Document:

Exhibit 4.56

Exhibit 4.56

EXECUTION VERSION

FRIENDFINDER NETWORKS INC.

15.0% SENIOR SECURED NOTES DUE 2010 (ISSUED
2005) 

15.0% SENIOR SECURED NOTES DUE 2010 (ISSUED
2006) 

THIRD AMENDMENT AND LIMITED WAIVER TO 

SECURITIES PURCHASE AGREEMENTS 

October 8, 2009

          This
THIRD AMENDMENT AND LIMITED WAIVER (this
“Amendment and Waiver”), effective
as of the Effective Date (as defined below), is entered into by and among
FriendFinder Networks Inc., formerly known as Penthouse Media Group Inc., a
Nevada corporation (the “Issuer”),
the guarantors whose names appear on the signature pages hereto (the “Guarantors”), the holders whose names
appear on the signature pages hereto (the “Holders”)
of the Issuer’s outstanding (a) notes originally issued as 11.0% Senior Secured
Notes due 2010 (as heretofore amended and restated as 15.0% Senior Secured
Notes due 2010, the “2005 Notes”),
and (b) 15.0% Senior Secured Notes due 2010 (as heretofore amended and
restated, the “2006 Notes”) and
U.S. Bank National Association, as Administrative Agent and Collateral Agent
under each of SPAs hereinafter referred to. 

RECITALS

          WHEREAS, this Amendment and Waiver is being
entered into with reference to (i) the Securities Purchase Agreement (11.0%
Senior Secured Notes Due 2010) dated as of August 17, 2005, among the Issuer,
the “Guarantors” defined therein and party thereto, the Holders as “Holders”
defined therein and party thereto, and U.S. Bank National Association (the “Agent”), as “Administrative
Agent” and
“Collateral Agent” defined therein and party thereto (as heretofore amended,
the “2005 SPA”) and the 2005 Notes
issued pursuant thereto, and (ii) the Securities Purchase Agreement (15.0%
Senior Secured Notes Due 2010) dated as of August 28, 2006, among the Issuer,
the “Guarantors” defined therein and party thereto, the Holders as “Holders”
defined therein and party thereto, and the Agent, as “Administrative Agent” and
“Collateral Agent” defined therein and party thereto (as heretofore amended,
the “2006 SPA” and, collectively
with the 2005 SPA, the “SPAs”) and
the 2006 Notes issued pursuant thereto. 

          WHEREAS, the Issuer has advised the holders
of the 2005 Notes and the 2006 Notes that the Issuer and/or its Subsidiaries
are seeking waivers from the respective holders, which waivers are effective as
of the date hereof, of (a) the Senior Secured Notes due 2011 of Interactive
Network, Inc. (the “INI First Lien Notes”),
(b) the Subordinated Secured Notes due 2011 of Interactive Network, Inc. (the “INI Second Lien Notes”) and (c) the
13%
Subordinated Term Loan Notes due 2011 of FriendFinder Networks Inc. (the “FFN Subordinated Notes”) in the forms
attached hereto as Exhibits A, B and C respectively (all such waivers,
collectively, the “Other Waivers”);

          WHEREAS, the Issuer, Interactive Network,
Inc. and the holders of the 6% Subordinated Convertible Notes due 2011 of
Interactive Network, Inc. (the “INI
Convertible Notes”) are executing the letter agreement attached
hereto as Exhibit D (the “INI
Convertible Notes Agreement”) and the Issuer is seeking to amend and
restate the INI Convertible Notes in the form attached hereto as Exhibit E
(the “INI Convertible Notes Amendment”);

1

          WHEREAS, the Issuer has advised the holders
of the 2005 Notes and the 2006 Notes that the Issuer is seeking the consent of
the requisite stockholders of the Issuer to (a) the amendment and restatement
of the Certificate of Designations, Preferences and Rights of Series A
Convertible Preferred Stock of the Issuer in substantially the form of Exhibit
F-1 attached hereto (the “Series A
Amendment”), and (b) the amendment and restatement of the
Certificate of Designations, Preferences and Rights of Series B Convertible
Preferred Stock of the Issuer in substantially the form of Exhibit F-2
attached hereto (the “Series B Amendment”);

          WHEREAS, concurrently with the Other
Waivers and the INI Convertible Notes Agreement, the Issuer hereby solicits the
consents of the Holders to waive or amend certain provisions of the SPAs on the
terms and conditions set forth herein, which signatories hereto constitute all
of the Holders (and consequently, the Required Holders); and 

          WHEREAS, Section 12.02 of each of the SPAs
permits the Holders to waive or amend the provisions of each of the SPAs
described herein; 

          NOW, THEREFORE, in consideration of the
foregoing premises, the agreements herein contained and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows: 

          Section
1. Definitions. 

                    Capitalized
terms used herein without other definition shall have the respective meanings
herein assigned to such terms in the applicable SPA. 

          Section
2.  Limited Waiver of Certain Provisions
of the SPAs. 

                    The
Holders hereby waive the provisions of the following Sections of each of the
SPAs and, where specified, other agreements to which the Issuer is a party,
solely to the extent specified below: 

                    2.1
Section 7.01(a)(2) to the extent necessary to permit the Issuer to deliver no
later than five calendar days after the Effective Date the financial
information required to be delivered thereby for its Fiscal Year ended December
31, 2007 and its Fiscal Year ended December 31, 2008; 

                    2.2
Section 7.01(a)(4) to the extent necessary to permit the Issuer to deliver no
later than five calendar days after the Effective Date the Officer’s
Certificates required to be delivered thereby for its fiscal quarters ended
March 31, 2008, June 30, 2008, September 30, 2008, March 31, 2009 and June 30,
2009; 

                    2.3
Section 7.01(a)(6) with respect to matters waived by this Amendment and Waiver;

2

                    2.4
Sections 7.01(a)(12) and 7.02(l) to the extent necessary to permit the Issuer
and Friendfinder Network, Inc. to change their names to “FriendFinder Networks
Inc.” and “FriendFinder California Inc.,” respectively, as effected on July 1,
2008 and reflected in the certified amendments to their respective Articles of
Incorporation attached hereto as Exhibit G; 

                    2.5
Section 7.02(l) to the extent necessary to permit (1) the Articles of
Incorporation of the Issuer to be amended and restated in substantially the
form of Exhibit H attached hereto (and the filing thereof with the
Nevada Secretary of State) and (2) a reverse stock split of the Series A
Preferred Stock of the Issuer, a reverse stock split of the Series B
Convertible Preferred Stock of the Issuer and a reverse stock split of the
Common Stock of the Issuer, each in the range of 15:1 to 25:1, as determined by
the Board of Directors of the Issuer to be in the best interests of the Issuer,
in each case in connection with the consummation of a Qualified Initial Public
Offering; 

                    2.6
Section 7.02(l) to the extent necessary to permit (1) the amendment and
restatement of the bylaws of the Issuer in substantially the form of Exhibit
I attached hereto, (2) the Series A Amendment (and the filing thereof with
the Nevada Secretary of State), or, if all shares of Series A Convertible
Preferred Stock of the Issuer have been converted into common stock of the
Issuer, the withdrawal of the Certificate of Designations, Preferences and
Rights of Series A Convertible Preferred Stock of the Issuer and (3) the Series
B Amendment (and the filing thereof with the Nevada Secretary of State), or, if
all shares of Series B Convertible Preferred Stock of the Issuer have been
converted into common stock of the Issuer, the withdrawal of the Certificate of
Designations, Preferences and Rights of Series B Convertible Preferred Stock of
the Issuer, in each case in connection with the consummation of a Qualified
Initial Public Offering; 

                    2.7
Sections 7.01(b) and 7.03 to the extent of any Default or Event of Default
arising from, or in connection with, any VAT Liability of the Issuer,
Interactive Network, Inc. or any Subsidiary of the Issuer or Interactive
Network, Inc. through the Effective Date that relates to activities of Various,
Inc. or its Subsidiaries prior to July 1, 2008; 

                    2.8
Section 7.01(j) with respect to any change in the location of any Collateral in
connection with the leased locations at 220 Humboldt Ct., Sunnyvale, CA 94089
and 19749 Dearborn Street, Chatsworth, CA 91311; 

                    2.9
Sections 7.01(i) and (m) to the extent necessary to permit the Issuer to have
delivered the executed joinder agreements, and such other documents,
instruments and agreements required thereby, of FriendFinder United Kingdom
Ltd., Streamray Processing Ltd., Tan Door Media, Inc., Streamray Studios Inc.,
Wight Enterprise Limited and Ventnor Enterprise Limited more than 10 Business
Days after the acquisition of such Subsidiaries but prior to the Effective
Date; 

                    2.10
Sections 7.01(i) and (m) with respect to FriendFinder Processing (India)
Private Limited, FriendFinder GmbH, Streamray Processing Philippines, Inc.,
FriendFinder Processing Philippines, Inc. and FriendFinder (Switzerland) AG; 

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                    2.11
Sections 7.01(i) and (m) with respect to the applicable Obligor’s failure
through the Effective Date to enter into Account Control Agreements with
respect to all accounts listed on Schedule 7.01(u); 

                    2.12
Section 7.01(q) with respect to the Issuer’s failure through the Effective Date
to cease production of all films immediately upon breach of Section 7.01(s) of
such SPA; 

                    2.13
Section 7.01(s)(1) with respect to the Issuer’s failure to cause the
Distributor to sell an average of at least 4,000 units per film within 90 days
after “street date” release, with such sales generating average net revenue to
the Obligors of at least $6.50 per unit, through the Effective Date; 

                    2.14
Section 7.01(s)(2) with respect to the Issuer’s failure to cause the
Distributor to sell an average of at least 10,000 units per film within three
years after “street date” release, through the Effective Date; 

                    2.15
Solely as it concerns frozen assets not exceeding €610,343 with respect to that
certain Various, Inc. credit card processing account administered by Global
Collect, NV located in the Netherlands, the obligation of any Obligor not to
create, incur, assume or suffer to exist any Liens other than permitted by
Section 7.02(a); 

                    2.16
With respect to the payments made to Bell & Staton, Inc. or any of its
affiliates set forth on Schedule 1-A, any obligation of any Obligor
pursuant to Section 7.02(h) not to make payments except as set forth on
Schedule 7.02(h) to the Securities Purchase Agreement and pursuant to Section
7.02(j) not to make any payments to Affiliates other than as permitted by
Section 7.02(h), to the extent that the management payments listed on Schedule
1-A were made during the continuance of an Event of Default; 

                    2.17
With respect to the payments made to Hinok Media Inc. (and payments made to
YouMu, Inc. in lieu of Hinok Media Inc. in violation of Section 10 of the
Independent Contractor Agreement, dated September 21, 2007, between Hinok Media
Inc. and Various, Inc. which prohibits such assignment) and Legendary
Technology Inc. set forth on Schedule 1-B, the obligation of any Obligor
pursuant to Section 7.02(h) not to make payments to any stockholder or equity
holder except as set forth on Schedule 7.02(h) to the Securities Purchase
Agreement and pursuant to Section 7.02(j) not to enter into transactions with
Affiliates other than permitted by Section 7.02(h)(v); 

                    2.18
Solely with respect to the entry by the Issuer into agreements with each of
Marc H. Bell, Daniel C. Staton, Andrew Conru and Lars Mapstead or their
affiliates as described in Section 7 of the INI Convertible Notes Agreement,
any obligation of the Issuer pursuant to SPA Section 7.02(j) not to enter into
transactions with Affiliates other than permitted by SPA Section 7.02(h);
provided, for the avoidance of doubt, that no payments of any kind under such
agreements will be made until the prior repayment in full in cash of the 2005
Notes and 2006 Notes; 

                    2.19
Solely as concerns the legal entity name change from Penthouse Media Group Inc.
to FriendFinder Networks Inc., the obligation pursuant to Issuer Pledge and Security
Agreement Section 4 to not change its name, organizational structure or
jurisdiction of organization in any manner, without providing at least 15 days’
prior written notice to Agent; 

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                    2.20
Solely as concerns the legal entity name change from FriendFinder Network, Inc.
to FriendFinder California Inc., the obligation pursuant to the Guarantor
Pledge and Security Agreement Section 4 to not change its name, organizational
structure or jurisdiction of organization in any manner, without providing at
least 15 days’ prior written notice to Agent; 

                    2.21
Section 7.02(l) solely with respect to the amendments set forth in the INI
Convertible Notes Amendment in the form attached hereto as Exhibit E
(which, for the avoidance of doubt, shall not permit the granting of any
security interests with respect to the INI Convertible Notes until the 2005
Notes and 2006 Notes have been repaid in full) and Sections 7.02(b) and 7.03(e)
solely to the extent that the adjustment in principal amount reflected in the
INI Convertible Notes Amendment or any adjustment in principal amount made in
accordance with Section 4(a) of the INI Convertible Notes Agreement in the form
attached hereto as Exhibit D constitutes an increase in Indebtedness;  

                    2.22
Sections 7.02(l) and 7.02(q) solely with respect to the amendments set forth in
the Other Waivers in the respective forms attached hereto and the amendment and
waiver agreements with respect to the FFN Subordinated Notes dated December 19,
2008 and March 20, 2009 (provided that such waiver is given with respect to the
FFN Subordinated Notes amendment and waiver agreement dated December 19, 2008,
only provided that the amendment fee described therein has been amended and
restated pursuant to the Other Waiver pertaining to the FFN Subordinated Notes
to provide that such fee will be paid in additional FFN Subordinated Notes
rather than in 2005 Notes and 2006 Notes); 

                    2.23
Sections 7.02(b), 7.02(l), and 7.03(e) to the extent necessary to permit the
payment of (i) the Amendment Fee set forth in Section 4 of this
Amendment and Waiver and (ii) the amendment fee provided in the Other Waiver
that pertains to the FFN Subordinated Notes, which amendment fees described in
(i) and (ii) above are to be paid in additional Indebtedness; 

                    2.24
Section 9.01(e) with respect to defaults arising under the INI First Lien
Notes, the INI Second Lien Notes and the FFN Subordinated Notes, solely to the
extent such defaults have been duly waived pursuant to the Other Waivers and
the amendment and waiver agreements with respect to the FFN Subordinated Notes
dated December 19, 2008 and March 20, 2009; 

                    2.25
Section 9.01(n) solely as it concerns the consummation of a Qualified Initial
Public Offering; and 

                    2.26
Section 9.04 with respect to the Issuer’s failure to hold a meeting of the
Board of Directors for the fiscal quarter ended March 31, 2008 and for the
fiscal quarter ended September 30, 2008. 

5

                    2.27
The parties hereto agree and acknowledge that (i) for purposes of Section 9 of
the Seller Note Subordination Agreement dated as of December 6, 2007 (the “Seller Note Subordination Agreement”), the
execution by U.S. Bank National Association of this Amendment and Waiver
constitutes the prior written consent of the 2005 Agent and the 2006 Agent for
purposes of Section 9 of the Seller Note Subordination Agreement with respect
to the modifications set forth in the INI Convertible Notes Amendment (which
INI Convertible Notes Amendment does not require the grant of any security
interest to secure the INI Convertible Notes until repayment in full of the
2005 Notes and 2006 Notes without the consent of the Required Holders), (ii)
for purposes of Section 5.5(b) of the Intercreditor and Subordination Agreement
(PMGI Senior Lien Notes/Subordinated Guaranty by PMGI of Interactive Notes/Marc
Bell Notes/Various Seller Notes Guaranties) dated as of December 6, 2007 (the “PMGI Guaranty Intercreditor
Agreement”)
the execution by the Holders of this Amendment and Waiver constitutes the
written consent of the Senior Lien Claimholders for purposes of Section 5.5(b)
of the PMGI Guaranty Intercreditor Agreement with respect to the modifications
set forth in the Other Waiver attached as Exhibit C hereto, and (iii)
payment of the amendment and waiver fees pursuant to the Other Waivers, payment
in kind of any interest on the FFN Subordinated Notes and payment in kind of
any interest pursuant to the INI Convertible Notes Amendment are not subject to
the payment subordination provisions of Section 4.1 of the PMGI Guaranty
Intercreditor Agreement; provided, for the avoidance of doubt, that no interest
on the FFN Subordinated Notes or INI Convertible Notes will be paid in cash
until the prior repayment in full in cash of the 2005 Notes and 2006 Notes. 

          Section
3. Amendments to Certain Covenants of the SPAs. 

                    Subject
to all of the terms and conditions hereof, the Holders hereby consent to the
amendments set forth below, effective on the Effective Date: 

                    3.1
All references to “Penthouse Media Group Inc.” and “PMGI” in each of the SPAs
are hereby deleted and replaced with “FriendFinder Networks Inc. (f/k/a
Penthouse Media Group Inc.)” and “FFN”, respectively. 

                    3.2
The definition of “Affiliate” in Section 1.01 of each of the SPAs is amended by
deleting the last sentence thereof and replacing it with the following: 

          “For
the purposes of this Agreement, Marc H. Bell, Daniel Staton, Andrew B. Conru
Trust Agreement, Andrew B. Conru Trustee, Mapstead Trust, created on April 16,
2002, Lars and Marin Mapstead Trustees, Andrew B. Conru and Lars Mapstead, and
their respective Affiliates and family members shall be considered Affiliates
of the Obligors.” 

                    3.3
The definition of “Consolidated Interest Expense” in Section 1.01 of each of
the SPAs is amended to include any Amendment Fee provided for in Section 4
hereof. 

                    3.4
The definition of “Consolidated Coverage Ratio” in Section 1.01 of the 2006 SPA
is amended in its entirety to read as follows: 

          ““Consolidated
Coverage Ratio” means, with respect to the Issuer on any Determination Date,
the ratio of: 

               (a)
Consolidated EBITDA for the applicable Measurement Period, to 

6

               (b)(i)
Consolidated Interest Expense of the Issuer during such Measurement Period plus
(ii) dividends or distributions on or in respect of any Capital Stock of any
Obligor paid during such Measurement Period (except dividends or distributions
paid to the Issuer or another Obligor); provided that the Consolidated Coverage
Ratio shall be calculated giving pro forma effect, as of the beginning of the
applicable Measurement Period, to any acquisition, incurrence, permanent
repayment or redemption of Indebtedness (including the Notes), issuance or
redemption of Disqualified Capital Stock, acquisition, Asset Sale, or purchases
of assets that were previously leased, at any time during or subsequent to such
Measurement Period, but on or prior to the applicable Determination Date. 

