  The
reference in the preamble of the Stock Purchase Agreement to “The Andrew B.
Conru Trust, established November 6, 2001” shall be replaced in its entirety by
“Andrew B. Conru Trust Agreement”.

1

 

Section
1.2

Textual
Changes.  The following changes are made to the text of Article 1 of
the Stock Purchase Agreement:

(a)

Section
1.02(a)(i) of the Stock Purchase Agreement is hereby amended to delete “Three
Hundred Fifty Million Dollars ($350,000,000)” and to insert in its place “One
Hundred Fifty Million Dollars ($150,000,000)”.

(b)

Section
1.02(b) of the Stock Purchase Agreement is hereby amended to read in its
entirety as follows: 

“By
delivery at the Closing, subject to Section 2.03(a), of: 

(i)

two
unsecured exchangeable subordinated promissory notes, issued by Interactive
Network, Inc., a Nevada corporation and wholly owned subsidiary of Purchaser
(“INI”), and payable to the respective Sellers in the respective amounts
set forth on Schedule 1.02(a) and in the aggregate original principal
amount of One Hundred Seventy Million Dollars ($170,000,000) in form and
substance similar to the form attached hereto as Schedule 1.02(b)(i)
(each, an “Unsecured Note” and together, the “Unsecured Notes”);

(ii)

secured
subordinated promissory notes, issued by INI, payable to the respective Sellers
in the respective amounts set forth on Schedule 1.02(a) and in the
aggregate original principal amount of Eighty Million Dollars ($80,000,000) in
form and substance similar to the form attached hereto as Schedule
1.02(b)(ii) (each, a “Second Lien Note” and together, the “Second
Lien Notes”); and 

(iii)

secured
promissory notes, issued by INI, payable to the respective Sellers in the
respective amounts set forth on Schedule 1.02(a) and in the
aggregate original principal amount of One Hundred and Three Million and Ninety
Two Thousand Seven Hundred and Eighty Four Dollars ($103,092,784) in form and
substance similar to the form attached hereto as
Schedule 1.02(b)(iii) (each, a “First Lien Note” and
together, the “First Lien Notes”). 

The Unsecured Notes, the Second Lien Notes and the First Lien Notes are sometimes
singularly referred to herein as a “Note” and collectively referred to
herein as the “Notes”.  

Upon the Closing, each Seller shall evidence receipt of their respective portions of
the Purchase Price and Closing Cash Payment, as listed in Schedule
1.02(a), by executing and delivering to Purchaser a receipt in form and
substance similar to the form attached hereto as Schedule
1.02(b)(iv).”

(c)

Section
1.02(c) of the Stock Purchase Agreement is hereby amended to add the words “or
Working Capital Escrow Amount” after the words “Escrow Amount” in line three
thereof.

(d)

Section
1.04 of the Stock Purchase Agreement is hereby amended to read in its entirety
as follows:

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“Section
1.04

Division
of Purchase Price.  Purchaser and the Seller Parties agree that the
Purchase Price of the Company and its Target Subsidiaries will be divided among
the capital stock of the Company and each of its Target Subsidiaries for all
purposes (including Tax and financial accounting) so that $100,000 will be
attributed to each of the capital stock of the Target Subsidiaries for an
aggregate of $300,000 and the balance will be attributed to the capital stock of
the Company.  The Parties agree that they will not take or cause to be
taken any position on any Tax Return or attachment thereto before any Taxing
Authority or in any Proceeding that is in any way inconsistent with such
agreement.  The foregoing provisions of this Section 1.04 do not modify or
otherwise affect the provisions referenced in Section 7.04 of this Agreement as
to Tax matters.”

Section
1.3

Disclosure
Schedule Textual Changes.  The second paragraph of Schedule
10.02(e) is hereby amended and restated in its entirety to read as
follows:

“Provided
that, notwithstanding anything in the Agreement to the contrary, (x) any
settlement or resolution of all or any portion of the dispute referenced on
Schedule 10.02(e) that involves any payment, action or inaction or other
injunctive relief with respect to Purchaser or any of its Affiliates shall be
subject to the consent of Purchaser, not to be unreasonably withheld,
conditioned or delayed, and any Liabilities or other costs resulting from any
such settlement or resolution, including any prospective licensing fees, shall
be allocated on an equitable basis between the Sellers and Founders, on the one
hand, and Purchaser, on the other hand, by agreement of such parties or pursuant
to the procedures set forth in Section 12.11 and (y) the Sellers shall promptly
notify Purchaser of any settlement discussions in connection with the dispute
referenced on Schedule 10.02(e) and shall use their reasonable best
efforts to allow Purchaser to participate (in person or telephonically) in any
such settlement discussions and shall promptly provide any documents produced by
or provided to the Sellers with respect to any settlement discussions or any
information requested by Purchasers with respect to any settlement discussions;
provided, further, however, that should Purchaser wish to
consummate a settlement of the patent infringement claims asserted at any
time(s) in connection with the dispute referenced on
Schedule 10.02(e) (as they have been asserted as of the date of this
Agreement, or as they later may be amended) by paying an amount not to exceed
$15,000,000 (such amount, the “Claim Settlement Amount”) in exchange for
a release of the patent infringement claims and a license of sufficient breadth
to permit the Business to operate as Purchaser intends in Purchaser’s reasonable
good faith judgment, then Sellers shall consent without delay or condition
(subject to the equitable allocation principles noted above) to such a
settlement and shall reimburse Purchaser for an equitable portion of the Claim
Settlement Amount pursuant to the equitable allocation principles noted
above.”