          In
making such computation, Consolidated Interest Expense: 

               (a)
attributable to any Indebtedness bearing a floating interest rate shall be
computed on a pro forma basis as if the rate in effect on the date of
computation had been the applicable rate for the entire Measurement Period, 

               (b)
attributable to interest on any Indebtedness under a revolving Credit Facility
shall be computed on a pro forma basis based upon the average daily balance of
such Indebtedness outstanding during the applicable Measurement Period, 

               (c)
attributable to non-cash interest expense resulting from the amortization of
the original issue discount on the Notes, the Existing Notes and the
Subordinated Notes in accordance with GAAP shall be excluded from such
computation, and 

               (d)
excludes any Amendment Fees provided in Section 4 of Third Amendment and
Limited Waiver to Securities Purchase Agreements dated as of October 8, 2009. 

               For
purposes of calculating Consolidated EBITDA of the Issuer for the applicable
Measurement Period, 

               
(a) any Person that is a Subsidiary on such Determination Date (or would become
a Subsidiary on such Determination Date in connection with the transaction that
requires the determination of the Consolidated Coverage Ratio) shall be deemed
to have been a Subsidiary at all times during such Measurement Period, 

               (b)
any Person that is not a Subsidiary on such Determination Date (or would cease
to be a Subsidiary on such Determination Date in connection with the
transaction that requires the determination of the Consolidated Coverage Ratio)
will be deemed not to have been a Subsidiary at any time during such
Measurement Period, 

               (c)
if any Obligor shall have in any manner 

                    (i)
acquired (including through an asset acquisition or the commencement of
activities constituting such operating business), or 

7

                    (ii)
disposed of (including by way of an Asset Sale or the termination or
discontinuance of activities constituting such operating business) any
operating business during such Measurement Period or after the end of such
Measurement Period and on or prior to the Determination Date, such calculation
shall be made on a pro forma basis in accordance with GAAP as if, in the case
of an asset acquisition or the commencement of activities constituting such
operating business, all such transactions had been consummated on the first day
of such Measurement Period and, in the case of an Asset Sale or termination or
discontinuance of activities constituting such operating business, all such
transactions had been consummated prior to the first day of such Measurement
Period; provided, however, that such pro forma adjustment shall not give effect
to the Consolidated EBITDA of any acquired Person to the extent that such
Person’s net income would be excluded pursuant to clauses (a) through (g) or
(i) of the definition of Consolidated Net Income; and 

               (d)
any Indebtedness incurred and proceeds thereof received and applied as a result
of the transaction giving rise to the need to calculate the Consolidated
Coverage Ratio will be deemed to have been so incurred, received and applied on
the first day of such Measurement Period.” 

                    3.5
The definition of “Consolidated Coverage Ratio” in Section 1.01 of the 2005 SPA
is amended in its entirety to read as follows: 

          ““Consolidated
Coverage Ratio” means, with respect to the Issuer on any Determination Date,
the ratio of: 

               (a)
Consolidated EBITDA for the applicable Measurement Period, to 

               (b)(i)
Consolidated Interest Expense of the Issuer during such Measurement Period plus
(ii) dividends or distributions on or in respect of any Capital Stock of any
Obligor paid during such Measurement Period (except dividends or distributions
paid to the Issuer or another Obligor); provided that the Consolidated Coverage
Ratio shall be calculated giving pro forma effect, as of the beginning of the
applicable Measurement Period, to any acquisition, incurrence, permanent
repayment or redemption of Indebtedness (including the Notes), issuance or
redemption of Disqualified Capital Stock, acquisition, Asset Sale, or purchases
of assets that were previously leased, at any time during or subsequent to such
Measurement Period, but on or prior to the applicable Determination Date. 

          In
making such computation, Consolidated Interest Expense: 

               (a)
attributable to any Indebtedness bearing a floating interest rate shall be
computed on a pro forma basis as if the rate in effect on the date of computation
had been the applicable rate for the entire Measurement Period, 

               (b)
attributable to interest on any Indebtedness under a revolving Credit Facility
shall be computed on a pro forma basis based upon the average daily balance of
such Indebtedness outstanding during the applicable Measurement Period, 

               (c)
attributable to non-cash interest expense resulting from the amortization of
the original issue discount on the Notes, the New Notes and the Subordinated
Notes in accordance with GAAP shall be excluded from such computation, and 

8

               (d)
excludes any Amendment Fees provided in Section 4 of Third Amendment and
Limited Waiver to Securities Purchase Agreements dated as of October 8, 2009. 

               For
purposes of calculating Consolidated EBITDA of the Issuer for the applicable
Measurement Period, 

               (a)
any Person that is a Subsidiary on such Determination Date (or would become a
Subsidiary on such Determination Date in connection with the transaction that
requires the determination of the Consolidated Coverage Ratio) shall be deemed
to have been a Subsidiary at all times during such Measurement Period, 

               (b)
any Person that is not a Subsidiary on such Determination Date (or would cease
to be a Subsidiary on such Determination Date in connection with the
transaction that requires the determination of the Consolidated Coverage Ratio)
will be deemed not to have been a Subsidiary at any time during such
Measurement Period, 

               (c)
if any Obligor shall have in any manner 

                    (i)
acquired (including through an asset acquisition or the commencement of
activities constituting such operating business), or 

                    (ii)
disposed of (including by way of an Asset Sale or the termination or
discontinuance of activities constituting such operating business) 

any operating
business during such Measurement Period or after the end of such Measurement
Period and on or prior to the Determination Date, such calculation shall be
made on a pro forma basis in accordance with GAAP as if, in the case of an
asset acquisition or the commencement of activities constituting such operating
business, all such transactions had been consummated on the first day of such
Measurement Period and, in the case of an Asset Sale or termination or
discontinuance of activities constituting such operating business, all such
transactions had been consummated prior to the first day of such Measurement
Period; provided, however, that such pro forma adjustment shall not give effect
to the Consolidated EBITDA of any acquired Person to the extent that such
Person’s net income would be excluded pursuant to clauses (a) through (g) or
(i) of the definition of Consolidated Net Income; and 

               (d)
any Indebtedness incurred and proceeds thereof received and applied as a result
of the transaction giving rise to the need to calculate the Consolidated
Coverage Ratio will be deemed to have been so incurred, received and applied on
the first day of such Measurement Period.” 

                    3.6
Section 1.01 of each of the SPAs is hereby amended by the addition of the
following definitions (in the appropriate alphabetical locations of Section
1.01): 

          ““Beach
Point” means Beach Point Capital Management LP.” 

          ““INI
First Lien Notes” means the Senior Secured Notes due 2011 of Interactive
Network, Inc.” 

9

          ““INI
Second Lien Notes” means the Subordinated Secured Notes due 2011 of Interactive
Network, Inc.” 

          ““Qualified
Initial Public Offering” means an underwritten initial public offering of
shares of the Issuer’s Common Stock pursuant to a registration statement under
the Securities Act with either (i) aggregate gross proceeds to the Issuer of at
least $25,000,000 or (ii) an implied pre-money equity value of at least
$100,000,000.” 

          ““Third
Amendment Effective Date” means the date on which Third Amendment and Limited
Waiver to Securities Purchase Agreements dated as of October 8, 2009, which
amends this Agreement, became effective pursuant to its terms.” 

          ““VAT”
means value added tax and related interest, fines and penalties.” 

          ““VAT
Liability” means all liabilities, monetary obligations, losses, damages,
punitive damages, consequential damages, costs and expenses (including all
reasonable fees, disbursements and expenses of counsel, experts and consultants
and costs of investigations, but excluding all such amounts arising in
connection with pursuit of indemnification and other damages and remedies
concerning the VAT Liability), fines, penalties, sanctions and interest
incurred as a result of any claim or demand by any Governmental Authority or
any third party, and which relate to payment of VAT by any Obligor.” 

                    3.7
The definition of “Post” in Section 1.01 of each of the SPAs is hereby deleted
and each reference to the defined term “Post” (but, for the avoidance of doubt,
not the name of any Holder that includes the word “Post”) in each of the SPAs
is hereby amended to read “Beach Point.” 

                    3.8
Section 2.04(c) of each of the SPAs is hereby restated in its entirety to read
as follows: 

          “(c)
Interest Payment. Interest on each Note shall be payable in immediately
available and freely transferable funds quarterly in arrears, on the 35th day
(or the next succeeding business day if the 35th day is not a business day)
after the end of each fiscal quarter, and at maturity (whether at the Final
Maturity Date, upon demand, by acceleration or otherwise). Interest at the
applicable Post-Default Rate shall be payable in cash on demand. For the
avoidance of doubt, Defaults waived by the Third Amendment and Waiver to
Securities Purchase Agreements dated as of October 8, 2009 shall not be subject
to the Post-Default Rate. Each Obligor hereby authorizes the Agent to, and the
Agent may, from time to time, charge the Note Account pursuant to Section 4.01
with the amount of any cash interest payment due hereunder.” 

                    3.9
Section 2.04(b) of each of the SPAs is hereby restated in its entirety to read
as follows: 

          “(b)
Default Interest. To the extent permitted by law, upon the occurrence
and during the continuance of a Default or an Event of Default other than a
Default or Event of Default which has been waived pursuant to the Third
Amendment and Waiver to Securities Purchase Agreements dated as of October 8,
2009, the principal of, and all accrued and unpaid interest on, all Notes,
fees, indemnities or any other Obligations of the Obligors under this Agreement
and the other Note Documents, shall bear interest, from the date such Default
or Event of Default occurred until the date such Default or Event of Default is
cured or waived in writing in accordance herewith, at a rate per annum equal at
all times to the Post-Default Rate.” 

10

                    3.10
Section 7.01(a)(4) of each of the SPAs is hereby amended by adding the
following at the end thereof: 

          “,
and containing an affirmative statement that no Default or Event of Default has
occurred and is continuing with respect to Sections 7.02(a) and (r) or, if a
Default or Event of Default existed, describing the nature and period of
existence thereof and the action which the Obligors propose to take or have
taken with respect thereto;” 

                    3.11
Section 7.01(i)(2) of each of the SPAs is amended in its entirety to read as
follows: 

          “(2)
Without limitation to Section 7.01(i)(1), (A) promptly notify the Agent of any
material accounts established after the Closing Date that would have been
required to be disclosed on Schedule 6.01(v) if they had been maintained
as of the Closing Date, (B) cause to be promptly executed and delivered an
Account Control Agreement relating to each new account required to be disclosed
pursuant to the foregoing clause (A), except for the Accommodation Bank
Accounts (as defined below) and (C) take such other action reasonably requested
by the Agent to maintain the validity, perfection and priority of the Holders’
Liens on such accounts, except for the Accommodation Bank Accounts (other than
the Wells Fargo Bank account listed on Schedule 7.01(u), to which this
clause (C) does apply).” 

                    3.12
Section 7.01(s) of each of the SPAs is hereby deleted in its entirety. 

                    3.13
Section 7.01(u) of each of the SPAs is hereby amended in its entirety to read
as follows: 

          “(u)
Accommodation Bank Accounts. Cause the following conditions to be met
with respect to the bank accounts listed on Schedule 7.01(u) hereto (the
“Accommodation Bank Accounts”): 

	
 

	
 

	
 

	
 

	
(1)

	
Sweep all
  funds contained in the account of Wachovia Bank, National Association
  described on Schedule 7.01(u) to an Obligor’s operating account that
  is subject to an effective Account Control Agreement at the following times:
  (i) at least once each calendar month following the Third Amendment Effective
  Date, and (ii) at such time as the account balance equals or exceeds $25,000,
  which sweep shall be the only means by which the account holder may deduct
  funds from this account. Following any sweep, a maximum of $2,500 may remain
  in the account and no sweep will be required if the account balance is not
  greater than $2,500; 

	
 

	
 

	
 

	
 

	
(2)

	
Sweep all
  funds contained in each account of Bank of America described on Schedule
  7.01(u) to an Obligor’s operating account that is subject to an effective
  Account Control Agreement at the following times: (i) at least once each
  calendar month following the Third Amendment Effective Date, and (ii) at such
  time as the account balance of each such account equals or exceeds $25,000,
  which sweep shall be the only means by which the account holder may deduct
  funds from each such account. Following any sweep, a maximum of $2,500 may
  remain in each account and no sweep will be required if the account balance
  is not greater than $2,500; 

11

	
 

	
 

	
 

	
 

	
(3)

	
Sweep all
  funds contained in the account of PayPal described on Schedule 7.01(u)
  to an Obligor’s operating account that is subject to an effective Account
  Control Agreement at the following times: (i) at least once each calendar
  month following the Third Amendment Effective Date, and (ii) at such time as
  the account balance equals or exceeds $25,000, which sweep shall be the only
  means by which the account holder may deduct funds from this account.
  Following any sweep, a maximum of $2,500 may remain in the account and no
  sweep will be required if the account balance is not greater than $2,500; 

	
 

	
 

	
 

	
 

	
(4)

	
Cause the
  aggregate account balances of the Dresdner Bank AG accounts described on Schedule
  7.01(u) to remain below €35,000 at all times following the Third
  Amendment Effective Date; 

	
 

	
 

	
 

	
 

	
(5)

	
Cause the
  Wells Fargo Bank account listed on Schedule 7.01(u) to be subject to
  an Account Control Agreement no later than sixty (60) days following the
  Third Amendment Effective Date; and 

	
 

	
 

	
 

	
 

	
(6)

	
Cause the
  funds deposited into the ING EURO – Belgium account listed on Schedule
  7.01(u) to be used solely to pay VAT Liability for Spain in a manner
  otherwise consistent with this Agreement.” 

                    3.14
Section 7.01 of the SPAs is hereby amended by adding the following new clauses
at the end thereof 

          “(v)
Registration Statement. Cause the first Demand Registration Statement
(as defined in the Security Holders Agreement) to be filed in accordance with
the Security Holders Agreement no later than four months after the consummation
of the Qualified Initial Public Offering and use its best efforts to cause the
first Demand Registration Statement to be declared effective by the SEC no
later than 180 days after the consummation of the Qualified Initial Public
Offering. Notwithstanding the foregoing, the declaration of effectiveness of
such Demand Registration Statement may be delayed to provide for any customary
lock-up period and extension required by the underwriters of the Qualified
Initial Public Offering, and such delay shall not constitute a breach of this
covenant. 

          (w)
Guarantor Authorization. No later than 60 days after the Third Amendment
Effective Date, the Issuer shall provide a certificate or certificates of a
duly authorized officer of the Issuer attaching true and complete copies of
resolutions or a written consent of the board of directors of the Guarantors
listed on Schedule 7.01(w) hereto authorizing the execution, delivery and
performance of the Third Amendment and Limited Waiver to Securities Purchase
Agreements dated as of October 8, 2009 and the issuance of the additional Notes
thereunder.” 

12

                    3.15
Section 7.02(a) of each of the SPAs is hereby amended by adding the following
at the end thereof: 

          “Notwithstanding
anything to the contrary set forth in this Agreement or any other Note
Document, any Lien upon or with respect to any of the properties of any Obligor
arising from, or in connection with, any VAT Liability shall constitute an
immediate Event of Default, except for Liens that may be deemed to arise on
frozen assets not exceeding €610,343 with respect to that certain Various, Inc.
credit card processing account administered by Global Collect, NV located in
the Netherlands.” 

                    3.16
Section 7.02(h) of each of the SPAs is hereby restated in its entirety: 

          “(h)
Restricted Payments. (i) Declare or pay any dividend or other
distribution, direct or indirect, on account of any Capital Stock of any
Obligor now or hereafter outstanding, (ii) make any repurchase, redemption,
retirement, defeasance, sinking fund or similar payment, purchase or other
acquisition for value, direct or indirect, of any Capital Stock of any Obligor
or any direct or indirect parent of any Obligor, now or hereafter outstanding,
(iii) make any payment to retire, or to obtain the surrender of, any
outstanding warrants, options or other rights for the purchase or acquisition
of shares of any class of Capital Stock of any Obligor, now or hereafter
outstanding, (iv) return any Capital Stock of any Obligor to any shareholders
or other equity holders of any Obligor or any of its Subsidiaries, or make any
other distribution of property, assets, shares of Capital Stock, warrants,
rights, options, obligations or securities thereto as such or (v) except for
transactions set forth on Schedule 7.02(h)(i) with respect to
Interactive and Schedule 7.02(h)(ii) with respect to the Issuer, pay any
salaries, bonuses, management fees, or other form of compensation, fees or
expenses (including the reimbursement thereof by any Obligor) to any of the
stockholders or other equityholders, Subsidiaries or Affiliates of any Obligor,
or to any employees or family members thereof; provided, however, that any
Subsidiary of the Issuer may pay dividends or make other distributions to the
Issuer.” 

                    3.17
Section 7.02(l)(ii) of the 2006 SPA is amended to add the following at the end
thereof: 

          “except
that, not later than ten Business Days following its receipt of cash proceeds
(after deduction of (i) underwriting discounts and commissions and (ii) unpaid
out-of-pocket expenses of up to $11,000,000 less any amounts already paid or
from time to time paid for expenses in connection with a Qualified Initial
Public Offering under clauses (1) and (2) of Section 7.02(h)(c) of the
Securities Purchase Agreement governing the INI First Lien Notes, as amended)
from a Qualified Initial Public Offering, the Issuer shall be permitted to (1)
pay a non-refundable waiver fee equal to 1.00% of the outstanding principal
amount of the INI First Lien Notes on the date of consummation of the Qualified
Initial Public Offering payable to the holders of the INI First Lien Notes and
a non-refundable waiver fee equal to 1.00% of the outstanding principal amount
of the INI Second Lien Notes on the date of consummation of the Qualified
Initial Public Offering payable to the holders of the INI Second Lien Notes, if
such waiver fees have not already been paid on March 31, 2010, (2) after
payment of the waiver fees in clause (1) above, prepay the INI First Lien Notes
in an aggregate amount equal to 50% of the remaining cash proceeds received
from such Qualified Initial Public Offering at a redemption price of 115% of 

13

the principal
amount redeemed, plus accrued and unpaid interest thereon to such redemption
date, (3) to the extent there are remaining cash proceeds received from such
Qualified Initial Public Offering, prepay as much as possible any remaining INI
First Lien Notes, at a redemption price of 105% of the principal amount
redeemed, plus accrued and unpaid interest thereon to such redemption date,
provided that notwithstanding the foregoing, if any holder of INI First Lien
Notes foregoes its right to receive such prepayment, such funds must be used to
prepay the other holders of INI First Lien Notes on a pro rata basis with 50%
of such proceeds to be paid at a redemption price of 115% of the principal
amount redeemed and the remaining 50% of such proceeds to be paid at a
redemption price of 105% of the principal amount redeemed, (4) to the extent
there are remaining cash proceeds received from such Qualified Initial Public
Offering, prepay the INI Second Lien Notes, at a redemption price of 100% of
the principal amount redeemed, in an amount equal to the greater of (A) the
amount by which such remaining cash proceeds, after reduction for the portion
thereof required to be paid under clauses (1), (2) and (3) above, exceeds
Interactive’s reasonable allocation of a portion of such net proceeds for use
as working capital and then identified strategic acquisitions and (B) ninety
percent (90.0%) of such cash proceeds, after reduction for the portion thereof
required to be paid under clauses (1), (2) and (3) above and (5) to the extent
there are any remaining cash proceeds after repayment of the INI First Lien
Notes and INI Second Lien Notes pursuant to the preceding sentence, prepay in
cash as much as possible of the Notes and Existing Senior Secured Notes on a
pro rata basis, at a redemption price equal to 100% of the principal amount
redeemed, plus accrued and unpaid interest thereon to such date of redemption,”

                    3.18
Section 7.02(l)(ii) of the 2005 SPA is amended to add the following at the end
thereof: 

          “except
that, not later than ten Business Days following its receipt of cash proceeds
(after deduction of (i) underwriting discounts and commissions and (ii) unpaid
out-of-pocket expenses of up to $11,000,000 less any amounts already paid for
out-of-pocket expenses in connection with a Qualified Initial Public Offering
under clauses (1) and (2) of Section 7.02(h)(c) of the Securities Purchase
Agreement governing the INI First Lien Notes, as amended, as of the Third
Amendment Effective Date) from a Qualified Initial Public Offering, the Issuer
shall be permitted to (1) pay a non-refundable waiver fee equal to 1.00% of the
outstanding principal amount of the INI First Lien Notes on the date of
consummation of the Qualified Initial Public Offering payable to the holders of
the INI First Lien Notes and a non-refundable waiver fee equal to 1.00% of the
outstanding principal amount of the INI Second Lien Notes on the date of
consummation of the Qualified Initial Public Offering payable to the holders of
the INI Second Lien Notes, if such waiver fees have not already been paid on
March 31, 2010, (2) after payment of the waiver fees in clause (1) above,
prepay the INI First Lien Notes in an aggregate amount equal to 50% of the
remaining cash proceeds received from such Qualified Initial Public Offering at
a redemption price of 115% of the principal amount redeemed, plus accrued and
unpaid interest thereon to such redemption date, (3) to the extent there are
remaining cash proceeds received from such Qualified Initial Public Offering,
prepay as much as possible any remaining INI First Lien Notes, at a redemption
price of 105% of the principal amount redeemed, plus accrued and unpaid
interest thereon to such redemption date, provided that notwithstanding the
foregoing, if any holder of INI First Lien Notes foregoes its right to receive
such prepayment, such funds must be used to prepay the other holders of INI
First Lien Notes on a pro rata basis with 50% of such proceeds to be paid at a
redemption price of 115% of the 

14

 principal amount redeemed and the remaining
50% of such proceeds to be paid at a redemption price of 105% of the principal
amount redeemed, (4) to the extent there are remaining cash proceeds received
from such Qualified Initial Public Offering, prepay the INI Second Lien Notes,
at a redemption price of 100% of the principal amount redeemed, in an amount
equal to the greater of (A) the amount by which such remaining cash proceeds,
after reduction for the portion thereof required to be paid under clauses (1),
(2) and (3) above, exceeds Interactive’s reasonable allocation of a portion of
such net proceeds for use as working capital and then identified strategic
acquisitions and (B) ninety percent (90.0%) of such cash proceeds, after
reduction for the portion thereof required to be paid under clauses (1), (2)
and (3) above and (5) to the extent there are any remaining cash proceeds after
repayment of the INI First Lien Notes and INI Second Lien Notes pursuant to the
preceding sentence, prepay in cash as much as possible of the Notes and New
Notes on a pro rata basis, at a redemption price equal to 100% of the principal
amount redeemed, plus accrued and unpaid interest thereon to such date of
redemption,” 

                    3.19
Section 7.02 of each of the SPAs is hereby amended by adding a new clause (r)
at the end thereof to read as follows: 

          “(r)
VAT Payments. Make any payments arising from, or in connection with, any
VAT Liability (i) that was accrued prior to July 1, 2008, (ii) that is past due
or (iii) that relates to any activities of Various, Inc. or its Subsidiaries
prior to July 1, 2008, including in each case fees and penalties relating
thereto, which, together with any such payments previously made, exceeds
$10,000,000 in aggregate until all Obligations are paid in full; provided that
such payments shall in no event be paid with cash of the Obligors other than
cash reimbursed with proceeds from the Working Capital Escrow Amount (as
defined in the Stock Purchase Agreement, dated as of September 21, 2007, by and
among Various, Inc., Andrew B. Conru Trust Agreement, Andrew B. Conru Trustee,
Mapstead Trust, created on April 16, 2002, Lars and Marin Mapstead Trustees,
Andrew B. Conru, Lars Mapstead and Penthouse Media Group Inc., as amended by an
Amendment to Stock Purchase Agreement dated as of December 6, 2007)
attributable to the VAT Liability (or for payments made prior to the Third
Amendment Effective Date, reimbursed from the Working Capital Escrow Amount).” 

                    3.20
Section 7.03(a) of each of the SPAs is hereby restated in its entirety to read
as follows: 

          “Permit
Consolidated EBITDA to be less for any period than the amount specified for
such period in the table below: 

	
 

	
 

	
 

	
Period Ending

	
 

	
Minimum Consolidated EBITDA

	 

	 

	 

	
Quarter
  ending June 30, 2008

	
 

	
$1,000,000

	
Two quarter
  period ending September 30, 2008

	
 

	
$1,000,000

	
Three
  quarter period ending December 31, 2008

	
 

	
$1,000,000

	
Each four
  quarter period ending on or after March 31, 2009 through December 31, 2009

	
 

	
$1,000,000

	
Each four
  quarter period ending on or after March 31, 2010

	
 

	
$3,500,000

	
 

	
 

	
 

15

                    3.21
Section 7.03(c) of each of the SPAs is hereby amended by adding the following
proviso to the end thereof: 

          “;
provided, however, that the Obligors shall be required to maintain a
Consolidated Coverage Ratio not less than the ratio specified for the
applicable period in the table below: 

	
 

	
 

	
 

	
 

	
Period Ending

	
 

	
Minimum Consolidated Coverage Ratio

	 

	 

	 

	
Quarter
  ending June 30, 2008

	
 

	
0.1

	
 

	
Two quarter
  period ending September 30, 2008

	
 

	
0.1

	
 

	
Three
  quarter period ending December 31, 2008

	
 

	
0.1

	
 

	
Each quarter
  period ending on or after March 31, 2009 through December 31, 2009

	
 

	
0.1

	
 

	
Each quarter
  period ending on or after March 31, 2010

	
 

	
0.35

	
 

                    3.22
The following new Section 7.03(i) is hereby inserted into each of the SPAs
immediately following Section 7.03(h): 

          “(i)
Liquidity. Permit unrestricted cash on hand (including Cash Equivalents)
in accounts of the Issuer to be less than $500,000 at any time.” 

                    3.23
The following new Section 7.03(j) is hereby inserted into each of the SPAs
immediately following Section 7.03(i): 

          “(j)
IPO Expenses. Except with respect to fees and expenses paid out of the
cash proceeds of a Qualified Initial Public Offering, incur, make or commit or
agree to make any payment of fees or expenses in connection with or related to
the preparation and filing of registration statements or other documentation
for a proposed public offering of securities of the Issuer or any of its
Subsidiaries that, together with all such fees and expenses previously
incurred, made or committed or agreed to be made by the Obligors, exceeds
$11,000,000 in the aggregate.” 

16

                    3.24
Section 9.01(c) of each of the SPAs is hereby amended by deleting “and (i)(2)”
therein and inserting “,(i)(2) and (w)” in its place and by deleting “and (l)”
therein and inserting “(l), (q) and (r)” in its place. 

                    3.25
Section 9.01 of each of the SPAs is hereby amended by (i) deleting the “or” at
the end of clause (o) thereof, (ii) deleting the period and adding “;” at the
end of clause (p) thereof, (iii) adding the following new clause (q)
immediately after clause (p) thereof to read “if at any time the total VAT
Liability of the Issuer or any Subsidiary of the Issuer (including, without
limitation, Interactive and its Subsidiaries) that relates to activities of
Various, Inc. or its Subsidiaries prior to July 1, 2008 exceeds $45,416,000
plus accrued interest and penalties after June 30, 2009, exclusive of the
effect of increases attributable to changes in exchange rates after June 30,
2009; or”, (iv) adding the following new clause (r) immediately after the new
clause (q) thereof to read “if the gross proceeds from a Qualified Initial
Public Offering are less than $100,000,000.”, and (v) amending the phrase
“clause (f) or (g)” in clause (i) of the last paragraph of Section 9.01 to read
“clause (f), (g) or (i).” 

                    3.26
Section 9.04 of the 2006 SPA is hereby restated in its entirety to read as
follows: 

          “Section
9.04 Board Composition. So long as Holders affiliated with Beach Point
or any of their respective Affiliates hold any Securities, Existing Senior
Secured Notes, or capital stock (in the form of preferred stock or common
stock) of the Issuer, and to the extent allowed by the national securities
exchange on which the Issuer’s securities are listed, if applicable, Beach
Point, on behalf of such Holders and their respective Affiliates, as
applicable, (i) shall have the right to designate, and the Issuer shall take
reasonable steps to cause to be nominated, one designee for election to the
Board of Directors of the Issuer (and every committee thereof, except as set
forth in this paragraph), which designee shall be (A) reasonably satisfactory
to the Issuer so long as no Event of Default has occurred and is continuing or
(B) upon the consummation of a Qualified Initial Public Offering, reasonably
acceptable to the Issuer’s Nominating Committee of the Board of Directors and
subject to compliance with the applicable national securities exchange
regulations (the “Board Designee”) and (ii) shall have the right to
designate one designee to be permitted to attend all meetings of the Board of
Directors of the Issuer (and every committee thereof, except as set forth in
this paragraph) as an observer (the “Board Observer”). The Board of
Directors of the Issuer will meet at least one (1) time per fiscal quarter. If
the Board Designee has been designated, he or she will be entitled to receive
copies of all materials distributed at all meetings of the Board of Directors
of the Issuer. If the Board Observer has been designated, he or she will be
entitled to receive copies of all materials distributed at all meetings of the
Board of Directors of the Issuer (and every committee thereof, except as set
forth in this paragraph). However, the Board Observer may be excused from any
meeting of the Board of Directors or any committee thereof, and may be limited
from receiving any board materials, upon the advice of the Issuer’s outside
counsel and, among other things, will be subject to the same confidentiality
requirements as if he or she were a Director. Upon election of the Board
Designee, the Issuer will execute a customary form of indemnification agreement
in favor of the Board Designee in his or her capacity as a director of the
Issuer. At all times during the tenure of the Board Designee, the Issuer shall
maintain a directors’ and officers’ liability insurance policy with coverage in
an amount not less than $10,000,000 from financially sound and reputable
insurers. The Issuer shall pay to the Board Designee the same compensation for
his or her services as a director of the Issuer as the compensation, if any,
paid to non-employee directors of the Issuer. Notwithstanding any of the
foregoing, the Board Designee shall not be entitled to representation on the
Issuer’s Audit Committee, Nominating and Corporate Governance Committee and
Compensation Committee.” 

17

                    3.27
Section 9.04 of the 2005 SPA is hereby restated in its entirety to read as
follows: 

          “Section
9.04 Board Composition. So long as Holders affiliated with Beach Point
or any of their respective Affiliates hold any Securities, New Notes, or
capital stock (in the form of preferred stock or common stock) of the Issuer,
and to the extent allowed by the national securities exchange on which the
Issuer’s securities are listed, if applicable, Beach Point, on behalf of such
Holders and their respective Affiliates, as applicable, (i) shall have the
right to designate, and the Issuer shall take reasonable steps to cause to be
nominated, one designee for election to the Board of Directors of the Issuer
(and every committee thereof, except as set forth in this paragraph), which
designee shall be (A) reasonably satisfactory to the Issuer so long as no Event
of Default has occurred and is continuing or (B) upon the consummation of a
Qualified Initial Public Offering, reasonably acceptable to the Issuer’s
Nominating Committee of the Board of Directors and subject to compliance with
the applicable national securities exchange regulations (the “Board Designee”)
and (ii) shall have the right to designate one designee to be permitted to
attend all meetings of the Board of Directors of the Issuer (and every
committee thereof, except as set forth in this paragraph) as an observer (the “Board
Observer”). The Board of Directors of the Issuer will meet at least one (1)
time per fiscal quarter. If the Board Designee has been designated, he or she
will be entitled to receive copies of all materials distributed at all meetings
of the Board of Directors of the Issuer. If the Board Observer has been
designated, he or she will be entitled to receive copies of all materials
distributed at all meetings of the Board of Directors of the Issuer (and every
committee thereof, except as set forth in this paragraph). However, the Board
Observer may be excused from any meeting of the Board of Directors or any
committee thereof, and may be limited from receiving any board materials, upon
the advice of the Issuer’s outside counsel and, among other things, will be
subject to the same confidentiality requirements as if he or she were a
Director. Upon election of the Board Designee, the Issuer will execute a
customary form of indemnification agreement in favor of the Board Designee in
his or her capacity as a director of the Issuer. At all times during the tenure
of the Board Designee, the Issuer shall maintain a directors’ and officers’
liability insurance policy with coverage in an amount not less than $10,000,000
from financially sound and reputable insurers. The Issuer shall pay to the
Board Designee the same compensation for his or her services as a director of
the Issuer as the compensation, if any, paid to non-employee directors of the
Issuer. Notwithstanding any of the foregoing, the Board Designee shall not be
entitled to representation on the Issuer’s Audit Committee, Nominating and
Corporate Governance Committee and Compensation Committee.” 

                    3.28
Schedule 7.01(u) attached hereto is hereby added as Schedule 7.01(u) to each of
the SPAs. 

                    3.29
Schedule 7.01(w) attached hereto is hereby added as Schedule 7.01(w) to each of
the SPAs. 

18

                    3.30
Schedule 7.02(h) is hereby deleted from each of the SPAs and replaced with
Schedule 7.02(h)(i) attached hereto. 

                    3.31
Schedule 7.02(h)(ii) attached hereto is hereby added as Schedule 7.02(h)(ii) to
each of the SPAs. 

                    3.32
Schedule 7.03(a) is hereby deleted from each of the SPAs. 

                    3.33
Schedule 7.03(c) is hereby deleted from each of the SPAs for fiscal periods
ending after June 30, 2008. 

          Section
4. Amendment Fee. 

                    4.1
Issuer shall issue the Additional 2005 Notes and Additional 2006 Notes (each as
defined below), providing for an amendment fee (the “Amendment Fee”) with respect to each 2005 Note and 2006 Note,
capitalized and payable as additional principal owing in respect of the 2005
Notes and 2006 Notes, in an amount equal to 4 percent (4%) of the principal
amount of each 2005 Note and 2006 Note outstanding on the Effective Date
immediately prior to such increase. 

                    4.2
The Issuer shall issue to each Holder of Notes issued under the 2005 SPA an
additional Note in substantially the form of Exhibit J hereto (the “Additional 2005 Notes”), appropriately
completed, in a principal amount equal to such Holder’s Pro Rata Share of the
Amendment Fee as defined in Section 4.1 hereof. From and after the
Effective Date, all of the Additional 2005 Notes shall be “Notes” for all
purposes of the 2005 SPA and the other Note Documents, guarantied by the
continuing Guaranties of the Guarantors pursuant to Article XI of the 2005 SPA
and secured by the continuing security interests granted pursuant to the
Security Documents. 

                    4.3
The Issuer shall issue to each Holder of Notes issued under the 2006 SPA an
additional Note in substantially the form of Exhibit K hereto (the “Additional 2006 Notes”), appropriately
completed, in a principal amount equal to such Holder’s Pro Rata Share of the
Amendment Fee as defined in Section 4.1 hereof. From and after the
Effective Date, all of the 2006 Additional Notes shall be “Notes” for all
purposes of the 2006 SPA and the other Note Documents, guarantied by the
continuing Guaranties of the Guarantors pursuant to Article XI of the 2006 SPA
and secured by the continuing security interests granted pursuant to the
Security Documents. 

          Section
5. Agent Authorized and Directed to Act. 

                    5.1
By their signatures below, the Holders (constituting the Required Holders)
hereby authorize and instruct the Agent (a) to execute, deliver and perform its
duties under the documents set forth in Section 7.1 hereof to which it
is a party and (b) to take all other actions reasonable or necessary to
accomplish or document any of the waivers contemplated by this Amendment and
Waiver. 

                    5.2
The recitals contained herein shall be taken as the statements of the other
parties hereto, and the Agent assumes no responsibility for their correctness.
The Agent makes no representation as to the validity or sufficiency of this
Amendment and Waiver or the satisfaction of the Conditions to Effectiveness of
Waiver contained in Section 7 hereof.  

19

          Section
6. Representations and Warranties of the Issuer. 

                    To
induce the Holders to enter into this Amendment and Waiver, the Issuer hereby
represents and warrants to each Holder as follows: 

                    6.1
The Issuer’s Due Organization, Power and Authority, Etc. The Issuer is a
corporation duly organized, validly existing and in good standing under the
laws of the State of Nevada, having full power and authority (i) to own its
properties and to carry on its business as presently conducted and as proposed
to be conducted, (ii) to execute and deliver this Amendment and Waiver and
(iii) to consummate the other transactions contemplated hereby. The Issuer is
duly qualified to transact business and is validly existing or in good standing
in each jurisdiction in which the failure so to qualify, individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect. 

                    6.2
Binding Obligations. All corporate action on the part of the Issuer and
its officers, directors and stockholders necessary for the authorization,
execution and delivery of this Amendment and Waiver and the performance of all
obligations of the Issuer hereunder has been taken. This Amendment and Waiver
has been duly executed and delivered by the Issuer as of the Effective Date.
This Amendment and Waiver constitutes the valid, legal and binding obligations
of the Issuer, enforceable against the Issuer in accordance with its terms,
except to the extent that enforceability may be limited by applicable
bankruptcy, insolvency, or similar laws affecting the enforcement of creditors’
rights generally and subject to general principles of equity (regardless of
whether such enforcement is considered in a proceeding at law or at equity). 

                    6.3
No Conflict. Neither the execution, delivery and performance of this
Amendment and Waiver nor the issuance of the Additional 2005 Notes and
Additional 2006 Notes will violate, conflict with, or cause a breach or default
under any agreement or instrument binding on the Issuer, the Obligors or any of
their respective properties or assets. 