Section
1.4

Additional
Schedules.  The schedule attached hereto as Annex A shall
be included in its entirety as Schedule 6.18 of the Stock Purchase
Agreement.  The schedule attached hereto as Annex B shall be
included in its entirety as Schedule 1.02(b)(i) of the Stock Purchase
Agreement.  The schedule attached hereto as Annex C shall be
included in its entirety as Schedule 1.02(b)(ii) of the Stock Purchase
Agreement.  The schedule attached hereto as Annex D shall be
included in its entirety as Schedule 1.02(b)(iii) of the Stock Purchase

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Agreement.
 The schedule attached hereto as Annex E shall be included in
its entirety as Schedule 1.02(b)(iv) of the Stock Purchase Agreement.
 

Section
1.5

Transaction
Bonuses.  The Parties hereto agree that payment of the Transaction
Bonuses contemplated in Sections 6.12(b) and 6.18 of the Stock Purchase
Agreement, and the corresponding determination of reductions in the Purchase
Price and Closing Cash Payment pursuant to Section 1.02(a) of the Stock
Purchase Agreement, if applicable, shall be treated as follows, and Section 6.18
of the Stock Purchase Agreement will be deemed amended accordingly in connection
with these provisions: 

(a)

the
Company has prior to the Closing Date:  

(i)

paid
to ADP an amount equal to $3,229,579 in the aggregate for payment of (x)
Transaction Bonuses immediately upon Closing to certain Bonus Recipients listed
on Schedule 6.18 (subject to the terms and conditions set forth in the
agreements granting such bonuses to the Bonus Recipients) and (y) certain
amounts to Maureen Yen (in the case of Yen, to satisfy a pre-existing
contractual commitment to Yen by the Company);

(ii)

paid
an amount equal to $400,000 to Ira Rothken and $20,000 to Hal Friedman as
Transaction Bonuses; and

such amounts will not
be treated as a reduction in Purchase Price or the Closing Cash Payment to the
extent paid by ADP or the Company for Transaction Bonuses;

(b)

the
Company shall pay the Post-Closing Transaction Bonuses (including any payments
made pursuant to the Rank and File Bonus Letters) in an aggregate amount equal
to $4,531,953 to certain Bonus Recipients as specified on (and in the amounts
specified on) Schedule 6.18 after the Closing Date (subject to the
terms and conditions set forth in the agreements granting such bonuses to the
Bonus Recipients and the individuals listed on Schedule 6.18) as
follows:

(i)

Within
one month after the Closing Date, the Company shall pay certain Bonus Recipients
Post-Closing Transaction Bonuses in an amount equal to $1,000,000 in the
aggregate and such amounts will not reduce the Purchase Price;

(ii)

On
the first anniversary of the Closing Date, the Escrow Amount and/or the
Unsecured Notes shall be reduced by the amount, if any, of the Post-Closing
Transaction Bonuses that are required to be paid on such date and the Purchase
Price will be reduced by the same amount; 

(iii)

On
the second anniversary of the Closing Date, the Escrow Amount and/or the
Unsecured Notes shall be reduced by the amount, if any, of the Post-Closing
Transaction Bonuses that are required to be paid on such date and the Purchase
Price will be reduced by the same amount; and 

(iv)

On
the third anniversary of the Closing Date, the Escrow Amount and/or the
Unsecured Notes shall be reduced by the amount, if any, of the Post-Closing
Transaction Bonuses that are required to be paid on such date and the Purchase
Price will be reduced by the same amount.  

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The
Company shall deliver Rank and File Bonus Letters in form and substance similar
to the form attached hereto as Annex F to the Business Employees listed
on Schedule 6.18 by no later than 10 business days after the Closing
Date.  The Purchaser and Seller Parties shall use their reasonable best
efforts to provide that Founder 1 is present during the distribution of the Rank
and File Bonus Letters to the Business Employees. 

For
the avoidance of doubt, to the extent that any Transaction Bonus has been
treated as a reduction in the Purchase Price, such Transaction Bonus will not be
taken into account in calculating Working Capital for purposes of the Working
Capital adjustment pursuant to Sections 1.03 and 2.04 of the Stock Purchase
Agreement.  The Seller Parties agree that all bonuses paid in connection
with the Transactions will be treated as described above. 

Section
1.6

Transaction
Expenses.  The Parties agree that all of the reasonable attorneys’ and
accountants’ fees and expenses and investment bankers’ expenses incurred by the
Seller Parties to be listed on Schedule 1.02(a) and incurred prior
to November 14, 2007 shall be deducted against the Closing Cash Payment and the
Purchase Price and paid at the Closing and accordingly shall not be taken into
account in calculating Working Capital for purposes of the Working Capital
adjustment pursuant to Sections 1.03 and 2.04 of the Stock Purchase
Agreement, except that the fees of the attorneys for the Seller Parties for the
period from November 9, 2007 to November 13, 2007 in the amount of $8,722.50
attributable to such attorneys’ assistance to Purchaser in connection with
Purchaser’s financing for the Transactions (the “Pre-November 14 Attorney
Fees”) will not be deducted against the Closing Cash Payment or the Purchase
Price and will be paid by Purchaser in accordance with Section 10.4 hereof.
 In the event that any transaction expenses are identified by the Company
after the Closing Date which relate to expenses incurred prior to November 14,
2007, such expenses shall be paid as contemplated by Section 12.01 of the
Stock Purchase Agreement.  

ARTICLE 2

PURCHASE PRICE ADJUSTMENTS

Section
2.1

Textual
Changes.  The following changes are made to the text of Article 2 of
the Stock Purchase Agreement:

(a)

Section
2.02(d) of the Stock Purchase Agreement is hereby amended to read in its
entirety as follows:

“the
Seller Parties shall deliver to Purchaser an amount equal to $4,000,000, by
depositing such amount in certain bank accounts of the Company as designated by
the Purchaser in consultation with the Company, and shall provide reasonable
written or telephonic confirmation immediately prior to the Closing as to the
amount of the funds held in such accounts.”

(b)

Section
2.03 of the Stock Purchase Agreement is hereby amended to read in its entirety
as follows:

“(a)

Notwithstanding
the provisions of Section 2.02, Purchaser shall cause INI to deliver to the
Escrow Agent a portion of the Closing Cash Payment 

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otherwise
deliverable to Sellers pursuant to Section 1.02(a) equal to the sum of Ten
Million Dollars ($10,000,000) (the “Working Capital Escrow Amount”), to
secure only Sellers’ obligation for the Working Capital adjustment described in
Section 2.04.  In addition, at the Closing, Purchaser shall cause INI to
deliver to the Escrow Agent, on behalf of Sellers, the Unsecured Notes in the
original issue amount, to be held in escrow as provided below, and the Common
Stock received upon the conversion of the Unsecured Notes and the proceeds of
the sale of the Common Stock issuable upon conversion pursuant to paragraph (c)
below will be referred to herein as the “Escrow Amount”.

(b)

The
Working Capital Escrow Amount and the Escrow Amount shall be held in escrow (the
“Escrow”) in accordance with the terms of an escrow agreement to be
mutually agreed upon by the Parties (the “Escrow Agreement”).  Any
amount remaining of the Working Capital Escrow Amount after settlement of the
Working Capital adjustment pursuant to Section 2.04 shall be released to the
Sellers’ Representative (as nominee for the account of Trust 1 and for the
account of Trust 2) upon such settlement as provided therein; and any
amount remaining of the Escrow Amount after settlement of the Seller Parties’
indemnification obligations pursuant to Article 10 and settlement Post-Closing
Transaction Bonus obligations pursuant to Section 6.18 (as amended) shall be
released to the Sellers’ Representative (as nominee for the account of Trust 1
and for the account of Trust 2) on the date that is twenty four (24) months
after the Closing Date or on such later date as is necessary to resolve any
disputes with respect to such amounts or to resolve any amounts for Post-Closing
Transaction Bonuses to be paid thereafter, except that any amounts retained
after the date that is twenty four (24) months after the Closing Date shall only
consist of those amounts which are necessary to satisfy the then pending claims
for indemnification payable by the Seller Parties (assuming for these purposes
only the validity of each such claim), and to satisfy any amounts for
Post-Closing Transaction Bonuses to be paid thereafter, with the remaining
amounts released as aforesaid.

(c)

The
Unsecured Notes delivered to the Escrow Agent as provided in
Section 2.03(a) shall be held in the Escrow and shall be available for
set-off pursuant to Section 10.08(b) and Section 6.18 (as amended).
 Sellers shall have the right to exchange their Unsecured Notes for Common
Stock pursuant to the terms of the Unsecured Notes, in which case all such
Common Stock shall be delivered to and held in the Escrow, and further shall
have the right to sell any of such Common Stock held in the Escrow,
provided, that upon any such sale 50% of the proceeds of such sale shall
be delivered to and held in Escrow in lieu of such Common Stock to the extent so
exchanged and 50% of such proceeds shall be released to the applicable Seller;
provided, that in no event will the proceeds of any such sale held in
Escrow pursuant to the foregoing provision exceed $75 million in the aggregate.
 Any remaining amount of the Unsecured Notes, Common Stock issuable upon
exchange of the Unsecured Notes or cash after settlement of the Seller Parties’
indemnification obligations pursuant to Article 10 or settlement of Post-Closing
Transaction Bonus obligations pursuant to Section 6.18 (as amended) shall be
released to the Sellers’ Representative (as nominee for the account of Trust 1
and for the account of Trust 2) on the date that is twenty 

6

four
(24) months after the Closing Date or on such later date as is necessary to
resolve any disputes with respect to such amounts or to satisfy any Post-Closing
Transaction Bonuses to be paid thereafter, except that any amounts retained
after the date that is twenty four (24) months after the Closing Date shall only
consist of those amounts which are necessary to satisfy the then pending claims
for indemnification payable by the Seller Parties (assuming for these purposes
only the validity of each such claim) and the amounts, if any, for Post-Closing
Transaction Bonuses to be paid thereafter, with the remaining amounts released
as aforesaid.  For purposes of determining the number of shares of Common
Stock required to satisfy a claim for indemnification or to satisfy the
Post-Closing Transaction Bonuses to be paid thereafter, the value of the Common
Stock for which all or any portion of the Unsecured Notes are exchanged shall be
deemed to be the higher of (i) the price at which the Unsecured Notes were
exchanged for such Common Stock and (ii) the market price for such Common
Stock prevailing at the time the securities are released to Purchaser in
satisfaction of a claim; provided, that for purposes of the $175 million
limit provided in Section 10.07(a) of this Agreement, such value as so
determined pursuant to the foregoing provisions will be credited against such
$175 million if and to the extent that shares of Common Stock are so used to
satisfy a claim for indemnification (which, for the avoidance of doubt, will not
include any amounts with respect to Post-Closing Transaction Bonuses).  The
foregoing provisions do not modify or otherwise affect the provisions referenced
in Section 7.09 of this Agreement.