                    6.4
VAT Payments. Attached hereto as Schedule 2 is a true, correct
and complete disclosure of all payments made by any Obligor to any Governmental
Authorities in connection with any VAT Liability of the Issuer or any
Subsidiary of the Issuer (including, without limitation, Interactive and its
Subsidiaries) through the Effective Date (including a breakdown of (i) all such
payments of VAT Liability relating to activities prior to July 1, 2008, (ii)
all such payments of VAT liability relating to activities after July 1, 2008
and (iii) a reasonably detailed description of the Obligors’ good faith
estimate of its VAT liability relating to activities prior to July 1, 2008). 

                    6.5
Terminated Subsidiaries. The Board of Directors of the Issuer has
determined that the preservation of each of FriendFinder Processing (India)
Private Limited and FriendFinder (Switzerland) AG is no longer necessary or
desirable in the conduct of the business of the Issuer and its Subsidiaries. In
addition, each of Streamray Processing Philippines, Inc. and FriendFinder
Processing Philippines, Inc. has expired pursuant to the terms of its
organizational documents. Each of FriendFinder Processing (India) Private
Limited, FriendFinder (Switzerland) AG, Streamray Processing Philippines, Inc.
and FriendFinder Processing Philippines, Inc. (together, the “Terminated
Subsidiaries”) has been dissolved, divested, sold or expired and had either no
assets or nominal assets at the time of such dissolution, divestiture, sale or
expiration. 

20

                    6.6
FriendFinder (Switzerland) AG. Pursuant to that certain Friendfinder
(Switzerland) AG Share Sale and Purchase Agreement, by and between Various,
Inc. and Translex International Ltd. (“Translex”),
effective date October 27, 2008, Various, Inc. sold the outstanding shares of
FriendFinder (Switzerland) AG to Translex for the purchase price of CHF 1.00,
payable in cash. Other than cash in FriendFinder (Switzerland) AG’s bank
account not exceeding U.S. $30,000, which was paid to Various, Inc.,
FriendFinder (Switzerland) AG had no assets of greater than nominal value
immediately prior to transfer of the shares in FriendFinder (Switzerland) AG to
Translex. 

          Section
7. Conditions to Effectiveness of Waiver. 

                    The
waivers provided in this Amendment and Waiver shall be expressly conditioned
upon, and this Amendment and Waiver shall not be effective until the
satisfaction, or waiver by the Required Holders, of each of the following (the
first date on which all such conditions have been satisfied or waived by the
Required Holders, the “Effective Date”):

                    7.1
Execution by Parties; Issuance of Notes. The execution and delivery of
counterparts hereof by the Issuer, the Guarantors, and the Holders and the
issuance by the Issuer of the Additional 2005 Notes and Additional 2006 Notes; 

                    7.2
Other Waivers and Agreements . The prior or simultaneous execution and
delivery of the Other Waivers and the INI Convertible Notes Agreement, each in
form and substance satisfactory to the Holders; 

                    7.3
Subsidiary Matters. The receipt by the Holders of: 

                    (a)
a certificate of a duly authorized officer of the Issuer attaching true and
complete copies of (i) resolutions of the Board of Directors of the Issuer
making the determination set forth in Section 6.5 hereof, and (ii)
evidence of the dissolution, divestiture or expiration of each Terminated
Subsidiary (including, in the case of any divestiture, the terms and conditions
of such divestiture), and 

                    (b)
a copy of the letter agreement addressed to the Agent and the Holders relating
to the representations, warranties and covenants of FriendFinder GmbH, duly
executed and delivered by the parties thereto; 

                    7.4
Availability of Working Capital Escrow. The receipt by the Holders of
evidence satisfactory to the Holders that there are sufficient funds in the
Working Capital Escrow Amount that will be released to the Issuer or the
appropriate Subsidiary of the Issuer to reimburse the Obligors for payments for
VAT Liability to Governmental Authorities already made, and to reimburse
additional VAT Liability amounts through September 30, 2010, in an aggregate
amount of $10,000,000; 

21

                    7.5
Confirmation of Accountants. The receipt by the Holders of evidence
satisfactory to the Holders that the Obligors have received confirmation from
their independent accountants that upon effectiveness of this Amendment and
Waiver and the Other Waivers, any going concern qualifications in the Obligors’
2008 audited financial statements will be removed; 

                    7.6
Officer’s Certificate. The receipt by the Agent (with a copy to the
Holders) of a certificate or certificates of (i) a duly authorized officer of
the Issuer attaching true and complete copies of resolutions or a written
consent of the board of directors of the Issuer, Interactive Network, Inc. and
the Guarantors listed on Schedule 3 hereto authorizing the execution,
delivery and performance of this Amendment and Waiver and the issuance of the
Additional 2005 Notes and Additional 2006 Notes, (ii) a duly authorized officer
of the Issuer attaching true and complete copies of resolutions or a written
consent of the requisite stockholders of the Issuer consenting to the Series A
Amendment and Series B Amendment, and (iii) a duly authorized officer of each
of the Obligors certifying that all deposit accounts and securities accounts
are subject to control agreements in favor of the Agent, except for the
Accommodation Bank Accounts; 

                    7.7
Opinion of Counsel. The receipt by the Agent (with a copy to the
Holders) of an opinion of counsel (which may constitute more than one opinion
of counsel) in form and substance satisfactory to the Holders to the effect
that this Amendment and Waiver and the Additional 2005 Notes and the Additional
2006 Notes have been duly authorized, executed and delivered by the Issuer and
Interactive Network, Inc. and constitute valid and binding obligations of the
Issuer and Interactive Network, Inc., enforceable in accordance with their
respective terms (subject to customary exceptions); 

                    7.8
Payment of Legal Expenses. The payment of the fees and disbursements
required pursuant to Section 10.4 hereof; and 

                    7.9
Amendment of the Security Holders Agreement. The Issuer shall use
reasonable best efforts to amend the Security Holders Agreement in
substantially the form attached hereto as Exhibit L (the “Amended Security Holders Agreement”);
provided, however, that the Amended Security Holders Agreement shall have been
executed by each of the entities required under sections (i) and (ii) of
Section 6.11 of the Security Holders Agreement as well as by PET Capital
Partners LLC, PET Capital Partners II LLC and NAFT Ventures I, LLC on or prior
to the Third Amendment Effective Date. In addition, such signatories shall have
executed an acknowledgment with respect to the Security Holders Agreement in a
form satisfactory to the Holders upon or prior to the Third Amendment Effective
Date. 

                    7.10
Securities Purchase. The simultaneous consummation of the transactions
contemplated by those certain letter agreements, each dated October 8, 2009,
among Marc H. Bell, Staton Family Investments, Ltd., Florescue Family
Corporation, and certain holders of equity securities of the Issuer, pertaining
to the purchase and sale of such equity securities on the terms set forth
therein. 

22

          Section
8. Affirmation of Obligations. 

                    Each
of the Issuer and the Guarantors hereby ratifies, affirms and confirms all of the
Note Documents and each and every Obligation, covenant and agreement of such
Obligor thereunder in all respects, except as otherwise expressly modified or
waived by this Amendment and Waiver upon the terms set forth herein. Each of
the Issuer and the Guarantors further affirms that each security interest and
Lien granted pursuant to any of the Note Documents is a continuing, perfected,
first-priority security interest or Lien (except to the extent otherwise
permitted by the Note Documents) on substantially all of the assets of the
Issuer and its Subsidiaries. In addition, each of the Issuer and the Guarantors
hereby represents and warrants that, as of the date hereof, no counterclaim,
right of set-off, claim or defense of any kind exists or is outstanding with
respect to any of the Obligations or against any of the Holders of any 2005
Notes or 2006 Notes. 

          Section
9. Most Favored Nation Provision. 

                    This
Amendment and Waiver may be executed prior to the execution of the Other Waivers.
Except with regard to the use of proceeds from a Qualified Initial Public
Offering as outlined in Sections 3.16 and 3.17 hereof and except with
regard to the Amendment Fee set forth in Section 4 hereof vis a vis (i)
the amendment fees and/or the waiver fees provided for in Sections 2 and 3 of
the waiver from the holders of the INI First Lien Notes, (ii) the amendment
fees and/or the waiver fees provided for in Sections 2 and 3 of the waiver from
the holders of the INI Second Lien Notes and (iii) the amendment fee provided
in the amendment and waiver agreement with respect to the Subordinated Notes
dated October 8, 2009, in the event that the language or provisions of the
Other Waivers with respect to a provision common to, or covering the same subject
matter as, the SPAs is more favorable to the holders of the INI First Lien
Notes, INI Second Lien Notes or FFN Subordinated Notes than is the
corresponding restated obligation to the Holders under this Amendment and
Waiver, such more favorable restated obligation shall supersede and be deemed
substituted for such corresponding Amendment and Waiver obligation herein for
the benefit of all Holders under the SPAs. 

          Section
10. Miscellaneous. 

                    10.1
Headings. Section and subsection headings in this Amendment and Waiver
are included herein for convenience of reference only and shall not constitute
a part of this Amendment and Waiver for any other purpose or be given any
substantive effect. 

                    10.2
Funding Documents Ratified. Except as expressly set forth herein, this
Amendment and Waiver shall not by implication or otherwise limit, impair,
constitute a waiver of, or otherwise affect the rights and remedies of, the
Holders under the SPAs, the Security Agreements or any other Funding Documents;
or be construed to alter, modify, amend or in any way affect any of the terms,
conditions, obligations, covenants or agreements contained in the SPAs, the
Security Agreements or any other Funding Documents, all of which are hereby
confirmed and ratified in all respects and shall continue in full force and
effect. 

                    10.3
Scope of Consent. The consents provided by the Holders pursuant to this
Amendment and Waiver are given solely in such Holders’ capacities as holders of
the 2005 Notes and/or 2006 Notes. No Holder shall be deemed, by virtue of its
execution of this Amendment and Waiver, to have amended or waived any agreement
or right, or otherwise consented to any transaction, in such Holder’s capacity
as a holder of stock, warrants or any other securities of the Issuer, or in any
other capacity. All such rights are hereby reserved. 

23

                    10.4
Expenses. The Issuer shall pay (or reimburse the Holders, if they have
so paid) Irell & Manella LLP and any special and local counsel retained by
or on behalf of the Holders for their reasonable fees and disbursements
(appropriately documented) incurred in connection with the negotiation,
execution and delivery of this Amendment and Waiver and the other documents and
transactions contemplated hereby and thereby. Without limiting the foregoing,
on the Effective Date, the Issuer shall pay Irell & Manella LLP and any
special and local counsel retained by or on behalf of the Holders for all such
reasonable fees and disbursements invoiced on or prior to the Effective Date. 

                    10.5
Survival of Agreement. All covenants, agreements, representations and
warranties made by any party in this Agreement shall be considered to have been
relied upon by the other parties hereto and shall survive the execution and
delivery of this Agreement. 

                    10.6
Note Documents. From and after the Effective Date, this Amendment and
Waiver shall be considered Note Documents for all purposes of the SPAs, entitled
to all of the benefits and protections thereof, and all references to the Note
Documents shall thereafter be construed to include this Amendment and Waiver. 

                    10.7
Applicable Law. THIS AMENDMENT AND
WAIVER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE
OF NEW YORK.

                    10.8
Counterparts; Facsimile Signatures. This Amendment and Waiver may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed and delivered shall be
deemed an original, but all such counterparts together shall constitute but one
and the same instrument; signature pages may be detached from multiple separate
counterparts and attached to a single counterpart so that all signature pages
are physically attached to the same document. Facsimile signatures shall be
considered originals for all purposes. 

[remainder of page intentionally blank]

24

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

Issuer:

FRIENDFINDER NETWORKS INC.

By:  

/s/ Ezra Shashoua                                         

Name:  Ezra Shashoua

Title:   Chief Financial Officer

[Signature Page to Third Amendment and Limited Waiver to Securities Purchase Agreements]

SENIOR GUARANTORS:

GENERAL MEDIA ART HOLDING, INC.

GENERAL MEDIA COMMUNICATIONS, INC.

GENERAL MEDIA ENTERTAINMENT, INC.

GMCI INTERNET OPERATIONS, INC.

GMI ON-LINE VENTURES, LTD.

PENTHOUSE CLUBS INTERNATIONAL  ESTABLISHMENT

PENTHOUSE IMAGES ACQUISITIONS, LTD.

WEST COAST FACILITIES INC.

PMGI HOLDINGS INC.

PURE ENTERTAINMENT TELECOMMUNICATIONS, INC.

By:  

/s/ Paul Asher                                         

Name:  Paul Asher

Title:   Secretary

PENTHOUSE FINANCIAL SERVICES N.V.

By:  /s/ Daniel C. Staton                                       

Name:  Daniel C. Staton

Title:  Director

PENTHOUSE DIGITAL MEDIA PRODUCTIONS INC.

VIDEO BLISS, INC.

DANNI ASHE, INC.

By:  

/s/ Ezra Shashoua                                    

Name:  Ezra Shashoua

Title:   Chief Financial Officer

SNAPSHOT PRODUCTIONS, LLC

By:  

/s/ Ezra Shashoua                                     

Name:  Ezra Shashoua

Title:   Chief Financial Officer

TAN DOOR MEDIA INC. 

By:  

/s/ Ezra Shashoua                                      

Name:  Ezra Shashoua

Title:   Chief Financial Officer

[Signature Page to Third Amendment and Limited Waiver to Securities Purchase Agreements]

SUBORDINATED GUARANTORS:

INTERACTIVE NETWORK, INC.

VARIOUS, INC. 

GLOBAL ALPHABET, INC.

SHARKFISH, INC.

TRAFFIC CAT, INC.

BIG ISLAND TECHNOLOGY GROUP, INC.

FASTCUPID, INC.

MEDLEY.COM INCORPORATED

PPM TECHNOLOGY GROUP, INC.

FRIENDFINDER CALIFORNIA INC.

By:  

/s/ Ezra Shashoua                                      

Name:  Ezra Shashoua

Title:   Chief Financial Officer

FRIENDFINDER PROCESSING LTD. 

By:  

/s/ Daniel C. Staton                                   

Name:  Daniel C. Staton

Title:    Chief Financial Officer

FRIENDFINDER UNITED KINGDOM LTD. 

By:  

/s/ Paul Asher                                           

Name:  Paul Asher

Title:   Director

STREAMRAY, INC.

By:  

/s/ Daniel C. Staton                                 

Name:  Daniel C. Staton

Title:    Chief Financial Officer

CONFIRM ID, INC.

FRNK TECHNOLOGY GROUP

TRANSBLOOM, INC.

STREAMRAY INC. 

By:  

/s/ Ezra Shashoua                                   

Name:  Ezra Shashoua

Title:   Chief Financial Officer

[Signature Page to Third Amendment and Limited Waiver to Securities Purchase Agreements]

STREAMRAY PROCESSING LTD.

By:  

/s/ Ezra Shashoua                                  

Name:  Ezra Shashoua

Title:   Attorney

STREAMRAY STUDIOS INC. 

By:  

/s/ Ezra Shashoua                                 

Name:  Ezra Shashoua

Title:   Chief Financial Officer

VENTNOR ENTERPRISE LIMITED 

By:  

/s/ Paul Asher                                      

Name:  Paul Asher

Title:   Director

WIGHT ENTERPRISE LIMITED

By:  

/s/ Paul Asher                                      

Name:  Paul Asher

Title:   Director

[Signature Page to Third Amendment and Limited Waiver to Securities Purchase Agreements]

HOLDERS:

DBST DIRESSED OPPORTUNITIES MASTER PORTFOLIO, LTD

MW POST PORTFOLIO FUND, LTD.

ROYAL MAIL PENSION PLAN

By:  Beach Point Capital Management LP, 

As Authorized Agent

By:  

/s/ Carl Goldsmith                                      

Name:

Carl Goldsmith

Title:

Managing Partner

THE OPPORTUNITY FUND, LLC

By:  Beach Point Capital Management LP, 

Its Investment Manager

By:  

/s/ Carl Goldsmith                                      

Name:

Carl Goldsmith

Title:

Managing Partner

POST DISTRESSED MASTER FUND, L.P.

POST TOTAL RETURN MASTER FUND, L.P.

POST STRATEGIC MASTER FUND, L.P.

By:  Beach Point Capital Management LP, 

Its Investment Manager

By:  

/s/ Carl Goldsmith                                      

Name:

Carl Goldsmith

Title:

Managing Partner

[Signature Page to Third Amendment and Limited Waiver to Securities Purchase Agreements]

MARC H. BELL

/s/ Marc H. Bell                                      

STATON FAMILY INVESTMENTS, LTD.

/s/ Daniel C. Staton                                 

[Signature Page to Third Amendment and Limited Waiver to Securities Purchase Agreements]

CANYON VALUE REALIZATION FUND, L.P.

FINVEST CAPITAL LTD.

CANYON BALANCED EQUITY MASTER FUND, LTD.

MACVEST 1, LTD.

CANPARTNERS INVESTMENTS IV, LLC

INSTITUTIONAL BENCHMARKS SERIES

(MASTER FEEDER) LIMITED IN RESPECT

 OF CENTAUR SERIES

(each, only as to the 2005 SPA and related agreements)

By:

Canyon Capital Advisors LLC, 

on behalf of its participating funds 

and managed accounts

By:  

/s/ Mitchell R. Julis                                      

Name:  Mitchell R. Julis

Title:   Authorized Signatory

[Signature Page to Third Amendment and Limited Waiver to Securities Purchase Agreements]

AGENT:

U. S. BANK NATIONAL ASSOCIATION,

As Administrative Agent and Collateral Agent

By:  

/s/ Kathy L. Mitchell                                      

Name:  Kathy L. Mitchell

Title:   Vice President

[Signature Page to Third Amendment and Limited Waiver to Securities Purchase Agreements]Exhibit 4.57

Exhibit 4.57

EXECUTION COPY 

Interactive Network, Inc. 

6800 Broken Sound Parkway NW, Suite 100 

Boca Raton, FL 33487

October 8, 2009

Via e-mail 

To the Holders
and Agent under the SPA 

referred to below 

	
 

	
 

	
Re:

	
Amendment
  No. 2 and Waiver to Securities Purchase Agreement relating to Interactive
  Network, Inc. 