(d)

With
due regard to the limitations on liability contained in Article 10, nothing in
this Agreement shall be construed as limiting any Seller Party’s liability for
the Working Capital adjustment to the Working Capital Escrow Amount or for
Purchaser Losses to the Escrow Amount and/or Notes, nor shall payments from the
Working Capital Escrow Amount or the Escrow Amount be considered as liquidated
damages for any breach under this Agreement or any other Transaction
Agreement.”

ARTICLE 3

REPRESENTATIONS AND WARRANTIES OF THE SELLER
PARTIES

Section
3.1

Textual
Changes.  The following changes are made to the text of Article 3 of
the Stock Purchase Agreement:

(a)

Section
3.09(c) of the Stock Purchase Agreement is hereby amended to read in its
entirety as follows:

“Except
as set forth on Schedule 3.09(c), each of the Company and its
Subsidiaries is not a party to or bound by any Tax indemnity agreement, Tax
sharing agreement or similar Contract.  Each of the Company and its
Subsidiaries is not a party to any joint venture, partnership, or other
arrangement or contract which could be treated as a partnership or “disregarded
entity” for United States federal income tax purposes.”

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(b)

Article
3 of the Stock Purchase Agreement is hereby amended to include a new Section
3.35 which shall read in its entirety as follows: 

“Personal
Guarantee Removal.  Neither the Company nor any of its Subsidiaries
created any obligations with respect to Intersphere Payments Ltd. solely as a
result of, or in connection with, the release of Founder 2 as a guarantor
under a Personal Guaranty Agreement by and between Lars Mapstead and Intersphere
Payments Ltd. dated as of June 23, 2003, it being understood that the
Payment Processing Service Agreement between Streamray Inc. and Intersphere
Payments Ltd. dated June 24, 2003 otherwise remains in full force and
effect.”

ARTICLE 4

COVENANTS

Section
4.1

Textual
Changes.  The following changes are made to the text of Articles 6
and 7 of the Stock Purchase Agreement:

(a)

Section
6.03(u) of the Stock Purchase Agreement is hereby amended to read in its
entirety as follows: 

“Declare,
set aside or pay any dividend or distribution or make any direct or indirect
redemption or repurchase of any of its outstanding equity interests, provided,
that the Company shall not be prohibited by this Section 6.03(u) from
declaring and paying dividends on its outstanding capital stock so long as such
payments do not impair the Company’s ability to satisfy Section 2.02(d) of this
Agreement.”

(b)

Section
7.04(f) of the Stock Purchase Agreement is hereby amended to delete its current
text and replace the same to read “[Reserved]”.

(c)

Section
7.11 of the Stock Purchase Agreement is hereby amended to include a new Section
7.11(e) which shall read in its entirety as follows:

“In
the event the Company terminates the Company’s existing Directors & Officers
and Employment Practices Liability Insurance policy with Lloyds of London
(policy number:  DE07AAFU) prior to the date that is the sixth year
anniversary of the Closing Date, the Company shall provide written notice to the
Sellers’ Representative not less than thirty (30) days prior to such termination
and shall cooperate in providing the Sellers’ Representative, at its expense,
with an opportunity to purchase tail insurance coverage as to the acts or
omissions of either Founder, which coverage, if so purchased, will protect any
such Founder from his acts or omissions to the extent of such coverage.”

(d)

Prior
to the Closing, the Parties shall enter into an Assignment Agreement with INI in
form and substance similar to the form attached hereto as Annex G.
 Each of the Parties agree that they shall execute and deliver, or cause to
be executed and delivered from time to time, such instruments, documents,
agreements, consents and assurances and take such other 

8

action
as reasonably may be required to effectively assign and transfer to and vest in
INI the rights and obligations of the Stock Purchase Agreement.

ARTICLE 5

CLOSING DELIVERABLES

Section
5.1

Textual
Changes.  The following changes are made to the text of Article 8 of
the Stock Purchase Agreement:

(a)

Section
8.02(j)(xiii) is hereby amended to read in its entirety as follows:

“Compliance
Certificates.  A certificate of the president and chief financial
officer of the Company and of each Founder certifying compliance with the
conditions set forth in subsections (a), (b), (c) and (d) of this Section
8.02;”

ARTICLE 6

[RESERVED]

ARTICLE 7

INDEMNIFICATION

Section
7.1

Amendment.
 Section 10.02 of the Stock Purchase Agreement is hereby amended and
restated to include the items listed on Annex H hereto.

Section
7.2

Limitation
of Purchaser’s Indemnification Rights.  Purchaser hereby acknowledges
and agrees that it shall not be permitted to make any claim for indemnification
against the Sellers or Founders pursuant to Article 10 of the Stock Purchase
Agreement with respect to, and in the event that the Company or any of its
Subsidiaries is subject to any Purchaser Losses as a result of, any litigation
listed on Schedule 5.07 of the Purchaser’s Disclosure Schedule pursuant
to which the Company or a Subsidiary may become involved following the Company
becoming an indirectly owned subsidiary of Purchaser pursuant to the
Transactions. 

Section
7.3

Method
of Asserting Claims.  Section 10.08 of the Stock Purchase Agreement is
hereby amended and restated in its entirety to read as follows:

“(a)

Escrow.
 All claims for indemnification pursuant to this Article 10 including with
respect to the Final Working Capital Statement, shall be made in accordance with
the provisions of the Escrow Agreement so long as it is by its terms applicable.
 All claims for indemnification by a Purchaser Indemnified Party as to the
Working Capital adjustment pursuant to Section 2.04 shall be satisfied first
from the Working Capital Escrow Amount and all other claims for 

9

indemnification
by a Purchaser Indemnified Party shall be satisfied first from the Escrow Amount
until it is wholly exhausted.

(b)

Right
of Set-Off.  Subject to the last sentence of Section 10.08(a), and
without limiting any other rights hereunder, upon notice to the Sellers’
Representative specifying in reasonable detail the basis for a claim for
indemnification hereunder, any Purchaser Indemnified Party may set off any
amount of Liabilities to which it may be entitled under this Article 10 against
amounts otherwise payable or owed to any Seller (or any successor or assign)
under the Unsecured Notes.  The exercise of such right of set-off by
Purchaser in good faith, whether or not ultimately determined to be justified,
will not constitute an event of default under the Unsecured Notes.”

Section
7.4

Sellers’
Representative.  Section 10.13(a) of the Stock Purchase Agreement is
hereby amended and restated in its entirety to read as follows:

“(a)

Each
Seller Party hereby appoints Founder 1 (together with his permitted successors,
the “Sellers’ Representative”), as its or his true and lawful agent and
attorney-in-fact, with respect to (1) determination of the Final Working
Capital, (2) any claims (including the settlement thereof) made by an
Indemnified Party for indemnification made pursuant to this Article 10, and (3)
any and all other actions taken by the Sellers’ Representative related to this
Agreement or the other Transaction Agreements or any of the Transactions,
including, in furtherance thereof, to:  (i) give and receive notices and
communications to or from Purchaser (on behalf of itself or any other
Indemnified Party) and/or the Escrow Agent relating to this Agreement, the
Escrow Agreement or the Transactions (except to the extent that this Agreement
or the Escrow Agreement expressly contemplates that any such notice or
communication shall be given or received by the Seller Parties individually);
(ii) authorize deliveries to Purchaser of cash from the Working Capital Escrow
Amount in satisfaction of claims asserted by Purchaser as to the Final Working
Capital Statement or from the Escrow Amount for any other Purchaser
indemnification claims (on behalf of itself or any other Indemnified Party,
including by not objecting to claims thereto); (iii) object to any claims by
Purchaser to the Escrow Amount via set-off of the Unsecured Notes; (iv) consent
or agree to, negotiate, enter into settlements and compromises of, and agree to
arbitration and comply with Orders with respect to such claims; (v) assert,
negotiate, enter into settlements and compromises of, and agree to arbitration
and comply with Orders with respect to, any other claim by any Indemnified Party
against any such Indemnifying Party or by any Indemnifying Party against any
Indemnified Party or any dispute between any Indemnified Party and any such
Indemnifying Party, in each case relating to this Agreement, the Escrow
Agreement or the Transactions; (vi) agree to amend on behalf of the Seller
Parties this Agreement, the Escrow Agreement or any other Transaction Agreement;
and (vii) take all actions necessary or appropriate in the judgment of the
Sellers’ Representative for the accomplishment of the foregoing, in each case
(except as otherwise specified) without having to seek or obtain the consent of
any Person under any circumstance.”

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ARTICLE 8

REAFFIRMATION OF OBLIGATIONS

Section
8.1

Full
Force and Effect.  Except as amended in this Amendment, the Stock
Purchase Agreement shall remain in full force and effect.  The Parties
hereby reaffirm their obligations under the Stock Purchase Agreement (as amended
hereunder) and acknowledge and agree that each of Trust 1 and Trust 2 is
and was a party to the Stock Purchase Agreement and the applicable Transaction
Agreements as each of “Trust 1” and “Trust 2” as defined therein, even
though Trust 1 and Trust 2 were inadvertently identified therein as “The
Andrew B. Conru Trust, established November 6, 2001” and “The Lars Mapstead
Trust, established April 18, 2002”.  Founder 1 and Trust 1 acknowledge and
agree that any document previously or hereafter executed by Trust 1 with the
designation of either “The Andrew B. Conru Trust, established November 6, 2001”
or “Andrew B. Conru Trust Agreement” is and shall be legally binding and
enforceable in accordance with its terms upon Trust 1.  Founder 2 and Trust
2 acknowledge and agree that any document previously or hereafter executed by
Trust 2 with the designation of either “The Lars Mapstead Trust, established
April 18, 2002” or “Mapstead Trust, created on April 16, 2002” is and shall be
legally binding and enforceable in accordance with its terms upon Trust 2.
 