Ladies and
Gentlemen: 

We write this
Amendment No. 2 and Waiver to Securities Purchase Agreement (this “Amendment
and Waiver”) in connection with that certain Securities Purchase Agreement,
dated as of December 6, 2007, among Interactive Network, Inc., a Nevada
corporation (the “Issuer”), the “Senior Guarantors” and “Subordinated
Guarantors” defined therein and party thereto, the “Holders” defined therein
and party thereto and U.S. Bank National Association as administrative agent
and collateral agent for the Holders (the “Agent”), as amended by that
certain Amendment No. 1 to Securities Purchase Agreement, dated as of January
14, 2008 (as so amended, the “SPA”). Terms capitalized but not defined in this
Amendment and Waiver have the respective meanings ascribed in the SPA.  

1. Amendments
to SPA. The SPA is hereby amended as follows: 

          (a)
All references to “Penthouse Media Group Inc.” and “PMGI” in the SPA are hereby
deleted and replaced with “FriendFinder Networks Inc.” and “FFN”, respectively.
All references to “PMGI Notes” are hereby deleted and replaced with “FFN
Notes”. 

          (b)
Effective as of the Closing Date, the definition of “Consolidated Coverage
Ratio” in Section 1.01 of the SPA is amended it its entirety to read as
follows: 

““Consolidated
Coverage Ratio” means, with respect to the Issuer on any Determination Date,
the ratio of: 

          (a)
Consolidated EBITDA for the applicable Measurement Period, to 

          (b)
(i) Consolidated Interest Expense of the Issuer during such Measurement Period
plus (ii) dividends or distributions on or in respect of any Capital Stock of
any Senior Obligor paid during such Measurement Period (except dividends or
distributions paid to the Issuer or another Senior Obligor and to the extent
permitted by Section 7.02(h)); provided that the Consolidated Coverage Ratio
shall be calculated giving pro forma effect, as of the beginning of the
applicable Measurement Period, to any acquisition, incurrence, permanent repayment
or redemption of Indebtedness (including the Notes), issuance or redemption of
Disqualified Capital Stock, acquisition, Asset Sale, 

1

or purchases
of assets that were previously leased, at any time during or subsequent to such
Measurement Period, but on or prior to the applicable Determination Date. 

In making such
computation, Consolidated Interest Expense: 

          (a)
attributable to any Indebtedness bearing a floating interest rate shall be
computed on a pro forma basis as if the rate in effect on the date of
computation had been the applicable rate for the entire Measurement Period, 

          (b)
attributable to interest on any Indebtedness under a revolving Credit Facility
shall be computed on a pro forma basis based upon the average daily balance of
such Indebtedness outstanding during the applicable Measurement Period, 

          (c)
attributable to non-cash interest expense resulting from the amortization of
the original issue discount on the Notes, the Seller Notes and the Second Lien
Notes in accordance with GAAP shall be excluded from such computation (for the
avoidance of doubt, interest paid in kind with respect to unsecured promissory
notes issued to the Sellers in connection with the Various Acquisition shall be
included in such computation), and 

          (d)
excludes any Amendment Fee and Waiver Fee provided in Sections 2 and 3 of
Amendment No. 2 and Waiver to Securities Purchase Agreement dated as of October
8, 2009, so long as such Amendment Fee or Waiver Fee is not paid out of
proceeds from the Qualified Initial Public Offering. 

For purposes
of calculating Consolidated EBITDA of the Issuer for the applicable Measurement
Period, 

          (a)
any Person that is a Subsidiary on such Determination Date (or would become a
Subsidiary on such Determination Date in connection with the transaction that
requires the determination of the Consolidated Coverage Ratio) shall be deemed
to have been a Subsidiary at all times during such Measurement Period, 

          (b)
any Person that is not a Subsidiary on such Determination Date (or would cease
to be a Subsidiary on such Determination Date in connection with the
transaction that requires the determination of the Consolidated Coverage Ratio)
will be deemed not to have been a Subsidiary at any time during such
Measurement Period, 

          (c)
if any Senior Obligor shall have in any manner (i) acquired (including through
an asset acquisition or the commencement of activities constituting such
operating business), or (ii) disposed of (including by way of an Asset Sale or
the termination or discontinuance of activities constituting such operating
business) any operating business during such Measurement Period or after the
end of such Measurement Period and on or prior to the Determination Date, such
calculation shall be made on a pro forma basis in accordance with GAAP as if,
in the case of an asset acquisition or the commencement of activities
constituting such operating business, all such transactions had been
consummated on the first day of such Measurement Period and, in the case of an
Asset Sale or termination or discontinuance of activities 

2

constituting
such operating business, all such transactions had been consummated prior to
the first day of such Measurement Period; provided, however, that such pro
forma adjustment shall not give effect to the Consolidated EBITDA of any
acquired Person to the extent that such Person’s net income would be excluded
pursuant to clauses (a) through (g) of the definition of Consolidated Net
Income; and 

          (d)
any Indebtedness incurred and proceeds thereof received and applied as a result
of the transaction giving rise to the need to calculate the Consolidated
Coverage Ratio will be deemed to have been so incurred, received and applied on
the first day of such Measurement Period.” 

          (c)
Effective as of the Closing Date, the definition of “Consolidated EBITDA” in
Section 1.01 of the SPA is hereby amended in its entirety to read as follows: 

          ““Consolidated
EBITDA” means, with respect to any period, Consolidated Net Income for such
period increased (without duplication), to the extent deducted in calculating
such Consolidated Net Income, by (a) Consolidated Income Tax Expense for such
period; (b) Consolidated Interest Expense for such period without regard to the
proviso therein relating to reduction of Consolidated Interest Expense for
Subsidiaries that are not Wholly-Owned Subsidiaries of the Issuer; (c) the
reduction in revenue for fiscal years ended 2007 and 2008 resulting from adjusting
deferred revenue for fair value in connection with the purchase accounting
adjustments; and (d) depreciation, amortization and any other non-cash items
for such period, less any non-cash items to the extent they increase
Consolidated Net Income (including the partial or entire reversal of reserves
taken in prior periods) for such period, of the Issuer and its Subsidiaries,
including without limitation, amortization of capitalized debt issuance costs
for such period, all of the foregoing determined on a consolidated basis for
the Issuer and its Subsidiaries in accordance with GAAP; provided that, if any
Subsidiary is not a Wholly Owned Subsidiary of the Issuer, Consolidated EBITDA
shall be reduced (to the extent not otherwise reduced in accordance with GAAP)
by an amount equal to (A) the amount of Consolidated EBITDA attributable to
such Subsidiary multiplied by (B) the percentage ownership interest in such
Subsidiary not owned on the last day of such period by the Issuer or any of its
Subsidiaries.” 

          (d)
The definition of “Consolidated Interest Expense” in Section 1.01 of the SPA is
amended to include any Amendment Fee and Waiver Fee provided for in Sections
2 and 3 hereof. 

          (e)
The definition of “Excess Cash Flow” in Section 1.01 of the SPA is hereby
amended in its entirety to read as follows: 

          ““Excess
Cash Flow” means, with respect to any Person for any period, (i)
Consolidated Net Income of such Person and its Subsidiaries for such period,
plus (ii) all non-cash items of such Person and its Subsidiaries deducted in
determining Consolidated Net Income for such period, plus (iii) the reduction
in revenue for such period resulting from adjusting deferred revenue for fair
value in connection with the purchase accounting adjustments, and less (iv) the
cash portion of Capital Expenditures made by such Person 

3

and its
Subsidiaries during such period to the extent permitted to be made under this
Agreement, plus (v) all cash and non-cash VAT Liability items deducted in determining
Consolidated Net Income for such period that relate to activities of Various,
Inc. or its Subsidiaries prior to July 1, 2008. For the avoidance of doubt, no
payment of VAT Liability that relates to activities of Various, Inc. or its
Subsidiaries prior to July 1, 2008, irrespective of whether such payments are
permitted by Section 7.02(q), shall be deducted in calculating Consolidated Net
Income. For the further avoidance of doubt, (y) any refunds of VAT Liability
payments made by any Governmental Authority, after any Obligor has deducted any
funds required by law to be reserved for refunds to customers relating to
transactions that have occurred on and after July 1, 2008, and (z) net cash
proceeds (after attorney’s fees and expenses and any funds required by law to
be reserved for refunds to customers) relating to any final nonappealable
judgments of any successful prosecution of claims relating to VAT Liability
against third parties corresponding to periods prior to July 1, 2008 relating
to the activities of Various, Inc. or its Subsidiaries shall in each case be
included in Excess Cash Flow.” 

          (f)
The definition of “Measurement Period” in Section 1.01 of the SPA is hereby
amended by adding the following at the end thereof: 

          “Notwithstanding
the foregoing, for purposes of the quarters ended March 31, 2008, June 30, 2008
and September 30, 2008, the Measurement Period shall be the quarterly period
most recently ended.” 

          (g)
The definition of “PMGI Notes” in Section 1.01 of the SPA is hereby amended in
its entirety to read as follows: 

          ““FFN
Notes” means (i) FFN’s 15% Senior Secured Notes due 2010 in the initial
aggregate principal amount of $5,000,000 issued pursuant to the Securities
Purchase Agreement, dated as of August 28, 2006, by and among FFN, each
Subsidiary of FFN listed as a guarantor therein, the holders of the securities
listed therein, and the agent party thereto, as amended, (ii) FFN’s 15% Senior
Secured Notes due 2010 in the initial aggregate principal amount of $33,000,000
issued pursuant to the Securities Purchase Agreement, dated as of August 17,
2005, by and among FFN, each Subsidiary of FFN listed as a guarantor therein,
the holders of the securities listed therein, and the agent party thereto, as amended
and (iii) the Subordinated Notes.” 

          (h)
In Section 1.01 of the SPA, the definition of “Qualified Initial Public
Offering” is hereby amended by deleting the references to “Company” therein and
inserting “FFN” in its place. 

          (i)
Section 1.01 of the SPA is hereby amended by the addition of the following
definitions (in the appropriate alphabetical location of Section 1.01): 

          ““Other
Waivers” means collectively (i) that certain Third Amendment and Limited
Waiver to the Securities Purchase Agreements relating to the FFN Notes (other
than the Subordinated Notes), (ii) the amendment and waiver agreement with
respect to 

4

the
Subordinated Notes dated October 8, 2009 and (iii) the waiver from the holders
of the Second Lien Notes, each as in effect as of the Second Amendment
Effective Date.” 

          ““Second
Amendment Effective Date” means the date on which Amendment No. 2 and
Waiver to Securities Purchase Agreement dated as of October 8, 2009, which
amends this Agreement, became effective pursuant to its terms.” 

          ““VAT”
means value added tax and related interest, fines and penalties.” 

          ““VAT
Liability” means all liabilities, monetary obligations, losses, damages,
punitive damages, consequential damages, costs and expenses (including all
reasonable fees, disbursements and expenses of counsel, experts and consultants
and costs of investigations, but excluding all such amounts arising in
connection with pursuit of indemnification and other damages and remedies concerning
the VAT Liability), fines, penalties, sanctions and interest incurred as a
result of any claim or demand by any Governmental Authority or any third party,
and which relate to payment of VAT by any Obligor.” 

          ““Waiver
Fees” means (i) a non-refundable waiver fee equal to 1.00% of the
outstanding principal amount of the Notes on the date of the earlier of (a)
consummation of a Qualified Initial Public Offering or (b) March 31, 2010
payable to the Holders of the Notes; and (ii) a non-refundable waiver fee equal
to 1.00% of the outstanding principal amount of the Second Lien Notes on the
date of the earlier of (a) consummation of a Qualified Initial Public Offering
or (b) March 31, 2010 payable to the Holders of the Second Lien Notes; provided,
however, that if the waiver fees with respect to the Notes are increased, the
waiver fees with respect to the Second Lien Notes will be similarly increased.”

          (j)
Section 2.04(b) of the SPA is hereby amended and restated in its entirety to
read as follows: 

                    “(b)
Default Interest. To the extent permitted by law, upon the occurrence
and during the continuance of a Default or an Event of Default other than a
Default or Event of Default which has been waived pursuant to Amendment No. 2
and Waiver to this Agreement dated as of October 8, 2009, the principal of, and
all accrued and unpaid interest on, all Notes, fees, indemnities or any other
Obligations of the Obligors under this Agreement and the other Note Documents,
shall bear interest, from the date such Default or Event of Default occurred
until the date such Default or Event of Default is cured or waived in writing
in accordance herewith, at a rate per annum equal at all times to the
Post-Default Rate.” 

          (k)
Section 2.04(e) of the SPA is hereby amended by deleting the following sentence
“Interest at the applicable Post-Default Rate shall be payable on demand.” and
replacing it with “Interest at the applicable Post-Default Rate shall be
payable in cash on demand. For the avoidance of doubt, Defaults waived by
Amendment No. 2 and Waiver to this Agreement dated as of October 8, 2009 shall
not be subject to the Post-Default Rate.” 

          (l)
Section 2.07(a) of the SPA is hereby amended in its entirety to read as follows:

5

          “(a)
On the 45th day (or the next succeeding Business Day if the 45th day is not a
Business Day) after the end of each Fiscal Quarter ending prior to the Second
Amendment Effective Date, or on the 35th day (or the next succeeding Business
Day if the 35th day is not a Business Day) after the end of each Fiscal Quarter
ending after the Second Amendment Effective Date, as applicable, in each case
other than any Fiscal Quarter ending December 31 which repayment shall be
governed pursuant to Section 2.07(b) below, the Issuer shall make principal
payments on the Notes, commencing March 31, 2008, in an aggregate amount equal
to 90% of the Excess Cash Flow (if any) of the Issuer and its Subsidiaries for
such quarterly period. The Issuer will provide written notice to the Agent
describing the amount of any payment to be made pursuant to this Section
2.07(a) no later than fifteen (15) days prior to the date any payment is
required to be made pursuant to the terms hereof.” 

          (m)
The first paragraph of Section 2.07(b) is hereby amended in its entirety to
read as follows: 

          “(b)
The Issuer shall make principal payments on the Notes in annual installments on
the 45th day (or the next succeeding Business Day if the 45th
day is not a Business Day) following the date set forth below (each such date,
an “Installment Payment Date”), or on the 35th day (or the
next succeeding Business Day if the 35th day is not a Business Day)
following an Installment Payment Date occurring after the Second Amendment
Effective Date, as applicable, commencing on December 31, 2008, in an aggregate
amount equal to the greater of (x) 90% of the Excess Cash Flow (if any) of the
Issuer and its Subsidiaries for the Fiscal Quarter most recently ended on
December 31 and (y) the amount specified below for each such Installment
Payment Date, less the aggregate amount of all repayments, if any, made
in the immediately preceding three Fiscal Quarters pursuant to Section 2.07(a)
above: 

	
 

	
 

	
 

	
 

	
 

	
Installment
  Payment Date

	
 

	
 

	
Installment Amount

	
 

	 

	
 

	 

	 

	
 

	
December 31,
  2008

	
 

	
$

	
25,733,763

	
 

	
December 31,
  2009

	
 

	
$

	
38,600,644

	
 

	
December 31,
  2010

	
 

	
$

	
51,467,526

	
 

	
Final
  Maturity Date

	
 

	
$

	
141,535,696”

	
 

          (n)
Section 2.07(e) of the SPA is hereby amended in its entirety to read as follows:

          “Not
later than ten Business Days following the receipt of cash proceeds (after
deduction of (i) underwriting discounts and commissions and (ii) unpaid
out-of-pocket expenses of up to $11,000,000 less any amounts already paid or
from time to time paid for expenses in connection with a Qualified Initial
Public Offering under clauses (1) and (2) of Section 7.02(h)(c) hereof) from a
Qualified Initial Public Offering, the Issuer shall (i) pay the Waiver Fees, if
not already paid on March 31, 2010 in accordance with the definition of “Waiver
Fees,” (ii) after payment of the Waiver Fees, prepay the Notes in an aggregate
amount equal to 50% of the remaining cash proceeds received from such 

6

Qualified
Initial Public Offering at a redemption price of 115% of the principal amount
redeemed, plus accrued and unpaid interest thereon to such redemption date, and
(iii) to the extent there are remaining cash proceeds received from such
Qualified Initial Public Offering, prepay as much as possible any remaining
Notes, at a redemption price of 105% of the principal amount redeemed, plus
accrued and unpaid interest thereon to such redemption date; provided that,
notwithstanding the foregoing, if any holder of Notes foregoes its right to
receive such prepayment, such funds must be used to prepay the other holders of
Notes on a pro rata basis with 50% of such proceeds to be paid at a redemption
price of 115% of the principal amount redeemed and the remaining 50% of such
proceeds to be paid at a redemption price of 105% of the principal amount
redeemed.” 

          (o)
Section 2.08 of the SPA is hereby amended by adding the phrase “Subject to the
third paragraph of this Section 2.08,” at the beginning of the first paragraph
and adding the following new paragraph at the end of Section 2.08: “The rights
described in the foregoing two paragraphs of this Section 2.08 shall not
commence until the consummation of a Qualified Initial Public Offering with
gross proceeds to FFN of less than $25,000,000. In the event that FFN consummates
a Qualified Initial Public Offering with gross proceeds to FFN of $25,000,000
or more, the rights described in the foregoing two paragraphs of this Section
2.08 shall terminate. The foregoing two sentences cannot be modified or deleted
without the written consent of the holders of the Class B Notes.” 

          (p)
Section 5.02(f) of the SPA is hereby amended by adding the following at the end
thereof: 

          “If
revenue generated from the credit card processing agreements referenced in the
officer certificate at any time (measured at the end of each calendar month)
accounts for less than 90% of the credit card processing revenue of the Issuer
or any of its Subsidiaries, the Issuer shall within 30 days of such date,
deliver additional credit card processing agreements to account for at least
90% of credit card processing revenue, together with a new certificate signed
by an Authorized Officer of the Issuer and the Senior Guarantors certifying
that the schedule of credit processing agreements attached to such certificate
account for at least 90% of the credit card processing revenue of the Issuer
and the Senior Guarantors.” 

          (q)
Section 7.01(a)(4) of the SPA is hereby amended by adding the following at the
end thereof: “Such officer’s certificate shall contain an affirmative statement
that no Default or Event of Default has occurred and is continuing with respect
to Sections 7.02(a) and (q) or, if a Default or Event of Default existed,
describing the nature and period of existence thereof and the action which the
Obligors propose to take or have taken with respect thereto;” 

          (r)
Section 7.01(i)(2) of the SPA is hereby amended in its entirety to read as
follows: 

          “(2)
Without limitation to Section 7.01(i)(1), (A) promptly notify the Agent of any
material accounts established after the Closing Date that would have been
required to be disclosed on Schedule 6.01(v) if they had been maintained
as of the Closing Date, (B) cause to be promptly executed and delivered an
Account Control Agreement relating 

7

to each new
account required to be disclosed pursuant to the foregoing clause (A), except
for the Accommodation Bank Accounts, as such term is defined below, and (C)
take such other action reasonably requested by the Agent to maintain the
validity, perfection and priority of the Holders’ Liens on such accounts,
except for the Accommodation Bank Accounts (other than the Wells Fargo Bank
Account listed on Schedule 7.01(u), to which this clause (C) does apply).” 

          (s)
Section 7.01(u) of the SPA is hereby amended in its entirety to read as
follows: 

          “(u)
Accommodation Bank Accounts. Cause the following conditions to be met
with respect to the bank accounts listed on Schedule 7.01(u) hereto (the
“Accommodation Bank Accounts”): 

	
 

	
 

	
 

	
 

	
(1)

	
Sweep all
  funds contained in the account of Wachovia Bank, National Association
  described on Schedule 7.01(u) to a Secured Obligor’s operating account
  that is subject to an effective Account Control Agreement at the following
  times: (i) at least once each calendar month following the Second Amendment
  Effective Date, and (ii) at such time as the account balance equals or
  exceeds $25,000, which sweep shall be the only means by which the account
  holder may deduct funds from this account. Following any sweep, a maximum of
  $2,500 may remain in the account and no sweep will be required if the account
  balance is not greater than $2,500; 

	
 

	
 

	
 

	
 

	
(2)

	
Sweep all
  funds contained in each account of Bank of America described on Schedule
  7.01(u) to a Secured Obligor’s operating account that is subject to an
  effective Account Control Agreement at the following times: (i) at least once
  each calendar month following the Second Amendment Effective Date, and (ii)
  at such time as the account balance of each such account equals or exceeds
  $25,000, which sweep shall be the only means by which the account holder may
  deduct funds from each such account. Following any sweep, a maximum of $2,500
  may remain in each account and no sweep will be required if the account
  balance is not greater than $2,500; 

	
 

	
 

	
 

	
 

	
(3)

	
Sweep all
  funds contained in the account of PayPal described on Schedule 7.01(u)
  to a Secured Obligor’s operating account that is subject to an effective
  Account Control Agreement at the following times: (i) at least once each
  calendar month following the Second Amendment Effective Date, and (ii) at
  such time as the account balance equals or exceeds $25,000, which sweep shall
  be the only means by which the account holder may deduct funds from this
  account. Following any sweep, a maximum of $2,500 may remain in the account
  and no sweep will be required if the account balance is not greater than
  $2,500; 

8

	
 

	
 

	
 

	
 

	
(4)

	
Cause the
  aggregate account balances of the Dresdner Bank AG accounts described on Schedule
  7.01(u) to remain below €35,000 at all times following the Second
  Amendment Effective Date; 

	
 

	
 

	
 

	
 

	
(5)

	
Cause the
  Wells Fargo Bank account listed on Schedule 7.01(u) to be subject to
  an Account Control Agreement no later than sixty (60) days following the
  Second Amendment Effective Date; and 

	
 

	
 

	
 

	
 

	
(6)

	
Cause the
  funds deposited into the ING EURO – Belgium account listed on Schedule
  7.01(u) to be used solely to pay VAT Liability for Spain in a manner
  otherwise consistent with this Agreement. 

          (t)
Section 7.01(v) of the SPA is hereby amended in its entirety to read as
follows: 

          “(v)
Board Composition. To the extent allowed by the national securities
exchange on which FFN’s securities are listed, if applicable, FFN shall take
reasonable steps to cause (i) to be nominated one designee of the Required
Holders to the Board of Directors of FFN (and every committee thereof, except
as set forth in this paragraph), which designee shall be (A) reasonably
satisfactory to FFN so long as no Event of Default has occurred and is
occurring or (B) upon the consummation of a Qualified Initial Public Offering,
reasonably acceptable to FFN’s Nominating Committee of the Board of Directors
and subject to compliance with the applicable national securities exchange regulations
(the “Board Designee”) and (ii) one designee of the Required Holders to
be permitted to attend all meetings of the Board of Directors of FFN (and every
committee thereof, except as set forth in this paragraph) as an observer (the “Board
Observer”). The Board of Directors of FFN will meet at least one (1) time
per Fiscal Quarter. If the Board Designee has been designated, he or she will
be entitled to receive copies of all materials distributed at all meetings of
the Board of Directors of FFN. If the Board Observer has been designated, he or
she will be entitled to receive copies of all materials distributed at all
meetings of the Board of Directors of FFN (and every committee thereof, except
as set forth in this paragraph). However, the Board Observer may be excused
from any meeting of the Board of Directors or any committee thereof, and may be
limited from receiving any board materials, upon the advice of FFN’s outside
counsel and, among other things, will be subject to the same confidentiality
requirements as if he or she were a Director. Upon election of the Board
Designee, FFN will execute a customary form of indemnification agreement in
favor of the Board Designee in his or her capacity as a director of FFN. At all
times during the tenure of the Board Designee, FFN shall maintain a directors’
and officers’ liability insurance policy with coverage in an amount not less
than $10,000,000 from financially sound and reputable insurers. FFN shall pay
to the Board Designee the same compensation for his or her services as a
director of FFN as the compensation, if any, paid to non-employee directors of
FFN. Notwithstanding any of the foregoing, the Board Designee shall not be
entitled to representation on FFN’s Audit Committee, Nominating and Corporate
Governance Committee and Compensation Committee.” 

          (u)
Section 7.01(w) of the SPA is hereby amended in its entirety to read as
follows: 

9

          “(w)
Back-Up Data Center. Cause a Back-Up Data Center to be established,
completed and fully operational by March 31, 2009.” 

          (v)
Section 7.01 of the SPA is hereby amended by adding the following new clauses
at the end thereof: 

          “(x)
Registration Statement. Cause the first Demand Registration Statement
(as defined in the Registration Rights Agreement) to be filed in accordance
with the Registration Rights Agreement no later than four months after the
consummation of the Qualified Initial Public Offering and use its best efforts
to cause the first Demand Registration Statement to be declared effective by
the SEC no later than 180 days after the consummation of the Qualified Initial
Public Offering. Notwithstanding the foregoing, the declaration of
effectiveness of such Demand Registration Statement may be delayed to provide
for any customary lock-up period and extension required by the underwriters of
the Qualified Initial Public Offering, and such delay shall not constitute a
breach of this covenant. 

          (y)
Landlord and Collocation Consents. No later than sixty (60) days after
entering into a real property lease (including a production facility lease)
(but in no event less than sixty (60) days after the Second Amendment Effective
Date), use its commercially reasonable efforts to obtain a landlord consent, in
form and substance satisfactory to the Required Holders, for each such real
property lease. No later than sixty (60) days after entering into a service
agreement concerning the collocation of servers, obtain a letter agreement, in
form and substance satisfactory to the Required Holders, from each such new
counterparty to a service agreement relating to such servers. 

          (z)
Application of Proceeds from VAT Refunds. Cause (i) any refunds or
similar payments by Governmental Authorities of VAT corresponding to periods
prior to July 1, 2008 relating to the activities of Various, Inc. or its
Subsidiaries or (ii) net cash proceeds (after attorney’s fees and expenses and
any funds required by law to be reserved for refunds to customers) relating to
any final nonappealable judgments of any successful prosecution of claims
relating to VAT Liability against third parties corresponding to periods prior
to July 1, 2008 relating to the activities of Various, Inc. or its Subsidiaries
to be treated as Excess Cash Flow.” 

          (w)
Section 7.02(a) of the SPA is hereby amended by adding the following at the end
thereof: “Notwithstanding anything to the contrary set forth in this Agreement
or any other Note Document, any Lien upon or with respect to any of the
properties of any Obligor arising from, or in connection with, any VAT
Liability shall constitute an immediate Event of Default, except for Liens that
may be deemed to arise on frozen assets not exceeding €610,343 with respect to
that certain Various, Inc. credit card processing account administered by
Global Collect, NV located in the Netherlands.” 

          (x)
Section 7.02(h) of the SPA is hereby amended in its entirety to read as
follows: 

10

          “(h)
Restricted Payments. (i) Declare or pay any dividend or other
distribution, direct or indirect, on account of its Capital Stock now or
hereafter outstanding, (ii) make any payment pursuant to a guaranty by Issuer
or any Subsidiary of the Issuer of any FFN Note or any Seller Note, (iii)
repurchase, redeem, retire, defease, make any payment in respect of a sinking
fund or similar payment, purchase or make any other acquisition for value,
direct or indirect, of its Capital Stock or any direct or indirect parent of
any Obligor, now or hereafter outstanding, (iv) make any payment to retire, or
to obtain the surrender of, any outstanding warrants, options or other rights
for the purchase or acquisition of shares of any class of its Capital Stock,
now or hereafter outstanding, (v) return its Capital Stock to any shareholders
or other equity holders of any Obligor or any of its Subsidiaries, or make any
other distribution of property, assets, shares of Capital Stock, warrants,
rights, options, obligations or securities thereto as such or (vi) except for
transactions set forth on Schedule 7.02(h)(i) with respect to the Issuer
and Schedule 7.02(h)(ii) with respect to FFN, hereto, pay any salaries,
bonuses, management fees, or other form of compensation, fees or expenses
(including the reimbursement thereof by any Obligor or its Subsidiaries) to any
of its stockholders or other equityholders, Subsidiaries or Affiliates, or to
any employees or family members thereof (collectively, “Restricted Payments”);
provided, however, (a) in connection with the payment of any tax
obligations of FFN pursuant to a consolidated tax return, the Issuer and any
Subsidiary of the Issuer may make payments to FFN in such amounts equal to the
tax obligations attributable to the operations of Issuer and such Subsidiaries
of Issuer, (Schedule 7.02(h)(a) sets forth the true, correct and
complete list of the amounts and dates of the payments made as of the Second
Amendment Effective Date by the Issuer or its Subsidiaries under this clause
(a), and also sets forth Obligors’ good faith estimate of such payments to be
made after the Second Amendment Effective Date), (b) any Subsidiary of the
Issuer may pay dividends to the Issuer or any Wholly-Owned Subsidiary of the
Issuer, and any Subsidiary of FFN which is a Subordinated Guarantor and not a
Subsidiary of the Issuer may pay dividends to FFN, and (c) provided that no
Default or Event of Default is continuing or would result therefrom (except for
defaults that have been waived by Amendment No. 2 and Waiver to Securities
Purchase Agreement dated as of October 8, 2009), (1) the Issuer may make
Restricted Payments described in clause (i) above to FFN in the amounts of not
more than $6,000,000 during the first Fiscal Quarter of 2008 ($5,000,000 of
which is to be used for general corporate purposes, including but not limited
to the payment of fees and expenses incurred by FFN in connection with and
related to the preparation and filing of registration statements for the public
offering of securities of FFN and $1,000,000 of which shall be limited in use
to payment of actual fees and expenses of third parties in connection with such
public offering of FFN securities); (2) the Issuer or Various, Inc. may pay or
make Restricted Payments to provide funds for FFN to pay the actual fees and
expenses of third parties in connection with a Qualified Initial Public
Offering up to and including the fourth Fiscal Quarter of 2009 in an aggregate
additional amount not to exceed $5,000,000; and (3) the Issuer or Various, Inc.
may make additional Restricted Payments to make cash interest payments on the
FFN Notes and to pay operating expenses, in an aggregate amount not to exceed
an amount per Fiscal Quarter commencing the second Fiscal Quarter of 2008 equal
to $1,000,000 plus the Available Excess Cash Flow for the Fiscal Quarter most
recently ended before an additional Restricted Payment is proposed to be made,
and FFN shall be required to use the full amount of such Available Excess Cash
Flow to make such cash interest payments; provided, however, that no $1,000,000
payments in this clause  (3) shall be
made if FFN is able to make cash interest payments on the FFN Notes and meet
its other obligations for operating expenses (which operating expenses have
been incurred in the ordinary course of business in an amount not to exceed
110% of historical levels over the preceding three fiscal quarters) without
such $1,000,000 payments but with such Available Excess Cash Flow and net
operating cash flow from FFN’s business operations.” 

11

          (y)
Section 7.02 of the SPA is hereby amended by adding a new clause (q) at the end
thereof to read as follows: 

          “(q)
VAT Payments. Make any payments arising from, or in connection with, any
VAT Liability (i) that was accrued prior to July 1, 2008, (ii) that is past due
or (iii) that relates to any activities of Various, Inc. or its Subsidiaries
prior to July 1, 2008, including in each case fees and penalties relating
thereto, (A) in excess of $10,000,000 (inclusive of all such payments made
prior to the Second Amendment Effective Date) in aggregate through the third
Fiscal Quarter of 2010 or (B) in excess of $10,000,000 in aggregate from the
fourth Fiscal Quarter of 2010 through June 30, 2011; provided that the payments
permitted under the immediately preceding clause (A) shall in no event be paid
with cash of the Obligors other than cash reimbursed with proceeds from the
Working Capital Escrow Amount (as defined in the Various Acquisition Agreement)
attributable to the VAT Liability (or for payments made prior to the Second
Amendment Effective Date, reimbursed from the Working Capital Escrow Amount).” 

          (z)
Section 7.03(c) of the SPA is hereby amended in its entirety to read as
follows: 

          “(c)
Consolidated Coverage Ratio. Permit the Consolidated Coverage Ratio
during any period to be less than the amount specified for such period in Schedule
7.03(c); provided however, for the following Measurement Periods ending
after the Second Amendment Effective Date, they shall be as follows: 

	
 

	
 

	
 

	
 

	
i.

	
September
  30, 2009

	
 

	
1.7 to 1.0

	
 

	
 

	
 

	
 

	
ii.

	
December 31,
  2009

	
 

	
1.7 to 1.0

	
 

	
 

	
 

	
 

	
iii.

	
March 31,
  2010

	
 

	
1.8 to 1.0

	
 

	
 

	
 

	
 

	
iv.

	
June 30,
  2010

	
 

	
1.8 to 1.0

	
 

	
 

	
 

	
 

	
v.

	
September
  30, 2010

	
 

	
1.8 to 1.0

	
 

	
 

	
 

	
 

	
vi.

	
December 31,
  2010

	
 

	
1.8 to 1.0

	
 

	
 

	
 

	
 

	
vii.

	
March 31,
  2011

	
 

	
2.0 to 1.0

	
 

	
 

	
 

	
 

	
viii.

	
June 30,
  2011, and at the end of each Measurement Period thereafter

	
 

	
2.1 to 1.0”

          (aa)
Section 7.03(e) of the SPA is hereby amended in its entirety to read as
follows: 

12

          “(e)
Total Debt Ratio. Permit the Total Debt Ratio of the Issuer and its
Subsidiaries during any period to be greater than the amount specified for such
period in Schedule 7.03(e); provided however, for the following three
month periods ending after the Second Amendment Effective Date, they shall be
as follows: 

	
 

	
 

	
 

	
 

	
i.

	
September
  30, 2009

	
 

	
5.6 to 1.0

	
 

	
 

	
 

	
 

	
ii.

	
December 31,
  2009

	
 

	
5.6 to 1.0

	
 

	
 

	
 

	
 

	
iii.

	
March 31,
  2010

	
 

	
5.3 to 1.0

	
 

	
 

	
 

	
 

	
iv.

	
June 30,
  2010

	
 

	
5.3 to 1.0

	
 

	
 

	
 

	
 

	
v.

	
September
  30, 2010

	
 

	
5.3 to 1.0

	
 

	
 

	
 

	
 

	
vi.

	
December 31,
  2010

	
 

	
5.3 to 1.0

	
 

	
 

	
 

	
 

	
vii.

	
March 31,
  2011

	
 

	
4.8 to 1.0

	
 

	
 

	
 

	
 

	
viii.

	
June 30, 2011,
  and at the end of each Measurement Period thereafter

	
 

	
3.4 to 1.0”

          (bb)
Section 9.01(c) of the SPA is hereby amended by (i) deleting “and (i)(2)” and
inserting “, (i)(2) and (z)” in its place and (ii) deleting “and (l)” therein
and inserting “(l) and (q)” in its place. 

          (cc)
Section 9.01 of the SPA is hereby amended by (i) deleting the “or” at the end
of clause (o) thereof, (ii) deleting the period and adding “; or” at the end of
the new clause (q) thereof, (iii) adding the following new clause (q)
immediately after clause (p) thereof to read “if at any time the total VAT
Liability of FFN, the Issuer or any Subsidiary of FFN or the Issuer that
relates to activities of Various, Inc. or its Subsidiaries prior to July 1,
2008 exceeds $45,416,000 plus accrued interest and penalties after June 30,
2009, exclusive of the effect of increases attributable to changes in exchange
rates after June 30, 2009;” (iv) adding the following new clause (r)
immediately after the new clause (q) thereof to read “if the gross proceeds
from a Qualified Initial Public Offering are less than $100 million.” and (v)
amending the phrase “clause (f) or (g)” in clause (i) of the last paragraph of
Section 9.01 to read “clause (f), (g) or (i).” 

          (dd)
Schedule 7.01(u) attached hereto is hereby added as Schedule 7.01(u) to the
SPA. 

          (ee)
Schedule 7.02(h)(a) attached hereto is hereby added as Schedule 7.02(h)(a) to
the SPA. 

          (ff)
Schedule 7.02(h)(ii) is hereby deleted from the SPA and replaced with Schedule
7.02(h)(ii) attached hereto. 

2. Amendment
Fee. Issuer shall pay to the Agent on October 8, 2009 a non-refundable
amendment fee of $3,994,343 which equals 2.00% of the outstanding principal
amount of the Notes (the “Amendment Fee”), which fee shall be due and
payable in cash upon the effective 

13

date of this
Amendment and Waiver and shall be deemed fully earned on such date (it being
understood that the Amendment Fee shall be in addition to any other fees
payable under the SPA and to reimbursement of the fees and expenses of counsel
to the Holders). Payment of the foregoing fee will not be subject to
counterclaim or set-off for, or be otherwise affected by, any claim or dispute
relating to any other matter. The Amendment Fee shall be distributed by the
Agent to the Holders ratably in proportion to the size of each Holder’s Pro
Rata Share. 

3. Waiver
Fees. Issuer shall pay to the Agent the Waiver Fee (described in clause (i)
of the definition of “Waiver Fees”) on the date of the earlier of (a)
consummation of a Qualified Initial Public Offering or (b) March 31, 2010, as
described in Section 2.07(e) of the SPA, as amended by this Amendment and
Waiver (it being understood that such Waiver Fee shall be in addition to any
other fees payable under the SPA and to reimbursement of the fees and expenses
of counsel to the Holders). Payment of such Waiver Fee will not be subject to
counterclaim or set-off for, or be otherwise affected by, any claim or dispute
relating to any other matter. Such Waiver Fee shall be distributed by the Agent
to the Holders ratably in proportion to the size of each Holder’s Pro Rata
Share based on its holdings as of the earlier of (i) the business day
immediately prior to March 31, 2010 and (ii) the business day immediately prior
to the consummation of a Qualified Initial Public Offering. 