ARTICLE 9

DEFINITIONS

Section
9.1

Textual
Changes.  The following changes are made to the text of Article 11 of
the Stock Purchase Agreement:

(a)

The
term “General Escrow Amount” is hereby deleted in its entirety from the
Stock Purchase Agreement.

(b)

The
term “Transaction Bonuses” is hereby amended in its entirety to read as
follows:  “Transaction Bonuses” means amounts payable by the Company
to certain Bonus Recipients as provided in Section 6.18 upon consummation of the
Transactions, with certain amounts paid upon the occurrence of the Closing, and
certain amounts paid after the Closing and referenced as Retention Bonuses in
the agreements pursuant to which such amounts are payable.

(c)

The
following defined terms are hereby added to the Stock Purchase Agreement:

(i)

“Rank
and File Bonus Letter” means a letter to be provided to the Business
Employees by the Company after the Closing to enable such Business Employees to
receive Transaction Bonuses.

(ii)

“Retention
Bonuses” means any portion of the Transaction Bonuses payable pursuant to
the Rank and File Bonus Letter.

(iii)

The
terms “INI”, “First Lien Notes”, “Second Lien Notes”, and
“Unsecured Notes” shall have the meanings set forth in Section
1.02(b).

11

Section
9.2

Other
Definitional Changes.  The reference in the third sentence of Section
2.04(d) of the Stock Purchase Agreement to the term “Notes” will be deemed to
refer only to the Unsecured Notes.  In addition, where the term “Note” or
“Notes” is used in the Stock Purchase Agreement in relation to conversion or the
Common Stock issuable upon conversion thereof, such “Note” or “Notes” term is
deemed to refer only to the Unsecured Note or Unsecured Notes and such
“conversion” term is deemed to refer to “exchange”.

ARTICLE 10

MISCELLANEOUS

Section
10.1

Applicability
of SPA Provisions.  The Parties hereby agree that the provisions of
Sections 12.07, 12.08, 12.11, 12.12, 12.13, 12.14 and 12.15 shall apply to this
Amendment as if fully restated herein.

Section
10.2

Waivers.
 The Parties agree that there shall be no adjustment in Purchase Price
through the operation of the provisions of Section 6.05(b)(i) of the Stock
Purchase Agreement.  

Section
10.3

Contractor
Agreement.  That certain Independent Contractor Agreement, dated as of
September 21, 2007, by and between the Company and Hinok Media
Incorporated, an affiliate of Founder 1 (“Consultant”) (the
“Consulting Agreement”) is hereby amended, effective at the Closing, to
provide that Consultant will receive an additional $5 million of
compensation from the Company over the 36 month period immediately following the
Closing, payable as follows:  $1 million on the first anniversary of the
Closing Date, $1 million on the second anniversary of the Closing Date, and
$3 million on the third anniversary of the Closing Date. 

Section
10.4

Fees
and Expenses.  Purchaser shall reimburse the Seller Parties for all
reasonable attorneys’ and accountants’ fees and expenses and investment bankers’
expenses incurred in the ordinary course by the Seller Parties for which it has
received written invoices related to the Transactions (including, for the
avoidance of doubt, the efforts of the Seller Parties in connection with
assisting Purchaser in securing financing from the holders of the First Lien
Notes and in documenting all agreements relating to the financing contemplated
by the First Lien Notes and the Second Lien Notes), and the Seller Parties shall
not be required to pay attorneys’ and accountants’ fees and expenses and
investment bankers’ expenses by the Company and otherwise to be paid by the
Seller Parties pursuant to Section 12.01 of the Stock Purchase Agreement,
in each case only as to (x) services rendered by attorneys, accountants and
investment bankers for the Seller Parties after November 13, 2007
(including with respect to attorney’s fees attributable to the financing of
Purchaser) and (y) the Pre-November 14 Attorney Fees.  Such fees and
expenses must be tracked by the relevant professional, with such fees payable at
Closing, or if the Stock Purchase Agreement is terminated without Closing
occurring, payable within five (5) days after written invoices are provided to
Purchaser. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Section
10.5

Board
Seat.  That certain observer letter agreement, dated as of
September 21, 2007 (the “Observer Letter Agreement”), by and among
Purchaser and the Founders is hereby amended to provide that (i) the
Founders’ right thereunder to appoint an observer (a “Board Observer”) to
the board of directors of Penthouse Media Group Inc. (the “Board”) shall
remain dormant and unenforceable until such time as the Founders no longer have

12

any
right to appoint and maintain a director to the Board of Penthouse Media Group
Inc. and to have such director elected by the holders of at least a majority of
the Common Stock, and thereafter shall become fully enforceable in accordance
with the terms and limitations of the Observer Letter Agreement and
(ii) any such Board Observer will be entitled to receive copies of all
materials distributed at all meetings of the Board (and every committee
thereof). 