4. Limited
Waivers. The undersigned, constituting the Required Holder under the SPA,
hereby waives: 

          (a)
each of the covenants or other provisions or agreements identified on Exhibit
1 attached to this Amendment and Waiver, solely to the extent described on Exhibit
1. Each such respective waiver shall remain effective only if the Issuer
complies with the applicable respective restated obligation (if any) specified
therefor on Exhibit 1; and 

          (b)
any Default or Event of Default in connection with Sections 6.01(h), (i), (k),
(m), (s), (aa), (ee), (ii), (jj), (kk), (mm), and (oo), 7.01(b), 7.03 and
9.01(n) of the SPA arising from, or in connection with, the incurrence or existence
of any VAT Liability of FFN, the Issuer or any Subsidiary of FFN or the Issuer
through the Second Amendment Effective Date (with no cure being required) that
relates to activities of Various, Inc. or its Subsidiaries prior to July 1,
2008. 

          (c)
The parties hereto agree and acknowledge that (i) for purposes of Section 9 of
the Seller Note Subordination Agreement, the execution by U.S. Bank National
Association of this Amendment and Waiver constitutes the prior written consent
of the Senior Interactive Agent for purposes of Section 9 of the Seller Note
Subordination Agreement with respect to the modifications as set forth in Exhibit
D and as described in Exhibit E with respect to the Seller Notes,
(ii) for purposes of Section 5.3(b) of the Interactive First Lien Intercreditor
Agreement, the execution by U.S. Bank National Association of this Amendment
and Waiver constitutes the prior written consent of the Senior Lien Collateral
Agent for purposes of Section 5.3(b) of the Interactive First Lien Intercreditor
Agreement with respect to the modifications set forth in the waiver from the
holders of the Second Lien Notes dated as of the Second Amendment Effective
Date (the “Second Lien Waiver”), (iii) the Required Holders of this Amendment
and Waiver and the holders of the Second Lien Notes pursuant to the Second Lien
Waiver in their capacity as Second Lien Claimholders consent to the
modification of the Subordinated Notes for purposes of Section 5.5(b) of the
PMGI Senior Lien Intercreditor Agreement (for the avoidance of doubt, the 

14

Required
Holders make no representation or warranty as to whether such consent is
sufficient for purposes of Section 5.5(b) of the PMGI Senior Lien Intercreditor
Agreement), and (iv) payment of the amendment and waiver fees pursuant to the
Other Waivers, payment in kind of any interest on the Subordinated Notes or
payment in kind of any interest to be paid pursuant to the modifications as set
forth in Exhibit D and as described in Exhibit E with respect to
the Seller Notes are not subject to the payment subordination provisions of
Section 4.1 of the PMGI Senior Lien Intercreditor Agreement or Section 4.1 of
the Interactive First Lien Intercreditor Agreement; provided, for the avoidance
of doubt, that no interest on the Subordinated Notes or the Seller Notes will
be paid in cash until the prior repayment in full in cash of the Notes. 

5. Most
Favored Nation Provision. It is understood that the Obligors contemplate
entering into the Other Waivers. Except with regard to the Amendment Fee and
Waiver Fee set forth in Sections 2 and 3 hereof vis a vis (i) the
amendment fees and/or the waiver fees provided for in Section 4 of the Third
Amendment and Limited Waiver to the Securities Purchase Agreements relating to
the FFN Notes (other than the Subordinated Notes) and (ii) the amendment fee
provided in the amendment and waiver agreement with respect to the Subordinated
Notes dated October 8, 2009, in the event that the language or provisions of
the Other Waivers with respect to a provision common to, or covering the same
subject matter as, both the SPA and the financing agreement relating to the
Other Waivers executed in connection with the Other Waivers is more favorable
to the holders of such financing agreement than is the corresponding restated
obligation to the Holders under this Amendment and Waiver, such more favorable
restated obligation shall supersede and be deemed substituted for such
corresponding Amendment and Waiver obligation herein for the benefit of all
Holders under the SPA. 

6. Representations
and Warranties of the Issuer. To induce the Holders to enter into this
Amendment and Waiver, the Issuer hereby represents and warrants to each Holder
as follows: 

          (a)
The Issuer’s Due Organization, Power and Authority, Etc. The Issuer is a
corporation duly organized, validly existing and in good standing under the
laws of the State of Nevada, having full power and authority (i) to own its
properties and to carry on its business as presently conducted and as proposed
to be conducted, (ii) to execute and deliver this Amendment and Waiver and
(iii) to consummate the other transactions contemplated hereby. The Issuer is
duly qualified to transact business and is validly existing and in good
standing in each jurisdiction in which the failure so to qualify, individually
or in the aggregate, could reasonably be expected to have a Material Adverse
Effect. 

          (b)
Binding Obligations. All corporate action on the part of the Issuer and
its officers, directors and stockholders necessary for the authorization,
execution and delivery of this Amendment and Waiver and the performance of all
obligations of the Issuer hereunder has been taken. This Amendment and Waiver
has been duly executed and delivered by the Issuer. This Amendment and Waiver
constitutes the valid, legal and binding obligations of the Issuer, enforceable
against the Issuer in accordance with its terms, except to the extent that
enforceability may be limited by applicable bankruptcy, insolvency or similar
laws affecting the enforcement of creditors’ rights generally and subject to
general principles of equity (regardless of whether such enforcement is
considered in a proceeding at law or at equity). 

15

          (c)
VAT Payments. Attached hereto as Schedule 1 is a true, correct
and complete disclosure of all payments made by any Obligor to any Governmental
Authorities in connection with any VAT Liability of FFN, the Issuer or any
Subsidiary of FFN or the Issuer through the Second Amendment Effective Date
(including a breakdown of (i) all such payments of VAT Liability relating to
activities prior to July 1, 2008, (ii) all such payments of VAT liability
relating to activities after July 1, 2008 and (iii) a reasonably detailed
description of the Obligors’ good faith estimate of its VAT liability relating
to activities prior to July 1, 2008). 

          (d)
FriendFinder (Switzerland) AG. Pursuant to that certain Friendfinder
(Switzerland) AG Share Sale and Purchase Agreement, by and between Various,
Inc. and Translex International Ltd. (“Translex”), effective date October 27,
2008, Various, Inc. sold the outstanding shares of FriendFinder (Switzerland)
AG to Translex for the purchase price of CHF 1.00, payable in cash. Other than
cash in FriendFinder (Switzerland) AG’s bank account not exceeding U.S.
$30,000, which was paid to Various, Inc., FriendFinder (Switzerland) AG had no
assets of greater than nominal value immediately prior to transfer of the
shares in FriendFinder (Switzerland) AG to Translex. 

          (e)
Terminated Subsidiaries. The Board of Directors of FFN has determined
that the preservation of each of FriendFinder Processing (India) Private
Limited and FriendFinder (Switzerland) AG is no longer necessary or desirable
in the conduct of the business of FFN and its Subsidiaries. In addition, each
of Streamray Processing Philippines, Inc. and FriendFinder Processing
Philippines, Inc. has expired pursuant to the terms of its organizational
documents. Each of FriendFinder Processing (India) Private Limited, FriendFinder
(Switzerland) AG, Streamray Processing Philippines, Inc. and FriendFinder
Processing Philippines, Inc. (together, the “Terminated Subsidiaries”)
has been dissolved, divested, sold or expired and had either no assets or
nominal assets at the time of such dissolution, divestiture, sale or
expiration. 

7. Effectiveness
of Amendment and Waiver. This Amendment and Waiver shall become effective
only upon the satisfaction or waiver by the Required Holders of all of the
following conditions precedent: 

          (a)
Agent shall have received this Amendment and Waiver, duly executed and
delivered by the Issuer, the Required Holders and the Guarantors; 

          (b)
Payment by the Issuer of all accrued fees and expenses due and payable on the
date hereof (including, without limitation, legal fees and expenses of counsel
to the Agent and the Holders), and, to the extent invoiced, reimbursement or
other payment of out-of-pocket expenses required to be reimbursed or paid by
the Issuer hereunder or under any other Funding Document; 

          (c)
Required Holders shall have received, or shall be simultaneously receiving, the
Other Waivers and the letter agreement between the Issuer, the holders of the
Seller Notes, and the other parties thereto, in the form attached hereto as Exhibit
E, in form and substance satisfactory to the Required Holders; 

          (d)
Agent shall have received payment of the Amendment Fee provided in Section 2
above; 

16

          (e)
Issuer shall have delivered to Agent an updated copyright schedule as of August
1, 2009; 

          (f)
The Registration Rights Agreement shall have been amended to effectuate the
provisions of 7.01(x) of the SPA, as amended hereby; 

          (g)
Any necessary consents have been obtained to use the proceeds of a Qualified
Initial Public Offering in accordance with the terms of this Amendment and
Waiver; 

          (h)  The letter agreement, dated the date hereof,
relating to the representations and warranties and covenants of FriendFinder
GmbH, a German corporation, shall have been executed and delivered by the
parties thereto; 

          (i)  The Obligors shall have received confirmation
from its independent accountant that upon the effectiveness of the Amendment
and Waiver and the Other Waivers, any going concern qualifications in the
Obligors’ 2008 audited financials will be removed; 

          (j)
Agent shall have received evidence reasonably satisfactory to Holders that
there are sufficient funds in the Working Capital Escrow Amount that will be
released to Issuer to reimburse Issuer for payments for VAT Liability to
Governmental Authorities already made, and to reimburse additional VAT
Liability amounts through September 30, 2010, in an aggregate amount of
$10,000,000; 

          (k)
The receipt by the Required Holders of a certificate or certificates (i)
executed by a duly authorized officer of the Issuer attaching true and complete
copies of resolutions or a written consent of the board of directors of the
Issuer authorizing the execution, delivery and performance of this Amendment
and Waiver, (ii) executed by a duly authorized officer of FFN attaching true
and complete copies of resolutions or written consents of the board of
directors of FFN and the Guarantors listed on Schedule 3 hereto
authorizing the execution, delivery and performance of this Amendment and
Waiver; provided, however, that no later than 60 days after the Second
Amendment Effective Date, FFN shall provide a certificate or certificates of a
duly authorized officer of FFN (the “Additional Officer’s Certificate”)
attaching true and complete copies of resolutions or a written consent of the
board of directors of the Guarantors listed on Schedule 4 hereto
authorizing the execution, delivery and performance of this Amendment and
Waiver, (iii) executed by a duly authorized officer of FFN attaching true and
complete copies of written consents of the requisite stockholders of FFN
consenting to the amendment and restatement of the Certificate of Designations,
Preferences and Rights of Series A Convertible Preferred Stock of FFN
substantially in the form of Exhibit C-1 attached hereto and the
amendment and restatement of the Certificate of Designations, Preferences and
Rights of Series B Convertible Preferred Stock of FFN substantially in the form
of Exhibit C-2 attached hereto, and (iv) executed by a duly authorized
officer of each of the Obligors certifying that all deposit accounts and
securities accounts are subject to Account Control Agreements in favor of the
Collateral Agent, except for the Accommodation Bank Accounts; 

          (l)
The receipt by the Required Holders of a certificate executed by Obligors
certifying that they have delivered credit card notification letter agreements
to the Collateral Agent that account for at least 90% of the current credit
card processing revenue; 

17

          (m)
The receipt by the Agent (with a copy to the Holders) of an opinion of counsel
(which may constitute more than one opinion of counsel) in form and substance
satisfactory to the Holders to the effect that this Amendment and Waiver has
been duly authorized, executed and delivered by the Issuer and FriendFinder
Networks Inc. and constitute valid and binding obligations of the Issuer and
FriendFinder Networks Inc., enforceable in accordance with their respective
terms (subject to customary exceptions); and 

          (n)
The simultaneous consummation of the transactions contemplated by those certain
letter agreements, each dated October 8, 2009, among Marc H. Bell, Staton
Family Investments, Ltd., Florescue Family Corporation and certain holders of
equity securities of FFN, pertaining to the purchase and sale of such equity
securities on the terms set forth therein. 

8. Affirmation
of Obligations. Each Obligor hereby ratifies, affirms and confirms all of the
Funding Documents and each and every Obligation, covenant and agreement of such
Obligor thereunder in all respects, except as otherwise expressly modified or
waived by this Amendment and Waiver upon the terms set forth herein. In
addition, each Obligor hereby represents and warrants that, as of the date
hereof, no counterclaim, right of set-off, claim or defense of any kind exists
or is outstanding with respect to any of the Obligations or against any of the
Holders. Each Guarantor hereby agrees and acknowledges that such Guarantor’s
guarantee of all Obligations of the Issuer under the Note Documents remains and
continues in full force and effect and is hereby ratified and reaffirmed in all
respects. 

9. Miscellaneous.

          (a)
Agent Authorized and Directed to Act. By their signatures below, the
Required Holders hereby authorize and instruct the Agent (i) to execute,
deliver and perform its duties under the documents set forth in Section 7(a)
hereof to which it is a party and (ii) to take all other actions reasonable or
necessary to accomplish or document any of the waivers contemplated by this
Amendment and Waiver. The recitals contained herein shall be taken as the
statements of the other parties hereto, and the Agent assumes no responsibility
for their correctness. The Agent makes no representation as to the validity or
sufficiency of this Amendment and Waiver or the satisfaction of the conditions
listed in Effectiveness of Amendment and Waiver in Section 7 hereof. 

          (b)
Headings. Section and subsection headings in this Amendment and Waiver
are included herein for convenience of reference only and shall not constitute
a part of this Amendment and Waiver for any other purpose or be given any
substantive effect. 

          (c)
Funding Documents Ratified. Except as expressly set forth herein, this
Amendment and Waiver shall not by implication or otherwise limit, impair,
constitute a waiver of, or otherwise affect the rights and remedies of, the
Holders under the SPA, the Security Documents or any other Funding Documents;
or be construed to alter, modify, amend or in any way affect any of the terms,
conditions, obligations, covenants or agreements contained in the SPA, the
Security Documents or any other Funding Documents, all of which are hereby confirmed
and ratified in all respects and shall continue in full force and effect. 

18

          (d)
Survival of Agreement. All covenants, agreements, representations and
warranties made by any party in this Amendment and Waiver shall be considered
to have been relied upon by the other parties hereto and shall survive the
execution and delivery of this Amendment and Waiver. 

          (e)
Funding Documents. From and after the Second Amendment Effective Date,
this Amendment and Waiver shall be considered a Funding Document for all
purposes of the SPA and the other Funding Documents, entitled to all of the
benefits and protections thereof, and all references to the Funding Documents
shall thereafter be construed to include this Amendment and Waiver. 

          (f)
Applicable Law. THIS AMENDMENT AND WAIVER SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK. 

          (g)
Counterparts. This Amendment and Waiver may be executed via facsimile or
e-mail, and in counterparts, all of which shall constitute one and the same
instrument. 

[Remainder of page intentionally left blank.]

19

[signature page]

Very truly yours, 

ISSUER:

INTERACTIVE NETWORK, INC.

By:    /s/ Ezra Shashoua                                         

Name:

Ezra Shashoua

Title: 

Chief Financial Officer

SUBORDINATED GUARANTORS:

FRIENDFINDER NETWORKS INC. 

GENERAL MEDIA ART HOLDING, INC.

GENERAL MEDIA COMMUNICATIONS, INC.

GENERAL MEDIA ENTERTAINMENT, INC.

GMCI INTERNET OPERATIONS, INC.

GMI ON-LINE VENTURES, LTD.

PENTHOUSE CLUBS INTERNATIONAL  ESTABLISHMENT

PENTHOUSE IMAGES ACQUISITIONS, LTD.

WEST COAST FACILITIES INC.

PMGI HOLDINGS INC.

PURE ENTERTAINMENT 

TELECOMMUNICATIONS, INC.

By:    /s/ Paul Asher                                                

Name:

Paul Asher

Title: 

Secretary

PENTHOUSE FINANCIAL SERVICES N.V.

By:    /s/ Daniel C. Staton                                       

Name:

Daniel C. Staton

Title: 

Director

[Signature Page to Amendment No. 2 and Waiver to Securities Purchase Agreement]

PENTHOUSE DIGITAL MEDIA PRODUCTIONS INC.

VIDEO BLISS, INC.

DANNI ASHE, INC.

By:    /s/ Ezra Shashoua                                         

Name:

Ezra Shashoua

Title:  

Chief Financial Officer

SNAPSHOT PRODUCTIONS, LLC

By:    /s/ Ezra Shashoua                                         

Name:

Ezra Shashoua

Title:  

Chief Financial Officer

TAN DOOR MEDIA INC. 

By:    /s/ Ezra Shashoua                                         

Name:

Ezra Shashoua

Title:  

Chief Financial Officer

[Signature Page to Amendment No. 2 and Waiver to Securities Purchase Agreement]

SENIOR GUARANTORS:

VARIOUS, INC. 

By:    /s/ Ezra Shashoua                                        

Name:

Ezra Shashoua

Title:  

Chief Financial Officer

GLOBAL ALPHABET, INC.

SHARKFISH, INC.

TRAFFIC CAT, INC.

BIG ISLAND TECHNOLOGY GROUP, INC.

FASTCUPID, INC.

MEDLEY.COM INCORPORATED

PPM TECHNOLOGY GROUP, INC.

FRIENDFINDER CALIFORNIA INC. 

By:    /s/ Ezra Shashoua                                         

Name:

Ezra Shashoua

Title:  

Chief Financial Officer

FRIENDFINDER PROCESSING LTD. 

By:    /s/ Daniel C. Staton                                      

Name:

Daniel C. Staton

Title:  

Chief Financial Officer

FRIENDFINDER UNITED KINGDOM LTD. 

By:    /s/ Paul Asher                                                

Name:

Paul Asher

Title:  

Director

STREAMRAY, INC.

By:    /s/ Daniel C. Staton                                   

Name:

Daniel C. Staton

Title:  

Chief Financial Officer

[Signature Page to Amendment No. 2 and Waiver to Securities Purchase Agreement]

CONFIRM ID, INC.

FRNK TECHNOLOGY GROUP

TRANSBLOOM, INC.

STREAMRAY INC. 

By:    /s/ Ezra Shashoua                                    

Name:

Ezra Shashoua

Title:  

Chief Financial Officer

STREAMRAY PROCESSING LTD.

By:    /s/ Ezra Shashoua                                   

Name:

Ezra Shashoua

Title:  

Attorney

STREAMRAY STUDIOS INC. 

By:    /s/ Ezra Shashoua                                   

Name:

Ezra Shashoua

Title:  

Chief Financial Officer

VENTNOR ENTERPRISE LIMITED 

By:    /s/ Paul Asher                                         

Name:

Paul Asher

Title:  

Director

WIGHT ENTERPRISE LIMITED

By:    /s/ Paul Asher                                         

Name:

Paul Asher

Title:  

Director

[Signature Page to Amendment No. 2 and Waiver to Securities Purchase Agreement]

ACCEPTED AND AGREED

REQUIRED HOLDER:

SATELLITE SENIOR INCOME FUND, LLC

By: 

Satellite Asset Management, L.P.

/s/ Simon Raykher                                   

By:

Name:  Simon Raykher

Title:    General Counsel & Principal

AGENT:

U.S. BANK NATIONAL ASSOCIATION,

As Administrative Agent and Collateral Agent

By:  /s/ Kathy L. Mitchell                             

Name:  Kathy L. Mitchell

Title:    Vice President

[Signature Page to Amendment No. 2 and Waiver to Securities Purchase Agreement]

EXHIBIT 1:
Specified Waivers  

The descriptions of SPA Sections and other
agreements referenced herein are summaries and do not purport to include every
element of the referenced Section. To the extent that SPA Sections are listed,
they shall be waived in their entirety (subject to the Restated Obligation (if
any)) solely with respect to the breach described herein, and no summary of the
provisions in such Section shall be construed to limit the scope of such
waiver. 

	
 

	
 

	
 

	
 

	
 

	
Obligation Waived

	
 

	
Restated Obligation (if any)

	 

	 

	 

	 

	
1.

	
The
  obligations (i) pursuant to SPA Section 7.01(a)(2) to deliver items required
  for the 2007 and 2008 Fiscal Years, respectively, within 90 days after the
  end of the 2007 and 2008 Fiscal Years, respectively, and (ii) pursuant to SPA
  Section 7.01(a)(4) to deliver officer’s certificates for the Fiscal Quarters
  ended March 31, 2008, June 30, 2008, September 30, 2008, March 31, 2009 and
  June 30, 2009.

	
 

	
Issuer must
  deliver all such items for the 2007 and 2008 Fiscal Years and the Fiscal
  Quarters ended March 31, 2008, June 30, 2008, September 30, 2008, March 31,
  2009 and June 30, 2009 on or before 5 days after the effectiveness of this
  Amendment and Waiver.

	
 

	 

	 

	 

	 

	
2.

	
Solely with
  respect to matters waived by this Amendment and Waiver, the obligation
  pursuant to SPA Section 7.01(a)(6) to deliver as soon as possible, and in any
  event within three (3) days after the occurrence of an Event of Default or
  Default, event or development that could have a Material Adverse Effect and
  the action which the affected Obligor proposes to take with respect thereto.

	
 

	
None.

	
 

	 

	 

	 

	 

	
3.

	
Solely as
  concerns the respective legal entity name changes for Penthouse Media Group
  Inc. to FriendFinder Networks Inc. and for its indirect wholly-owned
  subsidiary FriendFinder Network, Inc. to FriendFinder California Inc., the
  obligation pursuant to SPA Section 7.01(a)(12) to provide, no later than 30
  days before such change becomes effective, all information relating to any
  change of name, organizational structure or jurisdiction or organization of
  any Obligor or the obligation pursuant to SPA Section 7.02(l)(iii) not to
  amend the certificates of incorporation related to such name changes.

	
 

	
Not
  applicable.

	
 

	
 

	
 

	
 

	
 

	
Obligation Waived

	
 

	
Restated Obligation (if any)

	 

	 

	 

	 

	
4.

	
Solely as
  concerns the legal entity name change from PMGI to FriendFinder Networks
  Inc., the obligation pursuant to Parent Security and Pledge Agreement Section
  4 to not change its name, organizational structure or jurisdiction of
  organization in any manner, without providing at least 15 days’ prior written
  notice to Agent.

	
 

	
None.

	
 

	 

	 

	 

	 

	
5.

	
Solely as
  concerns the legal entity name change from FriendFinder Network, Inc. to
  FriendFinder California Inc., the obligation pursuant to the Issuer Security
  and Pledge Agreement Section 4 to not change its name, organizational
  structure or jurisdiction of organization in any manner, without providing at
  least 15 days’ prior written notice to Agent.

	
 

	
None.

	
 

	 

	 

	 

	 

	
6.

	
Solely as
  concerns the amendment and restatement of the articles of incorporation of
  FFN substantially in the form of Exhibit A attached hereto (and the
  filing thereof with the Nevada Secretary of State) in connection with the
  consummation of a Qualified Initial Public Offering, any obligation of any
  Obligor pursuant to SPA Section 7.02(l)(iii).

	
 

	
Not applicable.

	
 

	 

	 

	 

	 

	
7.

	
Solely as
  concerns the prospective changes to effect a reverse stock split of the
  Series A Convertible Preferred Stock of FFN, a reverse stock split of the
  Series B Convertible Preferred Stock of FFN and a reverse stock split of the
  Common Stock of FFN, each in the range of 15:1 to 25:1, as determined by the
  Board of Directors of FFN to be in the best interests of FFN in connection
  with the consummation of a Qualified Initial Public Offering, any obligation
  of any Obligor pursuant to SPA Section 7.02(l)(iii).

	
 

	
Not
  applicable.

	
 

	 

	 

	 

	 

	
8.

	
Solely as
  concerns the amendment and restatement of the bylaws of FFN substantially in
  the form of Exhibit B attached hereto in connection with the
  consummation of a Qualified Initial Public Offering, any obligation of any
  Obligor pursuant to SPA Section 7.02(l)(iii)(A).

	
 

	
Not
  applicable.

	
 

	
 

	
 

	
 

	
 

	
Obligation Waived

	
 

	
Restated Obligation (if any)

	 

	 

	 

	 

	
9.

	
Solely as
  concerns (i) the amendment and restatement of the Certificate of Designations,
  Preferences and Rights of Series A Convertible Preferred Stock of FFN
  substantially in the form of Exhibit C-1 attached hereto (and the
  filing thereof with the Nevada Secretary of State), or if all shares of
  Series A Convertible Preferred Stock of FFN have been converted into common
  stock of FFN, the withdrawal of the Certificate of Designations, Preferences
  and Rights of Series A Convertible Preferred Stock of FFN and (ii) the
  amendment and restatement of the Certificate of Designations, Preferences and
  Rights of Series B Convertible Preferred Stock of FFN substantially in the
  form of Exhibit C-2 attached hereto (and the filing thereof with the
  Nevada Secretary of State), or, if all shares of Series B Convertible
  Preferred Stock of FFN have been converted into common stock of FFN, the
  withdrawal of the Certificate of Designations, Preferences and Rights of
  Series B Convertible Preferred Stock of FFN, in each case in connection with
  the consummation of a Qualified Initial Public Offering, any obligation of
  any Obligor pursuant to SPA Section 7.02(l)(iii).

	
 

	
Not
  applicable.

	
 

	 

	 

	 

	 

	
10.

	
The
  obligation pursuant to SPA Section 5.02(b) to deliver within 60 days after
  the Closing Date for each Non-Obligor the documents contemplated by Section
  5.01(f)(2), (3), (7), (8), (9), (10) and (18), together with (i) a copy of
  the charter, certificate of formation, certificate of limited partnership or
  other publicly filed organizational document of such Obligor certified as of
  a date not more than 30 days prior to the Closing Date by an appropriate
  official of the jurisdiction of organization of such Non-Obligor which shall
  set forth the

	
 

	
Obligation
  deemed timely fulfilled.

	
 

	
 

	
 

	
 

	
 

	
Obligation Waived

	
 

	
Restated Obligation (if any)

	 

	 

	 

	 

	
 

	
same
  complete name of such Non-Obligor as is set forth herein and the
  organizational number of such Non-Obligor, if an organized number is issued
  in such jurisdiction and (ii) a certificate of an officer of each Non-Obligor
  attaching a copy of the by-laws, limited liability company agreement,
  operating agreement, agreement of limited partnership or other organizational
  document of such Non-Obligor, together with all amendments thereto.

	
 

	
 

	
 

	 

	 

	 

	 

	
11.

	
The
  obligation pursuant to SPA Section 5.02(c) to deliver Account Control Agreements.

	
 

	
See Section
  7.01(u).

	
 

	 

	 

	 

	 

	
12.

	
The
  obligation pursuant to SPA Section 5.02(d) to deliver the foreign senior
  guarantor perfection certificate within 75 days of the Closing Date.

	
 

	
Obligation
  deemed timely fulfilled.

	
 

	 

	 

	 

	 

	
13.

	
The
  obligation pursuant to SPA Section 5.02(e) to deliver the FFN perfection
  certificate within 90 days of the Closing Date.

	
 

	
Obligation
  deemed timely fulfilled.

	
 

	 

	 

	 

	 

	
14.

	
The
  obligation pursuant to SPA Section 5.02(f) to deliver letter agreements
  concerning credit card processing agreements and an officer certificate
  within 90 days after the Closing Date, and to deliver letter agreements
  concerning new credit card processing agreements within 150 days after the
  Closing Date.

	
 

	
Obligation
  deemed timely fulfilled.

	
 

	 

	 

	 

	 

	
15.

	
Solely with
  respect to the leased locations at 445 Sherman Avenue, Palo Alto, CA 94306,
  260 Sheridan Avenue, Palo Alto, CA 94306 and 5258 South Eastern Avenue, Las
  Vegas, Nevada 89119, the obligation pursuant to SPA Section 5.02(g)(i) to
  deliver landlord consents within 90 days after the Closing Date.

	
 

	
Obligation
  deemed timely fulfilled. Company shall make commercially reasonable efforts
  for a period not to exceed 45 days after the Second Amendment Effective Date
  to obtain landlord waivers for (i) 20 Broad Street, New York lease on
  substantially the same terms as the landlord waiver previously obtained for 2
  Penn Plaza lease, and (ii) the 19749 Dearborn Street, Chatsworth, CA 91311
  lease on terms reasonably acceptable to Agent.

	
 

	
 

	
 

	
 

	
 

	
Obligation Waived

	
 

	
Restated Obligation (if any)

	 

	 

	 

	 

	
16.

	
The
  obligation pursuant to SPA Section 7.01(j) with respect to notice to Agent of
  any change in the location of any Collateral in connection with the leased
  locations at 220 Humboldt Ct., Sunnyvale, CA 94089 and 19749 Dearborn Street,
  Chatsworth, CA 91311.

	
 

	
Obligation
  deemed timely fulfilled.

	
 

	 

	 

	 

	 

	
17.

	
Solely with
  respect to Obligors FriendFinder United Kingdom Ltd., Streamray Processing
  Ltd., Tan Door Media Inc., Streamray Studios Inc., Wight Enterprise Limited
  and Ventnor Enterprise Limited, the obligation pursuant to SPA Sections
  7.01(i) to execute, acknowledge and deliver certain documents as the Agent
  may reasonably require and notify the Agent of certain accounts, deliver
  Account Control Agreements relating thereto and take action to maintain the
  liens on such accounts and 7.01(m) to execute the Guaranty, pursuant to a
  joinder agreement, and deliver an opinion of counsel to the Agent within 10
  Business Days of the date on which it was acquired or created.

	
 

	
Obligation
  deemed timely fulfilled.

	
 

	 

	 

	 

	 

	
18.

	
Solely with
  respect to FriendFinder Processing (India) Private Limited, FriendFinder
  GmbH, Streamray Processing Philippines, Inc., FriendFinder Processing
  Philippines, Inc. and FriendFinder (Switzerland) AG, the obligation pursuant
  to SPA Section 7.01(i) to execute, acknowledge and deliver certain documents
  as the Agent may reasonably require and notify the Agent of certain accounts,
  deliver Account Control Agreements relating thereto and take action to
  maintain the liens on such accounts and SPA Section 7.01(m) to execute the
  Guaranty, pursuant to a joinder agreement, and deliver an opinion of counsel
  to the Agent within 10 Business Days of the date on which it was acquired or
  created.

	
 

	
None, based
on the representations of the Obligors that FriendFinder Processing (India)
Private Limited, Streamray Processing Philippines, Inc. and FriendFinder
Processing Philippines, Inc. have each been dissolved and FriendFinder
(Switzerland) AG has been sold pursuant to Section 6(e) hereof and in the
letter agreement delivered pursuant to Section 7(h) hereof with respect to
FriendFinder GmbH.  

	
 

	 

	 

	 

	 

	
19.

	
SPA Sections
  7.01(i) and (m) with respect to all accounts listed on Schedule 7.01(u), up
  to the Second Amendment Effective Date.

	
 

	
None.

	
 

	
 

	
 

	
 

	
 

	
Obligation Waived

	
 

	
Restated Obligation (if any)

	 

	 

	 

	 

	
20.

	
The
  obligation pursuant to SPA Section 5.02(g)(ii) to deliver letter agreements
  within 90 days after the Closing Date.

	
 

	
Obligation
  deemed timely fulfilled.

	
 

	 

	 

	 

	 

	
21.

	
As to the
  Fiscal Quarters ended March 31, 2008 and September 30, 2008, respectively,
  the obligation under SPA Section 7.01(v) to have held a meeting of the Board
  of Directors of FFN.

	
 

	
None.

	
 

	 

	 

	 

	 

	
22.

	
SPA Section
  7.02(l) as it relates to the Other Waivers and the amendment and waiver
  agreements with respect to the Subordinated Notes dated December 19, 2008 and
  March 20, 2009 (provided that such waiver is given with respect to the
  Subordinated Notes amendment and waiver agreement dated December 19, 2008,
  only provided that the amendment fee described therein has been amended and
  restated pursuant to the Other Waiver pertaining to the Subordinated Notes to
  provide that such fee will be paid in additional Subordinated Notes).

	
 

	
None.

	
 

	 

	 

	 

	 

	
23.

	
SPA Sections
  7.02(b), 7.02(l), 7.03(e) and 7.03(f) as they relate to (i) the payment of
  the amendment fee in Section 4 of the Third Amendment and Limited Waiver to
  the Securities Purchase Agreements relating to the FFN Notes (other than the Subordinated
  Notes) dated October 8, 2009 and (ii) the amendment fee provided in the
  amendment and waiver agreement with respect to the Subordinated Notes dated
  October 8, 2009, which amendment fees described in (i) and (ii) above are to
  be paid in additional Indebtedness.

	
 

	
None.

	
 

	 

	 

	 

	 

	
24.

	
SPA Section
  7.02(l) as it relates to the amendment and restatement of the Seller Note
  substantially in the form attached hereto as Exhibit D (which, for the
  avoidance of doubt, shall not permit the granting of any security

	
 

	
None.

	
 

	
 

	
 

	
 

	
 

	
Obligation Waived

	
 

	
Restated Obligation (if any)

	 

	 

	 

	 

	
 

	
interests
  with respect to the Seller Note until the Notes have been repaid in full in
  cash) and SPA Sections 7.02(b) and 7.03(e) solely to the extent that (i) the
  adjustment in principal amount reflected in the amendment and restatement of
  the Seller Note or (ii) any adjustment in principal amount made in accordance
  with Section 4(a) of the letter agreement, dated October 8, 2009, between the
  Issuer, the holders of the Seller Notes, and the other parties thereto, in
  the form attached hereto as Exhibit E, constitutes an increase in
  Indebtedness.

	
 

	
 

	
 

	 

	 

	 

	 

	
25.

	
Solely as
  concerns the payments made to Bell & Staton, Inc., or any of its
  affiliates, in 2007, 2008 and 2009 as described on Schedule 2-A
  hereto, any obligation of any Obligor pursuant to SPA Section 7.02(h) not to
  make payments except as set forth on Schedule 7.02(h)(i) and Schedule
  7.02(h)(ii) and pursuant to SPA Section 7.02(j) not to make payments to
  Affiliates other than permitted by SPA Section 7.02(h), to the extent that
  the management payments listed on Schedule 2-A were made during the
  continuance of an event of default under the FFN Notes (except for the
  Subordinated Notes).

	
 

	
None.

	
 

	 

	 

	 

	 

	
26.

	
Solely as
  concerns the payments made to Hinok Media Inc. (and payments made to YouMu,
  Inc. in lieu of Hinok Media Inc. in violation of Section 10 of the
  Independent Contractor Agreement, dated September 21, 2007, between Hinok
  Media Inc. and Various, Inc. which prohibits such assignment) and Legendary
  Technology Inc. set forth on Schedule 2-B hereto, any obligation of
  any Obligor pursuant to SPA Section 7.02(h) not to make payments to any
  stockholder or equity holder except as set forth on Schedule 7.02(h)(i) and Schedule
  7.02(h)(ii) and pursuant to SPA Section 7.02(j) not to enter into
  transactions with Affiliates other than permitted by SPA Section 7.02(h).

	
 

	
None.

	
 

	
 

	
 

	
 

	
 

	
Obligation Waived

	
 

	
Restated Obligation (if any)

	 

	 

	 

	 

	
27.

	
Solely as
  concerns the entry by FFN into agreements with each of Marc H. Bell, Daniel
  C. Staton, Andrew Conru and Lars Mapstead or their affiliates as described in
  Section 7 of the letter agreement, dated October 8, 2009, between the Issuer,
  the holders of the Seller Notes, and the other parties thereto, in the form
  attached hereto as Exhibit E, any obligation of FFN pursuant to SPA
  Section 7.02(j) not to enter into transactions with Affiliates other than
  permitted by SPA Section 7.02(h); provided, for the avoidance of doubt, that
  no payments of any kind under such agreements will be made until the prior
  repayment in full in cash of the Notes.

	
 

	
None.

	
 

	 

	 

	 

	 

	
28.

	
Solely as it
  concerns frozen assets not exceeding €610,343 with respect to that certain
  Various, Inc. credit card processing account administered by Global Collect,
  NV located in the Netherlands, an obligation of any Obligor not to create,
  incur, assume or suffer to exist any Liens other than permitted by SPA
  Section 7.02(a).

	
 

	
None.

	
 

	 

	 

	 

	 

	
29.

	
SPA Section
  9.01(e) with respect to defaults arising under the FFN Notes and the Second
  Lien Notes, solely to the extent such defaults have been duly waived pursuant
  to the Other Waivers and the amendment and waiver agreements with respect to
  the Subordinated Notes dated December 19, 2008 and March 20, 2009.

	
 

	
None.

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