Section
10.6

Competitive
Restrictions.  In the event that a failure to make a cash interest
payment under the terms of the First Lien Notes (“Payment Default”),
which is not cured within sixty (60) days after delivery of written notice of
such Payment Default to Purchaser, results in the Collateral Agent (as defined
in the First Lien Note) making demand for the immediate repayment of all
Obligations (as defined in the First Lien Note) under the First Lien Notes, the
provisions of Sections 7.03, 7.06, 7.07 and 7.08 of the Stock Purchase Agreement
(the “Covenants”) shall be suspended until such time as the Payment
Default is cured by Purchaser (the “Suspension Period”); and, (a) the
Sellers shall have no liability with respect to any breaches of the Covenants
committed during the Suspension Period, and (b) the Sellers may continue only
that activity which was commenced during the Suspension Period in perpetuity
without such activity  considered a breach of the Covenants after any such
Suspension Period.

Section
10.7

Technology
License Agreement.  The parties acknowledge that concurrently with the
Closing, the Company is entering into a certain Technology License Agreement
with affiliates of each Seller, Hinok Media Incorporated and Legendary
Technology Incorporated (the “License Agreement”).  The Parties
hereto agree that any valid claim for indemnification by Licensor (as defined in
the License Agreement) against either Licensee (as defined in the License
Agreement) for any Losses in connection with any Third-Party Claim shall first
be satisfied by offset against the respective Unsecured Note and/or cancellation
of the respective Common Stock or payment of the respective cash under the
Escrow Amount pursuant to Section 2.03 of the Stock Purchase Agreement and the
terms of the Escrow Agreement, until such time as the Escrow Agreement is no
longer in full force and effect and thereafter shall be satisfied by payments
from the applicable Licensee until such time as the aggregate Purchaser Losses
pursuant to Section 10.02 of the Purchase Agreement (inclusive of any losses for
indemnification claims satisfied in accordance with the License Agreement)
equals or exceeds $175,000,000 after which the Licensees shall have no further
indemnification obligations under the License Agreement; provided that
the rights to assume the entire control of the defense of a Third-Party Claim
pursuant to Section 10.04 of the Purchase Agreement (including all rights and
limitations thereunder) shall apply to any Third-Party Claim made under the
License Agreement.

[remainder of page intentionally blank]

13

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

PURCHASER:

PENTHOUSE
MEDIA GROUP INC.

By:
/s/ Marc H. Bell

Name:

Title:

[Signature Page to Amendment to the Stock Purchase
Agreement]

14

TRUST
1:

ANDREW
B. CONRU TRUST AGREEMENT

By:
/s/ Andrew B. Conru

       Andrew
B. Conru, Trustee

[Signature Page to Amendment to the Stock Purchase
Agreement]

15

TRUST
2:

MAPSTEAD
TRUST, 

CREATED
ON APRIL 16, 2002

By:
/s/ Lars Mapstead

       Lars
Mapstead, Trustee

By:
/s/ Marin A. Mapstead

       Marin
Mapstead, Trustee

[Signature Page to Amendment to the Stock Purchase
Agreement]

16

COMPANY:

VARIOUS,
INC.

By:
/s/ Rob Brackett

Name:

Title:

[Signature Page to Amendment to the Stock Purchase
Agreement]

17

FOUNDER
1:

ANDREW
B. CONRU

/s/
Andrew B. Conru

[Signature Page to Amendment to the Stock Purchase
Agreement]

18

FOUNDER
2:

LARS
MAPSTEAD

/s/
Lars Mapstead

[Signature Page to Amendment to the Stock Purchase
Agreement]

19Exhibit 10.29

Exhibit 10.29

EXECUTION VERSION

ASSIGNMENT AGREEMENT

THIS ASSIGNMENT AGREEMENT (this “Agreement”) is made and entered into this 6th day of December, 2007 by and between Penthouse Media Group Inc., a Nevada corporation (“Assignor”), and Interactive Network, Inc., a Nevada corporation (“Assignee”), and is agreed to and acknowledged by Various, Inc., the Andrew B. Conru Trust Agreement, Andrew B. Conru Trustee, the Mapstead Trust, created on April 16, 2002, Lars and Marin Mapstead Trustees, Andrew B. Conru and Lars Mapstead (collectively, the “Seller Parties”).  Capitalized terms used without definitions shall have the meaning set forth in the Stock Purchase Agreement (as defined below).

RECITALS

A.

Assignor and the Seller Parties are parties to that certain Stock Purchase Agreement, dated as of September 21, 2007, as amended (the “Stock Purchase Agreement” and together with each of the other agreements or instruments entered into in connection therewith, including but not limited to the Escrow Agreement and each of the Transaction Agreements, collectively, the “Purchase Documents”), pursuant to which Assignor will acquire 100% of the Target Shares of Various, Inc. and the Target Subsidiaries (the “Various Acquisition”).

B.

Reference is made to that certain Securities Purchase Agreement (the “Financing Agreement”), dated as of the date hereof, by and among Assignee, Assignor, each Subsidiary of Assignee and Assignor listed as a “Secured Guarantor” on the signature pages thereto, the holders from time to time party thereto (each a “Holder” and collectively, the “Holders”) and U.S. Bank National Association as administrative agent and collateral agent, pursuant to which the Holders will extend financial accommodations to Assignee to consummate the Various Acquisition.

C.

The Holders have required, as a condition precedent to consummating the transactions contemplated by the Financing Agreement and each other instrument or agreement entered into in connection therewith (collectively, the “Financing Documents”), that Assignor assign to Assignee for the benefit of Assignee, all of Assignor’s rights and remedies with respect to the Stock Purchase Agreement and each Purchase Document, in accordance with the terms and conditions set forth herein.

D.

In connection with the Financing Documents, Assignor now desires to assign all of its rights and remedies under the Stock Purchase Agreement and each of the other Purchase Documents to Assignee, and Assignee desires to accept such assignment, all subject to the terms and conditions hereof.

AGREEMENT

NOW THEREFORE, in consideration of the above promises, as well as other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto agree as follows:

1.    

Assignment.  As of the date hereof, Assignor hereby irrevocably grants, conveys, transfers, assigns, and delivers unto Assignee and its successors and assigns, all of Assignor’s rights, remedies, privileges, claims, title and interest in and to the Stock Purchase Agreement and each Purchase Document, including without limitation: (i) any and all rights to indemnification thereunder; (ii) rights and remedies with respect to any breach by the Seller Parties of any of their representations, warranties, or covenants thereunder; and (iii) any rights to payment thereunder.

2.    

Limited Assumption.  Notwithstanding anything contained in this Agreement, Assignor expressly acknowledges and agrees that it shall remain liable under the Stock Purchase Agreement and all of the other Transaction Documents and will observe and perform all of the conditions and obligations under the Stock Purchase Agreement and each of the other Transaction Documents which Assignor is a party, other than payment of the cash portion of the Purchase Price which shall be provided by Assignee, and that neither this Agreement, nor any action taken pursuant hereto, shall cause Assignee to be under any obligation or liability in any respect whatsoever to any observance or performance of any of the representations, warranties, conditions, covenants, agreements or terms of the Stock Purchase Agreement or any of the other Transaction Documents other than joint and several liability with Assignor with respect to monetary damages, if any, arising under Article 7 and Section 10.03 of the Stock Purchase Agreement, provided that the payment of any such claims by Assignee arising under Article 7 and Section 10.03 of the Stock Purchase Agreement shall be subject to the terms and conditions of the Seller Subordination Agreement (as defined in the Financing Agreement). Assignor will at no time be responsible for any specific performance or injunctive relief to which the Seller Parties may be entitled under the Stock Purchase Agreement. 

3.    

Representations and Warranties of Assignor  Assignor hereby represents and warrants to Assignee as follows:

(a)   

Assignor is duly organized and validly existing under the laws of the State of Nevada and is in good standing under such laws.

(b)   

Assignor has full corporate power and authority to execute, deliver and perform its obligations under this Agreement and to assign and transfer all of its rights and remedies under the Stock Purchase Agreement as contemplated by this Agreement.

(c)   

This Agreement has been duly and validly executed and is a valid and binding obligation of Assignor enforceable against Assignor in accordance with its terms, except as may be limited by any bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights generally or by general principles or equity.

(d)   

The rights assigned by Assignor pursuant to this Agreement are not subject to any prior transfer, conveyance or assignment by Assignor or any agreement to assign, convey or transfer, in whole or in part.

2

4.    

Representations and Warranties of Assignee
.  Assignee hereby represents and warrants to Assignor as follows:

(a)   

Assignee is duly organized and validly existing under the laws of the State of Nevada and is in good standing under such laws.

(b)   

Assignee has full corporate power and authority to execute, deliver and perform its obligations under this Agreement and to assume all of Assignor’s rights and remedies under the Stock Purchase Agreement as contemplated by this Agreement.

(c)   

This Agreement has been duly and validly executed and is a valid and binding obligation of Assignee enforceable against Assignee in accordance with its terms, except as may be limited by any bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights generally or by general principles or equity.

5.    

Further Action.  Assignor and Assignee agree that each shall execute and deliver, or cause to be executed and delivered from time to time, such instruments, documents, agreements, consents and assurances and take such other action as the other party reasonably may require to more effectively assign and transfer to and vest in such party the rights and obligations assigned hereunder.  

6.    

Miscellaneous

(a)   

Other than as set forth herein, the provisions of the Stock Purchase Agreement shall remain in full force and effect and shall not be amended, modified, waived, impaired or otherwise affected hereby.

(b)   

This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to conflicts of laws principles thereof.

(c)   

This Agreement may be executed by facsimile signatures and in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.  This Agreement shall become effective only when actually signed by each party hereto and each such party has received counterparts hereof signed by all of the other parties hereto.

3

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

ASSIGNOR:

PENTHOUSE MEDIA GROUP INC., a Nevada corporation

By: /s/ Paul Asher

Name: Paul Asher

Title: Secretary

ASSIGNEE:

INTERACTIVE NETWORK, INC., a Nevada corporation

By: /s/ Paul Asher

Name: Paul Asher

Title: Secretary

Each of the undersigned hereby consents and agrees to the terms of this Assignment Agreement, as of the day and year first written above.

VARIOUS, INC.

By: /s/ Daniel C. Staton

Name:  Daniel C. Staton

Title:  CFO

ANDREW B. CONRU TRUST AGREEMENT

/s/ Andrew B. Conru

By:  Andrew B. Conru, Trustee

MAPSTEAD TRUST, created on April 16, 2002

/s/ Lars Mapstead

By:  Lars Mapstead, Trustee

/s/ Marin A. Mapstead

By:  Marin A. Mapstead, Trustee

ANDREW B. CONRU

/s/ Andrew B. Conru

LARS MAPSTEAD

/s/ Lars Mapstead

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